The earnings call presented a mix of strong performance in core segments and insurance premiums, along with challenges in managing credit costs and maintaining net interest margin. While there are positive trends in growth areas like EV leasing, the company faces near-term challenges with charge-offs and credit quality.

Company Guidance

In the third quarter of 2024, Ally Financial reported an adjusted EPS of $0.95, bolstered by significant tax credits from EV lease volumes, yet the core pretax income stood at $108 million, indicating potential for improvement. The company saw a strong Auto origination yield of 10.5% with $9.4 billion in consumer volume, and insurance written premiums reached a quarterly record of $384 million. Retail deposits were $141 billion, with a 92% FDIC insurance rate, serving 3.3 million customers. Despite challenges from interest rate volatility and consumer inflation, Ally projects a medium-term NIM target of 4%, expecting margin expansion as Fed funds rates potentially decrease. The retail auto net charge-off rate was 224 basis points, and consolidated net charge-offs were 150 basis points, with a total loss rate guidance of 2.25% to 2.3% for retail auto. The company remains focused on capital management, targeting a CET1 ratio above the 9.8% mark reported, and anticipates a mid-teens return over time by managing expenses and optimizing risk-adjusted returns.

Strong Performance in Core Segments

Dealer Financial Services, Ally Bank, and Corporate Finance continue to show strong growth. Corporate Finance is on pace for its highest annual earnings ever.

Record Insurance Premiums

Insurance written premiums reached $384 million, a quarterly record since IPO, highlighting strong performance in F&I and P&C products.

Growth in Retail Deposits

Retail deposits of $141 billion are 92% FDIC insured, with a growth of 57,000 new accounts within the quarter.

EV Lease Originations

Momentum in EV lease originations drove $179 million in EV tax credits, contributing to a negative tax rate in the quarter.

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Ally Financial (ALLY) Earnings, Revenues Date & History

The upcoming earnings date is based on a company’s previous reporting, and may be updated when the actual date is announced

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ALLY Earnings History

Report Date	Fiscal Quarter	Forecast / EPS	Last Year's EPS	EPS YoY Change	Slides	Play Transcript
Jan 22, 2025	2024 (Q4)	0.59 / -	0.45	―	―	―
Oct 18, 2024	2024 (Q3)	0.52 / 0.95	0.83	14.46% (+0.12)
Jul 17, 2024	2024 (Q2)	0.64 / 0.97	0.96	1.04% (+0.01)
Apr 18, 2024	2024 (Q1)	0.32 / 0.45	0.82	-45.12% (-0.37)
Jan 19, 2024	2023 (Q4)	0.44 / 0.45	1.08	-58.33% (-0.63)
Oct 18, 2023	2023 (Q3)	0.80 / 0.83	1.12	-25.89% (-0.29)
Jul 19, 2023	2023 (Q2)	0.94 / 0.96	1.76	-45.45% (-0.80)
Apr 19, 2023	2023 (Q1)	0.86 / 0.82	2.03	-59.61% (-1.21)
Jan 20, 2023	2022 (Q4)	0.97 / 1.08	2.02	-46.53% (-0.94)
Oct 19, 2022	2022 (Q3)	1.69 / 1.12	2.16	-48.15% (-1.04)

The table shows recent earnings report dates and whether the forecast was beat or missed. See the change in forecast and EPS from the previous year.

Beat

Missed

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ALLY Earnings-Related Price Changes

Report Date	Price 1 Day Before	Price 1 Day After	Percentage Change
Oct 18, 2024	$35.53	$34.71	-2.31%
Jul 17, 2024	$43.78	$42.77	-2.31%
Apr 18, 2024	$35.45	$37.83	+6.71%
Jan 19, 2024	$31.15	$34.48	+10.69%

Earnings announcements can affect a stock’s price. This table shows the stock's price the day before and the day after recent earnings reports, including the percentage change.

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