Ally Financial Inc.
For the period ended Sep 30, 2026. Filed Nov 2, 2026.
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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.
Sep 30, 2026 · Filed Nov 2, 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 2026-06-30; filed 2026-07-23.
0000040729-26-000017
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2026-09-30; filed 2026-11-02.
0000040729-26-000023
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 426 previous paragraphs and 414 current paragraphs.
283 unchanged; 124 reworded; 7 added; 17 removed; 2 previous and 0 current paragraphs rearranged.
Tables are not compared: 58 previous and 58 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 (7)
Current report
The provision for credit losses increased $101 million and $190 million for the three months and nine months ended September 30, 2026, respectively, compared to the three months and nine months ended September 30, 2025. The increases were primarily driven by portfolio growth within our consumer automotive portfolio. The increase for the nine months ended September 30, 2026, was partially offset by lower net charge-offs in 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
Interest and dividends on investment securities, cash and cash equivalents, and other earning assets, net was $42 million and $116 million for the three months and nine months ended September 30, 2026, respectively, compared to $33 million and $93 million for the three months and nine months ended September 30, 2025. The increases for the three months and nine months ended September 30, 2026, were primarily due to investing in debt securities at higher interest rates as opportunities were available in the market.
Current report
$28 million and $68 million for the three months and nine months ended September 30, 2025. The decreases in other gain on investments, net for the three months and nine months ended September 30, 2026, were driven by unfavorable unrealized performance on equity securities.
Current report
(b)Commercial includes $24 million of allowance for loan losses recognized on PCD loans acquired during the three months ended September 30, 2025.
Current report
(c)Commercial includes $24 million of allowance for loan losses recognized on PCD loans acquired during the nine months ended September 30, 2025.
Current report
For more information on our liquidity risk management and funding strategy, refer to the section titled Liquidity Management, Funding, and Regulatory Capital within the MD&A of our 2025 Annual Report on Form 10-K.
Current report
•We raised $750 million through the issuance of unsecured senior notes.
Removed paragraphs (17)
Previous report
The provision for credit losses increased $55 million and $89 million for the three months and six months ended June 30, 2026, respectively, compared to the three months and six months ended June 30, 2025. The increases were primarily driven by portfolio growth within our consumer automotive portfolio, partially offset by lower net-charge-offs. Refer to the Risk Management section of this MD&A for further discussion on our provision for credit losses.
Previous report
Insurance premiums and service revenue earned was $368 million and $728 million for the three months and six months ended June 30, 2026, respectively, compared to $359 million and $723 million for the three months and six months ended June 30, 2025. The increases for the three months and six months ended June 30, 2026, were primarily due to higher GAP, other ancillary F&I products and P&C volume. The increases were partially offset by lower VSC volume.
Previous report
The ALCO, chaired by the Corporate Treasurer, is responsible for overseeing our funding and liquidity strategies. Corporate Treasury is responsible for managing our liquidity positions within limits approved by the RC. As part of managing liquidity risk, Corporate Treasury prepares monthly forecasts depicting anticipated funding needs and sources of funds, executes our funding strategies, and manages liquidity under normal as well as more severely stressed macroeconomic environments. Oversight and monitoring of liquidity risk are provided by Independent Risk Management.
Previous report
The monthly liquidity forecasts demonstrate our ability to generate and obtain adequate amounts of cash to meet loan and operating lease demand, debt maturities, deposit withdrawals, and other cash commitments under normal operating conditions throughout the forecast horizon (currently through December 2028). Refer to Note 12 to the Condensed Consolidated Financial Statements for a summary of the scheduled maturity of long-term debt as of June 30, 2026.
Previous report
Funding Strategy
Previous report
Liquidity and ongoing profitability are largely dependent on the timely and cost-effective access to retail deposits and funding in various segments of the capital markets. We focus on maintaining diversified funding sources across a broad base of depositors, lenders, and investors to meet liquidity needs throughout different economic cycles, including periods of financial distress. These funding sources include retail and brokered deposits, public and private asset-backed securitizations, unsecured debt, FHLB advances, and repurchase agreements. Our access to diversified funding sources enhances funding flexibility and results in a more cost-effective funding strategy over the long term. We evaluate funding markets on an ongoing basis to achieve an appropriate balance of unsecured and secured funding sources and maturity profiles.
Previous report
We manage our funding to achieve a well-balanced portfolio across a spectrum of risk, maturity, and cost-of-funds characteristics. Optimizing funding at Ally Bank continues to be a key part of our long-term liquidity strategy. We optimize our funding sources at Ally Bank by prioritizing retail deposits and maintaining access to diversified funding sources. Retail deposits are complemented by brokered deposits, repurchase agreements, securitizations, and access to FHLB funding.
Previous report
Assets are primarily originated by Ally Bank to utilize retail deposit funding. This allows us to use bank funding for substantially all our automotive finance and other assets and to provide a sustainable long-term funding channel for the business, while also improving the cost of funds for the enterprise.
Previous report
Our liquidity stress testing is designed to allow us to operate our businesses and to meet our contractual and contingent obligations, including unsecured debt maturities, for at least 12 months, assuming our normal access to funding is disrupted by severe market-wide and enterprise-specific events. We maintain available liquidity in the form of cash, unencumbered highly liquid securities, available FHLB capacity, and the FRB Discount Window capacity. This available liquidity is held at various legal entities and is subject to regulatory restrictions and tax implications that may limit our ability to transfer funds across entities.
