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Jun 30, 2023

Ally Q2 2023 Earnings Report

Ally's second quarter results demonstrated strength and resilience amidst a dynamic operating environment.

Key Takeaways

Ally Financial reported a net income attributable to common shareholders of $301 million, with a GAAP EPS of $0.99 and an adjusted EPS of $0.96. The company maintained strong liquidity and capital levels, with retail deposit balances increasing. Growth was driven by $10.4 billion in consumer auto originations.

Maintained strong levels of liquidity and capital in a dynamic environment.

Retail deposit balances up $0.5 billion QoQ; FDIC insured balances up $1.3 billion QoQ and represent 92% of portfolio.

Generated $10.4 billion of origination volume driven by 3.5 million consumer auto applications.

Insurance written premiums of $299 million.

Total Revenue
$2.07B
Previous year: $2.22B
-7.0%
EPS
$0.96
Previous year: $1.76
-45.5%
Net Interest Margin
3.38%
Previous year: 4.04%
-16.3%
Retail Auto Net Charge-Offs
1.32%
Previous year: 0.54%
+144.4%
Auto Originations
$10.4B
Previous year: $13.3B
-21.8%
Gross Profit
$1.85B
Previous year: $1.25B
+48.6%
Cash and Equivalents
$9.5B
Previous year: $3.7B
+156.8%
Total Assets
$159B
Previous year: $186B
-14.3%

Ally

Ally

Ally Revenue by Segment

Forward Guidance

Ally is cognizant of the near-term pressure the current environment presents and will remain focused on driving long-term value for all stakeholders.

Positive Outlook

  • Disciplined capital deployment
  • Maintaining strong levels of liquidity
  • Robust interest rate risk management
  • Credit risk management
  • Strategic priorities

Challenges Ahead

  • Near-term pressure the current environment presents.
  • Evolving backdrop
  • Potential changes to the regulatory framework across the industry.
  • Higher funding costs
  • Credit normalizes off of historical lows as well as a modest reserve build to reflect the evolving macro environment.

Revenue & Expenses

Visualization of income flow from segment revenue to net income