EX-99.3 4 v430222_ex99-3.htm SUPPLEMENTAL FINANCIAL DATA

 

Exhibit 99.3

 

 

FOURTH QUARTER 2015

 

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, and Ally and Chrysler, and our ability to further diversify our business; our ability to maintain relationships with automotive dealers; the significant regulation and restrictions that we are subject to as a bank holding company and financial holding company; 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 our credit ratings; 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 2015 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 14-15
   
Supplemental Detail  
Capital 16
Liquidity 17
Net Interest Margin and Deposits 18
Ally Bank Consumer Mortgage HFI Portfolio 19
Discontinued Operations 20
Per Share-Related Information 21
Supplemental Financial Data 22

 

4Q 2015 Preliminary Results3 

 

 

ALLY FINANCIAL INC.

CONSOLIDATED FINANCIAL HIGHLIGHTS

 

($ in millions, shares in thousands)

 

   QUARTERLY TRENDS   CHANGE VS.   FULL YEAR 
                                         
Selected Income Statement Data  4Q 15   3Q 15   2Q 15   1Q 15   4Q 14   3Q 15   4Q 14   2015   2014   CHANGE 
Net financing revenue (ex. OID)  $995   $981   $927   $860   $835   $14   $160   $3,764   $3,547   $217 
Total other revenue (ex. OID)   356    332    218    250    221    24    135    1,156    1,290    (134)
Total net revenue (ex. OID)   1,351    1,313    1,145    1,110    1,056    38    295    4,920    4,837    83 
Provision for loan losses   240    211    140    116    155    29    85    707    457    250 
Controllable expenses (1)   466    452    452    469    479    14    (13)   1,839    1,893    (55)
Other noninterest expenses   202    222    272    226    193    (20)   9    922    1,055    (132)
Core pre-tax income (2)  $443   $428   $281   $299   $229   $15   $214   $1,452   $1,432   $20 
Core OID amortization expense (3)   12    11    18    17    42    1    (30)   59    186    (127)
Income tax (benefit) expense   155    144    94    103    36    11    119    496    321    175 
Income (loss) from discontinued operations   (13)   (5)   13    397    26    (8)   (39)   392    225    167 
Net income  $263   $268   $182   $576   $177   $(5)  $86   $1,289   $1,150   $139 
Preferred stock dividends   1,216    38    1,251    67    68    1,178    1,148    2,571    268    2,303 
Net income (loss) available to common shareholders  $(953)  $230   $(1,069)  $509   $109   $(1,183)  $(1,062)  $(1,282)  $882   $(2,164)
                                                   
Selected Balance Sheet Data (Period-End)                                                  
Total assets  $158,581   $155,916   $156,278   $153,324   $151,631   $2,665   $6,950                
Consumer loans   74,065    73,380    69,998    65,100    64,044    685    10,021                
Commercial loans   37,535    34,611    35,175    34,757    35,904    2,924    1,631                
Assets of discontinued operations held-for-sale   -    -    -    -    634    -    (634)               
Allowance for loan losses   (1,054)   (1,018)   (974)   (933)   (977)   (36)   (77)               
Deposits   66,478    64,020    61,930    60,857    58,203    2,458    8,275                
Common equity (4)   12,743    13,786    13,482    14,679    14,144    (1,043)   (1,401)               
Total equity   13,439    14,599    14,295    15,934    15,399    (1,160)   (1,960)               
                                                   
Common Share Count                                                  
Weighted average basic (5)   483,300    483,073    482,847    482,248    481,861    227    1,439    482,873    481,155    1,718 
Weighted average diluted (5)(6)   484,845    484,399    483,687    482,782    483,091    446    1,754    483,934    481,934    2,000 
Issued shares outstanding (period-end)   481,980    481,750    481,750    481,503    480,095    230    1,885    481,980    480,095    1,885 
                                                   
Per Common Share Data                                                  
Earnings per share (basic) (5)  $(1.97)  $0.48   $(2.22)  $1.06   $0.23   $(2.45)  $(2.20)  $(2.66)  $1.83   $(4.49)
Earnings per share (diluted) (5)(6)   (1.97)   0.47    (2.22)   1.06    0.23    (2.44)   (2.20)   (2.66)   1.83    (4.49)
Adjusted earnings per share   0.52    0.51    0.46    0.52    0.40    0.01    0.12    2.00    1.68    0.32 
Book value per share   27.9    30.3    29.7    33.1    32.1    (2.4)   (4.2)   27.88    32.07    (4.19)
Tangible book value per share   26.4    28.6    27.9    30.4    29.4    (2.2)   (3.0)   26.38    29.40    (3.02)
Adjusted tangible book value per share (7)   24.6    24.3    23.7    23.7    22.7    0.3    1.9    24.60    22.67    1.93 
                                                   
Select Financial Ratios                                                  
Net interest margin (8)   2.7%   2.7%   2.6%   2.5%   2.4%             2.6%   2.5%     
Cost of funds (incl. OID)   1.8%   1.8%   1.8%   1.9%   2.0%             1.8%   2.1%     
Cost of funds (excl. OID)   1.7%   1.7%   1.8%   1.9%   1.9%             1.8%   2.0%     
Adjusted efficiency ratio (9)   44%   44%   46%   48%   50%             45%   51%     
Return on average assets (10)   0.7%   0.7%   0.5%   1.5%   0.5%             0.8%   0.8%     
Return on average total equity (10)   7.4%   7.4%   4.8%   14.9%   4.6%             8.9%   7.8%     
Return on average tangible common equity (10)   n/m    6.8%   n/m    14.2%   3.1%             n/m    6.5%     
Core ROTCE (9)(10)   9.8%   9.2%   8.3%   9.1%   7.1%             9.4%   7.9%     
                                                   
Capital Ratios (11)                                                  
Common Equity Tier 1 (CET1) capital ratio (Tier 1 common prior to 1Q15) (12)   9.2%   10.0%   9.8%   10.9%   9.6%                         
Tier 1 capital ratio   11.1%   12.0%   11.7%   13.2%   12.5%                         
Total capital ratio   12.5%   12.9%   12.6%   14.1%   13.2%                         
                                                   

(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 income tax expense 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 post 2009 issuances

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

(5) Includes shares related to share-based compensation that vested but were not yet issued

(6) Due to antidilutive effect of the net loss from continuing operations attributable to common shareholders for the year ended December 31, 2015 and June 30, 2015, basic weighted-average common shares outstanding were used to calculate basic and diluted earnings per share

(7) For more details refer to page 21

(8) Continuing operations only. Excludes OID amortization expense

(9) For more details refer to page 22

(10) Return metrics are annualized

(11) Basel III rules became effective on January 1, 2015, subject to transition provisions primarily related to deductions and adjustments impacting CET1 capital and Tier 1 capital; all data prior to that date is based on Basel I rules

(12) Common Equity Tier 1 capital ratio is a non-GAAP measurement. Refer to page 16 for additional details

 

4Q 2015 Preliminary Results4 

 

 

ALLY FINANCIAL INC.

