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ALLY Gains on Q3 Earnings Beat, Y/Y Revenue Growth & Provision Dip

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Key Takeaways

  • Ally Financial's adjusted EPS of $1.15 beat estimates, driving a 3.6% stock gain post results.
  • ALLY's revenues rose 1.5% y/y, exceeding estimates, supported by higher net finance revenues.
  • Loans and deposits rose slightly from the previous quarter, reflecting steady consumer activity.
Shares of Ally Financial (ALLY - Free Report) gained 3.6% following the release of its better-than-expected third-quarter 2025 results. Adjusted earnings of $1.15 per share surpassed the Zacks Consensus Estimate of 99 cents. Further, the bottom line reflected a significant jump from the year-ago quarter.
Results primarily benefited from a rise in net finance revenues and lower provisions. Also, a marginal rally in loan balances supported the results to some extent. However, a decline in other revenues and higher non-interest expenses were the undermining factors.
After considering non-recurring items, net income attributable to common shareholders (GAAP basis) was $371 million compared with $171 million in the prior-year quarter.
Ally Financial’s Revenues Improve, Expenses Rise
Total quarterly GAAP net revenues were $2.17 billion, up 1.5% from the prior-year quarter. Also, the top line surpassed the Zacks Consensus Estimate of $2.09 billion. Adjusted total revenues were $2.16 billion, up 3.2% from the prior-year quarter.
Net financing revenues grew 4.2% from the prior-year quarter to $1.58 billion. The rise was primarily driven by lower interest expenses. The adjusted net interest margin was 3.55%, up 23 basis points. Our estimate for net financing revenues was $1.55 billion.
Total other revenues were $584 million, down 5% year over year. The decline was primarily due to a fall in net other gain on investments. We projected other revenues of $513.3 million.
Total non-interest expenses increased 1.2% year over year to $1.24 billion. Our estimate for expenses was $1.29 billion.
The adjusted efficiency ratio was 50%, down from 51.1% in the year-ago period. A fall in the efficiency ratio indicates an improvement in profitability.
ALLY’s Loans & Deposits Rise Marginally
As of Sept. 30, 2025, total net finance receivables and loans amounted to $131.1 billion, up marginally from the prior-quarter end. Our estimate for the metric was $131.9 billion.
Deposits also increased marginally on a sequential basis to $148.4 billion. We projected deposits of $149.3 billion.
Ally Financial’s Credit Quality Improves
Non-performing loans were $1.35 billion as of Sept. 20, 2025, down 9.2% year over year. Our estimate for the metric was $1.32 billion. In the reported quarter, Ally Financial recorded net charge-offs of $395 million, down 23.6% from the prior-year quarter. We had projected net charge-offs of $513.4 million.
Further, provision for loan losses were $415 million, down 35.7% year over year. The decline was attributable to an increase in the retail auto reserve rate in the prior-year period, lower retail auto net charge-offs and the sale of credit card. Our estimate for provisions was $332.6 million.
Capital Ratios of ALLY Improve
As of Sept. 30, 2025, the total capital ratio was 13.4%, up from 12.9% in the prior-year period. The tier 1 capital ratio was 11.6%, up from 11.2% as of Sept. 30, 2024.
Also, the common equity tier 1 (CET1) capital ratio increased to 10.1% from 9.8% in the prior-year period.
Our View on Ally Financial
ALLY’s business-restructuring initiatives, balance sheet repositioning efforts and rising demand for consumer loans, alongside relatively higher interest rates, will likely strengthen its financials. However, weak credit quality amid a tough operating backdrop remains a key near-term headwind.
Currently, Ally Financial carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Performance of Finance Stocks
KeyCorp’s (KEY - Free Report) third-quarter 2025 adjusted earnings per share from continuing operations of 41 cents surpassed the Zacks Consensus Estimate of 38 cents. The bottom line reflected a 36.7% jump from the prior-year quarter.
