Ally Financial Reports Second Quarter 2025 Financial Results

Ally Financial Inc., a leading financial services company, has released its financial results for the second quarter of 2025. The report highlights significant improvements in key financial metrics, operational achievements, and strategic initiatives that underscore the company's robust performance and strategic positioning.

Financial Highlights

Ally Financial reported a GAAP EPS of $1.04 and an adjusted EPS of $0.99, reflecting year-over-year increases of 68% and 36%, respectively. The company's pre-tax income rose to $436 million, up $157 million from the previous year, while core pre-tax income increased by $96 million to $418 million. Total net revenue stood at $2.1 billion, consistent with the previous year.

Business and Operational Highlights

In the second quarter, Ally Financial achieved $11.0 billion in consumer auto originations, sourced from a record 3.9 million consumer auto applications. The retail auto originated yield was 9.82%, with 42% of the volume within the highest credit quality tier. Additionally, the company reported insurance written premiums of $349 million, up 2% year over year.

Ally Bank's retail deposits reached $143 billion, with 92% FDIC insured and 88% core deposit funded. The bank also marked its 65th consecutive quarter of retail deposit customer growth, now serving 3.4 million customers.

Strategic Initiatives and Corporate Developments

During the quarter, Ally Financial closed the sale of its Credit Card business on April 1, generating 40 basis points of CET1 capital. The company maintained a common equity tier 1 ratio of 9.9%, up 38 basis points quarter over quarter. Ally also paid a $0.30 per share quarterly common dividend and announced the approval of the same dividend for the third quarter of 2025.

Management's Perspective

CEO Michael Rhodes expressed optimism about the company's progress, highlighting the strong performance across various business segments. He emphasized the disciplined execution and strategic positioning that have contributed to the company's improving financial trajectory. Rhodes also noted the significant growth in the Dealer Financial Services and Corporate Finance segments, as well as the continued expansion of Ally Bank's customer base.

Future Outlook

Looking ahead, Ally Financial remains focused on disciplined execution to deliver strong results and generate compelling returns over time. The company is well-positioned to navigate the macroeconomic environment, leveraging its market-leading franchises, powerful brand, and unique culture.

SEC Filing: Ally Financial Inc. [ ALLY ] - 8-K - Jul. 18, 2025