Previous report
Capital Planning and Stress Tests
Previous report
Under the Tailoring Rules, we are generally subject to supervisory stress testing on a two-year cycle and exempted from mandated company-run capital stress testing requirements. We are also required to submit an annual capital plan to the FRB. Our annual capital plan must include an assessment of our expected uses and sources of capital and a description of all planned capital actions over a nine-quarter planning horizon, including any issuance of a debt or equity capital instrument, any dividend or other capital distribution, and any similar action that the FRB determines could have an impact on our capital. The plan must also include a detailed description of our process for assessing capital adequacy, including a discussion of how we, under expected and stressful conditions, will maintain capital commensurate with our risks and above the minimum regulatory capital ratios, will serve as a source of strength to Ally Bank, and will maintain sufficient capital to continue our operations by maintaining ready access to funding, meeting our obligations to creditors and other counterparties, and continuing to serve as a credit intermediary.
Previous report
The Tailoring Rules align capital planning, supervisory stress testing, and stress capital buffer requirements for large banking organizations, like Ally. As a Category IV firm, Ally is expected to have the ability to elect to participate in the supervisory stress test—and receive a correspondingly updated stress capital buffer requirement—in a year in which Ally would not generally be subject to the supervisory stress test. Refer to the section titled Basel Capital Framework in Note 17 to the Condensed Consolidated Financial Statements for further discussion about our stress capital buffer requirements. During a year in which Ally does not undergo a supervisory stress test, we would receive an updated stress capital buffer requirement only to reflect our updated planned common-stock dividends. Ally did not elect to participate in the 2023 or 2025 supervisory stress tests, but was subject to the 2024 supervisory stress test.
Previous report
We submitted our 2024 capital plan to the FRB in April 2024, and received an updated preliminary stress capital buffer requirement from the FRB in June 2024 of 2.6%. The updated 2.6% stress capital buffer requirement was finalized in August 2024, and became effective in October 2024. We submitted our 2025 capital plan to the FRB in April 2025, and received in June 2025 an updated preliminary stress capital buffer requirement that remained unchanged at 2.6%. The 2.6% stress capital buffer requirement was finalized in August 2025, and became effective in October 2025.
Previous report
In February 2026, the FRB issued final stress test scenarios for the 2026 supervisory stress test, and announced it intends to maintain stress capital buffer requirements at their current level until 2027 when new requirements can be calculated based on models that take public feedback into consideration. Whether and when final rules related to stress-testing proposals may be adopted and take effect, as well as what changes to the proposed rules may be reflected in any such final rules, remain unclear. We submitted our 2026 capital plan to the FRB in April 2026.
Previous report
In December 2024, we accessed the unsecured debt capital markets and issued $500 million of subordinated notes, which qualify for us as Tier 2 capital for Ally under U.S. Basel III. During the second quarter of 2026, we issued $1.0 billion of Series D Preferred Stock, which qualifies for us as additional Tier 1 capital under U.S. Basel III. The proceeds from this issuance were used to support the redemption of all of our Series B Preferred Stock then outstanding.
Previous report
During the years ended December 31, 2025, and 2024, we accessed the debt capital markets and issued an aggregate of $1.1 billion and $770 million, respectively, of credit-linked notes based on combined reference portfolios of $10.0 billion and $7.0 billion of consumer automotive loans. During the second quarter of 2026, we issued an additional $550 million of credit-linked notes based on a reference portfolio of $5.0 billion of consumer automotive loans. The proceeds from these credit-linked notes issuances constitute prefunded credit protection for mezzanine tranches of the respective reference portfolio. These transactions are structured to enable us to apply the securitization framework under U.S. Basel III when determining RWA for our retained exposure, which recognizes the credit risk mitigation benefits and generally provides lower risk weights relative to those assigned to consumer automotive loans that are not securitized. As of June 30, 2026, and December 31, 2025, $13.9 billion and $12.1 billion, respectively, of our consumer automotive loans and related exposures were included as reference assets in these credit-linked notes transactions.
Previous report
In December 2025, our Board authorized a share repurchase program, permitting us to repurchase up to $2.0 billion of our common stock under a multi-year program without a set expiration date. Our ability to make capital distributions, including our ability to pay dividends or repurchase shares of our common stock, will continue to be subject to the FRB’s review and our internal governance requirements, including approval by our Board. The amount and size of any future dividends and share repurchases also will be subject to various factors, including Ally’s capital and liquidity positions, accounting and regulatory considerations (including any restrictions that may be imposed by the FRB and any changes to capital, liquidity, and other regulatory requirements that may be proposed or adopted by the U.S. banking agencies), Ally’s financial and operational performance, alternative uses of capital, the trading price of Ally’s common stock, and general market conditions. The share repurchase program does not obligate Ally to acquire a specific dollar amount or number of shares, and may be extended, modified, or discontinued at any time.
Reworded paragraphs (124)
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, 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 six months ended June 30, 2026, $1.6 billion of our consumer automotive retail loan originations and purchases, and $69 million of our operating lease o…
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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 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 nine months ended September 30, 2026, $2.5 billion of our consumer automotive retail loan originations and purchases, and $70 million of our operating lease originations and purchase…
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Previous 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.
