GM Financial’s revenue is predicted to normalize this 12 months after excessive used-vehicle costs through the previous two years contributed to robust earnings outcomes, executives stated.
The firm stated Tuesday that web earnings fell 33 p.c to $605 million within the fourth quarter in contrast with the identical time final 12 months because the lender skilled the consequences of decrease web leased automobile earnings and better curiosity prices. Earnings earlier than taxes additionally fell 33 p.c, to $800 million in contrast with a 12 months earlier.
General Motors’ captive lender reported originating $3.5 billion in leases within the quarter ended Dec. 31, up 26 p.c from the identical interval a 12 months earlier, and $8.3 billion in retail loans, a 12 p.c bump.
For all of 2022, GM Financial’s web earnings fell 19 p.c to $3.1 billion, and its earnings earlier than taxes slid 18 p.c to $4.1 billion.
“At GM Financial, the strong credit performance and historically high used-vehicle prices resulted in extraordinary results over the last two years,” GM CFO Paul Jacobson stated Tuesday on the automaker’s fourth-quarter earnings name. “For 2023, we expect earnings to normalize in the mid-$2 billion range.”
Jacobson stated progress within the lender’s retail and business mortgage portfolio partly offset the decline in web leased automobile earnings.
The captive stated it paid a $675 million dividend to GM in December, for a complete of $1.7 billion in 2022. Jacobson stated GM expects an identical dividend this 12 months.
Source: www.autonews.com