Ally Lifts Fourth-Quarter Dividend to 35 Cents a Share

The Tip Desk · October 22, 2026 · 3 min read

GAAP earnings were $1.30 a share as core pre-tax income reached $581 million and the board raised the common payout.

Ally Financial (ALLY) raised its fourth-quarter common dividend to $0.35 a share from the $0.30 paid in the third quarter, after GAAP earnings of $1.30 a share and core pre-tax income of $581 million.

The digital-first auto lender posted GAAP pre-tax income of $567 million, up 11% from a year earlier, and return on common equity of 12.1%. Adjusted earnings were $1.34 a share. Core ROTCE was 13.1%.

GAAP total net revenue was $2.332 billion, up 8% year over year. Adjusted total net revenue was $2.346 billion. Net financing revenue rose $164 million year over year to $1.748 billion. Other revenue was $584 million. Adjusted other revenue was $579 million.

Net interest margin excluding core OID was 3.66%, up 3 bps from the second quarter after an 11 bps expansion in that prior period. GAAP NIM was 3.62%.

Provision for credit losses increased $114 million year over year to $529 million, which the company said was primarily CECL reserve builds associated with asset growth. Noninterest expense was $1.236 billion.

Automotive Finance pre-tax income was $337 million, down $84 million year over year, on higher provision expense from asset growth and higher noninterest expense, partially offset by higher revenue. Net financing revenue in the segment was $1.3 billion, up $15 million year over year on retail and commercial auto asset growth. Retail auto portfolio yield excluding hedges was 9.20%.

Auto Finance provision for credit losses was $511 million, up $101 million year over year. The retail auto net charge-off rate was 1.89%, up 1 bps year over year. Retail auto delinquencies 30+ days past due, inclusive of non-accrual loans, rose 6 bps year over year to 4.96%.

Consumer auto originations were $12.9 billion, up 10% year over year, on a record 4.8 million applications. Estimated retail auto originated yield was 9.44%, with 44% of volume in the highest credit quality tier. End-of-period auto earning assets were $125.6 billion, up $10.2 billion year over year. Consumer auto earning assets were $99.9 billion. Commercial earning assets were $25.7 billion.

Insurance pre-tax income was $80 million. Core pre-tax income was $75 million, up $23 million year over year on higher underwriting income. Written premiums were $388 million, up 1% year over year after a 9% increase in the second quarter. Insurance losses were $135 million. AM Best reaffirmed a Best A rating.

Corporate Finance pre-tax income was $98 million. Return on equity was 22%. Net financing revenue was $122 million. The held-for-investment portfolio was $15.8 billion, 100% first lien, with non-accrual loans less than 1%.

Retail deposits were $141.9 billion, up $80 million year over year. Total deposits were $155.8 billion. The average retail deposit yield was 3.05%. Ally Bank added 59 thousand net new deposit customers, for a 70th consecutive quarter of retail deposit customer growth, serving 3.6 million customers. Deposits represented 86% of the funding portfolio.

The common equity tier 1 ratio was 10.2%. Risk-weighted assets were $158.2 billion. Ally executed a $6 billion retail auto credit risk transfer, the second such transaction in 2026, generating approximately 25 bps of CETI at issuance, and repurchased $178 million of shares. Cash and cash equivalents were $7.5 billion. Total current available liquidity was $61.2 billion.