Ally’s net charge-offs clocked in at 0.64%, a year-over-year decline of 74 basis points.
The Detroit-based lender has had its consumer underwriting teams working remotely for a “long period of time,” which has netted positive performance results, Ally President of Auto Finance Doug Timmerman said during the fireside chat at the Auto Finance Summit on Wednesday. Ally posted $9.8 billion in originations last quarter, its highest quarterly volume in five years.
The pivot to a work-from-home structure opens the labor force, according to Timmerman. “You’re not limited by geography, so you can go out and find the very best talent, no matter where they are.”
Still, peak losses as a result of the coronavirus pandemic are expected next year.
“The thought process to when [losses] peak probably depends on next round of stimulus, assuming there is one,” Timmerman said, noting that additional stimulus could push peak losses well into the latter half of 2021.
“If you look at our [staffing] headcount today, we’re actually probably staffed a little heavy,” Timmerman said. “But that’s a good place to be because we want our staffing to be in [good] position when we do see those peak levels.”
Ally Financial has a managed portfolio of $73 billion, according to the bank’s Q3 earnings report.