Core Insights - Ally Financial reported $2.12 billion in revenue for Q4 2025, a year-over-year increase of 4.8%, with an EPS of $1.09 compared to $0.78 a year ago, indicating a positive trend in earnings performance [1] - The revenue fell short of the Zacks Consensus Estimate by 0.19%, while the EPS exceeded the consensus estimate by 8.15% [1] Financial Performance Metrics - Net interest margin was reported at 3.5%, matching the average estimate from analysts [4] - The efficiency ratio was 58.9%, higher than the average estimate of 55.9% [4] - Net charge-offs to average finance receivables and loans outstanding were 1.3%, in line with analyst estimates [4] - Total interest-earning assets averaged $182.44 billion, slightly above the estimated $181.96 billion [4] - Insurance premiums and service revenue earned were $366 million, slightly below the estimate of $364.22 million, representing a year-over-year decrease of 0.5% [4] - Net financing revenue was reported at $1.6 billion, reflecting a year-over-year increase of 5.9% [4] - Total other revenue was $525 million, slightly below the estimate of $529.7 million, with a year-over-year increase of 1.6% [4] - Total financing revenue and other interest income was $3.42 billion, matching the estimate but showing a year-over-year decrease of 3.2% [4] - Other income, net of losses, was $167 million, exceeding the estimate of $149.94 million, with no year-over-year change [4] - Revenue from insurance operations for net financing was $36 million, above the estimate of $33.21 million, with a year-over-year increase of 16.1% [4] - Revenue from insurance operations for other revenue was $390 million, exceeding the estimate of $361.95 million, with a year-over-year increase of 12.1% [4] - Revenue from corporate finance operations for net financing was $111 million, below the estimate of $120.4 million, reflecting a year-over-year decrease of 3.5% [4] Stock Performance - Shares of Ally Financial have returned -8.6% over the past month, compared to the Zacks S&P 500 composite's -0.4% change, indicating underperformance relative to the broader market [3] - The stock currently holds a Zacks Rank 3 (Hold), suggesting it may perform in line with the market in the near term [3]

分组1 - Ally Financial reported quarterly earnings of $1.09 per share, exceeding the Zacks Consensus Estimate of $1.01 per share, and up from $0.78 per share a year ago, representing an earnings surprise of +8.15% [1] - The company posted revenues of $2.12 billion for the quarter ended December 2025, slightly missing the Zacks Consensus Estimate by 0.19%, but up from $2.03 billion year-over-year [2] - Over the last four quarters, Ally Financial has surpassed consensus EPS estimates four times and topped consensus revenue estimates two times [2] 分组2 - The stock has underperformed the market, losing about 6.3% since the beginning of the year compared to the S&P 500's decline of 0.7% [3] - The current consensus EPS estimate for the coming quarter is $1.01 on revenues of $2.16 billion, and for the current fiscal year, it is $5.33 on revenues of $8.92 billion [7] - The Zacks Industry Rank for Financial - Consumer Loans is currently in the bottom 34% of over 250 Zacks industries, indicating potential challenges for stock performance [8]

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Core Insights - Ally Financial reported a strong performance in 2025, with adjusted earnings per share of $3.81, a 62% increase year over year, and core return on tangible common equity (ROTCE) of 10.4%, up more than 300 basis points compared to 2024 [2][5] - The company executed strategic actions including exiting non-core businesses and repositioning its investment securities portfolio, which contributed to improved profitability and credit performance [3][5] Financial Performance - Adjusted net revenue for 2025 was $8.5 billion, reflecting a 3% year-over-year increase, or 6% when excluding the impact of the credit card business sale [2][5] - Retail auto originations reached $43.7 billion, an 11% increase, with 43% of the volume in the highest credit tier [5][6] - The digital bank ended the year with $144 billion in retail deposits, maintaining a customer base of 3.5 million, marking 17 consecutive years of growth [9] Credit and Risk Management - Retail auto net charge-offs (NCOs) for the fourth quarter were reported at 2.14%, down 20 basis points year over year, with full-year retail auto NCOs at 1.97%, below prior guidance [14] - The company processed a record 15.5 million applications, allowing for selective originations and maintaining underwriting discipline [6][8] 2026 Guidance - For 2026, Ally expects a net interest margin (NIM) of 3.6% to 3.7%, retail auto NCOs of 1.8% to 2.0%, and low single-digit growth in other revenue [4][18] - Expense growth is anticipated to be around 1%, with continued investments in AI, cyber, and customer experience [18] Capital Management - Ally ended 2025 with a Common Equity Tier 1 (CET1) ratio of 10.2% and announced a $2 billion share repurchase authorization [20][21] - The adjusted tangible book value per share increased nearly 20% over the past year, ending at $40 [21]