CONSOLIDATED INCOME STATEMENT

 

($ in millions)

 

   QUARTERLY TRENDS   CHANGE VS.   FULL YEAR 
                                         
   4Q 15   3Q 15   2Q 15   1Q 15   4Q 14   3Q 15   4Q 14   2015   2014   CHANGE 
Financing revenue and other interest income                                                  
Interest and fees on finance receivables and loans  $1,212   $1,166   $1,118   $1,074   $1,112   $46   $100   $4,570   $4,457   $113 
Interest on loans held-for-sale   -    2    14    24    -    (2)   -    40    1    39 
Interest and dividends on available-for-sale investment securities   98    102    93    88    85    (4)   13    381    367    14 
Interest-bearing cash   2    2    2    2    2    -    -    8    8    - 
Operating leases   812    830    860    896    905    (18)   (93)   3,398    3,558    (160)
Total financing revenue and other interest income   2,124    2,102    2,087    2,084    2,104    22    20    8,397    8,391    6 
Interest expense                                                  
Interest on deposits   188    181    177    172    169    7    19    718    664    54 
Interest on short-term borrowings   13    13    12    11    12    -    1    49    52    (3)
Interest on long-term debt   404    410    419    429    491    (6)   (87)   1,662    2,067    (405)
Total interest expense   605    604    608    612    672    1    (67)   2,429    2,783    (354)
Depreciation expense on operating lease assets   536    528    563    622    633    8    (97)   2,249    2,233    16 
Net financing revenue   983    970    916    850    799    13    184    3,719    3,375    344 
Other revenue                                                  
Servicing fees   13    12    10    10    9    1    4    45    31    14 
Insurance premiums and service revenue earned   234    236    237    233    243    (2)   (9)   940    979    (39)
Gain on mortgage and automotive loans, net   -    (2)   1    46    1    2    (1)   45    7    38 
Loss on extinguishment of debt   (3)   -    (156)   (198)   (156)   (3)   153    (357)   (202)   (155)
Other gain on investments, net   49    6    45    55    52    43    (3)   155    181    (26)
Other income, net of losses   63    80    74    97    66    (17)   (3)   314    280    34 
Total other revenue   356    332    211    243    215    24    141    1,142    1,276    (134)
Total net revenue   1,339    1,302    1,127    1,093    1,014    37    325    4,861    4,651    210 
Provision for loan losses   240    211    140    116    155    29    85    707    457    250 
Noninterest expense                                                  
Compensation and benefits expense   237    235    236    255    237    2    -    963    947    16 
Insurance losses and loss adjustment expenses   54    61    122    56    57    (7)   (3)   293    410    (117)
Other operating expenses   377    378    366    384    378    (1)   (1)   1,505    1,591    (86)
Total noninterest expense   668    674    724    695    672    (6)   (4)   2,761    2,948    (187)
Income (loss) from continuing operations before income tax expense   431    417    263    282    187    14    244    1,393    1,246    147 
Income tax (benefit) expense from continuing operations   155    144    94    103    36    11    119    496    321    175 
Net income from continuing operations   276    273    169    179    151    3    125    897    925    (28)
Income (loss) from discontinued operations, net of tax   (13)   (5)   13    397    26    (8)   (39)   392    225    167 
Net income (loss)  $263   $268   $182   $576   $177   $(5)  $86   $1,289   $1,150   $139 
                                                   

 

4Q 2015 Preliminary Results5 

 

 

ALLY FINANCIAL INC.

CONSOLIDATED PERIOD-END BALANCE SHEET

 

($ in millions)

 

   QUARTERLY TRENDS   CHANGE VS. 
                             
Assets  12/31/2015   9/30/2015   6/30/2015   3/31/2015   12/31/2014   9/30/2015   12/31/2014 
Cash and cash equivalents                                   
Noninterest-bearing  $2,148   $1,666   $1,739   $1,552   $1,348   $482   $800 
Interest-bearing   4,232    3,561    4,119    6,084    4,228    671    4 
Total cash and cash equivalents   6,380    5,227    5,858    7,636    5,576    1,153    804 
Federal funds sold and securities purchased under resale agreements   -    -    -    50    -    -    - 
Investment securities   17,157    18,758    19,142    17,829    16,137    (1,601)   1,020 
Loans held-for-sale, net   105    37    1,438    1,559    2,003    68    (1,898)
Finance receivables and loans, net                                   
Finance receivables and loans, net   111,600    107,991    105,173    99,857    99,948    3,609    11,652 
Allowance for loan losses   (1,054)   (1,018)   (974)   (933)   (977)   (36)   (77)
Total finance receivables and loans, net   110,546    106,973    104,199    98,924    98,971    3,573    11,575 
Investment in operating leases, net   16,271    17,292    17,950    19,021    19,510    (1,021)   (3,239)
Premiums receivables and other insurance assets   1,801    1,794    1,759    1,722    1,695    7    106 
Other assets   6,321    5,835    5,932    6,583    7,105    486    (784)
Assets of operations held-for-sale   -    -    -    -    634    -    (634)
Total assets  $158,581   $155,916   $156,278   $153,324   $151,631   $2,665   $6,950 
                                    
Liabilities                                   
Deposit liabilities                                   
Noninterest-bearing  $89   $91   $89   $79   $64   $(2)  $25 
Interest-bearing   66,389    63,929    61,841    60,778    58,139    2,460    8,250 
Total deposit liabilities   66,478    64,020    61,930    60,857    58,203    2,458    8,275 
Short-term borrowings   8,101    5,378    10,013    6,447    7,062    2,723    1,039 
Long-term debt   66,234    67,293    65,675    65,578    66,380    (1,059)   (146)
Interest payable   350    437    418    440    477    (87)   (127)
Unearned insurance premiums and service revenue   2,434    2,438    2,417    2,374    2,375    (4)   59 
Accrued expense and other liabilities   1,545    1,751    1,530    1,694    1,735    (206)   (190)
Total liabilities  $145,142   $141,317   $141,983   $137,390   $136,232   $3,825   $8,910 
                                    
Equity                                   
Common stock and paid-in capital (1)  $21,084   $21,066   $21,053   $21,033   $21,038   $18   $46 
Preferred stock   696    813    813    1,255    1,255    (117)   (559)
Accumulated deficit   (8,110)   (7,158)   (7,388)   (6,319)   (6,828)   (952)   (1,282)
Accumulated other comprehensive (loss) income   (231)   (122)   (183)   (35)   (66)   (109)   (165)
Total equity   13,439    14,599    14,295    15,934    15,399    (1,160)   (1,960)
Total liabilities and equity  $158,581   $155,916   $156,278   $153,324   $151,631   $2,665   $6,950 
                                    

(1) Includes Treasury stock

 

4Q 2015 Preliminary Results6 

 

 

ALLY FINANCIAL INC.

CONSOLIDATED AVERAGE BALANCE SHEET (1)

 

($ in millions)

 

   QUARTERLY TRENDS   CHANGE VS.   FULL YEAR 
                                         
Assets  12/31/2015   9/30/2015   6/30/2015   3/31/2015   12/31/2014   9/30/2015   12/31/2014   2015   2014   CHANGE 
Interest-bearing cash and cash equivalents  $2,743   $3,667   $4,013   $4,402   $4,293   $(924)  $(1,550)  $3,702   $4,328   $(626)
Federal funds sold and securities purchased under resale agreements   -    -    1    7    -    -    -    2    -    2 
Investment securities   16,066    17,745    17,078    15,904    15,439    (1,679)   627    16,702    15,729    973 
Loans held-for-sale, net   13    111    1,493    1,947    25    (98)   (12)   884    16    868 
Total finance receivables and loans, net (2)   110,623    105,604    101,962    98,843    101,272    5,019    9,351    104,294    100,148    4,146 
Investment in operating leases, net   16,824    17,519    18,520    19,405    19,479    (695)   (2,655)   18,058    18,789    (731)
Total interest earning assets   146,269    144,646    143,067    140,508    140,508    1,623    5,761    143,642    139,010    4,632 
Noninterest-bearing cash and cash equivalents   1,368    1,563    1,337    1,825    1,757    (195)   (389)   1,522    1,610    (88)
Other assets (3)   9,299    9,665    9,472    9,597    9,877    (366)   (578)   9,508    10,675    (1,167)
Allowance for loan losses   (1,030)   (988)   (953)   (969)   (1,113)   (42)   83    (985)   (1,173)   188 
Total assets  $155,906   $154,886   $152,923   $150,961   $151,029   $1,020   $4,877   $153,687   $150,122   $3,565 
                                                   
