Ally Financial Q3 Results Top Estimates; To Buy Fair Square Financial For $750 Mln Cash -Quick Facts

(RTTNews) - Ally Financial Inc. (ALLY), a bank holding company, reported Thursday that third-quarter net income attributable to shareholders increased to $683 million or $1.89 per share from $476 million or $1.26 per share in the year-ago quarter.

Excluding items, adjusted earnings for the quarter were $2.16 per share, compared to $1.25 per share in the prior-year quarter.

On average, 18 analysts polled by Thomson Reuters expected the company to report earnings of $1.95 per share for the quarter. Analysts' estimates typically exclude special items.

Total net revenue for the quarter grew 18 percent to $1.99 billion from $1.68 billion in the year-ago quarter. Adjusted total net revenue increased 26 percent from last year to $2.11 billion. Analysts expected revenue of $2.02 billion for the quarter.

Ally Financial said its board of directors approved a $0.25 per share common dividend for the fourth quarter of 2021.

Additionally, Ally has entered into a definitive agreement to acquire Fair Square Financial for $750 million in an all-cash transaction. The transaction, unanimously approved by Ally's board of directors, is expected to close by the end of the first quarter 2022. Ally expects thetransaction to further enhance profitability and risk-adjusted returns.