U.S. Bank Autobook Shrinks in Q3

US bankauto loan balances fell consecutively by 2.5% in the third quarter, in line with our forecast for 2022.

The balance fell 1.1% year-on-year to $23.2 billion, according to the earnings call.

the bank of Q4 2021 Auto loans could soften heading into 2022, Chief Financial Officer Terry Dolan previously said.Balance also decreased continuously during the period first two quarters 2022.

The bank doesn’t disclose auto-specific credit performance metrics, but the percentage of loans that are 30 to 89 days past due increased by 2 basis points.s The $60.1 billion other retail sector was flat at 0.41% year-over-year, with auto loans accounting for 39% of that, according to the earnings call.

Other retail loans past due 90 days or more accounted for 0.11% in the third quarter, up 1 bps quarter-on-quarter and flat year-on-year.

According to the presentation, net charge-offs across the Bank’s other retail segment were 0.18%, up 7 bps sequentially and up 5 bps year-over-year. Other retail loan loss reserves totaled $1.0 billion, representing 1.6% of outstandings.

Meanwhile, banks continue to see strong momentum in real-time payment transactions, with transactions up 17x this year through September 30 compared to the full year 2020, CEO Andrew Cecere said today. I mentioned it in my earnings report. bank in august Start real-time payment For car dealers.

“After a long-term contract is signed, we provide immediate loan funding. I’m sorry,” Cecere said by phone.

The proportion of loans sold through banks’ digital channels also increased from 45% in early 2020 to 62% in Q3, according to the presentation.

US Bancorp stock [NYSE: USB] At today’s market close, it was trading at $42.64, down 2.83%. The bank’s market capitalization is $63.4 billion.

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