Liabilities                                                  
Interest-bearing deposit liabilities  $64,890   $62,791   $61,224   $59,372   $57,313   $2,099   $7,577   $62,086   $55,838   $6,248 
Short-term borrowings   6,073    6,745    6,057    6,280    6,258    (672)   (185)   6,289    6,308    (19)
Long-term debt (4)   66,162    66,857    66,371    64,991    67,703    (695)   (1,541)   66,100    67,881    (1,781)
Total interest-bearing liabilities (4)   137,125    136,393    133,652    130,643    131,274    732    5,851    134,475    130,027    4,448 
Noninterest-bearing deposit liabilities   95    91    81    73    68    4    27    85    69    16 
Other liabilities (3)   4,144    3,971    4,538    4,548    4,431    173    (287)   4,302    5,231    (929)
Total liabilities  $141,364   $140,455   $138,271   $135,264   $135,773   $909   $5,591   $138,862   $135,327   $3,535 
                                                   
Equity                                                  
Total equity  $14,542   $14,431   $14,652   $15,697   $15,256   $111   $(714)  $14,825   $14,795   $30 
Total liabilities and equity  $155,906   $154,886   $152,923   $150,961   $151,029   $1,020   $4,877   $153,687   $150,122   $3,565 
                                                   

(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: includes average $1,310 million and $1,366 million related to original issue discount at December 2015 and December 2014, respectively

 

4Q 2015 Preliminary Results7 

 

 

ALLY FINANCIAL INC.

SEGMENT HIGHLIGHTS

 

($ in millions)

 

   QUARTERLY TRENDS   CHANGE VS.   FULL YEAR 
                                         
   4Q 15   3Q 15   2Q 15   1Q 15   4Q 14   3Q 15   4Q 14   2015   2014   CHANGE 
Automotive Finance  $333   $323   $373   $306   $291   $10   $42   $1,335   $1,429   $(94)
Insurance   78    40    15    78    86    38    (8)   211    197    14 
Dealer Financial Services   411    363    388    384    377    48    34    1,546    1,626    (80)
Mortgage   9    6    7    68    20    3    (11)   90    59    31 
Corporate and Other (ex. OID) (1)   23    59    (114)   (153)   (168)   (36)   191    (184)   (253)   69 
Core pre-tax income (2)  $443   $428   $281   $299   $229   $15   $214   $1,452   $1,432   $20 
Core OID amortization expense (3)   12    11    18    17    42    1    (30)   59    186    (127)
Income tax expense   155    144    94    103    36    11    119    496    321    175 
Income from discontinued operations   (13)   (5)   13    397    26    (8)   (39)   392    225    167 
Net income  $263   $268   $182   $576   $177   $(5)  $86   $1,289   $1,150   $139 
                                                   

(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 Corporate Finance business, certain investment portfolio activity and reclassifications, eliminations between the reportable operating segments. During 4Q15, incremental overhead expenses related to centralized support functions were allocated to Automotive Finance, Insurance, and Mortgage Operations. These expenses were previously included in Corporate and Other Activities. Amounts in prior periods have been reclassified to conform to this new presentation.

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

(3) Includes accelerated OID expense of $7 million in 2Q15, $7 million in 1Q15, $6 million in 4Q14, $14 million in 2015 and $14 million in 2014 due to debt redemption

 

4Q 2015 Preliminary Results8 

 

 

ALLY FINANCIAL INC.

AUTOMOTIVE FINANCE - CONDENSED FINANCIAL STATEMENTS

 

($ in millions)

 

   QUARTERLY TRENDS   CHANGE VS.   FULL YEAR 
                                         
Income Statement  4Q 15   3Q 15   2Q 15   1Q 15   4Q 14   3Q 15   4Q 14   2015   2014   CHANGE 
Net financing revenue                                                  
Consumer  $867   $833   $785   $745   $770   $34   $97   $3,230   $3,046   $184 
Commercial   238    228    235    238    252    10    (14)   939    1,024    (85)
Loans held-for-sale   (1)   2    14    19    -    (3)   (1)   34    -    34 
Operating leases   812    830    860    896    905    (18)   (93)   3,398    3,558    (160)
Other interest income   2    2    2    2    2    -    -    8    10    (2)
Total financing revenue and other interest income   1,918    1,895    1,896    1,900    1,929    23    (11)   7,609    7,638    (29)
Interest expense   482    497    483    469    529    (15)   (47)   1,931    2,084    (153)
Depreciation expense on operating lease assets:                                                  
Depreciation expense on operating lease assets (ex. remarketing)   604    633    671    691    683    (29)   (79)   2,600    2,666    (66)
Remarketing gains   (68)   (105)   (108)   (69)   (50)   37    (18)   (351)   (433)   82 
Total depreciation expense on operating lease assets   536    528    563    622    633    8    (97)   2,249    2,233    16 
Net financing revenue   900    870    850    809    767    30    133    3,429    3,321    108 
Other revenue                                                  
Servicing fees   13    12    10    10    9    1    4    45    31    14 
Gain/(loss) on automotive loans, net   -    (2)   (6)   (15)   4    2    (4)   (23)   10    (33)
Other income   52    53    51    57    56    (1)   (4)   213    223    (10)
Total other revenue   65    63    55    52    69    2    (4)   235    264    (29)
Total net revenue   965    933    905    861    836    32    129    3,664    3,585    79 
Provision for loan losses   236    201    132    127    175    35    61    696    542    154 
Noninterest expense                                                  
Compensation and benefits   119    121    123    126    113    (2)   6    489    454    35 
Other operating expenses   277    288    277    302    257    (11)   20    1,144    1,160    (16)
Total noninterest expense   396    409    400    428    370    (13)   26    1,633    1,614    19 
Income before income tax expense  $333   $323   $373   $306   $291   $10   $42   $1,335   $1,429   $(94)
                                                   
Memo: Net lease revenue                                                  
Operating lease revenue  $812   $830   $860   $896   $905   $(18)  $(93)  $3,398   $3,558   $(160)
Depreciation expense on operating lease assets (ex. remarketing)   604    633    671    691    683    (29)   (79)   2,600    2,666    (66)
Remarketing gains   (68)   (105)   (108)   (69)   (50)   37    (18)   (351)   (433)   82 
Total depreciation expense on operating lease assets   536    528    563    622    633    8    (97)   2,249    2,233    16 
Net lease revenue  $276   $302   $297   $274   $272   $(26)  $4   $1,149   $1,325   $(176)
                                                   
Balance Sheet (Period-End)                                                  
Cash, trading and investment securities  $31   $32   $33   $34   $32   $(1)  $(1)               
Loans held-for-sale   -    -    1,356    1,500    1,515    -    (1,515)               
Finance receivables and loans, net:                                                  
Consumer loans   64,226    63,503    60,717    57,379    56,535    723    7,691                
Commercial loans (1)   34,918    32,345    33,044    32,770    34,039    2,573    879                
Allowance for loan losses   (887)   (852)   (815)   (778)   (783)   (35)   (104)               
Total finance receivables and loans, net   98,257    94,996    92,946    89,371    89,791    3,261    8,466                
Investment in operating leases, net   16,271    17,292    17,950    19,021    19,510    (1,021)   (3,239)               
Other assets   1,077    1,523    1,322    1,223    1,706    (446)   (629)               
Assets of operations held-for-sale   -    -    -    -    634    -    (634)               
Total assets  $115,636   $113,843   $113,607   $111,149   $113,188   $1,793   $2,448                
                                                   

(1) Includes intercompany

 

4Q 2015 Preliminary Results9 

 

 

ALLY FINANCIAL INC.

