Ally Financial reported second-quarter adjusted earnings per share of $1.21, a 22% increase year over year, driven by margin expansion and asset growth. Core return on tangible common equity reached 11.8%, up 80 basis points, while adjusted total net revenue rose 10% to $2.3 billion. Net interest margin excluding original issue discount improved 11 basis points sequentially to 3.63%, supported by lower funding costs and disciplined deposit pricing. Consumer auto originations surged 21% to $13.3 billion on record application volume of 4.6 million, and retail auto net charge-offs fell 18 basis points to 157 basis points, marking the sixth straight quarter of year-over-year improvement. The company raised its full-year average earning assets growth guidance to 3% to 5% from 2% to 4% and tightened its consolidated net charge-off outlook to 1.2% to 1.3%. Ally also executed $148 million in share repurchases during the quarter and issued $1 billion of preferred stock at 7.1% to support the redemption of its Series B preferred stock.
Ally Financial IncAdjusted EPS up 22%, revenue up 10%, raised guidance, share buybacks and preferred issuance.