Ally Financial Stock Jumps More Than 10% After Strong Q4 Results, Deal with Synchrony

Financial Performance - Ally Financial reported strong fourth quarter results with earnings per share (EPS) of $0.45 and total net revenue of $2.1 billion, both exceeding analysts' estimates [1] - Net financing revenue in the auto finance business rose by $5 million to $1.3 billion, driven by higher interest rates [2] - Pre-tax income at the insurance unit increased by $28 million to $129 million, primarily due to elevated earned premiums [2] Strategic Transaction - Ally Financial announced a deal with Synchrony Financial to sell its point-of-sale financing arm, which includes $2.2 billion in loan receivables [1][2] - The portfolio includes relationships with nearly 2,500 merchant locations and supports more than 450,000 active borrowers in home improvement services and healthcare [2] - The transaction is expected to close in the current quarter, with financial considerations for the purchase not disclosed [2] Market Reaction - Ally Financial shares surged 10.4% to $35.46, reaching their highest level since August 2022 [3] - Synchrony Financial stock also rose by 3.1% to $36.89 [3]