ALLY's Q2 earnings miss estimates as loan and deposit balances drop, but lower expenses and provisions offer support.
Ally Financial is upgraded to a buy from my prior hold rating, agreeing with the latest rating consensus on Seeking Alpha. Known for its digital-first banking concept, ALLY has grown in the auto loan, insurance, and corporate finance space while maintaining a stable dividend lately and improving balance sheet risk. Although Q1 saw a net loss due to a one-time loss event, Q2 has seen improvement and led to a positive analyst earnings consensus.
Ally Financial's Q2 results showed improved deposit costs and lower credit losses, but its capital position remains weak compared to peers. The company is prioritizing capital build through retained earnings over buybacks, likely delaying shareholder returns until at least 2027. Auto loan credit trends are stabilizing, but reserve coverage remains low, and asset growth will be constrained to protect capital ratios.
Ally Financial Inc. (NYSE:ALLY ) Q2 2025 Earnings Conference Call July 18, 2025 9:00 AM ET Company Participants Michael G. Rhodes - CEO & Director Russell E.
Although the revenue and EPS for Ally Financial (ALLY) give a sense of how its business performed in the quarter ended June 2025, it might be worth considering how some key metrics compare with Wall Street estimates and the year-ago numbers.
Ally Financial CEO Michael Rhodes said he's “encouraged and energized” by the first-half results, pointing to “sound strategic positioning and disciplined execution” that have driven an improving financial trajectory.
Beyond analysts' top-and-bottom-line estimates for Ally Financial (ALLY), evaluate projections for some of its key metrics to gain a better insight into how the business might have performed for the quarter ended June 2025.
Ally Financial (ALLY) possesses the right combination of the two key ingredients for a likely earnings beat in its upcoming report. Get prepared with the key expectations.
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Ally Financial (ALLY) has an impressive earnings surprise history and currently possesses the right combination of the two key ingredients for a likely beat in its next quarterly report.
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Shares of car financing giant Ally Financial have lagged the wider U.S. financials space recently, as cyclical headwinds continue to dog the firm's income statement. Ally is set for near-term relief on both its interest margin and credit quality, powering strong earnings growth for the firm. Meanwhile, the stock trades for just 7.2x consensus 2026 EPS.