Toyota Financial Savings Bank’s consumer portfolio reaches $4.1B in Q1

The industrial bank under Toyota ’s captive grew its retail auto portfolio to $4.1 billion in the first quarter after originating Mazda Financial Services ’ auto loans for more than a year. Toyota Financial Savings Bank , the bank operating under captive Toyota Financial Services , increased its auto portfolio sixfold year over year in Q1, according to Federal Financial Institutions Examination Council filings published March 31. By comparison, the bank’s commercial and industrial loan portfolio totaled $1.6 billion in Q1, up 9.8% YoY, according to FFIEC filings. The growth comes after the bank began originating consumer auto loans in Q4 2024, following Toyota Motor Credit Corp .’s decision to use the bank for its private-label financing agreement with Mazda North American Operations , according to Dec. 31, 2024, SEC filings. The transfer, though public for years before the 2024 filing, was not widely publicized. Toyota Financial Savings Bank funds Mazda Financial Services’ auto leases and loans while captive TFS services the loans, according to SEC filings. The bank does not originate retail loans and leases for Toyota vehicles, a spokesperson told Auto Finance News . Before the bank took over originations, Toyota Financial Services (TFS) was Mazda’s sole private-label finance provider under Mazda Financial Services starting in 2020. Outside of the retail Mazda Financial Services originations, Toyota Financial Savings Bank has, according to a Community Reinvestment Act Public File listed on its website, historically offered: Consumer deposit accounts to Toyota- and Mazda-associated individuals and employees; Commercial deposit accounts for Toyota and Mazda dealerships; Commercial real estate and inventory loans to Toyota and Mazda dealerships; and Mortgage and residential real estate loans to Toyota employees. Cheaper funding Toyota began originating loans through the bank because “Toyota Financial Savings Bank’s more diverse funding options better support our ability to offer competitive financing solutions to customers,” a spokesperson said. Industrial banks can access cheaper funding through bank deposits , Specht Leadership Consulting Chief Executive Ray Specht told AFN. He previously was CEO at Toyota Financial Savings Bank and Volkswagen Bank USA . With less expensive funding, industrial banks might be able to offer auto borrowers better rates or margins than captives, he said. “The captive can do the loan themselves or they can run it through the bank, whichever is a better deal for them,” Specht said. Toyota Financial Savings Bank’s rate of auto loan charge-offs was 0.1% of outstandings year to date through March 31, according to FFIEC filings. The bank was the 53rd-largest auto lender by outstandings at yearend 2025, according to the latest Big Wheels ranking data . By comparison, TFS was the largest auto lender by outstandings at yearend 2025, with a $103.4 billion portfolio. Pre-transfer assets totaled $14.7B It’s unclear what Mazda Financial Services’ outstandings or originations totaled before the transfer. But some 12% of Toyota’s net earning assets, or $14.7 billion, came from Mazda Financial Services’ contracts for Q4 2024, according to SEC filings. Those contracts included several products, according to a 2024 company release, including: Retail financing and leasing; Wholesale financing and leasing; and Vehicle and payment protection products. TFS still finances the vehicle protection products, according to SEC filings. The bank’s auto portfolio will “grow on the balance sheet until it naturally peaks in the future after the portfolio hits a steady state,” a Toyota spokesperson said. Toyota’s private-label financing agreement with Mazda expires in 2030, according to public reports.

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Toyota Financial Savings Bank’s consumer portfolio reaches $4.1B in Q1

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