trending Market Intelligence /marketintelligence/en/news-insights/trending/hBQ97kA8M38XPJDgsSIXHw2 content esgSubNav
In This List

Santander Consumer USA posts lower Q1 net income YOY


Banking Essentials Newsletter: 7th February Edition

Case Study

A Bank Outsources Data Gathering to Meet Basel III Regulations


Private Markets 360° | Episode 8: Powering the Global Private Markets (with Adam Kansler of S&P Global Market Intelligence)


Banks’ Response to Rising Rates & Liquidity Concerns

Santander Consumer USA posts lower Q1 net income YOY

on April 27 reported first-quarter net income of $200.7 million, or 56 cents pershare, down from $246.3 million, or 69 cents per share, in the year-ago period.

Excludingan impairment on intangible assets, adjusted net income for the first quarter was$213.4 million, or 59 cents per share.

The S&PCapital IQ consensus normalized EPS estimate for the quarter was 56 cents.

Totaloriginations were $6.78 billion in the first quarter, compared to $7.35 billionin the year-ago quarter.

Net finance and other interest incomeincreased 11% year over year to $1.27 billion from $1.15 billion, driven by 13%growth in the average portfolio. Provision for credit losses increased to $706.6million in the first quarter, from $674.7 million in the prior-year period.

Net investment losses were $73.2 millionin the first quarter, compared to net investment gains of $21.2 million in the firstquarter of 2015. The current period losses were primarily driven by $68 millionof lower of cost or market adjustments related to the held for sale personal lendingportfolio, including $101 million in customer default activity offset by a $33 millionbenefit from change in market discount.

Net charge-off ratio increased to 8.1%from 6.7% in the year-ago period. The company's delinquency ratio on loans heldfor investment was 3.1% at the end of the first quarter, compared to 3.2% at theend of the year-ago quarter.