Segment Information

6 Months Ended

Jun. 30, 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 Private Credit Finance business, asset managers and other financing sources 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 ceased 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 June 30, ($ in millions)	Automotive Finance operations		Insurance operations		Corporate Finance operations		Corporate and Other		Consolidated (a)
2025
Net financing revenue and other interest income
Total financing revenue and other interest income	$	2,603	$	45	$	233	$	444	$	3,325
Total interest expense	1,093		15		125		360		1,593
Net depreciation expense on operating lease assets	216		—		—		—		216
Net financing revenue and other interest income	1,294		30		108		84		1,516
Other revenue	97		422		19		28		566
Total net revenue	1,391		452		127		112		2,082
Provision for credit losses	387		—		(2)		(1)		384
Noninterest expense
Compensation and benefits expense	166		26		19		219		430
Insurance losses and loss adjustment expenses	—		203		—		—		203
Other operating expenses
Technology and communications expenses	30		4		1		66		101
Other (b)	336		191		13		(12)		528
Total other operating expenses	366		195		14		54		629
Total noninterest expense	532		424		33		273		1,262
Income (loss) from continuing operations before income tax expense (benefit)	$	472	$	28	$	96	$	(160)	$	436
Total assets	$	111,709	$	9,705	$	11,040	$	57,019	$	189,473
2024
Net financing revenue and other interest income
Total financing revenue and other interest income	$	2,606	$	41	$	252	$	639	$	3,538
Total interest expense	1,065		14		140		647		1,866
Net depreciation expense on operating lease assets	155		—		—		—		155
Net financing revenue and other interest income	1,386		27		112		(8)		1,517
Other revenue	93		338		30		44		505
Total net revenue	1,479		365		142		36		2,022
Provision for credit losses	383		—		3		71		457
Noninterest expense
Compensation and benefits expense	160		26		17		239		442
Insurance losses and loss adjustment expenses	—		181		—		—		181
Other operating expenses
Technology and communications expenses	31		4		2		66		103
Other (b)	321		194		11		34		560
Total other operating expenses	352		198		13		100		663
Total noninterest expense	512		405		30		339		1,286
Income (loss) from continuing operations before income tax expense (benefit)	$	584	$	(40)	$	109	$	(374)	$	279
Total assets	$	115,524	$	9,174	$	9,869	$	57,812	$	192,379

(a)Net financing revenue and other interest income after the provision for credit losses totaled $1.1 billion for both the three months ended June 30, 2025, and 2024.

(b)Primarily consists of insurance commissions, advertising and marketing, and property and equipment depreciation expenses. Refer to Note 6 for additional information.

Six months ended June 30, ($ in millions)	Automotive Finance operations		Insurance operations		Corporate Finance operations		Corporate and Other		Consolidated (a)
2025
Net financing revenue and other interest income
Total financing revenue and other interest income	$	5,174	$	89	$	454	$	1,001	$	6,718
Total interest expense	2,158		29		242		839		3,268
Net depreciation expense on operating lease assets	456		—		—		—		456
Net financing revenue and other interest income	2,560		60		212		162		2,994
Other revenue	194		786		48		(399)		629
Total net revenue	2,754		846		260		(237)		3,623
Provision for credit losses	821		—		12		(258)		575
Noninterest expense
Compensation and benefits expense	349		56		44		486		935
Insurance losses and loss adjustment expenses	—		364		—		—		364
Goodwill impairment	—		—		—		305		305
Other operating expenses
Technology and communications expenses	59		9		2		134		204
Other (b)	678		387		30		(7)		1,088
Total other operating expenses	737		396		32		127		1,292
Total noninterest expense	1,086		816		76		918		2,896
Income (loss) from continuing operations before income tax expense (benefit)	$	847	$	30	$	172	$	(897)	$	152
Total assets	$	111,709	$	9,705	$	11,040	$	57,019	$	189,473
2024
Net financing revenue and other interest income
Total financing revenue and other interest income	$	5,182	$	80	$	521	$	1,337	$	7,120
Total interest expense	2,075		27		289		1,397		3,788
Net depreciation expense on operating lease assets	347		—		—		—		347
Net financing revenue and other interest income	2,760		53		232		(60)		2,985
Other revenue	190		722		53		70		1,035
Total net revenue	2,950		775		285		10		4,020
Provision for credit losses	831		—		2		131		964
Noninterest expense
Compensation and benefits expense	338		54		44		525		961
Insurance losses and loss adjustment expenses	—		293		—		—		293
Other operating expenses
Technology and communications expenses	63		9		3		134		209
Other (b)	654		389		27		61		1,131
Total other operating expenses	717		398		30		195		1,340
Total noninterest expense	1,055		745		74		720		2,594
Income (loss) from continuing operations before income tax expense (benefit)	$	1,064	$	30	$	209	$	(841)	$	462
Total assets	$	115,524	$	9,174	$	9,869	$	57,812	$	192,379

(a)Net financing revenue and other interest income after the provision for credit losses totaled $2.4 billion and $2.0 billion for the six months ended June 30, 2025, and 2024, respectively.

(b)Primarily consists of insurance commissions, advertising and marketing, and property and equipment depreciation expenses. Refer to Note 6 for additional information.