Oct 20, 2026 earnings call — Auto originations and margin guidance
Ally reported adjusted EPS of $1.34 and adjusted net revenue of $2.3 billion; quarter-end CET1 was 10.2%.
Revenue $2.3B (est $2.3B) · EPS $1.34 (est $1.34)
Key quotes
"In auto, we decisioned 4.8 million applications up 20% year over year as our refined go to market strategy continues to expand the top of the funnel and further our reach in our industry."
"Net interest margin, excluding OID, of 3.66% increased 3 basis points quarter over quarter as the full benefit of second quarter deposit pricing actions was largely offset by losses on lease termination."
"Earlier this week, we announced our quarterly dividend of $0.35 for the fourth quarter."
Analyst Q&A 7
credit trends and delinquencies
Q (Ryan Nash · Goldman Sachs): Analyst asked how credit will evolve into 2027, whether vintages or other factors will push net charge-offs up or down, and if the long-term target 1.6%–1.8% is reachable.
A: Management said the portfolio is performing in line with expectations for 2026 and that late 2025 and early 2026 vintages show elevated delinquency consistent with their underwriting. They said they expect 2027 NCOs to look a lot like 2026 and that any move toward the 1.6%–1.8% target would be a gradual drift, not a step change.
"As we look forward, you know, we are again pleased to see credit evolving through 2026 in line with our expectations and, again, in line with the midpoint of the range that we provided that we provided back in January." — Russell Hutchinson (CFO)
competition in retail auto
Q (Robert Wildhack · Autonomous): Analyst asked about the competitive environment in retail auto, differences across credit cohorts, and whether competition drove early delinquencies in late 2025/early 2026 originations.
A: Management said they have not seen measurable change in competition and continue to get strong application flow from dealers. They said they were able to put price into the market and exited the quarter with strong originated yields, so competition remains favorable for their franchise.
"So we feel that the competitive dynamic continues to be favorable for us." — Russell Hutchinson (CFO)
consumer health and late vintages
Q (Sanjay Sakhrani · KBW): Analyst asked if anything worries them about consumer health and whether underwriting of later vintages explains the higher delinquencies.
A: Management said the consumer remains resilient and credit is performing as expected, though they monitor gas prices, affordability, savings, and wages. They said the elevated delinquencies in late 2025 and early 2026 largely reflect the credit content of those vintages and they are adjusting underwriting in real time.
"A lot of that, in our view, is just reflective of the credit content." — Russell Hutchinson (CFO)
no new question / queue
Q (Sanjay Sakhrani · KBW): Analyst indicated he already asked his question and noted no new question.
A: The moderator said Sanjay already asked and that another participant was coming up next. That closed that turn of the line.
"Sanjay already asked. I think there is somebody else coming up." — Daniel Soto
capital-light moves and CRTs
Q (Moshe Orenbuch · TD Cowen): Analyst asked how recent moves in treasury yields and credit spreads helped their ability to price, and whether off-balance-sheet tools like CRTs and pass-throughs can mitigate CECL and capital effects.
A: Management said their strong dealer relationships and timing in the changing rate environment helped them put rate into the market. They said they executed a large North American retail auto CRT in the third quarter and used pass-through volume to keep loans off balance sheet and earn fees, as part of opportunistic capital management.
"We did the largest North American retail auto CRT that we are aware of in the third quarter." — Russell Hutchinson (CFO)
originated yields and deposit betas
Q (Jeff Adelson · Morgan Stanley): Analyst asked how originated yields will migrate higher over time and whether deposit betas will differ in this cycle.
A: Management said portfolio yield reflects seasoning and should drift up as higher-yield vintages roll into the book, not in a step change. They said their expectation for deposit betas remains in the 60-70% range and they will keep disciplined pricing while staying competitive.
"it is our expectation that it is in that 60-70% range" — Russell Hutchinson (CFO)
expenses, tech and AI investment
Q (Wells Fargo): Analyst asked how they think about expenses given tech and AI investment needs while maintaining discipline.
A: Management said they have strong expense discipline while still increasing spending in marketing and technology. They said they will invest where needed for an AI-first world but will remain efficient in operations so expenses stay roughly flat while volumes grow.
"do not mistake this operational discipline for lack of investment in the things that are required." — Michael G. Rhodes (CEO)