Ally Financial Reports Blowout Q2 Results

Ally Financial (NYSE:ALLY) is the latest U.S. bank to report better than expected second-quarter earnings.

The Detroit-based lender reported that it earned $2.09 billion U.S. of revenue for this year’s second quarter ended June 30, which exceeded Wall Street expectations. Five analysts surveyed by Zacks Investment Research expected revenue of $1.87 billion U.S.

On a per-share basis, Ally Financial said it earned a profit of $2.41 U.S. That result also exceeded Wall Street expectations. The average estimate of seven analysts surveyed by Zacks had called for earnings of $1.55 U.S. per share.

Ally Financial’s share price has risen 35% since the beginning of this year. The stock has more than doubled in the past 12 months.

Ally Financial’s results come as the four biggest U.S. consumer banks posted blockbuster second-quarter results over the past week as pandemic loan losses failed to materialize and the U.S. economy has roared back to life.

Wells Fargo (NYSE:WFC), Bank of America (NYSE:BAC), Citigroup (NYSE:C) and JPMorgan Chase (NYSE:JPM) posted a combined $33 billion U.S. in profits, buoyed by the release of $9 billion U.S. in reserves they had set aside last year to absorb feared pandemic losses.

That was beyond analyst estimates of about $24 billion U.S. in combined profits, compared with just $6 billion in the year earlier quarter.