Mexican Media Brands
Ally’s Earning Drop as Leases and Loans Shrink
Auto retail lending giant Ally Financial Inc. says its net income fell 6% to $248 million in October-December because of higher expenses and a greater provision for lending losses.
#economics
Share
Auto retail lending giant Ally Financial Inc. says its net income fell 6% to $248 million in October-December because of higher expenses and a greater provision for lending losses. Pretax income from continuing operations dropped 12% to $380 million.
Reported net financing revenue for the period slipped 2% to $976 million. Declining used-car values and a shrinking lineup of leasable vehicles ate into financing operations, according to the company.
Ally says used-car deals accounted for 41% of all originations, up four points. The number of lease contracts shrank three points to 8%.
The company wrote $8.2 billion in new leases and loans in the quarter, down 12% from the same period in 2015. General Motors and Fiat Chrysler Automobiles contributed 37% and 27%, respectively, of originations.
For the full year, Ally’s reported net revenue from financing climbed 5% to $3.9 billion. Net income dropped 17% to $1.1 billion compared with 2015, when results were elevated by a one-time gain for the sale of the company’s stake in a Chinese joint venture.
RELATED CONTENT
-
Global Car Market to Shrink for 2-3 Years
Global sales of light vehicles will decline year on year through at least 2021, predicts LMC Automotive at its annual outlook conference outside Detroit, Mich.
-
GM, Ford Evaluate Possible Economic Slump
General Motors and Ford say they have bolstered their cash reserves in case the trade war between the U.S. and China triggers a global recession.
-
Ford’s $42 Billion Cash Cow
F-Series pickups generate about 30% of the carmaker’s revenue. The tally is about twice as much as what McDonald’s pulls in.