Third Quarter 2026
Filed Oct 20, 2026Ally Financial Reports Third Quarter 2026 Financial Results
GAAP net income attributable to common shareholders rose to $401 million and GAAP EPS rose to $1.30, while GAAP total net revenue increased to $2,332 million. Higher provision for credit losses and weaker Automotive Finance pre-tax income were offset by growth in Insurance, Corporate Finance and Corporate and Other.
Key metrics
shortened, hover for the filing’s print| Metric | Value | q/q | y/y |
|---|---|---|---|
| GAAP Net Income (Loss) Attributable to Common ShareholdersGAAP | $401M | 9 % | 8 % |
| Core Net Income Attributable to Common Shareholdersnon-GAAP | $412M | 10 % | 14 % |
| GAAP Earnings per Common Share (basic or diluted as applicable)GAAP | $ 1.30 | 10 % | 10 % |
| Adjusted EPSnon-GAAP | $ 1.34 | 11 % | 16 % |
| Return on GAAP Shareholders’ EquityGAAP | 12.1 % | 10 % | 2 % |
| Core ROTCEnon-GAAP | 13.1 % | 11 % | 6 % |
| GAAP Common Shareholders’ Equity per ShareGAAP | $ 43.24 | (3 )% | 4 % |
| Adjusted Tangible Book Value per Sharenon-GAAP | $ 41.00 | (3 )% | 5 % |
| GAAP Total Net RevenueGAAP | $2.33B | 2 % | 8 % |
| Adjusted Total Net Revenuenon-GAAP | $2.35B | 3 % | 9 % |
| Net Financing RevenueGAAP | $1.75B | $ 64 | $ 164 |
| Net Financing Revenue (excluding Core OID)non-GAAP | $1.77B | $ 65 | $ 167 |
| Other RevenueGAAP | $584M | (18 ) | — |
| Adjusted Other Revenuenon-GAAP | $579M | 6 | 22 |
| Provision for Credit LossesGAAP | $529M | 99 | 114 |
| Noninterest ExpenseGAAP | $1.24B | (83 ) | (4 ) |
| Pre-Tax Income (loss)GAAP | $567M | $ 30 | $ 54 |
| Core Pre-Tax Incomenon-GAAP | $581M | $ 55 | $ 79 |
| Income Tax Expense (Benefit)GAAP | 134 | 7 | 19 |
| Net Income (Loss)GAAP | $433M | $ 23 | $ 35 |
| Preferred DividendsGAAP | 32 | (11 ) | 5 |
| Net interest marginother | 3.62% | – | up 11 bps year over year |
| Net interest margin excluding core OIDnon-GAAP | 3.66% | up 3 bps quarter over quarter | up 11 bps year over year |
| Adjusted Efficiency Rationon-GAAP | 45.7 % | – | – |
| Automotive Finance Pre-tax incomeother | $337M | $ (73 ) | $ (84 ) |
| Insurance Pre-tax incomeother | 80 | 27 | 1 |
| Dealer Financial Services Pre-tax incomeother | $417M | $ (46 ) | $ (83 ) |
| Corporate Finance Pre-tax incomeother | 98 | (24 ) | 3 |
| Corporate and Other Pre-tax incomeother | 52 | 100 | 134 |
| Retail auto net charge-off rateother | 1.89% | – | increased 1 bps year over year |
| Retail auto delinquencies 30+ days past due, inclusive of non-accrual loansother | 4.96% | – | increased 6 bps year over year |
| Common equity tier 1 capital ratioother | 10.2% | – | up 10 bps year over year |
Segments
| Segment | Revenue | q/q | y/y |
|---|---|---|---|
| Auto FinanceGrowth in retail and commercial auto assets. | Net financing revenue of $1.3 billion | – | up $15 million year over year |
| InsuranceIncreased dealer engagement and strong execution drove written premium growth. | Insurance Premiums, Service Revenue Earned and Other $ 369 | – | – |
| Corporate FinanceAsset growth drove higher net financing revenue. | Net financing revenue of $122 million | – | up $11 million year over year |
Capital returns
- Ally paid a $0.30 per share quarterly common dividend, which was unchanged year over year.
- Ally’s Board of Directors approved a $0.35 per share common dividend for the fourth quarter of 2026.
- Ally repurchased $178 million in shares during the quarter.
- Ally executed a $6 billion retail auto credit risk transfer during the quarter, generating approximately 25 bps of CETI at the time of issuance.
What drove it
- Consumer auto originations of $12.9 billion were up 10% year over year, including $8.2 billion of used retail volume, $4.2 billion of new retail volume, and $474 million of lease.
- Record 4.8 million consumer auto applications were up 20% year over year.
- Estimated retail auto originated yield was 9.44% and 44% of originations were in the highest credit quality tier.
- End-of-period auto earning assets of $125.6 billion increased $10.2 billion year over year.
- Written premiums of $388 million were up $3 million year over year.
- Insurance core pre-tax income of $75 million increased $23 million year over year, primarily driven by higher underwriting income.
- Corporate Finance held-for-investment loan portfolio was $15.8 billion and 100% first lien.
- Ally Bank added 59 thousand net new deposit customers in the quarter, totaling 3.6 million.
Concerns
- Provision for credit losses increased $114 million year over year to $529 million, primarily due to CECL reserve builds associated with asset growth.
- Automotive Finance pre-tax income of $337 million was down $84 million year over year, reflecting higher provision expense and higher noninterest expense.
