Ally Financial pares gains after disclosing worsening credit conditions

Ally Financial

18/10/2024 13:05

** Consumer lender Ally Financial's  ALLY.N  shares rise as
much as 6% premarket, but pare gains; stock last up ~1.4% at
$36.35
    ** ALLY's provision for credit losses rise to $645 mln in
Q3, reflecting higher net charge-offs or loans that banks
writedown due to the low probability of them being repaid
    ** In September, company warned credit challenges
intensified over Q3 as borrowers struggled with high inflation,
weighing on its stock and prompting rating revisions from
analysts
    ** "The challenges of managing through a unique environment
are reflected in our results this quarter" - CEO Michael Rhodes
    ** ALLY's consolidated net charge-offs climb to 1.50% in Q3
from 1.31% a year ago; retail auto delinquencies rise to 4.51%
vs 3.85%
    ** Company reports adjusted Q3 EPS of 95 cents versus 83
cents a year earlier
    ** As of last close, ALLY up 2.6% YTD

 (Reporting by Manya Saini in Bengaluru)
 ((Manya.Saini@thomsonreuters.com))