Ally Financial worked with 2,702 more dealerships and financed $1.4 billion more in loans and leases during the first quarter, though its volume of applications fell 3.6 percent compared with a year earlier.
CFO Jennifer LaClair said on an earnings call Thursday that Ally's $11.6 billion in auto loan and lease originations represented the "highest first quarter in 11 years." She said the 14 percent increase from a year earlier showed "the agility and scale of our auto business."
Ally reported 3.17 billion loan and lease applications and worked with 21,688 dealerships on consumer loans or other business, such as floorplan, in the first quarter.
Ally said Thursday its auto portfolio yield dropped 0.15 point during the first quarter to 6.75 percent, and the bank projected its return on the first quarter's new auto loans and leases would drop to 7.1 percent, down 0.14 point from a year earlier.
"With low inventory and robust used-car pricing, consumers are accelerating trade-ins, resulting in elevated prepayment expense," LaClair said. However, she said Ally expected its yield on new loans would stay above 7 percent for the fifth year in a row in 2022.
LaClair said a "terrific amount of demand" remained in the market, with an estimated 4 million to 5 million customers who "cannot find a vehicle to purchase."
Other results from Ally's first-quarter earnings report Thursday include:
Total net revenue: $2.14 billion, up 10 percent from a year earlier
Net income: $655 million, down 18 percent from a year earlier
Net income attributable to common shareholders: $627 million, down 21 percent from a year earlier.