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Ally Financial's Q1 Net Income Jumps to $291M

Ally Financial said first-quarter 2026 net income attributable to common shareholders was $291 million, reversing a $253 million loss a year earlier and slipping 3% from $300 million in the fourth quarter of 2025. Earnings per share came in at $0.93, down from $0.95 in the prior quarter but up from a loss of $0.82 a year ago. Adjusted EPS was $1.11, compared with $1.09 in the fourth quarter and $0.58 in the first quarter of 2025.

Pre-tax income rose to $400 million from a $284 million loss a year ago and was up $14 million sequentially. Core pre-tax income increased to $470 million from $247 million in the prior-year quarter and $461 million in the fourth quarter. Return on common equity was 8.8%, versus 9.2% in the prior quarter and negative 8.6% a year ago. Core ROTCE was 11.1%, flat from the fourth quarter and up from 6.7% in the first quarter of 2025.

Total net revenue was $2.102 billion, down 1% from $2.123 billion in the fourth quarter but up 36% from $1.541 billion a year earlier. Adjusted total net revenue was $2.179 billion, up from $2.165 billion in the prior quarter and $2.065 billion a year ago.

Net financing revenue was $1.589 billion, down $9 million sequentially but up $111 million year over year. Net interest margin was 3.48%, while net interest margin excluding core OID was 3.52%, up 1 basis point from the prior quarter and 17 basis points from a year earlier.

Other revenue was $513 million, down $12 million from the fourth quarter but up $450 million from the first quarter of 2025. Adjusted other revenue was $572 million, up $22 million sequentially and essentially flat year over year. Provision for credit losses was $467 million, down $20 million from the prior quarter but up $276 million from a year ago. Noninterest expense was $1.235 billion, down $15 million sequentially and down $399 million year over year.

The company ended the quarter with a common equity tier 1 ratio of 10.1%, about 60 basis points higher than a year earlier, and repurchased $147 million of stock during the quarter.

In dealer financial services, pre-tax income was $364 million, down from $463 million in the fourth quarter and $377 million a year ago. Automotive finance pre-tax income was $336 million, down $36 million sequentially and $39 million year over year. Insurance pre-tax income was $28 million, down from $91 million in the fourth quarter but up from $2 million a year ago. Corporate finance pre-tax income was $94 million, down $4 million sequentially but up $18 million from the prior-year quarter.

Ally originated $11.5 billion of consumer auto loans from a record 4.4 million applications. Retail auto originated yield was 9.60%, with 41% of originations in the highest credit quality tier. Retail auto net charge-offs were 197 basis points, down 15 basis points year over year.

Retail deposits totaled $146 billion, with 3.5 million customers, after 68 straight quarters of customer growth. The market has reacted to these announcements by moving the company's shares -0.23% to a price of $39.14. If you want to know more, read the company's complete 8-K report here.

The above analysis is intended for educational purposes only and was performed on the basis of publicly available data. It is not to be construed as a recommendation to buy or sell any security. Any buy, sell, or other recommendations mentioned in the article are direct quotations of consensus recommendations from the analysts covering the stock, and do not represent the opinions of Market Inference or its writers. Past performance, accounting data, and inferences about market position and corporate valuation are not reliable indicators of future price movements. Market Inference does not provide financial advice. Investors should conduct their own review and analysis of any company of interest before making an investment decision.

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