Current wording
Our dealer F&I products are primarily distributed indirectly through the automotive dealer network, which includes approximately 1,600 dealer relationships 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 560,000 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 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.
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. For the non-automotive insurance risks, we typically perform services as an underwriting carrier for 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 21,600 active dealer relationships as of June 30, 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 June 30, 2026.
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 approximately 21,600 active dealer relationships as of September 30, 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 September 30, 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 leveraged asset-based and cash flow/enterprise value loans. Our Corporate Finance operations had $13.9 billion of assets at June 30, 2026, and generated $293 million of total net revenue during the six months ended June 30, 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.
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 $16.1 billion of assets at September 30, 2026, and generated $446 million of total net revenue during the nine months ended September 30, 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
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 June 30, 2026, the unemployment rate decreased to 4.2%. Sales of new light motor vehicles rose to an average annual rate of 16.3 million during the second 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.
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, due to the nature of our business and the potential impact on us given our exposure to these trends. As of September 30, 2026, the unemployment rate remained stable at 4.2%. Sales of new light motor vehicles fell to an average annual rate of 16.2 million during the third 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 June 30, 2026, anticipated the unemployment rate peaking at approximately 4.5% in the third quarter of 2026, before reverting to the historical mean of approximately 5.7% by the second quarter of 2029. Additionally, our baseline forecast anticipated GDP growth increasing to 2.2% as measured on a quarter-over-quarter seasonally adjusted annualized rate basis in 2027, before reverting to the historical mean of approximately 2.1% by the second 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 third quarter of 2027, before reverting to the historical mean of 15 million units by the second 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.
Current wording
Our baseline forecast utilized in calculating the quantitative allowance for loan losses as of September 30, 2026, anticipated the unemployment rate peaking at approximately 4.4% in the first quarter of 2027, before reverting to the historical mean of approximately 5.7% by the third quarter of 2029. Additionally, our baseline forecast anticipated GDP growth decreasing to 1.9% as measured on a quarter-over-quarter seasonally adjusted annualized rate basis in 2028, before reverting to the historical mean of approximately 2.1% by the first quarter of 2029, and increases in new light vehicle sales on a seasonally adjusted annualized rate basis to a peak of more than 16 million units in the third quarter of 2027, before reverting to the historical mean of approximately 15 million units by the third quarter of 2029. We also maintain a qualitative allowance framework to account for ongoing risks and volatility in the macroeconomic environment, including the impacts of tariffs, persistent inflation, including the effects of elevated energy prices, elevated interest rates, consumer financial health, and geopolitical conflict and related uncertainty, each of which 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 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.
Current wording
Macroeconomic risks remain elevated due to persistent inflationary pressures, elevated energy prices, uncertainty regarding the path of interest rates and monetary policy, 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 of 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
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 increases 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 wording
Risks related to geopolitical developments, including ongoing conflicts in the Middle East, could disrupt global supply chains, energy markets, and financial markets, and adversely affect economic conditions. For example, rising gasoline prices could suppress demand for vehicles which could reduce used vehicle values. Sustained increases 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.
Previous 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.
Current wording
Risks associated with elevated interest rates, including their effects on funding costs, consumer affordability, and credit performance, as well as the possibility of further monetary policy tightening and uncertainty regarding the timing and magnitude of future interest rate changes, could further contribute to economic volatility. Persistent inflation, lower savings rates, negative real income growth, and declining consumer confidence could reduce consumers’ financial flexibility and increase their sensitivity to unemployment and other economic shocks. Risks related to the continuation or escalation of tariffs and other trade 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
We earned net income from continuing operations of $410 million and $729 million for the three months and six months ended June 30, 2026, respectively, compared to $352 million and $127 million for the three months and six months ended June 30, 2025. The increase for the three months ended June 30, 2026, was primarily driven by higher net financing revenue and other interest income and higher total other revenue, partially offset by higher total noninterest expense and higher provision expense. The increase for the six months ended June 30, 2026, was primarily driven by higher total other revenue, higher net financing revenue and other interest income and lower total noninterest expense, partially offset by higher provision expense.
Current wording
We earned net income from continuing operations of $433 million and $1.2 billion for the three months and nine months ended September 30, 2026, respectively, compared to $398 million and $525 million for the three months and nine months ended September 30, 2025. The increase for the three months ended September 30, 2026, was primarily driven by higher net financing revenue and other interest income, partially offset by higher provision expense. The increase for the nine months ended September 30, 2026, was primarily driven by higher total other revenue, higher net financing revenue and other interest income and lower total noninterest expense, partially offset by higher provision for credit losses.
Previous wording
Net financing revenue and other interest income increased $168 million and $279 million for the three months and six months ended June 30, 2026, respectively, compared to the three months and six months ended June 30, 2025. The increases were primarily driven by higher total financing revenue and other interest income as a result of higher average earning assets. Additionally, the increases were 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 for the six months ended June 30, 2026, was partially offset by the sale of Ally Credit Card, which closed on April 1, 2025.
Current wording
Net financing revenue and other interest income increased $164 million and $443 million for the three months and nine months ended September 30, 2026, respectively, compared to the same periods in 2025. The increases were primarily driven by higher total financing revenue and other interest income as a result of higher average earning assets. Additionally, the increases were 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 for the nine months ended September 30, 2026, was partially offset by the sale of Ally Credit Card, which closed on April 1, 2025.
