Ally Financial Inc. (NYSE:ALLY) saw its stock rise 2.70% in pre-market trading on Friday after the company posted third-quarter 2025 earnings that surged from a year earlier and exceeded analyst expectations on both the top and bottom lines.
The digital bank reported adjusted earnings of $1.15 per share, well above the consensus estimate of $1.00. Revenue came in at $2.17 billion, surpassing expectations of $2.12 billion. Adjusted earnings more than doubled from $0.43 in the same quarter last year, while revenue rose 3% year over year from $2.09 billion.
“This quarter’s results represent another clear proof point of our continued progress toward improved returns,” said CEO Michael Rhodes. “Across each of our core businesses, we are seeing the benefits of sharper strategic alignment and disciplined execution.”
Ally’s auto finance division — a key growth engine — reported $11.7 billion in consumer originations, a 25% increase year over year, supported by a record 4 million consumer applications. The retail auto originated yield reached 9.72%, with 42% of volume coming from the highest credit tier. Net charge-offs improved to 1.88%, 36 basis points lower than a year ago.
The company maintained its leadership as the largest all-digital bank in the U.S., growing its customer base for the 66th consecutive quarter to 3.4 million deposit customers. Retail deposits totaled $142 billion at quarter-end, with 92% covered by FDIC insurance.
Ally’s Corporate Finance segment delivered a 30% return on equity for the quarter, with criticized assets and non-accrual loans remaining near historic lows, underscoring disciplined risk management.
The bank’s Common Equity Tier 1 capital ratio rose to 10.1%, up roughly 20 basis points from the previous quarter. Additionally, Ally completed a $5 billion credit risk transfer at what it described as “the tightest spread in program history,” generating around 20 basis points of CET1 at issuance.
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