Ally Financial Inc.
For the period ended Mar 31, 2026. Filed May 5, 2026.
View on SEC.govAbout this filing
A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Mar 31, 2026 · Filed May 5, 2026
ALLY$38.17-1.7%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2025-09-30; filed 2025-10-30.
0000040729-25-000025
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2026-03-31; filed 2026-05-05.
0000040729-26-000009
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 449 previous paragraphs and 403 current paragraphs.
231 unchanged; 145 reworded; 24 added; 63 removed; 10 previous and 3 current paragraphs rearranged.
Tables are not compared: 58 previous and 50 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (24)
Current report
Risks related to geopolitical developments, including the ongoing conflicts in the Middle East, could disrupt global supply chains, energy markets, and financial markets, and could adversely impact economic conditions. For example, rising gasoline prices could suppress demand for vehicles which could reduce used vehicle values. Sustained increased in oil and gasoline prices could contribute to broader inflationary pressures, weaken discretionary spending, and adversely affect employment and income in certain sectors, further pressuring household budgets, and credit performance.
Current report
Insurance premiums and service revenue earned was $360 million for the three months ended March 31, 2026, compared to $364 million for the three months ended March 31, 2025. The decrease for the three months ended March 31, 2026, was primarily due to lower P&C and VSC volume. The decrease was partially offset by growth of GAP and other ancillary F&I products.
Current report
Other loss on investments, net, was $21 million for the three months ended March 31, 2026, compared to $499 million for the three months ended March 31, 2025. The decrease in loss for the three months ended March 31, 2026, was primarily attributable to a balance sheet repositioning of a portion of our available-for-sale securities during the three months ended March 31, 2025.
Current report
(a)Includes net remarketing losses of $10 million and $19 million for the three months ended March 31, 2026, and 2025, respectively.
Current report
The provision for credit losses increased $34 million for the three months ended March 31, 2026, compared to the three months ended March 31, 2025. The increase was primarily driven by portfolio growth within our consumer automotive portfolio, partially offset by lower net charge-offs within our consumer automotive portfolio. Refer to the Risk Management section of this MD&A for further discussion on our provision for credit losses.
Current report
Our portfolio yield for investment in operating leases, net, including losses on the sale of off-lease vehicles, increased 4 basis points for the three months ended March 31, 2026, compared to the three months ended March 31, 2025. The increase was due to lower net remarketing losses, which decreased $9 million for the three months ended March 31, 2026, compared to the three months ended March 31, 2025. In the near term, our ability to optimize remarketing gains may be limited due to used vehicle market pressures on certain plug-in hybrid vehicles following the elimination of federal electric-vehicle tax credits for both new and used vehicles, vehicle recalls, and increased OEM marketing incentives on new vehicles. Additionally, our operating lease portfolio mix has shifted towards contracts with a residual value guarantee, and towards a more diverse mix of OEMs for contracts without a residual value guarantee, which may reduce volatility in remarketing gains and losses in future years. Refer to the Operating Lease Residual Risk Management section of this MD&A for further discussion.
Current report
Our Insurance operations earned income from continuing operations before income tax expense of $28 million for the three months ended March 31, 2026, compared to $2 million for the three months ended March 31, 2025. The increase for the three months ended March 31, 2026, was primarily driven by lower insurance losses and loss adjustment expenses and higher interest and dividends on investment securities, cash and cash equivalents, and other earning assets, net. The increase was partially offset by higher other loss on investments, net.
Current report
Insurance premiums and service revenue earned was $360 million for the three months ended March 31, 2026, compared to $364 million for the three months ended March 31, 2025. The decrease for the three months ended March 31, 2026, was primarily due to lower P&C and VSC volume. The decrease was partially offset by growth of GAP and other ancillary F&I products.
Current report
Other loss on investments, net was $21 million for the three months ended March 31, 2026, compared to $4 million for the three months ended March 31, 2025. This included realized gains of $38 million during the three months ended March 31, 2026, compared to $11 million for the three months ended March 31, 2025. The increase for the three months ended March 31, 2026, was driven by net unrealized losses on equity securities of $59 million for the three months ended March 31, 2026, compared to net unrealized losses on equity securities of $15 million during the three months ended March 31, 2025. The increase for the three months ended March 31, 2026, was primarily due to equity securities performance in line with the broader market.
Current report
Our combined ratio was 96.2% for the three months ended March 31, 2026, compared to 106.5% for the three months ended March 31, 2025. The decrease for the three months ended March 31, 2026, was primarily driven by lower weather losses.
Current report
Our Corporate Finance operations earned income from continuing operations before income tax expense of $94 million for the three months ended March 31, 2026, compared to $76 million for the three months ended March 31, 2025. The increase for the three months ended March 31, 2026, was primarily due to higher net financing revenue and other interest income, higher total other revenue, and lower provision for credit losses.
Current report
Net financing revenue and other interest income was $113 million for the three months ended March 31, 2026, compared to $104 million for the three months ended March 31, 2025. The increase for the three months ended March 31, 2026, was primarily due to higher interest and fees on finance receivables and loans, driven by portfolio growth, partially offset by higher interest expense.
Current report
Other revenue increased $6 million for the three months ended March 31, 2026, compared to the three months ended March 31, 2025. The increase was primarily driven by higher realized gains on nonmarketable equity investments and higher syndication income.
Current report
(a)Primarily relates to loans to non-depository financial institutions within our Private Credit Finance portfolio, where we serve as lead agent. All loans within the Private Credit Finance portfolio are performing and rated pass.
Current report
Total other revenue increased $458 million for the three months ended March 31, 2026, compared to the three months ended March 31, 2025. The increase was primarily driven by a balance sheet repositioning of a portion of our available-for-sale securities during the first quarter of 2025.
Current report
The provision for credit losses increased $248 million for the three months ended March 31, 2026, compared to the three months ended March 31, 2025. The increase was driven by a provision benefit associated with the transfer of Ally Credit Card to held-for-sale during the three months ended March 31, 2025. Refer to the Risk Management section of this MD&A for further discussion on our provision for credit losses.
Current report
(b)Consists of Credit Card. We closed the sale of Ally Credit Card on April 1, 2025.
Current report
(a)Consists of Credit Card. We closed the sale of Ally Credit Card on April 1, 2025.
Current report
(a)Consists of Credit Card. We closed the sale of Ally Credit Card on April 1, 2025.
Current report
We recognized an average loss per vehicle of $663 for the three months ended March 31, 2026, compared to $863 for the three months ended March 31, 2025. The method of vehicle sales is largely dependent on used vehicle values at lease termination compared to contractual residual values at lease inception. In the near term, our ability to optimize remarketing gains may be limited due to used vehicle market pressures on certain plug-in hybrid vehicles following the elimination of federal electric-vehicle tax credits for both new and used vehicles, vehicle recalls, and increased OEM marketing incentives on new vehicles. During the first quarter of 2026, we adjusted the rate of depreciation to recognize more depreciation on vehicles scheduled to terminate through September 30, 2027, primarily driven by used market pressures on certain plug-in hybrid vehicles. We will continue to evaluate our depreciation rate for leased vehicles based on expected residual values and adjust depreciation expense over the remaining life of the lease, if deemed necessary. Additionally, our operating lease portfolio mix has shifted towards contracts with a residual value guarantee, and towards a more diverse mix of OEMs for contracts without a residual value guarantee, which may reduce volatility in remarketing gains and losses in future years.
Current report
The following table presents the mix of operating lease assets by vehicle type, based on volume of units outstanding.
Current report
•We raised $758 million through the completion of a term securitization transaction backed by consumer automotive loans.
