Ally Financial 1Q net income more than triples
Ally Financial 1Q profit more than triples, buoyed by big gain on sale of Canadian operations
NEW YORK (AP) -- Ally Financial's first-quarter net income more than tripled as it recorded a large gain on the sale of its Canadian operations.
Ally, the former finance arm of automaker General Motors, now operates as an auto finance company and bank. It remains 74 percent government-owned after a bailout. The company has completed the sale of most of its international businesses to help generate cash to pay back its government loans.
Ally said last month that it closed on the sale of most of its operations in Europe and Latin America to General Motors Financial Co., a GM subsidiary. Ally received total proceeds of about $2.6 billion. The company said it's received approximately $6.7 in proceeds to date from completed sales of international businesses.
For the quarter, the company's net income jumped to $1.09 billion from $310 million. The current quarter included an approximately $900 million gain on the Canadian operations sale.
Automotive finance income climbed to $343 million from $241 million, while the insurance unit's income fell to $61 million from $100 million.
Ally Financial Inc. reported a $6 million loss from continuing operations for its mortgage division, compared with $63 million in income in the prior-year period. During the quarter, the company completed the sale of its mortgage-servicing portfolio, which involves collecting payments from home loan borrowers.
Ally Bank's retail deposits rose to $38.8 billion from $35.1 billion — the highest quarterly growth in four years.
