Ally Auto Originations Flat, Delinquencies Higher in 3Q
Ally Financial Inc. originated $9.6 billion of auto loans and leases in the third quarter, unchanged from the volume recorded in 3Q12, though delinquency and charge-off rates inched higher.
Ally’s commercial loan portfolio dipped 5% in the period, to $28 billion ― its lowest level in several years. The bank cited “lower dealer stock and intense competitive pressures in the wholesales space, despite growth in diversified dealer inventories.”
Overall, Ally recorded $339 million of third-quarter pre-tax earnings from continuing auto finance operations, compared with $337 million in the prior-year period.
Loan penetration dipped below 10% for Chrysler vehicles in the quarter, from 25.4% in 3Q12, but Ally largely offset the loss with growth in its new, used, and lease channels, the bank said.
As for asset quality, 30-day auto loan delinquencies hit 2.10%, up from 1.59% in 3Q12. Year over year, net charge-offs grew to 0.82% from 0.54%.
