Detroit-based Ally Financial said Tuesday its profits fell 57 percent in the first three months of this year compared with the same period last year, when the bank’s financial results were boosted from the sale of a Chinese auto finance joint venture.
Ally, whose CEO is based in Charlotte, reported $250 million in net income, compared with $576 million in the first quarter of last year. Adjusted earnings per share were 52 cents, 1 cent lower than analyst estimates compiled by Bloomberg.
The company’s results in the same period last year included a gain of $397 million in connection with discontinuing the Chinese operation.
Ally’s shares were down less than 1 percent to $18.31 in morning trading.
Ally operates online-online Ally Bank, but the former financing arm of General Motors Co. is also a large player in the auto-finance industry.
Early last year, Ally suffered a setback when it lost an exclusive leasing arrangement with General Motors. In the most recent quarter, Ally said auto-loan originations fell to $9 billion from $9.8 billion a year ago. Excluding the General Motors business, originations grew 10 percent.
CEO Jeffrey Brown, named to his post in February 2015, has been pushing to add new revenue sources, including announcing plans last year to add consumer credit cards and mortgages to the company’s offerings.
“Ally’s first-quarter results demonstrate the strengths of our operations and highlight the significant progress made to further diversify and grow as a leader in digital financial services,” Brown said in a statement.
In the latest quarter, Ally’s revenue of $1.33 billion was 22 percent higher from a year earlier, as the company grew loans and deposits. Revenue missed analyst expectations of $1.35 billion.
Ally employs about 800 people in Charlotte.