(RTTNews) - GMAC Financial Services (MTLQQ.PK: News ), Wednesday said its third quarter loss narrowed from a year ago, on improved performance in mortgage operations, while revenue advanced from the year ago period. GMAC said results for the quarter were adversely affected by losses pertaining to legacy assets in the mortgage operations.

Financial services segment of General Motors, GMAC Financial Services' third quarter net loss narrowed to $767 million from $2.52 billion last year. The third quarter net loss includes a net of $96 million from discontinued operations.

On segment basis, the company's major source of income, global automotive finance pre-tax income rose to $395 million from $347 million last year and pre-tax loss from mortgage operations was $747 million, compared to a pre-tax loss of $1.95 billion a year earlier.

Net financing revenue rose to $574 million from $506 million last year, as total interest expense declined to $1.90 billion from $2.88 billion last year. Total financing revenue and other interest income dropped to $3.42 billion from $4.95 billion for the same period a year earlier.

Total net revenue rose to $2.11 billion from $1.2 billion for the same period last year, reflecting a other gain on investments of $216 million compared with other loss on investments of $396 million a year-ago.

In the company's mortgage segment, total provision for credit losses was $349 million, down from $652 million last year and allowance by product was $1.39 billion at the end of the third quarter compared with $1.54 billion at the end of the same period a year earlier.
Total nonperforming assets at the end of the quarter was $7.00 billion, down from $8.49 billion at the end of the same quarter last year.

For the nine-month period, net loss moderately narrowed to $5.34 billion from $5.59 billion a year earlier and total net revenue rose to $4.77 billion from $3.95 billion in the same period last year.

Looking ahead, GMAC said it would continue to focus on its core competencies, including automotive-related products and services and is working to increase competitiveness in such areas and offer value to its customers.

MTLQQ.PK is currently trading at $0.6070, up $0.0450 or 8.01%.

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by RTT Staff Writer

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