Ally Financial Inc (ALLY.N): 2Q26 Review - Good Quarter with Fundamentals Still On Track + Supportive Deposit Trends

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Ally Financial Inc (ALLY.N): 2Q26 Review - Good Quarter with Fundamentals Still On Track + Supportive Deposit Trends

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22 Jul 2026 05:00:00 ET │ 13 pages

Ally Financial Inc (ALLY.N)

2Q26 Review - Good Quarter with Fundamentals Still On Track +

Supportive Deposit Trends

CITI'S TAKE Buy

Price (21 Jul 26 16:00) US$44.43 ALLY underperformed on earnings day (down ~2.4% vs BKX up ~1%) likely

Target price US$58.00 on limited read-through from 2Q results to forward estimates (ours

broadly unchanged). NII was better than expected (~5c tailwind to cons) Expected share price return 30.5%

and 3.59% core NIM was in-line to cons despite a larger AEA base. Expected dividend yield 2.7%

Deposits were a support, growing avg ~3% y/y and also up linked-quarter Expected total return 33.2%

even while lowering deposit costs ~14bps q/q. In our view, the Market Cap US$13,619M

fundamentals remain on track, with 2H26 NIM progression supported by

deposit repricing tailwinds and 2027 aided by AEA growth and continued

remix into higher-yielding auto loans. The stock reaction feels overdone

for what was still a good quarter, and while reserve build + higher S-tier Benjamin GerlingerAC

mix may have played into market's pre-existing credit worries and +1-212-816-3538

weighed on the stock, we think this overlooks growth-driven build and S- benjamin.gerlinger@citi.com

tier seasonality, as we expect credit trending towards the low-ends of Mikhail Mrotchek

mgmt's NCO guides. +1-212-816-2345

misha.mrotchek@citi.com

Estimate Changes — Our 2026E EPS increases 5c to $5.10 (vs. FactSet consensus Kaili Wang, CFA

of $5.31), 2027E EPS unchanged at $6.60 (vs. FactSet consensus of $6.50), and +1-716-730-7408

2028E EPS unchanged at $7.15. See Figure 1 for more detail on estimate revisions. kaili.wang@citi.com