Previous wording
Other gain on investments, net, was $76 million and $55 million for the three months and six months ended June 30, 2026, respectively, compared to a gain of $61 million and a loss of $438 million for the three months and six months ended June 30, 2025. The increase for the three months ended June 30, 2026, was primarily due to favorable performance from equity securities. The increase for the six months ended June 30, 2026, was primarily attributable to a balance sheet repositioning of a portion of our available-for-sale securities during the six months ended June 30, 2025.
Current wording
Other gain on investments, net, was $34 million and $89 million for the three months and nine months ended September 30, 2026, respectively, compared to a gain of $56 million and a loss of $382 million for the three months and nine months ended September 30, 2025. The decrease in other gain on investments, net for the three months ended September 30, 2026, was driven by lower unrealized gains on equity securities. The increase for the nine months ended September 30, 2026, was primarily attributable to a balance sheet repositioning of a portion of our available-for-sale securities during the nine months ended September 30, 2025.
Previous wording
Other income, net of losses increased $16 million for the three months ended June 30, 2026, and decreased $4 million for the six months ended June 30, 2026, compared to the three months and six months ended June 30, 2025. The increase for the three months ended June 30, 2026, was primarily driven by increased service fee income. The decrease for the six months ended June 30, 2026, was primarily driven by lower late charges and other administrative fees as a result of the sale of Ally Credit Card and unfavorable performance from equity-method investments. The decrease was partially offset by increased service fee income.
Current wording
Other income, net of losses increased $23 million and $19 million for the three months and nine months ended September 30, 2026, respectively, compared to the three months and nine months ended September 30, 2025. The increases for the three months and nine months ended September 30, 2026, were primarily driven by service fee income resulting from the growth in financial assets transferred to a nonconsolidated SPE for which we retain the ongoing right to service the assets. The increase for the nine months ended September 30, 2026, was partially offset by lower late charges and other administrative fees as a result of the sale of Ally Credit Card and unfavorable performance from equity-method investments.
Previous wording
The provision for credit losses increased $46 million and $322 million for the three months and six months ended June 30, 2026, respectively, compared to the three months and six months ended June 30, 2025. The increase in provision for credit losses for the three months ended June 30, 2026, was primarily driven by portfolio growth within our consumer automotive portfolio, partially offset by lower net charge-offs within our consumer automotive portfolio. The increase in provision for credit losses for the six months ended June 30, 2026, was primarily driven by a provision benefit within our consumer other portfolio associated with the sale of Ally Credit Card that occurred during the six months ended June 30, 2025. The increase in provision for credit losses for the six months ended June 30, 2026, 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.
Current wording
The provision for credit losses increased $114 million and $436 million for the three months and nine months ended September 30, 2026, respectively, compared to the three months and nine months ended September 30, 2025. The increase in provision for credit losses for the three months ended September 30, 2026, was primarily driven by portfolio growth within our consumer automotive portfolio. The increase in provision for credit losses for the nine months ended September 30, 2026, was primarily driven by a provision benefit within our consumer other portfolio associated with the sale of Ally Credit Card that occurred during the nine months ended September 30, 2025, and portfolio growth within our consumer automotive portfolio for the nine months ended September 30, 2026. The increase in provision for credit losses for the nine months ended September 30, 2026, 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 $57 million for the three months ended June 30, 2026, and decreased $342 million for the six months ended June 30, 2026, compared to the three months and six months ended June 30, 2025. The increase for the three months ended June 30, 2026, was primarily driven by higher compensation and benefits and higher operating expenses. The decrease for the six months ended June 30, 2026, was primarily driven by the impairment of goodwill associated with the sale of Ally Credit Card during the six months ended June 30, 2025.
Current wording
Noninterest expense decreased $4 million and $346 million for the three months and nine months ended September 30, 2026, respectively, compared to the three months and nine months ended September 30, 2025. The decrease for the three months ended September 30, 2026, was primarily driven by lower compensation and benefits expense and insurance losses and loss adjustment expenses, partially offset by higher operating expenses. The decrease for the nine months ended September 30, 2026, was primarily driven by the impairment of goodwill associated with the sale of Ally Credit Card during the nine months ended September 30, 2025, as well as lower insurance losses and loss adjustment expenses during the nine months ended September 30, 2026.
Previous wording
We recognized total income tax expense from continuing operations of $127 million and $208 million for the three months and six months ended June 30, 2026, respectively, compared to income tax expense of $84 million and $25 million for the same periods in 2025. The increase in income tax expense for the three months ended June 30, 2026, was primarily attributable to the tax effects of an increase in pretax earnings, and an income tax benefit from the revaluation of our deferred tax assets and liabilities of a California tax law enacted during the second quarter of 2025. The increase for the six months ended June 30, 2026, was primarily attributable to the tax effects of an increase in pretax earnings, as well as 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 six months ended June 30, 2025.
Current wording
We recognized total income tax expense from continuing operations of $134 million and $342 million for the three months and nine months ended September 30, 2026, respectively, compared to income tax expense of $115 million and $140 million for the same periods in 2025. The increase in income tax expense for the three months ended September 30, 2026, was primarily attributable to the tax effects of an increase in pretax earnings during the three months ended September 30, 2026. The increase for the nine months ended September 30, 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 nine months ended September 30, 2025, as well as the tax effects of an increase in pretax earnings during the nine months ended September 30, 2026.