KEY’s results primarily benefited from higher net interest income (NII) and a substantial rise in non-interest income. The average loan balance increased sequentially, which was another positive. However, higher expenses and a rise in provisions were the undermining factors for KEY.
Citigroup Inc. (C - Free Report) reported third-quarter 2025 adjusted net income per share of $2.24, up 48.3% from the year-ago period. The metric also surpassed the Zacks Consensus Estimate by 17.3%.
Citigroup’s results benefited from increased NII and non-interest revenues, alongside lower provisions. The company also registered a year-over-year rally of 17% in investment banking revenues, reflecting growth in advisory and equity capital markets. However, increased expenses and a weak capital position were the undermining factors for Citigroup.
Shares of Ally Financial (ALLY - Free Report) gained 3.6% following the release of its better-than-expected third-quarter 2025 results. Adjusted earnings of $1.15 per share surpassed the Zacks Consensus Estimate of 99 cents. Further, the bottom line reflected a significant jump from the year-ago quarter.
Results primarily benefited from a rise in net finance revenues and lower provisions. Also, a marginal rally in loan balances supported the results to some extent. However, a decline in other revenues and higher non-interest expenses were the undermining factors.
After considering non-recurring items, net income attributable to common shareholders (GAAP basis) was $371 million compared with $171 million in the prior-year quarter.
Ally Financial’s Revenues Improve, Expenses Rise
Total quarterly GAAP net revenues were $2.17 billion, up 1.5% from the prior-year quarter. Also, the top line surpassed the Zacks Consensus Estimate of $2.09 billion. Adjusted total revenues were $2.16 billion, up 3.2% from the prior-year quarter.
Net financing revenues grew 4.2% from the prior-year quarter to $1.58 billion. The rise was primarily driven by lower interest expenses. The adjusted net interest margin was 3.55%, up 23 basis points. Our estimate for net financing revenues was $1.55 billion.
Total other revenues were $584 million, down 5% year over year. The decline was primarily due to a fall in net other gain on investments. We projected other revenues of $513.3 million.
Total non-interest expenses increased 1.2% year over year to $1.24 billion. Our estimate for expenses was $1.29 billion.
The adjusted efficiency ratio was 50%, down from 51.1% in the year-ago period. A fall in the efficiency ratio indicates an improvement in profitability.
ALLY’s Loans & Deposits Rise Marginally
As of Sept. 30, 2025, total net finance receivables and loans amounted to $131.1 billion, up marginally from the prior-quarter end. Our estimate for the metric was $131.9 billion.
Deposits also increased marginally on a sequential basis to $148.4 billion. We projected deposits of $149.3 billion.
Ally Financial’s Credit Quality Improves
Non-performing loans were $1.35 billion as of Sept. 20, 2025, down 9.2% year over year. Our estimate for the metric was $1.32 billion. In the reported quarter, Ally Financial recorded net charge-offs of $395 million, down 23.6% from the prior-year quarter. We had projected net charge-offs of $513.4 million.
Further, provision for loan losses were $415 million, down 35.7% year over year. The decline was attributable to an increase in the retail auto reserve rate in the prior-year period, lower retail auto net charge-offs and the sale of credit card. Our estimate for provisions was $332.6 million.
Capital Ratios of ALLY Improve
As of Sept. 30, 2025, the total capital ratio was 13.4%, up from 12.9% in the prior-year period. The tier 1 capital ratio was 11.6%, up from 11.2% as of Sept. 30, 2024.
Also, the common equity tier 1 (CET1) capital ratio increased to 10.1% from 9.8% in the prior-year period.
Our View on Ally Financial
ALLY’s business-restructuring initiatives, balance sheet repositioning efforts and rising demand for consumer loans, alongside relatively higher interest rates, will likely strengthen its financials. However, weak credit quality amid a tough operating backdrop remains a key near-term headwind.

