Ally Financial reports profit in line with expectations

Ally Financial reported earnings Thursday of $268 million for the third quarter, in line with expectations.

The Detroit-based lender, which has a major Charlotte presence, reported a profit of 47 cents on a per-share basis. Adjusted for nonrecurring costs and to account for discontinued operations, earnings were 51 cents a share.

The results met Wall Street expectations. The average estimate of eight analysts surveyed by Zacks Investment Research was also for earnings of 51 cents per share.

The auto finance company and bank posted revenue of $1.31 billion in the period, which missed Wall Street forecasts. Four analysts surveyed by Zacks expected $1.32 billion.

Earlier this year, Ally lost a lucrative lease agreement with former parent company General Motors. The loss has contributed to the lender reporting weaker auto loan originations that it has attempted to offset with other businesses like commercial lending.

Ally considers Charlotte one of its three corporate centers, in addition to Detroit and New York. It has started conducting its quarterly conference calls to discuss earnings with analysts in Charlotte as well.

The company employs roughly 800 people in Charlotte, mostly at its South Church Street tower. Chief Executive Officer Jeffrey Brown is based in Charlotte, as is Christopher Halmy, the bank’s chief financial officer.

Ally Financial shares have dropped 12 percent since the beginning of the year. The stock has dropped almost 7 percent in the last 12 months.

The Associated Press contributed.

This story was originally published October 29, 2015 at 9:51 AM with the headline "Ally Financial reports profit in line with expectations."