Ally Financial beats by $0.21, beats on revs; to sell its credit card business to CardWorks
- Reports Q4 (Dec) earnings of $0.78 per share, excluding non-recurring items, $0.21 better than the FactSet Consensus of $0.57; adjusted revenues rose 3.6% year/year to $2.09 bln vs the $2.02 bln FactSet Consensus.
- Also, co and CardWorks announce that they have entered into a definitive agreement for CardWorks, and its wholly-owned bank subsidiary, Merrick Bank, to acquire Ally's credit card business, including a portfolio of $2.3 bln in credit card receivables with 1.3 mln active cardholders as of Dec. 31, 2024.
- "Ally's decision to sell its credit card business is part of our broader strategy to pursue a more focused approach, enabling us to simplify and streamline our structure, prioritize our core businesses, and drive improved returns," said Ally CEO Michael Rhodes. The transaction is expected to close in 2025, subject to the completion of customary closing conditions.
- Co says the sale enables Ally to be more focused on its core businesses; acquisition enhances CardWorks' position as a leading credit card issuer and servicer.
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