Ally Financial Posts Second Quarter 2014 Financial Results
In its release on
Results for the quarter were primarily driven by strong performance from the auto finance franchise. Consumer financing originations increased to
"Ally's second quarter results demonstrate clear progress in our key objectives to improve profitability and drive value for our shareholders," said Chief Executive Officer
"Historically high weather losses due to severe hail storms in the Midwest during the quarter impacted results in the insurance business, but written premiums remained strong, totaling
Carpenter concluded, "We continue to make significant headway in all three areas of focus - net interest margin expansion, expense reduction and regulatory normalization - to reach double-digit core return on tangible common equity, which improved 190 basis points since last quarter to 8.4 percent. Going forward, our continued focus will be executing upon our three-pronged approach to further increase shareholder value, as we fully exit TARP and advance our leading dealer financial services and direct banking franchises."
Liquidity and Capital Highlights
-Improved cost of funds, excluding OID, by 63 basis points in the past year.
-Improved preliminary second quarter 2014 capital ratios, with Tier 1 at 12.3 percent and Tier 1 Common at 9.4 percent.
Ally's consolidated cash and cash equivalents were
Ally's total equity was
Ally continued to execute a diverse funding strategy during the second quarter of 2014. This strategy included strong growth in deposits, which represent approximately 43 percent of Ally's funding portfolio, and completion of new term U.S. auto securitizations totaling approximately
Ally Bank Highlights
-Retail deposits grew to
-Approximately 68 percent of Ally's total assets were funded at
-Customer base grew 18 percent year-over-year to approximately 854,000 primary customers.
-Sustained strong momentum with 45 percent brand recognition and 93 percent customer satisfaction.
-Launched iPad app to further expand the franchise's suite of mobile services.
-Ranked again top 5 among customers and top 10 among non- customers in 2014
For purposes of quarterly financial reporting, operating results for
Deposits The company remains focused on growing quality deposits through
Automotive Finance Highlights
-Consumer financing originations totaled
-Net financing revenue improved 14 percent versus the prior year period.
-Automotive earning assets increased 7 percent year-over-year.
-Strong growth in new and used originations from diversified dealers, up 48 percent year-over-year, and now accounts for 20 percent of total consumer originations.
-Used originations totaled
-Increased average commercial auto balances to approximately
Auto Finance reported pre-tax income of
Total end-of-period earning assets for Auto Finance, comprised primarily of consumer and commercial receivables and leases, were
Consumer financing originations in the second quarter of 2014 were
-Solid written premiums, totaling
-Unprecedented weather-related losses due to severe hailstorms in the Midwest.
Insurance, which focuses on dealer-centric products such as extended vehicle service contracts (VSCs) and dealer inventory insurance, reported a pre-tax loss from continuing operations of
Mortgage During the second quarter of 2014, Mortgage reported pre- tax income of
Corporate and Other Corporate and Other primarily consists of Ally's centralized treasury activities, the residual impacts of the company's corporate funds transfer pricing, asset liability management activities, and the amortization of the discount associated with debt issuances and bond exchanges. Corporate and Other also includes the Corporate Finance business, certain investment portfolio activity and reclassifications, eliminations between the reportable operating segments, and overhead previously allocated to operations that have since been sold or discontinued.
Corporate and Other reported a core pre-tax loss (excluding core OID amortization expense and repositioning items) of
Core OID amortization expense totaled
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