Ally Reports Year-over-Year Growth Featured

By Staff Writer February 01, 2019 641

Ally Financial Inc. reported pre-tax income for its auto business was $50 million higher in the fourth quarter than in the fourth quarter of 2017.

Ally reported $335 million in pre-tax income as higher net financing revenue and lower provision for loan losses more than offset higher noninterest expense. Quarter-over-quarter results were impacted by seasonally higher provision for loan losses, higher noninterest expense and lower other revenue, primarily due to higher gains on loan sales in the third quarter, partially offset by higher net financing revenue.

Net financing revenue was $40 million higher year-over-year as higher retail and commercial yields and balances more than offset declines in lease portfolio balance and gains. Provision for loan losses was $26 million lower year-over-year at $262 million, driven primarily by lower retail auto net charge-offs.

Provision for loan losses was higher quarter-over-quarter due to seasonally higher retail auto net charge-offs. Consumer auto originations were $8.2 billion in the fourth quarter, down $0.9 billion versus the prior year period.

Fourth quarter originations included $4.3 billion of used retail volume, or 52 percent of total originations, $3.1 billion of new retail volume and $0.8 billion of leases.

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Last modified on Friday, 01 February 2019 00:57