- Retail auto delinquencies 30+ days past due, inclusive of non-accrual loans, increased 6 bps year over year to 4.96%.
- GAAP common shareholders’ equity per share declined (3 )% quarter over quarter to $ 43.24, while adjusted tangible book value per share declined (3 )% to $ 41.00.
- Retail deposits of $141.9 billion were down $1.6 billion quarter over quarter.
What to watch
- Whether consumer auto originations, application volume and end-of-period consumer auto earning assets continue to grow while retail auto credit performance remains controlled.
- The effect of CECL reserve builds associated with asset growth on provision for credit losses and Automotive Finance profitability.
- Net interest margin excluding core OID following the 3 bps quarter-over-quarter increase to 3.66%.
- Retail-deposit growth, the average retail deposit portfolio yield, and funding composition after retail deposits declined $1.6 billion quarter over quarter.
- Corporate Finance portfolio growth and credit quality, with criticized assets at 8% and non-accrual loans at less than 1%.
Balance sheet and cash flow
- Cash and cash equivalents totaled $7.5 billion.
- Highly liquid securities were $19.4 billion.
- Unused pledged borrowing capacity at the FHLB and FRB was $6.4 billion and $27.9 billion, respectively.
- Total current available liquidity was $61.2 billion, 5.2x uninsured deposit balances.
- Retail deposits were $141.9 billion, down $1.6 billion quarter over quarter and up $80 million year over year.
- Total deposits were $155.8 billion.
- Deposits represented 86% of Ally’s funding portfolio.
- Risk-weighted assets of $158.2 billion were up $1.3 billion quarter over quarter.
Analysis
Ally reported stronger third-quarter earnings and revenue. GAAP net income attributable to common shareholders was $401 million, compared with $371 million in the third quarter of 2025, and GAAP EPS was $1.30 versus $1.18. Adjusted EPS was $1.34, compared with $1.15. GAAP total net revenue rose to $2,332 million from $2,168 million, while adjusted total net revenue rose to $2,346 million from $2,157 million. Net financing revenue increased $164 million year over year to $1,748 million, and net interest margin excluding core OID was 3.66%, up 11 bps year over year and 3 bps quarter over quarter.
Growth in auto assets and originations supported revenue, but also increased credit costs. Consumer auto originations were $12.9 billion, up 10% year over year, with record 4.8 million applications, up 20% year over year. End-of-period auto earning assets increased $10.2 billion year over year to $125.6 billion. However, provision for credit losses increased $114 million year over year to $529 million, primarily due to CECL reserve builds associated with asset growth. Automotive Finance pre-tax income fell $84 million year over year to $337 million. Retail auto net charge-offs were 1.89%, up 1 bps year over year, and 30+ day delinquencies increased 6 bps to 4.96%.
Diversified businesses supported the consolidated result. Insurance pre-tax income was $80 million, up $1 million year over year, while core pre-tax income was $75 million, up $23 million, primarily driven by higher underwriting income. Written premiums increased to $388 million. Corporate Finance pre-tax income increased $3 million to $98 million as higher net revenue from asset growth partially offset higher provision expense. The held-for-investment loan portfolio was $15.8 billion, with criticized assets at 8% and non-accrual loans at less than 1%.
Expense and return metrics improved. Noninterest expense decreased $4 million year over year to $1,236 million, and the adjusted efficiency ratio was 45.7%, versus 50.0% in the third quarter of 2025. GAAP return on shareholders’ equity was 12.1%, compared with 11.9%, and core ROTCE was 13.1%, compared with 12.3%. Capital actions included $178 million of share repurchases, a paid quarterly common dividend of $0.30 per share, and an approved fourth-quarter common dividend of $0.35 per share. CETI was 10.2%.
Funding remained deposit-led, with deposits representing 86% of the funding portfolio and total current available liquidity of $61.2 billion. Retail deposits totaled $141.9 billion, up $80 million year over year but down $1.6 billion quarter over quarter. The average retail deposit portfolio yield was 3.05%, down 43 bps year over year and 7 bps quarter over quarter. The release did not provide quantitative forward earnings, revenue, margin, expense, credit, or capital guidance.
Management, verbatim
“Third quarter results provide another clear signal that our focused strategy is delivering results,”
Michael Rhodes, Chief Executive Officer
“We are growing our core franchises, improving returns, maintaining risk discipline, and demonstrating our ability to both strengthen capital and return it to shareholders.
Michael Rhodes, Chief Executive Officer
“We remain confident in our ability to capitalize on the opportunities ahead and create long-term value for shareholders.”
Michael Rhodes, Chief Executive Officer
Not in the filing
stated, not guessed- Quantitative forward guidance was not provided in the filing.
- Previous-period outlook was not provided, so comparisons with prior guidance are unavailable.
- Gross margin was not reported.
- Operating income was not reported.
- Operating cash flow was not reported.
- Free cash flow was not reported.
- Total debt was not reported.
- A total debt-to-equity or leverage metric was not reported.
- Segment revenue for Dealer Financial Services and Corporate and Other was not reported.
- A quarter-over-quarter comparison for net interest margin was not reported.
- Prior-year and prior-quarter figures for retail auto net charge-off rate and retail auto delinquencies were not printed on their respective metric rows.
- A quantitative customer retention rate was not reported.
Written by an AI language model from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure was checked against the filing text, and a metric whose value, prior period and change do not add up is dropped from the metrics. The model can still misread a table, in the metrics or in the text, so check a number in the filing before you rely on it. Consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.