Ally Financial recently reported its second quarter results showing that the net financing revenue was $1 billion, which is up 3 percent year-over-year.
Net income attributable to common shareholders was $349 million in the quarter, compared to net income attributable to common shareholders of $252 million in the second quarter of 2017, driven by higher net financing revenue, lower provision for loan losses and a lower effective tax rate, partially offset by a decline in other revenue and higher noninterest expense.
Net financing revenue was $45 million higher quarter-over-quarter largely due to higher retail and commercial auto yields.
“Our success in diversifying and optimizing the auto finance business helped drive higher risk-adjusted returns, with retail auto portfolio yield increasing 28 bps year-over-year and retail auto net charge-offs declining 16 bps year-over-year,” said Jeffrey Brown, Ally CEO. “Additionally, consumer originations increased by $1 billion versus the prior year period as we continued to diversify and grow our dealer relationships.”
Other revenue decreased $24 million year-over-year, primarily due to loan sale activity in the prior year period.
Provision for loan losses declined $111 million year-over-year to $158 million.
Noninterest expense increased $29 million year-over-year, driven primarily by costs associated with the continued growth of our core businesses and restructuring expense in the auto finance business, partially offset by lower weather losses.
