Doug Timmerman, President of Ally Auto Finance
Ally Financial Inc. hit a “sweet spot” with its auto portfolio last year and is focusing on keeping that consistency throughout 2019, President of Auto Finance Doug Timmerman told Auto Finance News.
The bank grew its auto portfolio 2.1% year over year to $35.4 billion at yearend 2018, as delinquencies increased and charge-offs declined, the company reported in fourth-quarter earnings this week.
“We like our origination flow at the level it is today,” Timmerman said. “For us, the consistency of that growth and our business has been a key.”
As for 2019, the bank expects growth in origination volume to remain flat despite a shift in mix. “We plan for similar origination volume [in 2019], but we may tick up more in the used business,” he said. “When you hit that sweet spot with the portfolio, you want to stay there.”
Meanwhile, delinquencies increased 10 basis points to 3.5% of the company’s auto portfolio, and net charge-offs dropped 26 basis points to 1.4% of the portfolio in the quarter.
Source : AutoFinanceNews
