Ally sets revenue record in ’22, auto finance income down

The lender also generated a record net interest margin for the year, with revenue growing 2.7% in 2022 to reach a record $8.43 billion, according to Ally Financial.

But the Bank of Detroit on Friday said its net profit fell last year as the bank set aside more money for potential loan losses, paid more in non-interest expenses and lost revenue from external channels. It still fell 44% to $1.71 billion, he said. loan.

“In 2022, Ally continued its strategic evolution as it navigated a fluid macroeconomic environment,” CEO Jeffrey Brown said in a statement. “Our overall business optimization has been evident in our ability to generate record net profit margins and gross revenues.”

Ally ended 2022 with pre-tax net income from its core auto finance business dropping to $437 million in the fourth quarter, down 48% from the same period last year. Looking at 2022 as a whole, Arie’s auto finance income fell 34% year-over-year to $2.25 billion.

However, Ally’s auto retail yield rose 0.56 points to 7.37% in the fourth quarter and rose 1.14 points to 8.24% for the full year. Interim CFO Bradley Brown said on Friday Ally’s earnings call that consumer auto rates are up 3.95 percentage points in 2022 compared to 2021.

Ally underwrote $9.2 billion worth of auto loans and leases in the fourth quarter, down 16% from the year-ago quarter. Year-over-year originations remained steady at her $46.4 billion, up 0.2%. Bank auto loan and lease application volumes fell to 2.9 million in the fourth quarter, down 2.3% from the same period last year, but annual application volumes fell 4% from 2021 to he 12.5 million.

Mr. Brown said car sales were below pre-pandemic levels. “Our ability to generate strong originations demonstrates the advantage of the scale and depth of application his flow,” he said by phone.

Banks worked with 23,290 dealers in the fourth quarter, up 11% year-on-year. The year-end results are the same.

Results from the company’s earnings report on Friday include:

  • Fourth Quarter Net Income: $2.2 billion, up 0.1% from the prior year.
  • Fourth Quarter Net Income: $278 million, down 57% from the year-ago quarter.
  • Fourth Quarter Net Income Attributable to Common Stockholders: $251 million, down 60% from the year-ago quarter.
  • 2022 net earnings: $8.42 billion, an increase of 2.7% from the previous year.
  • 2022 Net Income: $1.71 billion, down 44% from the year-ago quarter.
  • 2022 net income attributable to ordinary shareholders: $1.6 billion, down 7% from the year-ago quarter.

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