Summary of Ally’s Q2 2022 earnings call

Ally Financial hosted its Q2 2022 earnings call on July 19th.

The highlights:

• The auto finance company and bank reported a second-quarter net income of $482 million.
• Within auto, consumer originations of $13.3 billion represented Ally’s highest quarterly flows since 2006 and originated yields expanded 75 basis points quarter over quarter to 7.8%.
• Within insurance, written premiums of $262 million reflected lower overall inventory levels and industry sales. “We remain focused on leveraging our significant dealer network and holistic offerings to drive future growth in the insurance business.”
• Ally Home originated $900 million in the quarter.
• Ally Lending generated record origination volume of $591 million, which nearly doubled year over year as Ally continued its expansion of merchant relationships and volume in the healthcare and home improvement verticals.
• Over 10.5 million customers span its auto and deposit businesses.
• Ally Bank has over 2.5 million deposit customers, which have grown at a nearly 20% annual rate since its founding in 2009.
• Ally has grown dealer relationships to over 22,000. “So I mean I don’t think you can overstate the importance of growth in the dealer count, which is now 22,400-ish dealers, that’s up 20% over the past several years. And then also just the relationships we have established with big players and new players like EchoPark, Carvana and others. And while there is questions around their models, we are still seeing really strong flows from them in really high-quality paper.”
• The stock has declined 33% since the start of the year.

As an aside, earlier this year, Ally filed a trademark application for ‘Poly Pro’ described as a service that provides extended warranties for vehicles, and for ‘MoneyVerse’ described as a “downloadable computer software for the analysis, monitoring and tracking of financial investments.”