Ally Financial Tops Q3 Estimates on Auto Lending Strength, Shares Rise Nearly 3%

Overview

• Ally reported GAAP EPS of $1.18 (adjusted $1.15) on $2.2 billion in revenue, beating consensus of about $1.01 EPS and $2.11 billion revenue.
• Consumer auto loan originations reached $11.7 billion as the provision for credit losses declined to $410 million and the net charge-off rate improved to 1.88%.
• Net income totaled $371 million with pre-tax income of $513 million, and the retail auto portfolio yield excluding hedges rose to 9.21%.
• Balance sheet metrics included a 10.1% CET1 ratio, $29.4 billion in cash and securities, $66.6 billion in total liquidity, and $141.8 billion in retail deposits.
• The company maintained its $0.30 quarterly dividend and kept buybacks paused, and a mixed shelf filed on Oct. 1 preserved financing flexibility.