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NEW YORK - Ally Financial (NYSE:ALLY) reported better-than-expected first quarter earnings and revenue on Thursday.
Ally shares were up 0.03% in pre-market trading following the earnings release.
The digital financial services company posted adjusted earnings per share of $0.58, surpassing analyst estimates of $0.47. Revenue came in at $2.1 billion, also topping the consensus forecast of $2.03 billion.
Ally’s retail auto originations totaled $10.2 billion in Q1, with 44% of originations coming from customers with FICO scores above 700. The company’s insurance written premiums grew 9% year-over-year to $385 million.
Net interest margin excluding core original issue discount was 3.35%, up from 3.19% in the year-ago quarter. Ally’s adjusted efficiency ratio improved to 56.0% from 59.8% last year.
The company ended the quarter with a Common Equity Tier 1 (CET1) capital ratio of 9.5%, above its target range of 7-8%.
While Ally topped expectations, the company continues to face headwinds from rising interest rates and a potential economic slowdown. Management will likely provide more color on the outlook during the earnings conference call later today.
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