Ally Financial Inc. ALLY reported first-quarter 2016 adjusted earnings of 52 cents, which lagged the Zacks Consensus Estimate of 55 cents. Nonetheless, earnings was on par with the year-ago quarter figure. The lower-than-expected results were owing to higher expenses and a drastic increase in provision for loan losses, partially offset by an improved top line. Nevertheless, growth in finance receivables and loans was the tailwind.Ally Financial reported net income of $250 million, plunging 57% year over year.Performance in DetailTotal net revenue came in at $1.33 billion, up 21% year over year. The increase was mainly driven by a rise in net finance revenue. Moreover, the figure outpaced the Zacks Consensus Estimate of $1.32 billion.Controllable expenses inched up 2% year over year to $477 million. Also, other non-interest expenses increased 3% year over year to $233 million.Total finance receivables and loans stood at $109.8 billion as of Mar 31, 2016, up 11% year over year. Further, total deposits summed $70.3 billion, up 15% year over year.Ally Financial’s credit quality weakened during the quarter. Non-performing loans rose 18% year over year to $698 million as of Mar 31, 2016. Moreover, provision for loan losses surged 90% year over year to $220 million owing to the continued shift toward retail auto loan assets.As of Mar 31, 2016, total capital ratio came in at 13.0%, while Tier I capital ratio stood at 11.6%.Our TakeThough Ally Financial has streamlined its operations, de-risked balance sheet and enhanced its focus on increased risk-adjusted returns, it continues to explore additional products, services and technologies to boost further growth. However, we remain concerned about the high debt level, stringent regulations and concentration risks taking a toll on the company’s profitability, going forward.Currently, Ally Financial carries a Zacks Rank #3 (Hold).Performance of Other CompaniesSallie Mae SLM reported first-quarter core earnings of 14 cents per share, outpacing the Zacks Consensus Estimate of 12 cents. Results were driven by increased net interest income as well as other income. However, the quarter witnessed higher expenses and provisions.Navient Corporation’s NAVI first-quarter 2016 core earnings of 43 cents per share outpaced the Zacks Consensus Estimate by almost 5%. Results were aided by lower provision for credit losses and improved delinquencies in the quarter. However, the quarter recorded reduced net interest income and higher expenses.Among other firms in the finance space, Regional Management Corp. RM is expected to release results on Apr 28.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 >>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 SLM CORP (SLM): Free Stock Analysis Report NAVIENT CORP (NAVI): Free Stock Analysis Report ALLY FINANCIAL (ALLY): Free Stock Analysis Report REGIONAL MANAGE (RM): Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Investment Research