EX-99.3 4 v367355_ex99-3.htm SUPPLEMENTAL FINANCIAL DATA

Exhibit 99.3

 

FOURTH QUARTER 2013

 

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 Annual Reports 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,” “explore,” “positions,” “intend,” “evaluate,” “pursue,” “seek,” “may,” “would, ” “could, ” “should, ” “believe, ” “potential, ” “continue,” , or the negative of these words, 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 Group LLC (“Chrysler”); the profitability and financial condition of GM and Chrysler; our ability to realize the anticipated benefits associated with being a financial holding company, and the significant regulation and restrictions that we are subject to; 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, 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 and Basel III).

 

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, whether as a result of new information, future events or other such factors that affect the subject of these 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 operations. The specific products include retail installment sales contracts, 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 2013 Preliminary Results2
 

 

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
Automotive Finance 9-10
Insurance 11
Mortgage 12
Corporate and Other 13
   
Credit Related Information 14-16
   
Supplemental Detail  
Capital 17
Liquidity 18
Deposits 19
Ally Bank Consumer Mortgage HFI Portfolio 20
Discontinued Operations 21
Ownership 22

 

4Q 2013 Preliminary Results3
 

 

ALLY FINANCIAL INC.
CONSOLIDATED FINANCIAL HIGHLIGHTS

 

($ in millions)                                        
   QUARTERLY TRENDS   CHANGE VS.   FULL YEAR 
                                         
   4Q 13   3Q 13   2Q 13   1Q 13   4Q 12   3Q 13   4Q 12   2013   2012   CHANGE 
Selected Income Statement Data                                                  
Net financing revenue (ex. OID)  $841   $801   $689   $697   $667   $40   $174   $3,028   $2,227   $801 
Total other revenue   325    371    402    386    480    (46)   (155)   1,484    2,574    (1,090)
Total net revenue (ex. OID)   1,166    1,172    1,091    1,083    1,147    (6)   19    4,512    4,801    (289)
Provision for loan losses   140    141    89    131    93    (1)   47    501    329    172 
Controllable expenses (1)   526    494    519    578    638    32    (112)   2,116    2,299    (183)
Other noninterest expenses   358    268    282    380    313    90    45    1,289    1,323    (34)
Core pre-tax income (loss) (2)  $142   $269   $201   $(6)  $103   $(127)  $39   $606   $850   $(244)
Core OID amortization expense (3)    67    64    61    57    56    3    11    249    336    (87)
Income tax (benefit) expense   (4)   28    40    (123)   (887)   (32)   883    (59)   (856)   797 
Income (loss) from discontinued operations   25    (86)   (1,027)   1,033    466    111    (441)   (55)   (174)   119 
Net income (loss)  $104   $91   $(927)  $1,093   $1,400   $13   $(1,296)  $361   $1,196   $(835)
                                                   
Selected Balance Sheet Data (Period-End)                                                  
Total assets  $151,167   $150,556   $150,627   $166,199   $182,347   $611   $(31,180)               
Consumer loans   64,861    65,222    65,298    64,686    63,536    (361)   1,325                
Commercial loans (4)   35,467    30,059    31,695    34,437    35,519    5,408    (52)               
Assets of discontinued operations held-for-sale   516    5,913    5,529    19,063    32,176    (5,397)   (31,660)               
Allowance for loan losses   (1,208)   (1,198)   (1,183)   (1,197)   (1,170)   (10)   (38)               
Deposits   53,350    52,031    50,125    50,326    47,915    1,319    5,435                
Common equity (5)   12,953    12,121    12,225    13,534    12,958    832    (5)               
Total equity   14,208    19,061    19,165    20,474    19,898    (4,853)   (5,690)               
                                                   
Select Financial Ratios                                                  
Net interest margin (6)   2.4%   2.3%   2.0%   2.1%   1.9%             2.2%   1.7%     
Return on average total equity (annualized)   2.5%   1.9%   -18.7%   21.7%   29.6%             1.9%   6.3%     
Return on average assets (annualized)   0.3%   0.2%   -2.4%   2.5%   3.1%             0.2%   0.7%     
                                                   
Capital Ratios                                                  
Tier 1 capital ratio   11.8%   15.4%   15.4%   14.6%   13.1%                         
Tier 1 common capital ratio (7)   8.8%   7.9%   8.0%   7.9%   7.0%                         
Total risk-based capital ratio   12.8%   16.4%   16.5%   15.6%   14.1%                         

 

 

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

(2) Core pre-tax income (loss) 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) Core Original Issuance Discount (OID) is primarily related to bond exchange OID; excludes IO and 2010 - 2013 issuances

(4) Includes notes receivable from General Motors

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

(6) Continuing operations only. Excludes OID amortization expense

(7) Tier 1 common capital ratio is a non-GAAP measurement. Refer to page 17 for additional details

 

4Q 2013 Preliminary Results4
 

 

ALLY FINANCIAL INC.
CONSOLIDATED INCOME STATEMENT

 

($ in millions)                                        
   QUARTERLY TRENDS   CHANGE VS.   FULL YEAR 
                                         
