Core Insights - Ally Financial reported strong third-quarter earnings, with earnings per share of $1.18, exceeding the S&P analysts' consensus estimate of 96 cents, and net income of $371 million, surpassing forecasts of $301.9 million [1][2][7] - The bank's revenue for the quarter reached $2.2 billion, outpacing expectations of $2.11 billion and reflecting a 2% increase from the previous year [2][7] Industry Context - The auto industry is facing challenges, with rising delinquency rates and recent bankruptcies from companies like First Brands and Tricolor [3][4] - In August, auto delinquencies increased across all stages, with 6.43% of subprime auto loans being at least 60 days past due, nearing an all-time high [4] Ally Financial's Performance - Despite industry challenges, Ally Financial experienced a decline in retail auto delinquencies and a charge-off rate for retail auto loans that dropped to 1.88%, down from 2.24% in the same period last year [5][6] - The bank's cautious approach to subprime lending and tightened underwriting standards in 2023 contributed to its strong performance [6]
Ally beats expectations despite auto industry tumult