Ally Financial (NYSE:ALLY) delivered a powerful performance for the first quarter of 2026, headlined by an adjusted earnings per share of $1.11—an approximate 90% surge compared to the same period last year.
The results reflect a company firing on all cylinders, capitalizing on high-yield auto originations and a resilient deposit base to drive a core return on tangible common equity (ROTCE) of 11.1%.
The bank's core pre-tax income reached $470 million, up $223 million year-over-year.
This growth was underpinned by a widening net interest margin (NIM), which climbed to 3.52%.
The expansion in NIM, up 17 basis points year-over-year, indicates that Ally is successfully navigating the interest rate environment by repricing its loan portfolio faster than its deposit costs.
Operationally, Ally's auto finance engine hit a new milestone, processing a record 4.4 million consumer auto applications during the quarter.
This massive funnel resulted in $11.5 billion of consumer auto originations at an impressive estimated yield of 9.60%.
Critically, the company maintained a disciplined risk profile, with 41% of that volume coming from its highest credit quality tier and retail auto net charge-offs improving to 197 bps—a 15 bps decrease from the prior year.
The company’s "Ally Bank" segment also continued its streak of consistency, marking 68 consecutive quarters of retail deposit customer growth.
Ally now serves 3.5 million deposit customers with a total retail deposit base of $146 billion.
The bank’s funding remains highly stable, with 92% of deposits FDIC-insured and 88% of the balance sheet core deposit funded.