Ally Financial’s ALLY first-quarter 2021 adjusted earnings of $2.09 per share convincingly surpassed the Zacks Consensus Estimate of $1.18. Also, the bottom line showed a significant rebound from a loss of 44 cents incurred a year ago.Results benefited from growth in revenues and provision benefits, partly offset by higher expenses and lower loan balance. Further, a strong deposit balance and improving capital ratios were tailwinds.After considering non-recurring items, net income available to common shareholders (on a GAAP basis) was $796 million or $2.11 per share against net loss of $319 million or 85 cents in the prior-year quarter.Revenues Improve, Expenses RiseTotal net revenues for the reported quarter were $1.94 billion, up 37.2% year over year. The figure also outpaced the Zacks Consensus Estimate of $1.76 billion.Net financing revenues were up 19.7% from the prior-year figure to $1.37 billion. This rise was driven by lower funding costs, higher retail auto revenues and better gains on off-lease vehicles. These were partially offset by higher mortgage premium amortization, and lower commercial auto portfolio balance and yield.Adjusted net interest margin was 3.18%, up 50 basis points (bps) year over year.Total other revenues of $565 million improved significantly from $266 million recorded in the prior-year quarter.Total non-interest expenses were up 2.5% to $943 million. The upswing stemmed from a rise in compensation and benefits expense.Adjusted efficiency ratio at the end of the first quarter was 44.4%, down from 52.3% in the year-ago period. A decline in efficiency ratio indicates improvement in profitability.Credit Quality: Mixed BagNon-performing loans of $1.44 billion as of Mar 31, 2021 were up 3.1% year over year. However, net charge-off rate was 0.41%, down 43 bps.Provision for loan losses was a benefit of $13 million against a provision of $903 million in the prior year quarter.Loans Down, Deposits UpTotal net finance receivables and loans amounted to $109.9 billion as of Mar 31, 2021 decreasing 4.6% from the fourth-quarter 2020 level. However, deposits totaled $139.6 billion, up 1.9%.Capital Ratios ImproveAs of Mar 31, 2021, total capital ratio was 14.6%, up from 12.8% in the prior-year quarter. Tier I capital ratio was 12.8%, up from 10.9% as of Mar 31, 2020.Share Repurchase UpdateDuring the quarter, the company repurchased shares worth $219 million.Our ViewAlly Financial’s initiatives to diversify its revenue base and its rise in deposit balance will aid its profitability. However, persistently mounting expenses and near-zero interest rates are concerns.Ally Financial Inc. Price, Consensus and EPS Surprise Ally Financial Inc. price-consensus-eps-surprise-chart | Ally Financial Inc. QuoteCurrently, Ally Financial sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.Earnings Release Date of Other Consumer Loan ProvidersSLM Corporation SLM is slated to announce quarterly numbers on April 22 while both Capital One COF and Navient Corporation NAVI) will report on April 27.Zacks Top 10 Stocks for 2021In addition to the stocks discussed above, would you like to know about our 10 best buy-and-hold tickers for the entirety of 2021?Last year's 2020 Zacks Top 10 Stocks portfolio returned gains as high as +386.8%. Now a brand-new portfolio has been handpicked from over 4,000 companies covered by the Zacks Rank. Don’t miss your chance to get in on these long-term buys.AccessZacks Top 10 Stocks for 2021 today >>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 Corporation (SLM): Free Stock Analysis Report Capital One Financial Corporation (COF): Get Free Report Ally Financial Inc. (ALLY): Free Stock Analysis Report Navient Corporation (NAVI): Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Investment Research