Shares of Ally Financial ALLY lost 3.6% following the release of its second-quarter 2022 results. Adjusted earnings of $1.76 per share lagged the Zacks Consensus Estimate of $1.90. The bottom line reflected a decline of 24.5% from the year-ago quarter.Results were primarily hurt by a rise in expenses, a decline in other revenues and higher provisions. However, an improvement in net financing revenues was an offsetting factor. Loan balances witnessed a rise in the reported quarter.After considering non-recurring items, net income (on a GAAP basis) was $454 million or $1.40 per share, down from $900 million or $2.41 per share in the prior-year quarter.Revenues Decline Marginally, Expenses RiseTotal GAAP net revenues were $2.08 billion, down marginally year over year. The top line missed the Zacks Consensus Estimate of $2.21 billion.Net financing revenues were up 14% from the prior-year quarter to $1.76 billion. The rise was driven by an increase in interest and fees on finance receivables and loans, total interest and dividends on investment securities, interest-bearing cash, other earning assets, and operating leases.The adjusted net interest margin was 4.06%, up 49 basis points year over year.Total other revenues were $312 million, down 42% from the prior-year quarter.Total non-interest expenses were up 5.9% year over year to $1.14 billion. The upswing stemmed from higher insurance losses and loss-adjustment expenses, and other operating expenses.The adjusted efficiency ratio was 43.9%, down from 44.5% in the year-ago period. A decline in the efficiency ratio indicates an improvement in profitability.Credit Quality WorsensNon-performing loans of $1.38 billion as of Jun 30, 2022, rising 7.6% year over year.In the reported quarter, the company recorded net charge-offs of $153 million against net recoveries of $6 million in the prior-year quarter. Also, it reported provision for loan losses of $304 million against provision benefits of $32 million in the prior-year quarter.Loan Balances Rise, Deposits FallAs of Jun 30, 2022, total net finance receivables and loans amounted to $125 billion, up 2.4% from the prior quarter. Deposits declined 1.5% from the prior-quarter end to $140.4 billion.Capital Ratios DeteriorateAs of Jun 30, 2022, the total capital ratio was 12.7%, down from 14.8% in the prior-year quarter. Tier I capital ratio was 11.1%, down from 13.1% as of Jun 30, 2021.Share Repurchase UpdateIn the reported quarter, the company repurchased $600 million worth of shares.Our ViewAlly Financial’s initiatives to diversify its revenue base will likely keep aiding profitability. Given a solid balance sheet, the company remains well-poised to expand through acquisitions. However, persistently rising expenses (mainly due to the company’s inorganic growth efforts) and higher provisions will likely hurt bottom-line growth in the near term.Ally Financial Inc. Price, Consensus and EPS Surprise Ally Financial Inc. price-consensus-eps-surprise-chart | Ally Financial Inc. QuoteCurrently, Ally Financial carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.Performance of Large BanksHigher reserve build and a decline in investment banking fees affected JPMorgan’s JPM second-quarter 2022 earnings of $2.76 per share, which missed the Zacks Consensus Estimate of $2.85. The reported quarter’s results included a net credit reserve build of $428 million.Higher interest rates and a solid rise in loan balances aided JPM’s net interest income. Operating expenses recorded a year-over-year rise.First Republic Bank’s FRC second-quarter 2022 earnings per share of $2.16 surpassed the Zacks Consensus Estimate of $2.05. Additionally, the bottom line improved 10.8% from the year-ago quarter.FRC’s results were supported by an increase in net interest income and non-interest income. The company’s capital position was strong in the quarter. Yet, higher expenses and elevated provision for credit losses were the offsetting factors. 7 Best Stocks for the Next 30 Days Just released: Experts distill 7 elite stocks from the current list of 220 Zacks Rank #1 Strong Buys. They deem these tickers "Most Likely for Early Price Pops." Since 1988, the full list has beaten the market more than 2X over with an average gain of +24.8% per year. So be sure to give these hand-picked 7 your immediate attention. See them now >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report JPMorgan Chase & Co. (JPM): Free Stock Analysis Report First Republic Bank (FRC): Free Stock Analysis Report Ally Financial Inc. (ALLY): Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Investment Research