Ally Q2 2022 Earnings Report
Key Takeaways
Ally Financial reported GAAP earnings per share of $1.40 and adjusted EPS of $1.76. The company generated $2.08 billion in GAAP total net revenue and $2.22 billion in adjusted total net revenue. The company's net income attributable to common shareholders was $454 million.
Consumer auto originations of $13.3 billion, the highest quarterly originations since 2006.
Retail balances of $131.2 billion, down 4% quarter over quarter, up 1% year over year.
Ally Lending gross originations of $591 million, up 98% year over year.
Ally Credit Card balances of $1.2 billion, up 93% year over year.
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Ally Revenue by Segment
Forward Guidance
Ally remains focused on delivering long-term strategic priorities and adapting to changing conditions, while closely monitoring the economic environment and fine-tuning expense focus.
Positive Outlook
- Scale and ability to adapt to changing conditions allowed Ally to generate the strongest quarter of retail auto originations in sixteen years.
- Increasing expected risk-adjusted yields.
- Newer businesses like Ally Credit Card are steadily growing.
- Investments in underwriting and servicing operations provide confidence in performance.
- Recent CCAR results reaffirm strong capital position and resilient balance sheet.
Challenges Ahead
- Macro headwinds and market uncertainty.
- Potential for recessionary conditions.
- Fine-tuned expense focus.
- Cyclical businesses, like Ally Home.
- Closely monitoring changes in the environment and remain nimble.
Revenue & Expenses
Visualization of income flow from segment revenue to net income