From The Motley Fool · Motley Fool Transcribing · · 2m
Ally Financial Q3 2026 Earnings Report Highlights
Ally Financial reports 16% higher adjusted EPS and record auto loan growth in Q3 2026.
In brief
Ally Financial reports 16% higher adjusted EPS and record auto loan growth in Q3 2026. Ally Financial achieved $1.34 adjusted EPS up 16% year over year with record auto loan applications and corporate finance growth. Originally reported by The Motley Fool.
Q3 2026 Results
Ally Financial reported adjusted EPS of $1.34, up 16% year over year.
Retail Auto Growth
Consumer auto originations reached $12.9 billion, up 10% year over year with record 4.8 million applications.
Corporate Finance Expansion
Corporate finance loans grew to $15.8 billion, up 40% year over year with less than 1% non-accrual loans.
Net Interest Margin
Net interest margin increased to 3.66%, up 3 basis points sequentially despite lease termination losses.
Credit Risk Transfer
Completed $6 billion credit risk transfer to optimize capital levels, second transaction of 2026.
Dividend Increase
Announced first quarterly dividend increase since 2022 at $0.35 per share.
Loyally Program
Launched free loyalty program loyALLy offering discounts to strengthen customer relationships.
Lease Termination Losses
Reported $16 million loss on lease terminations due to Stellantis auction price pressures.
Vintage Delinquency Trends
Late 2025 and early 2026 loan vintages show higher early life delinquency than previous years.
Net Charge-offs
Retail auto net charge-offs at 189 basis points, up 32 basis points quarter over quarter.
Capital Efficiency
CET1 ratio at 10.2%, up 10 basis points year over year with $178 million share repurchases.
Asset Growth Guidance
Raised average earning asset growth guidance to 5% to 6% from 3% to 5% due to strong retail auto and corporate finance momentum.
Retail Deposits
Retail deposits grew to $141.9 billion, up $80 million year over year comprising 86% of total funding portfolio.
Net Interest Margin Outlook
Full year NIM guidance of 3.6% to 3.65% with projected exit rate around 3.7% in Q4.
Corporate Finance ROE
Corporate finance segment achieved 22% return on equity with low non-accrual loans.
Credit Risk Transfer Impact
Credit risk transfer generated more than 25 basis points of CET1 capital at issuance in Q3.
The bottom line
Ally Financial achieved $1.34 adjusted EPS up 16% year over year with record auto loan applications and corporate finance growth.
