Ally Financial board OKs up to $1.6B share repurchase authorization

Based on results of the Federal Reserve Board stress test process in December 2020, Ally Financial Inc.'s board authorized the company to buy back up to $1.60 billion of the company's common stock in 2021.

The company will start repurchasing shares in the first quarter, in accordance with the Fed's modified restrictions that limit combined repurchases and common dividends to an amount that does not exceed the average net income of the four preceding calendar quarters.

In addition, the board declared a quarterly cash dividend of 19 cents per common share. The dividend will be paid Feb. 12 to stockholders of record Feb. 1.