Previous wording
(a)Includes net remarketing losses of $2 million and $12 million for the three months and six months ended June 30, 2026, respectively, compared to net remarketing losses of $19 million for the six months ended June 30, 2025.
Current wording
(a)Includes net remarketing losses of $16 million and $28 million for the three months and nine months ended September 30, 2026, respectively, compared to net remarketing gains of $1 million and net remarketing losses of $18 million for the three months and nine months ended September 30, 2025.
Previous wording
Our Automotive Finance operations earned income from continuing operations before income tax expense of $410 million and $746 million for the three months and six months ended June 30, 2026, respectively, compared to $472 million and $847 million for the three months and six months ended June 30, 2025. The decreases for the three months and six months ended June 30, 2026, were primarily due to higher interest expense, higher provision for credit losses, and higher total noninterest expense, which were partially offset by higher total financing revenue and other interest income.
Current wording
Our Automotive Finance operations earned income from continuing operations before income tax expense of $337 million and $1.1 billion for the three months and nine months ended September 30, 2026, respectively, compared to $421 million and $1.3 billion for the three months and nine months ended September 30, 2025. The decreases for the three months and nine months ended September 30, 2026, were primarily due to higher interest expense, higher provision for credit losses, and higher total noninterest expense, which were partially offset by higher total financing revenue and other interest income.
Previous wording
Consumer automotive loan financing revenue and other interest income increased $95 million and $177 million for the three months and six months ended June 30, 2026, respectively, compared to the three months and six months ended June 30, 2025. The increases were primarily driven by higher average consumer assets resulting from origination growth, as well as higher portfolio yields, reflecting the replacement of maturing lower-yielding assets with higher-yielding originations following pricing actions designed to maximize risk-adjusted returns across credit tiers.
Current wording
Consumer automotive loan financing revenue and other interest income increased $116 million and $293 million for the three months and nine months ended September 30, 2026, respectively, compared to the three months and nine months ended September 30, 2025. The increases for the three months and nine months ended September 30, 2026, were primarily driven by higher average consumer assets resulting from origination growth. The increase for the nine months ended September 30, 2026, was also impacted by higher portfolio yields, reflecting the replacement of maturing lower-yielding assets with higher-yielding originations following pricing actions designed to maximize risk-adjusted returns across credit tiers.
Previous wording
Commercial loan financing revenue and other interest income increased $25 million and $16 million for the three months and six months ended June 30, 2026, respectively, compared to the three months and six months ended June 30, 2025. The increases were primarily due to higher average outstanding commercial balances.
Current wording
Commercial loan financing revenue and other interest income increased $30 million and $46 million for the three months and nine months ended September 30, 2026, respectively, compared to the three months and nine months ended September 30, 2025. The increases for the three months and nine months ended September 30, 2026, were primarily due to higher average outstanding commercial balances.
Previous wording
Interest expense increased $85 million and $148 million for the three months and six months ended June 30, 2026, respectively, compared to the same periods in 2025. The increases for the three months and six months ended June 30, 2026, were primarily driven by higher asset balances and higher funding costs, as our consumer portfolios continued to shift towards the loans and leases originated in a higher interest rate environment.
Current wording
Interest expense increased $106 million and $254 million for the three months and nine months ended September 30, 2026, respectively, compared to the same periods in 2025. The increases for the three months and nine months ended September 30, 2026, were primarily driven by higher asset balances and higher funding costs, as our consumer portfolios continued to shift towards the loans and leases originated in a higher interest rate environment.
Previous wording
Total net operating lease revenue decreased $15 million and $2 million for the three months and six months ended June 30, 2026, respectively, compared to the same periods in 2025. The decreases in net operating lease revenue were driven by higher depreciation expense which was partially offset by an increase in operating lease income, as compared to the same periods in 2025. Depreciation expense increased by $53 million and $81 million for the three months and six months ended June 30, 2026, respectively. We recognized net remarketing losses of $2 million and $12 million for the three months and six months ended June 30, 2026, respectively, compared to net remarketing losses of $19 million for the six months ended June 30, 2025. The decrease in remarketing losses for the six months ended June 30, 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. In future periods, the volatility of remarketing gains and losses may decline as a result of the shift in our operating lease portfolio towards contracts with residual value guarantees. Additionally, as we have diversified the mix of OEMs within our operating lease portfolio, we may also see less volatility associated with those contracts without residual value guarantees. Refer to the Operating Lease Residual Risk Management section of this MD&A for further discussion.
Current wording
Total net operating lease revenue decreased $29 million and $31 million for the three months and nine months ended September 30, 2026, respectively, compared to the same periods in 2025. The decreases in net operating lease revenue were driven by higher depreciation expense, which was partially offset by an increase in operating lease income, as compared to the same periods in 2025. Depreciation expense increased by $48 million and $129 million for the three months and nine months ended September 30, 2026, respectively, as compared to the same periods in 2025. We recognized net remarketing losses of $16 million and $28 million for the three months and nine months ended September 30, 2026, respectively, compared to net remarketing gains of $1 million and net remarketing losses of $18 million for the three months and nine months ended September 30, 2025. The increases in remarketing losses for the three months and nine months ended September 30, 2026, were primarily driven by weaker remarketing performance, as the average loss per off-lease vehicle increased for both periods. In the near term, our ability to optimize remarketing gains may be limited due to used vehicle market pressures on certain plug-in hybrid and other vehicles, which have been negatively impacted by recent vehicle recall announcements. In future periods, the volatility of remarketing gains and losses may decline as a result of the shift in our operating lease portfolio towards contracts with residual value guarantees. Additionally, as we have diversified the mix of OEMs within our operating lease portfolio, we may also see less volatility associated with those contracts without residual value guarantees. Refer to the Operating Lease Residual Risk Management section of this MD&A for further discussion.
