Ally Financial (NYSE:ALLY) shares were volatile Wednesday after the Detroit-based lender posted fourth-quarter adjusted earnings that comfortably cleared Wall Street hurdles, though a slight revenue miss highlighted the ongoing challenges of high funding costs.
The leading digital bank reported net income of $327 million, or $0.95 per share.
On an adjusted basis, profit reached $1.09 per share, surpassing the Zacks Investment Research consensus of $1.01.
Despite the profit beat, quarterly revenue of $2.12 billion fell just shy of the $2.13 billion analyst target, reflecting the impact of higher interest rates on the bank's deposit costs.
The bank’s core automotive franchise showed resilience, with $9.6 billion in consumer auto originations during the quarter—a 4.4% increase year-over-year.
This volume was driven by robust application flow, even as Ally maintained disciplined credit underwriting in a cooling used-car market.
For the full year 2025, Ally generated total revenue of $7.91 billion and a profit of $852 million, navigating a year defined by "asset-liability remixing."