Current report
We continue to be recognized for the total experience and value we deliver to our customers - combining strong products, intuitive digital tools, and trusted service. In 2026, Ally was named one of Forbes’ World’s Best Banks and Best National Retail Bank by Newsweek, reinforcing our position as a customer-first financial institution. Newsweek also recognized Ally among America’s Most Reliable and Most Trustworthy Companies, reflecting the confidence customers place in our brand. Ally’s digital leadership and service excellence continue to set us apart. Money recognized Ally among the Best Banks for Digital Investing and FinanceBuzz awarded Ally the Best Account for Automated Savings in 2026. Our commitment to customer care was further recognized by Newsweek and USA Today, which rank Ally among America’s Best Customer Service organizations in Financial Services.
Current report
As part of these securitization transactions, we sell assets to various SPEs in exchange for the proceeds from the issuance of debt and other beneficial interest in the assets. The activities of the SPEs are generally limited to acquiring the assets, issuing and making payments on the debt, paying related expenses, and periodically reporting to investors.
Removed paragraphs (63)
Previous report
Corporate and Other includes our CRA loans. In its most recent performance evaluation in 2025, Ally Bank received an “Outstanding” rating for the CRA strategic plan (2023–2024). Failure by Ally Bank to maintain a “Satisfactory” or better rating on its most recent examination under the CRA may adversely affect our ability to expand our financial and related activities as an FHC or make acquisitions.
Previous report
On October 24, 2023, the U.S. banking agencies issued a final rule to modernize their regulations related to the CRA. The final rule amends their CRA regulations by introducing new tests to evaluate the CRA performance of banks, which most significantly impacts banks with over $2 billion in assets and imposes additional requirements on banks with over $10 billion in assets. Major changes to the CRA regulations include modifications related to the delineation of assessment areas, the overall evaluation framework including performance standards and metrics, the definition of community development activities, and data collection and reporting. Most provisions of the final rule will become effective on January 1, 2026, and the data reporting requirements will become effective on January 1, 2027. The final rule is stayed as to the plaintiff trade associations while a federal court considers the validity of the rule. On July 15, 2025, the FDIC Board of Directors voted to approve a notice of proposed rulemaking to be issued with the Federal Reserve and the Office of the Comptroller of the Currency to both rescind the CRA final rule and reinstate the CRA framework that existed prior to the final rule, with certain technical amendments.
Previous report
Insurance premiums and service revenue earned was $361 million and $1.1 billion for the three months and nine months ended September 30, 2025, respectively, compared to $359 million and $1.0 billion for the three months and nine months ended September 30, 2024. The increases for the three months and nine months ended September 30, 2025, were primarily driven by growth in our vehicle inventory insurance business as we continue to grow new relationships.
Previous report
Other gain (loss) on investments, net, was a gain of $56 million and a loss of $382 million for the three months and nine months ended September 30, 2025, respectively, compared to gains of $74 million and $96 million for the three months and nine months ended September 30, 2024. The decrease for the three months ended September 30, 2025, was primarily due to lower gains from equity securities as compared to the same period in 2024. The decrease for the nine months ended September 30, 2025, compared to the same period in 2024, was primarily attributable to our balance sheet repositioning of a portion of our available-for-sales securities during the nine months ended September 30, 2025. Refer to Note 7 to the Condensed Consolidated Financial Statements for additional information.
Previous report
(a)Includes net remarketing gains of $1 million and net remarketing losses of $18 million for the three months and nine months ended September 30, 2025, respectively, compared to net remarketing gains of $24 million and $129 million for the three months and nine months ended September 30, 2024.
Previous report
The provision for credit losses decreased $169 million and $179 million for the three months and nine months ended September 30, 2025, respectively, compared to the three months and nine months ended September 30, 2024. The decreases in provision for credit losses for the three months and nine months ended September 30, 2025, were primarily driven by lower net charge-offs within our consumer automotive portfolio. Additionally, for the three months and nine months ended September 30, 2024, our consumer automotive portfolio experienced an increase in reserves, which included additional reserves associated with the estimated impact of Hurricane Helene. Refer to the Risk Management section of this MD&A for further discussion on our provision for credit losses.
Previous report
Total noninterest expense increased $60 million and $91 million for the three months and nine months ended September 30, 2025, respectively, compared to the same periods in 2024. The increases for the three months and nine months ended September 30, 2025, were primarily due to increased expenses to support the growth of our consumer product suite and expand our digital capabilities and portfolio of products.
Previous report
Our portfolio yield for investment in operating leases, net, including gains and losses on the sale of off-lease vehicles, decreased 52 and 129 basis points to 6.70% and 6.43% for the three months and nine months ended September 30, 2025, respectively, as compared to 7.22% and 7.72% for the three months and nine months ended September 30, 2024. The decreases were due to lower remarketing gains, which decreased $23 million and $147 million for the three months and nine months ended September 30, 2025, compared to the same periods in 2024. Refer to the Operating Lease Residual Risk Management section of this MD&A for further discussion.
Previous report
(a)Includes CSG originations of $2.8 billion and $2.9 billion for the nine months ended September 30, 2025, and 2024, respectively.
Previous report
For discussion of manufacturer marketing incentives, refer to the section titled Automotive Financing Volume—Manufacturer Marketing Incentives within the MD&A in our 2024 Annual Report on Form 10-K.
Previous report
Our Insurance operations earned income from continuing operations before income tax expense of $79 million and $109 million for the three months and nine months ended September 30, 2025, respectively, compared to income of $102 million and $132 million for the three months and nine months ended September 30, 2024. The decrease for the three months ended September 30, 2025, was primarily driven by a decrease in other gain on investments, as a result of lower unrealized gains on our equity portfolio. The decrease for the nine months ended September 30, 2025, was primarily driven by higher insurance losses and loss adjustment expenses, partially offset by higher insurance premiums and other income from growth in our insurance portfolio and higher investment income.
Previous report
Insurance premiums and service revenue earned was $361 million and $1.1 billion for the three months and nine months ended September 30, 2025, respectively, compared to $359 million and $1.0 billion for the same periods in 2024. The increases for the three months and nine months ended September 30, 2025, were primarily driven by growth in our vehicle inventory insurance business as we continue to grow new relationships.
Previous report
Other gain on investments, net was $56 million and $111 million for the three months and nine months ended September 30, 2025, respectively, compared to $75 million and $104 million for the same periods in 2024. This consisted of realized capital gains of $28 million and $68 million during the three months and nine months ended September 30, 2025, compared to $19 million and $58 million for the same periods in 2024. The decrease for the three months ended September 30, 2025, was driven by net unrealized gains on equity securities of $27 million for the three months ended September 30, 2025, compared to $56 million during the same period in 2024, partially offset by higher realized gains. The increase for the nine months ended September 30, 2025, was driven by higher realized gains, partially offset by net unrealized gains on equity securities of $43 million for the nine months ended September 30, 2025, compared to $46 million during the same period in 2024.
Previous report
Our combined ratio was 102.6% and 108.7% for the three months and nine months ended September 30, 2025, respectively, compared to 100.6% and 105.3% for the same periods in 2024. The increase for the three months ended September 30, 2025, as compared to the same period in 2024, was primarily driven by higher insurance losses and loss adjustment expenses and higher acquisition and underwriting expenses, partially offset by insurance portfolio growth. The increase for the nine months ended September 30, 2025, was primarily driven by higher net weather losses compared to the same period in 2024, partially offset by higher earned premiums from our vehicle inventory insurance business.
Previous report
Our Corporate Finance operations earned income from continuing operations before income tax expense of $95 million and $267 million for the three months and nine months ended September 30, 2025, respectively, compared to $105 million and $314 million for the three months and nine months ended September 30, 2024. The decreases for the three months and nine months ended September 30, 2025, were primarily due to lower total other revenue. Additionally, the decrease for the nine months ended September 30, 2025, was driven by lower net financing revenue and other interest income and higher provision for credit losses.
Previous report
Net financing revenue and other interest income was $111 million and $323 million for the three months and nine months ended September 30, 2025, respectively, compared to $109 million and $341 million for the three months and nine months ended September 30, 2024. The decrease for the nine months ended September 30, 2025, was primarily driven by lower accelerated deferred fees from early loan payoffs, which were elevated during the nine months ended September 30, 2024.
