Ally Financial auto loan income, originations grow in Q4

Ally Financial's pretax auto finance income rose to $839 million during the fourth quarter, a 49 percent increase from a year earlier, as the key company segment grew revenue and recorded lower expenses and a lower loss provision.

Pretax auto finance income for the year more than doubled to $3.4 billion, a gain Ally attributed to a lower loss provision and higher net financing revenue.

Though the company's retail auto origination yield fell to 6.97 percent during the fourth quarter, Ally still posted a 7.1 percent yield for all of 2021, its fourth-straight year above 7 percent.

Consumer auto finance originations increased 20 percent to $10.9 billion during the quarter, Ally said. For the year, Ally recorded $46.3 billion in originations, up 32 percent, and saw a record 13 million applications.

Overall, Ally Financial's net income fell $35 million, or 5.1 percent, during the fourth quarter. The decline in part reflected a larger provision for credit losses after closing on its Fair Square Financial acquisition Dec. 1.

For the entire year, the company's net income rose to $3.1 billion, more than double 2020's result.

Ally shares were down 2.86 percent to $47.58 a little before 10 a.m. Friday.

Results from the company's earnings report Friday include:

Q4 net revenue: $2.2 billion, up 11 percent from a year earlier.

Q4 net income: $652 million, down 5.1 percent from a year earlier.

Q4 net income attributable to common shareholders: $624 million, down 9.2 percent from a year earlier.

2021 net revenue: $8.2 billion, up 23 percent from a year earlier.

2021 net income: $3.1 billion, up 182 percent from a year earlier.

2021 net income attributable to common shareholders: $3 billion, up 177 percent from a year earlier.