Santander Consumer USA Q3 Profit Down - Quick Facts

(RTTNews) - Santander Consumer USA Holdings Inc. (SC) reported that its net income for third quarter 2016 declined to $213.55 million, or $0.59 per share from $236.44 million or $0.66 per share in the same quarter last year.

Provision for credit losses decreased to $610 million in the third quarter 2016, from $724 million in the third quarter 2015, driven primarily by the classification of the personal loan portfolio as held for sale in the prior year quarter. Excluding personal lending, provision decreased $8 million versus the prior year quarter.

In the third quarter 2016, SC recorded net investment losses of $106 million, compared to investment gains of $23 million in the third quarter 2015. The current period losses were primarily driven by $98 million of lower of cost or market adjustments related to the held for sale personal lending portfolio, including $114 million in customer default activity and a $19 million decrease in market discount.

Net finance and other interest income decreased 3 percent to $1.18 billion in the third quarter 2016 from $1.22 billion in the third quarter 2015, primarily driven by a shift in credit mix as a result of disciplined underwriting standards, and higher cost of funds, driven by an increase in spreads and benchmark rates.

Net leased vehicle income increased 47 percent to $135.8 million in the third quarter 2016 from $92.7 million in the third quarter 2015 as a result of the continued growth of leasing portfolio.

Analysts polled by Thomson Reuters expected the company to report earnings of $0.55 per share and revenues of $1.69 billion. Analysts' estimates typically exclude special items.