Previous wording
Total noninterest expense increased $36 million and $74 million for the three months and six months ended June 30, 2026, respectively, compared to the same periods in 2025. The increases were primarily due to higher direct and allocated expenses related to the growth of the business.
Current wording
Total noninterest expense increased $16 million and $90 million for the three months and nine months ended September 30, 2026, respectively, compared to the same periods in 2025. The increases were primarily due to higher direct and allocated expenses related to the growth of the business.
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 9.25% and 9.27% for the three months and six months ended June 30, 2026, respectively, and 9.26% and 9.23% for the three months and six months ended June 30, 2025.
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 9.20% and 9.24% for the three months and nine months ended September 30, 2026, respectively, and 9.27% and 9.24% for the three months and nine months ended September 30, 2025.
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 5.55% and 5.62% for the three months and six months ended June 30, 2026, respectively, and 6.41% and 6.45% for the three months and six months ended June 30, 2025.
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 5.64% and 5.63% for the three months and nine months ended September 30, 2026, respectively, and 6.42% and 6.44% for the three months and nine months ended September 30, 2025.
Previous wording
(f)Yield includes net losses on the sale of off-lease vehicles of $2 million and $12 million for the three months and six months ended June 30, 2026, respectively, and net losses of $19 million for the six months ended June 30, 2025. Excluding these losses and gains on sale, the yield was 5.69% and 5.94% for the three months and six months ended June 30, 2026, respectively, compared to 6.86% and 6.76% for the three months and six months ended June 30, 2025.
Current wording
(f)Yield includes net losses on the sale of off-lease vehicles of $16 million and $28 million for the three months and nine months ended September 30, 2026, respectively, and net gains of $1 million and net losses of $18 million for the three months and nine months ended September 30, 2025. Excluding these losses and gains on sale, the yield was 5.91% and 5.93% for the three months and nine months ended September 30, 2026, respectively, compared to 6.64% and 6.72% for the three months and nine months ended September 30, 2025.
Previous wording
During the three months and six months ended June 30, 2026, our portfolio yield for consumer automotive loans excluding the impact of hedging activities, increased 5 and 10 basis points, respectively, as compared to the same periods in 2025. The increases for the three months and six months ended June 30, 2026, were primarily driven by a shift in portfolio mix as higher yielding originations replace the maturity of lower yielding assets resulting from pricing actions due to our deliberate focus on maximizing risk-adjusted returns across our credit tiers. We utilize hedging strategies in order to mitigate interest rate risks, the effects of derivative financial instruments designated as hedges are included within Corporate and Other. Refer to Note 18 to the Condensed Consolidated Financial Statements for further discussion.
Current wording
During the three months and nine months ended September 30, 2026, our portfolio yield for consumer automotive loans excluding the impact of hedging activities, decreased 3 and increased 6 basis points, respectively, as compared to the same periods in 2025. The decrease for the three months ended September 30, 2026, was primarily driven by portfolio mix, as we continue to originate the majority of our consumer automotive loans within the S and A credit tiers. The increase for the nine months ended September 30, 2026, was primarily driven by a shift in portfolio mix as higher yielding originations replace the maturity of lower yielding assets resulting from pricing actions due to our deliberate focus on maximizing risk-adjusted returns across our credit tiers. We utilize hedging strategies in order to mitigate interest rate risks, the effects of derivative financial instruments designated as hedges are included within Corporate and Other. Refer to Note 18 to the Condensed Consolidated Financial Statements for further discussion.
Previous wording
During the three months and six months ended June 30, 2026, our portfolio yield for commercial wholesale floorplan loans, excluding the impact of hedging activities decreased 100 and 92 basis points, respectively, as compared to the same periods in 2025. The decreases were primarily due to lower benchmark interest rates, as our commercial automotive loans are generally variable-rate.
Current wording
During the three months and nine months ended September 30, 2026, our portfolio yield for commercial wholesale floorplan loans, excluding the impact of hedging activities decreased 101 and 95 basis points, respectively, as compared to the same periods in 2025. The decreases were primarily due to lower benchmark interest rates, as our commercial wholesale floorplan loans are generally variable-rate.
Previous wording
Our portfolio yield for investment in operating leases, net, including gains and losses on the sale of off-lease vehicles, decreased 127 and 62 basis points to 5.61% and 5.67% for the three months and six months ended June 30, 2026, respectively, as compared to 6.88% and 6.29% for the three months and six months ended June 30, 2025. The decreases were primarily due to higher depreciation expense. 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. In future periods, the volatility of remarketing gains and losses may decline as a result of the shift in our operating lease portfolio towards contracts with residual value guarantees. Additionally, as we have diversified the mix of OEMs within our operating lease portfolio, we may also see less volatility associated with those contracts without residual value guarantees. Refer to the Operating Lease Residual Risk Management section of this MD&A for further discussion.