Ally Financial Inc. Price, Consensus and EPS Surprise

Ally Financial Inc. Price, Consensus and EPS Surprise

Ally Financial Inc. price-consensus-eps-surprise-chart | Ally Financial Inc. Quote

Currently, Ally Financial carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Performance of Finance Stocks
KeyCorp’s (KEY - Free Report) third-quarter 2025 adjusted earnings per share from continuing operations of 41 cents surpassed the Zacks Consensus Estimate of 38 cents. The bottom line reflected a 36.7% jump from the prior-year quarter.
KEY’s results primarily benefited from higher net interest income (NII) and a substantial rise in non-interest income. The average loan balance increased sequentially, which was another positive. However, higher expenses and a rise in provisions were the undermining factors for KEY.
Citigroup Inc. (C - Free Report) reported third-quarter 2025 adjusted net income per share of $2.24, up 48.3% from the year-ago period. The metric also surpassed the Zacks Consensus Estimate by 17.3%.
Citigroup’s results benefited from increased NII and non-interest revenues, alongside lower provisions. The company also registered a year-over-year rally of 17% in investment banking revenues, reflecting growth in advisory and equity capital markets. However, increased expenses and a weak capital position were the undermining factors for Citigroup.
Shares of Ally Financial (ALLY - Free Report) gained 3.6% following the release of its better-than-expected third-quarter 2025 results. Adjusted earnings of $1.15 per share surpassed the Zacks Consensus Estimate of 99 cents. Further, the bottom line reflected a significant jump from the year-ago quarter.
Results primarily benefited from a rise in net finance revenues and lower provisions. Also, a marginal rally in loan balances supported the results to some extent. However, a decline in other revenues and higher non-interest expenses were the undermining factors.
After considering non-recurring items, net income attributable to common shareholders (GAAP basis) was $371 million compared with $171 million in the prior-year quarter.
Ally Financial’s Revenues Improve, Expenses Rise
Total quarterly GAAP net revenues were $2.17 billion, up 1.5% from the prior-year quarter. Also, the top line surpassed the Zacks Consensus Estimate of $2.09 billion. Adjusted total revenues were $2.16 billion, up 3.2% from the prior-year quarter.
Net financing revenues grew 4.2% from the prior-year quarter to $1.58 billion. The rise was primarily driven by lower interest expenses. The adjusted net interest margin was 3.55%, up 23 basis points. Our estimate for net financing revenues was $1.55 billion.
Total other revenues were $584 million, down 5% year over year. The decline was primarily due to a fall in net other gain on investments. We projected other revenues of $513.3 million.
Total non-interest expenses increased 1.2% year over year to $1.24 billion. Our estimate for expenses was $1.29 billion.
The adjusted efficiency ratio was 50%, down from 51.1% in the year-ago period. A fall in the efficiency ratio indicates an improvement in profitability.
ALLY’s Loans & Deposits Rise Marginally
As of Sept. 30, 2025, total net finance receivables and loans amounted to $131.1 billion, up marginally from the prior-quarter end. Our estimate for the metric was $131.9 billion.
Deposits also increased marginally on a sequential basis to $148.4 billion. We projected deposits of $149.3 billion.
Ally Financial’s Credit Quality Improves
Non-performing loans were $1.35 billion as of Sept. 20, 2025, down 9.2% year over year. Our estimate for the metric was $1.32 billion. In the reported quarter, Ally Financial recorded net charge-offs of $395 million, down 23.6% from the prior-year quarter. We had projected net charge-offs of $513.4 million.
Further, provision for loan losses were $415 million, down 35.7% year over year. The decline was attributable to an increase in the retail auto reserve rate in the prior-year period, lower retail auto net charge-offs and the sale of credit card. Our estimate for provisions was $332.6 million.
Capital Ratios of ALLY Improve
As of Sept. 30, 2025, the total capital ratio was 13.4%, up from 12.9% in the prior-year period. The tier 1 capital ratio was 11.6%, up from 11.2% as of Sept. 30, 2024.
Also, the common equity tier 1 (CET1) capital ratio increased to 10.1% from 9.8% in the prior-year period.
Our View on Ally Financial
ALLY’s business-restructuring initiatives, balance sheet repositioning efforts and rising demand for consumer loans, alongside relatively higher interest rates, will likely strengthen its financials. However, weak credit quality amid a tough operating backdrop remains a key near-term headwind.
Currently, Ally Financial carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Performance of Finance Stocks
KeyCorp’s (KEY - Free Report) third-quarter 2025 adjusted earnings per share from continuing operations of 41 cents surpassed the Zacks Consensus Estimate of 38 cents. The bottom line reflected a 36.7% jump from the prior-year quarter.
