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Mar 31, 2025
Ally Q1 2025 Earnings Report
Ally reported a net loss driven by securities repositioning, but showed strong operational momentum in auto finance and deposits.
Key Takeaways
Ally Financial reported a $253 million net loss in Q1 2025 primarily due to a $495 million pre-tax loss from the sale of low-yielding securities. However, adjusted EPS of $0.58 and $2.07 billion in adjusted revenue reflected strong underlying performance, particularly in consumer auto originations and insurance premiums.
Revenue by Segment
Revenue by Geographic Location
Forward Guidance
Ally reiterated full-year guidance and emphasized a focus on capital preservation and core franchise performance.
Positive Outlook
- Retail deposit base continues to grow with 58k new customers.
- Strong originations in consumer auto finance with high credit quality.
- Successful sale of Ally Credit Card improves capital position.
- Insurance premiums hit a first-quarter record at $385M.
- Corporate Finance portfolio quality remains strong with low non-accruals.
Challenges Ahead
- $495M pre-tax loss from securities repositioning weighed on results.
- Retail auto earning assets declined year over year.
- Insurance segment impacted by elevated weather losses.
- Higher noninterest expenses due to card sale and weather events.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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