Previous report
Other revenue decreased $12 million and $17 million for the three months and nine months ended September 30, 2025, respectively, compared to the three months and nine months ended September 30, 2024. The decreases for the three months and nine months ended September 30, 2025, were primarily driven by lower syndication income. Additionally, the decreases were driven by lower fee income on revolving credit lines due to higher utilization as compared to the three months and nine months ended September 30, 2024.
Previous report
(a)We closed the sale of Ally Credit Card on April 1, 2025. Refer to Note 2 to the Condensed Consolidated Financial Statements for additional information.
Previous report
Total other revenue decreased $13 million and $482 million for the three months and nine months ended September 30, 2025, respectively, compared to the three months and nine months ended September 30, 2024. The decreases for the three months and nine months ended September 30, 2025, were driven by lower late charges and other administrative fees as a result of the sale of Ally Credit Card. Additionally, the decrease for the nine months ended September 30, 2025, was driven by a balance sheet repositioning of a portion of our available-for-sale securities during the first quarter of 2025. Refer to Note 7 to the Condensed Consolidated Financial Statements for additional information.
Previous report
The provision for credit losses decreased $58 million and $447 million for the three months and nine months ended September 30, 2025, respectively, compared to the three months and nine months ended September 30, 2024. The decrease in provision for credit losses for the three months ended September 30, 2025, was primarily driven by lower net charge-offs within our consumer other portfolio due to the sale of Ally Credit Card. The decrease in provision for credit losses for the nine months ended September 30, 2025, was driven by a provision benefit associated with the sale of Ally Credit Card. Refer to the Risk Management section of this MD&A for further discussion on our provision for credit losses.
Previous report
(c)Consists of only first-lien mortgages.
Previous report
Ally Credit Card
Previous report
On April 1, 2025, we closed the sale of Ally Credit Card. For further information, refer to Note 2 to the Condensed Consolidated Financial Statements.
Previous report
In addition to the primary risks that we manage, climate-related risk has been identified as an emerging risk. Climate-related risk refers to the risk of loss or change in business activities arising from climate change and represents a transverse risk that could impact other risks within Ally’s risk-management framework, such as credit risk from negatively impacted borrowers, reputation risk from increased stakeholder concerns, and operational risk from physical climate risks. Refer to the section titled Climate-Related Risk within this section for more information.
Previous report
(d)Includes Credit Card. We closed the sale of Ally Credit Card on April 1, 2025. Refer to Note 2 to the Condensed Consolidated Financial Statements for additional information.
Previous report
(d)Consists of credit card finance receivables and loans. We closed the sale of Ally Credit Card on April 1, 2025. Refer to Note 2 to the Condensed Consolidated Financial Statements for additional information.
Previous report
(b)Net charge-off and write-downs from transfers to held-for-sale ratios are calculated as net charge-offs and write-downs from transfers to held-for-sale divided by average outstanding finance receivables and loans excluding loans measured at fair value and loans held-for-sale during the period for each loan category.
Previous report
(c)Consists of Credit Card. We closed the sale of Ally Credit Card on April 1, 2025. Refer to Note 2 to the Condensed Consolidated Financial Statements for additional information.
Previous report
(a)Consumer automotive includes a $5 million reduction of allowance from the completion of a retail securitization transactions during the nine months ended September 30, 2024, resulting in the deconsolidation of the assets and liabilities from our Condensed Consolidated Balance Sheet.
Previous report
(b)Net charge-off ratios are calculated as net charge-offs divided by average outstanding finance receivables and loans excluding loans measured at fair value and loans held-for-sale during the period for each loan category.
Previous report
(c)Net charge-off and write-downs from transfers to held-for-sale ratios are calculated as net charge-offs and write-downs from transfers to held-for-sale divided by average outstanding finance receivables and loans excluding loans measured at fair value and loans held-for-sale during the period for each loan category.
Previous report
(d)Consists of Credit Card. We closed the sale of Ally Credit Card on April 1, 2025. Refer to Note 2 to the Condensed Consolidated Financial Statements for additional information.
Previous report
(c)Consumer mortgage originations ceased during the second quarter of 2025.
Previous report
(b)We closed the sale of Ally Credit Card on April 1, 2025. Refer to Note 2 to the Condensed Consolidated Financial Statements for additional information.
Previous report
(c)Includes PCD loans acquired during the nine months ended September 30, 2025.
Previous report
(b)Commercial includes $24 million of allowance for loan losses recognized on PCD loans acquired during the three months ended September 30, 2025.
Previous report
(c)Commercial includes $24 million of allowance for loan losses recognized on PCD loans acquired during the nine months ended September 30, 2025.
Previous report
(c)Consumer automotive includes a $5 million reduction of allowance from the completion of a retail securitization transaction during the nine months ended September 30, 2024, resulting in the deconsolidation of the assets and liabilities from our Condensed Consolidated Balance Sheet.
Previous report
The provision for commercial credit losses decreased $13 million for the three months ended September 30, 2025, and increased $11 million for the nine months ended September 30, 2025, respectively, compared to the three months and nine months ended September 30,
Previous report
(a)Represents the allowance for loan losses on credit card finance receivables and loans. We closed the sale of Ally Credit Card on April 1, 2025. Refer to Note 2 to the Condensed Consolidated Financial Statements for additional information.
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Reworded paragraphs (145)
Previous wording
All forward-looking statements, by their nature, are subject to assumptions, risks, and uncertainties, which may change over time and many of which are beyond our control. You should not rely on any forward-looking statement as a prediction or guarantee about the future. Actual future objectives, strategies, plans, prospects, performance, conditions, or results may differ materially from those set forth in any forward-looking statement. While no list of assumptions, risks, or uncertainties could be complete, some of the factors that may cause actual results or other future events or circumstances to differ from those in forward-looking statements include:
Current wording
All forward-looking statements, by their nature, are subject to assumptions, risks, uncertainties, and other important factors which may change over time and many of which are beyond our control. You should not rely on any forward-looking statement as a prediction or guarantee about the future. Actual future objectives, strategies, plans, prospects, performance, conditions, or results may differ materially from those set forth in any forward-looking statement. While no list of assumptions, risks, or uncertainties could be complete, some of the factors that may cause actual results or other future events or circumstances to differ from those in forward-looking statements include:
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•evolving local, regional, national, or international business, economic, or political conditions;
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•evolving local, regional, national, or international business, economic, or geopolitical conditions;
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•disruptions or shifts in investor sentiment or behavior in the securities, capital, or other financial markets, including financial or systemic shocks and volatility or changes in market liquidity, interest or currency rates, or valuations;
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•disruptions or shifts in investor sentiment or behavior in the securities, capital, commodity, or other financial markets, including financial or systemic shocks and volatility or changes in market price, liquidity, interest or currency rates, or valuations;
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•changes in business or consumer sentiment, preferences, or behavior, including spending, borrowing, or saving by businesses or households;
Current wording
•changes in business or consumer sentiment, preferences, purchasing power, creditworthiness, or behavior, including spending, borrowing, or saving by businesses or households;
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•our ability to optimize our automotive finance and insurance businesses and to continue diversifying into and growing other consumer and commercial business lines, including corporate finance, brokerage, and personal advice;
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•our ability to grow and optimize our automotive finance and insurance businesses and to continue diversifying into and growing other consumer and commercial business lines, including corporate finance, brokerage, and personal advice;
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•our ability to innovate, to anticipate the needs of current or future customers, to successfully compete, to increase or hold market share in changing competitive environments, or to deal with pricing or other competitive pressures;
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•our ability to innovate, to anticipate the needs of current or future customers, to successfully compete, to increase or hold market share in changing competitive environments, or to respond to pricing or other competitive pressures;
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•our ability to effectively deal with economic, business, or market slowdowns or disruptions;
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•our ability to effectively respond to economic, business, or market slowdowns or disruptions;
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•our ability to address heightened scrutiny and expectations from supervisory or other governmental authorities and to timely and credibly remediate related concerns or deficiencies;
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•our ability to address heightened scrutiny or changing expectations from supervisory or other governmental authorities and to timely and credibly remediate related concerns or deficiencies;
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•our ability to keep pace with changes in technology, such as artificial intelligence, that affect us or our customers, counterparties, service providers, or competitors or to maintain rights or interests in associated intellectual property;
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•our ability to keep pace with changes in technology, such as AI, that affect us or our customers, counterparties, service providers, or competitors or to maintain rights or interests in associated intellectual property;
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Ally Financial Inc. (together with its consolidated subsidiaries unless the context otherwise requires, Ally, the Company, we, us, or our) is a financial-services company with the nation’s largest all-digital bank and an industry-leading automotive financing and insurance business, driven by a mission to “Do It Right” and be a relentless ally for customers and communities. The Company serves customers with deposits and securities brokerage and investment advisory services as well as automotive financing and insurance offerings. The Company also includes a seasoned corporate finance business that offers capital for equity sponsors and middle-market companies. Ally is a Delaware corporation and is registered as a BHC under the BHC Act and an FHC under the GLB Act.
