Key Points
Ally's third-quarter adjusted earnings per share rose 16% year over year.
Retail auto loan originations reached $12.9 billion in the third quarter, up 10% year over year.
Corporate finance loans grew 40% year over year to $15.8 billion.
On its third quarter of 2026 earnings call, held on Oct. 20, 2026, Ally (NYSE:ALLY) announced adjusted earnings per share (EPS), a measure of net profit per common share, of $1.34, up 16% year over year. The bank is expanding its higher-yielding corporate and auto loans to replace lower-yielding legacy mortgages. That balance sheet shift improves long-term profitability and shareholder returns. Three things management said stand out.
1. Auto Application Volume Expands the Underwriting Funnel
Ally processed 4.8 million auto loan applications during the quarter. That expanding application volume gives the bank more choice, allowing it to select better credit risks and push loan prices higher without losing deal flow.
In auto, we decisioned 4.8 million applications, up 20% year over year, as our refined go to market strategy continues to expand the top of the funnel and further our reach in our industry.
-- Michael G. Rhodes, Chief Executive Officer
2. Balance Sheet Remixing Powers Net Interest Margin Expansion
The bank is growing retail auto and corporate loans while letting lower-yielding home mortgages run off. That asset rotation boosts net interest margin (NIM), the spread between interest earned on loans and interest paid on deposits.
Growth in these asset classes continues to replace the runoff of lower yielding mortgages, providing a structural tailwind to net interest margin over time.
-- Russell Hutchinson, Chief Financial Officer
3. Disciplined Execution Supports Capital Return and Asset Growth
Ally raised its quarterly dividend to $0.35 per share, marking its first payout increase since 2022. Management continues to repurchase stock and fund loan growth while keeping its Common Equity Tier 1 (CET1) ratio, a core bank solvency metric, above 10%.
CET1 of 10.2% was up 10 basis points year over year, and we remain pleased with our ability to execute a story of "and" not "or." That is, we are growing our core businesses, maintaining strong capital levels, and returning capital to shareholders.
-- Michael G. Rhodes, Chief Executive Officer
Looking Ahead
Operational momentum is accelerating across key lending segments, and leadership isn't hiding its satisfaction with the trajectory. Deep dealer relationships and digital deposit scale provide lasting advantages. Meanwhile, strategic focus remains on credit discipline and deposit pricing.
We have been clear about what we have set out to accomplish, and our results today represent another step on our path to mid-teens returns. While that path may not always be linear, our conviction continues to grow.
-- Michael G. Rhodes, Chief Executive Officer
Ongoing technology investments and tight expense controls position the bank for sustainable profitability. That combination of efficiency and selective growth supports expanding returns over the long haul.
In total, our focused strategy and disciplined execution continue to drive improving operational and financial performance.
-- Russell Hutchinson, Chief Financial Officer
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