Used Makes up More Than Half of Ally’s Originations Featured

By Staff Writer April 26, 2019 486

Ally Financial Inc. reported pre-tax income of $329 million for auto finance in the first quarter.

This was a $61 million increase from the first quarter of 2018. Results reflect higher net financing revenue and higher other revenue partially offset by higher noninterest expense and modestly higher provision for loan losses.

Net financing revenue was $71 million higher year-over-year primarily due to higher retail auto and commercial auto yields and higher retail auto balances.

Retail auto portfolio yield increased year-over-year to 6.47 percent while commercial auto portfolio yield increased year-over-year to 4.8 percent.

Provision for loan losses was $3 million higher year-over-year driven by a higher reserve release in the prior year period more than offsetting lower retail auto net charge-offs. The retail auto net charge-off rate declined year-over-year to 1.32 percent.

Consumer auto originations were down $0.3 billion year-over-year at $9.2 billion.

This included $5.2 billion of used retail volume, which made up 56 percent of total originations.

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Last modified on Monday, 06 May 2019 15:36