Ally Posts Strong 2Q Auto Originations, Despite Weak Overall Earnings

Ally Financial continues to put up huge origination numbers in its auto financing business.

Ally’s second quarter earnings released today show originations up across the board, with leasing enjoying the greatest year-over-year increase (+155% YOY). In all, Ally’s originations climbed to $9.5 billion last quarter from $8 billion in the same quarter in 2010. 

But earnings in Ally’s auto finance business fell to $559 million from $592 million in 2Q10, a 5.6% decline. Ally’s overall auto finance unit, which includes insurance, saw its quarterly earnings fall $92 million to $703 million.

Ally’s troubled mortgage business continued to weigh on the company. Overall “core pre-tax income” at Ally fell to $466 million in 2Q11 from $727 million in 2Q10, a 36% year-over-year decline. 

Ally’s auto finance credit performance held up in the quarter. Provisions for auto losses fell to $55 million from $106 million YOY.

Meanwhile, overall auto outstandings in Ally’s portfolio jumped to $48. 9 billion in 2Q, 49% higher than in the same quarter in 2010.