AUTOMOTIVE FINANCE - KEY STATISTICS

 

   QUARTERLY TRENDS   CHANGE VS.   FULL YEAR 
                                         
   4Q 15   3Q 15   2Q 15   1Q 15   4Q 14   3Q 15   4Q 14   2015   2014   CHANGE 
U.S. Consumer Originations (1) ($ in billions)                                                  
Retail standard - new vehicle GM  $2.3   $2.8   $2.6   $2.0   $1.9   $(0.5)  $0.4   $9.7   $7.3   $2.5 
Retail standard - new vehicle Chrysler (2)   1.1    1.3    1.3    1.0    0.8    (0.2)   0.2    4.7    3.6    1.2 
Retail standard - new vehicle Growth   1.2    1.3    1.3    1.0    0.7    (0.1)   0.5    4.9    3.1    1.8 
Retail standard - used vehicle - all channels   3.4    3.9    4.0    3.6    2.7    (0.5)   0.7    14.8    11.7    3.1 
Lease - GM   0.0    0.0    0.1    1.1    1.9    (0.0)   (1.8)   1.3    9.3    (8.0)
Lease - Other   1.0    1.0    0.9    0.5    0.6    0.0    0.5    3.4    2.0    1.4 
Retail subvented - new vehicle GM   0.2    0.7    0.7    0.5    0.5    (0.5)   (0.2)   2.1    4.0    (1.9)
Total originations  $9.3   $11.1   $10.8   $9.8   $9.0   $(1.8)  $0.3   $41.0   $41.0   $0.1 
                                                   
U.S. Market                                                  
Light vehicle sales (SAAR - units in millions)   17.8    17.8    17.1    16.7    16.8    0.0    1.0    17.3    16.4    0.9 
Light vehicle sales (quarterly - units in millions)   4.4    4.5    4.5    3.9    4.1    (0.1)   0.3    17.4    16.4    1.0 
GM market share   17.8%   17.6%   18.1%   17.4%   17.9%             17.7%   17.9%     
Chrysler market share   13.3%   12.7%   12.7%   12.8%   13.1%             12.9%   12.7%     
                                                   
U.S. Consumer Penetration                                                  
GM   13.0%   16.3%   16.4%   20.7%   22.9%             16.5%   27.6%     
Chrysler   14.2%   13.9%   13.7%   11.3%   10.6%             13.5%   10.3%     
                                                   
U.S. Commercial Outstandings EOP ($ in billions)                                                  
Floorplan outstandings, net  $29.9   $27.5   $28.3   $28.3   $29.7   $2.4   $0.2                
Other dealer loans   5.0    4.8    4.7    4.5    4.3    0.2    0.7                
Total Commercial outstandings  $34.9   $32.3   $33.0   $32.8   $34.0   $2.6   $0.9                
                                                   
U.S. Floorplan Penetration (3)                                                  
GM penetration   62.8%   62.5%   63.2%   63.2%   63.8%                         
Chrysler penetration   44.3%   43.1%   44.3%   44.5%   44.1%                         
                                                   
U.S. Off-Lease Remarketing                                                  
Manheim used vehicle index (3 month average)   125.4    124.4    124.0    125.0    123.0    1.0    2.4    124.7    123.2    1.5 
Off-lease vehicles terminated - On-balance sheet
(# in units)		   69,710    65,363    64,123    65,060    70,969    4,347    (1,259)   264,256    296,393    (32,137)
Average gain per vehicle  $979   $1,611   $1,686   $1,067   $705   $(633)  $274   $1,329   $1,461   $(132)
Total gains ($ in millions)  $68   $105   $108   $69   $50   $(37)  $18   $351   $433   $(82)
                                                   

(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 an immaterial balance of subvented volume

(3) Penetration rates are based on the trailing four month average for the quarter

 

4Q 2015 Preliminary Results10 

 

 

ALLY FINANCIAL INC.

INSURANCE - CONDENSED FINANCIAL STATEMENTS AND KEY STATISTICS

 

($ in millions)

 

   QUARTERLY TRENDS   CHANGE VS.   FULL YEAR 
                                         
Income Statement (GAAP View)  4Q 15   3Q 15   2Q 15   1Q 15   4Q 14   3Q 15   4Q 14   2015   2014   CHANGE 
Net financing revenue                                                  
Interest and dividends on investment securities  $25   $26   $25   $23   $21   $(1)  $4   $99   $105   $(6)
Interest bearing cash   2    2    2    2    1    -    1    8    5    3 
Total financing revenue and other interest revenue   27    28    27    25    22    (1)   5    107    110    (3)
Interest expense   12    12    13    13    13    -    (1)   50    54    (4)
Net financing revenue   15    16    14    12    9    (1)   6    57    56    1 
Other revenue                                                  
Insurance premiums and service revenue earned   234    236    237    233    243    (2)   (9)   940    979    (39)
Other gain/(loss) on investments, net   28    (5)   29    33    36    33    (8)   85    143    (58)
Other income, net of losses   2    2    2    2    1    -    1    8    7    1 
Total other revenue   264    233    268    268    280    31    (16)   1,033    1,129    (96)
Total net revenue   279    249    282    280    289    30    (10)   1,090    1,185    (95)
Noninterest expense                                                  
Compensation and benefits expense   15    18    16    19    17    (3)   (2)   68    63    5 
Insurance losses and loss adjustment expenses   54    61    122    56    57    (7)   (3)   293    410    (117)
Other operating expenses   132    130    129    127    129    2    3    518    515    3 
Total noninterest expense   201    209    267    202    203    (8)   (2)   879    988    (109)
Income (loss) from cont. ops before income tax expense  $78   $40   $15   $78   $86   $38   $(8)  $211   $197   $14 
                                                   
Memo: Income Statement (Managerial View)                                                  
Insurance premiums and other income                                                  
Insurance premiums and service revenue earned  $234   $236   $237   $233   $243   $(2)  $(9)  $940   $979   $(39)
Investment income   41    9    41    43    44    32    (3)   134    194    (60)
Other income   4    4    4    4    2    -    2    16    12    4 
Total insurance premiums and other income   279    249    282    280    289    30    (10)   1,090    1,185    (95)
Expense                                                  
Insurance losses and loss adjustment expenses   54    61    122    56    57    (7)   (3)   293    410    (117)
Acquisition and underwriting expenses                                                  
Compensation and benefit expense   15    18    16    19    17    (3)   (2)   68    63    5 
Insurance commission expense   94    95    95    93    95    (1)   (1)   378    374    4 
Other expense   38    35    34    34    34    3    4    140    141    (1)
Total acquisition and underwriting expense   147    148    145    146    146    (1)   1    586    578    8 
Total expense   201    209    267    202    203    (8)   (2)   879    988    (109)
Income (loss) from cont. ops before income tax expense  $78   $40   $15   $78   $86   $38   $(8)  $211   $197   $14 
                                                   
Balance Sheet (Period-End)                                                  
Cash, trading and investment securities  $5,053   $4,991   $5,312   $5,327   $5,313   $62   $(260)               
Premiums receivable and other insurance assets   1,813    1,805    1,769    1,732    1,706    8    107                
Other assets   187    201    179    183    171    (14)   16                
Total assets  $7,053   $6,997   $7,260   $7,242   $7,190   $56   $(137)               
                                                   
Key Statistics (Continuing Operations)                                                  
Written Premiums                                                  
Dealer Products & Services (1)  $222   $254   $263   $239   $248   $(32)  $(26)  $978   $1,023   $(45)
Corporate   -    -    -    -    0    -    (0)   -    -    - 
Total written premiums and revenue (1)  $222   $254   $263   $239   $248   $(32)  $(26)  $978   $1,023   $(45)
                                                   
Loss ratio   22.5%   25.7%   51.2%   23.8%   23.1%             30.9%   41.6%     
Underwriting expense ratio   62.6%   62.0%   61.0%   62.1%   59.9%             61.9%   58.6%     
Combined ratio   85.1%   87.7%   112.2%   85.9%   83.0%             92.8%   100.2%     
                                                   

(1) Excludes Canadian Personal Lines business, which is in runoff

 

4Q 2015 Preliminary Results11 

 

 

ALLY FINANCIAL INC.

