Ally Financial posts $1.30 GAAP EPS and $567 million pre-tax income for Q3 2026

Ally Financial reported third quarter 2026 financial results with GAAP earnings per share of $1.30, up 10% year over year, and GAAP pre-tax income of $567 million, an increase of 11% compared to the same period last year. The company also announced a fourth quarter 2026 common dividend of $0.35 per share and executed $178 million in share repurchases during the quarter.

GAAP total net revenue reached $2.3 billion, while adjusted total net revenue came in at $2.3 billion. Return on common equity stood at 12.1%, up 20 basis points year over year, and core return on tangible common equity was 13.1%, up 80 basis points year over year. Net income attributable to common shareholders was $401 million, compared to $371 million in the third quarter of 2025.

In its auto lending segment, Ally recorded $12.9 billion in consumer auto originations, a 10% increase year over year. The company noted a record 4.8 million consumer auto applications, up 20% year over year. The estimated retail auto originated yield was 9.44%, with 44% of volume within the highest credit quality tier. Retail auto net charge-offs were 189 basis points, up one basis point year over year.

Insurance written premiums totaled $388 million, up 1% year over year. CEO Michael Rhodes stated that insurance delivered a 36% return on equity while continuing to grow written premiums. The Corporate Finance held-for-investment portfolio stood at $15.8 billion with non-performing loans at less than 1%. Rhodes noted that Corporate Finance generated a 22% return on equity while growing the portfolio.

Ally Bank reported $142 billion in retail deposits, with 92% FDIC insured and 86% core deposit funded. The company cited 70 consecutive quarters of retail deposit customer growth, serving 3.6 million customers. Rhodes added that the bank introduced "Loyally," a fee-free rewards experience, last month to complement its value proposition.

Net financing revenue was $1.7 billion, up $164 million year over year. The net interest margin excluding core OID was 3.66%, up three basis points quarter over quarter and up 11 basis points year over year. Other revenue was flat year over year at $584 million. Adjusted other revenue increased $22 million year over year to $579 million.

The provision for credit losses rose to $529 million in the quarter, a year-over-year increase of $114 million driven by CECL reserve builds tied to asset growth. Noninterest expense decreased $4 million year over year. The common equity tier 1 ratio was 10.2%, up 10 basis points year over year.