Ally's profit rose 14 percent, and its auto loan losses fell even as applications hit a record

A record 4.6 million people applied to finance a car through Ally in the second quarter. The company wrote $13.3bn of consumer auto loans against that pool, up 21 percent year over year, and said 47 percent of the volume sat in its highest credit tier.

The profit followed. Ally reported GAAP earnings of $1.18 a share, up 14 percent from a year earlier, and adjusted earnings of $1.21, up 22 percent, in a Form 8-K exhibit filed July 21. Pre-tax income on a GAAP basis was $537m, up 23 percent, on total net revenue of $2.3bn. Return on common equity was 11.0 percent, and the core return on tangible common equity the company highlights was 11.8 percent.

The credit line is the one that matters for a lender growing this fast. Retail auto net charge-offs were 157 basis points, down 18 basis points from a year earlier, and the net interest margin excluding a debt-related adjustment widened to 3.63 percent, up 11 basis points from the prior quarter. The estimated yield on newly originated retail auto loans was 9.09 percent.

Chief Executive Michael Rhodes said the results "reflect the strength of our franchises and disciplined execution." Insurance written premiums rose 9 percent to $382m. Ally repurchased $148m of its shares during the quarter and reported a common equity tier 1 ratio of 10.1 percent.