# Ally Financial (ALLY) Reports Second Quarter 2025 Results on August 1, 2025
Ally Financial released its financial results for the second quarter of 2025 on August 1, 2025. Here is a summary of the key metrics and findings from the report:
## Financial Highlights
– **GAAP EPS**: $1.04 (up **68%** from $0.62 in Q2 2024)
– **Adjusted EPS**: $0.99 (up **36%** from $0.73 in Q2 2024)
– **Pre-tax Income**: $436 million (up $157 million compared to Q2 2024)
– **Core Pre-tax Income**: $418 million (up $96 million compared to Q2 2024)
– **GAAP Total Net Revenue**: $2.1 billion (up **3%** from Q2 2024)
– **Adjusted Total Net Revenue**: $2.064 billion (no change from Q2 2024)
## Operational Highlights
– **NIM excluding OID**: 3.45% (up **10 bps** quarter over quarter)
– **Common Equity Tier 1 Ratio**: 9.9% (up **38 bps** quarter over quarter)
– **Consumer Auto Originations**: $11 billion, sourced from a record 3.9 million applications
– **Retail Auto Originated Yield**: 9.82%
– **Retail Auto Net Charge-offs**: 1.75% (down **6 bps** year over year)
– **Insurance Written Premiums**: $349 million (up **2%** year over year)
– **Total Retail Deposits**: $143 billion, with **92%** FDIC insured
## Customer and Deposit Growth
– **Customer Base**: Grew to 3.4 million customers, with a net increase of 30,000 in Q2 2025
– **Retail Deposit Funded**: **88%** of total funding portfolio
– **Deposits**: Increased by $1.1 billion compared to Q2 2024, although decreased by $2.9 billion compared to Q1 2025 due to seasonal tax outflows
– **Deposit Rate**: Average retail portfolio deposit rate is 3.58% (down **60 bps** year over year)
## Capital Management and Dividends
– Ally declared a quarterly common dividend of **$0.30** per share, unchanged year over year, with an announcement for the same dividend for Q3 2025.
– No share repurchases were made during the quarter.
– Common equity tier 1 (CET1) capital ratio after closing the sale of the Credit Card segment increased by **40 bps** (20 bps recognized in Q1 and 20 bps at closing).
## Income Metrics
– **GAAP Net Income**: $352 million, significantly improved from a loss of $225 million in Q1 2025 and an increase from $219 million in Q2 2024.
– **Core Net Income**: $309 million, reflecting a **73%** increase from $179 million in Q1 2025.
## Segment Performance
– **Automotive Finance**: Pre-tax income at $472 million, down $112 million year over year due to lower net financing revenue.
– **Insurance**: Pre-tax income rose to $28 million, a year over year increase of **$68 million**.
– **Corporate Finance**: Reported a pre-tax income of $96 million, a decrease of $13 million year over year.
## Key Financial Ratios
– **Return on Equity (ROE)**: 10.7%, up **225%** from a negative 8.6% in Q1 2025.
– **Core Return on Tangible Common Equity (ROTCE)**: 13.6%, up **64%** from 8.3% in Q1 2025.
– **Adjusted Efficiency Ratio**: 50.9%, compared to 56.0% in Q1 2025 and **52.7%** in Q2 2024.
## Conclusion
Overall, Ally Financial demonstrated positive momentum in Q2 2025, highlighted by significant year-over-year increases in net income, earnings per share, and customer growth, aligning with its strategic efforts toward improving operating performance and shareholder value.
This quarterly report illustrates Ally’s resilience in navigating macroeconomic challenges while focusing on prudent capital management and maintaining a strong customer base.
# Condensed Consolidated Statements of Income (in millions)
| ($ millions except per share data) | 2Q 25 | 1Q 25 | 2Q 24 | Increase / (Decrease) vs. |
|---|---|---|---|---|
| GAAP Net Income (Loss) Attributable to Common Shareholders | 324 | (253) | 191 | 228 % |
| Core Net Income Attributable to Common Shareholders | 309 | 179 | 224 | 73 % |
| GAAP Earnings per Common Share (basic or diluted as applicable) | 1.04 | (0.82) | 0.62 | 227 % |
| Adjusted EPS | 0.99 | 0.58 | 0.73 | 71 % |
| Return on GAAP Shareholder’s Equity | 10.7 % | (8.6)% | 6.8% | 225 % |
| Core ROTCE | 13.6 % | 8.3% | 10.7% | 64 % |
| GAAP Common Shareholder’s Equity per Share | 39.71 | 38.77 | 37.34 | 2 % |
| Adjusted Tangible Book Value per Share | 37.30 | 35.95 | 33.01 | 4 % |
| GAAP Total Net Revenue | 2,082 | 1,541 | 2,022 | 35 % |
| Adjusted Total Net Revenue | 2,064 | 2,065 | 2,064 | 0 % |
# Condensed Consolidated Balance Sheets (in millions)
| ($ millions) | 2Q 25 | 1Q 25 | 2Q 24 |
|---|---|---|---|
| GAAP Shareholder’s Equity | 14,547 | 14,232 | 13,699 |
| Preferred Equity | (2,324) | (2,324) | (2,324) |
| GAAP Common Shareholder’s Equity | 12,223 | 11,908 | 11,375 |
| Goodwill and Identifiable Intangible Assets, Net of Deferred Tax Liabilities (DTLs) | (187) | (295) | (713) |
| Tangible Common Equity | 12,036 | 11,613 | 10,662 |
| Tax-effected Core OID Balance (21% tax rate) | (557) | (570) | (605) |
| Adjusted Tangible Book Value | 11,479 | 11,044 | 10,057 |
| Issued Shares Outstanding (period-end, thousands) | 307,787 | 307,152 | 304,656 |
| GAAP Common Shareholder’s Equity per Share | 39.71 | 38.77 | 37.34 |
| Tangible Common Equity per Share | 39.10 | 37.81 | 35.00 |
| Adjusted Tangible Book Value per Share | 37.30 | 35.95 | 33.01 |
