Results
$1.1811.0%$537 million$2.3 billion
GAAP EPSRETURN ON COMMON EQUITYPRE-TAX INCOMEGAAP TOTAL NET REVENUE
$1.2111.8%$527 million$2.3 billion
ADJUSTED EPS 1CORE ROTCE 1CORE PRE-TAX INCOME 1ADJUSTED TOTAL NET REVENUE 1
FINANCIAL HIGHLIGHTS
4GAAP EPS of $1.18 was up 14% year over yearAdjusted EPS 1 of $1.21 was up 22% year over year
7GAAP Pre-tax income of $537 million was up 23% year over yearCore pre-tax income 1 of $527 million was up 26% year over year
Return on Common Equity of 11.0% was up ~20 bps year over yearCore ROTCE 1 of 11.8% was up ~80 bps year over year
NIM ex.
OID 1 of 3.63% was up 11 bps quarter over quarter and up 18 bps year over year
Common equity tier 1 ratio of 10.1% was up ~20 bps year over yearExecuted $148 million of share repurchases during the quarter
OPERATIONAL HIGHLIGHTS
$13.3 billion of consumer auto originations sourced from a record 4.6 million consumer auto applications
Estimated retail auto originated yield 1 of 9.09% with 47% of volume within the highest credit quality tier
8Retail auto net charge-offs of 157 bps were down 18 bps year over year
Insurance written premiums of $382 million were up 9% year over year
$144 billion of retail deposits92% FDIC insured87% core deposit funded
69 consecutive quarters of retail deposit customer growth, serving 3.6 million customers
Corporate Finance HFI portfolio of $13.7 billion with non-performing loans at less than 1%ROE of 32%
Management commentary
CEO COMMENTS
“Our results through the first half of the year reflect the strength of our franchises and disciplined execution of our teammates,” said Chief Executive Officer, Michael Rhodes.
“The actions we have taken to sharpen our focus, enhance our balance sheet, and invest in our core businesses are translating into improved earnings, expanding returns, and increasing confidence in our path forward.
Dealer Financial Services once again demonstrated the strength of our franchise.
1Our scale and market position drove record application volume supporting more than $13 billion in originations, up 21% year-over-year.
Our underwriting approach remains disciplined and responsive to market conditions, enabling us to grow while maintaining attractive risk-adjusted returns.
2Insurance written premiums were up nearly 10% year-over-year as our team deepens relationships and expands our integrated dealer offering.
3Corporate Finance continues to deliver, producing a 32% return on equity while maintaining exceptional credit quality.
The portfolio’s resilience and growth reflect our prioritization of credit risk management and the long-standing relationships that have guided our success through cycles.
At Ally Bank, we continue to benefit from the ongoing shift toward digital-first banking.
Our retail depositor base has grown for more than 17 consecutive years with industry leading retention rates reflecting the value our customers place in our unique proposition.
Meanwhile, our $144 billion in retail deposits provide a durable source of funding that supports accretive growth across our franchises and reinforces our competitive position.
As we enter the second half of 2026, we are building on a position of strength.
While the operating environment remains dynamic, our strategy is working, our team is aligned, and the strength of our core franchises provides the resilience and flexibility to perform across market cycles.
Our earnings power and return profile continue to improve, and I am confident in our ability to deliver long-term value for shareholders.”
Second Quarter 2026 Financial Results
Results
Discussion of Second Quarter 2026 Results
Net income attributable to common shareholders was $367 million in the quarter, compared to $324 million in the second quarter of 2025.
Net financing revenue was $1.7 billion, up $168 million year over year.
Net interest margin (“NIM”) of 3.59% and net interest margin excluding core OID A of 3.63% were up 18 bps year over year.
Other revenue increased $36 million year over year to $602 million which included a $29 million increase in fair value of equity securities in the quarter compared to a $35 million increase in the second quarter of 2025.
Adjusted other revenue A of $573 million increased $42 million year over year as we continue to benefit from momentum across our diversified revenue streams including Insurance, SmartAuction, and Passthrough programs.
6Provision for credit losses increased $46 million year over year to $430 million, as continued improvement in credit was offset by CECL reserve build associated with asset growth during the quarter.
5Noninterest expense increased $57 million year over year.
Second Quarter 2026 Financial Results
Pre-Tax Income by Segment
(2)Change in fair value of equity securities primarily impacts the Insurance, Corporate Finance, and Corporate and Other segments.
