Is ALLY financially stable?

Stable Funding and Liquidity have been key strengths for Ally since the pandemic. The gross loans to deposits ratio has improved significantly, reaching 90%. This represents a notable increase in the efficiency of the company's funding structure.

Notably, 92% of Ally's deposits are FDIC-insured. The Federal Deposit Insurance Corporation (FDIC) is an independent agency of the United States government that protects depositors against the loss of their insured deposits if an FDIC-insured bank or savings association fails. This high level of insurance coverage adds an extra layer of security for Ally's depositors.

Pre-pandemic, Ally's deposits accounted for 75% of its funding. However, post-pandemic, this figure has risen to 87%. This shift indicates a stronger reliance on deposits as a source of funding, which is generally considered a lower-risk option.

The improved funding mix has provided Ally with headroom in its rating category. This means that the company has more financial flexibility and is better positioned to weather potential financial storms.

In Spring 2023, Ally witnessed a flight to quality among depositors. This refers to a situation where investors seek out safer, more stable investments in times of uncertainty. Despite this trend, Ally's deposit balances continued to grow.