Ally Financial jumps on Q4 profit beat, credit performance improvement

Ally Financial

22/01/2025 15:38

(Updates)
    ** Consumer lender Ally Financial's  ALLY.N  shares jump as
much as 8.7%; last up 5.6% at $40.33
    ** ALLY posts Q4 adjusted EPS of 78 cents, beating analysts'
expectation of 57 cents, according to estimates compiled by LSEG
    ** Q4 net financing revenue of $1.51 bln was ahead of
estimates of $1.50 bln, driven by lower funding costs  
    ** Retail auto net charge-off rate - debts that are unlikely
to be recovered - came in at 2.34% in Q4, which was below Street
expectation 
    ** Truist analyst Brian Foran says credit issues peaking is
the headline as investors breathe a sigh of relief
        ** Co had last year 
    warned of intensifying credit challenges
     as borrowers struggled with high inflation and cost of
living
  
    ** ALLY also announced a raft of actions taken in Q4 to
simplify and streamline the company
    ** Co has agreed to sell its credit card business to credit
and payments company CardWorks 
    ** ALLY stock rose 3.1% in 2024

 (Reporting by Arasu Kannagi Basil in Bengaluru)
 ((ArasuKannagi.Basil@thomsonreuters.com;))