EX-99.3 4 v301050_ex99-3.htm EXHIBIT 99.3

 

 

FOURTH QUARTER 2011

 

FINANCIAL SUPPLEMENT

 

 
 

 

ALLY FINANCIAL INC.
FORWARD-LOOKING STATEMENTS AND ADDITIONAL INFORMATION

 

The following should be read in conjunction with the financial statements, notes and other information contained in the Company’s 2010 Annual Report on Form 10-K, Quarterly Reports on Form 10-Q, and Current Reports on Form 8-K.

 

This information is preliminary and based on company data available at the time of the presentation

 

In the presentation that follows and related comments by Ally Financial Inc. (“Ally”) management, the use of the words “expect,” “anticipate,” “estimate,” “forecast,” “initiative,” “objective,” “plan,” “goal,” “project,” “outlook,” “priorities,” “target,” “intend,” “evaluate,” “pursue,” “seek,” “may,” “would,” “could,” “should,” “believe,” “potential,” “continue,” or similar expressions is intended to identify forward-looking statements. All statements herein and in related management comments, other than statements of historical fact, including without limitation, statements about future events and financial performance, are forward-looking statements that involve certain risks and uncertainties. While these statements represent our current judgment on what the future may hold, and we believe these judgments are reasonable, these statements are not guarantees of any events or financial results, and Ally’s actual results may differ materially due to numerous important factors that are described in the most recent reports on SEC Forms 10-K and 10-Q for Ally, each of which may be revised or supplemented in subsequent reports filed with the SEC. Such factors include, among others, the following: maintaining the mutually beneficial relationship between Ally and General Motors (“GM”), and Ally and Chrysler; the profitability and financial condition of GM and Chrysler; securing low cost funding for us and Residential Capital, LLC (“ResCap”); our ability to realize the anticipated benefits associated with being a bank holding company, and the increased regulation and restrictions that we are now subject to; any additional future impact resulting from delayed foreclosure sales or related matters; the potential for legal liability resulting from claims related to the sale of private-label mortgage-backed securities; risks related to potential repurchase obligations due to alleged breaches of representations and warranties in mortgage securitization transactions; changes in U.S. government-sponsored mortgage programs or disruptions in the markets in which our mortgage subsidiaries operate; continued challenges in the residential mortgage markets; the continuing negative impact on ResCap and our mortgage business generally due to declines in the U.S. housing market; uncertainty of our ability to enter into transactions or execute strategic alternatives to realize the value of our ResCap operations; the potential for deterioration in the residual value of off-lease vehicles; disruptions in the market in which we fund our operations, with resulting negative impact on our liquidity; changes in our accounting assumptions that may require or that result from changes in the accounting rules or their application, which could result in an impact on earnings; changes in the credit ratings of Ally, ResCap, Chrysler, or GM; changes in economic conditions, currency exchange rates or political stability in the markets in which we operate; and changes in the existing or the adoption of new laws, regulations, policies or other activities of governments, agencies and similar organizations (including as a result of the Dodd-Frank Act).

 

Investors are cautioned not to place undue reliance on forward-looking statements. Ally undertakes no obligation to update publicly or otherwise revise any forward-looking statements except where expressly required by law. Reconciliation of non-GAAP financial measures included within this presentation are provided in this presentation.

 

Use of the term “loans” describes products associated with direct and indirect lending activities of Ally’s global operations. The specific products include retail installment sales contracts, loans, lines of credit, leases or other financing products. The term “originate” refers to Ally’s purchase, acquisition or direct origination of various “loan” products.

 

4Q 2011 Preliminary Results

 

2
 

 

ALLY FINANCIAL INC.
TABLE OF CONTENTS

 

    Page(s)
Consolidated Results    
Consolidated Financial Highlights   4
Consolidated Income Statement   5
Consolidated Period-End Balance Sheet   6
Consolidated Average Balance Sheet   7
     
Segment Detail    
Segment Highlights   8
North American Automotive Finance   9-10
International Automotive Finance   11-12
Insurance   13
Mortgage Origination and Servicing   14
Legacy Portfolio and Other   15
ResCap Key Financial Information   16
Mortgage Operations Asset Breakout   17
Corporate and Other   18
     
Credit Related Information   19-21
     
Supplemental Detail    
Capital   22
Liquidity   23
Deposits   24
Ally Bank Consumer Mortgage HFI Portfolio   25
Mortgage Repurchase Reserves   26
Ownership   27

 

4Q 2011 Preliminary Results

 

3
 

 

ALLY FINANCIAL INC.
CONSOLIDATED FINANCIAL HIGHLIGHTS

 

($ in millions)                                        
   QUARTERLY TRENDS   CHANGE VS.   FULL YEAR 
Selected Income Statement Data  4Q 11   3Q 11   2Q 11   1Q 11   4Q 10   3Q 11   4Q 10   2011   2010   CHANGE 
Net financing revenue (ex. OID)  $743   $832   $972   $840   $846   $(89)  $(103)  $3,387   $3,813   $(426)
Total other revenue (ex. OID)   977    554    1,077    1,038    1,300    423    (323)   3,646    5,129    (1,483)
Total net revenue (ex. OID)   1,720    1,386    2,049    1,878    2,146    334    (426)   7,033    8,942    (1,909)
Provision for loan losses   6    50    50    113    71    (44)   (65)   219    442    (223)
Controllable expenses (1)   965    731    825    835    885    234    80    3,357    3,341    16 
Other noninterest expenses   773    486    709    505    664    287    109    2,472    2,720    (248)
Core pre-tax income (2)  $(24)  $119   $465   $425   $526   $(143)  $(550)  $985   $2,439   $(1,454)
Core OID amortization expense (3) (4)   137    225    274    326    301    (88)   (164)   962    1,300    (338)
Income tax expense (benefit)   73    93    83    (70)   45    (20)   28    179    153    26 
(Loss) income from discontinued operations   (16)   (11)   5    (23)   (101)   (5)   85    (45)   89    (134)
Net (loss) income  $(250)  $(210)  $113   $146   $79   $(40)  $(329)  $(201)  $1,075   $(1,276)
                                                   
Selected Balance Sheet Data (Period-End)                                                  
Total assets  $183,940   $181,956   $178,889   $173,704   $172,008   $1,984   $11,932   $183,940   $172,008   $11,932 
Consumer loans (5)   74,287    70,815    70,093    68,407    63,017    3,472    11,270    74,287    63,017    11,270 
Commercial loans (6)   40,468    37,897    40,632    39,052    39,396    2,571    1,072    40,468    39,396    1,072 
Allowance balance   (1,503)   (1,621)   (1,739)   (1,806)   (1,873)   118    370    (1,503)   (1,873)   370 
Deposits   45,050    44,326    42,262    40,696    39,048    724    6,002    45,050    39,048    6,002 
Common equity (7)   12,387    12,792    13,483    13,467    13,518    (405)   (1,131)   12,387    13,518    (1,131)
Total equity   19,327    19,732    20,423    20,407    20,489    (405)   (1,162)   19,327    20,489    (1,162)
                                                   
Select Financial Ratios                                                  
Net interest margin (8)   1.8%   2.1%   2.5%   2.3%   2.3%             2.1%   2.7%     
Return on average total equity (annualized)   -5.1%   -4.2%   2.2%   2.9%   1.5%             -1.0%   5.2%     
Return on average assets (annualized)   -0.5%   -0.5%   0.3%   0.3%   0.2%             -0.1%   0.6%     
                                                   
Capital Ratios                                                  
Tier 1 capital ratio   13.7%   14.3%   14.6%   14.7%   15.0%                         
Tier 1 common capital ratio (9)   7.5%   8.0%   8.4%   8.4%   8.6%                         
Total risk-based capital ratio   14.7%   15.5%   15.9%   16.0%   16.4%                         

 

(1) Includes employee related costs, consulting and legal fees, marketing, information technology, facility, portfolio servicing and restructuring expenses

(2) Core pre-tax income is a non-GAAP financial measure. It is defined as income from continuing operations before taxes and primarily bond exchange original issue discount ("OID") amortization expense

(3) Includes $20 million and $30 million of accelerated OID amortization in 2Q11 and 1Q11, respectively, and $101 million in Full Year 2010

(4) Core OID for 4Q 2010 exclude IO and 2011 excludes IO and 2010 issuances

(5) These amounts exclude loans held-for-sale

(6) Includes notes receivable from General Motors

(7) Includes common stock and paid-in capital, accumulated deficit and accumulated other comprehensive income

(8) Excludes OID amortization expense. The impact of historical financial statement restatements for discontinued operations are not reflected in prior periods

(9) Tier 1 common capital ratio is a non-GAAP measurement. Refer to page 22 for additional details

 

4Q 2011 Preliminary Results

 

4
 

 

ALLY FINANCIAL INC.
CONSOLIDATED INCOME STATEMENT		  

 

