Ally Financial Sees Mixed Bag in Second-Quarter Earnings
Ally Financial (NYSE: ALLY) posted a 58% decline in second-quarter earnings as net income fell to $241 million, down from $582 million in the second quarter of 2019. But earnings were up compared with the first quarter, when the online bank posted a $319 million net loss.
Ally's adjusted earnings per share of $0.61 beat analysts' estimates, but were down 37% from $0.97 in Q2 2019.
The lower earnings stemmed from an 8.9% drop in net financing revenue to $1.05 billion. The bank, a major auto lender, was hurt by stay-at-home orders as auto sales declined. The company cited lower commercial auto balance and portfolio yield, losses on off-lease vehicles, higher mortgage premium amortization, and higher consolidated liquidity levels as reasons for the decrease. But there was gradual improvement over the quarter.
Source Fool.com
