Ally Reports Q3 Earnings, Raises Dividend 17%

Ally Financial reported third-quarter adjusted earnings of $1.34 per share and revenue of about $2.33 billion, slightly exceeding several analysts’ estimates, with revenue up roughly 8% year over year. Net interest margin improved to 3.66% and consumer auto originations rose to $12.9 billion, while the provision for credit losses increased to $529 million; the net charge-off rate fell to 1.17% and 60-day-plus retail auto delinquencies declined to 2.49%. Ally lowered the upper end of its full-year outlook for net interest margin and other revenue growth, while expense control supported the earnings beat. Shares rose in premarket trading, and the company approved a 17% increase in its quarterly dividend to 35 cents per share.