($ in millions)    
   QUARTERLY TRENDS   CHANGE VS.   FULL YEAR 
   4Q 11   3Q 11   2Q 11   1Q 11   4Q 10   3Q 11   4Q 10   2011   2010   CHANGE 
Financing revenue and other interest income                                                  
Interest and fees on finance receivables and loans (1)  $1,659   $1,680   $1,675   $1,621   $1,665   $(21)  $(6)  $6,635   $6,546   $89 
Interest on loans held-for-sale   76    86    86    84    123    (10)   (47)   332    601    (269)
Interest on trading securities   9    4    3    3    3    5    6    19    15    4 
Interest and dividends on available-for-sale investment securities   87    102    106    103    85    (15)   2    398    356    42 
Interest-bearing cash   13    14    15    12    15    (1)   (2)   54    69    (15)
Operating leases   515    530    598    655    717    (15)   (202)   2,298    3,596    (1,298)
Total financing revenue and other interest income   2,359    2,416    2,483    2,478    2,608    (57)   (249)   9,736    11,183    (1,447)
Interest expense                                                  
Interest on deposits   184    179    171    166    171    5    13    700    641    59 
Interest on short-term borrowings   74    61    87    92    89    13    (15)   314    324    (10)
Interest on long-term debt   1,179    1,293    1,331    1,406    1,432    (114)   (253)   5,209    5,701    (492)
Total interest expense   1,437    1,533    1,589    1,664    1,692    (96)   (255)   6,223    6,666    (443)
Depreciation expense on operating lease assets   316    276    176    270    371    40    (55)   1,038    1,903    (865)
Net financing revenue   606    607    718    544    545    (1)   61    2,475    2,614    (139)
Other revenue                                                  
Servicing fees   325    335    341    357    366    (10)   (41)   1,358    1,493    (135)
Servicing asset valuation and hedge activities, net   (126)   (471)   (105)   (87)   (213)   345    87    (789)   (394)   (395)
Total servicing income, net   199    (136)   236    270    153    335    46    569    1,099    (530)
Insurance premiums and service revenue earned   385    390    399    399    419    (5)   (34)   1,573    1,750    (177)
Gain on mortgage and automotive loans, net   169    95    116    90    401    74    (232)   470    1,261    (791)
Loss on extinguishment of debt   -    -    (25)   (39)   -    -    -    (64)   (123)   59 
Other gain on investments, net   43    75    92    84    150    (32)   (107)   294    504    (210)
Other income, net of losses   181    130    239    204    177    51    4    754    537    217 
Total other revenue   977    554    1,057    1,008    1,300    423    (323)   3,596    5,028    (1,432)
Total net revenue   1,583    1,161    1,775    1,552    1,845    422    (262)   6,071    7,642    (1,571)
Provision for loan losses   6    50    50    113    71    (44)   (65)   219    442    (223)
Noninterest expense                                                  
Compensation and benefits expense   442    293    415    424    406    149    36    1,574    1,576    (2)
Insurance losses and loss adjustment expenses   146    170    227    170    196    (24)   (50)   713    820    (107)
Other operating expenses   1,150    754    892    746    947    396    203    3,542    3,665    (123)
Total noninterest expense   1,738    1,217    1,534    1,340    1,549    521    189    5,829    6,061    (232)
(Loss) income from continuing operations before income tax expense (benefit)   (161)   (106)   191    99    225    (55)   (386)   23    1,139    (1,116)
Income tax expense (benefit) from continuing operations   73    93    83    (70)   45    (20)   28    179    153    26 
Net income from continuing operations   (234)   (199)   108    169    180    (35)   (414)   (156)   986    (1,142)
(Loss) Income from discontinued operations, net of tax   (16)   (11)   5    (23)   (101)   (5)   85    (45)   89    (134)
Net (loss) income  $(250)  $(210)  $113   $146   $79   $(40)  $(329)  $(201)  $1,075   $(1,276)

 

(1) Includes other interest income, net

 

4Q 2011 Preliminary Results

 

5
 

 

ALLY FINANCIAL INC.
CONSOLIDATED PERIOD-END BALANCE SHEET

 

($ in millions)                            
   QUARTERLY TRENDS   CHANGE VS. 
Assets  12/31/2011   9/30/2011   6/30/2011   3/31/2011   12/31/2010   9/30/2011   12/31/2010 
Cash and cash equivalents                                   
Noninterest-bearing  $1,768   $1,517   $2,039   $1,652   $1,714   $251   $54 
Interest-bearing   11,267    14,885    12,862    11,294    9,956    (3,618)   1,311 
Total cash and cash equivalents   13,035    16,402    14,901    12,946    11,670    (3,367)   1,365 
Trading assets   622    503    311    75    240    119    382 
Investment securities   15,135    13,981    15,961    15,401    14,846    1,154    289 
Loans held-for-sale, net   8,557    8,745    7,168    7,496    11,411    (188)   (2,854)
Finance receivables and loans, net                                   
Finance receivables and loans, net   114,755    108,712    110,725    107,459    102,413    6,043    12,342 
Allowance for loan losses   (1,503)   (1,621)   (1,739)   (1,806)   (1,873)   118    370 
Total finance receivables and loans, net   113,252    107,091    108,986    105,653    100,540    6,161    12,712 
Investment in operating leases, net   9,275    9,052    9,015    8,898    9,128    223    147 
Mortgage servicing rights   2,519    2,663    3,701    3,774    3,738    (144)   (1,219)
Premiums receivables and other insurance assets   1,853    2,026    2,124    2,175    2,181    (173)   (328)
Other assets   18,622    21,540    16,770    16,763    17,564    (2,918)   1,058 
Assets of operations held-for-sale (1)   1,070    (47)   (48)   523    690    1,117    380 
Total assets  $183,940   $181,956   $178,889   $173,704   $172,008   $1,984   $11,932 
                                    
Liabilities                                   
Deposit liabilities                                   
Noninterest-bearing  $2,029   $2,704   $2,405   $2,064   $2,131   $(675)  $(102)
Interest-bearing   43,021    41,622    39,857    38,632    36,917    1,399    6,104 
Total deposit liabilities   45,050    44,326    42,262    40,696    39,048    724    6,002 
Short-term borrowings   7,680    5,933    7,130    7,395    7,508    1,747    172 
Long-term debt   92,794    90,546    91,723    88,139    86,612    2,248    6,182 
Interest payable   1,587    1,712    1,734    1,850    1,829    (125)   (242)
Unearned insurance premiums and service revenue   2,576    2,757    2,845    2,842    2,854    (181)   (278)
Reserves for insurance losses and loss adjustment expenses   580    690    782    828    862    (110)   (282)
Accrued expense and other liabilities   14,009    16,260    11,990    11,001    12,126    (2,251)   1,883 
Liabilities of operations held-for-sale   337    -    -    546    680    337    (343)
Total liabilities  $164,613   $162,224   $158,466   $153,297   $151,519   $2,389   $13,094 
                                    
Equity                                   
Common stock and paid-in capital  $19,668   $19,668   $19,668   $19,668   $19,668   $(0)  $0 
Mandatorily convertible preferred stock held by U.S. Department of Treasury   5,685    5,685    5,685    5,685    5,685    -    - 
Preferred stock   1,255    1,255    1,255    1,255    1,287    -    (32)
Accumulated deficit   (7,368)   (6,918)   (6,508)   (6,435)   (6,410)   (450)   (958)
Accumulated other comprehensive income   87    42    323    234    259    45    (172)
Total equity   19,327    19,732    20,423    20,407    20,489    (405)   (1,162)
Total liabilities and equity  $183,940   $181,956   $178,889   $173,704   $172,008   $1,984   $11,932 

 

(1) Includes $94 million of unfavorable translation adjustment related to our International Auto Finance Operations in Venezuela

 

4Q 2011 Preliminary Results

 

6
 

 

ALLY FINANCIAL INC.
CONSOLIDATED AVERAGE BALANCE SHEET (1)

 

($ in millions)    
   QUARTERLY TRENDS   CHANGE VS.   FULL YEAR 
Assets  12/31/2011   9/30/2011   6/30/2011   3/31/2011   12/31/2010   9/30/2011   12/31/2010   2011   2010   CHANGE 
Interest-bearing cash and cash equivalents  $11,364   $13,373   $11,910   $13,041   $11,447   $(2,009)  $(83)  $12,420   $13,964   $(1,544)
Trading assets   647    351    146    318    263    296    384    366    252    114 
Investment securities   15,487    13,814    14,311    14,591    11,629    1,673    3,858    14,551    11,312    3,239 
Loans held-for-sale, net   10,588    9,654    8,320    8,877    12,438    934    (1,850)   9,365    13,506    (4,141)
Total finance receivables and loans, net (2)   114,069    112,478    111,543    104,385    100,296    1,591    13,773    110,650    92,224    18,426 
Investment in operating leases, net   9,129    9,040    9,004    8,947    9,564    89    (435)   9,031    12,064    (3,033)
Total interest earning assets   161,284    158,710    155,234    150,159    145,637    2,574    15,647    156,383    143,322    13,061 
Noninterest-bearing cash and cash equivalents   1,664    1,321    1,020    1,032    1,117    343    547    1,261    686    575 
Other assets   23,320    27,565    23,966    24,898    26,386    (4,245)   (3,066)   24,940    35,040    (10,100)
Allowance for loan losses   (1,609)   (1,737)   (1,816)   (1,864)   (2,053)   128    444    (1,756)   (2,363)   607 
Total assets  $184,659   $185,859   $178,404   $174,225   $171,087   $(1,200)  $13,572   $180,828   $176,685   $4,143 
                                                   
Liabilities                                                  
Interest-bearing deposit liabilities  $43,823   $42,131   $40,386   $38,156   $36,093   $1,692   $7,730   $41,136   $33,355   $7,781 
Short-term borrowings   7,137    7,320    7,280    8,559    6,597    (183)   540    7,209    7,601    (392)
Long-term debt (3)   91,590    92,313    90,606    87,060    85,670    (723)   5,920    90,410    87,270    3,140 
Total interest-bearing liabilities (3)   142,550    141,764    138,272    133,775    128,360    786    14,190    138,755    128,226    10,529 
Noninterest-bearing deposit liabilities   2,374    2,509    2,170    2,017    2,307    (135)   67    2,239    2,082    157 
Other liabilities   20,137    21,529    17,517    18,021    19,670    (1,392)   467    19,677    25,666    (5,989)
Total liabilities  $165,061   $165,802   $157,959   $153,813   $150,337   $(741)  $14,724   $160,671   $155,974   $4,697 
                                                   
