GMAC Inc. posted its first quarterly profit in nearly three years and said it is contemplating an initial public offering to help the car and home lender repay some of its $17.3 billion of federal bailout funds.

The company made $162 million, compared with a loss of $675 million a year earlier, as auto sales improved and the mortgage unit, Residential Capital LLC (which GMAC has been trying to sell), reduced its liability for loan repurchases and unloaded assets.

Subscribe Now

Access to authoritative analysis and perspective and our data-driven report series.

14-Day Free Trial

No credit card required. Complete access to articles, breaking news and industry data.