Ally Financial Inc. reported a 9% year-over-year increase in third-quarter net income to $433 million, while a larger credit-loss provision and lower Automotive Finance pretax earnings showed the pressure alongside growth.
Net income had been $398 million in the year-earlier quarter. Ally furnished the results as exhibits to a Form 8-K filed with the Securities and Exchange Commission on Oct. 20. The provision for credit losses reached $529 million, up from $415 million a year earlier. Ally attributed most of the increase to reserve additions associated with asset growth.
Net income attributable to common shareholders totaled $401 million, compared with $371 million a year earlier. GAAP earnings per share rose to $1.30 from $1.18, while adjusted earnings per share, a non-GAAP measure, increased to $1.34 from $1.15.
Total net revenue grew 8% to $2.332 billion. Net financing revenue advanced by $164 million to $1.748 billion, while other revenue was unchanged at $584 million. Noninterest expenses declined by $4 million to $1.236 billion.
Automotive Finance pretax income declined $84 million to $337 million. Ally attributed the drop to greater credit provisions and operating expenses, partly offset by revenue growth. Consumer auto originations grew 10% to $12.9 billion. The retail auto net charge-off rate was 1.89%, up one basis point from a year earlier. Retail auto loans 30 or more days past due, including non-accrual loans, stood at 4.96%, up six basis points.
Ally repurchased $178 million in shares during the quarter and declared a $0.35-per-share common dividend for the fourth quarter. The payment is about 17% above the previous $0.30 rate, which remained unchanged from 2022 through July 2026. EconoTimes previously covered Ally’s higher common dividend. The dividend is payable to shareholders of record on Nov. 2, with payment scheduled for Nov. 16.
