Boston, MA 08/01/2014 (wallstreetpr) – Santander Consumer USA Holdings Inc (NYSE:SC) posted strong set of second quarter results wherein the net income came at $246.5 million as compared to $181.92 million last year. The net income of $0.69 per share was 35 % higher than the net income of $0.53 per share last year. The first quarter earnings of $0.69 per share were much better than the analysts’ estimates of $0.60 per share excluding special items.
The other incomes
The net finance and other interest income came higher at $1.1 billion as compared to $818 million in 2013. It was the rise of 32%. Santander Consumer USA Holdings Inc (NYSE:SC) reported net growth of 45% in its average portfolio. The total finance and other interest income came at $1.38 billion as compared to $912.56 million last year. Santander also raised the provisions for loan losses to $589 million as compared to $408 million in the same period last year.
The management view
Chairman and CEO, Tom Dundon, calls the results in line with the expectations. The other incomes are showing good growth and will improve further in the coming times. Santander Consumer USA Holdings Inc (NYSE:SC) is riding high on the strong fundamentals. The strong growth can be attributed to risk management strategies, advanced technology, strength in operations, and expertise in capital markets and industry-leading efficiency in operations. The allowance to loans ratio was higher due to seasonal impacts. It is especially visible in the second quarter; otherwise the ratio remains stable in the rest of the quarter.
Santander Consumer USA Holdings Inc (NYSE:SC) continues to improve the capacity to handle the segment risk. It is making smart credit decisions. The impact is clearly seen by analyzing the Chrysler loan data. The application volumes are strong resulting in stable originations. The good expansion is coming in the originations funnel. The management is confident to achieve the growth as per the set targets.