Ally Financial Reports $668 Million Net Income for 2024, Down from $957 Million in 2023

Ally Financial Inc. reported net income from continuing operations of $668 million for the year ended December 31, 2024, a decrease of $289 million compared to the $957 million reported in 2023. This decline stemmed primarily from higher interest expense ($7,472 million in 2024 versus $6,897 million in 2023) and a higher provision for credit losses ($2,166 million in 2024 versus $1,968 million in 2023). These increases were partially offset by higher total financing revenue and other interest income ($14,222 million in 2024 versus $13,958 million in 2023) and increased insurance premiums and service revenue earned ($1.4 billion in 2024 versus $1.3 billion in 2023). The company also noted a $118 million impairment of goodwill at Ally Credit Card during 2024.

Significant changes compared to 2023 included a decrease in total net revenue ($8,181 million in 2024 versus $8,234 million in 2023) and a substantial decrease in income from continuing operations before income tax expense ($836 million in 2024 versus $1,103 million in 2023). The company attributed these changes to higher interest expense and provision for credit losses, partially offset by higher total financing revenue and insurance premiums. Ally Financial also announced strategic actions to refine its focus on core businesses with durable revenue streams, including a definitive agreement to divest its credit card business and the completed sale of Ally Lending during the first quarter of 2024.

Operational developments included a decrease in employee headcount from 11,100 at the end of 2023 to 10,700 at the end of 2024, primarily due to operational and workforce alignment efforts. Ally Bank, the company's all-digital bank, reported total assets of $181.4 billion and total nonaffiliate deposits of $151.6 billion as of December 31, 2024. The company also reported 3.3 million primary deposit customers and 6.3 million retail bank accounts at the end of 2024, compared to 3.0 million and 6.0 million, respectively, at the end of 2023. Ally Invest, the company's digital brokerage and advisory offering, saw a 2% increase in total funded accounts and a 25% increase in average customer trades per day from the fourth quarter of 2023.

Ally Financial's automotive finance operations generated $5.8 billion in total net revenue in 2024, while its insurance operations generated $1.6 billion. Corporate Finance operations generated $579 million in total net revenue. The company's 2024 capital plan was reviewed and approved by the Federal Reserve Board, and the company's capital ratios remained in compliance with regulatory requirements. Ally Bank maintained its "well-capitalized" status under the Prompt Corrective Action framework.

Looking ahead, Ally Financial expects to close the sale of its credit card business and cease consumer mortgage originations during the second quarter of 2025. The company's long-term strategic objectives center around investing in its market-leading franchises, maintaining its brand, advancing technology, and delivering long-term value to shareholders. The company acknowledges numerous risks and uncertainties, including those related to regulation, economic conditions, competition, and cybersecurity, which could materially affect its future performance.