Ally Financial, a major source of car loans, has posted a second quarter profit, signalling that a potential turnaround is in the cards.
The company posted a $565 million profit in the second quarter, up from a $3.9 billion loss in the same period of 2009, according to the Detroit News. For the first six months of the year, the company is up $730 million, compared to a $4.6 billion dollar loss in the first half of 2009.
Ally primarily provides car loans for customers of GM and Chrysler. However, GM has also acquired bad credit auto lender AmeriCredit, which some speculate may take some of Ally’s business away. The company is one of the major auto financing companies in the U.S., leading the country in new car financing and funding over 700,000 GM and Chrysler purchases last year.
Ally, then known as GMAC, was one of the companies bailed out by the U.S. government during the financial meltdown. The Treasury Department currently owns 56.3 percent of the lender, and has spent $17.2 billion to keep it afloat.
Despite this, the Wall Street Journal reports that the company won’t consider going public until at least 2011.