Ally Financial (NYSE: ALLY) has been added to Citi’s Focus List as a top pick, with Citi expressing confidence in Ally’s growth potential despite recent concerns. Citi believes that Ally is well-positioned to benefit from improving credit conditions and an expanding net interest margin (NIM), particularly as interest rates decrease. Citi expects the Federal Reserve to lower the Fed Funds rate by 230 basis points to 3% by the end of 2025, which should positively impact Ally’s margins. Citi also noted recent deposit declines but remains optimistic about Ally’s ability to thrive in the current macroeconomic environment.
