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Ally Financial Inc. (NYSE: ALLY) is a leading financial services company that operates the largest all-digital bank in the United States. The company provides a wide range of financial products and services, including automotive financing, insurance, mortgage lending, corporate financing, and investment advisory services. Ally serves approximately 11 million customers and is committed to delivering innovative, customer-centric solutions to meet diverse financial needs.
- Automotive Finance Operations - Offers a comprehensive suite of financing services, including retail installment sales contracts, loans, operating leases, dealer floorplan financing, and vehicle remarketing services, catering to consumers, automotive dealers, and municipalities.
- Insurance Operations - Provides consumer finance protection and insurance products, such as vehicle service contracts (VSCs), vehicle maintenance contracts (VMCs), guaranteed asset protection (GAP), and select commercial insurance coverages, primarily sold through automotive dealers.
- Corporate Finance Operations - Delivers senior secured asset-based and leveraged cash flow loans to U.S.-based middle-market companies, with a focus on private equity-sponsored businesses and commercial real estate lending.
- Mortgage Finance Operations - Includes direct-to-consumer mortgage offerings and bulk purchases of high-quality jumbo and low-to-moderate income (LMI) mortgage loans, offering fixed- and adjustable-rate mortgage products.
- Ally Invest - Enhances securities-brokerage and investment-advisory services, enabling customers to manage their savings and wealth through innovative digital tools.
- Ally Credit Card - Features a digital-first credit card platform with advanced technology and analytics-based underwriting, designed to deepen customer relationships and expand Ally's offerings.
| Name | Position | External Roles | Short Bio | Start Date |
|---|---|---|---|---|
Michael G. Rhodes Executive | Chief Executive Officer | Board of Trustees at Duke University | Michael G. Rhodes is the CEO of Ally Financial, with over 25 years in financial services, previously CEO of Discover Financial Services. He focuses on digital transformation and data-driven decision-making. | 2024-04-29 |
Russell E. Hutchinson Executive | Chief Financial Officer | Board of Trustees Member at The Studio Museum in Harlem; Council Member on the Council on Chicago Booth | Former Goldman Sachs executive with 22 years of experience, Hutchinson is known for his strategic and innovative leadership in finance. | 2023-07-03 |
Brian H. Sharples Board | Director, Chair of the Technology Committee | Chair of the Board of GoDaddy Inc.; Director for RVshare LLC and Design Pickle, LLC | Co-founder of HomeAway, Sharples has a strong background in technology and entrepreneurship. | 2018-08 |
David Reilly Board | Director | Director at Data Dynamics, Inc.; Board Member of NPower | Reilly has extensive experience in technology and network security, previously holding leadership roles at Bank of America. | 2022 |
Franklin W. Hobbs Board | Chairman of the Board | Director at Amherst Holdings LLC; Director at Basin Holdings LLC | Hobbs has been a director at Ally since 2009, overseeing its transformation into a leading digital financial services company. | 2009-05 |
Kenneth J. Bacon Board | Director, Chair of the Risk Committee | Co-founder and Partner of RailField Realty Partners; Board Member at Arbor Realty Trust, Comcast Corporation, and Welltower, Inc. | Bacon has extensive experience in real estate and finance, previously serving in leadership roles at Fannie Mae. | 2015-02 |
Kim S. Fennebresque Board | Director, Chair of the Compensation, Nominating, and Governance Committee | Board Member at Albertsons Companies, Inc.; Board Member at BlueLinx Holdings Inc.; Supervisory Board of BAWAG P.S.K. | Fennebresque has extensive experience in investment banking and corporate governance, previously CEO of Cowen Group, Inc.. | 2009-05 |
Marjorie Magner Board | Director | Member of Brooklyn College Foundation; Member of Dean’s Advisory Council for the Krannert School of Management at Purdue University | Magner has a background in consumer banking and private equity, previously Chairman and CEO of Citigroup's Global Consumer Group. | 2010-05 |
Mayree C. Clark Board | Director | Supervisory Board Member at Deutsche Bank AG; Director at Allvue Systems Holdings, Inc.; Member of the Council on Foreign Relations | Clark has a strong background in risk management and governance, serving on multiple boards and committees. | 2009-05 |
Thomas P. Gibbons Board | Director | Board Member at Invesco Ltd.; Board of Trustees at Pace University; Advisory Board Member at Wake Forest University’s Business School | Former CEO of BNY Mellon, Gibbons brings significant financial services experience to Ally's board. | 2023-08-01 |
William H. Cary Board | Director, Chair of the Audit Committee | Board Member at Rush Enterprises, Inc.; Director of LendMark Financial Services, LLC | Former GE executive with 29 years of experience, Cary contributes to Ally's governance and financial oversight. | 2016-06 |
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Given the continued elevation in retail auto net charge-offs and the upward revisions to your loss guidance, can you provide more clarity on when you expect credit losses to peak and what specific actions you're taking to mitigate further credit deterioration?
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With your net interest margin guidance lowered to approximately 3.2% for 2024 and acknowledging near-term pressures from rate movements, how confident are you in achieving the medium-term NIM target of 4%, and what risks could prevent you from reaching this goal?
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You've mentioned building capital in anticipation of Basel III requirements and potential headwinds from CECL phase-in and changes in EV lease accounting; what CET1 ratio are you targeting, and how will these factors impact your capital return plans to shareholders?
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Considering the uncertainty around credit normalization timing and net interest margin expansion, what specific measures are you implementing to ensure you achieve the mid-teens return on equity over time, and how are you adjusting your expense management and capital allocation strategies accordingly?
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In light of competitive pressures on deposit pricing and the expectation that deposit betas will be slow to decline even as the Fed reduces rates, how do you plan to manage your funding costs, and what strategies are in place to optimize your deposit base to support net interest margin expansion?
| Customer | Relationship | Segment | Details |
|---|---|---|---|
GM | Financing for GM dealers and retail customers | Automotive financing | In 2024: 30% of new vehicle dealer inventory financing, 22% of consumer automotive financing volume. |
Stellantis | Financing for Stellantis dealers and retail customers | Automotive financing | In 2024: 46% of new vehicle dealer inventory financing, 16% of consumer automotive financing volume. |
Notable M&A activity and strategic investments in the past 3 years.
| Company | Year | Details |
|---|---|---|
Fair Square Financial Holdings LLC | 2021 | The acquisition was an all-cash transaction valued at $750 million intended to enhance Ally's digital consumer banking platform by adding a digital-first credit card capability that has shown robust growth, and it was expected to close by Q1 2022, adding significant earnings contribution and capital impact. |
Recent developments and announcements about ALLY.
8-K Filings
8-K Filing
·7 days agoOther EventsView full 8-K filing →Ally executed a balance sheet repositioning by selling approximately $2.8B in lower-yielding securities for $2.5B, resulting in a pre-tax loss of $250M in Q1. Proceeds were reinvested in shorter duration, highly liquid securities, reducing the CET1 ratio by about 12bps and modestly boosting net interest income and margin.
Press Releases
Press Release
·Feb 12, 2025, 1:49 AMView full press release →Ally Financial declares a quarterly cash dividend of $0.30 per share on common stock and $11.75 per share on Series B and Series C preferred securities. Record date: Jan 31; payments on Feb 14 (common) and Feb 15 (preferred).