Ally Financial (ALLY) investor relations material

Executive summary

• Adjusted EPS was $1.34, up 16% YoY; adjusted total net revenue was $2.346B, up $189M YoY, and core ROTCE was 13.1%.

• Growth in auto originations and deposits coincided with higher credit-loss provision, primarily from CECL reserve builds tied to asset growth.

Financial highlights

• GAAP net income attributable to common shareholders was $401M; core net income was $412M. GAAP EPS was $1.30 versus $1.18 YoY; adjusted EPS was $1.34 versus $1.15.

• GAAP net revenue was $2.332B; adjusted net revenue was $2.346B. Net financing revenue was $1.748B, up $164M YoY; adjusted other revenue was $579M, up $22M.

• Provision for credit losses was $529M, up $114M YoY; consolidated net charge-offs were $394M.

• Adjusted non-interest expense was $1.2B, relatively flat YoY; reported noninterest expense declined $4M to $1.236B. Adjusted efficiency ratio improved to 45.7% from 50.0%.

Outlook and guidance

• FY26 NIM excluding OID guidance was raised to 3.65%; Q4 NIM was expected at 3.7%, with confidence in achieving or exceeding annual targets.

• Adjusted other revenue growth guidance narrowed to 2%–4%; adjusted non-interest expense is expected flat to up 1%.

• Average earning asset growth guidance increased to 5%–6% YoY from 3%–5%; growth carries upfront CECL reserve builds.

• Retail Auto NCO guidance remained 1.8%–2.0%, tracking toward midpoint; consolidated NCO guidance remained 1.2%–1.3%, tracking toward the low end. FY tax guidance remained 20%–22%.

• Management expects 2027 NCOs to look similar to 2026; formal 2027 guidance will follow year-end review.