Ally(US:ALLY)2024-11-05 12:08Financial Performance - For the three months ended September 30, 2024, Ally Financial reported net income from continuing operations of $357 million, an increase of 20.6% compared to $296 million in the same period of 2023[10]. - Total net revenue for the three months ended September 30, 2024, was $2.103 billion, compared to $1.968 billion in the same period of 2023, marking an increase of 6.9%[10]. - Net income for the nine months ended September 30, 2024, was $808 million, down from $944 million for the same period in 2023, reflecting a decrease of about 14.4%[25]. - Net income attributable to common stockholders for the nine months ended September 30, 2024, was $725 million, down from $862 million in 2023, a decrease of 15.9%[194]. - Ally Financial's diluted earnings per common share for the three months ended September 30, 2024, was $1.06, up from $0.88 in the same period of 2023, representing a growth of 20.5%[12]. - Basic earnings per common share for the three months ended September 30, 2024, was $1.07, compared to $0.88 in 2023, reflecting a 21.6% increase[194]. Revenue and Income Sources - Total financing revenue and other interest income for the nine months ended September 30, 2024, was $10.694 billion, up from $10.335 billion in the same period of 2023, reflecting a growth of 3.5%[10]. - For the three months ended September 30, 2024, total revenue from contracts with customers was $319 million, with noninsurance contracts contributing $246 million[57]. - During the nine months ended September 30, 2024, total revenue from contracts with customers reached $887 million, with noninsurance contracts accounting for $666 million[60]. - Ally Financial's total other revenue for the nine months ended September 30, 2024, was $1.650 billion, with all other revenue contributing $763 million[60]. Assets and Liabilities - Total assets as of September 30, 2024, were $192.981 billion, a decrease from $196.392 billion as of December 31, 2023, reflecting a decline of 1.9%[14]. - Total liabilities decreased to $178.256 billion as of September 30, 2024, from $182.626 billion as of December 31, 2023, indicating a reduction of 2%[14]. - Total assets decreased from $7,075 million on December 31, 2023, to $5,458 million on September 30, 2024, representing a decline of approximately 22.8%[17]. - Total liabilities increased from $1,513 million on December 31, 2023, to $1,720 million on September 30, 2024, marking an increase of approximately 13.7%[17]. - Total equity of Ally Financial increased to $14.725 billion as of September 30, 2024, compared to $13.766 billion as of December 31, 2023, reflecting an increase of 7%[14]. Credit Losses and Provisions - The provision for credit losses increased to $645 million for the three months ended September 30, 2024, compared to $508 million in the same period of 2023, representing a rise of 27%[10]. - The provision for credit losses rose to $1,609 million for the nine months ended September 30, 2024, compared to $1,381 million for the same period in 2023, indicating an increase of about 16.5%[25]. - The allowance for loan losses at September 30, 2024, was $3,700 million, reflecting a provision for credit losses of $1,609 million during the nine months ended September 30, 2024[82]. - The provision for credit losses for the three months ended September 30, 2024, was $645 million, indicating a proactive approach to managing credit risk[80]. Investments and Securities - The total available-for-sale securities amounted to $27.312 billion as of September 30, 2024, with unrealized losses of $3.430 billion[67]. - The fair value of total available-for-sale securities decreased from $28.416 billion at December 31, 2023, to $23.905 billion at September 30, 2024, a decline of 15.7%[67]. - The total gross reserves for insurance losses and loss adjustment expenses at September 30, 2024, were $197 million, compared to $145 million in 2023, marking a 36% increase[63]. - The net unrealized gain on equity securities for the three months ended September 30, 2024, was $58 million[73]. Dividends and Shareholder Returns - The company declared cash dividends of $0.30 per common share for the three months ended September 30, 2024, consistent with the same period in 2023[12]. - Common stock dividends paid remained stable at $280 million for the nine months ended September 30, 2024, compared to $277 million in the same period of 2023[27]. Regulatory and Capital Requirements - As of September 30, 2024, Ally's stress capital buffer requirement was 2.5%, which was updated to 2.6% in August 2024[198]. - Ally is subject to enhanced prudential standards and must maintain a minimum Common Equity Tier 1 risk-based capital ratio of 4.5%[198]. - Common Equity Tier 1 capital ratio for Ally Financial Inc. increased to 9.79% as of September 30, 2024, up from 9.36% on December 31, 2023[202]. - The total capital ratio for Ally Financial Inc. reached 12.90% as of September 30, 2024, compared to 12.41% at the end of 2023[202].