Ally Financial Inc. reported its financial results for the third quarter and the first nine months of 2024, highlighting a mixed performance in revenue and profitability compared to the previous fiscal period. For the three months ended September 30, 2024, total net revenue increased to $2,103 million, a 7% rise from $1,968 million in Q3 2023. However, for the nine months ended September 30, 2024, total net revenue decreased slightly to $6,089 million from $6,147 million in the same period last year.
Financing revenue and other interest income for Q3 2024 was $3,574 million, down from $3,595 million in Q3 2023. In contrast, for the nine-month period, financing revenue rose to $10,694 million from $10,335 million. Total interest expense increased to $1,885 million for Q3 2024, compared to $1,850 million in Q3 2023, and for the nine months, it rose to $5,673 million from $4,989 million.
Net income from continuing operations for Q3 2024 was $357 million, a 21% increase from $296 million in Q3 2023. However, for the nine months, net income decreased to $808 million from $944 million in the previous year. Basic earnings per share for Q3 2024 were $1.07, up from $0.88 in Q3 2023, while for the nine months, it fell to $2.37 from $2.84.
Ally's total assets as of September 30, 2024, were $192,981 million, a decrease from $196,392 million at the end of 2023. Total equity increased to $14,725 million from $13,766 million, reflecting a stronger capital position. The company’s allowance for loan losses rose to $3,700 million, up from $3,572 million in the previous quarter, indicating a cautious approach amid rising credit risks.
Strategically, Ally Financial completed the sale of Ally Lending on March 1, 2024, which contributed to a net pretax loss of $8 million during the nine months ended September 30, 2024. The company also reported a significant increase in insurance revenue, which rose to $468 million in Q3 2024 from $322 million in Q3 2023, driven by higher premiums and service revenue.
Ally's automotive finance operations saw a decline in revenue, with Q3 2024 revenue at $1,370 million, down from $1,439 million in Q3 2023. The company attributed the decrease in originations to dynamic underwriting strategies and competitive pressures. In contrast, the insurance segment showed robust growth, reflecting the company's diversified service offerings.
Overall, Ally Financial Inc. continues to navigate a challenging economic environment while focusing on maintaining a strong capital base and adapting its strategies to market conditions.
About Ally Financial Inc.
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