Ally Financial Q3 adjusted revenue beats estimates
ALLY•Ally Financial’s third-quarter adjusted revenue was $2.35 billion, beating the $2.30 billion analyst estimate, while adjusted EPS of $1.34 matched expectations. Its provision for credit losses rose $114 million year over year to $529 million.
1. Revenue and earnings
Ally Financial reported third-quarter adjusted revenue of $2.35 billion, above the $2.30 billion analyst estimate. Adjusted EPS was $1.34, in line with expectations, and the company reported a 10.20% CET1 capital ratio.
2. Credit loss provision
The provision for credit losses increased $114 million year over year to $529 million, primarily due to CECL reserve builds tied to asset growth. Auto Finance net financing revenue rose $15 million to $1.3 billion, driven by growth in retail and commercial auto assets.
3. Insurance income
Insurance core pre-tax income rose $23 million year over year to $75 million, primarily driven by higher underwriting income. The company did not provide specific financial guidance for upcoming quarters or the full year in its press release.