   4Q 13   3Q 13   2Q 13   1Q 13   4Q 12   3Q 13   4Q 12   2013   2012   CHANGE 
Financing revenue and other interest income                                                  
Interest and fees on finance receivables and loans (1)  $1,136   $1,119   $1,139   $1,135   $1,165   $17   $(29)  $4,529   $4,539   $(10)
Interest on loans held-for-sale   1    -    3    16    24    1    (23)   20    98    (78)
Interest on trading securities   -    -    -    -    -    -    -    -    10    (10)
Interest and dividends on available-for-sale investment securities   96    85    76    68    77    11    19    325    292    33 
Interest-bearing cash   2    3    2    3    5    (1)   (3)   10    24    (14)
Operating leases   855    832    788    734    680    23    175    3,209    2,379    830 
Total financing revenue and other interest income   2,090    2,039    2,008    1,956    1,951    51    139    8,093    7,342    751 
Interest expense                                                  
Interest on deposits   165    163    162    164    164    2    1    654    645    9 
Interest on short-term borrowings   16    15    16    16    15    1    1    63    71    (8)
Interest on long-term debt   589    609    703    701    768    (20)   (179)   2,602    3,336    (734)
Total interest expense   770    787    881    881    947    (17)   (177)   3,319    4,052    (733)
Depreciation expense on operating lease assets   546    515    499    435    393    31    153    1,995    1,399    596 
Net financing revenue   774    737    628    640    611    37    163    2,779    1,891    888 
Other revenue                                                  
Servicing fees   12    13    19    82    83    (1)   (71)   126    409    (283)
Servicing asset valuation and hedge activities, net   -    -    (12)   (201)   (78)   -    78    (213)   (4)   (209)
Total servicing income, net   12    13    7    (119)   5    (1)   7    (87)   405    (492)
Insurance premiums and service revenue earned   244    251    258    259    262    (7)   (18)   1,012    1,055    (43)
Gain on mortgage and automotive loans, net   3    15    (1)   38    131    (12)   (128)   55    379    (324)
Loss on extinguishment of debt   (17)   (42)   -    -    (148)   25    131    (59)   (148)   89 
Other gain on investments, net   24    41    64    51    16    (17)   8    180    146    34 
Other income, net of losses   59    93    74    157    214    (34)   (155)   383    737    (354)
Total other revenue   325    371    402    386    480    (46)   (155)   1,484    2,574    (1,090)
Total net revenue   1,099    1,108    1,030    1,026    1,091    (9)   8    4,263    4,465    (202)
Provision for loan losses   140    141    89    131    93    (1)   47    501    329    172 
Noninterest expense                                                  
Compensation and benefits expense   237    245    252    285    276    (8)   (39)   1,019    1,106    (87)
Insurance losses and loss adjustment expenses   59    85    146    115    117    (26)   (58)   405    454    (49)
Other operating expenses   588    432    403    558    558    156    30    1,981    2,062    (81)
Total noninterest expense   884    762    801    958    951    122    (67)   3,405    3,622    (217)
Income (loss) from continuing operations before income tax expense   75    205    140    (63)   47    (130)   28    357    514    (157)
Income tax (benefit) expense from continuing operations   (4)   28    40    (123)   (887)   (32)   883    (59)   (856)   797 
Net income from continuing operations   79    177    100    60    934    (98)   (855)   416    1,370    (954)
Income (loss) from discontinued operations, net of tax   25    (86)   (1,027)   1,033    466    111    (441)   (55)   (174)   119 
Net income (loss)  $104   $91   $(927)  $1,093   $1,400   $13   $(1,296)  $361   $1,196   $(835)

 

 

(1) Includes other interest income, net

 

4Q 2013 Preliminary Results5
 

 

ALLY FINANCIAL INC.

CONSOLIDATED PERIOD-END BALANCE SHEET

 

($ in millions)

   QUARTERLY TRENDS   CHANGE VS. 
   12/31/2013   9/30/2013   6/30/2013   3/31/2013   12/31/2012   9/30/2013   12/31/2012 
Assets                                   
Cash and cash equivalents                                   
Noninterest-bearing  $1,315   $1,063   $1,292   $1,043   $1,073   $252   $242 
Interest-bearing   4,216    5,486    6,482    6,394    6,440    (1,270)   (2,224)
Total cash and cash equivalents   5,531    6,549    7,774    7,437    7,513    (1,018)   (1,982)
Investment securities   17,083    17,967    17,015    15,752    14,178    (884)   2,905 
Loans held-for-sale, net   35    82    102    718    2,576    (47)   (2,541)
Finance receivables and loans, net                            -    - 
Finance receivables and loans, net   100,328    95,281    96,993    99,123    99,055    5,047    1,273 
Allowance for loan losses   (1,208)   (1,198)   (1,183)   (1,197)   (1,170)   (10)   (38)
Total finance receivables and loans, net   99,120    94,083    95,810    97,926    97,885    5,037    1,235 
Investment in operating leases, net   17,680    17,254    16,085    14,828    13,550    426    4,130 
Mortgage servicing rights   -    -    -    917    952    -    (952)
Premiums receivables and other insurance assets   1,613    1,649    1,611    1,608    1,609    (36)   4 
Other assets   9,589    7,059    6,701    7,950    11,908    2,530    (2,319)
Assets of operations held-for-sale (1)   516    5,913    5,529    19,063    32,176    (5,397)   (31,660)
Total assets  $151,167   $150,556   $150,627   $166,199   $182,347   $611   $(31,180)
                                    
Liabilities                                   
Deposit liabilities                                   
Noninterest-bearing  $60   $66   $72   $844   $1,977   $(6)  $(1,917)
Interest-bearing   53,290    51,965    50,053    49,482    45,938    1,325    7,352 
Total deposit liabilities   53,350    52,031    50,125    50,326    47,915    1,319    5,435 
Short-term borrowings   8,545    6,015    4,197    7,618    7,461    2,530    1,084 
Long-term debt   69,465    60,701    64,534    67,621    74,561    8,764    (5,096)
Interest payable   888    978    999    972    932    (90)   (44)
Unearned insurance premiums and service revenue   2,314    2,332    2,301    2,286    2,296    (18)   18 
Accrued expense and other liabilities   2,397    4,836    5,043    3,669    6,585    (2,439)   (4,188)
Liabilities of operations held-for-sale   -    4,602    4,263    13,233    22,699    (4,602)   (22,699)
Total liabilities  $136,959   $131,495   $131,462   $145,725   $162,449   $5,464   $(25,490)
                                    
Equity                                   
Common stock and paid-in capital  $20,939   $19,669   $19,668   $19,668   $19,668   $1,270   $1,271 
Mandatorily convertible preferred stock held by U.S. Department of Treasury   -    5,685    5,685    5,685    5,685    (5,685)   (5,685)
Preferred stock   1,255    1,255    1,255    1,255    1,255    -    0 
Accumulated deficit   (7,710)   (7,365)   (7,256)   (6,128)   (7,021)   (345)   (689)
Accumulated other comprehensive (loss) income   (276)   (183)   (187)   (6)   311    (93)   (587)
Total equity   14,208    19,061    19,165    20,474    19,898    (4,853)   (5,690)
Total liabilities and equity  $151,167   $150,556   $150,627   $166,199   $182,347   $611   $(31,180)

 

 

(1) Assets and liabilities of discontinued operations were reclassified as held-for-sale in 4Q 2012

 

4Q 2013 Preliminary Results6
 

 

ALLY FINANCIAL INC.

