Ally Financial (ALLY) Q1 2026 earnings summary

Executive summary

• Adjusted EPS rose 90% year-over-year to $1.11, with GAAP EPS at $0.93 and net income attributable to common shareholders of $291 million, reversing a prior year loss.

• Core ROTCE improved 440 bps to 11.1%, and return on common equity was 8.8%.

• Record consumer auto originations of $11.5 billion from 4.4 million applications, up 13% year-over-year.

• The company maintained its “Focused. Forward.” strategy, emphasizing scale in core businesses and digital banking leadership.

• Sale of Credit Card business completed in April 2025, sharpening focus on core franchises.

Financial highlights

• Adjusted net revenue was $2.2 billion, up 6% year-over-year; GAAP total net revenue was $2.1 billion, up 36% year-over-year.

• Net financing revenue (ex-OID) increased to $1.61 billion, up $114 million year-over-year.

• Adjusted provision expense fell $23 million year-over-year, but provision for credit losses increased $276 million due to prior year reserve releases.

• Adjusted non-interest expense dropped $85 million year-over-year; noninterest expense decreased $399 million, reflecting the Credit Card sale and lower weather losses.

• CET1 ratio improved to 10.1%, up 60 bps year-over-year, with $4.7 billion above regulatory minimum.

• Adjusted tangible book value per share reached $40.93, up 14% year-over-year.

Outlook and guidance

• Guidance for 2026 Retail Auto NCOs remains at 1.8%-2%; consolidated NCO at 1.2–1.4%.

• Net interest margin guidance unchanged at 3.60%-3.70% for the year, with expectations to exit at or above the high end.

• Adjusted noninterest expense expected to rise 2–4% year-over-year; tax rate guidance at 20–22%.

• Full-year guidance assumes no Fed funds rate cut until June 2027.

• Management expressed confidence in achieving mid-teens ROTCE and continued strong performance.