KEY’s results primarily benefited from higher net interest income (NII) and a substantial rise in non-interest income. The average loan balance increased sequentially, which was another positive. However, higher expenses and a rise in provisions were the undermining factors for KEY.
Citigroup Inc. (C - Free Report) reported third-quarter 2025 adjusted net income per share of $2.24, up 48.3% from the year-ago period. The metric also surpassed the Zacks Consensus Estimate by 17.3%.
Citigroup’s results benefited from increased NII and non-interest revenues, alongside lower provisions. The company also registered a year-over-year rally of 17% in investment banking revenues, reflecting growth in advisory and equity capital markets. However, increased expenses and a weak capital position were the undermining factors for Citigroup.
Shares of Ally Financial (ALLY - Free Report) gained 3.6% following the release of its better-than-expected third-quarter 2025 results. Adjusted earnings of $1.15 per share surpassed the Zacks Consensus Estimate of 99 cents. Further, the bottom line reflected a significant jump from the year-ago quarter.
Results primarily benefited from a rise in net finance revenues and lower provisions. Also, a marginal rally in loan balances supported the results to some extent. However, a decline in other revenues and higher non-interest expenses were the undermining factors.
After considering non-recurring items, net income attributable to common shareholders (GAAP basis) was $371 million compared with $171 million in the prior-year quarter.
Ally Financial’s Revenues Improve, Expenses Rise
Total quarterly GAAP net revenues were $2.17 billion, up 1.5% from the prior-year quarter. Also, the top line surpassed the Zacks Consensus Estimate of $2.09 billion. Adjusted total revenues were $2.16 billion, up 3.2% from the prior-year quarter.
Net financing revenues grew 4.2% from the prior-year quarter to $1.58 billion. The rise was primarily driven by lower interest expenses. The adjusted net interest margin was 3.55%, up 23 basis points. Our estimate for net financing revenues was $1.55 billion.
Total other revenues were $584 million, down 5% year over year. The decline was primarily due to a fall in net other gain on investments. We projected other revenues of $513.3 million.
Total non-interest expenses increased 1.2% year over year to $1.24 billion. Our estimate for expenses was $1.29 billion.
The adjusted efficiency ratio was 50%, down from 51.1% in the year-ago period. A fall in the efficiency ratio indicates an improvement in profitability.
ALLY’s Loans & Deposits Rise Marginally
As of Sept. 30, 2025, total net finance receivables and loans amounted to $131.1 billion, up marginally from the prior-quarter end. Our estimate for the metric was $131.9 billion.
Deposits also increased marginally on a sequential basis to $148.4 billion. We projected deposits of $149.3 billion.
Ally Financial’s Credit Quality Improves
Non-performing loans were $1.35 billion as of Sept. 20, 2025, down 9.2% year over year. Our estimate for the metric was $1.32 billion. In the reported quarter, Ally Financial recorded net charge-offs of $395 million, down 23.6% from the prior-year quarter. We had projected net charge-offs of $513.4 million.
Further, provision for loan losses were $415 million, down 35.7% year over year. The decline was attributable to an increase in the retail auto reserve rate in the prior-year period, lower retail auto net charge-offs and the sale of credit card. Our estimate for provisions was $332.6 million.
Capital Ratios of ALLY Improve
As of Sept. 30, 2025, the total capital ratio was 13.4%, up from 12.9% in the prior-year period. The tier 1 capital ratio was 11.6%, up from 11.2% as of Sept. 30, 2024.
Also, the common equity tier 1 (CET1) capital ratio increased to 10.1% from 9.8% in the prior-year period.
Our View on Ally Financial
ALLY’s business-restructuring initiatives, balance sheet repositioning efforts and rising demand for consumer loans, alongside relatively higher interest rates, will likely strengthen its financials. However, weak credit quality amid a tough operating backdrop remains a key near-term headwind.
Currently, Ally Financial carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Performance of Finance Stocks
KeyCorp’s (KEY - Free Report) third-quarter 2025 adjusted earnings per share from continuing operations of 41 cents surpassed the Zacks Consensus Estimate of 38 cents. The bottom line reflected a 36.7% jump from the prior-year quarter.
KEY’s results primarily benefited from higher net interest income (NII) and a substantial rise in non-interest income. The average loan balance increased sequentially, which was another positive. However, higher expenses and a rise in provisions were the undermining factors for KEY.
Citigroup Inc. (C - Free Report) reported third-quarter 2025 adjusted net income per share of $2.24, up 48.3% from the year-ago period. The metric also surpassed the Zacks Consensus Estimate by 17.3%.
