Pedestrians pass in front of a Capital One Financial Corp. bank branch in New York, U.S. Photographer: Sarah Blesener/Bloomberg
Capital One Financial Corp.’s auto origination volume fell 5% last year, according to a fourth-quarter earnings report. In an earnings call, Chief Executive Richard Fairbank attributed the deceleration to an increase of competitive intensity in the auto industry.
Auto originations fell to $26.2 billion in 2018, compared with $27.7 billion in 2017. Despite Capital One’s shrinking origination volume, total auto outstandings grew 4.4% to $56.3 billion last year.
While Capital One’s auto loan delinquency rates increased 34 basis points to 6.85% at yearend 2018, the auto chargeoff rate improved 22 basis points year over year to 1.64% of the portfolio. Fairbank expects that rate to “increase gradually as the cycle plays out.”
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Source : AutoFinanceNews
