Ally Financial Q3 2026: $1.34 Adjusted EPS Up 16% as Auto Originations Hit $12.9B

Ally Financial (NYSE: ALLY), the auto-and-digital bank, reported third-quarter 2026 GAAP earnings per share of \$1.30, up 10% year over year, with adjusted EPS of \$1.34, up 16%. Pretax income of \$567 million rose 11%, return on equity hit 12.1%, and core ROTCE reached 13.1% — up 80 basis points. The quarter's shape is classic late-cycle auto finance done well: record application volume (4.8 million, up 20%) funding \$12.9 billion of originations, up 10%, at a 9.44% originated yield with 44% of volume in the highest credit tier. Breadth lets Ally be selective; selectivity keeps charge-offs at 189 basis points, up just 1 basis point.

The number that needs a second look is the provision: \$529 million, up 27% year over year against a loan book up 10%. That is partly growth arithmetic — new loans need new reserves — but it is also the cost of the 2026 vintage seasoning. Net financing revenue of \$1,748 million (+10%) comfortably absorbed it this quarter, with net interest margin ex-OID expanding to 3.66%, up 11 basis points year over year.

The Headline Numbers​

Expenses deserve credit: noninterest expense of \$1,236 million actually fell year over year despite 10% origination growth — positive operating leverage, the thing shareholders are really buying. Compensation dipped 1% while other operating expenses rose just 1%.

The deposit franchise: 70 quarters and counting​

Ally Bank grew retail customers for the 70th consecutive quarter to 3.6 million, holding \$142 billion of retail deposits — 92% FDIC-insured, funding 86% of the balance sheet from core deposits. Total deposits of \$155.8 billion fund a \$148.0 billion finance-receivables book with room to spare. September brought "Loyally," a fee-free rewards experience aimed at deepening exactly these relationships. In a rate environment where every bank relearned that deposits have a beta, Ally's retention-led, rate-plus-value proposition is the moat — and CET1 of 10.2% leaves room to return capital: \$178 million of buybacks this quarter plus a \$0.35 fourth-quarter dividend.

Corporate Finance quietly earned a 22% ROE on a \$15.8 billion held-for-investment book with non-performing loans under 1%. Insurance wrote \$388 million of premiums, up 1%.

The cycle in the ledger: from $3 billion to the trough and back​

The six years now in the open ledger show a full credit cycle: net income to common peaked at \$3,003 million in 2021 on reserve releases, slid to \$558 million by 2024 as provisions normalized, and recovered to \$742 million in 2025 — with 2026 tracking higher still. Every annual income statement and balance sheet, plus this quarter's condensed statements, is modeled as examinable Beancount below.

Sources​

• Q3 2026 earnings release (Form 8-K, October 20, 2026)
• Form 10-K for fiscal year 2025