Citigroup’s results benefited from increased NII and non-interest revenues, alongside lower provisions. The company also registered a year-over-year rally of 17% in investment banking revenues, reflecting growth in advisory and equity capital markets. However, increased expenses and a weak capital position were the undermining factors for Citigroup.
Shares of Ally Financial (ALLY - Free Report) gained 3.6% following the release of its better-than-expected third-quarter 2025 results. Adjusted earnings of $1.15 per share surpassed the Zacks Consensus Estimate of 99 cents. Further, the bottom line reflected a significant jump from the year-ago quarter.
Results primarily benefited from a rise in net finance revenues and lower provisions. Also, a marginal rally in loan balances supported the results to some extent. However, a decline in other revenues and higher non-interest expenses were the undermining factors.
After considering non-recurring items, net income attributable to common shareholders (GAAP basis) was $371 million compared with $171 million in the prior-year quarter.
Ally Financial’s Revenues Improve, Expenses Rise
Total quarterly GAAP net revenues were $2.17 billion, up 1.5% from the prior-year quarter. Also, the top line surpassed the Zacks Consensus Estimate of $2.09 billion. Adjusted total revenues were $2.16 billion, up 3.2% from the prior-year quarter.
Net financing revenues grew 4.2% from the prior-year quarter to $1.58 billion. The rise was primarily driven by lower interest expenses. The adjusted net interest margin was 3.55%, up 23 basis points. Our estimate for net financing revenues was $1.55 billion.
Total other revenues were $584 million, down 5% year over year. The decline was primarily due to a fall in net other gain on investments. We projected other revenues of $513.3 million.
Total non-interest expenses increased 1.2% year over year to $1.24 billion. Our estimate for expenses was $1.29 billion.
The adjusted efficiency ratio was 50%, down from 51.1% in the year-ago period. A fall in the efficiency ratio indicates an improvement in profitability.
ALLY’s Loans & Deposits Rise Marginally
As of Sept. 30, 2025, total net finance receivables and loans amounted to $131.1 billion, up marginally from the prior-quarter end. Our estimate for the metric was $131.9 billion.
Deposits also increased marginally on a sequential basis to $148.4 billion. We projected deposits of $149.3 billion.
Ally Financial’s Credit Quality Improves
Non-performing loans were $1.35 billion as of Sept. 20, 2025, down 9.2% year over year. Our estimate for the metric was $1.32 billion. In the reported quarter, Ally Financial recorded net charge-offs of $395 million, down 23.6% from the prior-year quarter. We had projected net charge-offs of $513.4 million.
Further, provision for loan losses were $415 million, down 35.7% year over year. The decline was attributable to an increase in the retail auto reserve rate in the prior-year period, lower retail auto net charge-offs and the sale of credit card. Our estimate for provisions was $332.6 million.
Capital Ratios of ALLY Improve
As of Sept. 30, 2025, the total capital ratio was 13.4%, up from 12.9% in the prior-year period. The tier 1 capital ratio was 11.6%, up from 11.2% as of Sept. 30, 2024.
Also, the common equity tier 1 (CET1) capital ratio increased to 10.1% from 9.8% in the prior-year period.
Our View on Ally Financial
ALLY’s business-restructuring initiatives, balance sheet repositioning efforts and rising demand for consumer loans, alongside relatively higher interest rates, will likely strengthen its financials. However, weak credit quality amid a tough operating backdrop remains a key near-term headwind.
Currently, Ally Financial carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Performance of Finance Stocks
KeyCorp’s (KEY - Free Report) third-quarter 2025 adjusted earnings per share from continuing operations of 41 cents surpassed the Zacks Consensus Estimate of 38 cents. The bottom line reflected a 36.7% jump from the prior-year quarter.
KEY’s results primarily benefited from higher net interest income (NII) and a substantial rise in non-interest income. The average loan balance increased sequentially, which was another positive. However, higher expenses and a rise in provisions were the undermining factors for KEY.
Citigroup Inc. (C - Free Report) reported third-quarter 2025 adjusted net income per share of $2.24, up 48.3% from the year-ago period. The metric also surpassed the Zacks Consensus Estimate by 17.3%.
Citigroup’s results benefited from increased NII and non-interest revenues, alongside lower provisions. The company also registered a year-over-year rally of 17% in investment banking revenues, reflecting growth in advisory and equity capital markets. However, increased expenses and a weak capital position were the undermining factors for Citigroup.
Shares of Ally Financial (ALLY - Free Report) gained 3.6% following the release of its better-than-expected third-quarter 2025 results. Adjusted earnings of $1.15 per share surpassed the Zacks Consensus Estimate of 99 cents. Further, the bottom line reflected a significant jump from the year-ago quarter.
