Ally Financial Inc

ALLY

Equity

ISIN US02005N1000 / Valor 19440971

New York Stock Exchange, Inc (2024-12-26)

USD 36.01+0.73%

Ally Financial Inc
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About company

Ally Financial Inc., listed on the New York Stock Exchange under the ticker ALLY, operates as a prominent digital financial services entity. Through its direct banking subsidiary, Ally Bank, the company provides a comprehensive suite of financial products and services. These offerings encompass a variety of deposit accounts, personal lending options, and mortgage services, catering to the diverse needs of its customer base. Ally Bank is recognized as a Member FDIC and an Equal Housing Lender, ensuring a level of security and fairness in its operations. Beyond traditional banking, Ally Financial extends into the insurance domain via Ladder Insurance Services, LLC, which brokers term life insurance policies underwritten by multiple insurers. Additionally, the company engages in the securities market through Ally Invest Securities LLC, offering brokerage services, and Ally Invest Advisors Inc., which provides investment advisory services. These subsidiaries enable Ally Financial to offer a broad spectrum of financial products, including those not insured by the FDIC, such as securities, which carry a risk of loss. Ally also ventures into the credit card market, issuing cards under the Mastercard brand through Ally Bank. This diversified portfolio positions Ally Financial as a comprehensive provider in the digital financial services landscape.

Summarized from source with an LLMView SourceSector: Finance

Net Income Growth

In the third quarter of 2024, Ally Financial Inc. reported a net income attributable to common shareholders of $330 million, marking an increase from $269 million in the same quarter of the previous year. This growth was primarily driven by a tax benefit associated with electric vehicle lease originations and higher adjusted other revenue, despite facing higher provision expenses and lower net financing revenue.

Earnings Per Share

Ally Financial Inc. achieved a GAAP earnings per share (EPS) of $1.06 in the third quarter of 2024, which represents an increase of $0.18 compared to the third quarter of 2023. The adjusted EPS for the same period was $0.95, reflecting a $0.12 increase year over year, showcasing the company's improved profitability.

Revenue Performance

The company reported a GAAP total net revenue of $2.1 billion for the third quarter of 2024, up 7% from the previous year. Adjusted total net revenue was $2.1 billion as well, showing a 1% increase year over year. This growth was supported by a $180 million increase in other revenue, driven by strong performance in the insurance sector and diversified fee revenue.

Provision for Credit Losses

Ally Financial Inc. experienced an increase in the provision for credit losses, which rose by $137 million year over year to $645 million in the third quarter of 2024. This increase was attributed to higher net charge-offs and a 15 basis point rise in the retail auto reserve rate, reflecting the company's cautious approach to credit risk management.

Operational Highlights

During the third quarter of 2024, Ally Financial Inc. reported $9.4 billion in consumer auto origination volume, sourced from 3.6 million consumer auto applications. The retail auto originated yield was 10.54%, with 43% of the volume within the highest credit quality tier. Additionally, the company achieved record insurance written premiums of $384 million, marking a 15% increase year over year.

Summarized from source with an LLMView Source

Key figures

3.81%1Y

-24.3%3Y

17.2%5Y

Performance

35.1%1Y

41.8%3Y

49.2%5Y

Volatility