Yahoo Finance

• Adjusted Earnings Per Share: $0.58

• Core Pretax Income: $247 million

• Adjusted Net Revenue: $2.1 billion

• Net Interest Margin: 3.35%

• Consumer Auto Originations: $10.2 billion

• Originated Yield: 9.8%

• Insurance Written Premiums: $385 million

• Corporate Finance Pretax Income: $76 million

• Deposits: $146 billion

• Net Financing Revenue (excluding OID): Approximately $1.5 billion

• Adjusted Other Revenue: $571 million

• Adjusted Provision Expense: $497 million

• Retail Auto Net Charge-Offs: 212 basis points

• Consolidated Net Charge-Off Rate: 150 basis points

• Common Equity Tier 1 (CET1) Ratio: 9.5%

• Warning! GuruFocus has detected 3 Warning Signs with IDGXF.

Release Date: April 17, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• Ally Financial Inc (NYSE:ALLY) reported adjusted earnings per share of $0.58, core pretax income of $247 million, and adjusted net revenue of $2.1 billion, reflecting solid execution across core businesses.

• The company achieved a Net Promoter Score well ahead of industry averages, with positive brand social sentiment nearly 90%, indicating strong customer trust and loyalty.

• Ally Financial Inc (NYSE:ALLY) successfully closed the sale of its credit card business, strengthening its balance sheet and reducing interest rate risk.

• The Auto Finance business saw consumer originations of $10.2 billion, driven by a record 3.8 million applications, highlighting strong dealer relationships and franchise scale.

• The Corporate Finance segment delivered a strong quarter with pretax income of $76 million and a 25% ROE, demonstrating resilience across economic cycles.

Negative Points

• GAAP noninterest expense was impacted by a write-down of goodwill associated with the transfer of card assets to held for sale, contributing to a GAAP loss per share of $0.82 for the quarter.

• The insurance segment faced elevated weather-related losses totaling $58 million, marking the highest first quarter of weather-related losses in the company's history.

• Retail auto net charge-offs, while improved, remain elevated, with ongoing macroeconomic uncertainty posing potential risks to credit performance.

• The sale of the credit card business is expected to have a 20 basis point negative impact on net interest margin on a run rate basis.

• The company faces uncertainty due to evolving trade policies and tariffs, which could impact used car prices and overall business performance.

Q & A Highlights

Q: Michael, how do you think the evolving uncertainty related to tariffs impacts your business? A: Michael Rhodes, CEO: The environment is fluid, but we are in a position of strength. Our balance sheet, capital strength, and credit risk position are robust. We've taken strategic steps like selling our credit card business and repositioning our securities portfolio to manage this uncertainty. In the near term, tariffs might benefit used car prices and demand. In the medium term, the focus will be on macroeconomic impacts like inflation and consumer health. Overall, we are executing well and are well-positioned to handle this environment.