Used Finance Tops New for Ally Featured

By Staff Writer July 26, 2018

Ally Financial Inc. reported the largest year-over-year decline in its retail auto net charge-offs since its IPO in 2014.

The retail auto net charge-off rate declined to 1.04 percent in the second quarter.

Pre-tax auto income of $382 million was $35 million higher year-over-year. Results reflect lower provision for loan losses, partially offset by higher noninterest expense and lower total net revenue, driven largely by lower other revenue due to loan sale activity in the prior year period.

Net financing revenue was $7 million lower year-over-year due to lease portfolio normalization, partially offset by higher retail auto yields and portfolio balances. Retail auto portfolio yield increased year-over-year to 6.08 percent.

Provision for loan losses was $96 million lower year-over-year, driven by reserve release and a lower retail auto net charge-off rate.

Consumer auto originations of $9.6 billion in the quarter included $4.9 billion of used retail volume, $3.4 billion of new retail volume, and $1.2 billion of leases. Total consumer auto originations were up $1 billion year-over-year.

End of period auto earning assets decreased $0.5 billion year-over-year to $114.8 billion as growth in the retail auto portfolio was slightly outpaced by declines in operating lease assets and lower floor plan balances.

Commercial earning assets of $35.6 billion were $3.2 billion lower year-over-year primarily due to lower dealer inventory levels.

Last modified on Thursday, 26 July 2018 23:33

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