MORTGAGE - CONDENSED FINANCIAL STATEMENTS AND KEY STATISTICS

 

($ in millions)

 

   QUARTERLY TRENDS   CHANGE VS.   FULL YEAR 
                                         
Income Statement  4Q 15   3Q 15   2Q 15   1Q 15   4Q 14   3Q 15   4Q 14   2015   2014   CHANGE 
Net financing revenue                                                  
Total financing revenue and other interest income  $81   $81   $70   $70   $65   $-   $16   $302   $282   $20 
Interest expense   59    61    55    55    57    (2)   2    230    239    (9)
Net financing revenue   22    20    15    15    8    2    14    72    43    29 
Gain on mortgage loans, net   -    9    4    66    -    (9)   -    79    6    73 
Other income, net of losses   3    1    2    2    4    2    (1)   8    11    (3)
Total other revenue   3    10    6    68    4    (7)   (1)   87    17    70 
Total net revenue   25    30    21    83    12    (5)   13    159    60    99 
Provision for loan losses   (3)   6    3    (5)   (14)   (9)   11    1    (69)   70 
Noninterest expense                                                  
Compensation and benefits expense   3    3    2    3    2    -    1    11    11    - 
Representation and warranty expense   (2)   (3)   (9)   -    (11)   1    9    (13)   (10)   (3)
Other operating expense   18    18    18    17    15    0    3    70    69    1 
Total noninterest expense   19    18    11    20    6    1    13    68    70    (2)
Income (loss) from cont. ops before income tax expense  $9   $6   $7   $68   $20   $3   $(11)  $90   $59   $31 
                                                   
Balance Sheet (Period-End)                                                  
Loans held-for-sale  $-   $-   $46   $42   $452   $-   $(452)               
Finance receivables and loans, net:                                                  
Consumer loans   9,773    9,770    9,212    7,653    7,474    3    2,299                
Allowance for loan losses   (114)   (119)   (119)   (119)   (152)   5    38                
Total finance receivables and loans, net   9,659    9,651    9,093    7,534    7,322    8    2,337                
Other assets (1)   109    121    110    118    110    (12)   (1)               
Total assets  $9,768   $9,772   $9,249   $7,694   $7,884   $(4)  $1,884                
                                                   

(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

 

4Q 2015 Preliminary Results12 

 

 

ALLY FINANCIAL INC.

CORPORATE AND OTHER - CONDENSED FINANCIAL STATEMENTS

 

($ in millions)

 

   QUARTERLY TRENDS   CHANGE VS.   FULL YEAR 
                                         
Income Statement  4Q 15   3Q 15   2Q 15   1Q 15   4Q 14   3Q 15   4Q 14   2015   2014   CHANGE 
Net financing revenue                                                  
Total financing revenue and other interest income  $98   $98   $94   $89   $88   $-   $10   $379   $361   $18 
Interest expense                                                  
Core original issue discount amortization (1)   12    11    11    10    36    1    (24)   45    172    (127)
Other interest expense   40    23    46    65    37    17    3    173    234    (61)
Total interest expense   52    34    57    75    73    18    (21)   218    406    (188)
Net financing revenue   46    64    37    14    15    (18)   31    161    (45)   206 
Other revenue                                                  
Loss on extinguishment of debt   (3)   -    (156)   (198)   (156)   (3)   153    (357)   (202)   (155)
Other gain on investments, net   21    11    16    22    16    10    5    70    38    32 
Other income, net of losses (2)   6    15    22    31    2    (9)   4    74    30    44 
Total other (loss) revenue   24    26    (118)   (145)   (138)   (2)   162    (213)   (134)   (79)
Total net revenue   70    90    (81)   (131)   (123)   (20)   193    (52)   (179)   127 
Provision for loan losses   7    4    5    (6)   (6)   3    13    10    (16)   26 
Noninterest expense                                                  
Compensation and benefits expense   100    93    95    107    105    7    (5)   395    419    (24)
Other operating expense (3)   (48)   (55)   (49)   (62)   (12)   7    (36)   (214)   (143)   (71)
Total noninterest expense   52    38    46    45    93    14    (41)   181    276    (95)
Income (loss) from cont. ops before income tax expense  $11   $48   $(132)  $(170)  $(210)  $(37)  $221   $(243)  $(439)  $196 
                                                   
Balance Sheet (Period-End)                                                  
Cash, trading and investment securities  $18,453   $18,962   $19,655   $20,154   $16,368   $(509)  $2,085                
Loans held-for-sale   105    37    36    17    36    68    69                
Finance receivables and loans, net                                                  
Consumer loans   66    107    69    68    35    (41)   31                
Commercial loans (4)   2,617    2,266    2,131    1,987    1,865    351    752                
Allowance for loan losses   (53)   (47)   (40)   (36)   (42)   (6)   (11)               
Total finance receivables and loans, net   2,630    2,326    2,160    2,019    1,858    304    772                
Other assets   4,936    3,979    4,311    5,049    5,107    957    (171)               
Total assets  $26,124   $25,304   $26,162   $27,239   $23,369   $820   $2,755                
                                                   
OID Amortization Schedule (5)       2016   2017   2018 and After                               
Remaining Core OID Amortization (as of 12/31/2015)       $55   $68   Avg = $51/yr                               
                                                   

(1) Does not include accelerated OID expense of $7 million in 2Q15, $7 million in 1Q15, $6 million in 4Q14, $14 million in 2015 and $14 million in 2014 which is reflected in other revenue

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

(3) Other operating expenses includes (i) certain unallocated expenses primarily associated with operations that have been sold or discontinued and (ii) corporate overhead allocated to the other business segments. Amounts of corporate overhead allocated were $184 million for 4Q15, $194 million for 3Q15, $191 million for 2Q15, $209 million for 1Q15, $189 million for 4Q14, $779 million for 2015 and $791 million for 2014. The receiving business segment records the allocation of corporate overhead expense within other operating expenses.

(4) Includes intercompany

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

 

4Q 2015 Preliminary Results13 

 

 

ALLY FINANCIAL INC.

CREDIT RELATED INFORMATION

 

($ in millions)

 

   QUARTERLY TRENDS   CHANGE VS. 
                             
Asset Quality - Consolidated (1)  4Q 15   3Q 15   2Q 15   1Q 15   4Q 14   3Q 15   4Q 14 
Ending loan balance  $111,600   $107,990   $105,172   $99,856   $99,947   $3,609   $11,653 
30+ Accruing DPD  $1,969   $1,754   $1,474   $1,157   $1,607   $216   $362 
30+ Accruing DPD %   1.8%   1.6%   1.4%   1.2%   1.6%          
Non-performing loans (NPLs)  $753   $637   $642   $593   $645   $116   $108 
Net charge-offs (NCOs)  $198   $161   $100   $150   $170   $37   $28 
Net charge-off rate (2)   0.7%   0.6%   0.4%   0.6%   0.7%          
                                    
Provision for loan losses  $240   $211   $140   $116   $155   $28   $84 
Allowance for loan losses (ALLL)  $1,054   $1,018   $974   $933   $977   $36   $77 
                                    
ALLL as % of Loans (3)   0.9%   0.9%   0.9%   0.9%   1.0%          
ALLL as % of NPLs (3)   140.0%   159.9%   151.6%   157.5%   151.5%          
ALLL as % of NCOs (3)   133.1%   158.2%   243.8%   155.0%   143.5%          
                                    
U.S. Auto Delinquencies - HFI Retail Contract Amount (4)                                   
Delinquent contract $  $1,870   $1,656   $1,389   $1,076   $1,543   $214   $327 
% of retail contract $ outstanding   2.91%   2.60%   2.29%   1.87%   2.73%          
                                    
U.S. Auto Annualized Net Charge-Offs - HFI Retail Contract Amount                                   
Net charge-offs  $194   $156   $96   $132   $160   $37   $34 
% of avg. HFI assets   1.21%   1.01%   0.65%   0.93%   1.10%          
                                    
U.S. Auto Annualized Net Charge-Offs - HFI Commercial Contract Amount                                   
Net charge-offs  $3   $0   $1   $(1)  $(0)  $3   $3 
% of avg. HFI assets   0.04%   0.00%   0.01%   -0.01%   0.00%          
                                    

(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

(4) Dollar amount of accruing contracts greater than 30 days past due

 

4Q 2015 Preliminary Results14 

 

 

ALLY FINANCIAL INC.

