Ally(US:ALLY)2025-10-30 20:03Financial Performance - For the three months ended September 30, 2025, total financing revenue and other interest income was $3,387 million, a decrease of 5.2% from $3,574 million in the same period of 2024[11]. - Net income from continuing operations for the three months ended September 30, 2025, was $398 million, compared to $198 million for the same period in 2024, representing a 100.0% increase[11]. - The company reported comprehensive income of $673 million for the three months ended September 30, 2025, compared to $814 million for the same period in 2024[11]. - Net income for the nine months ended September 30, 2025, was $525 million, compared to $560 million for the same period in 2024, reflecting a decrease of approximately 6.25%[27]. - Total revenue from contracts with customers for the three months ended September 30, 2025, was $308 million, compared to $319 million for the same period in 2024[46]. - Total revenue from contracts with customers for the nine months ended September 30, 2025, was $943 million, compared to $887 million for the same period in 2024, representing a 6.3% increase[50]. Credit Losses and Provisions - The provision for credit losses for the three months ended September 30, 2025, was $415 million, down from $645 million in the same period of 2024, indicating a 35.6% decrease[11]. - The provision for credit losses for the nine months ended September 30, 2025, was $990 million, a decrease of approximately 38.3% from $1,609 million in 2024[27]. - The provision for credit losses for the nine months ended September 30, 2025, was $990 million, down from $1,268 million in the same period of 2024, reflecting a reduction of approximately 22%[92]. - The company reported no expected credit losses for securities in an unrealized loss position as of September 30, 2025, indicating a stable outlook for credit quality[82]. Assets and Liabilities - Total assets as of September 30, 2025, were $191,711 million, a slight decrease from $191,836 million as of December 31, 2024[17]. - Total liabilities as of September 30, 2025, were $176,594 million, down from $177,933 million as of December 31, 2024[17]. - Total equity increased to $15,117 million as of September 30, 2025, compared to $13,903 million as of December 31, 2024[17]. - Total cash and cash equivalents and restricted cash increased to $11,604 million as of September 30, 2025, up from $9,304 million in 2024, representing a growth of about 24.7%[30]. Dividends and Shareholder Returns - Cash dividends declared per common share remained stable at $0.30 for both the three months ended September 30, 2025, and 2024[14]. - Common stock dividends paid were $285 million for the nine months ended September 30, 2025, compared to $280 million in 2024, indicating a slight increase of about 1.79%[29]. - Common stock repurchases totaled $36 million for the nine months ended September 30, 2025, compared to $31 million in 2024, indicating an increase of approximately 16.1%[29]. Operating Expenses - Total noninterest expense for the three months ended September 30, 2025, was $1,240 million, slightly up from $1,225 million in the same period of 2024[11]. - Total other operating expenses for the nine months ended September 30, 2025, were $1,944 million, slightly down from $1,995 million in 2024, a decrease of 2.6%[61]. Goodwill and Impairments - The company reported a goodwill impairment of $305 million for the nine months ended September 30, 2025, which was not present in the same period of 2024[27]. - The company recorded a goodwill impairment charge of $118 million during the fourth quarter of 2024 due to strategic alternatives explored for Ally Credit Card[42]. - Goodwill decreased to $190 million as of September 30, 2025, from $551 million at December 31, 2024, a decline of approximately 65.5% due to impairment charges related to the sale of Ally Credit Card[197]. Loans and Receivables - Total finance receivables and loans reported at amortized cost were $134,567 million as of September 30, 2025, a slight decrease from $136,030 million at December 31, 2024[85]. - Consumer automotive finance receivables increased to $84,994 million as of September 30, 2025, from $83,757 million at December 31, 2024, representing a growth of approximately 1.5%[85]. - The total consumer automotive loans as of September 30, 2025, amounted to $84,996 million, with 90 or more days past due loans totaling $424 million[109]. - The total past due commercial finance receivables and loans were $71 million as of September 30, 2025, compared to $42 million in December 2024, indicating a rise in delinquency[117]. Investment and Securities - The total available-for-sale securities amounted to $22.684 billion with an average yield of 3.0% as of September 30, 2025[71]. - The total available-for-sale securities with unrealized losses were valued at $16,542 million as of September 30, 2025, with an unrealized loss of $3,039 million, compared to $21,069 million and $4,383 million respectively at December 31, 2024[81]. - The total carrying value of nonmarketable equity investments increased to $858 million as of September 30, 2025, from $789 million at December 31, 2024, an increase of about 8.7%[194]. Lease and Rental Income - Operating lease revenue for the three months ended September 30, 2025, was $365 million, compared to $316 million for the same period in 2024, reflecting a year-over-year increase of approximately 15.5%[154]. - The investment in operating leases, net of accumulated depreciation, increased to $8.599 billion as of September 30, 2025, up from $7.991 billion at the end of 2024, representing a growth of approximately 7.6%[152]. - Total undiscounted cash flows from operating leases are projected to be $115 million, with a total lease liability of $106 million as of September 30, 2025[146]. Miscellaneous - The company does not expect the impact of recently issued accounting standards to be material[38]. - The company recognized $141 million of expense related to deferred insurance assets during the three months ended September 30, 2025[48]. - The company recognized variable lease payments related to excess mileage and excessive wear and tear on vehicles amounting to $5 million for the three months ended September 30, 2025[155].