Ally Sees Strong Used Results

By Staff Writer October 26, 2018

Ally Financial Inc. reported auto finance income of $383 million, up $83 million from the third quarter of 2017.

Results reflect a lower provision for loan losses and higher net financing revenue, partially offset by slightly higher noninterest expense and lower other revenue.

Net financing revenue was $6 million higher year-over-year as higher retail and commercial auto yields and higher retail auto balances more than offset declines in lease portfolio balance, yield and gains. Retail auto portfolio yield increased year-over-year to 6.2 percent while commercial auto portfolio yield increased year-over-year to 4.4 percent.

Provision for loan losses was $83 million lower year-over-year, driven by lower hurricane-related expenses, as well as 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 flat year-over-year at $8.1 billion, which included $4.3 billion of used retail volume, $2.9 billion of new retail volume, and $1 billion of leases.

Last modified on Friday, 26 October 2018 12:54

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