CREDIT RELATED INFORMATION, CONTINUED

 

($ in millions)

 

CONTINUING OPERATIONS                            
Automotive Finance (1)  QUARTERLY TRENDS   CHANGE VS. 
Consumer  4Q 15   3Q 15   2Q 15   1Q 15   4Q 14   3Q 15   4Q 14 
Allowance for loan losses  $834   $804   $767   $711   $685   $30   $150 
Total consumer loans (2)  $64,292   $63,610   $60,786   $57,447   $56,570   $682   $7,722 
Coverage ratio   1.3%   1.3%   1.3%   1.2%   1.2%          
                                    
Commercial                                   
Allowance for loan losses  $53   $48   $48   $67   $98   $4   $(45)
Total commercial loans  $34,895   $32,322   $33,026   $32,753   $34,022   $2,573   $873 
Coverage ratio   0.2%   0.1%   0.1%   0.2%   0.3%          
                                    
Mortgage (1)                                   
Consumer                                   
Allowance for loan losses  $114   $119   $119   $119   $152   $(5)  $(38)
Total consumer loans  $9,773   $9,769   $9,211   $7,652   $7,473   $3   $2,299 
Coverage ratio   1.2%   1.2%   1.3%   1.6%   2.0%          
                                    
Corporate and Other (1)(3)                                   
Allowance for loan losses  $53   $47   $40   $36   $42   $6   $11 
Total commercial loans  $2,640   $2,289   $2,149   $2,004   $1,882   $350   $758 
Coverage ratio   2.0%   2.0%   1.9%   1.8%   2.2%          
                                    

(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) Includes $66 million Corp. Treasury hedging activity related to domestic consumer auto outstandings in 4Q15, $107 million in 3Q15, $69 million in 2Q15, $68 million in 1Q15, and $35 million in 4Q14

(3) Includes Insurance

 

4Q 2015 Preliminary Results15 

 

 

ALLY FINANCIAL INC.

CAPITAL

 

($ in billions)

 

   QUARTERLY TRENDS   CHANGE VS. 
   Basel III Transition   Basel I         
Capital (1)  4Q 15   3Q 15   2Q 15   1Q 15   4Q 14   3Q 15   4Q 14 
Risk-weighted assets  $135.9   $133.8   $134.0   $130.1   $130.6   $2.1   $5.3 
                                    
Common Equity Tier 1 (CET1) capital ratio (Tier 1 common
prior to 1Q15)		   9.2%   10.0%   9.8%   10.9%   9.6%          
Tier 1 capital ratio   11.1%   12.0%   11.7%   13.2%   12.5%          
Total capital ratio   12.5%   12.9%   12.6%   14.1%   13.2%          
                                    
Tangible common equity / Tangible assets   8.0%   8.8%   8.6%   9.6%   9.3%          
Tangible common equity / Risk-weighted assets   9.4%   10.3%   10.0%   11.3%   10.8%          
                                    
Shareholders’ equity  $13.4   $14.6   $14.3   $15.9   $15.4   $(1.2)  $(2.0)
less:  Preferred equity   (0.7)   (0.8)   (0.8)   (1.3)   (1.3)   0.1    0.6 
Disallowed DTA   (0.4)   (0.4)   (0.4)   (0.5)   (1.3)   -    0.9 
Certain AOCI items and other adjustments   0.2    -    0.1    -    (0.2)   0.2    0.4 
Common Equity Tier 1 capital (2)  $12.5   $13.4   $13.2   $14.2   $12.6   $(0.9)  $(0.1)
                                    
Common Equity Tier 1 capital  $12.5   $13.4   $13.2   $14.2   $12.6   $(0.9)  $(0.1)
add:  Preferred equity   0.7    0.7    0.7    1.1    1.3    -    (0.6)
Trust preferred securities   2.5    2.5    2.5    2.5    2.5    -    - 
less:  Other adjustments   (0.6)   (0.6)   (0.7)   (0.7)   -    -    (0.6)
Tier 1 capital  $15.1   $16.1   $15.7   $17.1   $16.4   $(1.0)  $(1.3)
                                    
Tier 1 capital  $15.1   $16.1   $15.7   $17.1   $16.4   $(1.0)  $(1.3)
add:  Qualifying subordinated debt and redeemable preferred stock   0.9    0.3    0.3    0.4    0.2    0.6    0.7 
Allowance for loan and lease losses includible in Tier 2 capital and other adjustments   1.0    1.0    0.9    0.9    0.7    -    0.3 
Total capital  $17.0   $17.3   $16.9   $18.4   $17.3   $(0.3)  $(0.3)
                                    
Total shareholders' equity  $13.4   $14.6   $14.3   $15.9   $15.4   $(1.2)  $(2.0)
less:  Preferred equity   (0.7)   (0.8)   (0.8)   (1.3)   (1.3)   0.1    0.6 
Goodwill and intangible assets   -    -    -    -    -    -    - 
Tangible common equity (3)  $12.7   $13.8   $13.5   $14.7   $14.1   $(1.1)  $(1.4)
                                    
Total assets  $158.6   $155.9   $156.3   $153.3   $151.6   $2.7   $7.0 
less:  Goodwill and intangible assets   -    -    -    -    -    -    - 
Tangible assets  $158.6   $155.9   $156.3   $153.3   $151.6   $2.7   $7.0 
                                    

Note: Numbers may not foot due to rounding

(1) Basel III rules became effective on January 1, 2015, subject to transition provisions primarily related to deductions and adjustments impacting CET1 capital and Tier 1 capital; all data prior to that date is based on Basel I rules.

(2) Tier 1 Common and Common Equity Tier 1 are non-GAAP financial measures. We define Tier 1 Common and Common Equity Tier 1 as Tier 1 capital less non-common 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 ratio and Common Equity Tier 1 ratio, in addition to other 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. Ally believes the Tier 1 Common ratio and Common Equity Tier 1 ratio are important because 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.

(3) 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 2015 Preliminary Results16 

 

 

ALLY FINANCIAL INC.

LIQUIDITY

 

($ in billions)

 

   12/31/2015   9/30/2015   12/31/2014 
Available Liquidity  Parent (1)   Ally Bank   Parent (1)   Ally Bank   Parent (1)   Ally Bank 
Cash and cash equivalents (2)  $2.5   $3.8   $2.5   $2.4   $2.7   $2.3 
Highly liquid securities (3)   2.9    5.5    1.8    6.6    2.1    5.8 
Current committed unused capacity   0.3    -    1.3    0.2    3.4    0.3 
Subtotal  $5.7   $9.3   $5.6   $9.2   $8.2   $8.4 
Ally Bank intercompany loan (4)   0.6    (0.6)   -    -    0.6    (0.6)
Total Current Available Liquidity  $6.3   $8.7   $5.6   $9.2   $8.8   $7.8 

 

Unsecured Long-Term Debt Maturity Profile  2016   2017   2018   2019   2020   2021 and
After		 
Consolidated remaining maturities (5)  $1.9   $4.4   $3.7   $1.6   $2.2   $8.3 
                               

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

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

(3) Includes unencumbered UST, Agency debt and Agency MBS

(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) Excludes OID

 

4Q 2015 Preliminary Results17 

 

 

ALLY FINANCIAL INC.

