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Ally Financial (NYSE:ALLY) stock finished Friday’s session with a 10.7% jump after the bank and auto lender agreed to sell its point-of-sale financing business to Synchrony Financial (SYF).
That takes the stock to a 9.6% gain for the week. Shares were up 35.8% from a year ago.
Going forward, the sale of the Ally Lending unit, expected to close in Q1, is accretive to earnings, CEO Jeff Brown said during an earnings conference call.
Also on Friday, Ally (ALLY) posted Q4 earnings that matched the average analyst estimate and dropped both sequentially and Y/Y.
The company’s net interest margin has suffered from the Federal Reserve’s rate hikes over the past two years. But, “with the tightening cycle likely behind us, we are well positioned for meaningful NIM expansion going forward, Brown noted.