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  • December8,2016

    SANTANDERCONSUMERUSAHOLDINGSINC.2016ABSInvestorDay

  • 2IMPORTANT INFORMATIONForwardLooking StatementsThis presentation contains forwardlooking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Any statements about ourexpectations, beliefs, plans, predictions, forecasts, objectives, assumptions, or future events or performance are not historical facts and may be forwardlooking.These statements are often, but not always, made through the use of words or phrases such as anticipates, believes, can, could, may, predicts, potential, should,will, estimates, plans, projects, continuing, ongoing, expects, intends, and similar words or phrases. Although we believe that the expectations reflected in theseforwardlooking statements are reasonable, these statements are not guarantees of future performance and involve risks and uncertainties that are subject tochange based on various important factors, some of which are beyond our control. For additional discussion of these risks, refer to the section entitled Risk Factorsand elsewhere in our Annual Report on Form 10K and our Quarterly Reports on Form 10Q filed by us with the U.S. Securities and Exchange Commission (SEC).Among the factors that could cause the forwardlooking statements in this press release and/or our financial performance to differ materially from that suggestedby the forwardlooking statements are (a) the inherent limitations in internal controls over financial reporting; (b) our ability to remediate any material weaknessesin internal controls over financial reporting completely and in a timely manner; (c) continually changing federal, state, and local laws and regulations couldmaterially adversely affect our business; (d) adverse economic conditions in the United States and worldwide may negatively impact our results; (e) our businesscould suffer if our access to funding is reduced; (f) significant risks we face implementing our growth strategy, some of which are outside our control; (g)unexpected costs and delays in connection with exiting our personal lending business; (h) our agreement with Fiat Chrysler Automobiles US LLC may not result incurrently anticipated levels of growth and is subject to certain performance conditions that could result in termination of the agreement; (i) our business couldsuffer if we are unsuccessful in developing and maintaining relationships with automobile dealerships; (j) our financial condition, liquidity, and results of operationsdepend on the credit performance of our loans; (k) loss of our key management or other personnel, or an inability to attract such management and personnel; (l)certain regulations, including but not limited to oversight by the Office of the Comptroller of the Currency, the Consumer Financial Protection Bureau, theEuropean Central Bank, and the Federal Reserve, whose oversight and regulation may limit certain of our activities, including the timing and amount of dividendsand other limitations on our business; and (m) future changes in our relationship with Banco Santander that could adversely affect our operations. If one or moreof the factors affecting our forwardlooking information and statements proves incorrect, our actual results, performance or achievements could differ materiallyfrom those expressed in, or implied by, forwardlooking information and statements. Therefore, we caution not to place undue reliance on any forwardlookinginformation or statements. The effect of these factors is difficult to predict. Factors other than these also could adversely affect our results, and the reader shouldnot consider these factors to be a complete set of all potential risks or uncertainties. New factors emerge from time to time, and management cannot assess theimpact of any such factor on our business or the extent to which any factor, or combination of factors, may cause results to differ materially from those containedin any forwardlooking statement. Any forwardlooking statements only speak as of the date of this document, and we undertake no obligation to update anyforwardlooking information or statements, whether written or oral, to reflect any change, except as required by law. All forwardlooking statements attributableto us are expressly qualified by these cautionary statements.

  • 3AGENDA

    CORPORATEOVERVIEWANDSTRATEGY

    ORIGINATIONS,UNDERWRITINGANDDEALERMANAGEMENT

    SERVICING,COLLECTIONSANDREMARKETING

  • 4

    VEHICLEFINANCE

    LEVERAGINGTECHNOLOGYISINTEGRALTOTHEFOURPILLARSOFOURFOCUSEDBUSINESSMODEL

    FOCUSED BUSINESS MODEL

    DISCIPLINEDAPPROACHTOMARKETSIMPLE,PERSONAL,FAIRAPPROACHWITH

    CUSTOMERS,EMPLOYEESANDALLCONSTITUENCIES

    SERVICEDFOROTHERS

    FUNDINGANDLIQUIDITY CULTUREOFCOMPLIANCE

  • 5INDUSTRY MARKET SHARE TRENDS ALL FICOS

    2014Q1 2014Q2 2014Q3 2014Q4 2015Q1 2015Q2 2015Q3 2015Q4 2016Q1 2016Q2 2016Q3TOP10COMBINED 50.41% 48.82% 48.59% 47.60% 50.44% 50.19% 50.51% 49.78% 49.41% 48.00% 47.83%

    OTHERSCOMBINED 49.46% 50.92% 51.36% 52.28% 49.33% 49.67% 49.51% 50.05% 50.55% 51.97% 52.12%

    45%

    46%

    47%

    48%

    49%

    50%

    51%

    52%

    53%RetailLoans1

    Top10lendershavelostmarketsharecomparedtotheremainingplayersinthespacesincethebeginningof2015

    SCmaintainsdisciplinedunderwritingstandardsinacompetitiveenvironment

    Increasedcompetitionfrombanksintheprimespace

    CompetitorsoutsideoftheTop10continuetogainmarketshare

    1Loanonly newandusedcombined

  • 6DISCIPLINED LOAN UNDERWRITING CONTINUES IN 3Q16

    1 SCisfinalizingastrategicagreementwithBanco Santandertooriginateandflowprimeandnearprimeretailloanassets2ApproximateFICOscore3 Includessomecapitalleaseoriginations

    Averagemanagedassetsremainstable.Originationsdecreasedasaresultofdisciplinedunderwritingandincreasedcompetition.

