Executive Summary

Adjusted EPS of $1.15 rose 166% year over year and 16% sequentially; GAAP EPS was $1.18. EPS beat Wall Street consensus ($1.01), while S&P’s standardized “Revenue” metric missed (see Estimates Context) . EPS consensus and revenue consensus data from S&P Global.*
Net interest margin ex. OID expanded to 3.55% (+10 bps q/q), with management now guiding full‑year NIM to 3.45–3.50% and expecting Q4 NIM to be roughly flat sequentially .
Credit normalization continued: retail auto NCOs at 1.88% (−36 bps y/y), 30+ DPD improved to 4.90% (−30 bps y/y); provision fell to $415M (−$230M y/y) .
CET1 increased to 10.1%; Ally closed a $5B retail auto credit risk transfer at the tightest spread in program history (~20 bps CET1 lift at issuance), supporting capital flexibility alongside a maintained $0.30 dividend .
Operational momentum: record 4.0M consumer applications driving $11.7B originations; originated yield 9.72% with 42% in highest credit tier; management rolled out ally.ai to 10,000 employees to improve productivity .

What Went Well and What Went Wrong

What Went Well

Strong EPS and margin expansion: “Net interest margin, excluding core OID, expanded to 3.55%... Operating leverage is improving,” said CFO Russ Hutchinson; adjusted EPS up 166% y/y .
Auto finance momentum: 4.0M applications, $11.7B originations, estimated originated yield 9.72%, with 42% highest credit tier—evidence of disciplined underwriting and dealer engagement .
Credit normalization: retail auto NCO rate down 36 bps y/y to 1.88%; retail auto 30+ DPD improved to 4.90% (second consecutive y/y improvement) .

Quotes:

CEO Michael Rhodes: “The momentum is real, and we’re confident in our ability to sustain it.”
CFO Russ Hutchinson: “We expect fourth quarter NIM to be roughly flat to third quarter… NIM to migrate to the upper threes over time.”
CFO Russ Hutchinson: “We delivered another quarter with no new non‑performing loans and no charge‑offs” in Corporate Finance (30% ROE) .

What Went Wrong

Auto finance net financing revenue down y/y on lower lease gains and commercial assets; Auto segment pre‑tax of $421M declined $51M q/q .
Insurance GAAP combined ratio rose to 102.6% (from 100.6% y/y), reflecting higher P&C exposure; insurance pre‑tax fell y/y to $79M .
Retail deposits decreased $1.3B q/q (seasonal outflows), average retail deposit yield fell to 3.48% q/q (−10 bps), highlighting liability sensitivity to rate cuts .
S&P standardized “Revenue” missed consensus (see Estimates Context), underscoring potential definitional gaps versus company “Total Net Revenue” [GetEstimates]*.

Financial Results

Headline P&L, Margin, Returns

Metric	Q3 2024	Q2 2025	Q3 2025
GAAP Total Net Revenue ($USD Billions)	$2.135	$2.082	$2.168
Adjusted Total Net Revenue ($USD Billions)	$2.090	$2.064	$2.157
GAAP EPS ($)	$0.55	$1.04	$1.18
Adjusted EPS ($)	$0.43	$0.99	$1.15
NIM ex. OID (%)	3.32%	3.45%	3.55%
Core ROTCE (%)	6.2%	13.6%	15.3%

Segment Pre-Tax Income

Segment Pre-Tax ($USD Millions)	Q3 2024	Q2 2025	Q3 2025
Automotive Finance	$355	$472	$421
Insurance	$102	$28	$79
Corporate Finance	$105	$96	$95
Corporate & Other	$(297)	$(160)	$(82)
Dealer Financial Services	$457	$500	$500
Consolidated Pre-Tax	$265	$436	$513

KPIs and Balance Sheet

KPI	Q3 2024	Q2 2025	Q3 2025
Consumer Auto Originations ($USD Billions)	$9.4	$11.0	$11.7
Est. Retail Auto Originated Yield (%)	9.63%	9.82%	9.72%
Retail Auto NCO Rate (%)	2.24%	1.75%	1.88%
Retail Auto 30+ DPD (%)	5.20%	4.88%	4.90%
Retail Deposits ($USD Billions)	$141.449	$143.158	$141.8
CET1 Ratio (%)	9.8%	9.9%	10.1%
Adjusted Efficiency Ratio (%)	51.1%	50.9%	50.0%

Results vs S&P Global Consensus

Metric	Q3 2024	Q2 2025	Q3 2025
EPS Consensus Mean ($)	0.524	0.810	1.008
EPS Actual ($)	0.95	0.99	1.15
Revenue Consensus Mean ($USD Billions)	2.031	2.039	2.107
Revenue Actual ($USD Billions)	1.659	1.914	1.978

Values retrieved from S&P Global.*
EPS: Beat in Q3 2025 ($1.15 vs $1.01). Revenue (S&P standardized): Miss in Q3 2025 ($1.98B vs $2.11B). EPS/Revenue consensus and actual from S&P Global GetEstimates.*

