Ally Financial reported fourth‐quarter EPS of $1.09, surpassing the consensus estimate of $1.01 and up from $0.78 a year earlier. Total revenues climbed 8% year-over-year, driven by a 7% increase in net interest income as loan yields benefited from a higher rate environment. Provision for credit losses declined to $94 million, down from $162 million in Q4 2024, reflecting both improved portfolio performance and lower seasoning charges. Noninterest expenses were trimmed by 4%, supporting a pre-tax margin expansion of 120 basis points.

At quarter end, total loan balances reached $147 billion, a 6% increase versus December 2024, led by growth in auto finance receivables. Deposits rose 9% to $155 billion, bolstered by customer inflows into digital savings and money market accounts. Net interest margin improved to 3.48%, up 25 basis points sequentially. Asset quality held up, with net charge-off ratio at 0.42% of average loans and nonperforming assets stable at 0.76% of total loans.

Management authorized a $2 billion accelerated share repurchase program, complementing quarterly dividends of $0.20 per share. Pro forma Common Equity Tier 1 capital stood at 8.3%, providing a buffer above regulatory minimums and supporting ongoing capital deployment. The firm reiterated its strategy to prioritize core auto-lending, maintain a CET1 ratio above 8%, and target mid‐single-digit revenue growth in 2026 while preserving credit discipline.