Results primarily benefited from a rise in net finance revenues and lower provisions. Also, a marginal rally in loan balances supported the results to some extent. However, a decline in other revenues and higher non-interest expenses were the undermining factors.
After considering non-recurring items, net income attributable to common shareholders (GAAP basis) was $371 million compared with $171 million in the prior-year quarter.
Ally Financial’s Revenues Improve, Expenses Rise
Total quarterly GAAP net revenues were $2.17 billion, up 1.5% from the prior-year quarter. Also, the top line surpassed the Zacks Consensus Estimate of $2.09 billion. Adjusted total revenues were $2.16 billion, up 3.2% from the prior-year quarter.
Net financing revenues grew 4.2% from the prior-year quarter to $1.58 billion. The rise was primarily driven by lower interest expenses. The adjusted net interest margin was 3.55%, up 23 basis points. Our estimate for net financing revenues was $1.55 billion.
Total other revenues were $584 million, down 5% year over year. The decline was primarily due to a fall in net other gain on investments. We projected other revenues of $513.3 million.
Total non-interest expenses increased 1.2% year over year to $1.24 billion. Our estimate for expenses was $1.29 billion.
The adjusted efficiency ratio was 50%, down from 51.1% in the year-ago period. A fall in the efficiency ratio indicates an improvement in profitability.
ALLY’s Loans & Deposits Rise Marginally
As of Sept. 30, 2025, total net finance receivables and loans amounted to $131.1 billion, up marginally from the prior-quarter end. Our estimate for the metric was $131.9 billion.
Deposits also increased marginally on a sequential basis to $148.4 billion. We projected deposits of $149.3 billion.
Ally Financial’s Credit Quality Improves
Non-performing loans were $1.35 billion as of Sept. 20, 2025, down 9.2% year over year. Our estimate for the metric was $1.32 billion. In the reported quarter, Ally Financial recorded net charge-offs of $395 million, down 23.6% from the prior-year quarter. We had projected net charge-offs of $513.4 million.
Further, provision for loan losses were $415 million, down 35.7% year over year. The decline was attributable to an increase in the retail auto reserve rate in the prior-year period, lower retail auto net charge-offs and the sale of credit card. Our estimate for provisions was $332.6 million.
Capital Ratios of ALLY Improve
As of Sept. 30, 2025, the total capital ratio was 13.4%, up from 12.9% in the prior-year period. The tier 1 capital ratio was 11.6%, up from 11.2% as of Sept. 30, 2024.
Also, the common equity tier 1 (CET1) capital ratio increased to 10.1% from 9.8% in the prior-year period.
Our View on Ally Financial
ALLY’s business-restructuring initiatives, balance sheet repositioning efforts and rising demand for consumer loans, alongside relatively higher interest rates, will likely strengthen its financials. However, weak credit quality amid a tough operating backdrop remains a key near-term headwind.
Currently, Ally Financial carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Performance of Finance Stocks
KeyCorp’s (KEY - Free Report) third-quarter 2025 adjusted earnings per share from continuing operations of 41 cents surpassed the Zacks Consensus Estimate of 38 cents. The bottom line reflected a 36.7% jump from the prior-year quarter.
KEY’s results primarily benefited from higher net interest income (NII) and a substantial rise in non-interest income. The average loan balance increased sequentially, which was another positive. However, higher expenses and a rise in provisions were the undermining factors for KEY.
Citigroup Inc. (C - Free Report) reported third-quarter 2025 adjusted net income per share of $2.24, up 48.3% from the year-ago period. The metric also surpassed the Zacks Consensus Estimate by 17.3%.
Citigroup’s results benefited from increased NII and non-interest revenues, alongside lower provisions. The company also registered a year-over-year rally of 17% in investment banking revenues, reflecting growth in advisory and equity capital markets. However, increased expenses and a weak capital position were the undermining factors for Citigroup.
Shares of Ally Financial (ALLY - Free Report) gained 3.6% following the release of its better-than-expected third-quarter 2025 results. Adjusted earnings of $1.15 per share surpassed the Zacks Consensus Estimate of 99 cents. Further, the bottom line reflected a significant jump from the year-ago quarter.
Results primarily benefited from a rise in net finance revenues and lower provisions. Also, a marginal rally in loan balances supported the results to some extent. However, a decline in other revenues and higher non-interest expenses were the undermining factors.
After considering non-recurring items, net income attributable to common shareholders (GAAP basis) was $371 million compared with $171 million in the prior-year quarter.