Current wording
Ally Financial Inc. (together with its consolidated subsidiaries unless the context otherwise requires, Ally, the Company, we, us, or our) is a financial-services company with the nation’s largest all-digital bank and an industry-leading automotive financing and insurance business, driven by a mission to “Do It Right” and be a relentless ally for all stakeholders. The Company serves customers with deposits and securities brokerage and investment advisory services as well as automotive financing and insurance offerings. The Company also includes a seasoned corporate finance business that offers capital for equity sponsors and middle-market companies. Ally is a Delaware corporation and is registered as a BHC under the BHC Act and an FHC under the GLB Act.
Previous wording
Dealer Financial Services, which includes our Automotive Finance and Insurance operations, and Corporate Finance are our primary business lines. The remaining activity is reported in Corporate and Other, which primarily consists of centralized treasury activities as well as Ally Invest, our digital brokerage and personal advice offering, Ally Lending, Ally Credit Card, the management of our consumer mortgage portfolio, CRA loans and investments, and certain strategic investments through Ally Ventures. We closed the sale of Ally Lending on March 1, 2024. Consumer mortgage originations ceased during the second quarter of 2025, which has and will continue to result in a gradual run-off of our consumer mortgage loan portfolio. Additionally, we closed the sale of Ally Credit Card on April 1, 2025. For further information, refer to Note 2 to the Condensed Consolidated Financial Statements. The following table summarizes the operating results excluding discontinued operations of each business line. Operating results for each of the business lines are more fully described in the MD&A sections that follow.
Current wording
Dealer Financial Services, which includes our Automotive Finance and Insurance operations, and Corporate Finance are our primary business lines. The remaining activity is reported in Corporate and Other, which primarily consists of centralized treasury activities (including deposit operations) as well as Ally Invest, our digital brokerage and personal advice offering, Ally Credit Card, the management of our consumer mortgage portfolio, CRA loans and investments, and certain strategic investments through Ally Ventures. Consumer mortgage originations ceased during the second quarter of 2025, which has and will continue to result in a gradual run-off of our consumer mortgage loan portfolio. We closed the sale of Ally Credit Card on April 1, 2025. The following table summarizes the operating results excluding discontinued operations of each business line. Operating results for each of the business lines are more fully described in the MD&A sections that follow.
Previous wording
Our Automotive Finance operations include purchasing retail installment sales contracts and operating leases from dealers and automotive retailers, extending automotive loans directly to consumers, offering term loans to dealers, financing dealer floorplans and providing other lines of credit to dealers, supplying warehouse lines to automotive retailers, offering automotive-fleet financing, providing financing to companies and municipalities for the purchase or lease of vehicles, and supplying vehicle-remarketing services. Our success as an automotive finance provider is driven by the consistent and broad range of products and services we offer to dealers and automotive retailers. The automotive marketplace is dynamic and evolving, including substantial investments in electrification by automotive manufacturers and suppliers. We continue to identify and cultivate relationships with automotive retailers, including those with leading e-commerce platforms. We also operate an online direct-lending platform for consumers seeking direct financing. We believe these products will enable us to respond to the growing trends for a more streamlined and digital automotive financing process to serve both dealers and consumers. Additionally, we provide comprehensive automotive remarketing services, including the use of SmartAuction, our online auction platform, which efficiently supports dealer-to-dealer and other commercial wholesale vehicle transactions. SmartAuction provides diversified fee-based revenue and serves as a means of deepening relationships with our dealership customers. Beyond offering a full suite of solutions for our dealership customers, we also offer application pass-through programs for credit applications that do not meet our underwriting criteria, allowing dealers to provide expanded access to credit for consumers and improve sales at their dealership. Through our pass-through programs, we are able to monetize our declined applications by generating a combination of acquisition fee and servicing revenue for loans that are originated, sold to, and serviced on behalf of a third-party lender, or one-time acquisition fees for loans funded and serviced by a third party. Furthermore, our strong and expansive dealer relationships, comprehensive suite of products and services, full-spectrum financing, and depth of experience position us to evolve with future shifts in automobile technologies, including electrification. We have provided and continue to provide automobile financing for battery-electric and plug-in hybrid vehicles, including brands such as Tesla, Jeep, Alfa Romeo, and Chevrolet. This positions us to remain a leader in automotive financing as we believe the majority of these vehicles will be sold through dealerships and automotive retailers with whom we have an established relationship. Additionally, we continue to partner and build relationships with automotive manufacturers who use a direct-to-consumer model. During the nine months…
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Current wording
Our Automotive Finance operations include purchasing retail installment sales contracts and operating leases from dealers and automotive retailers, extending automotive loans directly to consumers, offering term loans to dealers, financing dealer floorplans and providing other lines of credit to dealers, offering automotive-fleet financing, providing financing to companies and municipalities for the purchase or lease of vehicles, and supplying vehicle-remarketing services. Our success as an automotive finance provider is driven by the consistent presence and breadth of products and services we offer to dealers and automotive retailers. The automotive marketplace continues to evolve, including varying levels of investment in electric vehicle technologies by automotive manufacturers and suppliers. We continue to identify and cultivate relationships with automotive retailers, including those with leading e-commerce platforms, and we also operate an online direct lending platform for consumers seeking direct financing. We believe these products enable us to respond to the ongoing trends toward more streamlined and digital automotive financing processes that serve both dealers and consumers. Additionally, we provide comprehensive automotive remarketing services, including the use of SmartAuction, our online auction platform, which efficiently supports dealer-to-dealer and other commercial wholesale vehicle transactions. SmartAuction provides diversified fee-based revenue and serves as a means of deepening relationships with our dealership customers. Beyond offering a full suite of solutions for our dealership customers, we also offer application pass-through programs for credit applications that do not meet our underwriting criteria, allowing dealers to provide expanded access to credit for consumers and improve sales at their dealership. Through our pass-through programs, we are able to monetize our declined applications by generating a combination of acquisition fee and servicing revenue for loans that are originated, sold to, and serviced on behalf of third-party lenders, or one-time acquisition fees for loans funded and serviced by a third party. Our strong and expansive dealer relationships, comprehensive suite of products and services, full spectrum financing, and depth of experience position us to adapt as vehicle technologies and consumer preferences evolve. We have provided and continue to provide automobile financing for battery electric and, to a lesser extent, plug-in hybrid vehicles, including brands such as Tesla, Jeep, Alfa Romeo, and Chevrolet. While we expect most of these vehicles to continue to be sold through dealerships and automotive retailers with whom we have established relationships, we also partner with automotive manufacturers that use a direct-to-consumer model. During the three months ended March 31, 2026, $509 million of our consumer automotive retail loan originations and purchases, and $63 million of our operating leas…
Excerpt shortened here; the source contains the full paragraph.
