Ally Financial: 2Q‘26 Earnings: Record Product Demand, Margins Expand, & Quality Solid

Research evidence excerpt

Ally Financial: 2Q‘26 Earnings: Record Product Demand, Margins Expand, & Quality Solid

J P M O R G A N North America Credit Research

22 July 2026

Overweight

Ally Financial ALLY

2Q’26 Earnings: Record Product Demand, Margins Moody's:S&P: Baa3BBB- Outlook:Outlook: STABLESTABLE

The above agency ratings are at the corporate levelExpand, & Quality Solid

North America Corporate Credit -

Ally Financial's 2Q'26 earnings were mixed, with EPS missing market Banks (IG), Nonbank Financials (IG),

expectations by a touch, while net revenues beat market expectations. Notably, and Financials (HY)

management revised their FY'26 guidance, starting with average earning assets are AC Kabir Caprihan, CFA

expected to increase 3% - 5% YoY, revised from increasing 2% - 4%. The change (1-212) 834-5613

reflects strong consumer auto originations and continued momentum within kabir.x.caprihan@jpmorgan.com

corporate finance. Along with that, Ally narrowed its NCO guidance to 1.2% - Vincent Barretta

1.3%, from 1.2% - 1.4%. Revenue for the quarter was $2.29bn, a 10% increase YoY (1-212) 464-0374

and a 9% increase QoQ, ahead of market expectations of $2.22bn. Originations vincent.barretta@jpmorgan.com

were also strong in the quarter totaling $13.3bn, a 21% increase YoY, with 47% of J.P. Morgan Securities LLC

these originations being S-tier, a significant increase from 41% in the prior few

quarters' originations. Management attributed the increase in S-tier to seasonality

and said they expect it to return to the low-mid 40s.

We maintain our Overweight recommendation on Ally Financial. We continue

to see strong fundamentals within Ally, driven by record demand for their products.

With the record demand, Ally has proven to be very selective on who they lend to,