CHARLOTTE, N.C. - Ally Financial Inc. (NYSE: NYSE:ALLY), a leader in digital financial services, has named Michael G. Rhodes as its new Chief Executive Officer, effective April 29, 2024. Rhodes will also join the company's board of directors on the same date.
Rhodes, with over a quarter-century of experience in consumer banking, is joining Ally from Discover Financial Services (NYSE:DFS) where he served as CEO and a board member. He has a strong track record in implementing digital, data, and technology strategies. His previous roles include positions at TD Bank, Bank of America (NYSE:BAC), and MBNA America Bank, showcasing his extensive background in retail and consumer banking.
Franklin Hobbs, Ally's Board Chairman, expressed confidence in Rhodes's ability to lead the company into its next phase, citing his versatile banking experience and commitment to stockholder value. Hobbs also emphasized Rhodes's understanding of the importance of a motivated workforce and positive workplace culture.
Rhodes succeeds Jeffrey J. Brown, who stepped down as CEO at the end of January 2024. Since then, Doug Timmerman has been acting as interim CEO. Rhodes's appointment comes as Ally continues to emphasize its "Do It Right" philosophy, aiming to provide innovative financial solutions to its customers and communities.
Ally Financial serves approximately 11 million customers and is recognized as the nation's largest all-digital bank. It offers a full range of online banking services, securities brokerage, investment advisory services, corporate finance, as well as auto financing and insurance offerings.
This announcement is based on a press release statement from Ally Financial. Rhodes's leadership is anticipated to further Ally's strategic goals and maintain its position in the digital banking and auto finance sectors.
InvestingPro Insights
As Ally Financial Inc. (NYSE: ALLY) welcomes Michael G. Rhodes as the new Chief Executive Officer, the company's financial health and market performance remain key areas of interest for investors. InvestingPro data paints a comprehensive picture of Ally's current standing.
With a market capitalization of $12.09 billion, Ally is maintaining its substantial presence in the financial sector. Despite a challenging environment, the company has shown resilience with a P/E ratio of 13.21, reflecting investor confidence in its earnings potential.
InvestingPro Tips highlight that Ally has been profitable over the last twelve months, which aligns with analysts' predictions that the company will continue to be profitable this year. This is a testament to the company's robust business model and could be a positive sign for Rhodes as he steps into his leadership role.
Moreover, Ally has demonstrated a strong performance with a large price uptick of 51.28% over the last six months, and an impressive one-year price total return of 68.76%, underscoring its growth trajectory and market confidence.
Investors should note that Ally has maintained dividend payments for 9 consecutive years, with a current dividend yield of 3.06%. This consistent return to shareholders may be particularly attractive in an uncertain market, adding a layer of stability to the investment.
For those seeking further insights and additional InvestingPro Tips, including the impact of recent analyst earnings revisions and the company's gross profit margins, you can explore more at https://www.investing.com/pro/ALLY. Discover a total of 7 additional tips and use the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription.
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