Q3 bank earnings offer mixed results

Bank earnings last week highlighted mixed results as some institutions saw an uptick in auto originations while others’ portfolios shrank.  

Bank of America’s auto originations rose 16.2% year over year to $7.9 billion in the third quarter, while U.S. Bank’s indirect auto loan and lease originations jumped 65% YoY to $1.8 billion. Huntington Bank’s auto originations rose 71.4% YoY to $2.4 billion.  

Ally Financial’s originations, however, declined 11.3% YoY to $9.4 billion in Q3. 

Other regional banks’ portfolios saw slight growth in Q3, with Fifth Third Bank’s auto outstandings up 3.3% YoY to $15.9 billion and PNC Financial’s auto portfolio up 1.3% YoY to $15.1 billion. Truist’s auto portfolio declined 11.1% YoY to $22.1 billion. 

Meanwhile, affordability was a resounding theme throughout Auto Finance Summit 2024 last week, with executives highlighting challenges related to rising consumer debt, slowly declining interest rates and worsening credit performance. 

In this episode of the “Weekly Wrap” Auto Finance News Editor Amanda Harris and Associate Editor Ashley Savage discuss key takeaways from third-quarter bank earnings and Auto Finance Summit 2024.