Shares of Ally Financial (ALLY - Free Report) gained 3.6% following the release of its better-than-expected third-quarter 2025 results. Adjusted earnings of $1.15 per share surpassed the Zacks Consensus Estimate of 99 cents. Further, the bottom line reflected a significant jump from the year-ago quarter.

Results primarily benefited from a rise in net finance revenues and lower provisions. Also, a marginal rally in loan balances supported the results to some extent. However, a decline in other revenues and higher non-interest expenses were the undermining factors.

After considering non-recurring items, net income attributable to common shareholders (GAAP basis) was $371 million compared with $171 million in the prior-year quarter.

Ally Financial’s Revenues Improve, Expenses Rise

Total quarterly GAAP net revenues were $2.17 billion, up 1.5% from the prior-year quarter. Also, the top line surpassed the Zacks Consensus Estimate of $2.09 billion. Adjusted total revenues were $2.16 billion, up 3.2% from the prior-year quarter.

Net financing revenues grew 4.2% from the prior-year quarter to $1.58 billion. The rise was primarily driven by lower interest expenses. The adjusted net interest margin was 3.55%, up 23 basis points. Our estimate for net financing revenues was $1.55 billion.

Total other revenues were $584 million, down 5% year over year. The decline was primarily due to a fall in net other gain on investments. We projected other revenues of $513.3 million.

Total non-interest expenses increased 1.2% year over year to $1.24 billion. Our estimate for expenses was $1.29 billion.

The adjusted efficiency ratio was 50%, down from 51.1% in the year-ago period. A fall in the efficiency ratio indicates an improvement in profitability.

ALLY’s Loans & Deposits Rise Marginally

As of Sept. 30, 2025, total net finance receivables and loans amounted to $131.1 billion, up marginally from the prior-quarter end. Our estimate for the metric was $131.9 billion.

Deposits also increased marginally on a sequential basis to $148.4 billion. We projected deposits of $149.3 billion.

Ally Financial’s Credit Quality Improves

Non-performing loans were $1.35 billion as of Sept. 20, 2025, down 9.2% year over year. Our estimate for the metric was $1.32 billion. In the reported quarter, Ally Financial recorded net charge-offs of $395 million, down 23.6% from the prior-year quarter. We had projected net charge-offs of $513.4 million.

Further, provision for loan losses were $415 million, down 35.7% year over year. The decline was attributable to an increase in the retail auto reserve rate in the prior-year period, lower retail auto net charge-offs and the sale of credit card. Our estimate for provisions was $332.6 million.

Capital Ratios of ALLY Improve

As of Sept. 30, 2025, the total capital ratio was 13.4%, up from 12.9% in the prior-year period. The tier 1 capital ratio was 11.6%, up from 11.2% as of Sept. 30, 2024.

Also, the common equity tier 1 (CET1) capital ratio increased to 10.1% from 9.8% in the prior-year period.

Our View on Ally Financial

ALLY’s business-restructuring initiatives, balance sheet repositioning efforts and rising demand for consumer loans, alongside relatively higher interest rates, will likely strengthen its financials. However, weak credit quality amid a tough operating backdrop remains a key near-term headwind.

Currently, Ally Financial carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Performance of Finance Stocks

KeyCorp’s (KEY - Free Report) third-quarter 2025 adjusted earnings per share from continuing operations of 41 cents surpassed the Zacks Consensus Estimate of 38 cents. The bottom line reflected a 36.7% jump from the prior-year quarter.

KEY’s results primarily benefited from higher net interest income (NII) and a substantial rise in non-interest income. The average loan balance increased sequentially, which was another positive. However, higher expenses and a rise in provisions were the undermining factors for KEY.

Citigroup Inc. (C - Free Report) reported third-quarter 2025 adjusted net income per share of $2.24, up 48.3% from the year-ago period. The metric also surpassed the Zacks Consensus Estimate by 17.3%.

