Ally earnings increased in the third quarter of 2026, with adjusted earnings per share rising 16% year over year to $1.34. In its October 20 results announcement, the financial services company also disclosed approval of a fourth-quarter common dividend of $0.35 per share, up from the $0.30 paid during the third quarter.
Key Takeaways
- Adjusted net revenue rose 9% to $2.346 billion, while GAAP earnings per share increased 10% to $1.30.
- The approved fourth-quarter dividend is $0.05 per share higher; Ally also repurchased $178 million of shares during Q3.
- Auto originations grew 10%, but higher credit provisions contributed to a decline in the segment’s pre-tax profit.
Table of Contents
- Ally earnings improve on higher financing revenue
- Higher dividend follows quarterly share repurchases
- Auto lending expands, but segment profit falls
- Conclusion
Ally earnings improve on higher financing revenue
Ally’s third-quarter 2026 earnings release showed net income attributable to common shareholders of $401 million, compared with $371 million a year earlier. Adjusted EPS increased from $1.15 to $1.34, outpacing the growth in GAAP EPS.
Net financing revenue rose by $164 million year over year to approximately $1.7 billion. Noninterest expenses declined by $4 million, while the provision for credit losses increased by $114 million to $529 million.
Ally attributed the higher provision primarily to reserves associated with asset growth. Its adjusted earnings and revenue figures are non-GAAP measures that supplement, rather than replace, reported results.
| Item | Details |
|---|---|
| GAAP total net revenue | $2.332 billion in Q3 2026, up 8% year over year |
| Net interest margin | 3.62%, up 11 basis points year over year |
| Common equity tier 1 capital ratio | 10.2%, up 10 basis points year over year |
| Retail deposits | $141.9 billion, down $1.6 billion from the preceding quarter |
| Corporate Finance loan portfolio | $15.8 billion held for investment; 100% first lien |
Higher dividend follows quarterly share repurchases
The board approved a $0.35-per-share common dividend for the fourth quarter of 2026. That represents an increase of approximately 16.7% from the $0.30 quarterly dividend paid in the third quarter.
The distinction matters for shareholders: the higher amount applies to the approved fourth-quarter distribution, not the dividend already paid during Q3. Alongside the dividend, Ally returned capital through $178 million of share repurchases completed during the quarter.
Auto lending expands, but segment profit falls
Consumer auto originations reached $12.9 billion, up 10% year over year, as applications increased 20% to a record 4.8 million. Ally said 44% of originations were in its highest credit-quality tier.
Higher lending volumes did not translate into higher auto-finance profit. Segment pre-tax income fell by $84 million to $337 million, primarily reflecting higher provision expense associated with asset growth and higher noninterest expenses, partly offset by revenue growth.
Retail auto net charge-offs were 1.89%, up one basis point from a year earlier. Loans at least 30 days past due, including non-accrual loans, rose six basis points to 4.96%. These measures provide a credit-quality counterpoint to the increase in originations.
Corporate Finance delivered a different profit trend: pre-tax income increased by $3 million to $98 million, and quarterly return on equity reached 22%.
Conclusion
The next confirmed shareholder distribution is the approved $0.35-per-share fourth-quarter dividend. Ally’s results pair stronger overall earnings with lower auto-finance profit, leaving credit costs an important measure alongside lending growth in subsequent results.
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