Equity                                                  
Total equity  $19,598   $20,057   $20,445   $20,412   $20,750   $(459)  $(1,152)  $20,157   $20,711   $(554)
Total liabilities and equity  $184,659   $185,859   $178,404   $174,225   $171,087   $(1,200)  $13,572   $180,828   $176,685   $4,143 

 

Note: The impact of financial statement restatements for discontinued operations are not reflected in prior periods

(1) Average balances are calculated using a combination of monthly and daily average methodologies

(2) Nonperforming finance receivables and loans are included in the average balances net of unearned income, unamortized premiums and discounts, and deferred fees and costs

(3) Average balance includes $2,185 million related to OID at December 31, 2011

 

4Q 2011 Preliminary Results

 

7
 

 

ALLY FINANCIAL INC.
SEGMENT HIGHLIGHTS		  

 

($ in millions)    
       QUARTERLY TRENDS   CHANGE VS.   FULL YEAR 
   4Q 11   3Q 11   2Q 11   1Q 11   4Q 10   3Q 11   4Q 10   2011   2010   INC / (DEC) 
North American Automotive Finance  $478   $551   $559   $518   $589   $(73)  $(111)  $2,106   $2,344   $(238)
International Automotive Finance   21    89    69    31    8    (68)   13    210    205    5 
Insurance   93    111    72    131    165    (18)   (72)   407    562    (155)
Global Automotive Services   592    751    700    680    762    (159)   (170)   2,723    3,111    (388)
Mortgage Origination and Servicing   (237)   (292)   53    85    173    55    (410)   (391)   920    (1,311)
Legacy Portfolio and Other (1)   (65)   (117)   (178)   (42)   (53)   52    (12)   (402)   (267)   (135)
Mortgage Operations   (302)   (409)   (125)   43    120    107    (422)   (793)   653    (1,446)
Corporate and Other (ex. OID) (2)   (314)   (223)   (110)   (298)   (356)   (91)   42    (945)   (1,325)   380 
Core pre-tax income (3)   (24)   119    465    425    526    (143)   (550)   985    2,439    (1,454)
Core OID amortization expense (4)(5)   137    225    274    326    301    (88)   (164)   962    1,300    (338)
Income tax expense (benefit)   73    93    83    (70)   45    (20)   28    179    153    26 
(Loss) income from discontinued operations   (16)   (11)   5    (23)   (101)   (5)   85    (45)   89    (134)
Net (loss) income  $(250)  $(210)  $113   $146   $79   $(40)  $(329)  $(201)  $1,075   $(1,276)

 

(1) Legacy Portfolio and Other segment primarily consists of loans originated prior to Jan. 1, 2009 and includes non-core business activities including portfolios in runoff

(2) Corporate and Other primarily consists of our centralized Corporate treasury and deposit gathering activities and the residual impacts of our corporate funds transfer pricing ("FTP") and treasury asset liability management ("ALM") activities. The segment also includes our Commercial Finance Group ("CFG"), certain equity investments and reclassifications and eliminations between the reportable operating segments

(3) Core pre-tax income is a non-GAAP financial measure. It is defined as income from continuing operations before taxes and primarily bond exchange OID amortization expense

(4) Includes $20 million and $30 million of accelerated OID amortization in 2Q11 and 1Q11, respectively, and $101 million in Full Year 2010

(5) Core OID for 4Q 2010 exclude IO and 2011 excludes IO and 2010 issuances

 

4Q 2011 Preliminary Results

 

8
 

 

ALLY FINANCIAL INC.
NORTH AMERICAN AUTO - CONDENSED FINANCIAL STATEMENTS

 

($ in millions)                                        
   QUARTERLY TRENDS   CHANGE VS.   FULL YEAR 
Income Statement  4Q 11   3Q 11   2Q 11   1Q 11   4Q 10   3Q 11   4Q 10   2011   2010   CHANGE 
Net financing revenue                                                  
Consumer  $739   $718   $706   $668   $629   $21   $110   $2,831   $2,339   $492 
Commercial (1)   324    346    329    326    386    (22)   (62)   1,325    1,425    (100)
Loans held-for-sale   5    -    -    -    -    5    5    5    112    (107)
Operating leases   511    527    594    651    707    (16)   (196)   2,283    3,570    (1,287)
Other interest income   31    29    23    23    25    2    6    106    149    (43)
Total financing revenue and other interest income   1,610    1,620    1,652    1,668    1,747    (10)   (137)   6,550    7,595    (1,045)
Interest expense   591    590    604    582    575    1    16    2,367    2,377    (10)
Depreciation expense on operating lease assets   315    275    170    268    374    40    (59)   1,028    1,897    (869)
Net financing revenue   704    755    878    818    798    (51)   (94)   3,155    3,321    (166)
Other revenue                                                  
Servicing fees   35    39    42    45    51    (4)   (16)   161    226    (65)
Gain on automotive loans, net   -    33    15    -    47    (33)   (47)   48    249    (201)
Other income   49    54    57    64    59    (5)   (10)   224    215    9 
Total other revenue   84    126    114    109    157    (42)   (73)   433    690    (257)
Total net revenue   788    881    992    927    955    (93)   (167)   3,588    4,011    (423)
Provision for loan losses   (33)   25    55    46    19    (58)   (52)   93    286    (193)
Noninterest expense                                                  
Compensation and benefits   115    92    111    116    96    23    19    434    387    47 
Other operating expenses   228    213    267    247    251    15    (23)   955    994    (39)
Total noninterest expense   343    305    378    363    347    38    (4)   1,389    1,381    8 
Income before income tax expense (benefit)  $478   $551   $559   $518   $589   $(73)  $(111)  $2,106   $2,344   $(238)
                                                   
Balance Sheet (Period-End)                                                  
Loans held-for-sale  $425   $464   $-   $-   $-   $(39)  $425                
Finance receivables and loans, net:                                                  
Consumer loans   54,076    50,507    48,925    47,356    41,896    3,569    12,180                
Commercial loans (2)   32,474    30,364    32,973    31,598    31,213    2,110    1,261                
Allowance for loan losses   (736)   (838)   (897)   (899)   (946)   102    210                
Total finance receivables and loans, net  $85,814   $80,033   $81,001   $78,055   $72,163   $5,781   $13,651                
Other assets   10,732    10,035    9,942    9,607    9,730    697    1,002                
Total assets  $96,971   $90,532   $90,943   $87,662   $81,893   $6,439   $15,078                

 

(1) Includes interest on notes receivable from General Motors

(2) Includes Intercompany

 

4Q 2011 Preliminary Results

 

9
 

 

ALLY FINANCIAL INC.
NORTH AMERICAN AUTO - KEY STATISTICS

 

   QUARTERLY TRENDS   CHANGE VS.   FULL YEAR 
U.S. Market  4Q 11   3Q 11   2Q 11   1Q 11   4Q 10   3Q 11   4Q 10   2011   2010   CHANGE 
SAAR (units in millions)   13.4    12.6    12.1    13.0    12.3    0.8    1.1    12.8    11.5    1.3 
Industry light vehicle sales (units in millions)   3.2    3.2    3.3    3.0    3.0    0.1    0.3    12.7    11.6    1.2 
GM market share   18.5%   20.2%   20.5%   19.4%   19.5%             19.7%   19.2%     
Chrysler market share   11.1%   11.6%   10.8%   9.4%   9.0%             10.8%   9.4%     
                                                   
NAO Total Consumer Originations by Type ($ in billions)                                                  
New  $6.5   $7.1   $6.0   $7.8   $7.5   $(0.6)  $(1.0)  $27.3   $26.5   $0.8 
Lease   1.3    1.7    2.1    2.2    1.4    (0.4)   (0.1)   7.3    3.9    3.4 
Used   2.3    2.4    2.2    2.4    1.4    (0.0)   0.9    9.2    5.0    4.2 
Total NAO  $10.1   $11.1   $10.3   $12.4   $10.2   $(1.0)  $(0.1)  $43.8   $35.4   $8.5 
                                                   
NAO Ally Consumer Penetration                                                  
GM   33.6%   32.7%   35.4%   50.9%   49.7%             38.3%   39.5%     
Chrysler   25.6%   32.4%   27.2%   30.4%   32.2%             28.9%   39.2%     
                                                   
U.S. Ally Consumer Penetration                                                  
GM   31.8%   31.6%   36.5%   51.9%   49.7%             38.1%   38.2%     
Chrysler   27.2%   35.2%   30.3%   33.7%   36.3%             31.6%   45.4%     
                                                   
