Ally Financial reported fourth-quarter earnings of $1.09 per share, exceeding the consensus estimate of $1.01 and up from $0.78 a year earlier. Total revenues grew 7% year-over-year to $1.8 billion, driven by strength in its auto finance and insurance segments. Non-interest expenses declined by 5% compared with Q4 2024 as the company continued cost-management initiatives, helping lift the efficiency ratio to 60.5%.

Net interest margin expanded to 3.48%, up 15 basis points sequentially, reflecting higher yields on new auto loans and a more favorable funding mix. Provision for credit losses fell by 20% year-over-year to $150 million, as loan performance remained strong. Total loan balances increased by 4% to $180 billion, while core deposits rose 6% to $100 billion, reducing reliance on wholesale funding and bolstering liquidity ratios.

Management authorized a $2.0 billion share repurchase program, representing roughly 8% of tangible common equity, and raised the quarterly dividend by 10%. Adjusted common equity Tier 1 (CET1) capital stood at 8.3% pro forma after the buyback authorization, slightly above regulatory minimums but below peer averages. The board emphasized that capital returns will be balanced against continued investment in digital banking capabilities and deleveraging of higher-risk corporate finance exposures.