NEW YORK — In reporting its preliminary first-quarter results, Ally Financial announced that its auto originations from continuing operations soared 75 percent for the first quarter to $14.3 billion, compared to $8.2 billion in the previous year.

First-quarter consumer originations included $9.6 billion in new originations, $2.5 billion in used originations and $2.2 billion in new leases. The first quarter of 2010 included $6.2 billion of new originations, $1.1 billion of used originations and about $800 million in new leases.

"Growth in consumer financing originations was driven by the expansion of the company's retail originations platform, strong dealer relationships and the execution of incentive programs designed by GM and Chrysler," management explained.

"Leasing and used origination volume continued to increase as Ally remains focused on diversifying its business mix under prudent underwriting principles," the team continued.

More specifically, leasing grew to 16 percent of total originations in the first quarter from 10 percent in the same period of last year.

Moreover, used originations increased to 17 percent of total originations, compared to 14 percent a year ago.

Ally's average U.S. wholesale penetration for GM dealer stock was 82.3 percent for the period, compared to 81 percent in the previous quarter and 84.2 percent in the first quarter of 2010.

"U.S. consumer penetration for GM was 51.9 percent during the first quarter of 2011, compared to 49.7 percent in the prior quarter and 33.5 percent in the first quarter of 2010," according to Ally.

As for Chrysler, Ally's whoelsale penetration was 69.9 percent, compared to 71.6 percent in the previous quarter and 71.4 percent in the same period of 2010.

Chrysler's consumer penetration was 33.7 percent in the first quarter of 2011.

North American originations for the period were $12.4 billion, including $11.6 billion in the U.S. This compared to originations of $6.7 billion, including about $6 billion in the U.S. in the 2010 time frame.

Continuing on, the company reported that international consumer originations, including the non-consolidated China joint venture, were $1.9 billion for the first quarter, compared to $1.5 billion in the prior year.

Branching out to global automotive services, this division reported first-quarter pre-tax income from continuing operations of $692 million, compared to $842 million in the same time frame of 2010.

North American Automotive Finance, which includes the U.S. and Canada, posted pre-tax income from continuing operations of $518 million, compared to $612 million.

"Results were driven lower by the expiration of whole loan forward flow sales in the fourth quarter and a decline in sale gains due to lower terminations," Ally revealed. "This was partially offset by strong consumer revenue due to asset growth and a lower loan loss provision due to improved economic conditions and collections efficiency."

International Automotive Finance, meanwhile, reported pre-tax income from continuing operations of $40 million, compared to $47 million a year ago.

"The decline was the result of increased provisions for commercial loan losses and lower net revenue. The company's international auto finance footprint currently consists of 15 countries, including the company's five core international markets: Germany, U.K., Brazil, Mexico and the China joint venture," officials highlighted. 

As for the insurance aspect of business, the company saw pre-tax income from continuing operations of $134 million, compared to $183 million.

"The decline was driven by lower investment gains, offset by improved underwriting income as the result of lower losses and lower operating expense," management noted.

For the company as a whole, Ally Financial reported net income of $146 million, compared to $162 million a year ago.

"Net income was favorably affected by an income tax benefit resulting from a $101 million reversal of valuation allowance in Canada," the company said. "Core pre-tax income, which reflected income from continuing operations before taxes and original issue discount amortization expense primarily from bond exchanges, totaled $428 million in the first quarter of 2011, compared to $584 million in the comparable prior year period."

Discussing the company's business, Michael Carpenter, chief executive officer, explained, "Ally has reported consistently profitable results for more than a year, and we are encouraged with the transformation to date and the progress we continue to see in the business. Our auto franchise is flourishing, as we continue to generate strong origination volume from an increasingly diversified customer base.

"Additionally, the consumer value-proposition at Ally Bank continues to resonate as our customer base grows and satisfaction levels remain in the top quartile. While core pre-tax income was lower due to the moderation of certain factors that benefited us last year, we expect profitability to improve over time, as our cost of funds continues to decline, our credit mix becomes more balanced and the original issue discount from bond exchanges run off," he continued.

Finally, he said, "We also took some very important steps during the quarter toward repaying the U.S. taxpayer's investment in Ally, including the sale of $2.7 billion of Ally trust preferred securities to third-party investors."