Ally Financial (ALLY) Q2 Earnings: How Key Metrics Compare to Wall Street Estimates

Core Insights - Ally Financial reported $2.08 billion in revenue for the quarter ended June 2025, a year-over-year increase of 4.1%, with an EPS of $0.99 compared to $0.97 a year ago, exceeding the Zacks Consensus Estimate of $2.03 billion by 2.56% and delivering an EPS surprise of 26.92% [1] Financial Performance Metrics - Net interest margin was reported at 3.4%, slightly above the average estimate of 3.3% [4] - Efficiency Ratio stood at 60.6%, compared to the estimated 59.8% [4] - Net charge-offs to average finance receivables and loans outstanding were 1.1%, better than the average estimate of 1.3% [4] - Book value per share was $39.71, exceeding the average estimate of $39.21 [4] - Net financing revenue reached $1.52 billion, slightly above the estimated $1.51 billion, representing a 1.4% increase year-over-year [4] - Total other revenue was $566 million, surpassing the average estimate of $519.32 million, reflecting a 12.1% year-over-year change [4] - Insurance premiums and service revenue earned were $359 million, compared to the average estimate of $354.05 million, marking a 5.3% year-over-year increase [4] - Gain on mortgage and automotive loans was reported at -$4 million, significantly below the average estimate of $4.78 million, indicating a year-over-year decline of 166.7% [4] - Total financing revenue and other interest income was $3.33 billion, below the average estimate of $3.44 billion, representing a 6% year-over-year decrease [4] - Other income, net of losses, was $150 million, compared to the average estimate of $160.26 million, reflecting a 9.1% year-over-year decline [4] - Interest-bearing cash was reported at $95 million, below the average estimate of $105.92 million, but showing an 8% year-over-year increase [4] - Interest on loans held-for-sale was $6 million, compared to the estimated -$9.3 million, indicating a 14.3% year-over-year decline [4] Stock Performance - Shares of Ally Financial returned +9.2% over the past month, outperforming the Zacks S&P 500 composite's +5.4% 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]