Open the filing on EDGARNews release: IMMEDIATE RELEASE
| Ally Financial Reports Third Quarter 2026 Financial Results |
| $1.30 | 12.1% | $567 million | $2.3 billion |
| GAAP EPS | RETURN ON COMMON EQUITY | PRE-TAX INCOME | GAAP TOTAL NET REVENUE |
| $1.34 | 13.1% | $581 million | $2.3 billion |
| ADJUSTED EPS | CORE ROTCE | CORE PRE-TAX INCOME | ADJUSTED TOTAL NET REVENUE |
FINANCIAL HIGHLIGHTS
- GAAP EPS of $1.30 was up 10% year over year | Adjusted EPS of $1.34 was up 16% year over year • GAAP Pre-tax income of $567 million was up 11% year over year | Core pre-tax income of $581 million was up 16% year over year • Return on Common Equity of 12.1% was up 20 bps year over year | Core ROTCE of 13.1% was up 80 bps year over year • NIM ex. OID of 3.66% was up 3 bps quarter over quarter and up 11 bps year over year • Common equity tier 1 ratio of 10.2% was up 10 bps year over year • Announced 4Q 2026 common dividend of $0.35 per share | Executed $178 million of share repurchases during the quarter
OPERATIONAL HIGHLIGHTS • $12.9 billion of consumer auto originations, up 10% year over year | Record 4.8 million consumer auto applications, up 20% year over year • Estimated retail auto originated yield of 9.44% with 44% of volume within the highest credit quality tier • Retail auto net charge-offs of 189 bps were up 1 bps year over year • Insurance written premiums of $388 million were up 1% year over year • $142 billion of retail deposits | 92% FDIC insured | 86% core deposit funded • 70 consecutive quarters of retail deposit customer growth, serving 3.6 million customers • Corporate Finance HFI portfolio of $15.8 billion with non-performing loans at less than 1% | ROE of 22%
CEO COMMENTS “Third quarter results provide another clear signal that our focused strategy is delivering results,” said Chief Executive Officer, Michael Rhodes. “We are growing our core franchises, improving returns, maintaining risk discipline, and demonstrating our ability to both strengthen capital and return it to shareholders. Dealer Financial Services demonstrated the strength of our all-in value proposition, as healthy dealer engagement drove record application volume and nearly $13 billion in originations, up 10% year-over-year. The breadth of our application volume enables us to be selective while providing the scale to optimize risk-adjusted returns against a fluid backdrop. Insurance delivered a 36% ROE while continuing to grow written premiums, as the team deepens dealer engagement while continuing to manage risk effectively. Corporate Finance delivered another strong quarter, generating a 22% return on equity while growing the portfolio meaningfully. We continue to scale the portfolio responsibly by leading a vast majority of the deals we originate and growing alongside existing clients. Just as importantly, credit performance remains strong, demonstrating the effectiveness of the team’s deep underwriting expertise. At Ally Bank, our ability to deliver value beyond rate drove customer growth for a 70th consecutive quarter. Last month, we introduced ‘Loyally’, a fee-free rewards experience that further complements our unique value proposition. At $142 billion today, our retail deposit base provides a stable funding source that supports accretive growth. Industry leading retention rates further reflect the trust customers place in Ally and the durability of our deposit relationships. We are building from a position of strength, with a clear set of strategic priorities focused on leveraging our competitive advantages to drive sustainable, high-quality growth and improved returns. While the operating environment remains dynamic, our differentiated franchises, together with our unmatched brand and culture, provide the foundation for continued execution. We remain confident in our ability to capitalize on the opportunities ahead and create long-term value for shareholders.”
Third Quarter 2026 Financial Results
| | | | Increase / (Decrease) vs. |
|---|
| ($ millions except per share data) | 3Q 26 | 2Q 26 | 3Q 25 | 2Q 26 | 3Q 25 |
| GAAP Net Income (Loss) Attributable to Common Shareholders | $401 | $367 | $371 | 9% | 8% |
| Core Net Income Attributable to Common Shareholders | $412 | $375 | $363 | 10% | 14% |
| GAAP Earnings per Common Share (basic or diluted as applicable) | $1.30 | $1.18 | $1.18 | 10% | 10% |
| Adjusted EPS | $1.34 | $1.21 | $1.15 | 11% | 16% |
| Return on GAAP Shareholders’ Equity | 12.1% | 11.0% | 11.9% | 10% | 2% |
| Core ROTCE | 13.1% | 11.8% | 12.3% | 11% | 6% |
| GAAP Common Shareholders’ Equity per Share | $43.24 | $44.38 | $41.56 | (3)% | 4% |
| Adjusted Tangible Book Value per Share | $41.00 | $42.12 | $39.19 | (3)% | 5% |
| GAAP Total Net Revenue | $2,332 | $2,286 | $2,168 | 2% | 8% |
| Adjusted Total Net Revenue | $2,346 | $2,276 | $2,157 | 3% | 9% |
The following are non-GAAP financial measures which Ally believes are important to the reader of the Consolidated Financial Statements, but which are supplemental to and not a substitute for GAAP measures: Adjusted Earnings per Share (Adjusted EPS), Adjusted Total Net Revenue, Core Pre-Tax Income, Core Net Income Attributable to Common Shareholders, Core OID, Core Return on Tangible Common Equity (Core ROTCE), Estimated Retail Auto Originated Yield, Tangible Common Equity, Net Financing Revenue (excluding Core OID) and Adjusted Tangible Book Value per Share (Adjusted TBVPS). These measures are used by management and we believe are useful to investors in assessing the company’s operating performance and capital. Refer to the Definitions of Non-GAAP Financial Measures and Other Key Terms, and Reconciliation to GAAP later in this release.
