TradeKing contributes $31m to FY2016 revenues of Ally Financial

Maria Nikolova

Ally said other revenue edged higher year on year due primarily to higher investment gains in the current quarter and the addition of TradeKing revenue.

US financial services provider Ally Financial Inc (NYSE:ALLY) has earlier today posted its financial report for the final quarter and full year 2016, with the results including the impact from the acquisition of TradeKing Group, Inc., a digital wealth management company with an online broker/dealer, digital portfolio management platform, and educational content and social collaboration channels.

The deal, which was first announced in April 2016, was closed in June last year. Ally said back then that it is purchasing TradeKing for approximately $275 million (subject to certain purchase price adjustments), representing about $250 million in premium to the acquired net assets. At the moment of acquisition, TradeKing had approximately 260,000 brokerage funded accounts and 20,000 daily average revenue trades (DARTs). It also had around $4.5 billion in client assets, including some $1.1 billion of cash and sweep deposits.

Today, Ally listed the deal with TradeKing amid the 2016 highlights. Although non-interest expenses edged higher in annual terms mainly due to TradeKing integration and operations, other revenue climbed year on year due primarily to higher investment gains in the current quarter and addition of TradeKing revenue.

The report shows that TradeKing contributed $31 million to Ally’s “other revenues” in 2016. TradeKing’s results are, of course, added to Ally’s after June 1, 2016.

  • FY 2016

Looking at the overall fortunes of Ally Financial in 2016, we see that the net income amounted to $1.1 billion, down from $1.3 billion in the prior year. The comparison is affected by the $392 million boost the 2015 net income figure received from the discontinuance of certain operations and the sale of Ally’s former joint venture in China, in particular.

Net financing revenue improved to $3.9 billion, up $188 million from the preceding year. Other revenue increased $388 million in 2016 over 2015 levels.

Adjusted earnings per share rose 8% in 2016 to $2.16.

  • Q4 2016

Ally reported net income of $248 million for the final three months of 2016, compared to $263 million in the same quarter in 2015, as higher total revenues were more than offset by higher provision and non-interest expense.

Other revenue rose $36 million year over year, due to auto finance-related fee income, revenue from online brokerage and improved results in the corporate finance business.

Provision expenses increased $27 million, compared to the same quarter in 2015, to $267 million.

Non-interest expenses climbed $53 million year over year reflecting to continued growth in auto lending and deposits and new product expansion initiatives, including online brokerage.

Read this next

Digital Assets

CME Group to launch reference rates and indices on Avalanche (AVAX), Filecoin (FIL), and Tezos (XTZ)

Several leading crypto exchanges and trading platforms will provide pricing data for these new benchmarks, starting initially with Bitstamp, Coinbase, Gemini, itBit, Kraken, and LMAX Digital.


OneConnect launches operation in ADGM further expanding in Middle East

OneConnect has launched its regional operations in Abu Dhabi Global Market (ADGM), the leading international financial centre of the capital of the UAE, after having worked together on the creation of the ADGM Digital Lab which was launched in April 2021. The ADGM Digital Lab is a marketplace and industry sandbox to encourage the development […]

Industry News

Bitso powers crypto into Via’s payroll platform as remote work triples by 2027

“We are also allowing companies to hire international talent without worrying about administrative issues.”

Retail FX

Vantage partners with FinaCom for external dispute resolution and up to €20,000 protection per client

Vantage has joined the Financial Commission (FinaCom) as a member, thus gaining access to the external dispute resolution body’s range of services and membership benefits, including the unbiased resolution process facilitated by FinaCom, and the protection of up to €20,000 per client, covered by the FinaCom’s compensation fund.

Digital Assets

LMAX Digital onboards Bryan Christian and Cassandra Cox to lead sales

Institutional cryptocurrency exchange LMAX Digital continues to undergo a series of changes in its top ranks as it continues to build its presence globally. Two industry veterans, Bryan Christian and Cassandra Cox, have joined the group as its newest sales directors in Europe and USA.

Digital Assets

Cake DeFi introduces Ethereum Staking with 5% returns

Cake DeFi, a Singapore-based DeFi platform, is launching its Ethereum (ETH) staking service for retail and institutional customers.

Retail FX

FX trading rebounds 405pct at Saxo Bank in September

In a volatile market driven by Russia-Ukraine headlines, FX trading volumes through Saxo Bank have rebounded strongly in September to the highest level in three months.

Retail FX

CMC Markets’ stock climbs as H1 revenue to climb +20%

CMC Markets PLC (LSE:CMCX) shares spiked 5.6 percent to 235p in Thursday’s trading after the firm’s trading update for the first half of its fiscal year 2023 revealed results at the high end of company projections.

Retail FX

Interactive Brokers doubles client accounts to 2 million in 24 months

Electronic brokerage firm Interactive Brokers LLC (NASDAQ:IBKR) said its trading volumes took a slight step back in September, an indication that investor confidence is still fairly mixed over the past few months.