    Q32016 Q22016 Q32015 QoQ YoYTotalCoreRetailAuto 1,972 1,654 2,788 19% (29%)ChryslerCapitalLoans(

  • 7STRATEGIC APPROACH TO PORTFOLIO OPTIMIZATION

    SELL

    FICORanges (Approx.)

  • 8

    $14,788 $15,047$14,235

    $13,034$12,157

    3Q15 4Q15 1Q16 2Q16 3Q16

    $inMillions

    Flow Programs 1,348 1,081 860 659 794

    CCART 788

    ResidualSales 1,710

    Impactedbytimingofassetsales

    CCART2016BclosedandresidualsoldduringQ4,addingapproximately$900MinassetstotheSFOplatform

    BancoSantanderflowagreement1

    BeneficialtoSFOplatform

    SERVICED FOR OTHERS (SFO) PLATFORM

    Compositionat9/30/2016

    RIC 75%

    Leases 19%

    RV/Marine 7%

    Total 100%

    ServicedforOthersBalances

    *Saleswithretainedservicingduringperiod

    1 SCisfinalizingastrategicagreementwithBancoSantandertooriginateandflowprimeandnearprimeretailloanassets

  • 9Q4 2016 FUNDING AND LIQUIDITY UPDATE

    Morethan$3.3billioninnewtermABSfundingthusfarinQ4,successfullyexecutedacrossallplatforms

    SDART20163($1.3billion)closed

    CCART2016B($841million)closedandresidualsold

    DRIVE2016C($1.3billion)closed

    Lowercreditspreadsandoverallcostoffundsacrossthecompleteportfolio

    2previouslyretainedsubordinateclassesofnotesweresoldtothemarketachievingbetterpricingandeconomics

    $6.2billioninexistingrevolvingwarehouselinesrenewedinQ4

    $2.2billioninnewcommitmentsestablishedwiththirdparties,includinga$500millioncommitmentfromanewlender

    OnNovember1,2016,theunsecuredportionofSHUSAscommittedliquidityfacilitywasincreasedto$3.0billionfrom$1.5billion

    Demonstratedcontinuedaccesstoliquidityinthefourthquarter

    AssetBackedSecurities

    CreditFacilities

  • 10CONSISTENT CAPITAL GENERATION

    1CommonEquityTier1(CET1)CapitalRatiobeginswithstockholdersequityandthenadjustsforAOCI,goodwill/intangibles,DTAs,cashflowhedgesandotherregulatoryexclusionsoverriskweightedassets;NonGAAPmeasure

    2TangiblecommonequitytotangibleassetsisdefinedastheratioofTotalequity,excludingGoodwillandintangibleassets,toTotalassets,excludingGoodwillandintangibleassets;NonGAAPmeasure,reconciliationincludedin8KfilingdatedNovember9,2016

    1 2

    SChasexhibitedastrongabilitytogenerateearningsandcapital,whilegrowingassets.

    TangibleAssets ($millions) 35,925 36,342 37,661 38,383 38,665

    11.5% 11.2%12.1%

    12.6%13.1%

    12.1% 11.9% 11.9%12.4%

    13.0%

    Q32015 Q42015 Q12016 Q22016 Q32016

    CET1 TCE/TA

  • 11

    0%

    2%

    4%

    6%

    8%

    10%

    1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24

    Monthsonbook

    RecentVintagePerformance

    1H2016 2H2015 1H2015 2H2014 1H2014

    2H2013 1H2013 2H2012 1H2012

    CREDIT QUALITY: NET LOSS CURVESLossesremainconsistentandinlinewithourROAtargets.Lossperformanceforpost2012vintagesshowaconsistentpattern.

    Differenceinlossesisafunctionofcreditmixofeachvintage.

    0%

    2%

    4%

    6%

    8%

    10%

    12%

    14%

    16%

    1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51 52 53 54 55 56 57

    Monthsonbook

    RetailInstallmentContractsHeldforInvestmentNetLosses

    1H2016 2H2015 1H2015 2H2014 1H2014 2H2013 1H2013 2H2012 1H2012

    1H2012

    1H2012

    2H2012

    2H2012

    1H20132H20131H2014

    1H20132H20131H2014

    2H2014

    2H20141H2015

    1H2015

    2H2015

    2H20151H2016

    1H2016

  • 12AGENDA

    CORPORATEOVERVIEWANDSTRATEGY

    ORIGINATIONS,UNDERWRITINGANDDEALERMANAGEMENT

    SERVICING,COLLECTIONSANDREMARKETING

  • 13

    Tenuredmanagementteamwithsignificantindustryexperience Proactivelybuildsandalignsstakeholders,capabilities,andresourcesforcompletinginitiativesefficiently Diversityofmanagementteamimportantforclearlyandquicklyworkingthroughcomplexissues

    ORIGINATIONSO