Previous wording
We have focused on developing dealer relationships beyond those relationships that primarily were developed through our previous role as a captive finance company for GM and a preferred provider for Stellantis. We have established relationships with thousands of automotive dealers through our customer-centric approach and specialized incentive programs designed to drive loyalty amongst dealers to our products and services. Outside of GM and Stellantis, our other OEM-franchised dealers include brands such as Ford, Toyota, Hyundai, Kia, Nissan, Honda, and others, including automotive manufacturers who use a direct-to-consumer model. Our non-OEM-franchised dealers and automotive retailers include used-vehicle-only retailers with a national presence, as well as online-only automotive retailers, such as Carvana, CarMax, and EchoPark.
Current wording
We have focused on developing dealer relationships beyond those relationships that primarily were developed through our previous role as a captive finance company for GM and a preferred provider for Stellantis. We have established relationships with thousands of automotive dealers through our customer-centric approach and specialized incentive programs designed to drive loyalty amongst dealers to our products and services. Outside of GM and Stellantis, our other OEM-franchised dealers include brands such as Ford, Toyota, Hyundai, Kia, Nissan, Honda, and others, including automotive manufacturers who use a direct-to-consumer model. Our non-OEM-franchised dealers and automotive retailers include used-vehicle-only retailers with a national presence, such as CarMax and EchoPark, as well as primarily online automotive retailers, such as Carvana.
Previous wording
We are a market-leading provider of dealer insurance products, offering a variety of commercial products and levels of coverage. Vehicle inventory insurance for dealers provides physical damage protection for dealers’ floorplan vehicles that may be financed by Ally, another lender, or may be owned by the dealer. Dealers who receive wholesale financing from us are eligible for insurance incentives such as automatic eligibility for our preferred insurance programs. We continue to grow our market position leveraging our scale and significant experience in this space. We also offer property, liability, and other ancillary coverages to dealers, and during the third quarter of 2025, we became the underwriting carrier on the majority of these product offerings.
Current wording
We are a market-leading provider of dealer insurance products, offering a variety of commercial products and levels of coverage. Vehicle inventory insurance for dealers provides physical damage protection for dealers’ floorplan vehicles that may be financed by Ally, another lender, or may be owned by the dealer. Dealers who receive wholesale financing from us are eligible for insurance incentives such as automatic eligibility for our preferred insurance programs. We continue to grow our market position leveraging our scale and significant experience in this space. We also offer property, liability, and other ancillary coverages to dealers.
Previous wording
Our dealer F&I products are primarily distributed indirectly through the automotive dealer network which includes dealer relationships of approximately 1,500 in the U.S. where we serve 2.4 million consumers. As part of our focus on offering dealers a broad range of consumer F&I products, we offer VSCs, VMCs, and GAP products. Ally Premier Protection is our flagship VSC offering, which provides coverage for new and used vehicles of virtually all makes and models offering owners and lessees mechanical repair protection and roadside assistance beyond the manufacturer’s new vehicle warranty. Our GAP products cover certain amounts owed by a customer beyond their covered vehicle’s value in the event the vehicle is damaged or stolen and declared a total loss. We offer F&I products in Canada, where we serve over 500,000 consumers and are the preferred VSC and other protection plan provider for GM Canada. Our contract to serve as the preferred VSC and protection plan provider for GM Canada extends into the third quarter of 2027.
Current wording
Our dealer F&I products are primarily distributed indirectly through the automotive dealer network, which includes dealer relationships of approximately 1,600 in the U.S. where we serve 2.4 million customers. As part of our focus on offering dealers a broad range of consumer F&I products, we offer VSCs, VMCs, and GAP products. Ally Premier Protection is our flagship VSC offering, which provides coverage for new and used vehicles of virtually all makes and models offering owners and lessees mechanical repair protection and roadside assistance beyond the manufacturer’s new vehicle warranty. Our GAP products cover certain amounts owed by a customer beyond their covered vehicle’s value in the event the vehicle is damaged or stolen and declared a total loss. We offer F&I products in Canada, where we serve over 550,000 customers and are the preferred VSC and other protection plan provider for GM. Our contract to serve as the preferred VSC and protection plan provider for GM Canada extends into the third quarter of 2027.
Previous wording
We also underwrite ClearGuard on the SmartAuction platform, which is a protection product designed to minimize the risk to dealers from arbitration claims for eligible vehicles sold at auction. On a smaller scale, we also periodically assume other non-automotive insurance risks through quota share arrangements and perform services as an underwriting carrier for insurance programs managed by a third party where we cede the majority of such business to external reinsurance markets.
Current wording
We also underwrite ClearGuard on the SmartAuction platform, which is a protection product designed to minimize the risk to dealers from arbitration claims for eligible vehicles sold at auction. On a smaller scale, we also periodically direct write or assume other non-automotive insurance risks. We typically assume other non-automotive insurance risks through quota share arrangements and perform services as an underwriting carrier for insurance programs managed by a third party where we cede the majority of such business to external reinsurance markets.
Previous wording
Our dealer-centric business model, value-added products and services, full-spectrum financing, and business expertise proven over many credit cycles, make us a premier automotive finance and insurance company ready to support and strengthen over 21,000 active dealer relationships as of September 30, 2025. A dealer is considered to have an active relationship with us if we provided automotive financing, remarketing, or insurance services during the three months ended September 30, 2025.
Current wording
Our dealer-centric business model, value-added products and services, full-spectrum financing, and business expertise proven over many credit cycles, make us a premier automotive finance and insurance company ready to support and strengthen over 21,400 active dealer relationships as of March 31, 2026. A dealer is considered to have an active relationship with us if we provided automotive financing, remarketing, or insurance services during the three months ended March 31, 2026.
Previous wording
•Our Corporate Finance operations primarily offer senior-secured loans to private equity sponsor-owned U.S.-based middle-market companies and to well-established asset managers that mostly provide leveraged loans. The portfolio is composed of floating-rate asset-based and leveraged cash flow/enterprise value loans. Our Corporate Finance operations had $11.3 billion of assets at September 30, 2025, and generated $396 million of total net revenue during the nine months ended September 30, 2025, and continues to offer attractive returns and diversification benefits to our broader lending portfolio. Our Sponsor Finance business focuses on companies owned by private-equity sponsors with loans typically used for leveraged buyouts, refinancing and recapitalizations, mergers and acquisitions, growth, co-lending arrangements, turnarounds, and debtor-in-possession financings. Additionally, our Private Credit Finance business provides asset managers and other financing sources with facilities to partially fund their direct-lending activities. We have a commercial real estate product primarily focused on lending to skilled nursing facilities, senior housing, memory care facilities, and medical office buildings. Additionally, we have an energy vertical that finances large-scale energy and infrastructure projects.
Current wording
•Our Corporate Finance operations primarily offer senior-secured loans to private equity sponsor-owned U.S.-based middle-market companies and to well-established asset managers that mostly provide leveraged loans. The portfolio is composed of floating-rate leveraged asset-based and cash flow/enterprise value loans. Our Corporate Finance operations had $13.8 billion of assets at March 31, 2026, and generated $148 million of total net revenue during the three months ended March 31, 2026, and continues to offer attractive returns and diversification benefits to our broader lending portfolio. Our Sponsor Finance business focuses on companies owned by private-equity sponsors with loans typically used for leveraged buyouts, refinancing and recapitalizations, mergers and acquisitions, growth, co-lending arrangements, turnarounds, and debtor-in-possession financings. Additionally, our Private Credit Finance business provides asset managers and other financing sources with facilities to partially fund their direct-lending activities. We have a commercial real estate product primarily focused on lending to skilled nursing facilities, senior housing, and medical office buildings. Additionally, we have an energy and infrastructure vertical that finances large-scale energy and infrastructure projects.
