Ally Financial (ALLY) Reports Q4 Earnings: What Key Metrics Have to Say

Core Insights - Ally Financial reported revenue of $2.03 billion for the quarter ended December 2024, a decrease of 2$0.78, up from $0.45 in the same quarter last year, indicating a significant EPS surprise of +36.84$0.57 [1] Financial Performance Metrics - Net interest margin was reported at 3.3%, slightly above the average estimate of 3.2% [4] - Efficiency ratio was 67.1%, significantly higher than the estimated 58.3% [4] - Book value per share was $37.92, lower than the estimated$39.18 [4] - Net charge-offs to average finance receivables and loans outstanding were 1.6%, better than the estimated 1.9% [4] - Total other revenue was $517 million, down 9.9$590.90 million [4] - Gain on mortgage and automotive loans was $6 million, a 100$5.67 million [4] - Insurance premiums and service revenue earned were $368 million, slightly above the estimate of$364.09 million, reflecting a 9.9% year-over-year increase [4] - Net financing revenue was $1.51 billion, surpassing the estimate of$1.48 billion [4] - Other (loss) / gain on investments was -$24 million, significantly worse than the estimated gain of$52.65 million, representing a year-over-year change of -128.2% [4] - Other income, net of losses, was $167 million, slightly above the estimate of$163.77 million, with a year-over-year increase of 10.6% [4] - Total financing revenue and other interest income was $3.53 billion, below the estimate of$3.59 billion, reflecting a year-over-year decrease of 2.6% [4] - Interest and fees on finance receivables and loans were $2.83 billion, lower than the estimate of$2.88 billion, with a year-over-year change of -1.9% [4] Stock Performance - Shares of Ally Financial have returned +6.8% over the past month, outperforming the Zacks S&P 500 composite's +2.1% change [3] - The stock currently holds a Zacks Rank 3 (Hold), suggesting it may perform in line with the broader market in the near term [3]