Discussion of Third Quarter 2026 Results
Net income attributable to common shareholders was $401 million in the quarter, compared to $371 million in the third quarter of 2025.
Net financing revenue was $1.7 billion, up $164 million year over year. Net interest margin (“NIM”) of 3.62% and net interest margin excluding core OIDA of 3.66% were up 11 bps year over year.
Other revenue was flat year over year at $584 million which included a $5 million increase in fair value of equity securities in the quarter compared to a $27 million increase in the third quarter of 2025. Adjusted other revenueA of $579 million increased $22 million year over year, as we continue to benefit from momentum across our diversified revenue streams including Insurance, SmartAuction, and Passthrough programs.
Provision for credit losses increased $114 million year over year to $529 million, primarily due to CECL reserve builds associated with asset growth during the quarter.
Noninterest expense decreased $4 million year over year.
A
Represents a non-GAAP financial measure. Refer to the Definitions of Non-GAAP Financial Measures and Other Key Terms and Reconciliation to GAAP later in this press release.
Third Quarter 2026 Financial Results
| | | | Increase / (Decrease) vs. |
|---|
| ($ millions except per share data) | 3Q 26 | 2Q 26 | 3Q 25 | 2Q 26 | 3Q 25 |
| (a) Net Financing Revenue | $1,748 | $1,684 | $1,584 | $64 | $164 |
| Core OID | 20 | 19 | 17 | 1 | 3 |
| Net Financing Revenue (excluding Core OID) | 1,768 | 1,703 | 1,601 | 65 | 167 |
| (b) Other Revenue | 584 | 602 | 584 | (18) | - |
| Repositioning | - | - | - | - | - |
| Change in Fair Value of Equity Securities | (5) | (29) | (27) | 24 | 22 |
| Adjusted Other Revenue | 579 | 573 | 557 | 6 | 22 |
| (c) Provision for Credit Losses | 529 | 430 | 415 | 99 | 114 |
| Repositioning | - | - | - | - | - |
| Adjusted Provision for Credit Losses | 529 | 430 | 415 | 99 | 114 |
| (d) Noninterest Expense | 1,236 | 1,319 | 1,240 | (83) | (4) |
| Repositioning | - | - | - | - | - |
| Adjusted Noninterest Expense | 1,236 | 1,319 | 1,240 | (83) | (4) |
| Pre-Tax Income (loss) (a+b-c-d) | $567 | $537 | $513 | $30 | $54 |
| Income Tax Expense (Benefit) | 134 | 127 | 115 | 7 | 19 |
| Net Income (Loss) from Discontinued Operations | - | - | - | - | - |
| Net Income (Loss) | $433 | $410 | $398 | $23 | $35 |
| Preferred Dividends | 32 | 43 | 27 | (11) | 5 |
| Net Income (Loss) Attributable to Common Shareholders | $401 | $367 | $371 | $34 | $30 |
| GAAP EPS (basic or diluted, as applicable) | $1.30 | $1.18 | $1.18 | $0.12 | $0.12 |
| Core OID, Net of Tax | 0.05 | 0.05 | 0.04 | 0.00 | 0.01 |
| Change in Fair Value of Equity Securities, Net of Tax | (0.01) | (0.07) | (0.07) | 0.06 | 0.06 |
| Repositioning, Discontinued Ops., and Other, Net of Tax | - | - | - | - | - |
| Significant Discrete Tax Items | - | - | - | - | - |
| Capital Actions (preferred redemption) | - | 0.05 | - | (0.05) | - |
| Adjusted EPS | $1.34 | $1.21 | $1.15 | $0.13 | $0.18 |
- Represents a non-GAAP financial measure. Refer to the Definitions of Non-GAAP Financial Measures and Other Key Terms and Reconciliation to GAAP later in this press release.
- Contains non-GAAP financial measures and other financial measures. See pages 5 and 6 for definitions.
- Impacts the Insurance, Corporate Finance and Corporate and Other segments. The change reflects fair value adjustments to equity securities that are reported at fair value. Management believes the change in fair value of equity securities should be removed from select financial measures because it enables the reader to better understand the business’s ongoing ability to generate revenue and income.
