Ally Financial (ALLY) Q2 2025 earnings summary

Executive summary

• GAAP EPS rose 68% year over year to $1.04; adjusted EPS was $0.99, with core pre-tax income at $418M, and net income attributable to common shareholders at $324M, reflecting strong operational execution and double-digit growth.

• Net income from continuing operations was $352M for Q2 2025, up 61% year-over-year, while six-month net income was $127M, down 65% from the prior year due to one-time charges from the credit card sale and securities repositioning.

• Strategic focus on higher-yielding retail auto and corporate finance assets, digital banking, and disciplined capital allocation, including the sale of the credit card business, is driving improved financial performance.

• Customer-centric culture and brand strength are driving efficient acquisition, retention, and engagement, with retail deposit customer base growing for the 65th consecutive quarter.

• Record 3.9M consumer auto applications drove $11B in auto originations, with a 42% S-tier mix and 9.82% origination yield.

Financial highlights

• GAAP total net revenue was $2.08B, up 35% year over year; adjusted net revenue was $2.1B, flat year-over-year.

• Net financing revenue (ex-core OID) was ~$1.5B, flat year-over-year and sequentially, with NIM ex. OID at 3.45%, up 10 bps sequentially.

• Adjusted noninterest expense was $1.26B, down $58M sequentially and $24M year-over-year; adjusted efficiency ratio improved to 50.9%.

• Provision for credit losses was $384M, down $73M year-over-year, mainly due to the credit card sale and lower net charge-offs.

• Retail auto net charge-off rate was 1.75%, down 6 bps year over year; retail auto delinquencies 30+ days past due improved by 24 bps to 4.88%.

Outlook and guidance

• Full-year NIM (ex. OID) guidance maintained at 3.4%-3.5%, with a path to the upper half of the range.

• Retail auto net charge-off guidance narrowed to 2%-2.15%; consolidated NCO outlook is 1.35%-1.45%.

• Average earning assets expected to decline ~2% year-over-year due to lower commercial floor plan balances; deposit balances expected to remain relatively flat.

• Effective tax rate projected at 22%-23%.

• Management expects continued macroeconomic uncertainty, with elevated risks from tariffs, inflation, and geopolitical events.