CONSOLIDATED AVERAGE BALANCE SHEET (1)

 

($ in millions)

   QUARTERLY TRENDS   CHANGE VS.   FULL YEAR 
   12/31/2013   9/30/2013   6/30/2013   3/31/2013   12/31/2012   9/30/2013   12/31/2012   2013   2012   CHANGE 
Assets                                                  
Interest-bearing cash and cash equivalents  $5,908   $7,150   $6,059   $6,565   $8,970   $(1,242)  $(3,062)  $6,412   $10,610   $(4,198)
Trading assets   -    -    -    -    -    -    -    -    261    (261)
Investment securities   16,522    15,724    14,580    13,921    13,051    798    3,471    15,195    12,336    2,859 
Loans held-for-sale, net   39    67    297    2,027    2,899    (28)   (2,860)   600    2,759    (2,159)
Total finance receivables and loans, net (2)   98,253    94,999    97,840    98,595    98,029    3,254    224    97,467    95,311    2,156 
Investment in operating leases, net   17,514    16,744    15,616    14,205    13,125    770    4,389    16,028    11,185    4,843 
Total interest earning assets   138,236    134,684    134,392    135,313    136,074    3,552    2,162    135,702    132,462    3,240 
Noninterest-bearing cash and cash equivalents   1,319    1,546    1,708    1,967    1,623    (227)   (304)   1,628    1,794    (166)
Other assets (3)   11,268    15,463    16,698    38,257    46,982    (4,195)   (35,714)   20,298    50,719    (30,421)
Allowance for loan losses   (1,205)   (1,197)   (1,197)   (1,172)   (1,189)   (8)   (16)   (1,192)   (1,234)   42 
Total assets  $149,618   $150,496   $151,601   $174,365   $183,490   $(878)  $(33,872)  $156,436   $183,741   $(27,305)
                                                   
Liabilities                                                  
Interest-bearing deposit liabilities  $52,298   $50,886   $49,522   $47,985   $44,296   $1,412   $8,002   $50,188   $42,478   $7,710 
Short-term borrowings   6,268    4,505    3,937    4,585    4,259    1,763    2,009    4,858    3,852    1,006 
Long-term debt (4)   65,983    63,333    65,450    71,957    78,202    2,650    (12,219)   66,634    77,057    (10,423)
Total interest-bearing liabilities (4)   124,549    118,724    118,909    124,527    126,757    5,825    (2,208)   121,680    123,387    (1,707)
Noninterest-bearing deposit liabilities   66    67    274    1,579    2,228    (1)   (2,162)   536    2,261    (1,725)
Other liabilities (3)   8,351    12,664    12,600    28,087    35,568    (4,313)   (27,217)   15,448    39,173    (23,725)
Total liabilities  $132,966   $131,455   $131,783   $154,193   $164,553   $1,511   $(31,587)  $137,664   $164,821   $(27,157)
                                                   
Equity                                                  
Total equity  $16,652   $19,041   $19,818   $20,172   $18,937   $(2,389)  $(2,285)  $18,772   $18,920   $(148)
Total liabilities and equity  $149,618   $150,496   $151,601   $174,365   $183,490   $(878)  $(33,872)  $156,436   $183,741   $(27,305)

 

 
(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)Assets and liabilities of discontinued operations are classified as other assets and other liabilities, respectively, in all periods
(4)QTD: Average balance includes $1,566 million and $1,809 million related to original issue discount at December 2013 and December 2012, respectively

 

4Q 2013 Preliminary Results7
 

 

ALLY FINANCIAL INC.

SEGMENT HIGHLIGHTS

 

($ in millions)

   QUARTERLY TRENDS   CHANGE VS.   FULL YEAR 
   4Q 13   3Q 13   2Q 13   1Q 13   4Q 12   3Q 13   4Q 12   2013   2012   CHANGE 
Automotive Finance  $207   $339   $382   $343   $371   $(132)  $(164)  $1,271   $1,389   $(118)
Insurance   65    83    45    61    27    (18)   38    254    160    94 
Dealer Financial Services   272    422    427    404    398    (150)   (126)   1,525    1,549    (24)
Mortgage   (7)   (4)   (43)   (204)   99    (3)   (106)   (258)   595    (853)
Corporate and Other (ex. OID) (1)   (123)   (149)   (183)   (206)   (394)   26    271    (661)   (1,294)   633 
Core pre-tax income (loss) (2)  $142   $269   $201   $(6)  $103   $(127)  $39   $606   $850   $(244)
Core OID amortization expense   67    64    61    57    56    3    11    249    336    (87)
Income tax expense (benefit)   (4)   28    40    (123)   (887)   (32)   883    (59)   (856)   797 
Income (loss) from discontinued operations   25    (86)   (1,027)   1,033    466    111    (441)   (55)   (174)   119 
Net income (loss)  $104   $91   $(927)  $1,093   $1,400   $13   $(1,296)  $361   $1,196   $(835)

 

 

(1) Corporate and Other primarily consists of Ally’s centralized treasury activities, the residual impacts of the company’s corporate funds transfer pricing and asset liability management activities, and the amortization of the discount associated with debt issuances and bond exchanges. Corporate and Other also includes the Commercial Finance business, certain equity investments and reclassifications, eliminations between the reportable operating segments, and overhead previously allocated to operations that have since been sold or discontinued

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

 

4Q 2013 Preliminary Results8
 

 

ALLY FINANCIAL INC.

AUTOMOTIVE FINANCE - CONDENSED FINANCIAL STATEMENTS

 

($ in millions)