Pre-Tax Income by Segment
| | | | Increase/(Decrease) vs. |
|---|
| ($ millions) | 3Q 26 | 2Q 26 | 3Q 25 | 2Q 26 | 3Q 25 |
| Automotive Finance | $337 | $410 | $421 | $(73) | (84) |
| Insurance | 80 | 53 | 79 | $27 | 1 |
| Dealer Financial Services | $417 | $463 | $500 | $(46) | $(83) |
| Corporate Finance | 98 | 112 | 95 | (24) | 3 |
| Corporate and Other | 52 | (48) | (82) | 100 | 134 |
| Pre-Tax Income (Loss) from Continuing Operations | $567 | $537 | $513 | $30 | $54 |
| Core OID | 20 | 19 | 17 | 1 | 3 |
| Change in Fair Value of Equity Securities | (5) | (29) | (27) | 24 | 22 |
| Core Pre-Tax Income | $581 | $527 | $502 | $55 | $79 |
- Represents a non-GAAP financial measure. Refer to the Definitions of Non-GAAP Financial Measures and Other Key Terms and Reconciliation to GAAP later in this press release.
- Change in fair value of equity securities primarily impacts the Insurance, Corporate Finance, and Corporate and Other segments. Reflects equity fair value adjustments which requires change in the fair value of equity securities to be recognized in current period net income.
Numbers may not foot due to rounding.
Discussion of Segment Results
Auto Finance
Pre-tax income of $337 million was down $84 million year over year, primarily driven by higher provision expense from strong asset growth and higher noninterest expense, partially offset by higher revenue.
Net financing revenue of $1.3 billion was up $15 million year over year, primarily driven by growth in retail and commercial auto assets. Ally’s retail auto portfolio yield, excluding the impact from hedges, declined 1 bps year over year to 9.20%.
Provision for credit losses of $511 million was up $101 million year over year, primarily due to CECL reserve builds associated with asset growth in the quarter. The retail auto net charge-off rate of 1.89% increased 1 bps year over year. Retail auto delinquencies 30+ days past due, inclusive of non-accrual loans, increased 6 bps year over year to 4.96%.
Noninterest expense of $594 million was up $16 million year over year, primarily due to higher servicing expenses related to asset growth.
Consumer auto originations of $12.9 billion included $8.2 billion of used retail volume, or 64% of total originations, $4.2 billion of new retail volume, and $474 million of lease. Estimated retail auto originated yieldA was 9.44% in the quarter with 44% of originations in our highest credit quality tier.
End-of-period auto earning assets of $125.6 billion increased $10.2 billion year over year. End-of-period consumer auto earning assets of $99.9 billion increased $6.3 billion year over year, driven by strong consumer originations. End-of-period commercial earning assets of $25.7 billion were up $3.9 billion year over year, primarily driven by higher vehicle inventories.
Insurance
Pre-tax income of $80 million was up $1 million year over year. Results included a $5 million increase in fair value of equity securities compared to a $27 million increase in the prior year period. Core pre-tax incomeB of $75 million increased $23 million year over year, primarily driven by higher underwriting income.
Insurance losses of $135 million were down $6 million year over year.
Written premiums of $388 million were up $3 million year over year as increased dealer engagement and strong execution continues to drive written premium growth.
Total investment income, excluding the change in fair value of equity securitiesC, was $71 million, up $9 million year over year, driven by higher interest income.
AM Best reaffirmed Best A ratingD during the quarter, reflecting strength of the Insurance balance sheet and confidence in financial strength.
A
Estimated Retail Auto Originated Yield is a forward-looking non-GAAP financial measure determined by calculating the estimated average annualized yield for loans originated during the period. Refer to the Definitions of Non-GAAP Financial Measures and Other Key Terms and Reconciliation to GAAP later in this press release.
B
Represents a non-GAAP financial measure. Refer to the Definitions of Non-GAAP Financial Measures and Other Key Terms and Reconciliation to GAAP later in this press release.
Change in the fair value of equity securities to be recognized in current period net income. Refer to the Definitions of Non-GAAP Financial Measures and Other Key Terms and Reconciliation to GAAP later in this press release.
D
AM Best (Alfred M. Best) rating is an independent evaluation of an insurance company’s financial strength and capital adequacy.
Discussion of Segment Results
Corporate Finance
Pre-tax income of $98 million was up $3 million year over year, driven by higher net revenue partially offset by higher provision expense.
Net financing revenue of $122 million was up $11 million year over year, primarily driven by asset growth. Other revenue of $31 million was up $6 million year over year, primarily driven by higher investment income.
Provision expense of $20 million was up $12 million year over year, driven by portfolio growth.
Return on equity (ROE) for the quarter was 22%.
The held-for-investment loan portfolio of $15.8 billion is 100% first lien. Criticized assets and non-accrual loan percentages remain near historically low levels at 8% and less than 1%, respectively.
Capital, Liquidity & Deposits
Capital
Ally paid a $0.30 per share quarterly common dividend, which was unchanged year over year. Ally’s Board of Directors approved a $0.35 per share common dividend for the fourth quarter of 2026. Ally repurchased $178 million in shares during the quarter.
Ally’s common equity tier 1 (CETI) capital ratio was 10.2%. Risk-weighted assets (RWA) of $158.2 billion were up $1.3 billion quarter over quarter. Ally executed a $6 billion retail auto credit risk transfer during the quarter, the second such transaction in 2026, generating approximately 25 bps of CETI at the time of issuance.
