By Will Feuer
Ally Financial Inc.’s earnings it fell in the fourth quarter because the company kept more cash to cover losses.
The automotive and digital banking company recorded $278 million, down from $652 million a year earlier. Earnings were 83 cents per share, compared to $1.79 per share.
Excluding one-time items, adjusted earnings came to $1.08 per share. Analysts polled by FactSet were looking for adjusted earnings of 97 cents per share.
Revenue was $2.2 billion, about a year ago. Analysts had expected revenue of $2.06 billion.
Ally charged $490 million in bad debt in the quarter, compared to $210 million in the same period last year. The increase reflected continued debt and changes in economic data.
Non-interest expenses increased $176 million from last year due in part to the termination of a pension.
Write to Will Feuer at Will.Feuer@wsj.com