Online trading and banking company Ally Financial Inc (NYSE: ALLY) has released third quarter financial and operating results, indicating steady if unspectacular growth in its business.
Net financing revenue for Q3 of $1.08 billion was up 1% from $1.07 billion in Q2, while Pretax income of $395 million was up 5% from Q2’s $376 million.
Retail deposits were up a record $3.8 billion quarter-over-quarter to $74.9 billion with total deposits of $90.1 billion at quarter-end, up $3.9 billion for the quarter and up $14.4 billion year-over-year. The average retail deposit rate was 1.23% for the quarter, up 13 bps year-over-year and up 11 bps quarter-over-quarter.
Ally’s retail deposit customer base grew 16% year-over-year, totaling nearly 1.4 million customers at quarter-end, while adding more than 52 thousand customers over the prior quarter. Average customer balance ended the quarter at $54,500. Millennials continue to comprise the largest generation segment of new customers at 53%.
Ally Chief Executive Officer Jeffrey Brown commented on the financial results:
In the third quarter, Ally delivered strong operational and financial results and had important positive developments on the regulatory front, including normalization of regulatory capital requirements at our banking subsidiary. We can now move forward on a level playing field with other banks and more fully optimize our capital and funding structure.
We posted the highest revenue and Adjusted EPS since our IPO, driven by expanding retail and commercial margins and growing deposit balances. The deposit franchise continues to perform well, with total deposits of $90 billion, up $14 billion year-over-year, while retail deposits increased by $3.8 billion quarter-over-quarter, the highest quarterly retail deposit growth in our history.
We continue to navigate the cyclical dynamics within auto finance, while driving higher risk-adjusted returns on new originations and maintaining credit discipline. Our mortgage and wealth management businesses continue to develop as we elevate Ally’s banking franchise in the marketplace and deepen customer relationships. We remain in a strong position to drive shareholder value and deliver long-term earnings growth.
More of Ally’s Q3 results report can be seen here (pdf).