Ally Financial reported first quarter net income up by almost $800 million to $1.1 billion on one-time gain.
Ally Financial announced that its core pre-tax loss reached $6 million during the first quarter from $111 million during the same period last year. Net income for Q1 was increased thanks to a $900 million gain after the sale of discontinued operations related to the closing of the Canadian operations transaction.
“The first four months of the year reflected significant progress on the strategic transformation of Ally, ” said Chief Executive Officer Michael Carpenter. “The majority of the international businesses have been sold, and Ally received more than 70 percent of the total expected proceeds. In addition, Ally has exited the remaining mortgage businesses through the sales of the mortgage servicing rights and the business lending operation.”
The US Treasury still owns 74% of the company, part of the $17.2 billion bailout. Until now it has recovered $5.8 billion and Ally has two possibilities to return the rest of the money: through the sale of international operations to the Treasury or by launching an IPO. In April the company announced it has sold almost all its operations in Latin America and Europe to GM.
Source: The Detroit News