Ally Financial Stock Surges as Company Beats Profit Estimates, Sells Credit Card Business | Global News Avenue

Woori Financial (allyThe financial company’s shares soared Wednesday after it reported fourth-quarter profit and revenue that beat estimates and announced a sale of its credit card business as it cut costs.

All-digital banks and car loan providers issue adjustments earnings per share Fourth-quarter revenue fell 78 cents year-over-year, with revenue down 2.4% year-on-year to $2.03 billion. Both figures beat analysts’ expectations compiled by Visible Alpha.

CEO Michael Rhodes said the company “took significant actions” during the quarter, reducing its workforce, switching to a deferred accounting method for electric vehicle leases and “making significant changes to the company’s expense allocation and reporting segment.” Changes were made.”

Ally also said that credit card and payments company CardWorks and its wholly-owned subsidiary Merrick Bank will acquire its credit card business for an undisclosed amount. Ally noted that as of Dec. 31, the company had a $2.3 billion credit card receivables portfolio with 1.3 million active cardholders.

Rhodes said the move was “part of our broader strategy to pursue a more focused approach, allowing us to simplify and streamline our structure, prioritize our core business and improve returns.”

CardWorks CEO Dan Pillemer added that the acquisition expands the company’s near-prime credit card business. The deal is expected to close this year.

Ally Financial shares rose more than 4% to $39.84 Wednesday and are up about 11% so far this year.