U.S. Ally Consumer Originations (1) ($ in billions)                                                  
GM new retail subvented  $2.0   $1.5   $1.4   $1.8   $2.0   $0.5   $0.0   $6.7   $6.5   $0.2 
GM new retail standard   1.7    1.9    2.1    3.3    2.9    (0.3)   (1.2)   9.0    8.5    0.5 
Chrysler new retail subvented   0.5    0.9    0.5    0.5    0.6    (0.4)   (0.1)   2.5    3.9    (1.4)
Chrysler new retail standard   1.0    1.2    0.9    1.0    0.8    (0.3)   0.2    4.1    3.3    0.7 
Diversified new   0.5    0.4    0.4    0.5    0.3    0.0    0.2    1.8    0.8    1.0 
Lease (2)   1.3    1.7    2.1    2.2    1.4    (0.4)   (0.1)   7.3    3.8    3.4 
Used   2.3    2.3    2.1    2.3    1.3    (0.0)   0.9    9.0    4.7    4.3 
Total U.S. originations  $9.2   $10.0   $9.5   $11.6   $9.3   $(0.9)  $(0.1)  $40.2   $31.6   $8.7 
                                                   
NAO Ally Consumer Originations ($ in billions)                                                  
Total U.S. originations  $9.2   $10.0   $9.5   $11.6   $9.3   $(0.9)  $(0.1)  $40.2   $31.6   $8.7 
Total Canada originations   1.0    1.1    0.8    0.8    1.0    (0.1)   0.0    3.6    3.8    (0.2)
Total NAO originations  $10.1   $11.1   $10.3   $12.4   $10.2   $(1.0)  $(0.1)  $43.8   $35.4   $8.5 
                                                   
U.S. Ally Consumer Originations - Additional Data                                                  
Number of contracts originated (# in thousands)   338    379    367    462    351    (41)   (14)   1,545    1,186    359 
GM subvented (% based on # of new GM units originated) (3)   58%   54%   52%   46%   44%             51%   44%     
Chrysler subvented (% based on # of new Chrysler units originated) (3)   48%   53%   54%   46%   50%             50%   55%     
Average original term in months   66    66    65    63    62    0    5    65    64    1 
                                                   
U.S. Ally Floorplan (4)                                                  
GM penetration   73.9%   75.1%   79.3%   82.3%   81.0%             77.5%   82.4%     
Chrysler penetration   63.3%   66.0%   68.1%   69.9%   71.6%             66.7%   71.5%     
Floorplan outstandings (avg. $ in billions)  $24.9   $24.3   $25.1   $23.6   $24.1   $0.6   $0.8   $24.5   $21.7   $2.8 
                                                   
Loan Book - NAO Key Statistics ($ in billions)                                                  
Dollar amount of contracts outstanding at end of period  $63.7   $59.8   $57.7   $55.9   $50.6   $3.9   $13.1   $63.7   $50.6   $13.1 
Dollar amount of new GM wholesale outstanding (average)  $15.9   $15.7   $16.5   $15.4   $16.6   $0.1   $(0.7)  $15.8   $14.9   $0.9 
Dollar amount of new Chrysler wholesale outstanding (average)  $7.4   $7.7   $8.2   $7.2   $6.5   $(0.3)  $0.9   $7.6   $5.8   $1.8 
                                                   
U.S. Off-Lease Remarketing                                                  
Sales proceeds on scheduled lease terminations (36-month) per vehicle - Serviced  $23,365   $20,600   $20,581   $19,615   $20,218   $2,765   $3,147   $20,257   $19,388   $868 
Off-lease vehicles terminated - Serviced (# in units)   27,737    55,420    74,131    91,336    84,167    (27,683)   (56,430)   248,624    376,203    (127,579)
Sales proceeds on scheduled lease terminations (36-month) per vehicle - On-balance sheet  $23,365   $20,608   $20,356   $19,871   $20,223   $2,757   $3,142   $20,258   $19,393   $865 
Off-lease vehicles terminated - On-balance sheet (# in units)   27,733    55,416    74,109    91,270    83,598    (27,683)   (55,865)   248,528    352,956    (104,428)

 

(1) Some standard rate loan originations contain manufacturer sponsored cash back rebate incentives. Some lease originations contain rate subvention. While Ally may jointly develop marketing programs for these originations, Ally does not have exclusive rights to such originations under operating agreements with manufacturers

(2) Includes GM and Chrysler lease originations

(3) Represents subvented originations inclusive of leases not subject to exclusivity agreements

(4) Penetration rates are based on the trailing four month average end of period dealer stocks

 

4Q 2011 Preliminary Results

 

10
 

 

ALLY FINANCIAL INC.
INTERNATIONAL AUTO - CONDENSED FINANCIAL STATEMENTS

 

($ in millions)                                        
   QUARTERLY TRENDS   CHANGE VS.   FULL YEAR 
Income Statement  4Q 11   3Q 11   2Q 11   1Q 11   4Q 10   3Q 11   4Q 10   2011   2010   CHANGE 
Net financing revenue                                                  
Consumer  $291   $301   $314   $287   $268   $(10)  $23   $1,193   $1,075   $118 
Commercial (1)   96    111    111    104    101    (15)   (5)   422    379    43 
Loans held-for-sale   -    -    -    -    3    -    (3)   -    15    (15)
Operating leases   4    3    4    4    9    1    (5)   15    21    (6)
Other interest income (2)   20    23    23    26    20    (3)   -    92    59    33 
Total financing revenue and other interest income   411    438    452    421    401    (27)   10    1,722    1,549    173 
Interest expense   253    270    274    253    248    (17)   5    1,050    885    165 
Depreciation expense on operating lease assets   1    1    6    2    2    -    (1)   10    10    - 
Net financing revenue   157    167    172    166    151    (10)   6    662    654    8 
Other revenue                                                  
Gain on automotive loans, net   -    -    -    -    6    -    (6)   -    21    (21)
Other income   64    61    56    58    43    3    21    239    219    20 
Total other revenue   64    61    56    58    49    3    15    239    240    (1)
Total net revenue   221    228    228    224    200    (7)   21    901    894    7 
Provision for loan losses   23    (2)   7    37    29    25    (6)   65    54    11 
Noninterest expense                                                  
Compensation and benefits   40    44    44    44    34    (4)   6    172    155    17 
Other operating expenses   137    97    108    112    129    40    8    454    480    (26)
Total noninterest expense   177    141    152    156    163    36    14    626    635    (9)
Income from cont. ops before income tax expense (benefit)  $21   $89   $69   $31   $8   $(68)  $13   $210   $205   $5 
                                                   
Balance Sheet (Period-End)                                                  
Cash, trading and investment securities  $25   $176   $192   $157   $205   $(151)  $(180)               
Loans held-for-sale   -    -    -    -    -    -    -                
Finance receivables and loans, net:                                                  
Consumer loans   9,383    9,198    9,810    9,512    9,359    185    24                
Commercial loans (3)   4,912    4,778    5,214    5,128    4,814    134    98                
Allowance for loan losses   (182)   (174)   (207)   (207)   (186)   (8)   4                
Total finance receivables and loans, net  $14,113   $13,802   $14,817   $14,433   $13,987   $311   $126                
Other assets   1,244    1,336    1,573    1,705    1,787    (92)   (543)               
Total assets  $15,382   $15,314   $16,582   $16,295   $15,979   $68   $(597)               

 

(1) Includes interest on notes receivable from General Motors

(2) Includes interest bearing cash

(3) Includes intercompany

 

4Q 2011 Preliminary Results

 

11
 

 

ALLY FINANCIAL INC.
INTERNATIONAL AUTO - KEY STATISTICS

 

($ in millions)                                        
   QUARTERLY TRENDS   CHANGE VS.   FULL YEAR 
Consumer Originations  4Q 11   3Q 11   2Q 11   1Q 11   4Q 10   3Q 11   4Q 10   2011   2010   CHANGE 
Germany  $385   $512   $489   $287   $326   $(127)  $59   $1,673   $1,119   $553 
Brazil   573    535    481    476    599    37    (26)   2,065    1,714    351 
U.K.   300    341    159    155    195    (41)   105    955    735    220 
Mexico   154    158    140    157    169    (4)   (16)   608    540    68 
China (1)   880    835    716    588    944    45    (64)   3,019    2,585    434 
Other   333    257    282    235    255    76    78    1,107    919    188 
Total Continuing International Operations  $2,624   $2,638   $2,267   $1,898   $2,488   $(14)  $136   $9,427   $7,612   $1,815 
                                                   
Consumer Origination Statistics (Continuing Operations)                                                  
Number of contracts originated (# thousands)   186    174    150    131    175    12    12    641    536    104 
Dollar amount of contracts originated  $2,624   $2,638   $2,267   $1,898   $2,488   $(14)  $136   $9,427   $7,612   $1,815 
Dollar amount of retail contracts outstanding at end of period  $9,383   $9,198   $9,810   $9,513   $9,359   $185   $24   $9,383   $9,359   $24 
GM subvented (% based on # of GM units originated) (2)   53%   59%   50%   47%   49%             53%   43%     
                                                   
Mix of retail & lease contract originations (% based on # of units)                                                  
New   95%   94%   93%   93%   96%             94%   95%     
Used   5%   6%   7%   7%   4%             6%   5%     

 

(1) Originations in China are part of a joint-venture in which Ally owns a minority interest

(2) Represents subvented originations inclusive of leases not subject to exclusivity agreements

 

4Q 2011 Preliminary Results

 

12
 

 

ALLY FINANCIAL INC.
INSURANCE - CONDENSED FINANCIAL STATEMENTS AND KEY STATISTICS

  

