Ally Financial Had a Good Quarter, but Is the Credit Card Sale a Positive or a Negative?

Ally Financial (NYSE: ALLY) is a bank. But it isn't your typical bank by any stretch of the imagination, given that it is highly focused on the auto lending space. That focus is increasingly in focus as management executes a business overhaul. This brings up some big news from the fourth-quarter earnings release: the sale of Ally's credit card business.Ally Financial was created when it was spun off of General Motors. Prior to the 2014 spinoff, it was GM's financing arm. So it shouldn't be surprising to find out that auto loans are a massive part of Ally Financial's business even to this day, making up roughly 60% of the bank's loan book at the end of 2024. That is a far greater percentage than you'll find at most banks.Image source: Getty Images.Continue readingWeiter zum vollständigen Artikel bei MotleyFool Weiter zum vollständigen Artikel bei MotleyFool