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Santander Consumer
Santander Consumer USA Holdings

Santander Consumer Reports Q4, Full Year 2018


Santander Consumer USA Holdings (SC) has reported a net income for the fourth quarter, ended Dec. 31, of $104 million. Net income for the full year 2018 was $916 million.

“Our full-year results demonstrate strength and consistency,” said Scott Powell, president and CEO. “SC’s earnings and originations were up during each quarter, driven by our renewed focus on dealer experience, robust pricing approach, and stable credit performance. Auto originations through Santander Bank approached $2 billion in the program’s first year, demonstrating the value that Santander U.S.’ businesses bring to each other. The Federal Reserve’s termination of its 2015 written agreement with Santander Holdings USA demonstrates the significant improvements we have made to the way our U.S. business operates.”

In 2018, the company achieved an average annual FCA penetration rate of 30 percent, up from 21 percent in 2017. Through Santander Bank N.A., it also fully launched a program in July leading to $1.9 billion in originations, and increased FCA dealer receivables 43 percent year-over-year, to $2.8 billion. 

During January 2019, the company completed its previously announced $200 million share repurchase program 

“During 2018, we executed on our goals and improved dealer experience, focused on risk-adjusted returns and maintained disciplined expense management,” said Juan Carlos Alvarez, SC CFO. “This was demonstrated by strong originations growth, steady credit performance and an improved expense ratio.”

Net finance and other interest income increased 9 percent, to $1.1 billion in the fourth quarter of 2018 from $1 billion during the same period in 2017, primarily driven by higher lease income partially offset by higher interest expenses.

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