NET INTEREST MARGIN AND DEPOSITS

 

($ in millions)

 

   QUARTERLY TRENDS   CHANGE VS. 
                             
Average Balance Details  4Q 15   3Q 15   2Q 15   1Q 15   4Q 14   3Q 15   4Q 14 
Retail Auto Loan  $64,231   $62,115   $60,436   $58,373   $58,544   $2,116   $5,687 
Auto Lease (net of dep)   16,824    17,519    18,520    19,405    19,479    (695)   (2,655)
Commercial Auto   34,077    31,726    32,547    32,429    33,218    2,351    859 
Corporate Finance   2,506    2,309    2,114    1,995    1,864    197    642 
Mortgage   9,809    9,564    8,363    8,006    7,670    245    2,139 
Cash, Securities and Other   18,822    21,413    21,087    20,300    19,733    (2,591)   (911)
Total Earning Assets  $146,269   $144,646   $143,067   $140,508   $140,508   $1,623   $5,761 
                                    
Interest Revenue  $1,582   $1,567   $1,517   $1,457   $1,469   $15   $113 
                                    
LT Unsecured Debt  $21,716   $20,884   $22,564   $22,838   $24,468   $832   $(2,752)
Secured Debt   40,134    42,150    42,186    40,562    41,264    (2,016)   (1,130)
Deposits (2)   64,985    62,882    61,305    59,445    57,381    2,103    7,604 
Other Borrowings (3)   11,695    11,890    9,012    9,216    9,595    (195)   2,100 
Total Funding Sources (1)  $138,530   $137,806   $135,067   $132,061   $132,708   $724   $5,822 
                                    
Interest Expense  $593   $593   $597   $602   $636   $-   $(43)
                                    
Net Financing Revenue (4)  $989   $974   $920   $855   $833   $15   $156 
                                    
Net Interest Margin (yield details)                                   
Retail Auto Loan   5.3%   5.2%   5.3%   5.3%   5.2%          
Auto Lease (net of dep)   6.5%   6.8%   6.4%   5.7%   5.5%          
Commercial Auto   2.8%   2.9%   2.9%   3.0%   3.0%          
Corporate Finance   6.3%   6.2%   6.6%   6.9%   6.4%          
Mortgage   3.3%   3.4%   3.4%   3.5%   3.4%          
Cash, Securities and Other   2.0%   1.8%   1.7%   1.7%   1.7%          
Total Earning Assets   4.3%   4.3%   4.3%   4.2%   4.1%          
                                    
LT Unsecured Debt   4.6%   5.0%   5.0%   5.2%   5.3%          
Secured Debt   1.3%   1.2%   1.2%   1.2%   1.2%          
Deposits   1.2%   1.1%   1.2%   1.2%   1.2%          
Other Borrowings (3)   1.0%   0.8%   0.7%   0.7%   0.7%          
Total Funding Sources (1)   1.7%   1.7%   1.8%   1.9%   1.9%          
                                    
NIM (1)   2.7%   2.7%   2.6%   2.5%   2.4%          
                                    
Key Deposit Statistics                                   
Average retail CD maturity (months)   31.8    32.0    32.1    31.6    31.6    (0.3)   0.2 
Average retail deposit rate   1.12%   1.14%   1.15%   1.17%   1.16%          
                                    
Ally Financial Deposits Levels                                   
Ally Bank retail  $55,437   $53,501   $51,750   $50,633   $47,954   $1,936   $7,483 
Ally Bank brokered   10,723    10,201    9,861    9,853    9,885    522    838 
Other   318    318    319    371    301    (0)   17 
Total deposits  $66,478   $64,020   $61,930   $60,857   $58,139   $2,458   $8,339 
                                    
Ally Bank Deposit Mix                                   
Retail CD   31.8%   34.0%   36.3%   37.9%   40.1%          
MMA/OSA/Checking   52.0%   50.0%   47.7%   45.8%   42.8%          
Brokered   16.2%   16.0%   16.0%   16.3%   17.1%          
                                    

(1) Excludes OID

(2) Includes brokered deposits. Includes average noninterest-bearing deposits of $95 million in 4Q15, $91 million in 3Q15 and $68 million in 4Q14

(3) Includes Demand Notes, FHLB and Repurchase Agreements

(4) Excludes dividend income from equity investments

 

4Q 2015 Preliminary Results18 

 

 

ALLY FINANCIAL INC.

ALLY BANK CONSUMER MORTGAGE HFI PORTFOLIO (PERIOD-END)

 

($ in billions)

 

   HISTORICAL QUARTERLY TRENDS 
                     
Loan Value  4Q 15   3Q 15   2Q 15   1Q 15   4Q 14 
Gross carry value  $9.8   $9.8   $9.2   $7.7   $7.5 
Net carry value  $9.7   $9.7   $9.1   $7.5   $7.3 
                          
Estimated Pool Characteristics                         
Ongoing (post 1/1/2009)   65.6%   64.4%   60.7%   50.9%   46.9%
Legacy (pre 1/1/2009)   34.4%   35.6%   39.3%   49.1%   53.1%
% Second lien   6.5%   6.8%   7.7%   9.8%   10.5%
% Interest only   6.2%   7.3%   9.1%   11.1%   12.5%
% 30+ Day delinquent   2.1%   2.1%   2.2%   2.8%   3.0%
% Low/No documentation   7.8%   8.0%   8.8%   11.1%   12.1%
% Non-primary residence   4.8%   4.8%   4.9%   3.8%   3.7%
Refreshed FICO   754    753    751    748    734 
Wtd. Avg. LTV/CLTV (1)   65.9%   66.5%   67.7%   68.6%   71.5%
Higher risk geographies (2)   43.1%   43.0%   42.7%   41.5%   41.1%
                          

(1) Updated home values derived using a combination of appraisals, BPOs, AVMs and MSA level house price indices; calculation only includes first liens

(2) Includes CA, FL, MI and AZ

 

4Q 2015 Preliminary Results19 

 

 

ALLY FINANCIAL INC.

DISCONTINUED OPERATIONS

 

($ in millions)

 

   QUARTERLY TRENDS   CHANGE VS. 
                             
Impact of Discontinued Operations (1)  4Q 15   3Q 15   2Q 15   1Q 15   4Q 14   3Q 15   4Q 14 
Auto Finance  $(5)  $(4)  $(4)  $454   $23   $(1)  $(28)
Insurance   -    -    3    -    0    -    (0)
Corporate and Other   2    2    14    6    6    0    (4)
Consolidated pretax income  $(3)  $(2)  $14   $460   $29   $(1)  $(32)
Tax expense (benefit)   10    4    (0)   63    2    7    8 
Consolidated net income  $(13)  $(5)  $13   $397   $26   $(8)  $(39)
                                    
Assets of discontinued operations held-for-sale  $-   $-   $-   $-   $634   $-   $(634)
                                    

(1) Disc ops activity reflects several actions including divestitures of international businesses and other mortgage related charges in addition to certain discrete tax items

 

4Q 2015 Preliminary Results20 

 

 

ALLY FINANCIAL INC.