Liquidity & Funding
Cash and cash equivalentsE totaled $7.5 billion. Highly liquid securities were $19.4 billion and unused pledged borrowing capacity at the FHLB and FRB was $6.4 billion and $27.9 billion, respectively. Total current available liquidityF was $61.2 billion, 5.2x uninsured deposit balances.
Deposits represented 86% of Ally’s funding portfolio.
Deposits
Retail deposits of $141.9 billion were up $80 million year over year, and down $1.6 billion quarter over quarter. Total deposits were $155.8 billion and Ally maintained an industry-leading customer retention rateG.
The average retail deposit portfolio yield was 3.05%, down 43 bps year over year and 7 bps quarter over quarter.
Ally Bank added 59 thousand net new deposit customers in the quarter, totaling 3.6 million. Millennials and younger customers continue to comprise the largest generation segment of new customers.
E
Cash & cash equivalents may include the restricted cash accumulation for retained notes maturing within the following 30 days and returned to Ally on the distribution date. See page 17 of the Financial Supplement for more details.
F
Total liquidity includes cash & cash equivalents, highly liquid securities and current unused borrowing capacity at the FHLB, and FRB Discount Window. See page 17 of the Financial Supplement for more details.
G
See definitions of non-GAAP financial measures and other key terms later in this document for more details.
Definitions of Non-GAAP Financial Measures and Other Key Terms
Ally believes the non-GAAP financial measures defined here are important to the reader of the Consolidated Financial Statements, but these are supplemental to and not a substitute for GAAP measures. See Reconciliation to GAAP below for calculation methodology and details regarding each measure.
Adjusted earnings per share (Adjusted EPS) is a non-GAAP financial measure that adjusts GAAP EPS for revenue and expense items that are typically strategic in nature or that management otherwise does not view as reflecting the operating performance of the company. Management believes Adjusted EPS can help the reader better understand the operating performance of the core businesses and their ability to generate earnings. In the numerator of Adjusted EPS, GAAP net income attributable to common shareholders is adjusted for the following items: (1) excludes discontinued operations, net of tax, as Ally is primarily a domestic company and sales of international businesses and other discontinued operations in the past have significantly impacted GAAP EPS, (2) adds back the tax-effected non-cash Core OID, (3) adjusts for tax-effected repositioning and other which are primarily related to the extinguishment of high-cost legacy debt, strategic activities and significant other one-time items, (4) change in fair value of equity securities, (5) excludes significant discrete tax items that do not relate to the operating performance of the core businesses, and adjusts for preferred stock capital actions that have been taken by the company to normalize its capital structure, as applicable for respective periods. See page 6 for calculation methodology and details.
Core Return on Tangible Common Equity (Core ROTCE) is a non-GAAP financial measure that management believes is helpful for readers to better understand the ongoing ability of the company to generate returns on its equity base that supports core operations. Ally’s Core net income attributable to common shareholders for purposes of calculating Core ROTCE is based on the actual effective tax rate for the period adjusted for significant discrete tax items including tax reserve releases, which aligns with the methodology used in calculating adjusted earnings per share.
- In the numerator of Core ROTCE, GAAP net income attributable to common shareholders is adjusted for discontinued operations net of tax, tax-effected Core OID, tax-effected repositioning and other which are primarily related to the extinguishment of high-cost legacy debt, strategic activities and significant other one-time items, change in fair value of equity securities, significant discrete tax items, and preferred stock capital actions, as applicable for respective periods.
- In the denominator, GAAP shareholders’ equity is adjusted for goodwill and identifiable intangibles net of DTL and tax-effected Core OID balance.
Adjusted Efficiency Ratio is a non-GAAP financial measure that management believes is helpful to readers in comparing the efficiency of its core banking and lending businesses with those of its peers. In the numerator of Adjusted Efficiency Ratio, total noninterest expense is adjusted for rep and warrant expense, Insurance segment expense, and repositioning and other which are primarily related to the extinguishment of high-cost legacy debt, strategic activities and significant other one-time items, as applicable for respective periods. In the denominator, total net revenue is adjusted for Core OID and Insurance segment revenue. See Reconciliation to GAAP on page 7 for calculation methodology and details.
Adjusted Tangible Book Value per Share (Adjusted TBVPS) is a non-GAAP financial measure that reflects the book value of equity attributable to shareholders even if Core OID balance were accelerated immediately through the financial statements. As a result, management believes Adjusted TBVPS provides the reader with an assessment of value that is more conservative than GAAP common shareholders’ equity per share. Adjusted TBVPS generally adjusts common equity for: (1) goodwill and identifiable intangibles, net of DTLs, and (2) tax-effected Core OID balance to reduce tangible common equity in the event the corresponding discounted bonds are redeemed/tendered, as applicable for respective periods.
Core Net Income Attributable to Common Shareholders is a non-GAAP financial measure that serves as the numerator in the calculations of Adjusted EPS and Core ROTCE and that, like those measures, is believed by management to help the reader better understand the operating performance of the core businesses and their ability to generate earnings. Core Net Income Attributable to Common Shareholders adjusts GAAP net income attributable to common shareholders for discontinued operations net of tax, tax-effected Core OID expense, tax-effected repositioning and other primarily related to the extinguishment of high-cost legacy debt and strategic activities and significant other, preferred stock capital actions, significant discrete tax items and tax-effected changes in equity investments measured at fair value, as applicable for respective periods. See Reconciliation to GAAP on page 6 for calculation methodology and details.