   QUARTERLY TRENDS   CHANGE VS.   FULL YEAR 
   4Q 13   3Q 13   2Q 13   1Q 13   4Q 12   3Q 13   4Q 12   2013   2012   CHANGE 
Income Statement                                                  
Net financing revenue                                                  
Consumer  $762   $763   $750   $729   $739   $(1)  $23   $3,004   $2,827   $177 
Commercial (1)   266    246    268    281    294    20    (28)   1,061    1,152    (91)
Loans held-for-sale   -    -    -    -    -    -    -    -    15    (15)
Operating leases   855    832    788    734    680    23    175    3,209    2,379    830 
Other interest income   4    5    6    7    10    (1)   (6)   22    52    (30)
Total financing revenue and other interest income   1,887    1,846    1,812    1,751    1,723    41    164    7,296    6,425    871 
Interest expense   532    531    536    543    554    1    (22)   2,142    2,199    (57)
Depreciation expense on operating lease assets   546    515    499    435    393    31    153    1,995    1,399    596 
Net financing revenue   809    800    777    773    776    9    33    3,159    2,827    332 
Other revenue                                                  
Servicing fees   10    13    16    19    23    (3)   (13)   58    109    (51)
Gain on automotive loans, net   -    -    -    -    -    -    -    -    41    (41)
Other income   51    52    44    63    35    (1)   16    210    172    38 
Total other revenue   61    65    60    82    58    (4)   3    268    322    (54)
Total net revenue   870    865    837    855    834    5    36    3,427    3,149    278 
Provision for loan losses   144    150    88    112    59    (6)   85    494    253    241 
Noninterest expense                                                  
Compensation and benefits   123    110    104    113    112    13    11    450    416    34 
Other operating expenses   396    266    263    287    292    130    104    1,212    1,091    121 
Total noninterest expense   519    376    367    400    404    143    115    1,662    1,507    155 
Income before income tax expense  $207   $339   $382   $343   $371   $(132)  $(164)  $1,271   $1,389   $(118)
                                                   
Balance Sheet (Period-End) (2)                                                  
Cash, trading and investment securities  $36   $10   $10   $10   $10   $26   $26                
Loans held-for-sale   -    -    -    -    -    -    -                
Finance receivables and loans, net:                                                  
Consumer loans   56,416    56,447    56,028    55,014    53,715    (31)   2,701                
Commercial loans (1)   33,888    28,525    30,263    31,944    32,894    5,363    994                
Allowance for loan losses   (769)   (741)   (706)   (698)   (670)   (28)   (99)               
Total finance receivables and loans, net  $89,535   $84,231   $85,585   $86,260   $85,939   $5,304   $3,596                
Investment in operating leases, net   17,680    17,254    16,085    14,828    13,550    426    4,130                
Other assets    1,545    1,300    821    1,165    1,389    245    156                
Assets of operations held-for-sale   516    5,814    4,984    16,619    27,523    (5,298)   (27,007)               
Total assets  $109,312   $108,609   $107,485   $118,882   $128,411   $703   $(19,099)               

 

 
(1)Includes notes receivable from General Motors and intercompany
(2)Assets of International Operations were classified as held for sale beginning in Q4 2012

 

4Q 2013 Preliminary Results9
 

 

ALLY FINANCIAL INC.

AUTOMOTIVE FINANCE - KEY STATISTICS

 

   QUARTERLY TRENDS   CHANGE VS.   FULL YEAR 
   4Q 13   3Q 13   2Q 13   1Q 13   4Q 12   3Q 13   4Q 12   2013   2012   CHANGE 
U.S. Market                                                  
SAAR (units in millions)   15.6    15.7    15.3    15.2    15.0    (0.1)   0.6    15.5    14.5    1.0 
Industry light vehicle sales (units in millions)   3.8    3.9    4.1    3.7    3.6    (0.1)   0.2    15.5    14.4    1.1 
GM market share   17.6%   17.7%   18.4%   18.1%   17.6%             17.9%   18.0%     
Chrysler market share   11.7%   11.4%   11.7%   11.7%   11.2%             11.6%   11.4%     
                                                   
U.S. Consumer Originations (1) ($ in billions)                                                  
GM new retail subvented  $0.8   $1.1   $1.3   $1.3   $1.4   $(0.2)  $(0.6)  $4.4   $6.0   $(1.5)
GM new retail standard   1.5    1.7    1.6    1.5    1.5    (0.2)   0.0    6.3    6.2    0.1 
Chrysler new retail subvented   0.0    -    0.2    0.2    0.3    0.0    (0.3)   0.4    2.0    (1.6)
Chrysler new retail standard   0.7    0.8    1.0    1.0    1.1    (0.1)   (0.4)   3.5    4.4    (1.0)
Diversified new   0.5    0.6    0.6    0.5    0.5    (0.1)   0.1    2.3    2.2    0.1 
Lease   2.3    2.8    2.8    2.7    2.1    (0.6)   0.1    10.6    8.4    2.2 
Used   2.3    2.6    2.5    2.5    2.1    (0.3)   0.3    9.9    9.6    0.3 
Total originations  $8.2   $9.6   $9.8   $9.7   $8.9   $(1.4)  $(0.7)  $37.3   $38.7   $(1.4)
                                                   
U.S. Consumer Penetration                                                  
GM   26.5%   28.4%   29.4%   30.6%   28.4%             28.7%   29.9%     
Chrysler   10.1%   9.8%   15.6%   23.6%   22.0%             14.4%   25.9%     
                                                   
U.S. Commercial Outstandings EOP ($ in billions)                                                  
Floorplan outstandings, net  $30.1   $24.8   $26.6   $28.5   $29.5   $5.3   $0.6                
Other dealer loans   3.7    3.6    3.6    3.4    3.3    0.1    0.4                
Total Commercial outstandings  $33.8   $28.5   $30.2   $31.9   $32.8   $5.4   $1.0                
                                                   
U.S. Floorplan Penetration (2)                                                  
GM penetration   64.9%   66.5%   68.0%   68.6%   69.2%             66.6%   70.6%     
Chrysler penetration   46.8%   49.0%   52.4%   53.9%   54.9%             50.4%   58.3%     
                                                   
U.S. Off-Lease Remarketing                                                  
Sales proceeds on scheduled lease terminations (36-month) per vehicle - On-balance sheet  $19,797   $18,017   $16,705   $16,306   $17,122   $1,780   $2,675   $17,660   $17,438   $222 
Off-lease vehicles terminated - On-balance sheet (# in units)    45,693    36,811    34,159    31,924    19,789    8,882    25,904    148,587    63,317    85,270 

 

 

(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) Penetration rates are based on the trailing four month average for the quarter and trailing 13 month average for the year

 

4Q 2013 Preliminary Results10
 

 

ALLY FINANCIAL INC.

