GM Financial Reveals 2Q Net Income & Loan Originations Climb as Delinquent Receivables Dip
FORT WORTH, Texas — GM Financial watched both loan originations and net income rise and delinquent receivables fall during the second quarter.
Officials revealed its second-quarter net income came in at $95.8 million, up from the year-ago figure of $85.5 million.
Looking at net income over a six-month span, the company said it generated $173.0 million. Through the first six months of last year, GM Financial posted $148.7 million in net income.
GM Financial determined its loan originations were $1.3 billion for the quarter that ended June 30 compared to $1.1 billion for the quarter that wrapped up March 31. During the second quarter of 2010, the company said its loan originations totaled $906 million.
Officials tabulated that lease originations of General Motors vehicles were $173 million during the second quarter, a drop-off from the first-quarter level that totaled $311 million.
They went on to mention loan and lease financing for new GM vehicles accounted for 38.0 percent of total loan and lease originations for the second quarter compared to 38.8 percent at the close of the first quarter.
GM Financial pointed out originations for the first six months of this year were $2.5 billion, a figure $1 billion higher than what the company posted at the midpoint of last year.
The company added its finance receivables totaled $9.1 billion as of June 30.
Looking deeper that those receivables, officials highlighted receivables 31-to-60 days delinquent were 4.4 percent of the portfolio at the close of the second quarter. That level was lower than the year-ago mark, which was 6.2 percent.
GM Financial's accounts more than 60 days delinquent were 1.7 percent of its portfolio at June 30, compared to 2.7 percent a year ago.
Looking even further, the company discovered annualized net charge-offs were 2.4 percent of average finance receivables at the close of the second quarter. A year earlier, they were 4.5 percent.
Based on the activity for the first six months of 2011, GM Financial's annualized net charge-offs came in at 3.2 percent, again lower than the previous year's level which was 6.1 percent.
Finally, the company noted it had total available liquidity of $1.5 billion at June 30, consisting of $526 million of unrestricted cash, approximately $675 million of borrowing capacity on unpledged eligible assets and $300 million on a line of credit from GM.