Core Original Issue Discount (Core OID) Amortization Expense is a non-GAAP financial measure for OID, and is believed by management to help the reader better understand the activity removed from: Core pre-tax income (loss), Core net income (loss) attributable to common shareholders, Adjusted EPS, Core ROTCE, Adjusted efficiency ratio, Adjusted total net revenue, and Net financing revenue (excluding Core OID). Core OID is primarily related to bond exchange OID which excludes international operations and future issuances. See page 7 for calculation methodology and details.
Core Outstanding Original Issue Discount Balance (Core OID balance) is a non-GAAP financial measure for outstanding OID and is believed by management to help the reader better understand the balance removed from Core ROTCE and Adjusted TBVPS. Core OID balance is primarily related to bond exchange OID which excludes international operations and future issuances. See page 7 for calculation methodology and details.
Core Pre-Tax Income is a non-GAAP financial measure that adjusts pre-tax income from continuing operations by excluding (1) Core OID, and (2) change in fair value of equity securities (change in fair value of equity securities impacts the Insurance and Corporate Finance, and Corporate & Other segments), and (3) Repositioning and other which are primarily related to the extinguishment of high-cost legacy debt, strategic activities and significant other one-time items, as applicable for respective periods or businesses. Management believes core pre-tax income can help the reader better understand the operating performance of the core businesses and their ability to generate earnings. See the Pre-Tax Income by Segment Table on page 3 for calculation methodology and details.
Adjusted Tangible Common Equity is a non-GAAP financial measure that is defined as common stockholders’ equity less goodwill and identifiable intangible assets, net of deferred tax liabilities. Ally considers various measures when evaluating capital adequacy, including Tangible Common Equity. Ally believes that Tangible Common Equity is important because we believe readers may assess our capital adequacy using this measure. Additionally, presentation of this measure allows readers to compare certain aspects of our capital adequacy on the same basis to other companies in the industry. For purposes of calculating Core Return on Tangible Common Equity (Core ROTCE), Tangible Common Equity is further adjusted for Core OID balance and net deferred tax asset. See page 6 for calculation methodology & details.
Net Interest Margin (excluding Core OID) is calculated using a non-GAAP measure that adjusts net interest margin by excluding Core OID. The Core OID balance is primarily related to bond exchange OID which excludes international operations and future issuances. Management believes net interest margin ex. Core OID is a helpful financial metric because it enables the reader to better understand the business’ profitability and margins.
Net Financing Revenue (excluding Core OID) is calculated using a non-GAAP measure that adjusts net financing revenue by excluding Core OID. The Core OID balance is primarily related to bond exchange OID which excludes international operations and future issuances. Management believes net financing revenue ex. Core OID is a helpful financial metric because it enables the reader to better understand the business’ ability to generate revenue.
Adjusted Other Revenue is a non-GAAP financial measure that adjusts GAAP other revenue for OID expenses, repositioning, and change in fair value of equity securities. Management believes adjusted other revenue is a helpful financial metric because it enables the reader better understand the business’ ability to generate other revenue. Adjusted Total Net Revenue is a non-GAAP financial measure that management believes is helpful for readers to understand the ongoing ability of the company to generate revenue. For purposes of this calculation, GAAP net financing revenue is adjusted by excluding Core OID to calculate net financing revenue ex. core OID. GAAP other revenue is adjusted for OID expenses, repositioning, and change in fair value of equity securities to calculate adjusted other revenue. Adjusted total net revenue is calculated by adding net financing revenue ex. core OID to adjusted other revenue.
Adjusted Noninterest Expense is a non-GAAP financial measure that adjusts GAAP noninterest expense for repositioning items. Management believes adjusted noninterest expense is a helpful financial metric because it enables the reader to better understand the business’ expenses excluding nonrecurring items.
Adjusted Provision for Credit Losses is a non-GAAP financial measure that adjusts GAAP provision for credit losses for repositioning items. Management believes adjusted provision for credit losses is a helpful financial metric because it enables the reader to better understand the business’s expenses excluding nonrecurring items.
Estimated Retail Auto Originated Yield is a financial measure determined by calculating the estimated average annualized yield for loans originated during the period. At this time there currently is no comparable GAAP financial measure for Estimated Retail Auto Originated Yield and therefore this forecasted estimate of yield at the time of origination cannot be quantitatively reconciled to comparable GAAP information.
Net Charge-Off Ratios are annualized net charge-offs divided by average outstanding finance receivables and loans excluding loans measured at fair value and loans held-for-sale.
Accelerated issuance expense (Accelerated OID) is the recognition of issuance expenses related to calls of redeemable debt.
Customer retention rate is the annualized 3-month rolling average of 1 minus the monthly attrition rate; excludes escheatment.
Repositioning is primarily related to the extinguishment of high-cost legacy debt, strategic activities, and significant other one-time items.
