Podcast: ‘Weekly Wrap’ on leasing, earnings, sales
Listen as AFN editors break down top stories from the past week
Second-quarter bank earnings continue to point to mixed loan production volume and a rise in leasing spurred by EVs.
U. .S. . Bank originated $1.9 billion in Q2, up 21.5% year over year while outstandings fell 30.6% YoY to $8 billion. PNC Financial’s auto outstandings dipped 1.6% YoY to $14.8 billion, and Citizens’ auto book continued to run off and landed at $6.4 billion, down 38.8% YoY.
Ally Financial originated $639 million in battery EV and hybrid leases during Q2, about 10% of its total originations for the quarter. . EV originations totaled $1 billion, with leasing making up 64%, up 14 percentage points YoY.
Meanwhile, an outage at cybersecurity firm CrowdStrike contributed to customer service and loan servicing challenges for auto lenders.
In this episode of the “Weekly Wrap,” Auto Finance News Editor Amanda Harris and Associate Editor Ashley Savage discuss trends in Q2 bank earnings and sales for the week ending July 19.
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Auto Finance Summit, the premier industry event for auto lending and leasing, returns Oct. 7-9 at Wynn Las Vegas. . To learn more about the 2024 event and register, visit www. .AutoFinanceSummit.com.
Transcript:
Editor’s note: This transcript has been generated by software and is being presented as is. . Some transcription errors may remain.
Since 1996, the nations leading news intern, automotive lending and leasing, it is Monday, July 22nd. . And Im Amanda Harris joined by Ashley Savage. . This is our weekly wrap on what happened in auto finance for the week ending July 19th, 2024 and Economic News. . Initial jobless claims increased by 20,000 to 243,000 for the week ended July 13th, on par with the highest level since August 2023. . The median forecast by Bloomberg called for 229,000 applications. . Hurricane Barrel did contribute to an uptick in claims in Texas and Automotive News and IT outage at cybersecurity firm crowd strike disrupted operations for banks, airlines and other sectors globally. . For banks auto portfolios, several experienced interruptions and latency challenges. . The latest edition of the Federal Reserve page book also released this week in pointed to continued mixed results from a regional perspective and auto sales and demand the cyberattacks against CDK Global contributed to a dip in sales across several regions in June, with dealerships reporting slowed sales while systems are down and lags when it comes to reporting in paperwork. . Last week also marked the continuation of second quarter earnings with the banks and Ashley has the details. . So Ashley?
Ashley Savage 1:35 Yeah. . Amanda, as you mentioned, we’ve been following Q2 earnings closely and when you zoom out and look at the bigger picture, it’s really shown us that lenders appetite for auto loans remain mixed as outstandings and originations continue to fluctuate in outstanding news. . Huntington Bank on Friday joined Chase Auto and reporting year over year increases in auto outstandings, while U. .S. . Bank, Ally Financial, Bank of America and Wells Fargo Auto reported year over year portfolio declines in the second quarter. . PNC Financial’s outstanding auto book was flat year over year in the second quarter and Citizens Auto Book continued to run off and my latest story today, which will be available on our site later this evening, shows that Fifth Third and Truist are the latest regional banks to report year over year declines in auto outstanding and origination news, U. .S. . Bank and Huntington both reported quarter over quarter and year over year increases in their auto originations. . US Bank’s originations landing landed 22.9% higher quarter over quarter and 21.5% higher year over year at 1.9 billion in the second quarter. . Huntington ohh. . Gives me Huntington’s auto originations totaled 2.1 billion in Q2 up 31.3% quarter over quarter and 90.9% year over year. . Meanwhile, U. .S. . Banks auto outstandings dipped 8.9% quarter over quarter and 30.6% year over year to 8 billion, marking the 10th consecutive quarter of declines in outstandings. . Executives with the bank said that the lender is likely to be more active than auto lending if the spreads and returns are appropriate, but that they have not been to the bank standards. . I know this is a bit of a verbal number suit, but the good news is that we have a detailed look into each of these bank earnings that are alive and ready for you. . You’d like a closer look at any of these earnings and maybe more insight on those driving factors or bank to bank comparisons. . We have those for you and will continue to curate that coverage as earnings season continues. . Amanda, I’ll send it back to you for any closing comma. . Amanda Harris 3:25 Great. . Thank you, Ashley. . Well, yeah, that will do it for today’s episode. . As a reminder, you can register for both the auto Finance summit and the Power Sports Finance Summit, returning to Vegas in October. . There’s also an option to attend both shows and more information can be found at autofinance at Dot live. . Thank you for joining us on the roadmap and be sure to follow us on X and LinkedIn and we will see you online at autofinancenews.net and here next time.
