Ally Financial saw 3rd quarter net income drop by 76% to $91 million

Article by Anita Panait, on November 7, 2013

Ally Financial posted a 76-percent drop in net income to $91 million in the third quarter of 2013, no thanks to downsizing and a one-time charge of $107 million for settling mortgage-related claims with the Federal Housing Finance Agency and the Federal Deposit Insurance Corp. The company logged an 11-percent decline in revenue in the quarter to $1.11 billion.

Ally called the flat volume figures at its automotive operations a positive achievement, given a hyper-competitive market and the loss of subvented business from Chrysler Group. Ally chief executive Michael Carpenter said during a conference call that the company has “massively diversified” its business and cut its reliance on subvention from the carmakers. He said that Ally is making “a strategic transformation,” from a captive to “being very much a market-driven auto finance competitor.”

Ally’s US consumer originations in the quarter were flat at $9.6 billion in auto loans and leases. That included a higher mix of leases and used cars. Leases accounted for 29 percent of total figure in the third quarter of 2013, compared to just 27 percent a year earlier. Used cars accounted for 27 percent, up from 24 percent.

The company logged a less than a percent surge in third-quarter pretax income for auto finance to $339 million in 2013 from $337 million in 2012. It should be noted that around 35 percent of the company’s net income in the third quarter of 2012 was from now discontinued operations. Ally has disposed most of its overseas operations to GM Financial in April.

If you liked the article, share on:

Comments

Recommended

J.D. Power has officially released the 2017 Vehicle Dependability Study, an annual list of the most dependable brands in the auto industry. Once again coming on top is Lexus, the...
by - February 26, 2017
Citroen revealed that its entry to the Chinese market is moving forward with the planned release of the new generation C5. While still on sale on this part of the...
by - February 26, 2017
There is definitely a second-generation Super Series from McLaren. Even in camouflaged form, it is simply incredible. But while we still don’t have the full data on how truly dynamic...
by - February 25, 2017
A lot of fans are excited with the news that Porsche could be unveiling a performance version of its Panamera 4 E-Hybrid plug-in hybrid during the 2017 Geneva Auto Show. ...
by - February 25, 2017
Tesla is finally setting a more “definite” schedule with regards to the official launch of the Tesla Model 3 electric car. A “limited production” is said to be slated to...
by - February 25, 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