GM Financial’s net income fell 30 percent in the second quarter as the lender’s lease portfolio continued to shrink and bookings levels fell from a year earlier.
Second-quarter net income declined to $829 million from $1.18 billion in the second quarter of 2021, the company said in a statement last week.
For the full year, GM Financial expects earnings between $3.5 billion and $4 billion. In the first quarter, GM Financial earned net income of $962 million.
During the quarter, the General Motors captive originated $3.87 billion in leases, down 34% from a year earlier, and $8.96 billion in loans, down 1.9% from a year earlier.
Lease originations were down due to the low supply of new vehicles, which has led to less incentive to lease vehicles, the company said.
Profits also fell because the lender did not repeat the significant book issuances it took in the second quarter of 2021, CEO Dan Berce told Automotive News.
The captive paid a $750 million dividend to GM in the second quarter. GM Financial paid no dividends in the first quarter. Last year, it paid out $3.5 billion in dividends.
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