Ally Financial reports 9.9% profit drop in first quarter 2011

Article by Christian A., on May 3, 2011

As the income of Ally Financial Inc. decreased at two of its core units, it reported a 9.9% drop in its profit in the first quarter. In a statement, the auto and home lender that’s preparing to go public said that its net income fell to $146 million in the firs quarter from $162 million in the same period the previous year.

Ally, which is formerly known as GMAC, is 74% owned by the U.S. government after having received at least three taxpayer-funded bailouts valued at $17.2 billion.

Ally has filed with securities regulators to sell shares to the public. CEO Michael Carpenter was able to make the company profitable once again last year by putting the focus back on auto lending and by cutting the risk in the mortgage business.

Ally, which was formerly the finance arm of General Motors, is the primary lender to GM and Chrysler Group LLC dealers. It is also included in the top five U.S. mortgage originators and servicers.

In its statement, Carpenter said that while core pre-tax income was lower because of the moderation of some factors that proved to be advantageous last year, it expects to be even more profitable in the future.

Carpenter also said that as the cost of funds continues to drop, its credit mix gets more balanced and the “original issue discount from bond exchanges runs off.”

Ally said that its net income from continuing operations in North American auto finance dropped from $612 million in the first quarter of 2010 to $518 million in the first quarter of 2011.

If you liked the article, share on:

Pin It

Comments

Recommended

Tesla marked a major milestone as it surpassed Ford in market capitalization. Automaker Tesla, formerly known as Tesla Motors, closed out the trading on March 27, 2017, with a market...
by - March 30, 2017
The mid-cycle facelift for the Mercedes-Benz's S-Class have been disclosed to the public eye via these leaked shots. The images that recently surfaced and others like it were published online...
by - March 30, 2017
Reddit user Jdubbswrx spotted a rather deceptive move coming from the German automotive manufacturer Audi. He posted an image of the supposed exhaust of the new 2018 Audi SQ5 sporting...
by - March 29, 2017
McLaren car owners will be thanking the automotive company as it has decided to roll out new goodies for the 540C, 570S and 570GT sports car line-up. From this series...
by - March 29, 2017
On July 11, Audi is set to reveal its flagship luxury sedan, the all new A8. And at this moment, none of us are sure how this model will look....
by - March 29, 2017
Facebook

Youtube Channel

Tip Us
Do you have a tip for us?
Did you film an important event?
Contact us
Newsletter
Subscribe to our newsletter!
Subscribe
Galleries