Previous wording
•Corporate and Other primarily consists of centralized corporate treasury activities such as management of the cash and corporate investment securities and loan portfolios, short- and long-term debt, retail and brokered deposit liabilities, derivative instruments, original issue discount, and the residual impacts of our corporate FTP and treasury ALM activities. Corporate and Other also includes activity related to certain equity investments, which primarily consist of FHLB and FRB stock, as well as other equity investments through Ally Ventures, our strategic investment business. Additionally, Corporate and Other includes the management of our consumer mortgage portfolio, CRA loans and investments, and reclassifications and eliminations between the reportable operating segments. Costs that are not allocated to our reportable operating segments as part of our COH methodology, which involves management judgment, are also included in Corporate and Other. These costs include operating costs of deposits, treasury activities, and other corporate activities.
Current wording
•Corporate and Other primarily consists of centralized corporate treasury activities (including deposit operations) such as management of the cash and corporate investment securities and loan portfolios, short- and long-term debt, retail and brokered deposit liabilities, derivative instruments, original issue discount, and the residual impacts of our corporate FTP and treasury ALM activities. Corporate and Other also includes activity related to certain equity investments, which primarily consist of FHLB and FRB stock, as well as other equity investments through Ally Ventures, our strategic investment business. Additionally, Corporate and Other includes the management of our consumer mortgage portfolio, CRA loans and investments, and reclassifications and eliminations between the reportable operating segments. Costs that are not allocated to our reportable operating segments as part of our COH methodology, which involves management judgment, are also included in Corporate and Other. These costs include operating costs of deposits, treasury activities, and other corporate activities.
Previous wording
Corporate and Other included Ally Credit Card prior to the sale, which was completed on April 1, 2025. For further information, refer to Note 2 to the Condensed Consolidated Financial Statements.
Current wording
Corporate and Other included Ally Credit Card prior to the sale, which was completed on April 1, 2025. For further information, refer to Note 2 to the Consolidated Financial Statements in our 2025 Annual Report on Form 10-K.
Previous wording
Corporate and Other includes the financial results of our mortgage operations, which consist of our held-for-sale and held-for-investment consumer mortgage loan portfolios. Consumer mortgage originations ceased during the second quarter of 2025, which has and will continue to result in a gradual run-off of our consumer mortgage loan portfolio.
Current wording
Corporate and Other includes the financial results of our mortgage operations, which consist of our held-for-sale and held-for-investment consumer mortgage loan portfolios. Our direct-to-consumer conforming mortgages and certain direct-to-consumer non-conforming jumbo mortgages were originated as held-for-sale and sold. The remaining jumbo and LMI mortgages were originated as held-for-investment and are subserviced by a third party. Consumer mortgage originations ceased during the second quarter of 2025, which has and will continue to result in a gradual run-off of our consumer mortgage loan portfolio.
Previous wording
We employ an internal team of economists to enhance our planning and forecasting capabilities. This team conducts industry and market research, monitors economic risks, and helps support various forms of scenario planning. This group closely monitors macroeconomic trends, such as unemployment rate and sales of new light motor vehicles, given the nature of our business and the potential impacts on our exposure to risks. As of August 31, 2025, the unemployment rate increased to 4.3%. Sales of new light motor vehicles rose to an average annual rate of 16.4 million during July and August of 2025. Sales of new light motor vehicles remain below the pre-pandemic annual pace of 17.0 million in 2019, which has limited incoming used vehicle supply and supported used vehicle values.
Current wording
We employ an internal team of economists to enhance our planning and forecasting capabilities. This team conducts industry and market research, monitors economic risks, and helps support various forms of scenario planning and stress testing. This group closely monitors macroeconomic trends, such as unemployment rate and sales of new light motor vehicles, given the nature of our business and the potential impact on us given our exposure to these trends. As of March 31, 2026, the unemployment rate decreased to 4.3%. Sales of new light motor vehicles fell to an average annual rate of 15.6 million during the first quarter of 2026. Sales of new light motor vehicles remained below the pre-pandemic annual pace of 17.0 million in 2019, which has limited incoming used vehicle supply and supported used vehicle values.
Previous wording
Our baseline forecast utilized in calculating the quantitative allowance for loan losses as of September 30, 2025, anticipated the unemployment rate peaking at approximately 4.6% in the second quarter of 2026, before reverting to the historical mean of approximately 5.8% by the third quarter of 2028. Additionally, our baseline forecast anticipated deceleration of GDP growth as measured on a quarter-over-quarter seasonally adjusted annualized rate basis through the fourth quarter of 2025, followed by increases in GDP growth through the second quarter of 2026, before reverting to the historical mean of approximately 2.1% by the second quarter of 2028, and increases in new light vehicle sales on a seasonally adjusted annualized rate basis from more than 15 million units in the third quarter of 2025, to approximately 16 million units by the first quarter of 2027, before reverting to the historical mean of 15 million units by the third quarter of 2028. We also maintain a qualitative allowance framework to account for ongoing risks and volatility in the macroeconomic environment, including the impacts from tariffs, inflation, consumer financial health, and geopolitical uncertainty, that could adversely impact frequency of loss and LGD. Refer to the Risk Management section of this MD&A for further discussion on our allowance for loan losses.
Current wording
Our baseline forecast utilized in calculating the quantitative allowance for loan losses as of March 31, 2026, anticipated the unemployment rate peaking at approximately 4.6% in the second quarter of 2026, before reverting to the historical mean of approximately 5.7% by the first quarter of 2029. Additionally, our baseline forecast anticipated GDP growth slowing to 2.0% as measured on a quarter-over-quarter seasonally adjusted annualized rate basis in 2026 and 2027, before reverting to the historical mean of approximately 2.2% by the first quarter of 2029, and increases in new light vehicle sales on a seasonally adjusted annualized rate basis peaking at more than 16 million units in the fourth quarter of 2026, before reverting to the historical mean of 15 million units by the first quarter of 2029. We also maintain a qualitative allowance framework to account for ongoing risks and volatility in the macroeconomic environment, including the impacts from tariffs, inflation, which includes the effects of elevated energy prices, consumer financial health, and geopolitical conflict and related uncertainty, that could adversely impact frequency of loss and LGD. Refer to the Risk Management section of this MD&A for further discussion on our allowance for loan losses.
Previous wording
Macroeconomic risks remain elevated due to impacts from tariffs, inflation, and geopolitical uncertainty. Uncertainty around the scope and timing of changes to fiscal, regulatory, and trade policies, as well as impacts from recent legislative action (such as “H.R. 1”, commonly referred to as the “One Big Beautiful Bill Act”) could act as a source of volatility in our baseline forecasts, particularly with respect to real GDP growth, inflation, unemployment, vehicle sales, and other consumer measures, which could materially impact our risk profile. Announcements regarding changes in U.S. trade policies and practices, as well as counter tariffs and other reciprocal actions by other jurisdictions, have continued to contribute to increased volatility in financial markets and could adversely affect economic conditions. Risks related to the continuation or escalation of tariffs and other trading restrictions, particularly to the extent impacting the automobile industry and related sectors, and the potential impact on inflation, global trade, new and used automobile prices and sales, consumer purchasing power, customer creditworthiness and general economic conditions, could cause our financial results to differ from the anticipated results expressed or implied in any forward-looking statements.
Current wording
Macroeconomic risks remain elevated due to persistent inflationary pressures, uncertainty regarding the path of interest rates, evolving trade policies (including tariffs), and heightened geopolitical tensions. In addition, uncertainty around the scope and timing of changes to fiscal, regulatory, and trade policies, as well as the impacts from legislative and regulatory developments, could create volatility in our baseline forecasts, particularly with respect to real GDP growth, inflation, unemployment, vehicle sales, and other consumer measures, which could materially impact our risk profile.
Previous wording
In addition, recent announcements regarding changes in U.S. trade policies and practices, as well as counter tariffs and other reciprocal actions by other jurisdictions, have contributed to increased volatility in financial markets and adversely affected economic conditions. Risks related to the continuation or escalation of tariffs and other trading restrictions, particularly to the extent impacting the automobile industry and related sectors, and the potential impact on inflation, global trade, new and used automobile sales, consumer purchasing power, customer creditworthiness and general economic conditions, could cause our financial results to differ from the anticipated results expressed or implied in any forward-looking statements.
