Ally Financial Inc. reported a significant increase in its fourth-quarter earnings, with net income rising 74% to $108 million, or 26 cents per share. The company's net interest margin reached 3.3%, surpassing analyst expectations. Additionally, Ally's loan-loss provisions were lower than anticipated at $557 million, compared to the expected $656.9 million. CEO Michael Rhodes expressed optimism about the company's future, citing strong business momentum and a well-positioned balance sheet for margin expansion. Ally also announced the sale of its credit-card business to CardWorks Inc., including a $2.3 billion loan portfolio, and took a $118 million partial goodwill impairment related to this transaction. Despite challenges in its auto loan portfolio, with the fourth-quarter retail auto net charge-off rate increasing to 2.34%, the company is taking steps to manage expenses, including a workforce reduction and cessation of new mortgage issuance, which are expected to save over $60 million annually. Shares of Ally soared, reflecting investor confidence in the company's strategic moves and financial performance.