Santander Consumer USA (SC) Reports In-Line Q1 EPS

Santander Consumer USA (NYSE: SC) reported Q1 EPS of ($0.01), in-line with the analyst estimate of ($0.01).

"During this unprecedented time, we at Santander Consumer implemented a series of important actions to assist our employees, customers and communities. More than ninety-five percent of our employees now have the ability and are working from home, we launched a firm wide emergency paid leave program and provided supplemental pay to front-line customer support employees. For our customers, we have expanded payment deferrals, implemented late charge waivers and lease extensions, and temporarily suspended involuntary repossessions. For our communities, we have donated $3 million to organizations serving vulnerable populations hardest hit by the crisis. I'm proud of our employees for maintaining course during these challenging times and being available for our customers affected by the pandemic. Our technology team deserves particular appreciation as their efforts allowed us to set up teams promptly to help employees work from home," said Mahesh Aditya, SC President and CEO.

Fahmi Karam, SC Chief Financial Officer, added, "We entered this period of uncertainty from a position of strength with significant liquidity, strong loan loss reserve levels and excess capital. SC demonstrated continued access to liquidity, obtaining significant funding during March. Subsequent to quarter end, we were one of the first ABS issuers to execute a transaction since the beginning of the pandemic, issuing approximately $1 billion in securities. During the quarter, we added $442 million in reserves due to macroeconomic factors and COVID-19. These reserves, combined with our previously announced estimate for day one CECL impact of $2 billion, increase our Q1 allowance ratio to nearly 18%. As of quarter end, our CET1 ratio was 13.8%, following our $450 million tender offer. We remain committed to our long-term objectives of serving our customers and dealers while increasing shareholder value."

For earnings history and earnings-related data on Santander Consumer USA (SC) click here.

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