Current wording
Our portfolio yield for investment in operating leases, net, including gains and losses on the sale of off-lease vehicles, decreased 154 and 93 basis points to 5.16% and 5.50% for the three months and nine months ended September 30, 2026, respectively, as compared to 6.70% and 6.43% for the three months and nine months ended September 30, 2025. The decreases were primarily due to higher depreciation expense. In the near term, our ability to optimize remarketing gains may be limited due to used vehicle market pressures on certain plug-in hybrid and other vehicles, which have been negatively impacted by recent vehicle recall announcements. In future periods, the volatility of remarketing gains and losses may decline as a result of the shift in our operating lease portfolio towards contracts with residual value guarantees. Additionally, as we have diversified the mix of OEMs within our operating lease portfolio, we may also see less volatility associated with those contracts without residual value guarantees. Refer to the Operating Lease Residual Risk Management section of this MD&A for further discussion.
Previous wording
Retail loan originations with a term of 76 months or more represented 24% and 23% of total retail loan originations for the three months and six months ended June 30, 2026, respectively, compared to 23% for both the three months and six months ended June 30, 2025. Substantially all the loans originated with a term of 76 months or more during both the three months and six months ended June 30, 2026, and 2025, were considered to be prime and in credit tiers S, A, or B. Our underwriting processes are designed to consider various deal structure variables—such as payment-to-income, LTV, debt-to-income, and FICO® score—that compensate for longer loan terms and mitigate layered risk.
Current wording
Retail loan originations with a term of 76 months or more represented 26% and 24% of total retail loan originations for the three months and nine months ended September 30, 2026, respectively, compared to 23% for both the three months and nine months ended September 30, 2025. Substantially all the loans originated with a term of 76 months or more during both the three months and nine months ended September 30, 2026, and 2025, were considered to be prime and in credit tiers S, A, or B. Our underwriting processes are designed to consider various deal structure variables—such as payment-to-income, LTV, debt-to-income, and FICO® score—that compensate for longer loan terms and mitigate layered risk.
Previous wording
During the three months ended June 30, 2026, approximately 82% of our used retail loan originations were for vehicles with a model year of 2020 or newer. According to the Bureau of Transportation Statistics, the average age of light vehicles in operation in the United States during 2025 was approximately 13 years. Substantially all used retail loan originations with a term of 76 months or more during the three months ended June 30, 2026, were for vehicles with a model year of 2020 or newer.
Current wording
During the three months ended September 30, 2026, approximately 84% of our used retail loan originations were for vehicles with a model year of 2020 or newer. According to the Bureau of Transportation Statistics, the average age of light vehicles in operation in the United States during 2025 was approximately 13 years. Substantially all used retail loan originations with a term of 76 months or more during the three months ended September 30, 2026, were for vehicles with a model year of 2020 or newer.
Previous wording
(a)Includes CSG originations of $1.2 billion and $915 million for the three months ended June 30, 2026, and 2025, respectively.
Current wording
(a)Includes CSG originations of $1.1 billion and $1.0 billion for the three months ended September 30, 2026, and 2025, respectively.
Previous wording
(a)Includes CSG originations of $2.4 billion and $1.8 billion for the six months ended June 30, 2026, and 2025, respectively.
Current wording
(a)Includes CSG originations of $3.5 billion and $2.8 billion for the nine months ended September 30, 2026, and 2025, respectively.
Previous wording
Total consumer automotive loan and operating lease originations increased $2.3 billion and $3.6 billion for the three months and six months ended June 30, 2026, respectively, compared to the same periods in 2025. The increases were primarily driven by strategic partnerships, strong dealer engagement, and growth in application volume from our dealer network.
Current wording
Total consumer automotive loan and operating lease originations increased $1.2 billion and $4.8 billion for the three months and nine months ended September 30, 2026, respectively, compared to the same periods in 2025. The increases were primarily driven by strategic partnerships, strong dealer engagement, and growth in application volume from our dealer network.
Previous wording
We have included origination metrics by loan term and FICO® Score within this MD&A. In addition, we employ our own risk evaluation, including proprietary risk models, in evaluating credit risk, as described in the section titled Automotive Financing Volume—Acquisition and Underwriting within the MD&A in our 2025 Annual Report on Form 10-K.
Current wording
We have included origination metrics by loan term and FICO® Score within this MD&A. In addition, we employ our own risk evaluation, including proprietary risk models, in evaluating credit risk, as described in the section titled Automotive Financing Volume—Acquisition and Underwriting within the MD&A of our 2025 Annual Report on Form 10-K.
Previous wording
Originations with a FICO® Score of less than 620 (considered nonprime) represented 11% of total consumer loan and operating lease originations for both the three months and six months ended June 30, 2026, compared to 9% and 8% for the three months and six months ended June 30, 2025, respectively, reflecting our strategy to focus on maximizing risk-adjusted returns across our credit tiers. Consumer loans and operating leases with FICO® Scores of less than 540 represented 2% of total originations for each of the three months and six months ended June 30, 2026, respectively, as compared to 1% for each the three months and six months ended June 30, 2025. Nonprime applications are subject to more stringent underwriting criteria (for example, maximum payment-to-income ratio, maximum debt-to-income ratio, and maximum amount financed), and our nonprime loan portfolio generally does not include any loans with a term of 76 months or more. The carrying value of our held-for-investment, nonprime consumer automotive loans before allowance for loan losses was $9.6 billion and $8.6 billion at June 30, 2026, and December 31, 2025, respectively, or approximately 10.7% and 10.1% of our total consumer automotive loans at June 30, 2026, and December 31, 2025, respectively. For discussion of our credit-risk-management practices and performance, refer to the section below titled Risk Management.
