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- **EPS Soars 166%**: Adjusted EPS of $1.15 reflects strong recovery in core franchises.
- **NIM Expansion**: Net interest margin at 3.55%, targeting 3.45%-3.55% for Q4 amid Fed rate cuts.
- **Credit Strength**: Retail auto NCO rate down 36bps YoY, delinquency rates improving despite macro challenges.
- **Digital Growth**: Digital bank deposits hit $142B, reinforcing Ally's position as U.S.'s largest all-digital bank.
- **Capital Flexibility**: $4.5B excess CET1 supports future buybacks and strategic initiatives.

**【CEO Summary Section】**
- **Strategic Momentum**: CEO highlights sustained improvement across core franchises, driven by a refreshed strategy and disciplined execution. Adjusted EPS rose 166% YoY to $1.15, with Core ROTCE at 15%.
- **Franchise Growth**: Dealer Financial Services saw consumer originations of $11.7B (25% YoY), fueled by 4M applications. Corporate Finance delivered 30% ROE, while the digital bank reached $142B in deposits.
- **AI and Culture**: Rolled out Ally.ai to 10,000 employees, emphasizing efficiency and decision-making. Recognized for workplace culture, including first-ever American Banker award for women in banking.

**【CFO Financial Commentary】**
- **Financial Performance**: Net revenue $2.2B (3% YoY), NIM 3.55% (10bps QoQ expansion). Expense control maintained, with controllable costs flat YoY.
- **Credit Health**: Retail auto NCO rate down 36bps YoY to 1.88%, delinquency rates improving. CET1 ratio 10.1%, with $4.5B excess capital.
- **Outlook**: NIM target 3.45%-3.55% for Q4, NCOs expected near 2% YoY. Focus on accretive growth in auto and corporate finance.

**【Q&A Highlights】**
- **Credit Resilience**: Despite industry concerns, Ally's credit metrics show strength, with lower-tier loans performing better than expected.
- **NIM Dynamics**: Anticipate modest expansion as Fed cuts rates, with historical beta patterns guiding expectations.
- **Application Growth**: Record application volume (4M Q3) allows selective underwriting, maintaining risk discipline.
- **Capital Return**: Share buybacks contingent on CET1 progression, with CRT transactions supporting capital flexibility.
- **Future Focus**: Organic growth in core franchises, with no plans for new business lines beyond strategic adjacencies.

Ally Financial Inc. (ALLY) Q3 2025 Earnings Call Transcript

Revenue

Sales and Services Revenue

Financing Services Revenue

Other Revenue

Cost of Revenue

Cost of Goods and Services

Cost of Financing Services

Other Cost

Gross Profit

Other Operating Income

Operating Expenses

Selling, General and Administrative Expenses

Selling and Marketing Expenses

General and Administrative Expenses

Research and Development Expenses

Loss on Bad Debts

Loss on Impairment of Other Assets

Loss on Disposal of Assets

Other Operating Expenses

Operating Income

Non-Operating Income (Loss)

Income (Loss) from Affiliates

Income (Loss) from Associates

Income (Loss) from Joint ventures

Gain (Loss) on Other Investment

Gain (Loss) on Change in Fair Value

Gain (Loss) on Foreign Currency Exchange

Other Non-Operating Income (Loss)

Net Interest Expense

Interest Expense

Interest Income

Pretax Income From Continuing Operations

Income Tax Expense

Current Income Tax

Deferred Income Tax

Income Tax Adjustments

Net Income from Continuing Operations

Income from Discontinued Operations

Other Items Before Net Income

Net Income

Net Income Attributable to Minority Interests

Net Income Attributable to Owners of the Company

Preferred Stock Dividends

Other Adjustments

Net Income Attributable to Common Stockholders

Other Comprehensive Income

Total Comprehensive Income

Total Comprehensive Income Attributable to Minority Interests

Total Comprehensive Income Attributable to Owners of the Company

Basic EPS

Basic EPS from Continuing Operations

Basic EPS from Discontinued Operations

Diluted EPS

Diluted EPS from Continuing Operations

Diluted EPS from Discontinued Operations

ALLY

ALLY fundamentals

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