Q2:NIM And Credit Strong; Modestly Lower Est On Higher Growth Provision/Pref

Research evidence excerpt

Q2:NIM And Credit Strong; Modestly Lower Est On Higher Growth Provision/Pref

Diversified Financials: Consumer Finance

Ally Financial

TD SECURITIES (USA) LLC EARNINGS UPDATE

July 21, 2026

Price: $44.43 (07/21/2026) Q2:NIM And Credit Strong; Modestly Lower

Price Target: $55.00 Est On Higher Growth Provision/Pref

BUY (1)

Moshe Orenbuch THE TD COWEN INSIGHT

646 562 1495

ALLY reported adj EPS of $1.21 vs our $1.24 est and FS cons of $1.22. The slight miss was

moshe.orenbuch@tdsecurities.com

driven by higher prov expense from loan growth, including a ~$100mm auto reserve build.

Burç Okumuş Originations rose 21% y/y with a strong S-tier mix. We lower our 26/27 adj EPS estimates to

212 468 8443 $5.45/$6.50 (old: $5.60/$6.53), reflecting higher prov from loan growth and higher preferred

burc.okumus@tdsecurities.com

dividends following the Q2 issuance.

Key Data

Symbol NYSE: ALLY Overall, we view the quarter as neutral. ALLY modestly missed our and consensus adj EPS

Beta: 1.08 estimates due to higher provision expense from loan growth, though credit trends, NIM,

52-Week Range: $47.25-$35.96 and origination growth were favorable. Record dealer applications allowed ALLY to remain

Market Cap: $13.6B disciplined while growing originations by over 20% y/y. S-tier mix reached 47%, the second-

Net Debt (MM): $19,505.0 highest level in ALLY’s history, driven by seasonality, stronger vehicle sales (particularly in

Cash/Share: $(0.16) June), and the broader industry mix. Portfolio yield declined 2 bps q/q, but management

expects S-tier mix to normalize to the low-to-mid-40% range, supporting yield.Dil. Shares Out (MM): 313.2

Enterprise Value

$35,745.3 NIM of 3.59% was slightly below our 3.61% estimate, though net financing revenue was higher

(MM):