Ally(US:ALLY)2025-07-18 11:40Financial Performance - GAAP EPS of $1.04 and Adjusted EPS of $0.99, up 68% and 36% year over year, respectively[10] - Pre-tax income of $436 million, up $157 million year over year; Core pre-tax income of $418 million, up $96 million year over year[10] - Net income attributable to common shareholders was $324 million, compared to $191 million in Q2 2024, representing a 70% increase[9] - Total net revenue of $2.1 billion, up 3% year over year[9] - GAAP Net Income attributable to common shareholders for Q2 2025 was $324 million, compared to a loss of $253 million in Q1 2025 and a profit of $191 million in Q2 2024[69] - Adjusted Earnings Per Share (EPS) for Q2 2025 was $0.99, up from $0.58 in Q1 2025 and $0.73 in Q2 2024[69] - Adjusted Total Net Revenue for Q2 2025 was $2,064 million, consistent with Q2 2024 but slightly down from $2,065 million in Q1 2025[74] Customer Growth - Ally Bank serves an all-time high of 3.4 million customers, marking 65 consecutive quarters of growth in the customer base[7] - Ally Bank added 30,000 net new deposit customers, totaling 3.4 million, representing a 5% year-over-year increase, with millennials and younger customers making up 75% of new customers[40] Deposits and Liquidity - Retail deposits reached $143 billion, with 92% being FDIC insured[10] - Retail deposits increased to $143.2 billion, up $1.1 billion year-over-year, while total deposits were $147.9 billion[39] - Total current available liquidity was $66.8 billion, which is 5.9 times the uninsured deposit balances[37] - The average retail portfolio deposit rate was 3.58%, down 60 basis points year-over-year and down 17 basis points quarter-over-quarter[40] Insurance and Investment - Insurance written premiums of $349 million, up 2% year over year[10] - Written premiums reached $349 million, reflecting a 2% year-over-year increase driven by growth in P&C premiums, partially offset by higher reinsurance costs[29] - Total investment income, excluding changes in fair value of equity securities, was $59 million, up $10 million year-over-year due to higher realized investment gains[29] Corporate Finance - Corporate Finance generated a strong 31% ROE, ending the quarter with zero net charge-offs[6] - Pre-tax income in Corporate Finance was $96 million, down $13 million year-over-year, attributed to lower other revenue and net financing revenue[31] - The return on equity (ROE) for the quarter was 31%, with a held-for-investment loan portfolio of $11.0 billion, maintaining low criticized assets and non-accrual loan percentages at 10% and 1% respectively[33] Capital and Efficiency - Ally's common equity tier 1 (CET1) capital ratio stood at 9.9%, with risk-weighted assets (RWA) of $151.4 billion, down $2.3 billion quarter-over-quarter due to the sale of Credit Card[35][36] - Adjusted Efficiency Ratio improved to 50.9% in Q2 2025, down from 56.0% in Q1 2025 and 52.7% in Q2 2024[71] - Adjusted Noninterest Expense for Q2 2025 was $1,262 million, a decrease from $1,634 million in Q1 2025 and consistent with $1,286 million in Q2 2024[74] - Adjusted Tangible Book Value per Share increased to $37.30 in Q2 2025, up from $35.95 in Q1 2025 and $33.01 in Q2 2024[70] Credit Losses and Provisions - GAAP Provision for Credit Losses for Q2 2025 was $384 million, compared to $191 million in Q1 2025 and $457 million in Q2 2024[74] Regulatory and Forward-Looking Statements - The company adopted a five-year transition option for CECL, phasing in the regulatory capital impacts from January 1, 2022, to January 1, 2025[67] - The company emphasizes that forward-looking statements are subject to various risks and uncertainties that could cause actual results to differ materially from expectations[83] - The company does not undertake to update any forward-looking statements after their initial date, except as required by applicable securities laws[85] - Non-GAAP financial measures are provided to supplement GAAP results, and differences between these measures are reconciled in the release[86] - The company defines "loans" to include consumer and commercial products associated with direct and indirect financing activities, excluding operating leases[87]