The lender reported $367 million net income but missed analyst EPS forecasts despite revenue growth and margin expansion.
Ally Financial posted second-quarter adjusted earnings per share of $1.21, below the $1.23 consensus estimate. Net income attributable to shareholders rose 13% year-over-year to $367 million, while adjusted EPS climbed 22% from the prior-year period.
Total net revenue increased 10% to $2.3 billion, driven by a $168 million rise in net financing revenue to $1.7 billion. Net interest margin, excluding core original issue discount, widened 18 basis points to 3.63%. The credit-loss provision reached $430 million, up $46 million from a year earlier.
Consumer auto originations hit $13.3 billion, supported by a record 4.6 million applications, while retail net charge-offs declined 18 basis points to 1.57%. Noninterest expense rose $57 million year-over-year.