Citigroup’s results benefited from increased NII and non-interest revenues, alongside lower provisions. The company also registered a year-over-year rally of 17% in investment banking revenues, reflecting growth in advisory and equity capital markets. However, increased expenses and a weak capital position were the undermining factors for Citigroup.

Shares of Ally Financial (ALLY - Free Report) gained 3.6% following the release of its better-than-expected third-quarter 2025 results. Adjusted earnings of $1.15 per share surpassed the Zacks Consensus Estimate of 99 cents. Further, the bottom line reflected a significant jump from the year-ago quarter.
Results primarily benefited from a rise in net finance revenues and lower provisions. Also, a marginal rally in loan balances supported the results to some extent. However, a decline in other revenues and higher non-interest expenses were the undermining factors.
After considering non-recurring items, net income attributable to common shareholders (GAAP basis) was $371 million compared with $171 million in the prior-year quarter.
Ally Financial’s Revenues Improve, Expenses Rise
Total quarterly GAAP net revenues were $2.17 billion, up 1.5% from the prior-year quarter. Also, the top line surpassed the Zacks Consensus Estimate of $2.09 billion. Adjusted total revenues were $2.16 billion, up 3.2% from the prior-year quarter.
Net financing revenues grew 4.2% from the prior-year quarter to $1.58 billion. The rise was primarily driven by lower interest expenses. The adjusted net interest margin was 3.55%, up 23 basis points. Our estimate for net financing revenues was $1.55 billion.
Total other revenues were $584 million, down 5% year over year. The decline was primarily due to a fall in net other gain on investments. We projected other revenues of $513.3 million.
Total non-interest expenses increased 1.2% year over year to $1.24 billion. Our estimate for expenses was $1.29 billion.
The adjusted efficiency ratio was 50%, down from 51.1% in the year-ago period. A fall in the efficiency ratio indicates an improvement in profitability.
ALLY’s Loans & Deposits Rise Marginally
As of Sept. 30, 2025, total net finance receivables and loans amounted to $131.1 billion, up marginally from the prior-quarter end. Our estimate for the metric was $131.9 billion.
Deposits also increased marginally on a sequential basis to $148.4 billion. We projected deposits of $149.3 billion.
Ally Financial’s Credit Quality Improves
Non-performing loans were $1.35 billion as of Sept. 20, 2025, down 9.2% year over year. Our estimate for the metric was $1.32 billion. In the reported quarter, Ally Financial recorded net charge-offs of $395 million, down 23.6% from the prior-year quarter. We had projected net charge-offs of $513.4 million.
Further, provision for loan losses were $415 million, down 35.7% year over year. The decline was attributable to an increase in the retail auto reserve rate in the prior-year period, lower retail auto net charge-offs and the sale of credit card. Our estimate for provisions was $332.6 million.
Capital Ratios of ALLY Improve
As of Sept. 30, 2025, the total capital ratio was 13.4%, up from 12.9% in the prior-year period. The tier 1 capital ratio was 11.6%, up from 11.2% as of Sept. 30, 2024.
Also, the common equity tier 1 (CET1) capital ratio increased to 10.1% from 9.8% in the prior-year period.
Our View on Ally Financial
ALLY’s business-restructuring initiatives, balance sheet repositioning efforts and rising demand for consumer loans, alongside relatively higher interest rates, will likely strengthen its financials. However, weak credit quality amid a tough operating backdrop remains a key near-term headwind.
Currently, Ally Financial carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Performance of Finance Stocks
KeyCorp’s (KEY - Free Report) third-quarter 2025 adjusted earnings per share from continuing operations of 41 cents surpassed the Zacks Consensus Estimate of 38 cents. The bottom line reflected a 36.7% jump from the prior-year quarter.
KEY’s results primarily benefited from higher net interest income (NII) and a substantial rise in non-interest income. The average loan balance increased sequentially, which was another positive. However, higher expenses and a rise in provisions were the undermining factors for KEY.
Citigroup Inc. (C - Free Report) reported third-quarter 2025 adjusted net income per share of $2.24, up 48.3% from the year-ago period. The metric also surpassed the Zacks Consensus Estimate by 17.3%.
Citigroup’s results benefited from increased NII and non-interest revenues, alongside lower provisions. The company also registered a year-over-year rally of 17% in investment banking revenues, reflecting growth in advisory and equity capital markets. However, increased expenses and a weak capital position were the undermining factors for Citigroup.

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