Ally(US:ALLY)2025-05-05 21:03Financial Performance - Total financing revenue and other interest income decreased to $3,393 million in Q1 2025 from $3,582 million in Q1 2024, a decline of 5.3%[11] - Net loss from continuing operations was $225 million in Q1 2025 compared to a net income of $143 million in Q1 2024, representing a significant shift in performance[11] - Total noninterest expense increased to $1,634 million in Q1 2025, up from $1,308 million in Q1 2024, marking a rise of 24.9%[11] - The company reported a comprehensive income of $437 million in Q1 2025, compared to a loss of $30 million in Q1 2024, showing a positive turnaround[11] - Basic earnings per common share for Q1 2025 was $(0.82), compared to $0.38 in Q1 2024, reflecting a decline in profitability[14] - Net loss for the three months ended March 31, 2025, was $225 million, compared to a net income of $143 million for the same period in 2024[26] - The net loss attributable to common shareholders for the three months ended March 31, 2025, was $253 million, compared to a net income of $115 million for the same period in 2024[209] Credit Quality - The provision for credit losses was $191 million in Q1 2025, down from $507 million in Q1 2024, indicating improved credit quality[11] - The allowance for loan losses decreased to $3,398 million as of March 31, 2025, from $3,714 million at the end of 2024, indicating a reduction in risk[18] - The provision for credit losses was $191 million for the three months ended March 31, 2025, down from $507 million for the same period in 2024, indicating a significant reduction[88] - The company recorded no expected credit losses for securities in an unrealized loss position as of March 31, 2025, indicating stable credit quality[80] Assets and Liabilities - Total assets increased to $193,331 million as of March 31, 2025, compared to $191,836 million at the end of 2024, reflecting a growth of 0.8%[18] - Total liabilities rose to $179,099 million as of March 31, 2025, compared to $177,933 million at the end of 2024, an increase of 0.7%[18] - Total equity at March 31, 2025, was $14,232 million, an increase from $13,580 million at March 31, 2024[29] - Total deposit liabilities were $151.428 billion as of March 31, 2025, slightly down from $151.574 billion at December 31, 2024[179] - Long-term debt totaled $16.465 billion at March 31, 2025, compared to $17.495 billion at December 31, 2024[185] Cash Flow - Net cash provided by operating activities for the three months ended March 31, 2025, was $940 million, down from $1,266 million in the same period of 2024[26] - Total cash and cash equivalents and restricted cash at March 31, 2025, amounted to $11,417 million, an increase from $8,640 million at March 31, 2024[29] - Cash equivalents increased to $451 million at March 31, 2025, compared to $106 million at December 31, 2024[72] Revenue and Income - The company reported total revenue from contracts with customers of $323 million for the three months ended March 31, 2025, compared to $244 million for the same period in 2024, reflecting a year-over-year increase of approximately 32.4%[49] - Other income, net of losses, increased to $197 million for the three months ended March 31, 2025, compared to $150 million for the same period in 2024, marking a growth of approximately 31.3%[55] Investment and Securities - The investment portfolio includes available-for-sale securities with a fair value of $22.346 billion as of March 31, 2025, down from $22.410 billion at the end of 2024, indicating a decrease of 0.3%[62] - The company reported a net realized loss of $495 million on available-for-sale securities for the three months ended March 31, 2025[75] - The fair value of investment securities pledged as collateral was $4.2 billion as of March 31, 2025, compared to $3.4 billion at the end of 2024, an increase of 23.5%[64] Insurance and Reserves - Total gross reserves for insurance losses and loss adjustment expenses increased to $268 million as of March 31, 2025, compared to $164 million at the end of 2024, representing a 63.4% increase[57] - Net insurance losses incurred for the current year were $161 million for the three months ended March 31, 2025, up from $103 million in the same period of 2024, reflecting a 56.3% increase[57] - The company reported total net insurance losses paid or payable of $98 million for the three months ended March 31, 2025, slightly down from $99 million in the same period of 2024[57] Operational Metrics - The company experienced a net change in short-term borrowings of $1,714 million for the three months ended March 31, 2025, compared to a decrease of $3,297 million in the same period of 2024[28] - Total sales and transfers of finance receivables and loans increased significantly to $2,321 million in Q1 2025 from $1,153 million in Q1 2024, marking a growth of 101.5%[93] - Nonaccrual loans increased to $1,486 million as of March 31, 2025, from $1,394 million at December 31, 2024, representing a rise of 6.6%[99] Goodwill and Intangible Assets - Goodwill at March 31, 2025, was $190 million, a decrease from $551 million at December 31, 2024, primarily due to a $305 million goodwill impairment charge[173][175] - The net carrying value of intangible assets was $54 million as of March 31, 2025, down from $54 million at December 31, 2024[177] Employee Compensation - Employee compensation and benefits decreased to $232 million for the three months ended March 31, 2025, down from $424 million for the same period in 2024[194]