Current wording
Risks associated with elevated interest rates, including their effects on funding costs, consumer affordability, and credit performance, as well as uncertainty regarding the timing and magnitude of potential monetary policy easing, could further contribute to economic volatility. Risks related to the continuation or escalation of tariffs and other trading restrictions, particularly those affecting the automobile industry and related sectors, and their potential effects on inflation, global trade, new and used automobile prices and sales, consumer purchasing power, customer creditworthiness and general economic conditions, could cause our financial results to differ from the anticipated results expressed or implied in any forward-looking statements.
Previous wording
(b)The common dividend payout ratio was calculated using basic earnings per common share.
Current wording
(b)During the three months ended March 31, 2026, the common dividend payout ratio was calculated using basic earnings per common share. During the three months ended March 31, 2025, we paid dividends of $0.30 per share and incurred a loss of $0.82 per share. Due to the relationship of this calculation and the net loss incurred, this ratio is not meaningful for the three months ended March 31, 2025.
Previous wording
We earned net income from continuing operations of $398 million and $525 million for the three months and nine months ended September 30, 2025, respectively, compared to $198 million and $560 million for the three months and nine months ended September 30, 2024. The increase in income for the three months ended September 30, 2025, was primarily driven by lower provision for credit losses and higher net financing revenue and other interest income, partially offset by an increase in tax expense from continuing operations. The decrease in income for the nine months ended September 30, 2025, was primarily driven by other loss on investments, net, and higher total noninterest expense, partially offset by lower provision for credit losses and higher net financing revenue and other interest income.
Current wording
We earned net income from continuing operations of $319 million for the three months ended March 31, 2026, compared to a loss of $225 million for the three months ended March 31, 2025. The increase for the three months ended March 31, 2026, was primarily driven by higher total other revenue, lower total noninterest expense, and lower total interest expense. The increase was partially offset by higher provision for credit losses.
Previous wording
Net financing revenue and other interest income increased $64 million and $73 million for the three months and nine months ended September 30, 2025, respectively, as compared to the same periods in 2024. The increases for the three months and nine months ended September 30, 2025, were primarily driven by lower total interest expense in response to lower benchmark interest rates, which decreased our cost of funds associated with our deposit liabilities. The increases were partially offset by the sale of Ally Credit Card, which closed on April 1, 2025, and unfavorable remarketing performance on our off-lease vehicles resulting from lower auction prices on the sale of specific vehicle models and lower termination volume.
Current wording
Net financing revenue and other interest income increased $111 million for the three months ended March 31, 2026, compared to the three months ended March 31, 2025. The increase was primarily driven by lower total interest expense in response to lower benchmark interest rates, which decreased our cost of funds associated with our deposit liabilities. The increase was partially offset by the sale of Ally Credit Card, which closed on April 1, 2025.
Previous wording
Other income, net of losses, decreased $6 million for the three months ended September 30, 2025, and increased $26 million for the nine months ended September 30, 2025, compared to the same periods in 2024. The decrease for the three months ended September 30, 2025, was primarily due to lower late charges and other administrative fees from the sale of Ally Credit Card, partially offset by favorable performance from equity-method investments. The increase for the nine months ended September 30, 2025, was primarily driven by favorable performance from equity-method investments, partially offset by lower late charges and other administrative fees.
Current wording
Other income, net of losses decreased $20 million for the three months ended March 31, 2026, compared to the three months ended March 31, 2025. The decrease was primarily driven by lower late charges and other administrative fees as a result of the sale of Ally Credit Card, which closed on April 1, 2025.
Previous wording
The provision for credit losses decreased $230 million and $619 million for the three months and nine months ended September 30, 2025, respectively, compared to the three months and nine months ended September 30, 2024. The decrease in provision for credit losses for the three months ended September 30, 2025, was primarily driven by lower net charge-offs within our consumer other portfolio due to the sale of Ally Credit Card and lower net charge-offs within our consumer automotive portfolio. The decrease in provision for credit losses for the nine months ended September 30, 2025, was primarily driven by a provision benefit associated with the sale of Ally Credit Card and lower net charge-offs within our consumer automotive portfolio. Refer to the Risk Management section of this MD&A for further discussion on our provision for credit losses.
Current wording
The provision for credit losses increased $276 million for the three months ended March 31, 2026, compared to the three months ended March 31, 2025. The increase was primarily driven by a provision benefit within our consumer other portfolio associated with the transfer of Ally Credit Card to held-for-sale that occurred during the three months ended March 31, 2025, and an increase in portfolio growth within our consumer automotive portfolio during the three months ended March 31, 2026. The increase was partially offset by lower net charge-offs within our consumer other portfolio as a result of the sale of Ally Credit Card and lower net charge-offs within our consumer automotive portfolio. Refer to the Risk Management section of this MD&A for further discussion on our provision for credit losses.
Previous wording
Noninterest expense increased $15 million and $317 million for the three months and nine months ended September 30, 2025, respectively, as compared to the same periods in 2024. The increase for the three months ended September 30, 2025, was primarily due to higher compensation and benefits, and higher insurance losses and loss adjustment expenses from insurance portfolio growth. The increase for the nine months ended September 30, 2025, was primarily driven by the impairment of goodwill associated with the sale of Ally Credit Card, in addition to higher insurance losses and loss adjustment expenses from our vehicle inventory insurance business. The increase was partially offset by lower operating expenses and lower compensation and benefits.
Current wording
Total noninterest expense decreased $399 million for the three months ended March 31, 2026, compared to the three months ended March 31, 2025. The decrease was primarily driven by the impairment of goodwill associated with the transfer of Ally Credit Card to held-for-sale during the three months ended March 31, 2025. Additionally, the decrease was driven by lower other operating expenses due to the sale of Ally Credit Card and lower insurance losses and loss adjustment expenses from our vehicle inventory insurance business.
Previous wording
We recognized total income tax expense from continuing operations of $115 million and $140 million for the three months and nine months ended September 30, 2025, respectively, compared to $67 million and $167 million for the three months and nine months ended September 30, 2024. The increase in income tax expense for the three months ended September 30, 2025, compared to the same period in 2024, was primarily due to the tax effects of an increase in pretax earnings during the three months ended September 30, 2025. The decrease in income tax expense for the nine months ended September 30, 2025, compared to the same period in 2024, was primarily due to the tax effects of a decrease in pre-tax earnings during the nine months ended September 30, 2025.
Current wording
We recognized total income tax expense from continuing operations of $81 million for the three months ended March 31, 2026, compared to an income tax benefit of $59 million for the three months ended March 31, 2025. The increase in income tax expense for the three months ended March 31, 2026, was primarily attributable to the tax effects of a loss on investments recognized as a result of our balance sheet repositioning of a portion of our available-for-sale securities during the three months ended March 31, 2025.
Previous wording
Our Automotive Finance operations earned income from continuing operations before income tax expense of $421 million and $1.3 billion for the three months and nine months ended September 30, 2025, respectively, compared to $355 million and $1.4 billion for the three months and nine months ended September 30, 2024. For the three months ended September 30, 2025, the increase was primarily due to lower provision for credit losses, partially offset by higher total noninterest expense and higher net depreciation expense on operating lease assets. For the nine months ended September 30, 2025, the decrease was primarily due to higher net depreciation expense on operating lease assets and higher total noninterest expense, partially offset by lower provision for credit losses.
Current wording
Our Automotive Finance operations earned income from continuing operations before income tax expense of $336 million for the three months ended March 31, 2026, compared to $375 million for the three months ended March 31, 2025. The decrease for the three months ended March 31, 2026, was primarily due to higher interest expense, higher total noninterest expense, and higher provision for credit losses. The decrease was partially offset by higher total financing revenue and other interest income.
