Ally Financial stock falls after it sees ‘tightened underwriting’ impacting retail auto loans and misses its Q1 earnings mark

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Ally Financial Inc. stock fell 3.5% in premarket trades after the auto and home lender said it expects 2023 retail auto originations to be on the lower end...

Ally Financial Inc.

stock fell 3.5% in premarket trades after the auto and home lender said it expects 2023 retail auto originations to be on the lower end of its estimated low-$40 billion range because of “tightened underwriting.” It also missed its first-quarter adjusted earnings target. Changes to its expected funding mix and lower retail auto loan originations will “put near-tern net interest margin under pressure,” the company said. Ally said it expects 2023 net interest margin of about 3.

stock fell 3.5% in premarket trades after the auto and home lender said it expects 2023 retail auto originations to be on the lower end of its estimated low-$40 billion range because of “tightened underwriting.” It also missed its first-quarter adjusted earnings target. Changes to its expected funding mix and lower retail auto loan originations will “put near-tern net interest margin under pressure,” the company said. Ally said it expects 2023 net interest margin of about 3.

 

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