In Q4 FY24, Ally Financial emphasized strategic simplifications, including the divestiture of its credit card business and cessation of new mortgage originations. This focus on core operations drove growth in core pre-tax income and efficiency improvements.
đź“Š Income Statement Highlights (vs. Q4 FY23):
▫️Net Income: $108M vs. $62M (+74.19%)
▫️Total Revenue: $2.02B vs. $2.07B (-2.41%)
▫️Adjusted EPS: $0.78 vs. $0.40 (+95%)
▫️Net Financing Revenue: $1.51B (+0.47%)
▫️Other Revenue: $517M (-9.93%)
▫️Gross Margin: Net interest margin of 3.30% (+11 bps YoY).
▫️Operating Income: $109M vs. $73M (+49.32%)
▫️Core Pre-Tax Income: $310M vs. $183M (+69.40%)
đź“„ Segment-Specific Highlights:
▫️Auto Finance: Pre-tax income of $397M (-14.81% YoY); auto originations totaled $10.3B (+7.29% YoY).
▫️Insurance: Premiums of $390M (+17% YoY); full-year premiums reached $1.5B, the highest since IPO.
▫️Corporate Finance: Pre-tax income of $120M (+30.43% YoY).
đź’Ľ Balance Sheet Highlights (vs. Q4 FY23):
▫️Total Assets: $182.7B (-1.62%)
▫️Total Liabilities: $169.8B (-2.35%)
▫️Equity: $12.9B (+5.91%)
▫️Retail Deposits: $143.4B (+0.84% YoY); engaged savers increased by 14%.
▫️Capital Ratio (CET1): 9.8% (+46 bps YoY).
đź”® Future Outlook:
Ally Financial anticipates momentum in 2025 driven by core operational improvements and robust customer retention. The company is focusing on high-yield auto finance, premium insurance offerings, and strategic capital deployment. Risks include macroeconomic conditions and credit normalization.