($ in millions)                                        
   QUARTERLY TRENDS   CHANGE VS.   FULL YEAR 
Income Statement  4Q 11   3Q 11   2Q 11   1Q 11   4Q 10   3Q 11   4Q 10   2011   2010   CHANGE 
Insurance premiums and other income                                                  
Insurance premiums and service revenue earned  $381   $387   $395   $393   $414   $(6)  $(33)  $1,556   $1,721   $(165)
Investment income   59    44    70    79    133    15    (74)   252    444    (192)
Other income   12    16    18    13    19    (4)   (7)   59    75    (16)
Total insurance premiums and other income   452    447    483    485    566    5    (114)   1,867    2,240    (373)
Expense                                                  
Insurance losses and loss adjustment expenses   142    162    221    157    186    (20)   (44)   682    784    (102)
Acquisition and underwriting expenses                                                  
Compensation and benefit expense   23    19    24    27    24    4    (1)   93    94    (1)
Insurance commission expense   135    120    122    122    145    15    (10)   500    578    (78)
Other expense   59    35    44    48    46    24    13    185    222    (37)
Total acquisition and underwriting expense   217    174    190    197    215    43    2    778    894    (116)
Total expense   359    336    411    354    401    23    (42)   1,460    1,678    (218)
Income from cont. ops before income tax expense (benefit)  $93   $111   $72   $131   $165   $(18)  $(72)  $407   $562   $(155)
                                                   
Balance Sheet (Period-End)                                                  
Cash, trading and investment securities  $5,267   $5,494   $5,688   $5,537   $5,351   $(227)  $(84)  $5,267   $5,351   $(84)
Finance receivables and loans, net   5    5    5    5    5    -    -    5    5    - 
Premiums receivable and other insurance assets   1,970    2,141    2,239    2,278    2,270    (171)   (300)   1,970    2,270    (300)
Other assets   794    575    601    1,204    1,163    219    (369)   794    1,163    (369)
Total assets  $8,036   $8,215   $8,533   $9,024   $8,789   $(179)  $(753)  $8,036   $8,789   $(753)
                                                   
Key Statistics (Continuing Operations)                                                  
Written Premiums                                                  
Dealer Products & Services  $232   $280   $277   $246   $221   $(48)  $10   $1,035   $957   $78 
International(1)   104    100    120    128    89    4    14    451    503    (52)
Total written premiums and revenue  $335   $380   $397   $374   $311   $(45)  $25   $1,486   $1,460   $26 
                                                   
Loss ratio   36.3%   40.6%   54.5%   38.8%   43.2%             42.6%   43.9%     
Underwriting expense ratio   55.8%   43.5%   47.3%   48.5%   50.2%             48.7%   50.2%     
Combined ratio   92.1%   84.1%   101.7%   87.4%   93.4%             91.3%   94.1%     

 

(1) Includes written premiums held at Corporate

 

4Q 2011 Preliminary Results

 

13
 

 

 

ALLY FINANCIAL INC.
MORTGAGE ORIGINATION AND SERVICING - CONDENSED FINANCIAL STATEMENTS AND KEY STATISTICS

 

($ in millions)                                        
   QUARTERLY TRENDS   CHANGE VS.   FULL YEAR 
Income Statement  4Q 11   3Q 11   2Q 11   1Q 11   4Q 10   3Q 11   4Q 10   2011   2010   CHANGE 
Net financing (loss) revenue                                                  
Total financing revenue and other interest income  $102   $110   $82   $81   $115   $(8)  $(13)  $375   $378   $(3)
Interest expense   109    103    90    98    94    6    15    400    343    57 
Net financing (loss) revenue   (7)   7    (8)   (17)   21    (14)   (28)   (25)   35    (60)
Servicing fees   292    297    302    312    314    (5)   (22)   1,203    1,270    (67)
Servicing asset valuation and hedge activities, net   (126)   (471)   (105)   (87)   (213)   345    87    (789)   (394)   (395)
Total servicing income, net   166    (174)   197    225    101    340    65    414    876    (462)
Gain on mortgage loans, net   111    51    63    72    206    60    (95)   297    607    (310)
Other income, net of losses   95    61    48    43    83    34    12    247    255    (8)
Total other revenue   372    (62)   308    340    390    434    (18)   958    1,738    (780)
Total net revenue   365    (55)   300    323    411    420    (46)   933    1,773    (840)
Provision for loan losses   -    (1)   -    2    -    1    -    1    (29)   30 
Noninterest expense                                                  
Compensation and benefits expense   82    60    66    65    62    22    20    273    249    24 
Representation and warranty expense   (1)   2    (0)   (2)   (1)   (3)   -    (0)   (22)   21 
Other operating expense   521    176    181    173    177    345    344    1,050    655    396 
Total noninterest expense   602    238    247    236    238    364    364    1,323    882    441 
(Loss) income from cont. ops before income tax expense (benefit)  $(237)  $(292)  $53   $85   $173   $55   $(410)  $(391)  $920   $(1,311)
                                                   
Balance Sheet (Period-End)                                                  
Cash, trading and investment securities  $14   $16   $17   $18   $24   $(2)  $(10)               
Loans held-for-sale   6,470    5,996    5,152    5,539    9,088    474    (2,618)               
Finance receivables and loans, net:                                                  
Consumer loans   2,835    2,637    2,458    2,294    2,079    198    756                
Commercial loans   1,887    1,592    1,185    820    1,540    295    347                
Allowance for loan losses   (17)   (16)   (14)   (14)   (14)   (1)   (3)               
Total finance receivables and loans, net  $4,705   $4,213   $3,629   $3,100   $3,605   $492   $1,100                
Mortgage servicing rights   2,519    2,663    3,701    3,774    3,738    (144)   (1,219)               
Other assets   9,316    10,994    6,926    6,283    7,226    (1,678)   2,090                
Total assets  $23,024   $23,882   $19,425   $18,714   $23,681   $(858)  $(657)               
                                                   
Key Statistics ($ in billions)                                                  
Mortgage loan production (1)                                                  
Prime conforming  $13.7   $13.3   $10.6   $9.9   $20.0   $0.3   $(6.4)               
Prime non-conforming   0.5    0.5    0.3    0.4    0.4    0.1    0.2                
Government   2.3    1.8    1.5    1.5    2.8    0.5    (0.5)               
Total mortgage loan production  $16.5   $15.6   $12.3   $11.8   $23.2   $0.9   $(6.8)               
                                                   
Primary servicing UPB - period end (2)  $351   $355   $354   $353   $356   $(5)  $(5)               

 

(1) Excludes the International portfolio as ResMor has been reclassified from Origination and Servicing to Legacy Portfolio and Other

(2) Excludes loans for which we acted as a subservicer

 

4Q 2011 Preliminary Results

 

14
 

 

ALLY FINANCIAL INC.
LEGACY PORTFOLIO AND OTHER - CONDENSED FINANCIAL STATEMENTS

 

($ in millions)                                        
   QUARTERLY TRENDS   CHANGE VS.   FULL YEAR 
Income Statement  4Q 11   3Q 11   2Q 11   1Q 11   4Q 10   3Q 11   4Q 10   2011   2010   CHANGE 
Net financing revenue                                                  
Total financing revenue and other interest income  $167   $179   $209   $218   $263   $(12)  $(96)  $773   $1,333   $(560)
Interest expense   105    111    132    141    165    (6)   (60)   489    728    (239)
Net financing revenue   62    68    77    77    98    (6)   (36)   284    605    (321)
Total servicing income, net   (1)   (1)   (2)   (1)   (1)   -    -    (5)   (8)   3 
Gain on mortgage loans, net   39    6    34    18    141    33    (102)   97    383    (286)
Other income, net of losses   (26)   (42)   (18)   (4)   (25)   16    (1)   (90)   (115)   25 
Total other revenue   12    (37)   14    13    115    49    (103)   2    260    (258)
Total net revenue   74    31    91    90    213    43    (139)   286    865    (579)
Provision for loan losses   35    32    37    45    23    3    12    149    173    (24)
Noninterest expense                                                  
Compensation and benefits expense   30    27    34    36    17    3    13    127    77    50 
Representation and warranty expense   45    67    184    28    210    (22)   (165)   324    692    (368)
Other operating expense   29    22    14    23    16    7    13    88    190    (102)
Total noninterest expense   104    116    232    87    243    (12)   (139)   539    959    (420)
(Loss) from cont. ops before income tax expense (benefit)  $(65)  $(117)  $(178)  $(42)  $(53)  $52   $(12)  $(402)  $(267)  $(135)
                                                   
Balance Sheet (Period-End)                                                  
Cash, trading and investment securities  $638   $657   $713   $770   $724   $(19)  $(86)               
Loans held-for-sale   1,642    2,258    2,016    1,951    2,323    (616)   (681)               
Finance receivables and loans, net                                                  
Consumer loans (1)   7,993    8,472    8,900    9,246    9,683    (479)   (1,690)               
Commercial loans   38    50    69    93    120    (12)   (82)               
Allowance for loan losses   (515)   (526)   (552)   (567)   (592)   11    77                
Total finance receivables and loans, net  $7,516   $7,996   $8,417   $8,772   $9,211   $(480)  $(1,695)               
Other assets   409    709    752    766    847    (300)   (438)               
Assets of discontinued operations   685    -    -    -    -    685    685                
Total assets  $10,890   $11,620   $11,898   $12,259   $13,105   $(730)  $(2,215)               

 

(1) Consumer loans held for investment ("HFI") consists primarily of Ally Bank HFI (originated pre-2009) and legacy securitizations

 

4Q 2011 Preliminary Results

 

15
 

 

ALLY FINANCIAL INC.
RESCAP, LLC - KEY FINANCIAL INFORMATION

 

