With $9 billion of loans originated in the fourth quarter of 2014, Ally Financial Inc. capped the year with $41 billion in originations. Fourth-quarter volume was up 9.8% year over year, but down 23.7% from the prior quarter. In an earnings call this morning, Ally attributed the decline to seasonality.
Of fourth-quarter originations, $3.9 billion stemmed from new-car loans, $2.7 billion from used-car loans, and $2.4 billion from leases. Ally ended the year with $112 billion of consumer and commercial auto receivables.
Overall, Ally reported $177 million of net income in the fourth quarter, up from $104 million in the fourth quarter of 2013, but down from $423 million reported in the third quarter of 2014.
Ally also officially exited the Troubled Asset Relief Program in 2014, after the U.S. Treasury sold its 54.9 million shares of Ally common stock in December. Ally Chief Executive Michael Carpenter said in this morning’s call that the bank was held to a higher standard due to its partial government ownership; he expects in 2015 to feel more relief from regulatory agencies.
