NEW YORK (Reuters) - Ally Financial Inc., the former General Motors Acceptance Corp., posted lower quarterly profit, hurt by bad mortgages made prior to the housing crisis.
Ally said that it earned $ 146 million in the first quarter compared to $ 162 million a year earlier, when he was still known as GMAC.
The company has lost its portfolio of mortgage loans inherited, before taxes, compared to a gain of $ 85 million in the same quarter year last of 39 million.
"We expect profitability to improve over time," said Michael Carpenter, Chief Executive, citing the decline in financing costs and a better mix of loans.
Reduce its funding costs, alloy grows its deposit base 40.7 billion to 39 billion at the end of December and 32.9 billion a year ago. The company booked 14.3 billion in new loans for consumption, an increase of 75% by the same quarter of last year, according to the Declaration.
Ally, majority owned by the Government of the United States, March 31, filed a prospectus for an initial public offer, to allow us Treasury begin to sell its 73.8% stake in the company.
Taxpayers injected more than $ 17 billion in Allied rescue in 2008 and 2009, after losing money on mortgage loans. The company is known for its heavily advertised brand name ditech.com.
Ally had more than 172 billion in assets at the end of December, making the US bank holding company 16th place, according to SNL Financial Research service.
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