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Santander Consumer USA Holdings named Blythe Masters nonexecutive chairman, replacing the executive who quit the post less than two weeks ago and a week after the subprime auto lender's parent company was hit with a regulatory order.
July 15 -
The chairman and chief executive of Santander Consumer USA Holdings has resigned, as the subprime auto lender remains under scrutiny for its lending and securitization practices.
July 2 -
Two foreign-owned banks Santander and Deutsche Bank failed the Fed's stress test. Two other foreign banks that failed last year, HSBC and RBS Citizens, passed this year.
March 11
Santander Consumer USA Holdings in Dallas
The $36 billion-asset subprime auto lender earned $285.5 million in the second quarter, up 16% from a year earlier. Earnings per share were 79 cents, beating an estimate of analysts polled by Bloomberg by 5 cents.
Asset sales drove the rise in quarterly profits. Total fee-based income jumped 51%, to $209 million. Investment income which includes gains from securitization was $86.7 million, compared with $21.6 million a year earlier.
Net interest income rose 16%, to $1.3 billion. The provision for credit losses increased 25%, to $739 million, which the company attributed to "seasonality," as well as higher margins on its retained portfolio.
Total originations increased 13%, to $7.6 billion.
The net interest margin dipped 4 basis points, to 13.9%, while the return on average assets declined by 20 basis points, to 3.2%.
Santander Consumer USA is a unit of the Spanish banking giant Banco Santander.