INSURANCE - CONDENSED FINANCIAL STATEMENTS AND KEY STATISTICS
   
($ in millions)  

 

   QUARTERLY TRENDS   CHANGE VS.   FULL YEAR 
   4Q 13   3Q 13   2Q 13   1Q 13   4Q 12   3Q 13   4Q 12   2013   2012   CHANGE 
Income Statement                                        
Insurance premiums and other income                                                  
Insurance premiums and service revenue earned  $244   $251   $258   $259   $262   $(7)  $(18)  $1,012   $1,055   $(43)
Investment income   37    55    77    58    34    (18)   3    227    124    103 
Other income   3    3    5    3    5    -    (2)   14    35    (21)
Total insurance premiums and other income   284    309    340    320    301    (25)   (17)   1,253    1,214    39 
Expense                                                  
Insurance losses and loss adjustment expenses   59    85    146    115    117    (26)   (58)   405    454    (49)
Acquisition and underwriting expenses                                                  
Compensation and benefit expense   16    15    16    15    16    1    -    62    61    1 
Insurance commission expense   92    93    94    92    96    (1)   (4)   370    382    (12)
Other expense   52    33    39    37    45    19    7    162    157    5 
Total acquisition and underwriting expense   160    141    149    144    157    19    3    594    600    (6)
Total expense   219    226    295    259    274    (7)   (55)   999    1,054    (55)
Income from cont. ops before income tax expense  $65   $83   $45   $61   $27   $(18)  $38   $254   $160   $94 
                                                   
Balance Sheet (Period-End)                                                  
Cash, trading and investment securities  $5,295   $5,433   $5,466   $5,510   $5,144   $(138)  $151                
Finance receivables and loans, net   -    -    5    5    5    -    (5)               
Premiums receivable and other insurance assets   1,624    1,657    1,620    1,617    1,619    (33)   5                
Other assets   205    233    245    240    513    (28)   (308)               
Assets of operations held-for-sale   -    -    -    959    1,158    -    (1,158)               
Total assets  $7,124   $7,323   $7,336   $8,331   $8,439   $(199)  $(1,315)               
                                                   
Key Statistics (Continuing Operations)                                                  
Written Premiums                                                  
Dealer Products & Services (1)  $225   $267   $276   $233   $239   $(42)  $(14)  $1,000   $1,057   $(57)
Corporate   0    0    (4)   1    1    -    (1)   (3)   4    (7)
Total written premiums and revenue  $225   $267   $271   $234   $240   $(42)  $(15)  $997   $1,061   $(64)
                                                   
Loss ratio   23.7%   33.7%   56.3%   44.1%   44.8%             39.7%   42.4%     
Underwriting expense ratio   65.3%   55.9%   56.6%   55.5%   59.3%             58.3%   55.9%     
Combined ratio   89.0%   89.6%   112.9%   99.7%   104.1%             98.0%   98.3%     

 

 

(1) Includes Canadian Personal Lines totaling $3 million for 4Q12 and $58 million for full year 2012

 

4Q 2013 Preliminary Results11
 

 

ALLY FINANCIAL INC.

MORTGAGE - CONDENSED FINANCIAL STATEMENTS AND KEY STATISTICS
   
($ in millions)  

 

   QUARTERLY TRENDS   CHANGE VS.   FULL YEAR 
   4Q 13   3Q 13   2Q 13   1Q 13   4Q 12   3Q 13   4Q 12   2013   2012   CHANGE 
Income Statement                                        
Net financing revenue                                                  
Total financing revenue and other interest income  $80   $83   $93   $122   $146   $(3)  $(66)  $378   $617   $(239)
Interest expense   66    70    78    88    108    (4)   (42)   302    468    (166)
Net financing revenue   14    13    15    34    38    1    (24)   76    149    (73)
Servicing fees   2    -    3    63    60    2    (58)   68    300    (232)
Servicing asset valuation and hedge activities, net   -    -    (12)   (201)   (78)   -    78    (213)   (4)   (209)
Total servicing income, net   2    -    (9)   (138)   (18)   2    20    (145)   296    (441)
Gain on mortgage loans, net   3    15    (1)   38    131    (12)   (128)   55    375    (320)
Other income, net of losses    1    4    4    81    143    (3)   (142)   90    488    (398)
Total other revenue   6    19    (6)   (19)   256    (13)   (250)   -    1,159    (1,159)
Total net revenue   20    32    9    15    294    (12)   (274)   76    1,308    (1,232)
Provision for loan losses   (1)   (12)   6    20    33    11    (34)   13    86    (73)
Noninterest expense                                                  
Compensation and benefits expense   4    7    3    25    29    (3)   (25)   39    96    (57)
Representation and warranty expense   1    22    (2)   83    (0)   (21)   1    104    171    (67)
Other operating expense   23    19    45    91    133    4    (110)   178    360    (182)
Total noninterest expense   28    48    46    199    162    (20)   (134)   321    627    (306)
Income (loss) from cont. ops before income tax expense  $(7)  $(4)  $(43)  $(204)  $99   $(3)  $(106)  $(258)  $595   $(853)
                                                   
Balance Sheet (Period-End)                                                  
Cash, trading and investment securities  $-   $-   $-   $-   $-   $-   $-                
Loans held-for-sale   16    63    56    701    2,490    (47)   (2,474)               
Finance receivables and loans, net:                                                  
Consumer loans   8,444    8,772    9,270    9,672    9,821    (328)   (1,377)               
Commercial loans   -    -    -    -    -    -    -                
Allowance for loan losses   (389)   (407)   (431)   (451)   (452)   18    63                
Total finance receivables and loans, net  $8,055   $8,365   $8,839   $9,221   $9,369   $(310)  $(1,314)               
Mortgage servicing rights   -    -    -    917    952    -    (952)               
Other assets (1)   97    134    166    445    1,933    (37)   (1,836)               
Total assets  $8,168   $8,562   $9,061   $11,284   $14,744   $(394)  $(6,576)               
                                                   
Key Statistics ($ in billions)                                                  
Mortgage loan production (2)                                                   
Prime conforming  $-   $-   $0.5   $5.6   $9.1   $-   $(9.1)               
Prime non-conforming   -    -    0.2    0.5    0.6    -    (0.6)               
Government   -    -    0.0    0.0    0.1    -    (0.1)               
Total mortgage loan production  $-   $-   $0.7   $6.1   $9.8   $-   $(9.8)               

 

 

(1) Includes derivative assets which are reflected on a gross basis on the balance sheet, assets of discontinued operations held-for-sale and other assets

(2) Excludes ResCap

 

4Q 2013 Preliminary Results12
 

 

ALLY FINANCIAL INC.

