Q2 2024 Ally Financial Inc Earnings Call Transcript
Key Points
- Ally Financial Inc (ALLY) reported a second quarter adjusted EPS of $0.97 and $2 billion in revenue, reflecting solid financial results from consistent operational execution.
- The company saw strong improvements following the first quarter earnings trough, with NIM excluding OID of 3.3%, up 14 basis points quarter over quarter.
- Ally Financial Inc (ALLY) generated $9.8 billion in auto originations with retail auto originated yields of 10.6%, and 44% of the volume in their highest credit tier.
- The insurance business produced $344 million in written premiums, up 15% year-over-year, driven by continued momentum in F&I and P&C products.
- Corporate finance delivered its highest quarterly earnings ever, driven by a customer-focused approach and strong market conditions.
- Net financing revenue excluding OID was lower year over year, driven by higher interest rates.
- Provision expense increased from the prior year due to higher net charge-offs, particularly from the 2022 vintage.
- Retail auto net charge-offs were 181 basis points, reflecting pressure from the back-book, specifically the 2022 vintage.
- Adjusted non-interest expense was up 3% year over year, driven by growth in the insurance business and historically elevated weather losses.
- Deposits were down quarter over quarter and flat for the year, in line with expectations for seasonal tax outflows.
Good day and thank you for standing by. Welcome to the second quarter 2024 Ally financial earnings conference call. (Operator Instructions)Please be advised that today's conference is being recorded. I would now like to hand the conference over to Sean Leary, Head of Investor Relations. Please go ahead.
Thank you, Elizabeth. Good morning and welcome to Ally Financial's second quarter 2024 earnings call. This morning our CEO, Michael Rhodes, and our CFO, Russ Hutchinson, will review Ally's results before taking questions. The presentation we'll reference can be found on the Investor Relations section of our website, ally.com.
Forward-looking statements and risk factor language governing today's call are on slide 2. GAAP and non-GAAP measures pertaining to our operating performance and capital results are on slide 3. As a reminder, non-GAAP or core metrics are supplemented to, and not a substitute for, US GAAP measures. Definitions and reconciliations can be found in
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