Ally Financial has reported its first quarter 2018 financial results, showing that net income attributable to common shareholders was $250 million in the quarter, compared to net income attributable to common shareholders of $214 million for the first quarter of 2017.
Net financing revenue improved to $1 billion, up $70 million from a year ago, driven by asset and deposit growth and liability mix shift.
Net financing revenue was $45 million lower quarter-over-quarter largely due to lower day count and lower lease yields as well as costs associated with interest rate hedges established in the first quarter to reduce sensitivity to short term rate increases.
Other revenue decreased $42 million year-over-year, with $40 million of the decline attributable to the implementation of an accounting pronouncement.
Provision for loan losses declined $10 million year-over-year to $261 million as a result of relatively flat retail auto net charge-offs and lower hurricane specific reserves.
Noninterest expense increased $36 million from a year ago, driven primarily by expenses related to the growth of consumer and commercial products and one-time tax reform related bonuses.
“Retail deposits grew $3.7 billion, a record for Ally for a first quarter, and remain an important structural driver of our earnings growth path. Additionally, we added 59 thousand retail deposit customers during the quarter, the highest quarterly growth we’ve seen in five years,” said Jeffrey Brown, Ally’s CEO. “Overall, we remain well positioned for the remainder of 2018 and see a path of strong earnings growth, continued diversification, and improving shareholder returns.”