Previous wording
Consumer automotive loan financing revenue and other interest income increased $72 million and $223 million for the three months and nine months ended September 30, 2025, respectively, compared to the same periods in 2024. The increases were primarily driven by higher average consumer assets resulting from origination growth and higher portfolio yields as higher yielding originations replace maturity of lower yielding assets resulting from pricing actions.
Current wording
Consumer automotive loan financing revenue and other interest income increased $82 million for the three months ended March 31, 2026, compared to the three months ended March 31, 2025. The increase was primarily driven by higher average consumer assets resulting from origination growth and higher portfolio yields as higher yielding originations replace maturity of lower yielding assets resulting from pricing actions due to our deliberate focus on maximizing risk-adjusted returns across our credit tiers.
Previous wording
Commercial loan financing revenue and other interest income decreased $94 million and $270 million for the three months and nine months ended September 30, 2025, respectively, compared to the three months and nine months ended September 30, 2024. The decreases were primarily due to lower average outstanding wholesale floorplan balances within the Stellantis dealer channel and lower yield driven by lower benchmark interest rates, as our commercial automotive loans are generally variable-rate.
Current wording
Commercial loan financing revenue and other interest income decreased $9 million for the three months ended March 31, 2026, compared to the three months ended March 31, 2025. The decrease was primarily due to lower yield driven by lower benchmark interest rates, as our commercial automotive loans are generally variable-rate. The decrease was partially offset by higher average outstanding commercial balances.
Previous wording
Interest expense increased $27 million and $110 million for the three months and nine months ended September 30, 2025, respectively, compared to the same periods in 2024. The increases for the three months and nine months ended September 30, 2025, were primarily driven by higher funding costs as a result of a gradual shift in the composition of our consumer portfolios to loans and leases originated during a higher interest rate environment.
Current wording
Interest expense increased $63 million for the three months ended March 31, 2026, compared to the three months ended March 31, 2025. The increase was primarily driven by higher asset balances and higher funding costs as a result of a gradual shift in the composition of our consumer portfolios to loans and leases originated during a higher interest rate environment.
Previous wording
Total net operating lease revenue decreased $7 million and $102 million for the three months and nine months ended September 30, 2025, respectively, compared to the same periods in 2024. The decreases in net operating lease revenue for the three months and nine months ended September 30, 2025, were driven by lower remarketing performance. We recognized net remarketing gains of $1 million and net remarketing losses of $18 million for the three months and nine months ended September 30, 2025, respectively, compared to net remarketing gains of $24 million and $129 million for the three months and nine months ended September 30, 2024. The decreases in remarketing gains for the three months and nine months ended September 30, 2025, were primarily driven by lower auction prices on the sale of specific vehicle models and lower termination volume. Refer to the Operating Lease Residual Risk Management section of this MD&A for further discussion.
Current wording
Total net operating lease revenue increased $13 million for the three months ended March 31, 2026, compared to the three months ended March 31, 2025. The increase in net operating lease revenue was driven by higher average operating lease assets and lower net remarketing losses. We recognized net remarketing losses of $10 million for the three months ended March 31, 2026, compared to net remarketing losses of $19 million for the three months ended March 31, 2025. The decrease in remarketing losses for the three months ended March 31, 2026, was primarily driven by lower termination volume and slightly improved remarketing performance. In the near term, our ability to optimize remarketing gains may be limited due to used vehicle market pressures on certain plug-in hybrid vehicles following the elimination of federal electric-vehicle tax credits for both new and used vehicles, vehicle recalls, and increased OEM marketing incentives on new vehicles. Additionally, our operating lease portfolio mix has shifted towards contracts with a residual value guarantee, and towards a more diverse mix of OEMs for contracts without a residual value guarantee, which may reduce volatility in remarketing gains and losses in future years. Refer to the Operating Lease Residual Risk Management section of this MD&A for further discussion.
Previous wording
(c)Excludes the effects of derivative financial instruments designated as hedges, which is included within Corporate and Other. Including the impact of hedging activities, the yield was 9.27% and 9.24% for the three months and nine months ended September 30, 2025, respectively, and 9.29% and 9.18% for the three months and nine months ended September 30, 2024.
Current wording
(c)Excludes the effects of derivative financial instruments designated as hedges, which is included within Corporate and Other. Including the impact of hedging activities, the yield was 9.28% and 9.20% for the three months ended March 31, 2026, and 2025, respectively.
Previous wording
(d)Excludes the effects of derivative financial instruments designated as hedges, which is included within Corporate and Other. Including the impact of hedging activities, the yield was 6.42% and 6.44% for the three months and nine months ended September 30, 2025, respectively, and 7.68% and 7.67% for the three months and nine months ended September 30, 2024.
Current wording
(d)Excludes the effects of derivative financial instruments designated as hedges, which is included within Corporate and Other. Including the impact of hedging activities, the yield was 5.70% and 6.50%, for the three months ended March 31, 2026, and 2025, respectively.
Previous wording
(e)Consists primarily of automotive dealer term loans, including those to finance dealership land and buildings, and dealer fleet financing.
Current wording
(e)Consists primarily of automotive dealer term loans, including those to finance dealership land and buildings, and dealer and other fleet financing.
Showing the first 40 of 145 pairs. Open the source sections for the rest.
Rearranged current paragraphs (3)
Current report — wording carried from elsewhere
Total noninterest expense increased $38 million for the three months ended March 31, 2026, compared to the three months ended March 31, 2025. The increase was primarily due to higher direct and allocated expenses related to the growth of the business.
Current report — wording carried from elsewhere
(b)Refer to Note 1 to the Consolidated Financial Statements in our 2025 Annual Report on Form 10-K for information regarding our charge-off policies.
Current report — wording carried from elsewhere
(c)Coverage percentages are based on the allowance for loan losses related to finance receivables and loans excluding those loans held at fair value as a percentage of the amortized cost basis.
Rearranged previous paragraphs (10)
Previous report — wording carried elsewhere
(a)Includes automotive manufacturers with a direct-to-consumer model.
Previous report — wording carried elsewhere
(a)Unscored are primarily CSG contracts with business entities that have no FICO® Score.
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During the nine months ended September 30, 2025, we raised $550 million through the issuance of credit-linked notes. The proceeds from this issuance constitute prefunded credit protection for mezzanine tranches of the reference portfolio and are recognized as restricted cash and cash equivalents in other assets on our Condensed Consolidated Balance Sheet. This transaction is structured to enable us to apply the securitization framework under U.S. Basel III when determining RWA for our retained exposure.
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(a)Average balances are calculated using an average daily balance methodology. Refer to Note 1 to the Consolidated Financial Statements in our 2024 Annual Report on Form 10-K for further information regarding our basis of presentation and significant accounting policies, which are in accordance with U.S. GAAP.
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(b)Includes restricted interest-bearing cash and cash equivalents recorded in other assets on the Condensed Consolidated Balance Sheet.
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(c)Includes interest expense related to margin received on derivative contracts of $4 million and $17 million for the nine months ended September 30, 2025, and September 30, 2024, respectively. Excluding this expense, the annualized yield was 4.33% and 5.33% for the nine months ended September 30, 2025, and September 30, 2024, respectively.
Previous report — wording carried elsewhere
(d)Includes the effects of derivative financial instruments designated as hedges. Refer to Note 19 to the Condensed Consolidated Financial Statements for further information about the effects of our hedging activities.
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(e)Nonperforming finance receivables and loans are included in the average balances. For information on our accounting policies regarding nonperforming status, refer to Note 1 to the Consolidated Financial Statements in our 2024 Annual Report on Form 10-K.
Previous report — wording carried elsewhere
(j)Net interest spread represents the difference between the rate on total interest-earning assets and the rate on total interest-bearing liabilities.
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(k)Net yield on interest-earning assets represents annualized net financing revenue and other interest income as a percentage of total interest-earning assets.