Chase Auto Finance’s charge-offs rose to $116 million in the third quarter, up from $79 million the same time the year prior, according to the bank’s earnings call today.
Yet, delinquencies were down. Delinquencies 30 days or more past due dipped to 0.93% of the portfolio in the quarter compared with 1.08% in 3Q16.
The bank’s third-quarter loan and lease outstandings reached $80.8 billion, a year-over-year increase of $5.3 billion. Meanwhile, auto loan and lease originations for the quarter were $8.8 billion, down 5.4% from the same time the year prior.
“While we felt like we got ahead of the issues and tightened early, you’ve seen the industry generally moving in that direction [pulling back],” Marianne Lake, JPMorgan Chase & Co.’s chief financial officer, said on the call. “We have been pressure-tested … and I think the industry and our portfolio performed really quite well.”
Additionally, Chase has not seen a “significant impact” from the Equifax security breach, Lake said. “[We are] under constant attack on the fraud side,” she said. “We have been constantly evolving and refining … and looking at data to better leverage our underwriting decisions.”
The recent Equifax breach revealed that sensitive personal information — including the Social Security numbers of an estimated 145 million consumers, almost half of the U.S. population — were stolen by hackers.
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