CORPORATE AND OTHER - CONDENSED FINANCIAL STATEMENTS
   
($ in millions)  

 

  QUARTERLY TRENDS   CHANGE VS.   FULL YEAR 
  4Q 13   3Q 13   2Q 13   1Q 13   4Q 12   3Q 13   4Q 12   2013   2012   CHANGE 
Income Statement                                        
Net financing loss                                                  
Total financing revenue and other interest income  $95   $79   $71   $53   $42   $16   $53   $298   $157   $141 
Interest expense                                                  
Core original issue discount amortization   67    64    61    57    56    3    11    249    336    (87)
Other interest expense   91    107    189    175    211    (16)   (120)   562    970    (408)
Total interest expense   158    171    250    232    267    (13)   (109)   811    1,306    (495)
Net financing loss   (63)   (92)   (179)   (179)   (225)   29    162    (513)   (1,149)   636 
Other revenue                                                  
Loss on extinguishment of debt    (17)   (42)   -    -    (148)   25    131    (59)   (148)   89 
Other gain on investments, net   -    -    -    3    2    -    (2)   3    69    (66)
Other income, net of losses (1)   5    36    23    12    33    (31)   (28)   76    22    54 
Total other (loss) revenue   (12)   (6)   23    15    (113)   (6)   101    20    (57)   77 
Total net expense   (75)   (98)   (156)   (164)   (338)   23    263    (493)   (1,206)   713 
Provision for loan losses   (3)   3    (5)   (1)   1    (6)   (4)   (6)   (10)   4 
Noninterest expense                                                  
Compensation and benefits expense   94    113    129    132    119    (19)   (25)   468    533    (65)
Other operating expense (2)   24    (1)   (36)   (32)   (8)   25    32    (45)   (99)   54 
Total noninterest expense   118    112    93    100    111    6    7    423    434    (11)
Loss from cont. ops before income tax expense  $(190)  $(213)  $(244)  $(263)  $(450)  $23   $260   $(910)  $(1,630)  $720 
                                                   
Balance Sheet (Period-End)                                                  
Cash, trading and investment securities  $17,283   $19,073   $19,313   $17,669   $16,537   $(1,790)  $746                
Loans held-for-sale   19    19    46    17    86    -    (67)               
Finance receivables and loans, net                                                  
   Consumer loans   1    3    -    -    -    (2)   1                
   Commercial loans (3)   1,579    1,534    1,427    2,488    2,620    45    (1,041)               
   Allowance for loan losses   (50)   (50)   (46)   (48)   (48)   -    (2)               
Total finance receivables and loans, net   1,530    1,487    1,381    2,440    2,572    43    (1,042)               
Other assets   7,731    5,384    5,460    6,091    8,063    2,347    (332)               
Assets of operations held-for-sale   -    99    545    1,485    3,495    (99)   (3,495)               
Total assets  $26,563   $26,062   $26,745   $27,702   $30,753   $501   $(4,190)               

 

OID Amortization Schedule (4)  2014   2015   2016 and After
Remaining Core OID Amortization (as of 12/31/2013)  $176   $49   Avg = $52/yr

 

 

(1) Includes gain/(loss) on mortgage and automotive loans

(2) Includes reductions of $187 million for December 31, 2013, $181 million for September 30, 2013, $178 million for June 30, 2013, $193 million for March 31, 2013, and $210 million for December 31, 2012 related to the allocation of corporate overhead expenses to other segments. The receiving segments record their allocation of corporate overhead expense within other operating expense

(3) Includes Intercompany

(4) Primarily represents bond exchange OID amortization expense used for calculating core pre-tax income

 

4Q 2013 Preliminary Results13
 

 

ALLY FINANCIAL INC.

CREDIT RELATED INFORMATION
   
($ in millions)  

 

   QUARTERLY TRENDS   CHANGE VS. 
Asset Quality - Consolidated (1)  4Q 13   3Q 13   2Q 13   1Q 13   4Q 12   3Q 13   4Q 12 
Ending loan balance  $100,327   $95,281   $96,993   $99,123   $99,055   $5,046   $1,272 
30+ Accruing DPD  $1,408   $1,265   $1,084   $930   $1,145   $143   $263 
30+ Accruing DPD %   1.4%   1.3%   1.1%   0.9%   1.2%          
Non-performing loans (NPLs)  $725   $783   $1,006   $938   $858   $(58)  $(133)
Net charge-offs (NCOs)  $129   $126   $103   $114   $154   $3   $(25)
Net charge-off rate (2)   0.5%   0.5%   0.4%   0.5%   0.5%          
                                    
Provision for loan losses  $140   $141   $89   $131   $93   $(1)  $47 
Allowance for loan losses (ALLL)  $1,208   $1,198   $1,183   $1,197   $1,170   $10   $38 
                                    
ALLL as % of Loans (3)   1.2%   1.3%   1.2%   1.2%   1.2%          
ALLL as % of NPLs (3)   166.6%   153.0%   117.6%   127.6%   136.3%          
ALLL as % of NCOs (3)   233.6%   237.8%   287.2%   263.2%   190.0%          

 

 

(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 2013 Preliminary Results14
 

 

ALLY FINANCIAL INC.

CREDIT RELATED INFORMATION, CONTINUED
   
($ in millions)  
CONTINUING OPERATIONS  

 

   QUARTERLY TRENDS   CHANGE VS. 
  4Q 13   3Q 13   2Q 13   1Q 13   4Q 12   3Q 13   4Q 12 
Automotive Finance (1)(2)                            
Consumer                                   
Allowance for loan losses  $673   $651   $610   $599   $575   $22   $97 
Total consumer loans (3)  $56,417   $56,450   $56,028   $55,013   $53,713   $(32)  $2,704 
Coverage ratio   1.2%   1.2%   1.1%   1.1%   1.1%          
                                    
Commercial                                   
Allowance for loan losses  $96   $90   $96   $99   $95   $6   $2 
Total commercial loans  $33,803   $28,452   $30,193   $31,875   $32,822   $5,351   $981 
Coverage ratio   0.3%   0.3%   0.3%   0.3%   0.3%          
                                    
Mortgage (1)(2)                                   
Consumer                                   
Allowance for loan losses  $389   $407   $431   $451   $452   $(18)  $(63)
Total consumer loans  $8,443   $8,772   $9,270   $9,672   $9,821   $(329)  $(1,378)
Coverage ratio   4.6%   4.6%   4.6%   4.7%   4.6%          
                                    
Corporate and Other (1)(4)                                   
Allowance for loan losses  $50   $50   $46   $48   $48   $(0)  $1 
Total commercial loans  $1,664   $1,607   $1,502   $2,562   $2,697   $57   $(1,034)
Coverage ratio   3.0%   3.1%   3.0%   1.9%   1.8%          

 

 

(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

(2) Represents domestic allowance for loan losses only

(3) Includes $1 million Corporate Treasury hedging activity related to domestic consumer non-bank auto outstandings in 4Q13 and $3 million in 3Q13

(4) Includes Insurance

 

4Q 2013 Preliminary Results15
 

 

ALLY FINANCIAL INC.

