Ally Financial Announces Strong Q3 2021 Financial Results and Acquisition of Fair Square Financial

The US financial services provider Ally Financial Inc. (Ally Financial), announced yesterday its another strong quarter of financial results, alongside with a definitive agreement to acquire Fair Square Financial (“FSF”).

In terms of Ally Financial’s financial metrics, the GAAP net income came in at $683 million in Q3, compared with that of last Q3 at $476 million. The GAAP total net revenue enjoyed a YoY increase of 18% to $1.99 billion. GAAP EPS reached 1.89 $, while the number of the same period of last was 1.26 $. And the net interest margin was 3.66%, up 101 bps year over year.

Ally Financial agreed to acquire FSF for $750 million in an all-cash transaction, which is expected to close by the end of the first quarter 2022. The deal will offer Ally Financial a scalable, digital-first credit card platform, and will enhance the firms ability to grow and deepen customer relationships and provide access to the $1 trillion credit card market.

"Our announcement to acquire Fair Square Financial – a digital-first credit card company – aligns with our long-term strategy to be the leading full-service digital-bank. The transaction enhances our ability to provide Ally’s growing customer base with the ability to save, spend, invest and borrow with differentiated-products. The addition of credit card complements our existing offerings, adding a growing, customer-focused product with attractive riskadjusted returns.