Ally Financial (ALLY) Q4 2025 earnings summary

Executive summary

• Adjusted EPS for 2025 was $3.81, up 62% year-over-year, with net income attributable to common shareholders rising to $742 million from $558 million in 2024.

• Strategic focus on core businesses included the sale of Credit Card, cessation of mortgage originations, and growth in retail auto and corporate finance loans, up over 5% year-over-year.

• Announced a $2 billion open-ended share repurchase authorization, resuming buybacks with a disciplined approach.

• Record consumer auto applications (15.5 million) and $43.7 billion in consumer auto originations for the year.

• Exited non-core businesses, optimized investment securities, and maintained expense discipline, reducing controllable expenses by 1%.

Financial highlights

• Adjusted net revenue reached $8.5 billion, up 3% year-over-year; GAAP net revenue was $7.9 billion.

• Net financing revenue for 2025 was $6.2 billion, up $162 million year-over-year; Q4 net financing revenue was $1.6 billion, up $89 million year-over-year.

• Net interest margin (excluding OID) for 2025 was 3.47%; Q4 NIM was 3.48%.

• Adjusted tangible book value per share ended at $40.38, up from $34.04 in 2024.

• Adjusted efficiency ratio for 2025 was 51.9%, improved from 54.1% in 2024.

Outlook and guidance

• 2026 guidance projects net interest margin (ex. OID) of 3.6%-3.7% and mid-single digit growth in retail auto and corporate finance.

• Retail auto net charge-offs forecasted at 1.8%-2.0%; consolidated NCO at 1.2%-1.4%.

• Adjusted noninterest expense expected to rise about 1% in 2026, with investments in AI, cyber, and customer experience.

• Effective tax rate expected between 20% and 22%.

• Average earning assets projected to grow 2%-4%.