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
NIM (ex. OID)	FY 2025	3.40–3.50% (July)	3.45–3.50%; Q4 ~flat q/q	Narrowed upward range; Q4 flat
Adjusted Other Revenue	FY 2025	Flat y/y (July)	Flat y/y (Current)	Maintained
Adjusted Noninterest Expense	FY 2025	Flat y/y (July)	Flat y/y (Current)	Maintained
Retail Auto NCOs	FY 2025	~2.00–2.15% (July)	~2.00% (low end)	Lowered toward low end
Consolidated NCOs	FY 2025	~1.35–1.45% (July)	~1.30%	Lowered
Average Earning Assets	FY 2025	↓2% y/y (July)	↓2% y/y (unchanged); EOP assets ~flat	Maintained (EOP clarification)
Effective Tax Rate	FY 2025	~22%	~22%	Maintained
Dividend	Q4 2025	$0.30 per share (ongoing)	$0.30 declared	Maintained

Earnings Call Themes & Trends

Topic	Previous Mentions (Q1 & Q2 2025)	Current Period (Q3 2025)	Trend
AI/Technology	Strategic focus; repositioning; no AI detail in Q1; deposit beta mechanics highlighted in Q2	Rolled out ally.ai to 10,000 employees to streamline and automate tasks	Increasing tech enablement
Tariffs/Macro	Headwind to dealer floorplan; lean inventories impacting average earning assets (Q2)	Demand pull-forward tied to tariffs and EV lease tax credit expiration; lean inventories persist	Persistent external headwinds, tactical benefits
Product Performance (Auto)	Originations $10.2B (Q1), $11.0B (Q2) with strong S-tier mix	Record applications (4.0M) and $11.7B originations; originated yield 9.72%	Strengthening
Credit/Servicing	Q1/Q2 vintage rollover; servicing enhancements (digital comms, extensions)	Continued improvement in DPD and NCOs; detailed servicing tactics reiterated	Normalizing, sustained benefits
Capital & CRT	Sale of Credit Card (+40 bps CET1) (Q2)	$5B CRT closed (~20 bps CET1 at issuance); CET1 10.1%	Strengthening capital
Deposits & Beta	Lower deposit rates; beta lag in early cuts with catch‑up later (Q2)	Q4 NIM flat given asset sensitivity; beta evolution case study referenced	Beta dynamics repeating
Share Repurchase	Priority but paused (Q2)	Repurchases remain a priority; improving CET1 and earnings increase flexibility	Path clearing

Management Commentary

“We achieved significant year‑over‑year earnings growth… adjusted EPS up 166%… Core ROTCE was 15%… driven by structural tailwinds, continued credit normalization, and disciplined expense and capital management.” – CEO Michael Rhodes .
“We narrowed the [NIM] range to 3.45% to 3.5%… expect fourth quarter NIM to be roughly flat… We expect NIM to migrate to the upper threes over time, but it won’t be a straight line.” – CFO Russ Hutchinson .
“Corporate Finance delivered another strong quarter… 30% ROE… no new non‑performing loans and no charge‑offs.” – CFO Russ Hutchinson .

Q&A Highlights

Subprime/credit: Management sees lower credit tiers performing better than priced expectations; benefits from tightened 2023 underwriting and servicing enhancements (digital outreach, extensions requiring cash, selective repo timing) .
NIM trajectory: Asset‑sensitive near term; Q4 flat despite rate cuts; case study on deposit beta evolution underscores confidence in margin path to upper 3% over time .
Competition & origination strength: Approval/capture rates consistent historically; elevated lease (EV) volume due to tax credit expiry; large fragmented market supports Ally’s dealer momentum .
Earning assets: FY ending balances ~flat with low single-digit medium-term growth led by retail auto and corporate finance; floorplan remains relationship tool amid lean inventories .
Capital & CRT: Expect continued opportunistic CRTs; share repurchases remain a key priority as CET1 and organic capital generation improve .

Estimates Context

EPS beat: Adjusted EPS of $1.15 vs S&P consensus $1.01; sequential beat vs $0.81 in Q2 [GetEstimates]*.
Revenue miss (S&P standardized): S&P “Revenue” actual $1.98B vs consensus $2.11B. Note this S&P “Revenue” measure can differ from company “Total Net Revenue” ($2.168B GAAP), given banks’ varied reporting of net financing and other revenues [GetEstimates]*.
Implications: Consensus may adjust upward for EPS on sustained margin expansion and lower NCO guide (~1.3% consolidated, ~2.0% retail auto), while revenue models should align definitions to Ally’s total net revenue construct and segment mix .

Key Takeaways for Investors

EPS momentum and margin expansion persisted; watch Q4 NIM being flat (rate cuts), but medium‑term path to upper 3% NIM remains intact .
Credit is normalizing with three straight quarters of y/y improvements in retail auto NCOs/DPD, supporting lower provision and less earnings volatility .
Dealer financing strength (record applications, S‑tier mix, yields) plus corporate finance ROE (~30%) drive accretive asset remixing and returns .
Capital rising (CET1 10.1%); CRTs provide flexible, low-cost capital; stable dividend at $0.30; repurchases likely as capital and earnings build .
Short-term trading: EPS beat and credit normalization are positives; “Revenue miss” on S&P standardized measure may create headline volatility—clarify definitions; Q4 NIM flat tempers near‑term upside [GetEstimates]* .
Medium-term thesis: Margin expansion, disciplined costs (adjusted efficiency 50.0%), mix shift toward higher-yielding assets, and improving capital support ROTCE trajectory .
Monitor macro (employment, tariffs) and deposit beta evolution as key variables for NIM path; Ally’s digital bank and brand continue to support deposit stability and pricing power .

EPS/Revenue consensus and actual from S&P Global GetEstimates.*

Ally Financial Inc. (ALLY)·Q3 2025 Earnings Summary