We enter into derivative instruments, which may include interest rate swaps, foreign-currency forwards, equity options, and interest rate options, in connection with our risk-management activities. Our primary objective for using derivative financial instruments is to manage interest rate risk associated with our fixed-rate and variable-rate assets and liabilities, foreign exchange risks related to our net investments in foreign subsidiaries, as well as foreign-currency denominated assets and liabilities, and other market risks related to our investment portfolio.

We monitor our mix of fixed-rate and variable-rate assets and liabilities and may enter into interest rate swaps, forwards, and options to achieve a more desired mix of fixed-rate and variable-rate assets and liabilities. We execute these trades to modify our exposure to interest rate risk by converting certain fixed-rate instruments to a variable-rate and certain variable-rate instruments to a fixed-rate. We use a mix of both derivatives that qualify for hedge accounting treatment and economic hedges that do not qualify for hedge accounting treatment.

Derivatives qualifying for hedge accounting treatment can include receive-fixed swaps designated as fair value hedges of specific fixed-rate unsecured debt obligations, receive-fixed swaps designated as fair value hedges of specific fixed-rate FHLB advances, pay-fixed swaps designated as fair value hedges of securities within our available-for-sale portfolio, and pay-fixed swaps designated as fair value hedges of fixed-rate held-for-investment consumer automotive loan assets. Other derivatives qualifying for hedge accounting consist of interest rate floor contracts designated as cash flow hedges of the expected future cash flows in the form of interest receipts on a portion of our dealer floorplan commercial loans.

We enter into foreign-currency forwards with external counterparties as net investment hedges of foreign exchange exposure on our investment in foreign subsidiaries. Our equity is impacted by the cumulative translation adjustments resulting from the translation of foreign subsidiary results; this impact is reflected in our accumulated other comprehensive income and loss. We also periodically enter into foreign-currency forwards to economically hedge any foreign-denominated debt, centralized lending, and foreign-denominated third-party loans. These foreign-currency forwards used as economic hedges are recorded at fair value with changes recorded as income or expense offsetting the gains and losses on the associated foreign-currency transactions.

We enter into various retail automotive-loan purchase agreements with certain counterparties. As part of those agreements, we may be required to pay the counterparty at agreed upon measurement dates and determinable amounts if actual credit performance of the acquired loans on the measurement date is better than what was estimated at the time of acquisition. Based upon these terms, these contracts meet the accounting definition of a derivative.

We enter into arrangements with certain counterparties through which we issue credit-linked notes covering a specified pool of loans. These notes contain an embedded derivative (referred to as credit-linked note derivatives), which provides us credit protection against the risk of loss when a specified credit event occurs on the reference pool.

Derivative financial instruments contain an element of credit risk if counterparties are unable to meet the terms of the agreements. Credit risk associated with derivative financial instruments is measured as the net replacement cost should the counterparties that owe us under the contract completely fail to perform under the terms of those contracts, with adjustments to reflect the exchange of collateral for margined transactions.

We execute certain OTC derivatives, such as interest rate caps and floors, using bilateral agreements with financial counterparties. Bilateral agreements generally require both parties to post collateral in the event the fair values of the derivative financial instruments meet posting thresholds established under the agreements. If either party defaults on the obligation, the secured party may seize the collateral. Payments related to the exchange of collateral for OTC derivatives are recognized as collateral.

Certain derivative instruments contain provisions that require us to either post additional collateral or immediately settle any outstanding liability balances upon the occurrence of a specified credit-risk-related event. No such specified credit-risk-related events occurred during the three months ended March 31, 2025, or March 31, 2024.

We placed cash and noncash collateral with counterparties totaling $1 million and $409 million, respectively, supporting our derivative positions at March 31, 2025, compared to $414 million of noncash collateral at December 31, 2024. These amounts include noncash collateral placed at clearinghouses and exclude cash and noncash collateral pledged under repurchase agreements. The receivables for cash collateral placed are included on our Condensed Consolidated Balance Sheet in other assets. We granted our counterparties the right to sell or pledge the noncash collateral.