Corporate and Other primarily consists of activity related to centralized corporate treasury activities such as management of the cash and corporate investment securities and loan portfolios, short- and long-term debt, retail and brokered deposit liabilities, derivative instruments, the amortization of the discount associated with new debt issuances and bond exchanges, and the residual impacts of our corporate FTP and treasury ALM activities. Corporate and Other also includes certain equity investments, the management of our consumer mortgage portfolio, and reclassifications and eliminations between the reportable operating segments. Subsequent to June 1, 2016, the revenue and expense activity associated with Ally Invest was included within the Corporate and Other segment.
Change in fair value of equity securities impacts the Insurance, Corporate Finance and Corporate and Other segments. The change reflects fair value adjustments to equity securities that are reported at fair value. Management believes the change in fair value of equity securities should be removed from select financial measures because it enables the reader to better understand the business’ ongoing ability to generate revenue and income.
Reconciliation to GAAP
Adjusted Earnings per Share
| Numerator ($ millions) | 3Q 26 | 2Q 26 | 3Q 25 |
| GAAP Net Income (Loss) Attributable to Common Shareholders | $401 | $367 | $371 |
| Discontinued Operations, Net of Tax | - | - | - |
| Core OID | 20 | 19 | 17 |
| Repositioning and Other | - | - | - |
| Change in the Fair Value of Equity Securities | (5) | (29) | (27) |
| Tax on: Core OID, Repo, & Change in Fair Value of Equity Securities (21% tax rate) | | (3) | 2 | 2 |
| Significant Discrete Tax Items | | - | - | - |
| Capital Actions (preferred redemption) | | - | 15 | - |
| Core Net Income Attributable to Common Shareholders | [a] | $412 | $375 | $363 |
| Denominator | | | | |
| Weighted-Average Common Shares Outstanding (basic or diluted as applicable, thousands) | [b] | 308,133 | 311,035 | 313,823 |
| Adjusted EPS | [a] ÷ [b] | $1.34 | $1.21 | $1.15 |
Core Return on Tangible Common Equity (ROTCE)
| Numerator ($ millions) | | 3Q 26 | 2Q 26 | 3Q 25 |
| GAAP Net Income (Loss) Attributable to Common Shareholders | | $401 | $367 | $371 |
| Discontinued Operations, Net of Tax | | - | - | - |
| Core OID | | 20 | 19 | 17 |
| Repositioning and Other | | - | - | - |
| Change in Fair Value of Equity Securities | | (5) | (29) | (27) |
| Tax on: Core OID, Repo, & Change in Fair Value of Equity Securities (21% tax rate) | | (3) | 2 | 2 |
| Significant Discrete Tax Items | | - | - | - |
| Capital Actions (preferred redemption) | | - | 15 | - |
| Core Net Income Attributable to Common Shareholders | [a] | $412 | $375 | $363 |
| Denominator (Average, $ millions) | | | | |
| GAAP Shareholders’ Equity | | $15,231 | $15,550 | $14,832 |
| Preferred Equity | | (1,976) | (2,150) | (2,324) |
| GAAP Common Shareholders’ Equity | | $13,255 | $13,400 | $12,508 |
| Goodwill & Identifiable Intangibles, Net of Deferred Tax Liabilities (DTLs) | | (187) | (187) | (187) |
| Tangible Common Equity | | $13,068 | $13,213 | $12,321 |
| Tax-effected Core OID balance (tax rate 21%) | | (493) | (508) | (550) |
| Adjusted Tangible Common Equity | [b] | $12,575 | $12,705 | $11,771 |
| Core Return on Tangible Common Equity | [a] ÷ [b] | 13.1% | 11.8% | 12.3% |
Adjusted Tangible Book Value per Share
| Numerator ($ millions) | 3Q 26 | 2Q 26 | 3Q 25 |
| GAAP Shareholders’ Equity | | $14,970 | $15,491 | $15,117 |
| Preferred Equity | | (1,976) | (1,976) | (2,324) |
| GAAP Common Shareholders’ Equity | | $12,994 | $13,515 | $12,793 |
| Goodwill and Identifiable Intangible Assets, Net of DTLs | | (187) | (187) | (187) |
| Tangible Common Equity | | 12,807 | 13,328 | 12,606 |
| Tax-effected Core OID Balance (21% tax rate) | | (485) | (501) | (544) |
| Adjusted Tangible Book Value | [a] | $12,322 | $12,827 | $12,062 |
| Denominator | | | | |
| Issued Shares Outstanding (period-end, thousands) | [b] | 300,538 | 304,543 | 307,828 |
