Ally Financial Inc.ALLY
Ally Financial Inc. Segments Disclosure
Segment Information
Operating segments are defined as components of an enterprise that engage in business activity from which revenues are earned and expenses incurred for which discrete financial information is available that is evaluated regularly by our CODM in deciding how to allocate resources and in assessing performance. We define our CODM as the CEO. The CODM uses pretax income to evaluate income generated from segment assets, and to assess a segment’s performance by comparing the results, relative to other segments. Additionally, the budgeting and forecasting process monitors budget versus actual results with emphasis on pretax income, which are also used in assessing the performance of a segment.
We report our results of operations on a business-line basis through three operating segments: Automotive Finance operations, Insurance operations, and Corporate Finance operations, with the remaining activity reported in Corporate and Other. The operating segments are
determined based on the products and services offered, and reflect the manner in which financial information is currently evaluated by our CODM and management. The following is a description of each of our reportable operating segments.
Dealer Financial Services
Dealer Financial Services comprises the following two segments.
•Automotive Finance operations — One of the largest full-service automotive finance operations in the United States providing automotive financing services to consumers, automotive dealers and retailers, companies, and municipalities. Our automotive finance services include providing retail installment sales contracts, loans and operating leases, offering term loans to dealers, financing dealer floorplans and other lines of credit to dealers, warehouse lines to automotive retailers, fleet financing, providing financing to companies and municipalities for the purchase or lease of vehicles, and vehicle-remarketing services.
•Insurance operations — A complementary automotive-focused business offering both consumer finance protection and insurance products sold primarily through the automotive dealer channel, and commercial insurance products sold directly to dealers. As part of our focus on offering dealers a broad range of consumer financial and insurance products, we provide VSCs, VMCs, and GAP products. We also underwrite select commercial insurance coverages, which primarily insure dealers’ vehicle inventory.
Corporate Finance operations
Our Corporate Finance operations provide senior secured asset-based and leveraged cash flow loans to primarily U.S.-based middle-market companies, with a focus on businesses owned by private equity sponsors. These loans are typically used for leveraged buyouts, refinancing and recapitalizations, mergers and acquisitions, growth, turnarounds, and debtor-in-possession financings. We also provide, through our Private Credit Finance business, asset managers and other financing sources with partial funding for their direct-lending activities, which is principally leveraged loans. We have a commercial real estate product primarily focused on lending to skilled nursing facilities, senior housing, and medical office buildings. Additionally, we have an energy and infrastructure vertical that finances large-scale energy and infrastructure projects.
Corporate and Other
Corporate and Other primarily consists of centralized corporate treasury activities, such as management of the cash and corporate investment securities and loan portfolios, short- and long-term debt, retail and brokered deposit liabilities, derivative instruments, original issue discount, and the residual impacts of our corporate FTP and treasury ALM activities. Corporate and Other also includes certain equity investments, which primarily consist of FHLB and FRB stock—as well as other equity investments through Ally Ventures, our strategic investment business, and reclassifications and eliminations between the reportable operating segments. Financial results related to Ally Invest, our digital brokerage and advisory offering, Ally Lending, Ally Credit Card, the management of our consumer mortgage portfolio, and CRA loans and investments are also included within Corporate and Other. Consumer mortgage originations ceased during the second quarter of 2025, which has and will continue to result in a gradual run-off of our consumer mortgage loan portfolio. Additionally, we closed the sales of Ally Credit Card on April 1, 2025, and Ally Lending on March 1, 2024. Refer to Note 2 for additional information on Ally Credit Card.
We utilize an FTP methodology for the majority of our business operations. The FTP methodology assigns charge rates and credit rates to classes of assets and liabilities on a match funded basis, utilizing a benchmark rate curve plus an assumed credit spread. The assumed credit spread is calculated based on a composite investment grade unsecured yield curve or based on advance rates published by the FHLB for any asset that is eligible to be pledged as collateral to the FHLB. While the baseline FTP components at Ally assume 100% debt funding, the methodology also incorporates a credit on the allocated capital for each business line based on the business line’s allocated cost of funding. For business lines not subject to an FTP funding allocation, the FTP methodology applies a capital charge to the amount of excess equity that the business line holds, relative to its regulatory capital and other adjustments. The net residual impact of the FTP methodology is included within the results of Corporate and Other.
The information presented in our reportable operating segments is based in part on internal allocations and methodologies, including a COH methodology, which involves management judgment. COH methodology is used for measuring the profit and loss of our reportable operating segments. We have various enterprise functions, such as technology, marketing, finance, compliance, internal audit, and risk. Operating expenses from the enterprise functions are either directly allocated to the reportable operating segment, indirectly allocated to the reportable operating segment utilizing the COH methodology, or remain in Corporate and Other. COH methodology considers the reportable operating segment expense base and enterprise function expenses. The reportable operating segment expense base is used to determine the allocation mix. This mix is applied to the allocable expenses in Corporate and Other to determine the COH for the respective reportable operating segment. Allocable enterprise function costs are primarily technology, marketing expenses, and marketing sponsorships. Generally, costs that remain within Corporate and Other that are not allocated to our reportable operating segments include operating costs of deposits, treasury activities, and other corporate activities.
