Ally Financial Q1 earnings beat Wall Street estimates

Charlotte-based Ally Financial reported first quarter earnings Tuesday that more than doubled over the past year thanks to a $400 million after-tax gain related to the sale of a Chinese company in January.

For the three months that ended March 31, Ally posted a net income of $576 million, or $1.06 a share, which is up from $227 million, or 33 cents a share, over the same period in 2014.

On an adjusted basis, first quarter earnings were 52 cents a share, which is above the consensus estimate of Bloomberg-surveyed analysts, who called for earnings of 41 cents a share.

Ally completed the $1 billion sale of its 40 percent stake in the joint venture, SAIC-GMAC Automotive Finance Company Limited, to GM in January and said at the time it expected the sale to boost quarterly profits by about $400 million, Reuters reported.

“First quarter results demonstrate that our efforts to diversify and expand our leading franchises, while improving shareholder returns, are already making significant inroads,” Ally CEO Jeffrey Brown said in a statement.

Ally, the largest U.S. auto lender, is formerly the financing arm of General Motors.

Ally employs roughly 800 people in the Charlotte area, where it has had a presence since 2009. The lender recently said it’s moving into new headquarters in Detroit, though the move will have no impact on Ally’s employment in Charlotte.

This story was originally published April 28, 2015 at 9:02 AM with the headline "Ally Financial Q1 earnings beat Wall Street estimates."