[GUEST ACCESS MODE: Data is scrambled or limited to provide examples. Make requests using your API key to unlock full data. Check https://lunarcrush.ai/auth for authentication information.]  LongYield [@LongYield](/creator/twitter/LongYield) on x 4471 followers Created: 2025-07-18 21:56:46 UTC $ALLY Ally Financial Inc. Earnings Call Key Highlights: (2/2) 📉 Credit Trends & Provisioning Consolidated NCO rate improved to 1.10%, down XX basis points sequentially, helped by the card business sale and strong performance in retail auto. Provision for credit losses was $XXX million, down XX% QoQ and XX% YoY, primarily due to the credit card sale and continued portfolio seasoning. Retail auto coverage remained steady at 3.75%, while consolidated reserve coverage increased slightly due to loan mix dynamics. Improved delinquency trends and stable used car pricing supported a narrowed FY 2025 retail auto NCO guidance of 2.00%–2.15%, down from prior outlook. 💰 Capital & Shareholder Returns CET1 ratio rose to 9.9%, with more than $X billion in excess capital above SCB minimums; fully phased-in CET1 including AOCI was 7.6%. The credit card sale added XX basis points of capital; CRT (credit risk transfer) remains a preferred tool to optimize capital and is expected to be used in H2. Adjusted tangible book value per share increased XX% YoY to $37, and $XX excluding AOCI, more than doubling since 2014. Quarterly dividend maintained at $0.30/share, and management reaffirmed share buybacks remain a priority as capital levels improve. 🏗️ Balance Sheet & NIM Outlook Management reaffirmed full-year NIM guidance of 3.4%–3.5% with confidence in reaching the upper half of the range depending on rate path. NIM expansion in Q2 was aided by favorable lease yields, accelerated loan prepayments, and securities repositioning—many of which are now embedded in the run rate. Future NIM upside is expected from continued repricing of CDs and liquid savings, though at a slower pace than Q2. Ally remains asset-sensitive in the near term and liability-sensitive in the medium term, making the NIM outlook dependent on the timing and magnitude of future Fed cuts. 📊 Strategic Focus & Risk Reduction Ally completed major strategic shifts including the sale of noncore credit card and point-of-sale businesses, enhancing ROE and simplifying the balance sheet. Reduced interest rate risk through hedging and securities repositioning while transitioning the loan book toward higher-yielding assets. Liquidity position remains robust with $XX billion in available liquidity, representing 5.9x uninsured deposits. Credit enhancements and digital servicing tools have contributed to improved credit performance and borrower engagement. 🌐 Brand Equity, Customer Engagement & Culture Net Promoter Score remains above industry averages, and XX% of new deposit clients are referred via Ally’s “Refer a Friend” program. The Ally brand continues to resonate with consumers through purposeful marketing, community partnerships, and customer-centric innovation. Employee engagement ranked in the top XX% across industries for the sixth consecutive year, with scores eight points above financial industry benchmarks. Investments in AI, cyber defenses, and digital capabilities reflect a commitment to operational excellence and long-term value creation. XXX engagements  **Related Topics** [losses](/topic/losses) [credit cards](/topic/credit-cards) [quarterly earnings](/topic/quarterly-earnings) [$ally](/topic/$ally) [ally financial inc](/topic/ally-financial-inc) [stocks financial services](/topic/stocks-financial-services) [Post Link](https://x.com/LongYield/status/1946328315830149549)
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LongYield @LongYield on x 4471 followers
Created: 2025-07-18 21:56:46 UTC
$ALLY Ally Financial Inc. Earnings Call Key Highlights: (2/2)
📉 Credit Trends & Provisioning
Consolidated NCO rate improved to 1.10%, down XX basis points sequentially, helped by the card business sale and strong performance in retail auto.
Provision for credit losses was $XXX million, down XX% QoQ and XX% YoY, primarily due to the credit card sale and continued portfolio seasoning.
Retail auto coverage remained steady at 3.75%, while consolidated reserve coverage increased slightly due to loan mix dynamics.
Improved delinquency trends and stable used car pricing supported a narrowed FY 2025 retail auto NCO guidance of 2.00%–2.15%, down from prior outlook.
💰 Capital & Shareholder Returns
CET1 ratio rose to 9.9%, with more than $X billion in excess capital above SCB minimums; fully phased-in CET1 including AOCI was 7.6%.
The credit card sale added XX basis points of capital; CRT (credit risk transfer) remains a preferred tool to optimize capital and is expected to be used in H2.
Adjusted tangible book value per share increased XX% YoY to $37, and $XX excluding AOCI, more than doubling since 2014.
Quarterly dividend maintained at $0.30/share, and management reaffirmed share buybacks remain a priority as capital levels improve.
🏗️ Balance Sheet & NIM Outlook
Management reaffirmed full-year NIM guidance of 3.4%–3.5% with confidence in reaching the upper half of the range depending on rate path.
NIM expansion in Q2 was aided by favorable lease yields, accelerated loan prepayments, and securities repositioning—many of which are now embedded in the run rate.
Future NIM upside is expected from continued repricing of CDs and liquid savings, though at a slower pace than Q2.
Ally remains asset-sensitive in the near term and liability-sensitive in the medium term, making the NIM outlook dependent on the timing and magnitude of future Fed cuts.
📊 Strategic Focus & Risk Reduction
Ally completed major strategic shifts including the sale of noncore credit card and point-of-sale businesses, enhancing ROE and simplifying the balance sheet.
Reduced interest rate risk through hedging and securities repositioning while transitioning the loan book toward higher-yielding assets.
Liquidity position remains robust with $XX billion in available liquidity, representing 5.9x uninsured deposits.
Credit enhancements and digital servicing tools have contributed to improved credit performance and borrower engagement.
🌐 Brand Equity, Customer Engagement & Culture
Net Promoter Score remains above industry averages, and XX% of new deposit clients are referred via Ally’s “Refer a Friend” program.
The Ally brand continues to resonate with consumers through purposeful marketing, community partnerships, and customer-centric innovation.
Employee engagement ranked in the top XX% across industries for the sixth consecutive year, with scores eight points above financial industry benchmarks.
Investments in AI, cyber defenses, and digital capabilities reflect a commitment to operational excellence and long-term value creation.
XXX engagements
Related Topics losses credit cards quarterly earnings $ally ally financial inc stocks financial services