NEW YORK and SAN FRANCISCO — Both Chase and Wells Fargo
enjoyed positive developments in connection with their third-quarter auto loan
origination volume performances.

Starting with Chase, the company indicated its Q3 originations
totaled $6.3 billion, a figure 7 percent higher year-over-year and 9 percent
higher quarter-over-quarter.

The growth left Chase's average auto loan amount as of the
third quarter at $48.4 billion, up 4 percent from the prior year but flat
compared with the prior quarter.

Chase determined its auto net charge-off rate came in at
0.74 percent, up from 0.36 percent in the prior year and 0.17 percent from in
the prior quarter.

In explaining the third-quarter charge-off rate rise, Chase
officials said, "Regulatory guidance requiring loans discharged under Chapter 7
bankruptcy and not reaffirmed by the borrower to be charged off to their
collateral value, regardless of their delinquency status, resulted in an
incremental $55 million of net charge-offs.

"Excluding these incremental charge-offs, auto net
charge-offs would have been $35 million for the current quarter, and the net
charge-off rate would have been 0.29 percent," Chase added.

The company's 30-day delinquency rate connected with auto
loans continued on an upward track that's been going on for the last three
quarters. The third-quarter rate was 1.11 percent after it settled at 0.90
percent at the close of the second quarter and 0.79 percent after this year's
opening quarter.

A year ago, Chase's 30-day delinquency rate stood at 1.01
percent.

Wells Fargo Report

Meanwhile over at Wells Fargo, the company reported that it
generated the same amount of auto originations during the third quarter as
Chase — $6.3 billion. That amount represented a 20-percent jump year-over-year,
but a 3-percent softening from Wells Fargo's output during the second quarter.

Wells Fargo officials cited "increased competition and lower
risk-adjusted returns" as reasons why its originations dipped against the
previous quarter, but they pointed toward "growth across the credit spectrum"
as the trigger for year-over-year improvement.

The company indicated its third-quarter net charge-offs rose
$33 million from the previous quarter, "reflecting seasonality and higher
delinquencies."

In fact, Wells Fargo's 30-day delinquency rate came in at
1.40 percent in the third quarter, up from the year-ago reading of 1.22
percent.

Officials noted its outstanding amount of auto loans
finished the third quarter at $46.0 billion, up 3 percent from the previous
quarter and 10 percent year-over-year.


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