EL7.AI
StocksMedium•21 October 2026•
4 min read

Ally Financial Profit Rises to $401 Million in Third Quarter

Key Facts

1Net income attributable to common shareholders rose to $401 million from $367 million in the previous quarter.
2Adjusted earnings per share were $1.34, compared with $1.21 in the previous quarter and $1.15 a year earlier.
3Provisions for credit losses rose to $529 million from $430 million in the previous quarter and $415 million a year earlier.
4The board declared a quarterly cash dividend of $0.35 per share, up 17% from the previous dividend.

Ally Financial reported in results released on October 20 that net income attributable to common shareholders rose to $401 million in the third quarter of 2026, alongside lower funding costs and higher provisions for credit losses. In financial results tables filed with the U.S. Securities and Exchange Commission, the company compared that profit with $367 million in the second quarter of the same year. Adjusted earnings per share for the period through the end of September were $1.34, according to the company's financial presentation. Adjusted earnings per share were $1.21 in the previous quarter, reflecting a quarterly improvement in this profitability measure. They also exceeded the $1.15 recorded in the third quarter of the previous year. Total adjusted net revenue for the third quarter was $2,346 million, according to the financial tables published with the results.

On return metrics, Ally Financial reported a core return on tangible common equity of 13.1% in the third quarter, according to its results presentation filed with the U.S. regulator. This return, a non-GAAP measure, rose from 11.8% in the second quarter of 2026. It also improved from 12.3% in the corresponding period a year earlier. Meanwhile, adjusted tangible book value per share stood at $41.00 at the end of the third quarter, according to the company's financial tables. That value declined from $42.12 per share at the end of the previous quarter. It remained above the $39.19 recorded in the third quarter of the previous year, however, leaving the quarterly and annual comparisons pointing in different directions for this metric.

On credit, Ally Financial's provisions for credit losses rose to $529 million in the third quarter of 2026, according to the company's financial disclosure. That compared with provisions of $430 million in the second quarter of the same year. On an annual basis, provisions also exceeded the $415 million recorded in the third quarter of the previous year. In retail auto, the annualized net charge-off rate was 1.89% during the period, according to the credit performance tables published with the results. The rate rose from 1.57% in the previous quarter, alongside the quarterly increase in provisions for credit losses. Consumer originations in the auto finance business totaled $12.9 billion in the third quarter, according to the company's financial presentation.

On funding, the company's cost of funds fell to 3.45% in the third quarter, according to the financial tables filed with the U.S. Securities and Exchange Commission. That cost was 3.48% in the second quarter of the same year. Ally Financial attributed its continued margin expansion to "profitable growth and disciplined deposit pricing," according to the wording in its results presentation. For the full year 2026, the company is targeting a net interest margin of between 3.60% and 3.65%, excluding the impact of original issue discount. Its financial guidance also includes growth in average earning assets of between 5% and 6% for the full year. The company thus set out its margin and asset growth targets within its 2026 guidance, alongside the results it announced for the quarter ended in September.

Ally Financial's total assets stood at about $203 billion at the end of September 2026, according to the company statement accompanying its quarterly results announcement. The company said its customer base totaled 9.7 million as of the same date, in its statement published on October 20. On capital, the third-quarter financial presentation showed a common equity tier 1 capital ratio of 10.2%. Ally Financial also disclosed $178 million in share repurchases during the third quarter of the year. The repurchases were among the capital actions the company presented with its results, alongside the board's declaration of a quarterly cash dividend for common shareholders.

The board announced in the company's dividend statement an increase in the quarterly cash dividend on common stock to $0.35 per share. Ally Financial said the declared dividend represented a 17% increase from the previous quarterly dividend. The board set November 2, 2026, as the record date for shareholders eligible for the cash dividend. Before the payment date, Chief Financial Officer Russ Hutchinson is scheduled to give a presentation at the BancAnalysts Association conference in Boston on November 5, 2026, according to a separate company announcement. Ally Financial scheduled the presentation for approximately 9:35 a.m. U.S. Eastern Time. The cash dividend is scheduled to be paid to shareholders of record on November 16, 2026, according to the timetable announced by the board.