Ally Financial Inc. Reports Earnings Results for the Fourth Quarter and Full Year Ended December 31, 2014
January 29, 2015 at 01:00 pm
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Ally Financial Inc. reported earnings results for the fourth quarter and full year ended December 31, 2014. For the quarter, the company reported net income of $177 million, or $0.23 per diluted common share, for the fourth quarter of 2014, compared to net income of $423 million, or $0.74 per diluted common share, in the priorquarter, and net income of $104 million, or a loss of $0.78 per diluted common share, for the fourth quarter of 2013. The company reported core pre-tax income of $229 million in the fourth quarter of 2014, compared to core pre-tax income of $467 million in the prior quarter and $142 million in the comparable prior year period. Adjusted earnings per diluted common share for the quarter were $0.40, compared to $0.53 for the previous quarter, and a loss of $0.14 for the comparable prior year period. Results for the quarter were driven by solid operating results from the Dealer Financial Services group, which increased pre-tax income by 45% compared to the prior year period, due in part to the non-recurrence of the $98 million charge related to the Consumer Financial Protection Bureau (CFPB) and U.S. Department of Justice (DOJ) settlement were taken in the prior year period. Total net revenue was $1.01 billion compared to $1.10 billion a year ago.
For the full year 2014, the company reported net income of $1.2 billion, or $1.83 per diluted common share, compared to net income of $361 million in 2013, or a loss of $1.64 per diluted common share. Core pre-tax income in 2014 totaled $1.4 billion, compared to core pre-tax income of $606 million in the prior year. Core pre-tax income of $1.6 billion for 2014 compared to $850 million for 2013. Adjusted earnings per diluted common share for full year 2014 were $1.68, compared to a loss of $0.14 in the prior year. Total net revenue was $4.65 billion compared to $4.26 billion a year ago.
Ally Financial Inc. is a financial services company. The Company's segments include Automotive Finance operations, Insurance operations, Mortgage Finance operations, and Corporate Finance operations. The Automotive Finance operations segment is engaged in providing services, such as retail installment sales contracts, loans and operating leases, offering term loans to dealers, financing dealer floorplans and other lines of credit to dealers, and other services. Insurance operations is a complementary automotive-focused business offering both consumer finance protection and insurance products sold primarily through the automotive dealer channel, and commercial insurance products sold directly to dealers. The Mortgage Finance operations segment includes its direct-to-consumer Ally Home mortgage offering and bulk purchases of jumbo and LMI mortgage loans originated by third parties. The Corporate Finance operations segment provides senior secured asset-based and leveraged cash flow loans.