Ally Financial in Detroit swung to a profit in the second quarter as a tax benefit outweighed the costs of insurance payouts on hailstorm-damaged vehicles.

The $158 billion-asset company's net income was $345 million, compared with a $1.1 billion loss a year earlier. Earnings per share were 71 cents. Total net revenue rose 20% to $1.36 billion.

The results included a $98 million benefit from a U.S. tax reserve release associated with last year's federal tax return.

Income from auto lending rose 14% to $426 million. Auto-loan originations fell 13% to $9.4 billion. Estimated risk-adjusted retail auto yields on second-quarter originations rose 44 basis points to 4.6% as Ally said it focused on originating loans with better risk profiles.

The loan-loss provision rose 23% to $172 million as Ally shifted to holding more auto loans and fewer auto leases on its books.

Ally's insurance business swung to a $18 million loss, from income of $15 million year earlier, on losses tied to hailstorms early in the second quarter. Insurance losses reduced quarterly net income by 4 cents.

Noninterest expense rose 7% to $773 million on higher employee compensation and benefits.

Deposits at the online-only Ally Bank rose 18% to $61.2 billion.

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