We received cash collateral from counterparties totaling $2 million and $11 million at March 31, 2025, and December 31, 2024, respectively. These amounts exclude cash and noncash collateral pledged under repurchase agreements. The payables for cash collateral received are included on our Condensed Consolidated Balance Sheet in accrued expenses and other liabilities.

The following table summarizes the amounts of derivative instruments reported on our Condensed Consolidated Balance Sheet. The amounts are presented on a gross basis, are segregated by derivatives that are designated and qualifying as hedging instruments or those that are not, and are further segregated by type of contract within those two categories.

Derivative contracts in a receivable and payable position exclude open trade equity on derivatives cleared through central clearing counterparties. Any associated margin exchanged with our central clearing counterparties are treated as settlements of the derivative exposure, rather than collateral. Such payments are recognized as settlements of the derivatives contracts in a receivable and payable position on our Condensed Consolidated Balance Sheet.

Notional amounts are reference amounts from which contractual obligations are derived and are not recorded on the balance sheet. In our view, derivative notional is not an accurate measure of our derivative exposure when viewed in isolation from other factors, such as market rate fluctuations and counterparty credit risk.


	March 31, 2025						December 31, 2024
	Derivative contracts in a				Notional amount		Derivative contracts in a				Notional amount
($ in millions)	receivable position		payable position				receivable position		payable position
Derivatives designated as accounting hedges
Interest rate contracts
Swaps	$	—	$	—	$	35,007	$	—	$	—	$	33,300
Purchased options	2		—		6,150		2		—		6,150

Foreign exchange contracts
Forwards	—		—		171		8		—		170
Total derivatives designated as accounting hedges	2		—		41,328		10		—		39,620
Derivatives not designated as accounting hedges
Interest rate contracts

Forwards	—		—		34		—		—		109
Written options	—		—		7		1		—		63

Total interest rate risk	—		—		41		1		—		172
Foreign exchange contracts

Forwards	—		—		43		1		—		47


Total foreign exchange risk	—		—		43		1		—		47
Credit contracts
Credit-linked note derivatives	—		—		599		—		—		669
Other credit derivatives (a)	—		4		n/a		—		4		n/a
Total credit risk	—		4		599		—		4		669





Total derivatives not designated as accounting hedges	—		4		683		2		4		888
Total derivatives	$	2	$	4	$	42,011	$	12	$	4	$	40,508


	Carrying amount of the hedged items				Cumulative amount of fair value hedging adjustment included in the carrying amount of the hedged items
					Total				Discontinued (a)
($ in millions)	March 31, 2025		December 31, 2024		March 31, 2025		December 31, 2024		March 31, 2025		December 31, 2024
Assets
Available-for-sale securities (b)	$	15,785	$	15,194	$	(84)	$	(248)	$	(100)	$	(132)
Finance receivables and loans, net (c)	41,802		34,493		(19)		(51)		(7)		(10)
Liabilities

Long-term debt	$	5,378	$	5,987	$	86	$	88	$	86	$	88

(b)These amounts include the amortized cost basis and unallocated basis adjustments of closed portfolios of available-for-sale securities used to designate hedging relationships in which the hedged item is the stated amount of assets in the closed portfolios anticipated to be outstanding for the designated hedge period. At March 31, 2025, and December 31, 2024, the amortized cost basis and unallocated basis adjustments of the closed portfolios used in these hedging relationships was $14.2 billion and $13.9 billion, respectively, of which $14.0 billion and $13.6 billion, respectively, represents the amortized cost basis and unallocated basis adjustments of closed portfolios designated in an active hedge relationship. At March 31, 2025, and December 31, 2024, the total cumulative basis adjustments associated with these hedging relationships was a $88 million liability and a $209 million liability, respectively, of which the portion related to discontinued hedging relationships was a $99 million liability and a $103 million liability, respectively. At both March 31, 2025, and December 31, 2024, the notional amounts of the designated hedged items were $12.0 billion, with cumulative basis adjustments of an $11 million asset and a $106 million liability, respectively, which would be allocated across the entire remaining closed pool upon dedesignation of the hedge relationship. Refer to Note 7 for a reconciliation of the amortized cost and fair value of available-for-sale securities.

