Ally Financial Stock Earnings Reports

Ally reported strong Q3 2025 results driven by its refreshed strategy and momentum across its three core franchises (Dealer Financial Services/Auto, Corporate Finance, and Digital Bank). Adjusted EPS rose 166% to $1.15; core ROTCE was 15% (about 12% excluding AOCI). Adjusted net revenue was $2.2 billion (up 3% YoY; +9% excluding the prior sale of the card business). NIM ex-OID expanded to 3.55% (up 10 bps Q/Q) and management narrowed full-year NIM guidance to 3.45–3.50%, expecting NIM to migrate into the upper 3% range over time. Credit continues to normalize: consolidated NCOs improved (retail auto NCO = 1.88%), 30+ delinquencies improved, and management now expects full-year retail auto NCOs around 2% and consolidated NCOs ~1.3%. CET1 was 10.1% (~$4.5B excess capital above SCD minimum); adjusted tangible book rose to $39. Ally executed a $5B retail auto CRT in August and will use CRT opportunistically while prioritizing organic capital growth. Expense discipline continues (flat expense outlook) and Ally rolled out an internal AI platform to 10,000 employees. Deposits remain the funding foundation (~90% of funding; 92% FDIC-insured). Management reiterated focus on growing higher-return portfolios (retail auto, corporate finance), staying disciplined on underwriting and servicing, and resuming buybacks only when capital metrics and organic generation allow. Primary risks noted: uncertain macro/employment trends and the timing/magnitude of Fed rate cuts which will influence near-term margin dynamics.