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Highlights from Ally Financial (ALLY) Fourth Quarter Earnings Report

Friday, January 21, 2022 10:43 AM | Kyle Depontes

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Highlights from Ally Financial (ALLY) Fourth Quarter Earnings Report

Ally Financial Inc. (ALLY) stock dropped over 3% today after the digital financial services company reported financial results for the fourth quarter and full year of 2021.

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

For the full year, the company posted EPS  of $8.22, up 186% from 2020. Total net revenue came in at $8.4 billion, up 25% year over year.

Auto Finance Growth

Speaking on the results, Ally CEO Jeffrey J. Brown, commented, "We generated the highest total revenue, PPNR and net income levels, added new product capabilities, and surpassed 10 million total customers across the wide array of Ally products."

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

The company also received a major boost from its auto finance sector, which recorded pre-tax income in the fourth quarter of $839 million - up $276 million versus the prior-year quarter.

Ally attributed the increase to higher net financing revenue, lower provision for credit losses and lower noninterest expense.

Investing in Employees

Ally's strong end to the year was also helped by its commitment to its employee base.

Brown added, “I’m equally proud of the actions we’ve taken in support of our customers, employees and communities during 2021."

"For our customers, we were the first in the industry to eliminate overdraft fees, while we increased minimum wage by 18% and expanded benefits for our employees."

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

The company's Board of Directors also approved a $0.30 per share common dividend for the first quarter of 2022, a 20% increase compared to the prior quarterly dividend and the 7th increase over the past seven years.

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