PER SHARE-RELATED INFORMATION

 

($ in millions, shares in thousands)

 

   QUARTERLY TRENDS   CHANGE VS.   FULL YEAR 
                                         
Earnings Per Share Data  4Q 15   3Q 15   2Q 15   1Q 15   4Q 14   3Q 15   4Q 14   2015   2014   CHANGE 
Net income (loss)  $263   $268   $182   $576   $177   $(5)  $86   $1,289   $1,150   $139 
less:  Preferred stock dividends   1,216    38    1,251    67    68    1,178    1,148    2,571    268    2,303 
Net income (loss) available to common shareholders  $(953)  $230   $(1,069)  $509   $109   $(1,183)  $(1,062)  $(1,282)  $882   $(2,164)
                                                   
Weighted-average shares outstanding - basic (1)   483,300    483,073    482,847    482,248    481,861    227    1,439    482,873    481,155    1,718 
                                                   
Weighted-average shares outstanding - diluted (1)(2)   484,845    484,399    483,687    482,782    483,091    446    1,754    483,934    481,934    2,000 
                                                   
Net income (loss) per share - basic (1)  $(1.97)  $0.48   $(2.22)  $1.06   $0.23   $(2.45)  $(2.20)  $(2.66)  $1.83   $(4.49)
                                                   
Net income (loss) per share - diluted (1)(2)  $(1.97)  $0.47   $(2.22)  $1.06   $0.23   $(2.44)  $(2.20)  $(2.66)  $1.83   $(4.49)
                                                   
Adjusted Tangible Book Value(3) ($ billions)                                                  
GAAP shareholder's equity  $13.4   $14.6   $14.3   $15.9   $15.4   $(1.2)  $(2.0)  $13.4   $15.4      
Preferred equity and goodwill   (0.7)   (0.8)   (0.8)   (1.3)   (1.3)   0.1    0.6    (0.7)   (1.3)     
Tangible common equity   12.7    13.8    13.5    14.7    14.1    (1.0)   (1.4)   12.7    14.1      
Tax-effected bond OID (4)   (0.9)   (0.9)   (0.9)   (0.9)   (0.9)   0.0    0.0    (0.9)   (0.9)     
Series G discount   -    (1.2)   (1.2)   (2.3)   (2.3)   1.2    2.3    -    (2.3)     
Adjusted tangible book value  $11.9   $11.7   $11.4   $11.4   $10.9   $0.1   $1.0   $11.9   $10.9      
                                                   
Adjusted Tangible Book Value Per Share(3)                                                  
GAAP shareholder's equity  $27.9   $30.3   $29.7   $33.1   $32.1   $(2.4)  $(4.2)  $27.9   $32.1      
Preferred equity and goodwill   (1.5)   (1.7)   (1.7)   (2.7)   (2.7)   0.2    1.2    (1.5)   (2.7)     
Tangible common equity   26.4    28.6    27.9    30.4    29.4    (2.2)   (3.0)   26.4    29.4      
Tax-effected bond OID (4)   (1.8)   (1.8)   (1.8)   (1.8)   (1.9)   0.0    0.1    (1.8)   (1.9)     
Series G discount   -    (2.4)   (2.4)   (4.9)   (4.9)   2.4    4.9    -    (4.9)     
Adjusted tangible book value per share  $24.6   $24.3   $23.7   $23.7   $22.7   $0.3   $1.9   $24.6   $22.7      
                                                   

(1) Includes shares related to share-based compensation that vested but were not yet issued

(2) Due to antidilutive effect of the net loss from continuing operations attributable to common shareholders for the year ended December 31, 2015 and June 30, 2015, basic weighted-average common shares outstanding were used to calculate basic and diluted earnings per share

(3) Represents a non-GAAP Financial measure

(4) Assumes 34% tax rate

 

4Q 2015 Preliminary Results21 

 

 

ALLY FINANCIAL INC.

SUPPLEMENTAL FINANCIAL DATA

 

($ in millions)

 

   QUARTERLY TRENDS   CHANGE VS.   FULL YEAR 
                                         
Core ROTCE Calculation  4Q 15   3Q 15   2Q 15   1Q 15   4Q 14   3Q 15   4Q 14   2015   2014   CHANGE 
Pre-tax income (loss) from continuing operations  $431   $417   $263   $282   $187   $14   $244   $1,393   $1,246   $147 
add:  Core original issue discount expense   12    11    18    17    42    1    (30)   59    186    (127)
Repositioning items   3    2    154    190    167    1    (164)   349    187    162 
Core pre-tax income (ex. repositioning)  $446   $431   $435   $490   $396   $15   $50   $1,801   $1,619   $182 
Normalized income tax expense at 34%   152    146    148    166    135    5    17    612    550    62 
Core net income   294    284    287    323    262    10    33    1,189    1,069    120 
Preferred dividends (Series A & G)   37    38    58    67    68    (1)   (31)   200    268    (69)
Operating net income available to common shareholders (1)  $257   $246   $229   $256   $194   $11   $64   $990   $800   $189 
                                                   
Tangible common equity (2)  $13,237   $13,606   $14,053   $14,384   $14,012   $(369)  $(775)  $13,416   $13,522   $(106)
less: Unamortized core original issue discount   1,310    1,322    1,333    1,345    1,369    (12)   (59)   1,327    1,441    (114)
Net deferred tax asset   1,404    1,540    1,632    1,720    1,797    (136)   (394)   1,583    1,923    (341)
Normalized common equity (1)(3)  $10,523   $10,745   $11,087   $11,319   $10,846   $(221)  $(322)  $10,506   $10,157   $349 
                                                   
Core ROTCE (1)   9.8%   9.2%   8.3%   9.1%   7.1%             9.4%   7.9%     
                                                   
Adjusted Efficiency Ratio Calculation                                                  
Total noninterest expense  $668   $674   $724   $695   $672   $(6)  $(4)  $2,761   $2,948   $(187)
less: Rep and warrant expense   (2)   (3)   (9)   -    (11)   1    9    (13)   (10)   (3)
Insurance expense   201    209    267    202    203    (8)   (2)   879    988    (109)
Repositioning items   1    2    4    -    19    (1)   (18)   7    39    (31)
Numerator  $468   $465   $462   $493   $461   $2   $6   $1,888   $1,932   $(44)
                                                   
Total net revenue  $1,339   $1,302   $1,127   $1,093   $1,014   $37   $325   $4,861   $4,651   $210 
add:  Original issue discount   12    11    18    17    42    1    (30)   59    186    (127)
Repositioning   2    -    150    190    148    2    (147)   342    148    194 
less:  Insurance revenue   279    249    282    280    289    30    (10)   1,090    1,185    (95)
Denominator  $1,074   $1,064   $1,013   $1,021   $916   $10   $158   $4,172   $3,800   $372 
                                                   
Adjusted Efficiency Ratio (1)   44%   44%   46%   48%   50%             45%   51%     
                                                   
Noninterest Expense                                                  
Compensation and benefits  $237   $235   $236   $255   $237   $2   $-   $963   $947   $16 
Technology and communications   69    65    64    69    79    5    (10)   267    334    (67)
Professional services   25    24    25    20    26    1    (1)   93    100    (6)
Servicing expenses (4)   56    51    50    48    52    5    4    204    205    (1)
Advertising and marketing   27    26    23    31    30    1    (3)   107    111    (5)
Other controllable expenses (5)   50    50    50    47    52    (0)   (3)   197    194    3 
Controllable Expense  $465   $449   $448   $469   $478   $15   $(13)  $1,831   $1,891   $(60)
Other Noninterest Expense   202    222    272    226    176    (20)   27    922    1,018    (96)
Total Noninterest Expense (ex. repositioning)  $667   $672   $720   $695   $653   $(5)  $14   $2,754   $2,909   $(156)
Repositioning expenses   1    2    4    -    19    (1)   (18)   7    39    (31)
Total Noninterest Expense  $668   $674   $724   $695   $672   $(6)  $(4)  $2,761   $2,948   $(187)
                                                   

(1) Represents a non-GAAP financial measure

(2) See page 16 for details

(3) Normalized common equity calculated using 2 period average

(4) Includes lease and loan administration expenses and vehicle remarketing and repossession expenses

(5) Includes occupancy and premises and equipment depreciation

 

4Q 2015 Preliminary Results22