Ally Financial 4Q Profit Drops Amid Heavy Debt and Losses

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

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