Auto Finance News

No products in the cart.

Subscribe
  • Home
  • News
    • All News
    • Capital & Funding
    • Compliance & Regs
    • Technology
    • Risk Management
    • Sales & Marketing
  • Data
  • EXCELLENCE
  • Magazine
  • Events
    • Auto Finance Summit 2023
    • Powersports Finance Summit 2023
    • Using Pricing Analytics to Increase Loan Profitability and Mitigate Portfolio Risk
  • Podcast
  • Powersports
BIG Wheels
Log In
No Result
View All Result
Auto Finance News
  • Home
  • News
    • All News
    • Capital & Funding
    • Compliance & Regs
    • Technology
    • Risk Management
    • Sales & Marketing
  • Data
  • EXCELLENCE
  • Magazine
  • Events
    • Auto Finance Summit 2023
    • Powersports Finance Summit 2023
    • Using Pricing Analytics to Increase Loan Profitability and Mitigate Portfolio Risk
  • Podcast
  • Powersports
BIG Wheels
Log In
No Result
View All Result
Auto Finance News
No Result
View All Result

Ally Financial allots $3B for credit losses, defers CECL

Nicole Casperson and Joey PizzolatobyNicole Casperson and Joey Pizzolato
April 20, 2020
in Earnings, Risk Management
Reading Time: 2 mins read
0

Ally Financial has set aside $2.8 billion in retail auto reserves, a $1.8 billion year-over-year increase, as the COVID-19 crisis continues to afflict the economy, the lender announced during its first-quarter earnings call this morning.

Ally’s auto-specific reserves cover 3.4% of its total $81.5 billion auto portfolio and make up a majority of the lender’s $3.2 billion in firmwide loss reserves.

Yet, Ally joined Bank of America as the latest lender to elect regulators’ option to defer estimated capital impact of current expected credit losses (CECL) implementation until 2022. Ally set aside $2.4 billion in reserves to account for CECL on Jan. 1.

Net charge-offs were up 12 basis points year over year to 1.44% in the first quarter. Total 30-plus day delinquencies, too, increased 63 basis points year over year to 3.19%.

The rise in delinquencies is attributed to the way Ally logs the status of accounts that are in deferral, which are “effectively frozen in their status” until the deferral expires, Ally’s Chief Financial Officer Jennifer LaClair said during the call, noting that this could affect future net charge-off rates negatively. Approximately 1.1 million of its auto customers — or 25% — are using Ally’s deferral program.

Still, as a bank, Ally is in a comfortable liquidity position at $30.1 billion, including cash and cash equivalents and secured and unsecured debt. Deposits — which make up 75% of the bank’s funding source — amounted to $122.3 billion. This month Ally was also able to issue $750 million of unsecured notes due May 1, 2025.

Even so, liquidity should not be a concern considering reduced activity at dealerships lowered application and origination volume by over 50% by late March. Ally expects that trend to continue in line with the shelter-in-place orders. Ally’s total originations for the quarter were relatively flat at $9.1 billion, with used-vehicle originations clocking in at $5 billion.

“Over time as the economy improves, we will be positioned to execute on opportunities, including a potential increase in demand for used vehicles,” LaClair said. “[Ally] will prudently step in where others may have exited, providing adaptable solutions as we did with the expanded Carvana floorplan program.”

Ally doubled Carvana’s line of credit to $2 billion, and extended a $450 million floorplan line of credit to online used-car retailer Vroom last month.

Tags: Allowance for credit lossesAllyauto financeCarvanaCECLCoronaviruscredit lossesearningsliquidity
Previous Post

GM renews $2B credit line for GM Financial

Next Post

Credit Acceptance delays quarterly SEC filing due to COVID-19

Related Posts

Supporters cheer as UAW members go on strike at the Ford Michigan Assembly Plant in Wayne, Michigan, on Sept. 15.
Risk Management

Open Lending chief: Big 3 inventory should hold up — for now

September 26, 2023
Row of used cars
Risk Management

Podcast: ‘Weekly Wrap’ on market share, interest rates, Carvana

September 26, 2023
UAW members and supporters on a picket line outside the GM’s Flint Processing Center in Swartz Creek, Michigan, on Monday.
Risk Management

UAW fight against billions in buybacks forces investor rethink

September 26, 2023
Next Post
© Can Stock Photo / mflippo

Credit Acceptance delays quarterly SEC filing due to COVID-19

STAY INFORMED WITH OUR NEWS ALERTS

COLUMNS

Closeup of car head lamp

Under the Hood: Opposing forces tug at industry’s future

September 15, 2023
Green plant growing from the coins

Under the Hood: Lenders spice up funding routines

August 28, 2023

Innovation & Technology

The Road to Dominance: How Automated Access to Insurance Data is Steering the Automotive Sector

September 26, 2023
Cars

Westlake portfolio grows following product launches

September 19, 2023

RISK MANAGEMENT

Supporters cheer as UAW members go on strike at the Ford Michigan Assembly Plant in Wayne, Michigan, on Sept. 15.

