Q2 2026 Ally Financial Inc Earnings Call Transcript
Key Points
- Ally Financial Inc (ALLY) reported a 22% year-over-year increase in adjusted EPS, reaching $1.21.
- The company achieved a 10% year-over-year growth in adjusted net revenue, driven by asset growth and margin expansion.
- Retail, auto, and corporate finance assets grew by $8 billion year-over-year, marking an 8% increase.
- The company's CET1 ratio increased by 20 basis points year-over-year, enhancing capital flexibility.
- Ally Financial Inc (ALLY) returned over $300 million to shareholders through share repurchases since December.
- Provision expense increased by $46 million year-over-year due to CECL reserve builds, impacting EPS by $0.08.
- Retail deposit balances decreased by $2.6 billion during the quarter, attributed to seasonal tax outflows.
- The company faced a $15 million expense related to the early redemption of Series B preferred stock.
- Retail auto net charge-offs were down, but delinquencies remained a concern due to macroeconomic factors.
- The company anticipates elevated reserve builds under CECL in 2026 due to strong asset growth.
Good day and thank you for standing by. Welcome to Ally Financial's second quarter 2026 earnings conference call. (Operator Instructions) Please be advised that today's conference is being recorded.
I'd now like to hand the conference over to Sean Leary, Chief Financial Planning and Investor Relations Officer. Please go ahead.
Thank you, Elizabeth. Good morning, and welcome to Ally Financial's second-quarter 2026 earnings call. This morning, our CEO, Michael Rhodes; and our CFO, Russ Hutchinson, will review Ally's results before taking questions. The presentation we'll reference can be found on the Investor Relations section of our website, ally.com.
Forward-looking statements and risk factor language governing today's call are on page 2. GAAP and non-GAAP measures pertaining to our operating performance and capital results are on page 3. As a reminder, non-GAAP or core metrics are supplemental to and not a substitute for US GAAP measures. Definitions and
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