Ally Financial Inc. Reports Consolidated Earnings Results for the Fourth Quarter and Full Year Ended December 31, 2017
January 30, 2018 at 07:44 am EST
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Ally Financial Inc. reported consolidated earnings results for the fourth quarter and full year ended December 31, 2017. For the quarter, the company’s net income decreased $67 million against the prior year quarter to $181 million primarily due to a revaluation of Ally’s net DTA associated with tax reform. Pre-tax Income from continuing operations were $410 million against of $380 million a year ago. Net income attributable to common shareholders were $181 million against of 248 million a year ago. Adjusted EPS was $0.70 compared to $0.54 a year ago. Return on equity was 5.3% against of 7.4% a year ago. GAAP EPS (diluted) was $0.41 against of $0.52 a year ago. Core net Income attributable to common shareholders was $310 million compared to $256 million a year ago. Core return on tangible common equity was 10.8% against of 9.4% a year ago. Adjusted tangible book value per share was $28.1 compared to $26.2 a year ago. Book value per share was $30.9 against of $28.5 a year ago. Return on average assets was 0.4% against of 0.6% a year ago. Return on average tangible common equity was 5.5% against of 7.5% a year ago. Total net revenue was $1,473 million compared to $1,368 million a year ago.
For the full year, the company’s net income attributable to common shareholders was $929 million, compared to $1,037 million in the prior year. Pre-tax income from continuing operations were $1,507 million compared to $1,581 million a year ago. GAAP EPS (diluted) was $2.04 compared to $2.15 a year ago. Adjusted EPS was $2.39 compared to $2.16 a year ago. Return on equity was 6.9% against of 8.0% a year ago. Core Net income attributable to common shareholders was $1,091 million compared to $1,043 million a year ago. Core return on tangible common equity was 9.8% against of 10.0% a year ago. Return on average assets was 0.6% against of 0.7% a year ago. Return on average tangible common equity was 7.1% against of 8.1% year ago. Total net revenue was $5,765 million compared to $5,437 million a year ago.
Ally Financial Inc. is a financial services company. The Company's segments include Automotive Finance operations, Insurance operations, Mortgage Finance operations, and Corporate Finance operations. The Automotive Finance operations segment is engaged in providing services, such as retail installment sales contracts, loans and operating leases, offering term loans to dealers, financing dealer floorplans and other lines of credit to dealers, and other services. Insurance operations is a complementary automotive-focused business offering both consumer finance protection and insurance products sold primarily through the automotive dealer channel, and commercial insurance products sold directly to dealers. The Mortgage Finance operations segment includes its direct-to-consumer Ally Home mortgage offering and bulk purchases of jumbo and LMI mortgage loans originated by third parties. The Corporate Finance operations segment provides senior secured asset-based and leveraged cash flow loans.