Ally Financial Inc. has reported its financial results for the second quarter of 2024, revealing some key changes compared to the previous period.
In terms of net income attributable to common shareholders, the company saw a significant increase from $129 million in the first quarter of 2024 to $266 million in the second quarter, representing a 106% increase. However, this was still lower than the $301 million reported in the second quarter of 2023, showing a decrease of 12%.
The GAAP earnings per common share also saw a substantial increase from $0.42 in the first quarter of 2024 to $0.86 in the second quarter, marking a 105% increase. Similarly, the adjusted EPS rose from $0.45 in the first quarter to $0.97 in the second quarter, reflecting a 115% increase.
Return on common equity (ROE) showed an increase from 4.5% in the first quarter to 9.3% in the second quarter, demonstrating a significant improvement. However, this was still lower than the 10.8% reported in the second quarter of 2023, representing a 14% decrease.
The company's pre-tax income also exhibited noteworthy changes, with a rise from $171 million in the first quarter to $257 million in the second quarter, reflecting a 50% increase. Yet, this was notably lower than the $403 million reported in the second quarter of 2023, representing a decrease of 36%.
Furthermore, the GAAP total net revenue increased from $1.986 billion in the first quarter to $2.0 billion in the second quarter, marking a 1% rise. However, this was still lower than the $2.079 billion reported in the second quarter of 2023, showing a 4% decrease.
Additionally, the company reported a strong quarter-over-quarter improvement in net interest margin and earnings following a trough in the first quarter of 2024. Notably, the common equity tier 1 ratio increased by 18 basis points quarter over quarter, reaching 9.6%.
In the automotive finance segment, the pre-tax income was down $94 million year over year, primarily driven by higher net charge-offs and noninterest expense. The net financing revenue decreased by $78 million year over year to $1.5 billion, primarily due to higher funding costs.
In contrast, the insurance segment reported a pre-tax loss of $42 million, which was $50 million unfavorable year over year, reflecting a decrease in the change in fair value of equity securities.
The market has reacted to these announcements by moving the company's shares 0.0% to a price of $41.86. If you want to know more, read the company's complete 8-K report here.
