GM Financial Earnings Nearly Double
NEW YORK (
) --
General Motors Financial Company
, formerly known as AmeriCredit, earned $51.3 million in the latest quarter, almost double the $25.8 million it brought in a year ago.
New loan originations rose to $959 million versus $906 million for the second quarter, and $229 million a year ago. Loan delinquencies also dropped versus the third quarter of 2009.
The earnings were negatively impacted by a $43 million pre-tax charge related to the acquisition by
General Motors
z
(GM) - Get Report
earlier this year.
As
TheStreet.com
pointed out in August
, GM's acquisition of AmeriCredit will help it take advantage of a whopping $45 billion tax break it will enjoy as a result of massive losses it made during the financial crisis.
Other companies expected to enjoy similar benefits include
Citigroup
(C) - Get Report
,
Synovus
(SNV) - Get Report
and
CIT Group
(CIT) - Get Report
, and
AIG
(AIG) - Get Report
especially if they can find a way to
acquire profitable companies
as GM has done.
GM is on the road talking to investors as it prepares for an initial public offering.
--
Written by Dan Freed in New York
.
Disclosure: TheStreet's editorial policy prohibits staff editors, reporters and analysts from holding positions in any individual stocks.
