DETROIT (Reuters) -- Ally Financial Inc., the largest U.S. auto loan company, said quarterly profit fell 37 percent as it earned less money from its core automotive and dealer financing businesses.
Net income fell to $268 million in the third quarter ended Sept. 30 from $423 million a year earlier, Ally said in a statement.
Excluding special items, the company earned 51 cents per share, in line with analysts' average estimate, according to Thomson Reuters I/B/E/S.
Total auto loans originated by Ally fell 6 percent to $11.1 billion compared to the third quarter of 2014.
Income from auto financing fell 16 percent to $347 million, while income from dealer financing decreased 19 percent to $387 million.
The company has been trying to boost loan activity and market share by financing cars made by Ford Motor Co. and Nissan Motor Co. after General Motors, the nation's largest automaker ranked by sales, replaced Ally as the exclusive lessor for Buick, GMC and Cadillac vehicles in February.
Ally saw slight deterioration in credit performance versus a year ago, a trend that has continued over several quarters.
Chief Financial Officer Christopher Halmy said the deterioration reflects a decision Ally made a few years ago to take on riskier loans, but that the lender's credit portfolio was performing as expected.
"We're seeing no real credit trends that are disturbing," Halmy said.
Ally made good progress reducing expenses and lowering funding costs, according to a report from Guggenheim Securities analyst Eric Wasserstrom.
The company's shares closed Wednesday at $20.70, and they have lost about 12 percent in value this year.
Ally's shares were lower by more than 3 percent midday in New York.