By Dean Seal
Shares of Ally Financial advanced after fourth-quarter results beat analyst projections and the company inked a deal to sell its credit-card business.
The stock was up 5% at $40.08 in early trading. Shares are up 11% since the year started and were trading at around $36.32 this time a year ago.
The Detroit-based holding company for Ally Bank reported before the bell that total net revenue for the quarter hit $2.03 billion while its net interest margin hit 3.3% thanks to lower funding costs. Both figures topped analyst forecasts, according to FactSet
Ally came away with earnings of 26 cents a share, or 78 cents a share when adjusted for one-time items. Analysts polled by FactSet had expected adjusted earnings of 57 cents a share.
The company also said before the bell that it has agreed to sell its credit-card business to a subsidiary of credit-card servicer CardWorks for an undisclosed amount.
The decision to sell is part of Ally's bid to streamline its structure and prioritize core businesses, Chief Executive Michael Rhodes said. The deal is expected to close this year.
Write to Dean Seal at dean.seal@wsj.com
(END) Dow Jones Newswires
January 22, 2025 10:32 ET (15:32 GMT)
Copyright (c) 2025 Dow Jones & Company, Inc.
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