Two pieces of news provide a flicker of hope amid the doom and gloom.
DETROIT, Feb. 1, 2013 /PRNewswire/ --Ally Financial Inc. (Ally) today announced that the sale of its Canadian auto finance operation, Ally Credit Canada Limited, and ResMor Trust to Royal Bank of Canada (RBC) has been completed. Ally received $4.1 billion USD for the business in the form of a $3.7 billion payment at closing and $400 million of dividends paid following the announcement of the transaction. Total proceeds represent a premium to book value of approximately $620 million.
"This marks a significant point of progress in our strategic plans to further strengthen Ally and best position the company to return additional capital to the U.S. Treasury," said Ally Chief Executive Officer Michael A. Carpenter. "This is the first of the international transactions to be completed, and we are encouraged by the progress we are making on the remaining sale processes."
Carpenter continued, "We continue to be focused on successful execution of our remaining strategic actions, which will enable Ally to further strengthen and grow our leading U.S.-based automotive services and direct banking franchises."
In October 2012, Ally announced the agreement to sell its Canadian operations. Also in October, the company reached an agreement to sell its Mexican insurance subsidiary, followed by an agreement in November to sell its automotive finance operations in Europe, Latin America and a joint venture stake in China. The remaining transactions are expected to close throughout 2013.
About Ally Financial
Ally Financial Inc. is a leading automotive financial services company powered by a top direct banking franchise. Ally's automotive services business offers a full suite of financing products and services, including new and used vehicle inventory and consumer financing, leasing, inventory insurance, commercial loans and vehicle remarketing services. Ally Bank, the company's direct banking subsidiary, offers an array of deposit products, including certificates of deposit, savings accounts, money market accounts, IRA deposit products and interest checking. Ally's Commercial Finance unit provides financing to middle-market companies across a broad range of industries.
With approximately $182 billion in assets as of Sept. 30, 2012, Ally operates as a bank holding company. For more information, visit the Ally media site at http://media.ally.com or follow Ally on Twitter: @Ally.
SOURCE Ally Financial