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NEW YORK - Ally Financial Inc. reported net income of $565 million for the second quarter of 2010, compared to a net loss of $3.9 billion for the second quarter of 2009.
Core pre-tax income, which reflects income from continuing operations before taxes and original issue discount (OID) amortization expense from bond exchanges, totaled $738 million in the second quarter of 2010, compared to a core pre-tax loss of $1.3 billion in the comparable prior year period.
Core pre-tax income during the quarter was driven by higher net revenue, a lower loan loss provision and a lower noninterest expense compared to the second quarter of 2009. Results were also positively impacted by certain factors that may moderate over the coming quarters, including gains on the sale of auto loans under forward flow agreements, lease portfolio remarketing gains resulting from high used vehicle prices, legacy mortgage loan sale gains and gains from the insurance investment portfolio.
"Ally made substantial progress in the second quarter with all operating segments posting a profit," said Ally CEO Michael A. Carpenter. "Ally is a fundamentally stronger organization today than it was a year ago, and we are proud of our central role in the recovery of the U.S. auto industry. As a result of Ally's quick action and the U.S. government's financial support, approximately 1,400 Chrysler dealers, employing an estimated 70,000 people, were able to keep their businesses open and contribute to the stability of their communities.
"Over the past 12 months, Ally has financed 82 percent of the vehicles sold to nearly 5,000 GM and Chrysler dealers in the U.S. In addition, the company financed 700,000 new vehicles for GM and Chrysler consumers within the last year," Carpenter added.
"In the first half of 2010, Ally's new consumer auto originations in the U.S. more than doubled compared to the first two quarters of last year to about 400,000 units, reflecting about eight times that of any other lender and demonstrating the company's leadership as a full service auto finance provider," he concluded.
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