Ally Financial (NYSE:ALLY) Q4 2025 Earnings call January 21, 2026 09:00 AM ET Company ParticipantsRyan Nash - Managing DirectorRussell Hutchinson - CFOJeffrey Adelson - Executive DirectorMichael G. Rhodes - CEOSean Leary - Chief Financial Planning and Investor Relations OfficerConference Call ParticipantsMoshe Orenbuch - Managing Director and Senior AnalystSanjay Sakhrani - Managing Director and Senior AnalystRobert Wildhack - Director, Equity Research AnalystMark DeVries - Director, Senior Research Analyst ...

Ally Financial (NYSE:ALLY) Q4 2025 Earnings call January 21, 2026 09:00 AM ET Company ParticipantsRyan Nash - Managing DirectorRussell Hutchinson - CFOJeffrey Adelson - Executive DirectorMichael G. Rhodes - CEOSean Leary - Chief Financial Planning and Investor Relations OfficerConference Call ParticipantsMoshe Orenbuch - Managing Director and Senior AnalystSanjay Sakhrani - Managing Director and Senior AnalystRobert Wildhack - Director, Equity Research AnalystMark DeVries - Director, Senior Research Analyst ...

Financial Data and Key Metrics Changes - Adjusted EPS for 2025 was $3.81, up 62% year-over-year [4] - Core ROTCE increased to 10.4%, up more than 300 basis points compared to 2024 [4] - Adjusted net revenue reached $8.5 billion, a 3% increase year-over-year, and a 6% increase when excluding the sale of the card business [5] - CET1 ended the year at 10.2%, with a fully phased-in CET1 of 8.3%, up 120 basis points in 2025 [5][19] Business Line Data and Key Metrics Changes - Retail auto and corporate finance loans grew by 5% in 2025, driven by strong performance in core franchises [6] - Dealer Financial Services originated $43.7 billion in consumer loans, an 11% increase year-over-year [8] - Insurance written premiums exceeded $1.5 billion, marking a record for the company [9] - Corporate finance achieved a 28% ROE with strong growth in the loan portfolio [9] Market Data and Key Metrics Changes - Retail deposit balances reached $144 billion, reinforcing the company's position as the largest all-digital direct bank in the U.S. [10] - The company served 3.5 million customers, marking the 17th consecutive year of customer growth [10] - Retail auto net charge-offs for the year were 1.97%, below the 2% mark, indicating strong credit performance [23] Company Strategy and Development Direction - The company undertook a strategic refresh in 2025, focusing on areas with clear competitive advantages [3] - A $2 billion open-ended share repurchase authorization was announced, indicating confidence in future growth [7] - The company aims to maintain expense discipline while investing in core businesses and technology [15][32] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism for 2026, emphasizing the importance of bridging strategy to execution [46] - The company is focused on building strong volumes with appropriate margins and pricing in the auto franchise [47] - Management acknowledged macroeconomic uncertainties, particularly regarding the labor market and used vehicle prices [50][54] Other Important Information - The company executed two credit risk transfer transactions totaling $10 billion in notional retail auto loans [6] - Adjusted tangible book value per share increased by nearly 20% over the past year [20] Q&A Session Summary Question: NIM progression and drivers - Management confirmed expectations for NIM to be down quarter-over-quarter in Q1 but expressed confidence in a strong exit trajectory for the year [37][39] Question: Retail auto coverage ratio - Management indicated that reserve releases are not factored into return expectations, focusing instead on prudent credit management [41][44] Question: 2026 outlook and risks - Management highlighted optimism for 2026, with a focus on maintaining strong fundamentals and managing macroeconomic risks [46][50] Question: NIM upper bound and ROE expectations - Management clarified that achieving mid-teens ROE requires high threes NIM, sub-2% retail auto NCO rate, and disciplined capital and expense management [60]

Ally Financial Inc. 4Q 2025 Earnings Review January 21, 2026 Contact Ally Investor Relations at (866) 710-4623 or investor.relations@ally.com 4Q 2025 Preliminary Results Forward-Looking Statements and Additional Information 2 4Q 2025 Preliminary Results GAAP and Core Results: Quarterly | | | | | | Quarterly Trend | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | ($ millions, except per share data) | 4Q 25 | | 3Q 25 | | 2Q 25 | | | 1Q 25 | 4Q 24 | | | GAAP net income (loss) at ...