Open Lending chief: Big 3 inventory should hold up — for now

September 26, 2023
Row of used cars

Podcast: ‘Weekly Wrap’ on market share, interest rates, Carvana

September 26, 2023

SPONSORED

The Road to Dominance: How Automated Access to Insurance Data is Steering the Automotive Sector

September 26, 2023

A new era in auto finance collections with Voicebots

August 15, 2023

Finding the Perfect Sweet Spot For Your Auto Loan Pricing

June 13, 2023

Resources

ABOUT US

HELP CENTER

MARKETING SOLUTIONS

PRIVACY TERMS

ADA COMPLIANCE

CODE OF JOURNALISM ETHICS

Manage Cookie Consent

Special Content

EXECUTIVES OF THE YEAR

AUTO FINANCE EXCELLENCE AWARDS

MAGAZINE ARCHIVE

INDUSTRY GLOSSARY

Follow Us

twitter linkedin twitter podcast podcast
© 2023 Royal Media
No Result
View All Result
  • Home
  • News
    • All News
    • Capital & Funding
    • Compliance & Regs
    • EVs
    • Exec of the Year
    • Innovation & Technology
    • Management
    • Powersports Finance News
    • Risk Management
    • Sales & Marketing
  • Events
    • Auto Finance Summit East
    • Auto Finance Summit
    • Powersports Finance Summit
    • Equipment Finance Connect
  • Excellence
    • Best Practices
    • Topics
      • Compliance
      • Customer Experience
      • Technology
    • White Papers
    • Glossary
  • Magazine
    • Latest Issue
    • Features
    • New Tracks
    • Car Culture
    • Staffing Shuffles
    • Under The Hood
    • Spotlight
    • Issue Archive
  • Podcast
  • Data
  • +PLUS
  • SUBSCRIBE
  • Log In / Account

Welcome Back!

Login to your account below

Forgotten Password?

Retrieve your password

Please enter your username or email address to reset your password.

Log In
THIS WEBSITE USES COOKIES

We use cookies on our website to give you the most relevant experience by remembering your preferences and repeat visits. By clicking “I CONSENT”, you consent to the use of ALL the cookies.