Reflects equity fair value adjustments which requires change in the fair value of equity securities to be recognized in current period net income.
Discussion of Segment Results
Auto Finance
Pre-tax income of $410 million was down $62 million year over year, primarily driven by higher provision and noninterest expense, partially offset by higher revenue.
Net financing revenue of $1.3 billion was up $22 million year over year, primarily driven by growth in retail and commercial auto assets.
Ally’s retail auto portfolio yield, excluding the impact from hedges, increased 6 bps year over year to 9.25% as the portfolio benefited from higher yielding vintages.
Provision for credit losses of $442 million was up $55 million year over year as continued improvement in retail auto credit was more than offset by CECL reserve build associated with asset growth in the quarter.
The retail auto net charge-off rate of 1.57% decreased 18 bps year over year.
Retail auto delinquencies 30+ days past due, inclusive of non-accrual loans, decreased 8 bps year over year to 4.80%, representing five consecutive quarters of year over year improvement.
Noninterest expense of $568 million was up $36 million year over year, primarily due to higher servicing expenses related to asset growth.
Consumer auto originations of $13.3 billion included $8.3 billion of used retail volume, or 63% of total originations, $4.2 billion of new retail volume, and $739 million of lease.
Estimated retail auto originated yield B was 9.09% in the quarter with 47% of originations in our highest credit quality tier.
End-of-period auto earning assets of $123.4 billion increased $10.0 billion year over year.
End-of-period consumer auto earning assets of $97.8 billion increased $5.5 billion year over year driven by strong consumer originations.
End-of-period commercial earning assets of $25.6 billion were up $4.5 billion year over year primarily driven by higher vehicle inventories.
Insurance
Pre-tax income of $53 million was up $25 million year over year.
Results included a $29 million increase in fair value of equity securities compared to a $30 million increase in the prior year period.
Core pre-tax income C of $24 million increased $26 million year over year, primarily driven by higher realized investment gains.
Insurance losses of $208 million were up $5 million year over year.
Written premiums of $382 million were up $33 million year over year.
Total investment income, excluding the change in fair value of equity securities D , was $85 million, up $26 million year over year driven by higher realized investment gains.
Discussion of Segment Results
Corporate Finance
Pre-tax income of $122 million was up $26 million year over year driven by higher net revenue and favorable provision expense.
Net financing revenue of $116 million was up $8 million year over year primarily driven by asset growth.
Other revenue of $29 million was up $10 million year over year primarily driven by favorable equity investment gains and syndication income.
Provision benefit of $12 million was $10 million favorable year over year primarily due to a specific reserve release associated with the sale of a legacy healthcare cash flow exposure.
Return on equity (ROE) for the quarter was 32%.
The held-for-investment loan portfolio of $13.7 billion is 100% first lien.
Criticized assets and non-accrual loan percentages remain near historically low levels at 10% and less than 1%, respectively.
Capital, Liquidity & Deposits
Capital
Capital return
Ally paid a $0.30 per share quarterly common dividend, which was unchanged year over year.
Ally’s Board of Directors approved a $0.30 per share common dividend for the third quarter of 2026.
Ally repurchased $148 million in shares during the quarter.
Corporate events
Additionally, $1.0B of fixed-rate reset perpetual preferred stock was issued at 7.1% with proceeds from the transaction used to support the redemption of $1.35B outstanding Series B preferred stock during the quarter.
Results
Ally’s common equity tier 1 (CET1) capital ratio was 10.1%.
Risk weighted assets (RWA) of $156.8 billion were up $1.6 billion quarter over quarter.
Corporate events
Liquidity & Funding
Results
Cash and cash equivalents E totaled $7.5 billion.
Highly liquid securities were $20.6 billion and unused pledged borrowing capacity at the FHLB and FRB was $7.5 billion and $27.2 billion, respectively.
Total current available liquidity F was $62.8 billion, 5.3x uninsured deposit balances.
Deposits represented 87% of Ally’s funding portfolio.
Deposits
Retail deposits of $143.6 billion were up $408 million year over year, and down $2.6 billion quarter over quarter.
Total deposits were $154.0 billion and Ally maintained an industry-leading customer retention rate G .
The average retail deposit portfolio yield was 3.12%, down 46 bps year over year and 15 bps quarter over quarter.
Ally Bank added 63 thousand net new deposit customers in the quarter, totaling 3.6 million.
Millennials and younger customers continue to comprise the largest generation segment of new customers.
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