| Metric | | | | |
| GAAP Common Shareholders’ Equity per Share | | $43.24 | $44.38 | $41.56 |
| Goodwill and Identifiable Intangible Assets, Net of DTLs per Share | | (0.62) | (0.61) | (0.61) |
| Tangible Common Equity per Share | | $42.61 | $43.76 | $40.95 |
| Tax-effected Core OID Balance (21% tax rate) per Share | | (1.61) | (1.64) | (1.77) |
| Adjusted Tangible Book Value per Share | [a] ÷ [b] | $41.00 | $42.12 | $39.19 |
Adjusted Efficiency Ratio
| Numerator ($ millions) | 3Q 26 | 2Q 26 | 3Q 25 |
| GAAP Noninterest Expense | | $1,236 | $1,319 | $1,240 |
| Insurance Expense | | (365) | (434) | (374) |
| Repositioning and Other | | - | - | - |
| Adjusted Noninterest Expense for Adjusted Efficiency Ratio | [a] | $871 | $885 | $866 |
| Denominator ($ millions) | | | | |
| Total Net Revenue | | $2,332 | $2,286 | $2,168 |
| Core OID | | 20 | 19 | 17 |
| Repositioning Items | | - | - | - |
| Insurance Revenue | | (445) | (487) | (453) |
| Adjusted Net Revenue for Adjusted Efficiency Ratio | [b] | $1,907 | $1,818 | $1,732 |
| Adjusted Efficiency Ratio | [a] ÷ [b] | 45.7% | 48.7% | 50.0% |
Original Issue Discount Amortization Expense ($ millions)
| 3Q 26 | 2Q 26 | 3Q 25 |
|---|
| GAAP Original Issue Discount Amortization Expense | $21 | $20 | $19 |
| Other OID | (1) | (1) | (2) |
| Core Original Issue Discount (Core OID) Amortization Expense | $20 | $19 | $17 |
Outstanding Original Issue Discount Balance ($ millions)
| 3Q 26 | 2Q 26 | 3Q 25 |
|---|
| GAAP Outstanding Original Issue Discount Balance | $(628) | $(649) | $(708) |
| Other Outstanding OID Balance | 14 | 16 | 20 |
| Core Outstanding Original Issue Discount Balance (Core OID Balance) | $(614) | $(634) | $(688) |
| ($ millions) | | | | |
| Net Financing Revenue (Excluding Core OID) | | 3Q 26 | 2Q 26 | 3Q 25 |
| GAAP Net Financing Revenue | [w] | $1,748 | $1,684 | $1,584 |
| Core OID | | 20 | 19 | 17 |
| Net Financing Revenue (Excluding Core OID) | [a] | $1,768 | $1,703 | $1,601 |
| Adjusted Other Revenue | | 3Q 26 | 2Q 26 | 3Q 25 |
| GAAP Other Revenue | [x] | $584 | $602 | $584 |
| Accelerated OID & Repositioning Items | | - | - | - |
| Change in Fair Value of Equity Securities | | (5) | (29) | (27) |
| Adjusted Other Revenue | [b] | $579 | $573 | $557 |
| Adjusted Total Net Revenue | | 3Q 26 | 2Q 26 | 3Q 25 |
| Adjusted Total Net Revenue | [a]+[b] | $2,346 | $2,276 | $2,157 |
| Adjusted Provision for Credit Losses | | 3Q 26 | 2Q 26 | 3Q 25 |
| GAAP Provision for Credit Losses | [y] | $529 | $430 | $415 |
| Repositioning | | - | - | - |
| Adjusted Provision for Credit Losses | [c] | $529 | $430 | $415 |
| Adjusted Noninterest Expense | | 3Q 26 | 2Q 26 | 3Q 25 |
| GAAP Noninterest Expense | [z] | $1,236 | $1,319 | $1,240 |
| Repositioning | | - | - | - |
| Adjusted Noninterest Expense | [d] | $1,236 | $1,319 | $1,240 |
| Core Pre-Tax Income | | 3Q 26 | 2Q 26 | 3Q 25 |
| Pre-Tax Income (Loss) | [w]+[x]-[y]-[z] | $567 | $537 | $513 |
| Core Pre-Tax Income | [a]+[b]-[c]-[d] | $581 | $527 | $502 |
Insurance Non-GAAP Walk to Core Pre-Tax Income
| ($ millions) | 3Q 2026 | 3Q 2025 |
| GAAP | Change in the fair value of equity securities | Non-GAAP | GAAP | Change in the fair value of equity securities | Non-GAAP |
| Insurance | | | | | | |
| Premiums, Service Revenue Earned and Other | $369 | $ - | $369 | $364 | $ - | $364 |
| Losses and Loss Adjustment Expenses | 135 | - | 135 | 141 | - | 141 |
| Acquisition and Underwriting Expenses | 230 | - | 230 | 233 | - | 233 |
| Investment Income and Other | 76 | (5) | 71 | 89 | (27) | 62 |
| Pre-Tax Income from Continuing Operations | $80 | $(5) | $75 | $79 | $(27) | $52 |
Non-GAAP line items walk to Core Pre-Tax Income, a non-GAAP financial measure that adjusts Pre-Tax Income.
Additional Financial Information
For additional financial information, the third quarter 2026 earnings presentation and financial supplement are available in the Events & Presentations section of Ally’s Investor Relations Website at http://www.ally.com/about/investor/events-presentations/.
About Ally Financial Inc.