Cookie settingsI CONSENT

Review our Cookie Policies
.
Manage Cookie Consent

Privacy Overview

This website uses cookies to improve your experience while you navigate through the website. Out of these cookies, the cookies that are categorized as necessary are stored on your browser as they are essential for the working of basic functionalities of the website. We also use third-party cookies that help us analyze and understand how you use this website. These cookies will be stored in your browser only with your consent. You also have the option to opt-out of these cookies. But opting out of some of these cookies may have an effect on your browsing experience.
Necessary
Always Enabled
Necessary cookies are absolutely essential for the website to function properly. These cookies ensure basic functionalities and security features of the website, anonymously.
CookieDurationDescription
34f6831605sessionGeneral purpose platform session cookie, used by sites written in JSP. Usually used to maintain an anonymous user session by the server.
a64cedc0bfsessionGeneral purpose platform session cookie, used by sites written in JSP. Usually used to maintain an anonymous user session by the server.
CookieConsentPolicy1 yearUsed to apply end-user cookie consent preferences set by our client-side utility.
cookielawinfo-checkbox-advertisement1 yearSet by the GDPR Cookie Consent plugin, this cookie is used to record the user consent for the cookies in the "Advertisement" category .
cookielawinfo-checkbox-analytics11 monthsThis cookie is set by GDPR Cookie Consent plugin. The cookie is used to store the user consent for the cookies in the category "Analytics".
cookielawinfo-checkbox-functional11 monthsThe cookie is set by GDPR cookie consent to record the user consent for the cookies in the category "Functional".
cookielawinfo-checkbox-necessary11 monthsThis cookie is set by GDPR Cookie Consent plugin. The cookies is used to store the user consent for the cookies in the category "Necessary".
cookielawinfo-checkbox-others11 monthsThis cookie is set by GDPR Cookie Consent plugin. The cookie is used to store the user consent for the cookies in the category "Other.
cookielawinfo-checkbox-performance11 monthsThis cookie is set by GDPR Cookie Consent plugin. The cookie is used to store the user consent for the cookies in the category "Performance".
crmcsrsessionGeneral purpose platform session cookie, used by sites written in JSP. Usually used to maintain an anonymous user session by the server.
JSESSIONIDsessionThe JSESSIONID cookie is used by New Relic to store a session identifier so that New Relic can monitor session counts for an application.
LS_CSRF_TOKENsessionCloudflare sets this cookie to track users’ activities across multiple websites. It expires once the browser is closed.
LSKey-c$CookieConsentPolicy1 yearUsed to apply end-user cookie consent preferences set by our client-side utility.
viewed_cookie_policy11 monthsThe cookie is set by the GDPR Cookie Consent plugin and is used to store whether or not user has consented to the use of cookies. It does not store any personal data.
Functional
Functional cookies help to perform certain functionalities like sharing the content of the website on social media platforms, collect feedbacks, and other third-party features.
CookieDurationDescription
__cf_bm30 minutesThis cookie, set by Cloudflare, is used to support Cloudflare Bot Management.
_zcsr_tmpsessionZoho sets this cookie for the login function on the website.
663a60c55dsessionThis cookie is related to Zoho (Customer Service) Chatbox
e188bc05fesessionThis cookie is set in relation to Zoho Campaigns
Performance
Performance cookies are used to understand and analyze the key performance indexes of the website which helps in delivering a better user experience for the visitors.
Analytics
Analytical cookies are used to understand how visitors interact with the website. These cookies help provide information on metrics the number of visitors, bounce rate, traffic source, etc.
CookieDurationDescription
_ga2 yearsThe _ga cookie, installed by Google Analytics, calculates visitor, session and campaign data and also keeps track of site usage for the site's analytics report. The cookie stores information anonymously and assigns a randomly generated number to recognize unique visitors.
_gid1 dayInstalled by Google Analytics, _gid cookie stores information on how visitors use a website, while also creating an analytics report of the website's performance. Some of the data that are collected include the number of visitors, their source, and the pages they visit anonymously.
CONSENT2 yearsYouTube sets this cookie via embedded youtube-videos and registers anonymous statistical data.
vuid2 yearsVimeo installs this cookie to collect tracking information by setting a unique ID to embed videos to the website.
Advertisement
Advertisement cookies are used to provide visitors with relevant ads and marketing campaigns. These cookies track visitors across websites and collect information to provide customized ads.
CookieDurationDescription
__Host-GAPS2 yearsThis cookie allows the website to identify a user and provide enhanced functionality and personalisation.
_dc_gtm_UA-1038974-31 minuteUsed to help identify the visitors by either age, gender, or interests by DoubleClick - Google Tag Manager.
_fbp3 monthsThis cookie is set by Facebook to display advertisements when either on Facebook or on a digital platform powered by Facebook advertising, after visiting the website.
fr3 monthsFacebook sets this cookie to show relevant advertisements to users by tracking user behaviour across the web, on sites that have Facebook pixel or Facebook social plugin.
test_cookie15 minutesThe test_cookie is set by doubleclick.net and is used to determine if the user's browser supports cookies.
VISITOR_INFO1_LIVE5 months 27 daysA cookie set by YouTube to measure bandwidth that determines whether the user gets the new or old player interface.
YSCsessionYSC cookie is set by Youtube and is used to track the views of embedded videos on Youtube pages.
yt-remote-connected-devicesneverYouTube sets this cookie to store the video preferences of the user using embedded YouTube video.
yt-remote-device-idneverYouTube sets this cookie to store the video preferences of the user using embedded YouTube video.
yt.innertube::nextIdneverThis cookie, set by YouTube, registers a unique ID to store data on what videos from YouTube the user has seen.
yt.innertube::requestsneverThis cookie, set by YouTube, registers a unique ID to store data on what videos from YouTube the user has seen.
Others
Other uncategorized cookies are those that are being analyzed and have not been classified into a category as yet.
CookieDurationDescription
caf_ipaddrsessionNo description available.
citysessionNo description available.
countrysessionNo description available.
gnt_eidsessionNo description available.
gnt_eu6 hoursNo description
iamcsrsessionZoho (Customer Support) sets this cookie and is used for tracking visitors (for performance purposes)
systemsessionNo description available.
traffic_targetsessionNo description available.
Save & Accept
Powered by CookieYes Logo