($ in millions)                                        
   QUARTERLY TRENDS   CHANGE VS.   FULL YEAR 
Income Statement  4Q 11   3Q 11   2Q 11   1Q 11   4Q 10   3Q 11   4Q 10   2011   2010   CHANGE 
Net (loss) income  $(269)  $(442)  $(113)  $40   $63   $173   $(332)  $(782)  $575   $(1,357)
                                                   
Balance Sheet (Period-End)                                                  
Cash & cash equivalents  $619   $623   $664   $719   $672   $(4)  $(54)               
Mortgage loans held-for-sale   4,250    4,580    4,453    4,511    4,655    (331)   (405)               
Mortgage loans held-for-investment, net   1,009    1,027    1,137    1,194    1,296    (18)   (287)               
Mortgage servicing rights   1,233    1,330    1,926    2,046    1,992    (97)   (758)               
Other assets   9,738    11,579    7,703    7,033    8,217    (1,841)   1,521                
Total assets  $16,849   $19,139   $15,883   $15,503   $16,832   $(2,290)  $17                
                                                   
Total liabilities  $16,745   $18,808   $15,111   $14,619   $15,986   $(2,063)  $759                
                                                   
Tangible net worth(1)  $104   $331   $772   $884   $846   $(228)  $(743)               

 

(1) As previously disclosed, Ally Financial Inc. has made a capital contribution to ResCap of approximately $196.5 million, which was provided through forgiveness of intercompany debt. This contribution results in a pro-forma tangible net worth at ResCap of $300 million

 

4Q 2011 Preliminary Results

 

16
 

 

ALLY FINANCIAL INC.
MORTGAGE OPERATIONS ASSET BREAKOUT (PERIOD-END)

 

($ in billions)                                    
   CURRENT QUARTER   HISTORICAL QUARTERLY TRENDS   CHANGE VS. 
   Origination and   Legacy Portfolio   Total   Total   Total   Total   Total   Total   Total 
ResCap, LLC Assets  Servicing   & Other   12/31/11   9/30/11   6/30/11   3/31/11   12/31/10   9/30/11   12/31/10 
Cash and cash equivalents  $0.0   $0.6   $0.6   $0.6   $0.7   $0.7   $0.7   $(0.0)  $(0.1)
Accounts receivable (servicing advances, etc)   3.0    0.1    3.0    2.6    2.4    2.5    2.5    0.4    0.5 
Securitized assets (1)   2.3    1.1    3.5    3.6    3.6    3.7    3.9    (0.1)   (0.5)
Derivatives and derivative collateral   5.9    0.0    6.0    8.0    4.3    3.5    4.5    (2.1)   1.4 
Restricted cash and other assets   0.2    0.3    0.6    0.7    0.7    0.7    0.7    (0.1)   (0.2)
Cash, accounting and other less value sensitive assets   11.4    2.2    13.6    15.5    11.7    11.1    12.4    (1.9)   1.2 
                                              
Mortgage servicing rights   1.2    -    1.2    1.3    1.9    2.0    2.0    (0.1)   (0.8)
Other assets (2)   0.0    0.1    0.1    0.2    0.3    0.3    0.3    (0.0)   (0.2)
Assets of international operations held-for-sale   -    -    -    -    -    -    -    -    - 
Mortgage loans held-for-sale   0.3    1.5    1.9    2.1    2.0    2.1    2.1    (0.2)   (0.3)
Assets carried at fair or net realizable value   1.6    1.7    3.2    3.6    4.2    4.4    4.4    (0.4)   (1.2)
Total ResCap, LLC Assets  $13.0   $3.8   $16.8   $19.1   $15.9   $15.5   $16.8   $(2.3)  $0.0 
                                              
Other Mortgage Assets                                             
Ally Bank HFI (3)  $2.8   $6.4   $9.3   $9.3   $9.4   $9.5   $9.5   $(0.0)  $(0.3)
Ally Bank HFS   3.9    0.0    3.9    3.2    2.5    2.9    6.4    0.7    (2.5)
Ally Bank warehouse lines   1.9    -    1.9    1.6    1.2    0.8    1.5    0.3    0.3 
Ally Bank MSR   1.3    -    1.3    1.3    1.8    1.7    1.7    (0.0)   (0.5)
Other non-ResCap assets (4)   0.2    0.6    0.8    1.0    0.6    0.6    0.7    (0.2)   0.1 
Total Mortgage Operations Assets  $23.0   $10.9   $33.9   $35.5   $31.3   $31.0   $36.8   $(1.6)  $(2.9)

 

(1) 12/31/2011 includes domestic securitized assets of $0.8 billion, international securitized assets of $0.3 billion and $2.4 billion of domestic held for sale ("HFS") assets related to off-balance sheet securitizations where ResCap has the option, but not the obligation to repurchase loans

(2) Includes REO, AFS, trading securities, warehouse loans, model homes and other assets

(3) 12/31/2011 Legacy Portfolio & Other amount primarily consists of loans originated prior to 1/1/2009

(4) Includes Ally Bank Cash, Accounts Receivables and Other Assets, as well as ResMor Trust, Disc Ops, and intercompany eliminations

 

4Q 2011 Preliminary Results

 

17
 

 

ALLY FINANCIAL INC.
CORPORATE AND OTHER - CONDENSED FINANCIAL STATEMENTS

 

($ in millions)                                        
Includes CFG  QUARTERLY TRENDS   CHANGE VS.   FULL YEAR 
Income Statement  4Q 11   3Q 11   2Q 11   1Q 11   4Q 10   3Q 11   4Q 10   2011   2010   CHANGE 
Net financing loss                                                  
Total financing revenue and other interest income  $24   $26   $41   $47   $41   $(2)  $(17)  $138   $165   $(27)
Interest expense                                                  
Core original issue discount amortization   137    225    254    296    301    (88)   (164)   912    1,199    (288)
Other interest expense   222    212    213    273    285    10    (63)   920    1,065    (144)
Total interest expense   359    437    467    569    586    (78)   (227)   1,832    2,264    (432)
Net financing loss   (335)   (411)   (426)   (522)   (545)   76    210    (1,694)   (2,099)   405 
Other revenue                                                - 
Loss on extinguishment of debt (1)   -    -    (25)   (39)   -    -    -    (64)   (123)   59 
Other gain on investments, net   6    48    40    25    35    (42)   (29)   119    146    (27)
Other income, net of losses   12    (8)   92    39    10    20    2    135    (65)   200 
Total other revenue (expense)   18    40    107    25    45    (22)   (27)   190    (42)   232 
Total net expense   (317)   (371)   (319)   (497)   (500)   54    183    (1,504)   (2,141)   637 
Provision for loan losses   (19)   (4)   (49)   (17)   -    (15)   (19)   (89)   (42)   (47)
Noninterest expense                                                - 
Compensation and benefits expense   152    51    136    136    173    101    (21)   475    614    (139)
Other operating expense   1    30    (22)   8    (16)   (29)   17    17    (88)   105 
Total noninterest expense   153    81    114    144    157    72    (4)   492    526    (34)
Loss from cont. ops before income tax (benefit) expense  $(451)  $(448)  $(384)  $(624)  $(657)  $(3)  $206   $(1,907)  $(2,625)  $718 
                                                   
Balance Sheet (Period-End)                                                  
Cash, trading and investment securities  $22,847   $24,544   $24,563   $21,940   $20,452   $(1,697)  $2,395                
Loans held-for-sale   20    27    -    6    -    (7)   20                
Finance receivables and loans, net                                                  
Consumer loans   -    1    -    (1)   -    (1)   -                
Commercial loans (2)   1,152    1,108    1,186    1,408    1,704    44    (552)               
Allowance for loan losses   (53)   (67)   (69)   (119)   (135)   14    82                
Total finance receivables and loans, net   1,099    1,042    1,117    1,288    1,569    57    (470)               
Other assets   5,671    6,780    5,828    6,516    6,540    (1,109)   (869)               
Total assets  $29,637   $32,393   $31,508   $29,750   $28,561   $(2,756)  $1,076                
                                                   
OID Amortization Schedule  2012   2013   2014   2015 and After                               
Remaining Core OID Amortization (as of 12/31/2011)  $336   $249   $176   Avg/Yr=$75                               

 

(1) Includes $20 million and $30 million of accelerated OID amortization in 2Q11, and 1Q11 respectively, and $101 million in Full Year 2010

(2) Includes Intercompany

 

4Q 2011 Preliminary Results

 

18
 

 

ALLY FINANCIAL INC.
CREDIT RELATED INFORMATION

 

($ in millions)                            
   QUARTERLY TRENDS   CHANGE VS. 
Asset Quality - Consolidated (1)  4Q 11   3Q 11   2Q 11   1Q 11   4Q 10   3Q 11   4Q 10 
Ending Loan Balance  $113,920   $107,871   $109,779   $106,488   $101,398   $6,049   $12,522 
30+ Accruing DPD  $1,038   $972   $979   $963   $1,114   $66   $(76)
30+ Accruing DPD %   0.9%   0.9%   0.9%   0.9%   1.1%          
Non-Performing Loans (NPLs)  $906   $977   $1,191   $1,244   $1,508   $(71)  $(602)
Net Charge-Offs (NCOs)  $120   $123   $121   $189   $240   $(3)  $(121)
Net Charge-Off Rate (2)   0.43%   0.45%   0.45%   0.73%   0.97%          
                                    
Provision Expense  $6   $50   $50   $113   $71   $(44)  $(65)
Allowance Balance (ALLL)  $1,503   $1,621   $1,739   $1,806   $1,873   $(118)  $(370)
                                    
