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

Login or Create new account to add a comment!

Recommended

More positive news has been pouring in before the year ends. For those who have been waiting to hear the latest word on Toyota 86, we have some great news....
by - December 10, 2016
Hyundai is making the green vehicle race more competitive by offering three powertrain types -- pure electric (EV), hybrid (EV plus combustion engine) and plug-in hybrid (PHEV) – in one...
by - December 9, 2016
Although specs for the new Renault Megane had already surfaced several weeks ago, we didn’t know that the company has cooked up something new. Aside from the 200hp gasoline, Renault‘s...
by - December 9, 2016
For the first time in fifty-eight years, Infiniti registers its first US-Spec Q60 Coupe in Cuba. American products have not been allowed entry into Cuba for six decades. But it...
by - December 9, 2016
Chevrolet has already given out the pricing for some of its 2018 Equinox models. Not only will the new Equinox be available in both the US and Canada, it is...
by - December 9, 2016
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