A digital bank and auto-finance leader, Ally Financial runs Ally Bank—the largest all-digital bank in the US—alongside auto loans and leases, dealer insurance, and loans to middle-market companies. It began life in 1919 as GMAC, the financing arm General Motors created because banks wouldn't lend on cars, then rebranded as "Ally" in 2010 to shake off its parent's shadow and become an independent, customer-first bank.
Q2 2026 net income rose to $319M as revenue grew 36.4% to $2.1B from a year-ago loss quarter
Ally returned to profit growth after a weak 2025. rose 36.4% to $2,102M and was $0.93 versus a $0.82 loss a year earlier, as net financing revenue grew on lower deposit costs and the prior-year securities loss rolled off. The company is profitable again but carries $14.9B of against $9.5B cash.
Key takeaways
was $319M, up from a $225M loss in Q1 2025, driven by a $478M improvement in other loss on investments from the prior-year securities repositioning and a $399M fall in noninterest expense after the year-ago $305M (Q1 2026 MD&A).
Consolidated net rose 36.4% to $2,102M, with net financing revenue up 8% to $1.6B from lower deposit as benchmark rates declined (Q1 2026 MD&A).
increased $276M to $467M, largely because Q1 2025 included a benefit from moving to (Q1 2026 MD&A).
Section summaries
Management's Discussion and Analysis
Q2 2026 net income rose to $410M driven by higher net financing revenue and other revenue, partially offset by increased provision and expenses.
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Consolidated net grew 10% to $2.3B, with net financing revenue up 11% on higher earning assets and lower deposit costs.
Automotive Finance pretax income declined 10% to $336M on higher and provision, while Insurance pretax income rose to $28M from $2M on lower weather-related losses (Q1 2026 MD&A).
Total deposits grew to $153.2B and the improved to 10.11% from 9.50% a year earlier (Q1 2026 MD&A).
Q2 2026 MD&A reports consolidated net grew 10% to $2.3B with net financing revenue up 11% on higher earning assets and lower deposit costs; per that section rose to $410M.
What changed
Q1 2026 flagged the Q2 2026 against the $467M Q1 level; the Q2 2026 MD&A reports provision rose 12% to $430M, below the Q1 figure.
Q1 2026 flagged the Automotive Finance pretax trend after a 10% Q1 decline; Q2 2026 MD&A shows Automotive Finance pretax income fell 13% to $410M on higher and provision, with consumer auto originations up 21%.
Q1 2026 flagged total deposits after a Q1 rise to $153.2B; Q2 2026 MD&A states deposits funded 87% of liabilities with liquidity at $62.8B and CET1 at 10.15% after a $1B preferred stock issuance.
Q1 2026 flagged insurance weather losses after a Q1 pretax recovery to $28M; Q2 2026 MD&A shows Insurance pretax income rose 89% to $53M on higher investment gains and premiums with at 116.6%.
Against Q2 2025's $352M profit, Q2 2026 (per table) was $319M, down 9.4%, while rose 1.0% QoQ and was 94.2% versus 90.2% a year earlier.
What to watch
Q3 2026 against the $430M Q2 level as consumer auto develop under the assumed 4.5% unemployment peak.
Automotive Finance pretax trend after the 13% Q2 decline from higher and provision despite 21% consumer auto origination growth.
Total deposit path after Q1's rise to $153.2B and the Q2 87% funding reliance with $62.8B liquidity.
Insurance after the Q2 116.6% reading and the 89% pretax income increase to $53M.
Automotive Finance pretax income fell 13% to $410M as higher and provision outweighed gains; consumer auto originations rose 21%.
Insurance pretax income surged 89% to $53M on higher investment gains and premiums, with improving to 116.6%.
Corporate Finance pretax income increased 27% to $122M, driven by portfolio growth and lower provision from a favorable legacy health care resolution.
rose 12% to $430M, mainly from consumer auto portfolio growth, while declined to 1.1% of average loans.
Total available liquidity stood at $62.8B, with deposits at 87% of funding; improved to 10.15% after issuing $1B in preferred stock.
Quantitative and Qualitative Disclosures About Market Risk
Refer to the Market Risk section of Item 2, Management’s Discussion and Analysis of Financial Condition and Results of Operations. 121 Table of Contents Controls and Procedures Ally Financial Inc. • Form 10-Q
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Refer to the Market Risk section of Item 2, Management’s Discussion and Analysis of Financial Condition and Results of Operations.
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Table of Contents
Controls and Procedures
Ally Financial Inc. • Form 10-Q
Refer to Note 23 to the Condensed Consolidated Financial Statements (incorporated herein by reference) for a discussion related to our legal proceedings, which supplements the discussion of legal proceedings set forth in Note 29 to the Consolidated Financial Statements in our 20…
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Refer to Note 23 to the Condensed Consolidated Financial Statements (incorporated herein by reference) for a discussion related to our legal proceedings, which supplements the discussion of legal proceedings set forth in Note 29 to the Consolidated Financial Statements in our 2025 Annual Report on Form 10-K.