ALLL as % of Loans (3)   1.3%   1.5%   1.6%   1.7%   1.8%          
ALLL as % of NPLs (3)   166.0%   165.8%   146.0%   145.2%   124.3%          
ALLL as % of NCOs (3)   313.8%   329.3%   358.0%   239.1%   194.8%          

 

(1) Loans within this table are classified as held-for-investment recorded at historical cost as these loans are included in our allowance for loan losses

(2) Net charge-off ratios are calculated as annualized net charge-offs divided by average outstanding finance receivables and loans excluding loans measured at fair value and loans held-for-sale

(3) ALLL coverage ratios are based on the allowance for loan losses related to loans held-for-investment excluding those loans held at fair value as a percentage of the unpaid principal balance, net of premiums and discounts

 

4Q 2011 Preliminary Results

 

19
 

 

ALLY FINANCIAL INC.
CREDIT RELATED INFORMATION, CONTINUED

 

($ in millions)                        
                         
North American Auto  QUARTERLY TRENDS   CHANGE VS. 
Consumer  4Q 11   3Q 11   2Q 11   1Q 11   4Q 10   3Q 11   4Q 10 
Allowance balance  $628   $724   $763   $768   $813   $(96)  $(185)
Total consumer loans  $54,076   $50,507   $48,925   $47,356   $41,896   $3,569   $12,181 
Coverage ratio   1.2%   1.4%   1.6%   1.6%   1.9%          
                                    
Commercial                                   
Allowance balance  $108   $114   $134   $131   $132   $(6)  $(24)
Total commercial loans  $32,475   $30,395   $32,994   $31,615   $31,229   $2,081   $1,247 
Coverage ratio   0.3%   0.4%   0.4%   0.4%   0.4%          
                                    
International Auto                                   
Consumer                                   
Allowance balance  $138   $127   $148   $148   $156   $11   $(18)
Total consumer loans  $9,383   $9,198   $9,810   $9,512   $9,359   $185   $23 
Coverage ratio   1.5%   1.4%   1.5%   1.6%   1.7%          
                                    
Commercial                                   
Allowance balance  $44   $47   $58   $58   $30   $(2)  $14 
Total commercial loans  $4,795   $4,318   $4,717   $4,633   $4,400   $477   $395 
Coverage ratio   0.9%   1.1%   1.2%   1.3%   0.7%          
                                    
Mortgage HFI (1)                                   
Consumer                                   
Allowance balance  $516   $532   $558   $563   $580   $(16)  $(64)
Total consumer loans  $9,993   $10,269   $10,412   $10,568   $10,748   $(276)  $(755)
Coverage ratio   5.2%   5.2%   5.4%   5.3%   5.4%          
                                    
Non-performing loans  $339   $365   $398   $412   $561   $(26)  $(222)
Allowance as a % of NPLs   152.1%   145.7%   140.0%   136.6%   103.4%          
                                    
Commercial                                   
Allowance balance  $16   $10   $8   $18   $26   $6   $(10)
Total commercial loans  $1,925   $1,642   $1,254   $913   $1,660   $283   $265 
Coverage ratio   0.8%   0.6%   0.7%   1.9%   1.6%          
                                    
Non-performing loans  $13   $48   $67   $92   $110   $(36)  $(98)
Allowance as a % of NPLs   126.1%   21.0%   12.3%   19.2%   23.4%          

 

(1) ALLL coverage ratios are based on the allowance for loan losses related to loans held-for-investment excluding those loans held at fair value as a percentage of the unpaid principal balance, net of premiums and discounts

 

4Q 2011 Preliminary Results

 

20
 

 

ALLY FINANCIAL INC.
CREDIT RELATED INFORMATION, CONTINUED

 

($ in millions)                            
   QUARTERLY TRENDS   CHANGE VS. 
Global Auto Delinquencies - Managed Retail Contract Amount (1)  4Q 11   3Q 11   2Q 11   1Q 11   4Q 10   3Q 11   4Q 10 
Nuvell delinquent contract $  $131   $126   $149   $142   $229   $5   $(98)
Delinquent contract $ (excluding Nuvell)  $806   $735   $722   $663   $765   $71   $41 
% of retail contract $ outstanding   1.47%   1.43%   1.48%   1.42%   1.94%          
% of retail contract $ outstanding (excluding Nuvell)   1.29%   1.25%   1.27%   1.21%   1.56%          
                                    
Global Auto Annualized Credit Losses - Managed Retail Contract Amount                                   
Nuvell credit losses  $16   $17   $14   $26   $36   $(1)  $(20)
Credit losses (excluding Nuvell)  $63   $55   $46   $85   $72   $8   $(9)
% of avg. managed assets   0.51%   0.48%   0.41%   0.83%   0.88%          
% of avg. managed assets (excluding Nuvell)   0.41%   0.37%   0.33%   0.66%   0.62%          
                                    
North American Auto                                   
Annualized consumer net charge-offs as a % of on-balance sheet assets   0.51%   0.45%   0.39%   0.83%   0.92%          
Managed retail contracts over 30 days delinquent   1.51%   1.41%   1.45%   1.34%   2.02%          
                                    
Repossessions as a % of average number of managed retail contracts outstanding   1.42%   1.54%   1.36%   1.83%   2.23%          
Severity of loss per unit serviced - Retail                                   
New  $7,957   $7,584   $7,631   $7,907   $8,314   $1,311   $(358)
Used  $6,129   $6,144   $6,260   $6,322   $6,920   $2,502   $(791)
                                    
Lease residual value (sales proceeds as % of ALG)   127%   128%   127%   122%   119%          
                                    
International Auto                                   
Annualized consumer net charge-offs as a % of on-balance sheet assets   0.46%   0.60%   0.50%   0.80%   0.72%          
Managed retail contracts over 30 days delinquent   1.24%   1.57%   1.64%   1.81%   1.56%          
                                    
Repossessions as a % of average number of managed retail contracts outstanding   0.48%   0.51%   0.64%   0.68%   0.59%          

 

(1) $ Amount of accruing contracts greater than 30 days past due

 

4Q 2011 Preliminary Results

 

21
 

 

ALLY FINANCIAL INC.
CAPITAL

 

($ in billions)                            
   QUARTERLY TRENDS   CHANGE VS. 
Cost of Funds  4Q 11   3Q 11   2Q 11   1Q 11   4Q 10   3Q 11   4Q 10 
Ally Financial's worldwide cost of borrowing (incl. OID)   3.9%   4.2%   4.6%   5.1%   5.2%          
Ally Financial's worldwide cost of borrowing (excl. OID)   3.5%   3.6%   3.8%   4.1%   4.1%          
                                    
Capital                                   
Risk-weighted assets  $154.2   $149.7   $151.0   $150.8   $148.0   $4.5   $6.2 
                                    
Tier 1 capital ratio   13.7%   14.3%   14.6%   14.7%   15.0%          
Tier 1 common capital ratio   7.5%   8.0%   8.4%   8.4%   8.6%          
Total risk-based capital ratio   14.7%   15.5%   15.9%   16.0%   16.4%          
                                    
Tangible common equity / Tangible assets   6.5%   6.8%   7.3%   7.5%   7.6%          
Tangible common equity / Risk-weighted assets   7.7%   8.2%   8.6%   8.6%   8.8%          

 

   QUARTERLY TRENDS   CHANGE VS. 
   4Q 11   3Q 11   2Q 11   1Q 11   4Q 10   3Q 11   4Q 10 
Shareholders’ equity  $19.3   $19.7   $20.4   $20.4   $20.5   $(0.4)  $(1.2)
less:   Goodwill and certain other intangibles   (0.5)   (0.5)   (0.5)   (0.5)   (0.5)   -    - 
Unrealized (gains) losses and other adjustments   (0.3)   (0.3)   (0.3)   (0.3)   (0.3)   -    - 
add:    Trust preferred securities   2.5    2.5    2.5    2.5    2.5    -    - 
Tier 1 capital  $21.1   $21.5   $22.1   $22.1   $22.2   $(0.4)  $(1.1)
                                    
Tier 1 capital  $21.1   $21.5   $22.1   $22.1   $22.2   $(0.4)  $(1.1)
less:   Preferred equity   (6.9)   (6.9)   (6.9)   (6.9)   (7.0)   -    0.1 
Trust preferred securities   (2.5)   (2.5)   (2.5)   (2.5)   (2.5)   -    - 
Tier 1 common capital (1)  $11.6   $12.0   $12.6   $12.7   $12.7   $(0.4)  $(1.1)
                                    
Tier 1 capital  $21.1   $21.5   $22.1   $22.1   $22.2   $(0.4)  $(1.1)
add:    Qualifying subordinated debt and redeemable preferred stock   0.2    0.2    0.2    0.2    0.2    -    - 
Allowance for loan and lease losses includible in Tier 2 capital and other adjustments   1.4    1.5    1.6    1.7    1.8    (0.1)   (0.4)
Total risk-based capital  $22.7   $23.2   $24.0   $24.1   $24.2   $(0.5)  $(1.5)
                                    
Total shareholders' equity  $19.3   $19.7   $20.4   $20.4   $20.5   $(0.4)  $(1.2)
less:   Preferred equity   (6.9)   (6.9)   (6.9)   (6.9)   (7.0)   -    0.1 
Goodwill and intangible assets   (0.5)   (0.5)   (0.5)   (0.5)   (0.5)   -    - 
Tangible common equity (2)  $11.9   $12.3   $13.0   $12.9   $13.0   $(0.4)  $(1.1)
                                    
