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- Once US Treasury is paid off, the company will have more flexibility to grow Ally Bank and enhance profitability.
- Regulation normalization and net interest margin expansion will drive returns on equity to double digits over the next several years.
- The focus on the core business reducing non-interest expenses will help expand operating margins.
- Moving from captive to market-driven financing firm increases the flexibility to grow market share.
- Ratings upgrade and flexibility should reduce interest expense and improve profitability.
- Company's new policy focuses on digging deep and not wide.
- ALLY plans to exit TARP soon and undertake robust policies to drive underlying margins.
- GM's acquisition of AmeriCredit poses a significant challenge to ALLY in the medium term.
- Formerly known as GMAC, Ally Financial suffers from suboptimal profitability.
- This makes Ally not appealing despite trading around its Tier-1 capital.
- Regulation, reliance on key OEMs and past memories limit appeal.
- Bankruptcy plan became effective on December 17, 2013.
- Top line revenue grew 10% 2013 vs 2012, net income before tax benefit declined 70%.
- In a slow growth market.
- ALLY, a global provider of automotive finance products and consumer banking, plans to raise $2.5 billion in its upcoming IPO.
- ALLY plans to offer 95 million shares at an expected price range of $25-$28 per share, aiming for a market value of $12.8 billion.
- Given ALLY’s strong underwriting, huge profits, and impressive leadership, we recommend investors consider buying into ALLY’s IPO.