Ally Financial Inc. (GJM) has reported a 5.70 percent fall in profit for the quarter ended Dec. 31, 2016. The company has earned $248 million, or $0.52 a share in the quarter, compared with $263 million, or $1.97 a share for the same period last year. On an adjusted basis, earnings per share were at $0.54 for the quarter compared with $0.52 in the same period last year.
Revenue during the quarter went up marginally by 2.17 percent to $1,368 million from $1,339 million in the previous year period. Net interest income for the quarter dropped 0.71 percent over the prior year period to $976 million. Non-interest income for the quarter rose 10.11 percent over the last year period to $392 million.
Ally Financial Inc. has made provision of $267 million for loan losses during the quarter, up 11.25 percent from $240 million in the same period last year.
Net interest margin contracted 9 basis points to 2.56 percent in the quarter from 2.65 percent in the last year period. Efficiency ratio for the quarter deteriorated to 52.70 percent from 49.90 percent in the previous year period. A rise in efficiency ratio suggests a fall in profitability.
Liabilities outpace assets growth
Total assets stood at $163,728 million as on Dec. 31, 2016, up 3.25 percent compared with $158,581 million on Dec. 31, 2015. On the other hand, total liabilities stood at $150,411 million as on Dec. 31, 2016, up 3.63 percent from $145,142 million on Dec. 31, 2015.
Loans outpace deposit growth
Net loans stood at $117,800 million as on Dec. 31, 2016, up 6.56 percent compared with $110,546 million on Dec. 31, 2015. Deposits stood at $79,022 million as on Dec. 31, 2016, up 18.87 percent compared with $66,478 million on Dec. 31, 2015.
Noninterest-bearing deposit liabilities were $84 million or 0.11 percent of total deposits on Dec. 31, 2016, compared with $89 million or 0.13 percent of total deposits on Dec. 31, 2015.
Investments stood at $19,765 million as on Dec. 31, 2016, up 15.20 percent or $2,608 million from year-ago. Shareholders equity stood at $13,317 million as on Dec. 31, 2016, down 0.91 percent or $122 million from year-ago.
Return on average assets moved down 10 basis points to 0.60 percent in the quarter from 0.70 percent in the last year period. At the same time, return on average equity was stable at 7.40 percent in the quarter, when compared with the last year period.
Book value per share was $28.50 for the quarter, up 2.15 percent or $0.60 compared to $27.90 for the same period last year.
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