Total assets  $183.9   $182.0   $178.9   $173.7   $172.0   $1.9   $11.9 
less:   Goodwill and intangible assets   (0.5)   (0.5)   (0.5)   (0.5)   (0.5)   -    - 
Tangible assets  $183.4   $181.4   $178.4   $173.2   $171.5   $2.0   $11.9 

 

Note: Numbers may not foot due to rounding

(1) We define Tier 1 common as Tier 1 capital less noncommon elements including qualified perpetual preferred stock qualifying minority interest in subsidiaries, and qualifying trust preferred securities. Ally considers various measures when evaluating capital utilization and adequacy, including the Tier 1 common capital ratio, in addition to capital ratios defined by banking regulators. This calculation is intended to complement the capital ratios defined by banking regulators for both absolute and comparative purposes. Because GAAP does not include capital ratio measures, Ally believes there are no comparable GAAP financial measures to these ratios. Tier 1 common capital is not formally defined by GAAP or codified in the federal banking regulations and, therefore, is considered to be a non-GAAP financial measure. Ally believes the Tier 1 common capital ratio is important because we believe analysts and banking regulators may assess our capital adequacy using this ratio. Additionally, presentation of this measure allows readers to compare certain aspects of our capital adequacy on the same basis to other companies in the industry

 

(2) We define tangible common equity as common stockholders’ equity less goodwill and identifiable intangible assets (other than mortgage servicing rights), net of deferred tax liabilities. Ally considers various measures when evaluating capital adequacy, including tangible common equity. Tangible common equity is not formally defined by GAAP or codified in the federal banking regulations and, therefore, is considered to be a non-GAAP financial measure. Ally believes that tangible common equity is important because we believe analysts and banking regulators may assess our capital adequacy using this measure. Additionally, presentation of this measure allows readers to compare certain aspects of our capital adequacy on the same basis to other companies in the industry

 

4Q 2011 Preliminary Results

 

22
 

 

ALLY FINANCIAL INC.
LIQUIDITY

 

($ in billions)                        
   4Q 11   3Q 11   CHANGE 
Available Liquidity  Parent (1)   Ally Bank   Parent (1)   Ally Bank   Parent (1)   Ally Bank 
Cash and Cash Equivalents  $8.0   $3.6   $10.1   $4.5   $(2.2)  $(0.8)
Unencumbered Securities (2)   0.8    6.4    0.4    5.2    0.4    1.1 
Current Committed Unused Capacity (3)   10.1    4.9    11.7    6.1    (1.6)   (1.2)
Subtotal  $18.9   $14.9   $22.2   $15.8   $(3.3)  $(0.9)
Ally Bank Intercompany Loan (4)   4.9    (4.9)   2.2    (2.2)   2.7    (2.7)
Total Current Available Liquidity  $23.8   $10.0   $24.4   $13.6   $(0.6)  $(3.6)
Forward Commited Unused Capacity (5)   3.1    -    1.5    -    1.6    - 
Total Available Liquidity  $26.9   $10.0   $25.9   $13.6   $1.0   $(3.6)
                         
Unsecured Long-Term Debt Maturity Profile   2012   2013   2014   2015   2016   2017 and
After		 
Consolidated remaining maturities  $12.0   $2.3   $5.8   $3.6   $1.5   $19.0 

 

(1) Parent defined as Ally Consolidated less Ally Bank, ResCap (not shown) and Insurance (not shown)

(2) Includes UST, Agency debt and Agency MBS

(3) Includes equal allocation of shared unused capacity totaling $2.5 billion in 4Q11, $4.0 billion in 3Q11 and $3.9 billion in 4Q10 which can be used by Ally Bank or the Parent (including a Mexican subsidiary). Parent company figures at September 30, 2011 exclude unused capacity of $2.4 billion from two new Ally Credit Canada facilities that were completed in 3Q11 to refinance existing debt outstanding early in 4Q11

(4) To optimize use of cash and secured facility capacity between entities, Ally Financial lends cash to Ally Bank from time to time under an intercompany loan agreement. Amounts outstanding on this loan are repayable to Ally Financial at any time, subject to 5 days notice

(5) Represents both forward purchase commitments and committed secured facilities which are reliant upon the origination of future receivables, stated capacity represents anticipated facility utilization during the next 12 months

 

4Q 2011 Preliminary Results

 

23
 

 

ALLY FINANCIAL INC.
DEPOSITS

 

($ in millions)                            
   QUARTERLY TRENDS   CHANGE VS. 
Key Statistics  4Q 11   3Q 11   2Q 11   1Q 11   4Q 10   3Q 11   4Q 10 
Average retail CD maturity (months)   27.2    26.1    25.3    24.1    22.8    1.1    4.4 
Average retail deposit rate   1.52%   1.57%   1.58%   1.63%   1.71%          
                                    
CD balances up for renewal  $1,896   $1,538   $2,239   $1,891   $2,172   $358   $(276)
CD balances retained (1)   1,746    1,403    1,975    1,632    1,841    343    (95)
Retention rate   92%   91%   88%   86%   85%          
                                    
Ally Financial Deposits Levels                                   
Ally Bank retail  $27,685   $26,254   $24,562   $23,469   $21,817   $1,431   $5,868 
Ally Bank brokered   9,890    9,911    9,903    9,836    9,992    (21)   (102)
ResMor   3,367    3,327    3,359    3,417    3,351    40    16 
Other   4,108    4,834    4,438    3,974    3,887    (726)   221 
Total deposits  $45,050   $44,326   $42,262   $40,696   $39,048   $724   $6,002 

 

(1) Retention includes balances retained in any Ally Bank product

 

4Q 2011 Preliminary Results

 

24
 

 

ALLY FINANCIAL INC.
ALLY BANK CONSUMER MORTGAGE HFI PORTFOLIO (PERIOD-END)

 

($ in billions)                    
   HISTORICAL QUARTERLY TRENDS 
Loan Value  4Q 11   3Q 11   2Q 11   1Q 11   4Q 10 
Gross Carry Value  $9.7   $9.8   $9.9   $10.0   $10.1 
Net Carry Value  $9.3   $9.3   $9.4   $9.5   $9.5 
                          
Estimated Pool Characteristics                         
% Prime Jumbo (> 1/1/2009)   29.1%   27.0%   24.9%   23.0%   20.6%
% Second Lien   13.9%   14.5%   14.9%   15.4%   15.9%
% Interest Only   30.3%   31.5%   33.2%   34.9%   36.5%
% 30+ Day Delinquent   3.3%   3.3%   3.4%   3.5%   3.9%
% Low/No Documentation   16.0%   16.5%   17.0%   17.4%   18.0%
% Non-primary Residence   4.0%   4.0%   4.1%   4.3%   4.4%
Refreshed FICO   730    730    730    729    729 
Wtd. Avg. LTV/CLTV (1)   90.7%   91.2%   91.9%   90.7%   89.5%
High Risk Geographies (2)   38.2%   38.2%   38.4%   38.6%   38.8%

 

(1) Updated home values derived using a combination of Appraisals, BPOs, AVMs and MSA level house price indices

(2) Includes CA, FL, MI and AZ

 

4Q 2011 Preliminary Results

 

25
 

 

ALLY FINANCIAL INC.
MORTGAGE REPURCHASE RESERVES

 

($ in millions)                    
                     
Mortgage Repurchase Reserves  4Q 10   1Q 11   2Q 11   3Q 11   4Q 11 
Beginning reserve balance  $1,128   $830   $830   $829   $829 
Repurchase reserve expense   180    26    184    70    44 
Loan sales   37    6    5    5    3 
Loss experience, net (1)   (515)   (32)   (190)   (75)   (51)
Ending reserve balance  $830   $830   $829   $829   $825 
                          
Outstanding Claims by Counterparty (2) (3)                         
GSEs  $170   $98   $115   $96   $71 
Monoline   661    667    874    909    917 
Other   88    73    89    85    81 
Total  $919   $838   $1,078   $1,090   $1,069 

 

                       % Vintage 
                       Breakout of 
                       Trends 
New Claims Trends                      (4Q10 - 4Q11) 
Pre 2004  $12   $7   $16   $7   $7    5%
2005   14    7    14    4    18    6%
2006   35    15    222    35    19    32%
2007   98    24    33    35    22    21%
2008   31    25    45    43    33    18%
Post 2008   29    53    52    29    23    18%
Unspecified   3    2    -    -    -    0%
Total Claims  $221   $133   $382   $153   $122    100%

 

(1) Includes settlement amounts

(2) Includes claims that Ally has requested to be rescinded but not yet confirmed by the counterparty

(3) Represents current UPB and requested make-whole for claims and does not represent expected losses

Note: numbers may note foot due to rounding

 

4Q 2011 Preliminary Results

 

26
 

 

ALLY FINANCIAL INC.
OWNERSHIP

 

($ in millions)

 

  Common Ownership as of 4Q 11  

 

 

  Other Tier 1 Capital as of 4Q 11  

 

       Liquidation   Book 
Series  Owner   Preference   Value 
Trust Preferred Securities (1)  Investors   $2,667   $2,542 
Series F-2 Mandatory Convertible Preferred (1)  U.S. Treasury   $5,938   $5,685 
Series G Perpetual Preferred  Investors   $2,577   $234 
Series A Perpetual Preferred  Investors   $1,022   $1,021 

(1) Includes exercised warrants

 

4Q 2011 Preliminary Results

 

27