Ally Financial — Income Statement, Cash Flows & Balance Sheet
Is Ally Financial profitable?
Ally's net income rebounded meaningfully in 2025, though a large one-time investment loss and recurring goodwill charges obscure the underlying improvement.
| ($ in millions) | 2023 | 2024 | 2025 | Change (2024→2025) |
|---|---|---|---|---|
| Total net revenue | $8,234 | $8,181 | $7,914 | −3% |
| Provision for credit losses | $1,968 | $2,166 | $1,477 | −32% |
| Goodwill impairment | $149 | $118 | $305 | +$187 |
| Other (loss) gain on investments, net | $144 | $72 | $(361) | n/m |
| Net income | $957 | $668 | $852 | +28% |
| Diluted EPS | $2.77 | $1.80 | $2.37 | +32% |
The biggest driver of the earnings recovery was a sharp drop in credit loss provisions — a sign that the wave of auto loan delinquencies that peaked in 2024 is easing. The $361 million investment loss in 2025 stems from a deliberate repositioning of the securities portfolio (selling lower-yielding bonds at a loss to reinvest at higher rates), and is not expected to recur. Goodwill impairment — recorded three years in a row — is tied to the sale of the Ally Credit Card business and similarly does not reflect core operations.
Where does Ally Financial's revenue come from?
Automotive Finance is by far the most important business, but credit losses there are moderating while Insurance is growing steadily.
| Segment pretax income ($ millions) | 2023 | 2024 | 2025 | Change |
|---|---|---|---|---|
| Automotive Finance | $2,214 | $1,816 | $1,640 | −10% |
| Insurance | $216 | $168 | $200 | +19% |
| Corporate Finance | $354 | $434 | $365 | −16% |
| Corporate and Other (loss) | $(1,681) | $(1,582) | $(1,154) | improving |
Automotive Finance remains the engine of the business, though pretax profit there has declined over two years as higher funding costs and credit losses squeezed margins. Insurance bounced back in 2025, benefiting from growing premiums in vehicle service contracts and GAP products. The corporate-wide drag captured in "Corporate and Other" — which includes interest costs on parent-company debt and the investment portfolio repositioning loss — improved noticeably, helping lift consolidated results.
Does Ally Financial generate cash?
Ally generates solid operating cash flow, but a large investing outflow in 2025 reflects active balance sheet repositioning rather than a fundamental deterioration.
| ($ millions) | 2023 | 2024 | 2025 | Change |
|---|---|---|---|---|
| Operating cash flow | $4,557 | $4,528 | $3,729 | −18% |
| Investing cash flow | $(7,182) | $4,991 | $(5,264) | n/m |
| Financing cash flow | $3,839 | $(5,566) | $1,956 | n/m |
| Common dividends paid | $(368) | $(372) | $(379) | −2% |
| Common stock repurchased | $(33) | $(38) | $(59) | +55% |
Operating cash flow dipped in 2025 largely because lower credit loss provisions reduced the non-cash add-back from that line item. The investing outflow reflects two offsetting moves: proceeds from the Credit Card sale (~$2.4 billion) recycled into new securities and auto loan purchases. Ally maintained its $1.20 annual common dividend and modestly increased buybacks, signaling management confidence in the cash position.
How strong is Ally Financial's balance sheet?
Capital ratios are solid and improving, but a large accumulated investment portfolio loss and heavy deposit reliance remain items to watch.
| Metric | 2024 | 2025 | Change |
|---|---|---|---|
| Total assets | $191.8B | $196.0B | +2% |
| Total deposits | $151.6B | $151.6B | flat |
| Total long-term debt | $17.5B | $17.1B | −2% |
| Total equity | $13.9B | $15.5B | +11% |
| CET1 ratio (Ally Financial) | 9.82% | 10.23% | +41 bps |
| Accumulated other comprehensive loss (AOCI) | $(3.9B) | $(2.8B) | improving |
| Allowance for loan losses | $3.7B | $3.5B | −6% |
Equity grew substantially in 2025 partly because rising interest rates caused the fair value of Ally's bond portfolio to recover, shrinking the unrealized-loss balance in AOCI. Regulatory capital is well above minimum requirements. The business is almost entirely deposit-funded — a stable source, but one that proved expensive when rates rose sharply. The shrinking loan-loss allowance reflects improving credit trends in consumer auto, which is the dominant asset class at roughly 62% of total loans.