The company’s core pre-tax income, which includes income from continuing operations before taxes and original issue discount (OID) amortization expense primarily from bond exchanges, stood at $474m, versus $425m in comparable first quarter of last year.
According to the company, its solid performance in the first quarter was backed by sustained positive and stable results in the Global Automotive Services business reflecting improved revenue trends from a broader mix of business.
Ally chief executive officer Michael Carpenter said Ally’s auto finance business continues to see earning asset growth even amid one of the most competitive periods for auto financing assets.
"The Ally Bank franchise is gaining momentum in the marketplace, and we crossed a key threshold of exceeding one million customer accounts in the first quarter, which is an increase of about 30 percent year-over-year," Carpenter added.
Ally Bank quarterly result, which includes North American Automotive Finance, Mortgage Operations and Corporate and Other, reported pre-tax income of $349m, compared to $247m in the corresponding quarter of prior year period.
Global Automotive Services segment comprises Ally’s auto-centric businesses, including North American Automotive Finance, International Automotive Finance and Insurance registered first quarter 2012 pre-tax income from continuing operations of $611m, against $680m in during the same period a year ago.
Ally’s Mortgage Operations, which includes ResCap and the mortgage activities of Ally Bank, has two segments namely Origination and Servicing, and Legacy Portfolio and Other.
For the current quarter period, the origination and servicing segment pre-tax income from continuing operations stood at $217m, compared to a pre-tax income of $85m during the first quarter of last fiscal.
The legacy portfolio and other segment of mortgage operations reported a pre-tax loss from continuing operations of $26m in the first quarter ended on 31 March 2012, versus a pre-tax loss from continuing operations of $42m during the corresponding quarter of 2011.
