Ally's Stock Drops as its CFO Says Consumers Are Struggling and Delinquencies Are Rising

Core Insights - Ally Financial's shares dropped significantly after the CFO indicated that the company's auto loan portfolio is facing challenges due to rising delinquencies and net charge-offs [1][2] - The CFO highlighted that consumers are struggling with inflation and a weakening employment situation, which has intensified credit challenges for Ally [1] Auto Loan Portfolio Performance - Delinquencies in Ally's auto loan segment rose by approximately 20 basis points above expectations over the last two months [3] - Net charge-offs were about 10 basis points higher than anticipated for July and August [3] - The company expects net charge-offs to continue increasing in the coming months due to a significant number of borrowers struggling, particularly those with loans over two months past due [3] Strategic Adjustments - Ally has reduced its exposure in the lending sector by selling its Ally Lending arm to Synchrony Financial earlier this year [3]