Which U.S. Banks Hold The Largest Share In The Country’s Auto Lending Industry?

JPMorgan Chase, Ally Financial, Wells Fargo, Capital One and Bank of America are the banks with the largest presence in the auto lending industry – together holding 25% of all outstanding auto loans in the country. But given that banks account for less than 37% of all auto loans in the country, their market share among U.S. commercial banks is a strong 68%.

The figure for each bank is as reported in their latest quarterly earnings disclosures. Bank of America combines its auto lending portfolio with other specialty loans in its quarterly reports, so the figure here is taken from its latest call report as filed with the FDIC here. The total portfolio of auto loans by all commercial banks in the U.S. is from weekly data compiled by the Federal Reserve, accessible here. The total auto loans outstanding in the country is taken from the website of the Federal Reserve Bank of St. Louis here.

Ally regained the top spot among all banks in terms of outstanding auto loans at the end of Q3 after JPMorgan inched ahead for the first time in Q2. Strong growth in demand for auto loans since 2010 has resulted in these banks ramping up their auto lending units considerably over the years – something that has also resulted in an increase in sub-prime auto lending. Capital One in particular has seen its auto loan portfolio swell from under $20 billion at the end of 2011 to almost $45 billion now, thanks to its acquisition of ING Direct as well as a marked push in the industry. The chart below shows Capital One’s total auto lending portfolio over the years and our forecast for the same. You can see how changes to this figure affects our price estimate for the bank by modifying the forecast.

See full Trefis analysis for Wells Fargo | JPMorgan | Capital One | Bank of America

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