CREDIT RELATED INFORMATION, CONTINUED

 

($ in millions)                            
   QUARTERLY TRENDS   CHANGE VS. 
   4Q 13   3Q 13   2Q 13   1Q 13   4Q 12   3Q 13   4Q 12 
U.S. Auto Delinquencies - HFI Retail Contract Amount (1)                                   
Delinquent contract $  $1,325   $1,188   $999   $843   $1,073   $137   $252 
% of retail contract $ outstanding   2.35%   2.10%   1.78%   1.53%   2.00%          
                                    
U.S. Auto Annualized Credit Losses - HFI Retail Contract Amount                                   
Credit losses  $114   $115   $80   $93   $100   $(1)  $13 
% of avg. HFI assets   0.80%   0.82%   0.57%   0.69%   0.76%          
                                    
U.S. Automotive Finance                                   
Repossessions as a % of average number of managed retail contracts outstanding   2.09%   1.88%   1.52%   1.64%   1.55%          
Severity of loss per unit serviced - Retail                                   
New  $9,753   $9,473   $9,507   $7,378   $6,986   $279   $2,767 
Used  $7,679   $7,346   $7,422   $6,100   $6,459   $333   $1,220 

 

 

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

 

4Q 2013 Preliminary Results16
 

 

ALLY FINANCIAL INC.

CAPITAL

 

($ in billions)                            
   QUARTERLY TRENDS   CHANGE VS. 
   4Q 13   3Q 13   2Q 13   1Q 13   4Q 12   3Q 13   4Q 12 
Cost of Funds                                   
Ally Financial's cost of borrowing (incl. OID)   2.5%   2.6%   3.0%   2.8%   2.9%          
Ally Financial's cost of borrowing (excl. OID)   2.2%   2.4%   2.7%   2.6%   2.7%          
                                    
Capital                                   
Risk-weighted assets  $128.6   $127.3   $127.2   $141.6   $154.0   $1.3   $(25.4)
                                    
Tier 1 capital ratio   11.8%   15.4%   15.4%   14.6%   13.1%          
Tier 1 common capital ratio   8.8%   7.9%   8.0%   7.9%   7.0%          
Total risk-based capital ratio   12.8%   16.4%   16.5%   15.6%   14.1%          
                                    
Tangible common equity / Tangible assets   8.6%   7.9%   8.0%   7.9%   6.9%          
Tangible common equity / Risk-weighted assets   10.1%   9.4%   9.5%   9.2%   8.1%          
                                    
Shareholders’ equity  $14.2   $19.1   $19.2   $20.5   $19.9   $(4.9)  $(5.7)
less:  Goodwill and certain other intangibles   -    (0.2)   (0.2)   (0.5)   (0.5)   0.2    0.5 
Unrealized (gains) losses and other adjustments   (1.6)   (1.8)   (1.9)   (1.9)   (1.7)   0.2    0.1 
add:   Trust preferred securities   2.5    2.5    2.5    2.5    2.5    -    - 
Tier 1 capital  $15.2   $19.6   $19.7   $20.7   $20.2   $(4.4)  $(5.0)
                                    
Tier 1 capital  $15.2   $19.6   $19.7   $20.7   $20.2   $(4.4)  $(5.0)
less:   Preferred equity   (1.3)   (6.9)   (6.9)   (6.9)   (6.9)   5.6    5.6 
Trust preferred securities   (2.5)   (2.5)   (2.5)   (2.5)   (2.5)   -    - 
Tier 1 common capital (1)  $11.4   $10.1   $10.2   $11.2   $10.7   $1.3   $0.7 
                                    
Tier 1 capital  $15.2   $19.6   $19.7   $20.7   $20.2   $(4.4)  $(5.0)
add:  Qualifying subordinated debt and redeemable preferred stock   0.3    0.3    0.3    0.3    0.3    -    - 
Allowance for loan and lease losses includible in Tier 2 capital and other adjustments   1.0    1.1    1.0    1.2    1.2    (0.1)   (0.2)
Total risk-based capital  $16.4   $20.9   $21.0   $22.1   $21.7   $(4.5)  $(5.3)
                                    
Total shareholders' equity  $14.2   $19.1   $19.2   $20.5   $19.9   $(4.9)  $(5.7)
less:   Preferred equity   (1.3)   (6.9)   (6.9)   (6.9)   (6.9)   5.6    5.6 
Goodwill and intangible assets   -    (0.2)   (0.2)   (0.5)   (0.5)   0.2    0.5 
Tangible common equity (2)  $12.9   $11.9   $12.0   $13.0   $12.5   $1.0   $0.4 
                                    
Total assets  $151.2   $150.6   $150.6   $166.2   $182.3   $0.6   $(31.1)
less:  Goodwill and intangible assets   -    (0.2)   (0.2)   (0.5)   (0.5)   0.2    0.5 
Tangible assets  $151.1   $150.4   $150.4   $165.7   $181.9   $0.7   $(30.8)

 

 

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 equity 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 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 the Tier 1 common equity 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 2013 Preliminary Results17
 

 

ALLY FINANCIAL INC.