Financial Performance - Full-Year 2025 earnings per share (EPS) was $2.37, with adjusted EPS of $3.81, while fourth quarter EPS was $0.95, adjusted EPS at $1.09[2] - Full-Year 2025 total net revenue reached $7.9 billion, with pre-tax income of $1.1 billion and a return on common equity (ROCE) of 6.0%[3] - The company reported a GAAP Net Income Attributable to Common Shareholders of $742 million for FY 2025, compared to $558 million in FY 2024, marking a 33% increase[71] - Total Net Revenue for FY 2025 was $7,914 million, a decrease from $8,181 million in FY 2024[74] - Adjusted Total Net Revenue increased to $8,451 million in FY 2025 from $8,243 million in FY 2024[76] - Core Pre-Tax Income rose to $1,628 million in FY 2025, up from $1,047 million in FY 2024, showcasing strong profitability growth[76] Revenue and Financing - Fourth quarter net financing revenue was $1.6 billion, an increase of $89 million year-over-year, with a net interest margin (NIM) of 3.48%, up 18 basis points[15] - Net financing revenue in Q4 2025 was $1.3 billion, a decrease of $34 million year-over-year, driven by lower average commercial balances and lease vehicle termination mix dynamics[28] - Net Financing Revenue (excluding Core OID) increased to $6,242 million in FY 2025 from $6,070 million in FY 2024[76] - The average retail deposit portfolio yield was 3.35% for Q4 2025, down 62 basis points year-over-year and down 13 basis points quarter-over-quarter[45] Credit and Losses - Provision for credit losses decreased by $689 million year-over-year, primarily due to improvements in retail auto net charge-offs (NCOs) and the sale of Credit Card[22] - Provision for credit losses totaled $478 million, down $17 million year-over-year, with a retail auto net charge-off rate of 2.14%, decreasing 20 basis points year-over-year[30] - GAAP Provision for Credit Losses decreased to $1,477 million in FY 2025 from $2,166 million in FY 2024, reflecting improved credit quality[76] Deposits and Customer Base - Retail deposits grew to $143.5 billion, serving 3.5 million customers, marking 17 consecutive years of growth[3] - Retail deposits reached $143.5 billion, up $99 million year-over-year and up $1.7 billion quarter-over-quarter, representing 87% of Ally's funding portfolio[44] - Customer retention rate improved to 85%, up from 80% in the previous quarter[91] Strategic Initiatives - The company executed a $2 billion open-ended share repurchase program, signaling confidence in future performance[3] - The company has made strategic repositioning efforts related to extinguishing high-cost legacy debt, which is expected to enhance financial stability[66] - The company anticipates continued focus on strategic initiatives to enhance its market position and financial performance moving forward[85] Insurance Performance - Insurance segment achieved record written premiums of $1.5 billion, demonstrating strong growth and synergies with Auto Finance[6] - Insurance pre-tax income in Q4 2025 was $91 million, an increase of $55 million year-over-year, supported by $369 million of earned premiums[34] - Full-year 2025 pre-tax income for Insurance was $200 million, up $32 million year-over-year, primarily due to an increase in the fair value of equity securities[36] Operational Efficiency - Adjusted Efficiency Ratio improved to 51.9% in FY 2025 from 54.1% in FY 2024, indicating enhanced operational efficiency[74] - Noninterest expense for the full year increased by $207 million, mainly due to goodwill impairment associated with the sale of Credit Card[23] - Adjusted Noninterest Expense (excluding repositioning) was $5,041 million in FY 2025, slightly up from $5,029 million in FY 2024[76] Future Outlook - The company expects Q4 2023 revenue guidance of $1.7 billion, indicating a 13% growth from Q3 2023[91] - New product launch scheduled for Q1 2024, anticipated to drive an additional $200 million in revenue[91] - Market expansion efforts in Europe projected to contribute an additional $100 million in revenue by mid-2024[91] - Investment in R&D increased by 25% to $300 million, focusing on innovative technologies[91]

Core Insights - Ally Financial Inc. reported its fourth quarter and full year 2025 results, indicating a significant performance review [1] Group 1: Financial Performance - The company will host a conference call to discuss its performance, scheduled for 9 a.m. ET [1] - The call will include a review of the results and a question and answer session [1] Group 2: Conference Call Information - Participation in the conference call is available via webcast or dial-in [2] - The webcast will be live on Ally's Investor Relations website [2] - Pre-registration is required for dial-in participation, with a unique registrant ID provided upon registration [3] Group 3: Company Overview - Ally Financial Inc. is a financial services company with the largest all-digital bank in the nation and a leading auto financing business [4] - The company offers a range of services including deposits, securities brokerage, investment advisory, auto financing, and insurance [4] - Ally also has a corporate finance business that provides capital for equity sponsors and middle-market companies [4]