Current wording
Originations with a FICO® Score of less than 620 (considered nonprime) represented 11% of total consumer loan and operating lease originations for both the three months and nine months ended September 30, 2026, compared to 9% for both the three months and nine months ended September 30, 2025, reflecting our strategy to focus on maximizing risk-adjusted returns across our credit tiers. Consumer loans and operating leases with FICO® Scores of less than 540 represented 2% of total originations for both of the three months and nine months ended September 30, 2026, as compared to 1% for both the three months and nine months ended September 30, 2025. Nonprime applications are subject to more stringent underwriting criteria (for example, maximum payment-to-income ratio, maximum debt-to-income ratio, and maximum amount financed), and our nonprime loan portfolio generally does not include any loans with a term of 76 months or more. The carrying value of our held-for-investment, nonprime consumer automotive loans before allowance for loan losses was $10.1 billion and $8.6 billion at September 30, 2026, and December 31, 2025, respectively, or approximately 11.0% and 10.1% of our total consumer automotive loans at September 30, 2026, and December 31, 2025, respectively. For discussion of our credit-risk-management practices and performance, refer to the section below titled Risk Management.
Previous wording
During the fourth quarter of 2025, we amended our agreement with Carvana, a leading e-commerce platform focused on buying and selling used vehicles. Specifically, we increased our committed facility by $2.0 billion to a maximum of $6.0 billion to support our continued efforts to optimize risk-adjusted returns. This commitment is effective for 364 days. As part of the agreement, we are committed to purchase finance receivables, related to both new and used vehicles, on a periodic basis within prescribed eligibility requirements and risk appetite, consistent with purchase practices in prior years. All the finance receivables purchased through this channel are included in non-OEM-franchised dealers and automotive retailers in our consumer origination metrics. While different vintages and credit tiers exhibit varying performance, collectively to date, finance receivables purchased from Carvana have generally exhibited consistent delinquency and loss performance compared to loans with similar credit characteristics acquired through our indirect dealer channel. Consumer finance receivables and loans sourced from Carvana represented 12.1% and 10.4% of our total consumer automotive finance receivables and loans as of June 30, 2026, and December 31, 2025, respectively. Loan purchases from Carvana were 16% and 15% of our total consumer automotive financing originations during the three months and six months ended June 30, 2026, respectively, as compared to 11% and 9% for the same periods in 2025.
Current wording
During the third quarter of 2026, we amended our agreement with Carvana, a leading e-commerce platform focused on buying and selling used vehicles. Specifically, we increased our committed facility by $2.0 billion to a maximum of $8.0 billion to support our continued efforts to optimize risk-adjusted returns. This commitment is effective for 364 days. As part of the agreement, we are committed to purchase finance receivables, related to both new and used vehicles, on a periodic basis within prescribed eligibility requirements and risk appetite, consistent with purchase practices in prior years. All the finance receivables purchased through this channel are included in non-OEM-franchised dealers and automotive retailers in our consumer origination metrics. While different vintages and credit tiers exhibit varying performance, collectively to date, finance receivables purchased from Carvana have generally exhibited consistent delinquency and loss performance compared to loans with similar credit characteristics acquired through our indirect dealer channel. Consumer finance receivables and loans sourced from Carvana represented 12.7% and 10.4% of our total consumer automotive finance receivables and loans as of September 30, 2026, and December 31, 2025, respectively. Loan purchases from Carvana were 15% of our total consumer automotive financing originations during both the three months and nine months ended September 30, 2026, as compared to 11% and 10% for the same periods in 2025.
Previous wording
For discussion of manufacturer marketing incentives, refer to the section titled Automotive Financing Volume—Manufacturer Marketing Incentives within the MD&A in our 2025 Annual Report on Form 10-K.
Current wording
For discussion of manufacturer marketing incentives, refer to the section titled Automotive Financing Volume—Manufacturer Marketing Incentives within the MD&A of our 2025 Annual Report on Form 10-K.
Previous wording
Average commercial wholesale financing receivables outstanding increased $2.3 billion and $1.2 billion during the three months and six months ended June 30, 2026, respectively, as compared to the same periods in 2025. The increases were primarily due to an increase within the Stellantis dealer channel.
Current wording
Average commercial wholesale financing receivables outstanding increased $2.5 billion and $1.6 billion during the three months and nine months ended September 30, 2026, respectively, as compared to the same periods in 2025. The increases were primarily due to an increase within the Stellantis dealer channel.
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Previous report — wording carried elsewhere
(b)Within Commercial, figures include the impact of the charge-off and release of the specific reserve related to one exposure in our legacy health care cash flow vertical.
Previous report — wording carried elsewhere
(g)Represents interest expense on tax liabilities included in other liabilities on the Condensed Consolidated Balance Sheet. The interest expense on tax liabilities is included in the net yield on interest-earning assets and excluded from the interest spread. For more information on our accounting policies regarding income taxes, refer to Note 1 to the Consolidated Financial Statements in our 2025 Annual Report on Form 10-K.