Ally Financial reported adjusted EPS of $0.99 for Q2 2025, beating estimates by 22% and marking a 36% increase from the prior year. Net income grew 70% year over year as the company focused on core segments like auto, insurance, and digital banking. The quarterly dividend remained at $0.30 per share, with capital ratios improving to a CET1 ratio of 9.9% for Q2 2025. The sale of its credit card business in April 2025 strengthened financial performance and pushed capital ratios higher. The company’s focus on digital banking and automotive finance led to continued growth despite challenges in profitability.

In Q2 2025, Ally Financial saw significant improvements in various segments including auto finance, insurance, and corporate finance. The completed sale of the credit card business boosted the CET1 ratio, while auto finance showed increased loan originations and improved credit quality. The insurance segment saw a rise in premiums but also higher losses due to weather-related claims. Meanwhile, corporate finance maintained a high-quality portfolio with a focus on secured lending. The company’s digital banking continued to grow, with increased retail deposits and new customer acquisitions.

Looking ahead, Ally Financial expects strategic deposit repricing and funding improvements to offset any headwinds from the sale of the card business. The company plans to maintain its forward dividend policy and $0.30 per share quarterly payout. Investors should monitor trends in auto finance profitability, credit quality, insurance impacts, deposit flows, and potential share repurchases in the coming quarters.

Overall, Ally Financial’s focus on core segments, strategic divestitures, and digital banking growth position the company for continued success in the consumer finance industry.

Read more at Nasdaq.: Ally Financial Posts 36% Adjusted EPS