Ally Financial (NYSE: ALLY) boosts core profit 16% as provisions rise

What happened

Ally Financial Inc. (NYSE: ALLY) reported third-quarter 2026 net income attributable to common shareholders of $401 million, up from $371 million a year earlier. GAAP EPS was $1.30, adjusted EPS was $1.34, GAAP pre-tax income was $567 million, and return on common equity was 12.1%. Core pre-tax income was $581 million, and adjusted total net revenue was $2.35 billion.

Net financing revenue was $1.7 billion, up $164 million year over year, while other revenue was flat at $584 million. Provision for credit losses rose to $529 million. The company also approved a $0.35 per share common dividend for the fourth quarter of 2026 and repurchased $178 million of shares during the quarter.

Key numbers

Metric	Latest	Change	Source
GAAP EPS	$1.30	from $1.18, +10.2%	SEC 8-K
Core pre-tax income	$581 million	from $502 million, +15.7%	SEC 8-K
Net financing revenue	$1.75 billion	from $1.58 billion, +10.4%	SEC 8-K
Provision for credit losses	$529 million	from $415 million, +27.5%	SEC 8-K
Common equity tier 1 capital ratio	10.2%	from 10.1%, +0.1 percentage points	SEC 8-K
Retail auto delinquencies	4.96%	from 4.90%, +0.06 percentage points	SEC 8-K

Read more: Ally Financial (ALLY) stock analysis and investment case

Why it matters

OptimistFi's case is that Ally works if its all-digital deposit base can keep funding costs manageable while dealer-centered auto finance and insurance earns through a normalizing credit cycle. This quarter was mixed for that view. Core pre-tax income rose 15.7% year over year to $581 million, and GAAP net income attributable to common shareholders increased to $401 million.

Auto Finance net financing revenue was $1.3 billion, up $15 million year over year, driven mainly by growth in retail and commercial auto assets. Consumer auto originations reached $12.9 billion, up 10% year over year, and insurance written premiums were $388 million, up 1%. Ally said its common equity tier 1 capital ratio was 10.2%, and total current available liquidity was $61.2 billion, equal to 5.2x uninsured deposit balances.

Ally Bank added 59 thousand net new deposit customers in the quarter, bringing the total to 3.6 million. But provision for credit losses increased $114 million year over year to $529 million, mainly because of CECL reserve builds tied to asset growth. Retail auto net charge-offs rose to 189 bps from 188 bps, and retail auto delinquencies climbed 6 bps year over year to 4.96%.

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What's next

The next scheduled report is the fourth quarter 2026 earnings release. It will show whether revenue and core profit keep rising as provisions move. Stronger results would mean net financing revenue and core profit keep growing while provisions stop climbing.

The approved $0.35 per share common dividend sets the next capital-return step for 2026. Another increase in provisions would weaken the case.

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