Ally Financial posted a net income of $1.1 billion for the first quarter of 2013, falling from $1.4 billion the previous quarter, the company stated.
Despite the slight decline, the finance company skyrocketed from its $310 million net income for the first quarter 2012.
The company attributed the decrease in net income to the repositioning of items in support of the company’s transformation efforts, most notably $198 million primarily related to a valuation write-down resulting from sales agreements for Ally Bank’s MSR.
With the company exiting non-strategic mortgage activities and winding down consumer lending, it reported a pre-tax loss of $6 million for the quarter. Total mortgage loan production hit $6.1 billion, mostly consisting of prime conforming loans, down from $9.8 billion in the previous quarter.
"The first four months of the year reflected significant progress on the strategic transformation of Ally," said Ally Financial CEO Michael Carpenter.
"In addition, Ally has exited the remaining mortgage businesses through the sales of the mortgage servicing rights and the business lending operation. These are key steps in our path toward further strengthening the company, maximizing shareholder value and returning the remaining investment to the U.S. taxpayer," he said.