From “Ally Financial: Moving Pieces” (April 2023): “The storm clouds have not passed. The combination of normalized credit losses and NIM pressures (along with broader concerns in the banking industry following the events of March 2023) has clearly led to a more defensive tone / posture from management… While I believe Ally is positioned to navigate through the present storm, the next 12-18 months are unlikely to be a walk in the park.”

Following a difficult year for Ally, we can now see the light at the end of the tunnel; headwinds on credit quality and the asset yield / funding cost spread (NIM’s) are likely to become tailwinds in a few quarters. In addition, industry turmoil in 2023 presented an encouraging sign on the role that Ally serves for retail customers, as well as for their ability to effectively grow deposits.