Ally Financial released its second-quarter figures on Tuesday, coming in below Wall Street expectations with adjusted earnings per share of $1.21 versus the $1.23 consensus, according to Investing.com.
On a GAAP basis, net income attributable to common shareholders came to $367 million, a 13% gain compared with the year-ago quarter, while the adjusted EPS figure of $1.21 was 22% higher than the prior-year result.
Total net revenue of $2.3 billion topped the prior year's $2.1 billion by roughly 10%, while net financing revenue climbed to $1.7 billion, a $168 million year-over-year gain; net interest margin, stripped of core original issue discount, widened 18 basis points to 3.63%.
"Our results through the first half of the year reflect the strength of our franchises and disciplined execution of our teammates," Chief Executive Officer Michael Rhodes said in a statement.
On the auto side, consumer originations reached $13.3 billion, drawn from a record application pool of 4.6 million, and the estimated retail originated yield stood at 9.09%; retail net charge-offs declined 18 basis points to 1.57%, extending a streak of year-over-year improvement to five straight quarters.
The credit-loss provision reached $430 million, $46 million above the year-ago level, with gains from improved credit quality counterbalanced by reserves set aside to cover portfolio expansion; noninterest expense also increased, rising $57 million from a year earlier.
Insurance written premiums advanced to $382 million, a 9% year-over-year increase, and the Corporate Finance segment posted a 32% return on equity with non-performing loans holding under 1% of the $13.7 billion held-for-investment book.
Retail deposits grew to $143.6 billion, adding $408 million compared with a year ago; 92% of those deposits carried FDIC insurance. During the quarter Ally brought in 63,000 net new deposit customers, lifting its total deposit customer count to 3.6 million.
Ally's common equity tier 1 ratio came in at 10.1%, roughly 20 basis points stronger than a year prior, and the company bought back $148 million of its own shares while announcing a third-quarter common dividend of $0.30 per share.
Shares of Ally Financial slipped 1.19% in pre-market trading after the earnings release.
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