PNC Sees Continued Growth in Auto Portfolio

PNC Bank saw increases in its auto portfolio accompanied by an uptick in delinquencies and losses, according to the company’s second-quarter earnings report.

Auto outstandings at the Pittsburgh-based bank grew to $12.4 billion, up 9% compared with the same period the year prior. The company does not report origination numbers.

“Our credit box [for auto loans] hasn’t changed,” Chief Financial Officer Robert Reilly said on the call. “We continue to see growth, and we haven’t pulled back. … Versus a couple years ago, our growth has slowed but we are still growing that book.”

PNC was the 21st largest auto lender in the U.S. in 2016 with a portfolio of $12.3 billion, according to Big Wheels Auto Finance 2017.

However, delinquencies 30 to 59 days past due also rose to 44 million loans — up 15.7% year over year. The company also has 2 million more loans 60 to 89 days past due than it did during the same quarter last year — a 20% increase to 12 million delinquencies.

The company does not break out auto losses separately, but “other consumer” net charge-offs — which encompass auto, education, and other loans — saw an uptick as well.

Other consumer net charge-offs grew to $37 million, up from $33 million during the same period last year — a 12% increase year over year.