Santander Consumer USA Holdings Inc. (SC) has reported a 9.68 percent fall in profit for the quarter ended Sep. 30, 2016. The company has earned $213.55 million, or $0.59 a share in the quarter, compared with $236.44 million, or $0.66 a share for the same period last year.
Revenue during the quarter dropped 7.21 percent to $588.50 million from $634.26 million in the previous year period. Net interest income for the quarter dropped 3.05 percent over the prior year period to $1,178.62 million. Non-interest income for the quarter fell 82.71 percent over the last year period to $26.68 million.
Santander Consumer USA Holdings Inc. has made provision of $616.80 million for loan losses during the quarter, down 16.17 percent from $735.74 million in the same period last year.
Net interest margin contracted 130 basis points to 11.80 percent in the quarter from 13.10 percent in the last year period.
We are pleased to report solid core financial performance in the third quarter in light of the competitive marketplace. Fewer originations are in part due to our disciplined underwriting standards as we are committed to driving originations at the right price and structure, and in part due to increased competition in the prime space," said Jason Kulas, president and chief executive officer. "We are finalizing a strategic agreement with Banco Santander to originate and flow prime and near-prime retail loan assets. This strategy should strengthen our overall relationship with Fiat Chrysler (FCA) and our Chrysler Capital volume, as well as our serviced for others strategy."
Assets outpace liabilities growth
Total assets stood at $38,771.64 million as on Sep. 30, 2016, up 7.73 percent compared with $35,991.23 million on Sep. 30, 2015. On the other hand, total liabilities stood at $33,653.98 million as on Sep. 30, 2016, up 6.40 percent from $31,630.39 million on Sep. 30, 2015.
Shareholders equity stood at $5,117.66 million as on Sep. 30, 2016, up 17.35 percent or $756.82 million from year-ago.
Return on average assets moved down 40 basis points to 2.20 percent in the quarter from 2.60 percent in the last year period. At the same time, return on average equity decreased 510 basis points to 17.10 percent in the quarter from 22.20 percent in the last year period.
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