Financial information for our reportable operating segments is summarized as follows.
Year ended December 31, 2025 ($ in millions) | Automotive Finance operations | Insurance operations | Corporate Finance operations | Corporate and Other | Consolidated (a) | |||||||||||||||||||||||||||
| Net financing revenue and other interest income | ||||||||||||||||||||||||||||||||
| Total financing revenue and other interest income | $ | 10,551 | $ | 188 | $ | 932 | $ | 1,850 | $ | 13,521 | ||||||||||||||||||||||
| Total interest expense | 4,431 | 59 | 498 | 1,420 | 6,408 | |||||||||||||||||||||||||||
| Net depreciation expense on operating lease assets | 937 | — | — | — | 937 | |||||||||||||||||||||||||||
| Net financing revenue and other interest income | 5,183 | 129 | 434 | 430 | 6,176 | |||||||||||||||||||||||||||
| Other revenue | 389 | 1,596 | 104 | (351) | 1,738 | |||||||||||||||||||||||||||
| Total net revenue | 5,572 | 1,725 | 538 | 79 | 7,914 | |||||||||||||||||||||||||||
| Provision for credit losses | 1,709 | — | 31 | (263) | 1,477 | |||||||||||||||||||||||||||
| Noninterest expense | ||||||||||||||||||||||||||||||||
| Compensation and benefits expense | 693 | 113 | 82 | 969 | 1,857 | |||||||||||||||||||||||||||
| Insurance losses and loss adjustment expenses | — | 616 | — | — | 616 | |||||||||||||||||||||||||||
| Goodwill impairment (b) | — | — | — | 305 | 305 | |||||||||||||||||||||||||||
| Other operating expenses | ||||||||||||||||||||||||||||||||
| Technology and communications expenses | 119 | 19 | 5 | 286 | 429 | |||||||||||||||||||||||||||
| Other (c) | 1,411 | 777 | 55 | (64) | 2,179 | |||||||||||||||||||||||||||
| Total other operating expenses | 1,530 | 796 | 60 | 222 | 2,608 | |||||||||||||||||||||||||||
| Total noninterest expense | 2,223 | 1,525 | 142 | 1,496 | 5,386 | |||||||||||||||||||||||||||
| Income (loss) from continuing operations before income tax expense (benefit) | $ | 1,640 | $ | 200 | $ | 365 | $ | (1,154) | $ | 1,051 | ||||||||||||||||||||||
| Total assets | $ | 115,753 | $ | 9,931 | $ | 12,989 | $ | 57,329 | $ | 196,002 | ||||||||||||||||||||||
(a)Net financing revenue and other interest income after the provision for credit losses totaled $4.7 billion for the year ended December 31, 2025.
(b)Impairment of goodwill related to Ally Credit Card for the year ended December 31, 2025. Refer to Note 13 for additional information.
(c)Primarily consists of insurance commissions, advertising and marketing, and property and equipment depreciation expenses. Refer to Note 7 for additional information.
Year ended December 31, 2024 ($ in millions) | Automotive Finance operations | Insurance operations | Corporate Finance operations | Corporate and Other | Consolidated (a) | |||||||||||||||||||||||||||
| Net financing revenue and other interest income | ||||||||||||||||||||||||||||||||
| Total financing revenue and other interest income | $ | 10,473 | $ | 168 | $ | 1,006 | $ | 2,575 | $ | 14,222 | ||||||||||||||||||||||
| Total interest expense | 4,266 | 54 | 550 | 2,602 | 7,472 | |||||||||||||||||||||||||||
| Net depreciation expense on operating lease assets | 736 | — | — | — | 736 | |||||||||||||||||||||||||||
| Net financing revenue and other interest income | 5,471 | 114 | 456 | (27) | 6,014 | |||||||||||||||||||||||||||
| Other revenue | 363 | 1,507 | 123 | 174 | 2,167 | |||||||||||||||||||||||||||
| Total net revenue | 5,834 | 1,621 | 579 | 147 | 8,181 | |||||||||||||||||||||||||||
| Provision for credit losses | 1,905 | — | 8 | 253 | 2,166 | |||||||||||||||||||||||||||
| Noninterest expense | ||||||||||||||||||||||||||||||||
| Compensation and benefits expense | 668 | 108 | 80 | 986 | 1,842 | |||||||||||||||||||||||||||
| Insurance losses and loss adjustment expenses | — | 544 | — | — | 544 | |||||||||||||||||||||||||||
| Goodwill impairment (b) | — | — | — | 118 | 118 | |||||||||||||||||||||||||||
| Other operating expenses | ||||||||||||||||||||||||||||||||
| Technology and communications expenses | 129 | 19 | 5 | 285 | 438 | |||||||||||||||||||||||||||
| Other (c) | 1,316 | 782 | 52 | 87 | 2,237 | |||||||||||||||||||||||||||
| Total other operating expenses | 1,445 | 801 | 57 | 372 | 2,675 | |||||||||||||||||||||||||||
| Total noninterest expense | 2,113 | 1,453 | 137 | 1,476 | 5,179 | |||||||||||||||||||||||||||
| Income (loss) from continuing operations before income tax expense (benefit) | $ | 1,816 | $ | 168 | $ | 434 | $ | (1,582) | $ | 836 | ||||||||||||||||||||||
| Total assets | $ | 113,057 | $ | 9,325 | $ | 9,704 | $ | 59,750 | $ | 191,836 | ||||||||||||||||||||||
(a)Net financing revenue and other interest income after the provision for credit losses totaled $3.8 billion for the year ended December 31, 2024.
