Ally Financial Reports Q3 Earnings with Strong Profitability and Asset Growth
Ally Financial (ALLY) reported strong third-quarter results, driven by a 16% year-over-year increase in adjusted earnings per share to $1.34. This growth was supported by higher net financing revenue of $1.8 billion—a 10% rise—and flat noninterest expenses. The company also saw record application volumes and increased originations across its retail auto segment, which grew by 10%, as well as a significant expansion in corporate finance loans to $15.8 billion. Ally raised its full-year average earning asset growth guidance from 3%–5% to 5%–6%. The company maintained strong capital levels with a CET1 ratio of 10.2% and repurchased shares worth $178 million during the quarter. However, management highlighted ongoing challenges such as lease termination losses due to declining Stellantis auction prices and residual values, which are expected to persist into Q4. Despite these headwinds, Ally's core return on tangible common equity (ROTCE) rose 80 basis points year over year to 13.1%, reflecting improved efficiency and asset remixing.
Tickers: $ALLY
Topics: consumer auto originations earnings financial performance net revenue growth