Ally Financial Q1 EPS Jumps 90% to $1.11 with $11.5B Auto Loan Originations
Ally Financial reported adjusted EPS of $1.11 in Q1, topping forecasts by $0.17 while revenue reached $2.1 billion, slightly below estimates. Net interest margin rose 17 basis points to 3.52% as the company originated $11.5 billion in auto loans and grew retail deposits to $146.1 billion.
1. Q1 Earnings and Revenue
Ally Financial delivered adjusted earnings per share of $1.11, beating estimates by $0.17 and marking a 90% increase from $0.58 a year ago. Total GAAP net income reached $291 million versus a loss of $253 million in the prior-year period, while revenue totaled $2.1 billion, just under the $2.14 billion forecast.
2. Margin Expansion and Financing Revenue
Net financing revenue climbed by $111 million year-over-year to $1.6 billion as net interest margin excluding core original issue discount expanded 17 basis points to 3.52%. This margin improvement reflects higher yields on lending products and effective funding cost management.
3. Auto Loans and Deposit Growth
The company originated $11.5 billion in consumer auto loans, a 13% year-over-year gain supported by a record 4.4 million applications. Retail deposits grew to $146.1 billion across 3.5 million customers, marking the 68th consecutive quarter of deposit growth.
4. Outlook and Guidance
Management forecast full-year net interest margin between 3.60% and 3.70%, signaling confidence in further margin expansion. This guidance builds on the strong start to 2026 and aims to sustain profitability amid competitive financing markets.