Ally Financial Inc. (NYSE: ALLY) includes the nation’s largest all-digital bank and auto finance business, driven by a mission to “Do It Right” for its customers and communities. Ally is a U.S. financial holding company with $203 billion in assets and 9.7 million customers (as of September 30, 2026). Ally Bank, Member FDIC, offers online banking products, including high-yield savings and no hidden fee checking, and was the first major U.S. bank to eliminate overdraft fees. Ally also provides investing solutions through Ally Invest, including online brokerage, automated investing, IRAs and personal advice. As a leader in auto finance, Ally provides consumer and dealer financing, insurance, and vehicle remarketing services. Ally’s seasoned corporate finance business provides capital to equity sponsors and middle-market companies. Visit ally.com
Forward-Looking Statements
This earnings release and related communications should be read in conjunction with the financial statements, notes, and other information contained in our Annual Reports on Form 10-K, Quarterly Reports on Form 10-Q, and Current Reports on Form 8-K. This information is preliminary and based on company and third-party data available at the time of the presentation or related communication.
Forward-looking statements notice
This earnings release and related communications contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements can be identified by the fact that they do not relate strictly to historical or current facts - such as statements about the outlook for financial and operating metrics and performance and future capital allocation and actions. Forward-looking statements often use words such as “believe,” “expect,” “anticipate,” “intend,” “pursue,” “seek,” “continue,” “estimate,” “project,” “preliminary,” “outlook,” “forecast,” “potential,” “target,” “objective,” “trend,” “plan,” “goal,” “initiative,” “priorities,” or other words of comparable meaning or future-tense or conditional verbs such as “may,” “will,” “should,” “would,” or “could.” Forward-looking statements convey our expectations, intentions, or forecasts about future events, circumstances, or results. All forward-looking statements, by their nature, are subject to assumptions, risks, and uncertainties, which may change over time and many of which are beyond our control. In particular, forward-looking statements about Ally’s outlook, including expectations regarding net interest margin, adjusted other revenue, net-charge offs, non-interest expenses, capital, average earning assets, and other forward-looking statements are based on our current expectations and are subject to various important factors that could cause actual results to differ materially, including general economic conditions, expectations regarding interest rates and inflation, monetary and fiscal policies in the United States and other jurisdictions, the composition of our balance sheet, including with respect to our loan and securities portfolios, the impact of our strategic initiatives, including recent initiatives involving our Credit Card and Mortgage operations, demand for new and used vehicles, new and used vehicle values and the impact of escalating tariffs and other trade policies on us, our customers and our strategic partners, and the economic impacts, volatility and uncertainty resulting therefrom.
You should not rely on any forward-looking statement as a prediction or guarantee about the future. Actual future objectives, strategies, plans, prospects, performance, conditions, or results may differ materially from those set forth in any forward-looking statement. Some of the factors that may cause actual results or other future events or circumstances to differ from those in forward-looking statements are described above and in our Annual Report on Form 10-K for the year ended December 31, 2025, our subsequent Quarterly Reports on Form 10-Q or Current Reports on Form 8-K, or other applicable documents that are filed or furnished with the U.S. Securities and Exchange Commission (collectively, our “SEC filings”).
Any forward-looking statement made by us or on our behalf speaks only as of the date that it was made. We do not undertake to update any forward-looking statement to reflect the impact of events, circumstances, or results that arise after the date that the statement was made, except as required by applicable securities laws. You, however, should consult further disclosures (including disclosures of a forward-looking nature) that we may make in any subsequent SEC filings.
This earnings release and related communications contain specifically identified non-GAAP financial measures, which supplement the results that are reported according to U.S. generally accepted accounting principles (“GAAP”). These non-GAAP financial measures may be useful to investors but should not be viewed in isolation from, or as a substitute for, GAAP results. Differences between non-GAAP financial measures and comparable GAAP financial measures are reconciled in the document. This document also includes forward-looking non-GAAP financial measures, such as outlooks for Net Interest Margin (ex. OID), Adjusted Other Revenue and Adjusted Noninterest Expense. We are unable to provide a reconciliation of these forward-looking non-GAAP financial measures to their most directly comparable GAAP financial measures because we are unable to provide, without unreasonable effort, a meaningful or accurate calculation or estimation of amounts that would be necessary for the reconciliation due to the inherent difficulty in forecasting and quantifying the occurrence and financial impact of various items that have not yet occurred, are out of our control or cannot be reasonably predicted. Forward-looking non-GAAP financial measures may vary materially from the corresponding GAAP financial measures.
Unless the context otherwise requires, the following definitions apply. The term “loans” means the following consumer and commercial products associated with our direct and indirect financing activities: loans, retail installment sales contracts, lines of credit, and other financing products excluding operating leases. The term “operating leases” means consumer- and commercial-vehicle lease agreements where Ally is the lessor and the lessee is generally not obligated to acquire ownership of the vehicle at lease-end or compensate Ally for the vehicle’s residual value. The terms “lend,” “finance,” and “originate” mean our direct extension or origination of loans, our purchase or acquisition of loans, or our purchase of operating leases, as applicable. The term “consumer” means all consumer products associated with our loan and operating-lease activities and all commercial retail installment sales contracts. The term “commercial” means all commercial products associated with our loan activities, other than commercial retail installment sales contracts. The term “partnerships” means business arrangements rather than partnerships as defined by law.
Contacts
Dan Ignacio · Ally Investor Relations · 704-444-5107 · dan.ignacio@ally.com
Peter Gilchrist · Ally Communications (Media) · 704-644-6299 · peter.gilchrist@ally.com