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BUZZ-Ally Financial jumps on Q4 profit beat, credit performance improvement

ReutersJan 22, 2025 3:38 PM

Updates

** Consumer lender Ally Financial's ALLY.N shares jump as much as 8.7%; last up 5.6% at $40.33

** ALLY posts Q4 adjusted EPS of 78 cents, beating analysts' expectation of 57 cents, according to estimates compiled by LSEG

** Q4 net financing revenue of $1.51 bln was ahead of estimates of $1.50 bln, driven by lower funding costs

** Retail auto net charge-off rate - debts that are unlikely to be recovered - came in at 2.34% in Q4, which was below Street expectation

** Truist analyst Brian Foran says credit issues peaking is the headline as investors breathe a sigh of relief

** Co had last year warned of intensifying credit challenges as borrowers struggled with high inflation and cost of living

** ALLY also announced a raft of actions taken in Q4 to simplify and streamline the company

** Co has agreed to sell its credit card business to credit and payments company CardWorks

** ALLY stock rose 3.1% in 2024

(Reporting by Arasu Kannagi Basil in Bengaluru)

((ArasuKannagi.Basil@thomsonreuters.com;))

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