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Ally Financial capital ratios exceed regulatory minimums under stress test

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Ally Financial capital ratios exceed regulatory minimums under stress test

Ally Financial Inc. projected a pretax net loss of $2.9 billion during the hypothetical nine-quarter horizon factored into the Dodd-Frank Act mid-cycle stress test's severely adverse situation.

Due to the severity of the scenario, the company expects light vehicle sales to fall, leading to reduced future industry revenue opportunities from retail and lease originations, on top of lower dealer floorplan financing.

The company's projected capital ratios under the scenario exceeded regulatory minimums during the period.

Ally Financial's common equity Tier 1 ratio under the severely adverse scenario is projected to be 8.5%, compared with the required minimum of 7.8%.

The Tier 1 capital ratio is expected to be 10.8%, compared with the required minimum of 9.6%. Its minimum total risk-based capital ratio is expected to be 13.2%, compared with the required minimum of 11.7%.

Ally Financial's Tier 1 leverage ratio is projected to be 8.8%, compared with the required 7.9% minimum.

The company reported results for an earlier testing horizon in June.