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Segment Information
 3 Months Ended
Mar. 31, 2025
Segment Reporting [Abstract]  
Segment Information Segment Information
Operating segments are defined as components of an enterprise that engage in business activity from which revenues are earned and expenses incurred for which discrete financial information is available that is evaluated regularly by our CODM in deciding how to allocate resources and in assessing performance. We define our CODM as the CEO. The CODM uses pretax income to evaluate income generated from segment assets, and to assess a segment’s performance by comparing the results, relative to other segments. Additionally, the budgeting and forecasting process monitors budget versus actual results with emphasis on pretax income, which are also used in assessing the performance of a segment.
We report our results of operations on a business-line basis through three operating segments: Automotive Finance operations, Insurance operations, and Corporate Finance operations, with the remaining activity reported in Corporate and Other. The operating segments are determined based on the products and services offered, and reflect the manner in which financial information is currently evaluated by our CODM and management. The following is a description of each of our reportable operating segments.
Dealer Financial Services
Dealer Financial Services comprises the following two segments.
•Automotive Finance operations — One of the largest full-service automotive finance operations in the United States providing automotive financing services to consumers, automotive dealers and retailers, companies, and municipalities. Our automotive finance services include providing retail installment sales contracts, loans and operating leases, offering term loans to dealers, financing dealer floorplans and other lines of credit to dealers, warehouse lines to automotive retailers, fleet financing, providing financing to companies and municipalities for the purchase or lease of vehicles, and vehicle-remarketing services.
•Insurance operations — A complementary automotive-focused business offering both consumer finance protection and insurance products sold primarily through the automotive dealer channel, and commercial insurance products sold directly to dealers. As part of our focus on offering dealers a broad range of consumer financial and insurance products, we provide VSCs, VMCs, and GAP products. We also underwrite select commercial insurance coverages, which primarily insure dealers’ vehicle inventory.
Corporate Finance operations
Our Corporate Finance operations provide senior secured asset-based and leveraged cash flow loans to mostly U.S.-based middle-market companies, with a focus on businesses owned by private equity sponsors. These loans are typically used for leveraged buyouts, refinancing and recapitalizations, mergers and acquisitions, growth, turnarounds, and debtor-in-possession financings. We also provide, through our Lender Finance business, nonbank wholesale-funded managers with partial funding for their direct-lending activities, which is principally leveraged loans. Additionally, we offer a commercial real estate product, primarily focused on lending to skilled nursing facilities, senior housing, and medical office buildings.
Corporate and Other
Corporate and Other primarily consists of centralized corporate treasury activities, such as management of the cash and corporate investment securities and loan portfolios, short- and long-term debt, retail and brokered deposit liabilities, derivative instruments, original issue discount, and the residual impacts of our corporate FTP and treasury ALM activities. Corporate and Other also includes certain equity investments, which primarily consist of FHLB and FRB stock—as well as other equity investments through Ally Ventures, our strategic investment business, and reclassifications and eliminations between the reportable operating segments. Financial results related to Ally Invest, our digital brokerage and advisory offering, Ally Lending, Ally Credit Card, the management of our consumer mortgage portfolio, and CRA loans and investments are also included within Corporate and Other. We closed the sale of Ally Lending on March 1, 2024. Consumer mortgage originations will cease during the second quarter of 2025, which will result in a gradual run-off of our remaining consumer mortgage loan portfolio. Additionally, we closed the sale of Ally Credit Card on April 1, 2025. Refer to Note 2 for additional information.
We utilize an FTP methodology for the majority of our business operations. The FTP methodology assigns charge rates and credit rates to classes of assets and liabilities on a match funded basis, utilizing a benchmark rate curve plus an assumed credit spread. The assumed credit spread is calculated based on a composite investment grade unsecured yield curve or based on advance rates published by the FHLB for any asset that is eligible to be pledged as collateral to the FHLB. While the baseline FTP components at Ally assume 100% debt funding, the methodology also incorporates a credit on the allocated capital for each business line based on the business line’s allocated cost of funding. For business lines not subject to an FTP funding allocation, the FTP methodology applies a capital charge to the amount of excess equity that the business line holds, relative to its regulatory capital and other adjustments. The net residual impact of the FTP methodology is included within the results of Corporate and Other.
The information presented in our reportable operating segments is based in part on internal allocations and methodologies, including a COH methodology, which involves management judgment. COH methodology is used for measuring the profit and loss of our reportable operating segments. We have various enterprise functions, such as technology, marketing, finance, compliance, internal audit, and risk. Operating expenses from the enterprise functions are either directly allocated to the reportable operating segment, indirectly allocated to the reportable operating segment utilizing the COH methodology, or remain in Corporate and Other. COH methodology considers the reportable operating segment expense base and enterprise function expenses. The reportable operating segment expense base is used to determine the allocation mix. This mix is applied to the allocable expenses in Corporate and Other to determine the COH for the respective reportable operating segment. Allocable enterprise function costs are primarily technology, marketing expenses, and marketing sponsorships. Generally, costs that remain within Corporate and Other that are not allocated to our reportable operating segments include operating costs of deposits, treasury activities, and other corporate activities.
Financial information for our reportable operating segments is summarized as follows.
Three months ended March 31, ($ in millions)
Automotive Finance operationsInsurance operationsCorporate Finance operationsCorporate and OtherConsolidated (a)
2025
Net financing revenue and other interest income
Total financing revenue and other interest income$2,571 $44 $221 $557 $3,393 
Total interest expense1,065 14 117 479 1,675 
Net depreciation expense on operating lease assets240 — — — 240 
Net financing revenue and other interest income1,266 30 104 78 1,478 
Other revenue97 364 29 (427)63 
Total net revenue1,363 394 133 (349)1,541 
Provision for credit losses434 — 14 (257)191 
Noninterest expense
Compensation and benefits expense183 30 25 267 505 
Insurance losses and loss adjustment expenses— 161 — — 161 
Goodwill impairment— — — 305 305 
Other operating expenses
Technology and communications expenses29 5 1 68 103 
Other (b)342 196 17 5 560 
Total other operating expenses371 201 18 73 663 
Total noninterest expense554 392 43 645 1,634 
Income (loss) from continuing operations before income tax expense (benefit)$375 $2 $76 $(737)$(284)
Total assets$111,672 $9,489 $11,002 $61,168 $193,331 
2024
Net financing revenue and other interest income
Total financing revenue and other interest income$2,576 $39 $269 $698 $3,582 
Total interest expense1,010 13 149 750 1,922 
Net depreciation expense on operating lease assets192 — — — 192 
Net financing revenue and other interest income1,374 26 120 (52)1,468 
Other revenue97 384 23 26 530 
Total net revenue1,471 410 143 (26)1,998 
Provision for credit losses448 — (1)60 507 
Noninterest expense
Compensation and benefits expense178 28 27 286 519 
Insurance losses and loss adjustment expenses— 112 — — 112 
Other operating expenses
Technology and communications expenses32 5 1 68 106 
Other (b)333 195 16 27 571 
Total other operating expenses365 200 17 95 677 
Total noninterest expense543 340 44 381 1,308 
Income (loss) from continuing operations before income tax expense (benefit)$480 $70 $100 $(467)$183 
Total assets$114,464 $9,100 $10,410 $58,826 $192,800 
(a)Net financing revenue and other interest income after the provision for credit losses totaled $1.3 billion and $961 million for the three months ended March 31, 2025, and 2024, respectively.
(b)Primarily consists of insurance commissions, property and equipment depreciation, and advertising and marketing expenses. Refer to Note 6 for additional information.