Ally Financial Inc. on Tuesday reported a jump in net income in the second quarter after the auto lender redeemed preferred shares that carried a high dividend.
Detroit-based Ally Financial, which has one of its employee hubs in Charlotte, posted a profit available to common shareholder of $345 million, compared with a loss of $1.1 billion a year ago, when it had preferred dividend payments of $1.3 billion.
Earnings per share jumped to 71 cents from a loss of $2.22 last year. Adjusted earnings per share rose to 54 cents from 46 cents.
Total net revenue also increased to $1.36 billion in the second quarter from $1.12 billion in the second quarter of 2015.
Ally’s results exceeded analyst expectations of adjusted earnings per share of 51 cents and total revenue of $1.3 billion, according to forecasts compiled by Thomson Reuters.
“For the second quarter, Ally posted solid results with improved profitability, strong credit performance and considerable year-over-year improvements to both earnings per share and adjusted EPS,” CEO Jeff Brown, who is based in Charlotte, said in a statement.
In a sign of its recovery from a financial crisis-era bailout, Ally’s board during the quarter approved its first-ever quarterly dividend of 8 cents per share and a $700 million share repurchase program. The move came after the Federal Reserve approved its capital plan following annual stress tests of big banks.
Last month, the company finalized its acquisition of the Florida online broker TradeKing Group for $275 million, which will increase the number of employees at its Charlotte office to 900.