Q4 24 EPS

$0.78

BEAT +36.53%

Est. $0.57

Q4 24 Revenue

$2.03B

BEAT +0.08%

Est. $2.02B

vs S&P Since Q4 24

-1.0%

TRAILING MARKET

ALLY +19.3% vs S&P +20.3%

Full Year 2024 Results

FY 24 EPS

$2.35

MISS 20.44%

Est. $2.95

FY 24 Revenue

$8.18B

BEAT +0.80%

Est. $8.12B

Market Reaction

Did ALLY Beat Earnings? Q4 2024 Results

Ally Financial closed out 2024 with a stronger-than-expected fourth quarter, posting adjusted EPS of $0.78 against a consensus estimate of $0.57, a beat of 36.53%, as management's push to sharpen the company's focus on its core auto franchise began t… Read more Ally Financial closed out 2024 with a stronger-than-expected fourth quarter, posting adjusted EPS of $0.78 against a consensus estimate of $0.57, a beat of 36.53%, as management's push to sharpen the company's focus on its core auto franchise began to show tangible results. Revenue of $2.03 billion edged past the $2.02 billion estimate, though it reflected a 51.7% decline year over year, largely shaped by strategic exits including the pending sale of its Credit Card business, which alone triggered a $118 million partial goodwill impairment in the quarter. Net interest margin, excluding core OID, expanded 11 basis points year over year to 3.33%, supported by declining funding costs as the average retail deposit rate fell to 3.97% from 4.15% a year ago. The company is also ceasing new mortgage originations, part of a broader reorganization under CEO Michael Rhodes. Looking ahead, Ally guided 2025 NIM to 3.55%-3.65% and targets mid-teens Core ROTCE over time, signaling confidence in its streamlined operating model.

Key Takeaways

  • Lower funding costs driving NIM expansion of 11 bps YoY to 3.30%
  • Consumer auto originations of $10.3 billion, up $0.7 billion YoY with 49% in highest credit quality tier
  • Insurance written premiums of $390 million, up 17% YoY
  • Corporate Finance record quarterly pre-tax income of $120 million with zero net charge-offs in 2024
  • Retail deposit growth of $2.0 billion quarter over quarter with >95% customer retention
  • Retail auto portfolio yield (ex. hedge) increased 66 bps YoY to 9.09%
  • Adjusted efficiency ratio improved to 52.8% from 55.4% YoY
  • Core ROTCE of 11.3% in Q4 vs. 6.2% a year ago
  • Average retail deposit rate declined to 3.97% from 4.15% YoY
24/7 Wall St

ALLY YoY Financials

Q4 2024 vs Q4 2023, source: SEC Filings

24/7 Wall St

ALLY Revenue by Segment

With YoY comparisons, source: SEC Filings

Q2 24 Q1 26

“As we enter 2025, I am encouraged by strong momentum across our business. This optimism is driven by an improved outlook on credit, a balance sheet well positioned for margin expansion, and continued disciplined management of expenses and capital. During the fourth quarter, we took significant steps to enhance returns and strengthen our competitive position in our core businesses. I am incredibly proud of this team's dedication and look forward to building upon this success.”

— Michael Rhodes, Q4 2024 Earnings Press Release