Ally Financial Inc. (ALLY) on Tuesday reported a second-quarter profit after posting a loss in the same period a year ago as more people deposited money into its bank and demand for auto loans increased.
The Detroit-based company was the former finance arm of automaker General Motors, but now it operates as an auto finance company and bank after being bailed out by the government. The company had an initial public offering of shares in April.
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It reported second-quarter net income of $323 million, or 54 cents per share, compared with a loss of $927 million, or $2.73 per share, in the same quarter a year ago.
Earnings, adjusted to remove one-time items, were 42 cents per share. That's above the 33 cents per share that analysts on average expected, according to FactSet.
Earnings from auto loans rose 20.7 percent to $461 million from $382 million a year ago. Deposits to Ally Bank rose 15 percent to $45.9 billion.
Its mortgage business also improved, posting earnings of $27 million after reporting a loss of $27 million a year ago.
Its insurance unit reported a loss of $23 million for the quarter, after posting earnings of $45 million last year.
Shares of Ally Financial added 4 cents to $24.06. They are down nearly $1 from its IPO price of $25 in April.