Full Transcript: Ally Financial Q2 2026 Earnings Call

On Tuesday, Ally Financial (NYSE: ALLY ) discussed second-quarter financial results during its earnings call. The full transcript is provided below. APIs provide real-time access to earnings call transcripts and financial data. Visit to learn more.

3 billion year over year, driven by asset growth and margin expansion. The company returned over $300 million to shareholders through share repurchases and maintained a strong balance sheet with a CET1 ratio increase of 20 basis points year over year. Retail auto and corporate finance assets grew by $8 billion, reflecting a strong dealer-centric approach and record application volumes. The digital bank saw a 7% increase in customer growth, with retail deposit balances at $144 billion, highlighting the shift towards digital-first experiences.

Management emphasized disciplined growth, focusing on accretive asset growth, credit performance, and the optimization of deposit pricing to support NIM expansion. 3%, and confidence in achieving a sustainable upper 3s net interest margin. Operational highlights include strong performance in insurance and corporate finance, with a 32% ROE in the corporate finance segment. Full Transcript OPERATOR Good day and thank you for standing by.

Welcome to Ally Financial's second quarter 2026 earnings conference call. At this time, all participants are in a listen-only mode. After the speakers' presentation, there will be a question-and-answer session. To ask a question during the session, you will need to press star 11 on your telephone.

You will then hear an automated message advising your hand is raised. To withdraw your question, please press star 11 again. Please be advised that today's conference is being recorded. I'd now like to hand the conference over to Sean Leary, Chief Financial Planning and Investor Relations Officer.

Please go ahead. Sean Leary, Chief Financial Planning and Investor Relations Officer Thank you. Good morning and welcome to Ally Financial's second quarter 2026 earnings call. This morning our CEO Michael Rhodes and our CFO Russ Hutchinson will review Ally's results before taking questions.

com. Forward-looking statements and risk factor language governing today's call are on page two. GAAP and non-GAAP measures pertaining to our operating performance and capital results are on page three. S.

GAAP measures. Definitions and reconciliations can be found in the appendix. And with that I'll turn the call over to Michael. Michael Rhodes, CEO Thank you Sean and good morning everyone.

I appreciate you joining us today. Second quarter results were solid and reflect the progress we've made over the past several years to build a more focused, higher-performing company. The strategic choices we've made are creating a franchise with meaningfully greater earnings power. We are seeing that reflected not only in margin expansion and strong operating performance, but also our ability to invest for growth while simultaneously increasing capital returns to shareholders.

Simply put, our results demonstrate our strategy, backed by disciplined execution, is working. The Ally today is fundamentally stronger. We believe this positions us well to further enhance profitability, support customers through economic cycles, and create long-term shareholder value. 8%.

3 billion increased 10% year over year, reflecting continued asset growth and further margin expansion. To the point, retail auto and corporate finance assets grew nearly $8 billion year over year. 63%. Our balance sheet continued to strengthen during the quarter with CET1 increasing 20 basis points year over year.

That strength is providing greater capital flexibility. Since announcing our authorization in December, we've returned more than $300 million to shareholders through share repurchases. Taken together, these results reflect improved earnings power, increased capital flexibility, and a company that is better positioned to perform through the economic cycles. Importantly, we are seeing broad-based momentum across the company, with each of our core franchises executing well and contributing to our performance.

That momentum is supported by investments we've made to strengthen both the Ally brand and our culture. Our revitalized marketing campaign, Life Today, is resonating with customers and highlighting the unique value proposition of Ally, meeting customers where life and money intersect. In today's world, we continue to see encouraging results in brand health, awareness, engagement, and industry-leading retention. Equally important, our culture remains a meaningful competitive advantage.

Employee engagement scores improved again this year and ranked the top decile of companies nationally for the seventh consecutive year, with particularly strong improvement across measures such as belief in our strategy. We believe highly engaged employees aligned around a clear strategy create better experiences for our customers and ultimately drive stronger business outcomes. With that, let's turn to page five and discuss performance across our core franchises, starting with Dealer Financial Services. Our dealer-centric, through-the-cycle approach remains a key differentiator and a meaningful competitive advantage within auto finance.

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