Ally Financial’s pretax auto finance income rose to $839 million during the fourth quarter, a 49 percent increase from a year earlier, as the key company segment grew revenue and recorded lower expenses and a lower loss provision.
Pretax auto finance income for the year more than doubled to $3.4 billion, a gain Ally attributed to a lower loss provision and higher net financing revenue.
Though the company’s retail auto origination yield fell to 6.97 percent during the fourth quarter, Ally still posted a 7.1 percent yield for all of 2021, its fourth-straight year above 7 percent.
Consumer auto finance originations increased 20 percent to $10.9 billion during the quarter, Ally said. For the year, Ally recorded $46.3 billion in originations, up 32 percent , and saw a record 13 million applications.
Overall, Ally Financial’s net income fell $35 million , or 5.1 percent , during the fourth quarter. The decline in part reflected a larger provision for credit losses after closing on its Fair Square Financial acquisition Dec. 1.