(b)Impairment of goodwill related to Ally Credit Card for the year ended December 31, 2024. Refer to Note 13 for additional information.
(c)Primarily consists of insurance commissions, advertising and marketing, and property and equipment depreciation expenses. Refer to Note 7 for additional information.
Year ended December 31, 2023 ($ in millions) | Automotive Finance operations | Insurance operations | Corporate Finance operations | Corporate and Other | Consolidated (a) | |||||||||||||||||||||||||||
| Net financing revenue and other interest income | ||||||||||||||||||||||||||||||||
| Total financing revenue and other interest income | $ | 9,721 | $ | 149 | $ | 980 | $ | 3,108 | $ | 13,958 | ||||||||||||||||||||||
| Total interest expense | 3,364 | 45 | 550 | 2,938 | 6,897 | |||||||||||||||||||||||||||
| Net depreciation expense on operating lease assets | 840 | — | — | — | 840 | |||||||||||||||||||||||||||
| Net financing revenue and other interest income | 5,517 | 104 | 430 | 170 | 6,221 | |||||||||||||||||||||||||||
| Other revenue | 321 | 1,428 | 104 | 160 | 2,013 | |||||||||||||||||||||||||||
| Total net revenue | 5,838 | 1,532 | 534 | 330 | 8,234 | |||||||||||||||||||||||||||
| Provision for credit losses | 1,618 | — | 52 | 298 | 1,968 | |||||||||||||||||||||||||||
| Noninterest expense | ||||||||||||||||||||||||||||||||
| Compensation and benefits expense | 668 | 108 | 78 | 1,047 | 1,901 | |||||||||||||||||||||||||||
| Insurance losses and loss adjustment expenses | — | 422 | — | — | 422 | |||||||||||||||||||||||||||
| Goodwill impairment (b) | — | — | — | 149 | 149 | |||||||||||||||||||||||||||
| Other operating expenses | ||||||||||||||||||||||||||||||||
| Technology and communications expenses | 126 | 18 | 5 | 287 | 436 | |||||||||||||||||||||||||||
| Other (c) | 1,212 | 768 | 45 | 230 | 2,255 | |||||||||||||||||||||||||||
| Total other operating expenses | 1,338 | 786 | 50 | 517 | 2,691 | |||||||||||||||||||||||||||
| Total noninterest expense | 2,006 | 1,316 | 128 | 1,713 | 5,163 | |||||||||||||||||||||||||||
| Income (loss) from continuing operations before income tax expense (benefit) | $ | 2,214 | $ | 216 | $ | 354 | $ | (1,681) | $ | 1,103 | ||||||||||||||||||||||
| Total assets | $ | 115,301 | $ | 9,081 | $ | 11,212 | $ | 60,735 | $ | 196,329 | ||||||||||||||||||||||
(a)Net financing revenue and other interest income after the provision for credit losses totaled $4.3 billion for the year ended December 31, 2023.
(b)Impairment of goodwill related to Ally Lending for the year ended December 31, 2023.
(c)Primarily consists of insurance commissions, advertising and marketing, and lease and loan administration expenses. Refer to Note 7 for additional information.
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Feb 25, 2026 | Showing above |
| 2024 | Feb 19, 2025 | |
| 2023 | Feb 20, 2024 | |
| 2022 | Feb 24, 2023 | |
| 2021 | Feb 25, 2022 | |
| 2020 | Feb 24, 2021 | |
| 2019 | Feb 25, 2020 | |
| 2018 | Feb 20, 2019 | |
| 2017 | Feb 21, 2018 | |
About Segments Disclosures
Segment disclosures break a company into its reportable operating units, revealing revenue, profit, and asset allocation that consolidated financial statements obscure. Under ASC 280, segments must match how the chief operating decision maker views the business, providing a window into internal management structure and resource allocation priorities.
Key signals: compare segment margins to identify which units drive profitability and which destroy value. Watch for changes in the number of reportable segments — segment aggregation or disaggregation often coincides with strategic shifts or attempts to obscure declining performance. Intersegment elimination patterns reveal internal pricing practices. The reconciliation between segment totals and consolidated figures exposes corporate overhead allocation and unallocated items. Geographic revenue concentration highlights regulatory and currency exposure. Compare segment-level capital expenditure against segment revenue to assess where management is investing for future growth versus harvesting existing assets.