Ally Financial Reports 106% Rise in Q2 Net Income

By Bobby Samwell • Wednesday, July 17 08:03 • Permanent Link

Ally Financial has released its financial results for the second quarter of 2024, revealing several key changes from the previous period.

In terms of net income attributable to common shareholders, the company reported a significant increase to $266 million, compared to $129 million in the first quarter of 2024 and $301 million in the second quarter of 2023. This represents a 106% increase from the previous quarter and a 12% decrease from the same period last year.

The GAAP earnings per common share also saw a substantial increase to $0.86, up from $0.42 in the first quarter of 2024, but down 13% from $0.99 in the second quarter of 2023. Adjusted EPS followed a similar pattern, reaching $0.97, compared to $0.45 in the previous quarter and $0.96 in the same period last year.

Return on common equity (ROE) showed strong improvement, with a 9.3% return in the second quarter of 2024, up from 4.5% in the first quarter of 2024 but down 14% from 10.8% in the second quarter of 2023. Core ROTCE also increased significantly to 14.0% in the second quarter of 2024, compared to 6.5% in the first quarter of 2024 and 13.9% in the second quarter of 2023.

Additionally, GAAP total net revenue for the second quarter of 2024 stood at $2.0 billion, a 1% increase from the first quarter of 2024, but a 4% decrease from the second quarter of 2023. Adjusted total net revenue also rose to $2.042 billion, up 3% from the previous quarter, but down 1% from the same period last year.

Ally Financial's performance in its various segments also showed noteworthy changes. Pre-tax income from continuing operations for automotive finance was $407 million, down $94 million year over year. Meanwhile, the insurance segment reported a pre-tax loss of $42 million, a $50 million unfavorable change from the previous year. Corporate finance saw a pre-tax income of $98 million, up $26 million from the same period last year, and mortgage finance reported a pre-tax income of $27 million, up $6 million year over year.

These figures demonstrate the significant shifts in Ally Financial's financial performance and key metrics compared to the previous quarter and the same period in the previous year. As a result of these announcements, the company's shares have moved 1.6% on the market, and are now trading at a price of $44.46. If you want to know more, read the company's complete 8-K report here.

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