LIQUIDITY

 

($ in billions)                        
   12/31/2013   9/30/2013   12/31/2012 
Available Liquidity  Parent (1)   Ally Bank   Parent (1)   Ally Bank   Parent (1)   Ally Bank 
Cash and cash equivalents (2)  $3.3   $2.3   $3.7   $2.7   $4.7   $3.2 
Highly liquid securities (3)   2.9    3.9    3.2    6.8    0.8    5.9 
Current committed unused capacity (4)   6.5    0.3    13.4    1.8    7.2    6.2 
Subtotal  $12.7   $6.5   $20.3   $11.3   $12.7   $15.3 
Ally Bank intercompany loan (5)   0.6    (0.6)   0.9    (0.9)   1.6    (1.6)
Total Current Available Liquidity  $13.3   $5.9   $21.2   $10.4   $14.3   $13.7 
Forward commited unused capacity (6)   -    -    0.8    -    1.7    - 
Total Available Liquidity  $13.3   $5.9   $22.0   $10.4   $16.0   $13.7 

 

Unsecured Long-Term Debt Maturity Profile  2014   2015   2016   2017   2018   2019 and
After		 
Consolidated remaining maturities  $5.5   $5.2   $1.9   $3.5   $1.3   $10.9 

 

 

(1) Parent company liquidity is defined as our consolidated operations less Ally Bank and the regulated subsidiaries of Ally Insurance's holding company

(2) Includes the restricted cash accumulation for retained notes maturing within the following 30 days and returned to Ally on the distribution date

(3) Includes UST, Agency debt and Agency MBS

(4) Includes equal allocation of shared unused capacity totaling $3.0 billion in 4Q12, which was available for use by Ally Bank or the Parent. As of 3Q13, the facility was renewed for the exclusive use of the Parent

(5) 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

(6) Represents capacity from certain forward purchase commitments and committed secured facilities that are generally reliant upon the origination of future automotive receivables in 2013. As of December 31, 2013, these funding facilities have matured

 

4Q 2013 Preliminary Results18
 

 

ALLY FINANCIAL INC.

DEPOSITS

 

($ in millions)                            
   QUARTERLY TRENDS   CHANGE VS. 
   4Q 13   3Q 13   2Q 13   1Q 13   4Q 12   3Q 13   4Q 12 
Key Statistics                                   
Average retail CD maturity (months)   31.0    30.8    30.4    29.9    29.5    0.2    1.5 
Average retail deposit rate   1.21%   1.22%   1.24%   1.29%   1.34%          
                                    
CD balances up for renewal  $2,635   $2,412   $3,278   $3,105   $2,595   $223   $40 
CD balances retained (1)   2,433    2,235    3,027    2,873    2,405    198    28 
Retention rate   92%   93%   92%   93%   93%          
                                    
Ally Financial Deposits Levels                                   
Ally Bank retail  $43,172   $41,691   $39,859   $38,770   $35,041   $1,481   $8,131 
Ally Bank brokered   9,678    9,724    9,552    9,877    9,914    (46)   (236)
Other   500    616    714    1,679    2,961    (116)   (2,460)
Total deposits  $53,350   $52,031   $50,125   $50,326   $47,915   $1,319   $5,435 

 

 

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

 

4Q 2013 Preliminary Results19
 

 

ALLY FINANCIAL INC.

ALLY BANK CONSUMER MORTGAGE HFI PORTFOLIO (PERIOD-END)

 

($ in billions)                    
   HISTORICAL QUARTERLY TRENDS 
   4Q 13   3Q 13   2Q 13   1Q 13   4Q 12 
Loan Value (1)                         
Gross carry value  $8.4   $8.7   $9.2   $9.6   $9.8 
Net carry value  $8.0   $8.3   $8.8   $9.2   $9.3 
                          
Estimated Pool Characteristics                         
% Prime jumbo (> 1/1/2009)   39.0%   39.3%   40.1%   40.2%   38.9%
% Second lien   11.1%   11.2%   11.2%   11.3%   11.7%
% Interest only   13.8%   14.9%   15.3%   19.5%   21.2%
% 30+ Day delinquent   2.8%   2.7%   2.8%   3.0%   3.0%
% Low/No documentation   14.1%   14.0%   13.8%   13.7%   14.0%
% Non-primary residence   3.7%   3.7%   3.7%   3.6%   3.7%
Refreshed FICO   728    729    731    730    730 
Wtd. Avg. LTV/CLTV (2)   79.1%   84.0%   84.9%   85.9%   88.9%
Higher risk geographies  (3)   40.5%   40.5%   40.6%   40.8%   40.3%

 

 

(1) Excludes education loans

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

(3) Includes CA, FL, MI and AZ

 

4Q 2013 Preliminary Results20
 

 

ALLY FINANCIAL INC.

DISCONTINUED OPERATIONS

 

($ in millions)                            
   QUARTERLY TRENDS   INC / (DEC) VS. 
   4Q 13   3Q 13   2Q 13   1Q 13   4Q 12   3Q 13   4Q 12 
Impact of Discontinued Operations (1)                                   
Auto Finance  $(149)  $60   $(245)  $1,037   $112   $(209)  $(261)
Insurance   0    5    294    28    38    (5)   (38)
Mortgage Operations   -    -    -    0    0    -    (0)
Corporate and Other (2)   80    (161)   (1,693)   (16)   26    241    55 
Consolidated pretax income  $(69)  $(96)  $(1,644)  $1,049   $175   $27   $(244)
Tax expense (benefit)   (93)   (10)   (617)   17    (291)   (83)   197 
Consolidated net income  $25   $(86)  $(1,027)  $1,033   $466   $111   $(441)
                                    
Assets of discontinued operations held-for-sale  $516   $5,913   $5,529   $19,063   $32,176   $(5,397)  $(31,660)
                                    
Businesses classified as discontinued operations above                                   
Automotive Finance                                   
Canada                                   
Europe, Latin America and China (J.V.)                                   
Insurance                                   
ABA Seguros                                   
U.K.-based operations that provide vehicle service contracts and insurance products in Europe and Latin America
Mortgage                                   
ResCap                                   

 

 

(1) Included are operations that have been wound down or sold in addition to those held-for-sale

(2) Includes FHFA and FDIC settlement charge in 3Q13 and ResCap settlement charge in 2Q13

Note: The sale of Brazil closed in 4Q13. The sale of France as well as the Mexican Insurance business closed in 2Q13. The sales of Canada and Europe (ex. France), Mexico, Colombia and Chile were completed 1Q13. The sale of the China (J.V.) has yet to close

 

4Q 2013 Preliminary Results21
 

 

ALLY FINANCIAL INC.

OWNERSHIP
   
($ in millions)  

 

Common Ownership as of 2/6/2014

 

 

Other Tier 1 Capital as of 4Q 13

 

      Liquidation   Book 
Series  Owner  Preference   Value 
Trust Preferred Securities (1)  Investors  $2,667   $2,544 
Series G Perpetual Preferred  Investors  $2,577   $234 
Series A Perpetual Preferred  Investors  $1,022   $1,021 

 

 

(1) Includes exercised warrants

 

4Q 2013 Preliminary Results22