(c)These amounts include the carrying value of closed portfolios of loan receivables used to designate hedging relationships in which the hedged item is the stated amount of assets in the closed portfolios anticipated to be outstanding for the designated hedge period. At March 31, 2025, and December 31, 2024, the carrying value of the closed portfolios used in these hedging relationships was $41.8 billion and $34.5 billion, respectively, of which $40.9 billion and $33.4 billion, respectively, represents the carrying value of closed portfolios designated in an active hedge relationship. At March 31, 2025, and December 31, 2024, the total cumulative basis adjustments associated with these hedging relationships was a $19 million liability and a $51 million liability, respectively, of which the portion related to discontinued hedging relationships was a $7 million liability and a $10 million liability, respectively. At March 31, 2025, and December 31, 2024, the notional amounts of the designated hedged items were $21.6 billion and $20.1 billion, respectively, with cumulative basis adjustments of a $12 million liability and a $41 million liability, respectively, which would be allocated across the entire remaining closed pool upon dedesignation of the hedge relationship.


	Three months ended March 31,
($ in millions)		2025		2024
Gain recognized in earnings
Interest rate contracts
Gain on mortgage and automotive loans, net		$	1	$	5

Total interest rate contracts		1		5
Foreign exchange contracts


Other operating expenses		—		1
Total foreign exchange contracts		—		1







Total gain recognized in earnings		$	1	$	6


	Interest and fees on finance receivables and loans				Interest and dividends on investment securities and other earning assets					Interest on long-term debt
Three months ended March 31, ($ in millions)	2025		2024			2025		2024			2025		2024
Gain (loss) on fair value hedging relationships
Interest rate contracts




Hedged available-for-sale securities	$	—	$	—		$	130	$	(205)		$	—	$	—
Derivatives designated as hedging instruments on available-for-sale securities	—		—			(130)		205			—		—
Hedged fixed-rate consumer automotive loans	29		(94)			—		—			—		—
Derivatives designated as hedging instruments on fixed-rate consumer automotive loans	(29)		94			—		—			—		—
Total gain on fair value hedging relationships	—		—			—		—			—		—
Loss on cash flow hedging relationships
Interest rate contracts




Hedged variable-rate commercial loans
Reclassified from accumulated other comprehensive loss into income	(7)		(1)			—		—			—		—




Total loss on cash flow hedging relationships	$	(7)	$	(1)		$	—	$	—		$	—	$	—
Total amounts presented in the Condensed Consolidated Statement of Comprehensive Income (Loss)	$	2,709	$	2,827		$	230	$	266		$	271	$	248


	Interest and fees on finance receivables and loans				Interest and dividends on investment securities and other earning assets					Interest on long-term debt
Three months ended March 31, ($ in millions)	2025		2024			2025		2024			2025		2024
Gain on fair value hedging relationships
Interest rate contracts
Amortization of deferred unsecured debt basis adjustments	$	—	$	—		$	—	$	—		$	2	$	2

Amortization of deferred secured debt basis adjustments (FHLB advances)	—		—			—		—			—		1

Amortization of deferred basis adjustments of available-for-sale securities	—		—			5		6			—		—
Interest for qualifying accounting hedges of available-for-sale securities	—		—			17		48			—		—
Amortization of deferred loan basis adjustments	2		5			—		—			—		—
Interest for qualifying accounting hedges of consumer automotive loans held for investment	19		82			—		—			—		—
Total gain on fair value hedging relationships	$	21	$	87		$	22	$	54		$	2	$	3