Ally Financial (NYSE:ALLY) shares climbed 8.8% in Friday premarket trading after the bank and auto lender’s Q4 results beat Wall Street expectations as its insurance operations swung to a profit in the quarter.
Q4 adjusted EPS of $1.08, vs. $1.01 consensus, fell from $1.12 in Q3 and from $2.02 in Q4 2021.
Q4 revenue of $2.20B vs. $2.06B consensus, rose from $2.02B in the prior quarter and $2.20B from a year ago.
Consumer auto originations fell to $9.2B from $12.3B in Q3.
Net financing revenue was $1.67B vs. $1.72B in the prior quarter and from $1.65B in the year-ago period.
Core return on tangible common equity was 17.6% vs. 17.2% in Q3 and 22.1% a year ago.
Provision for loan losses was $490M, up from $438M in the prior quarter and $210M in the year-ago quarter.
Noninterest expense of $1.27B increased from $1.16B in Q3 and $1.09B in Q4 2021.
Auto Finance pretax income of $437M vs. $488M in the prior quarter and $839M in the year-ago period.
Insurance pretax income was $101M vs. a $30M loss in Q3 and income of $91M in Q4 2021.
Corporate Finance pretax income of $67M vs. $91M in the prior quarter and $73M in the year-ago quarter.
Conference call at 9:00 AM ET.
Earlier, Ally Financial (ALLY) non-GAAP EPS of $1.08 beats by $0.07, revenue of $2.2B beats by $140M