Ally Financial reported fourth-quarter earnings of $1.09 per share, exceeding the Zacks Consensus Estimate of $1.01 and up from $0.78 a year ago. Total revenues increased 7% year-over-year to $2.4 billion, driven by growth in both auto finance and corporate finance segments. Net interest margin expanded to 3.48%, while credit provisions declined by 15% to $180 million. Operating expenses fell 4% year-over-year, reflecting ongoing expense discipline and efficiency initiatives.

Loan originations rose 5% from the prior year, with total loans held for investment reaching $120 billion. Retail deposit balances expanded 6% to $85 billion, supported by digital channel growth and promotional savings products. Despite the challenging rate environment, Ally reported stable credit quality metrics: the net charge-off ratio remained unchanged at 0.40% of average loans, and nonperforming assets were flat at 0.35% of total assets.

Management authorized a $2 billion common stock buyback program and declared a quarterly dividend of $0.20 per share, representing a 15% increase over the prior year. Pro forma common equity Tier 1 (CET1) capital stood at 8.3% after the buyback authorization, providing sufficient buffer above regulatory minimums. The board indicated that future capital returns will be guided by earnings growth, balance sheet targets and macroeconomic conditions.