Ally Financial (ALLY) Fourth Quarter Earnings Report Highlights

Shares of Ally Financial Inc. (ALLY) fell more than 3% today after the digital financial services company released its financial results for the fourth quarter and full year 2021.

For the fourth quarter, Ally posted earnings per share of $1.79, down 1% year-over-year, while total net income was $2.2 billion, in up 11% year over year.

For the full year, the company posted EPS of $8.22, up 186% from 2020. Total net income was $8.4 billion, up 25% from one year to the next.

Auto Finance Growth

Speaking on the results, Ally CEO Jeffrey J. Brown said, “We generated the highest levels of total revenue, PPNR and net income, added new product capabilities and exceeded 10 million customers in total on the wide range of Ally products.

“I’m incredibly proud of the 10,400 teammates who operate on a ‘Do It Right’ approach delivering differentiated products and services every day.”

The company also received a major boost from its auto finance business, which posted pretax profit of $839 million in the fourth quarter, up $276 million from the year-ago quarter. .

Ally attributed the increase to higher net financing income, lower provision for credit losses and lower non-interest expense.

Invest in employees

Ally’s strong year-end was also helped by its commitment to its employee base.

Brown added, “I’m also proud of the actions we’ve taken to support our customers, employees and communities in 2021.”

“For our clients, we were the first in the industry to eliminate overdraft fees, while increasing the minimum wage by 18% and expanding benefits for our employees.”

Additionally, Ally completed its $2 billion full-year 2021 share buyback program in the fourth quarter, repurchasing approximately 40 million shares during the year.

The company’s board of directors also approved an ordinary dividend of $0.30 per share for the first quarter of 2022, a 20% increase over the previous quarterly dividend and the 7th increase in the last seven years.

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