Ally Financial Swings to Profit for Third Quarter
Ally Financial Inc., the auto lender 74 percent-owned by the U.S. government, swung to a third-quarter profit, helped by its strong auto-lending and mortgage businesses.
Reuters reported that the Detroit-based lender said it earned $384 million in the quarter, compared with a loss of $210 million a year earlier. Ally entered the RV lending market in June of 2010.
The company’s mortgage operations, excluding Residential Capital, reported a pre-tax income of $354 million, compared to just $13 million a year ago.
The residential capital mortgage unit filed for Chapter 11 bankruptcy protection on May 14 to insulate the parent company from mortgage liabilities.
U.S. automotive earning assets rose 21% in the quarter and net financing revenue was up 22% in the United States.
Ally, previously known as GMAC Financial, was once the auto lending arm of what is now General Motors Co.
The company received $17 billion in bailouts from the U.S. government during the financial crisis and has been selling assets to repay the money.