EX-99.3 4 v437818_ex99-3.htm EXHIBIT 99.3

 

Exhibit 99.3

 

 

FIRST QUARTER 2016

 

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. Certain non-GAAP measures are provided in this presentation which are important to the reader of the Consolidated Financial Statements but should be supplemental to primary U.S. GAAP measures. 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.

 

1Q 2016 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 Finance 12
Corporate Finance 13
Corporate and Other 14
   
Credit Related Information 15-16
   
Supplemental Detail  
Capital 17
Liquidity 18
Net Interest Margin and Deposits 19
Ally Bank Consumer Mortgage HFI Portfolio 20
Discontinued Operations 21
Per Share-Related Information 22
Supplemental Financial Data 23

 

1Q 2016 Preliminary Results3 

 

 

ALLY FINANCIAL INC.

CONSOLIDATED FINANCIAL HIGHLIGHTS

 

($ in millions, shares in thousands)

 

   QUARTERLY TRENDS   CHANGE VS. 
   1Q 16   4Q 15   3Q 15   2Q 15   1Q 15   4Q 15   1Q 15 
Selected Income Statement Data                                   
Net financing revenue (ex. OID)  $964   $995   $981   $927   $860   $(31)  $103 
Total other revenue (ex. OID)   378    356    332    218    250    22    128 
Total net revenue (ex. OID)   1,342    1,351    1,313    1,145    1,110    (10)   231 
Provision for loan losses   220    240    211    140    116    (20)   104 
Controllable expenses (1)   477    466    452    452    469    11    8 
Other noninterest expenses   233    202    222    272    226    31    7 
Core pre-tax income (2)  $412   $443   $428   $281   $299   $(32)  $112 
Core OID amortization expense (3)    15    12    11    18    17    2    (3)
Income tax (benefit) expense   150    155    144    94    103    (5)   47 
Income (loss) from discontinued operations   3    (13)   (5)   13    397    16    (394)
Net income  $250   $263   $268   $182   $576   $(13)  $(326)
Preferred stock dividends   15    1,216    38    1,251    67    (1,201)   (52)
Net income (loss) available to common shareholders  $235   $(953)  $230   $(1,069)  $509   $1,188   $(274)
                                    
Selected Balance Sheet Data (Period-End)                                   
Total assets  $156,505   $158,581   $155,916   $156,278   $153,324   $(2,076)  $3,181 
Consumer loans   73,688    74,065    73,380    69,998    65,100    (377)   8,588 
Commercial loans   37,188    37,535    34,611    35,175    34,757    (347)   2,431 
Allowance for loan losses   (1,077)   (1,054)   (1,018)   (974)   (933)   (23)   (144)
Deposits   70,265    66,478    64,020    61,930    60,857    3,787    9,408 
Common equity (4)   13,127    12,743    13,786    13,482    14,679    384    (1,552)
Total equity   13,823    13,439    14,599    14,295    15,934    384    (2,111)
                                    
Common Share Count                                   
Weighted average basic (5)   484,233    483,300    483,073    482,847    482,248    933    1,985 
Weighted average diluted (5)(6)   484,654    484,845    484,399    483,687    482,782    (191)   1,873 
Issued shares outstanding (period-end)   483,475    481,980    481,750    481,750    481,503    1,495    1,972 
                                    
Per Common Share Data                                   
Earnings per share (basic) (5)  $0.49   $(1.97)  $0.48   $(2.22)  $1.06   $2.46   $(0.57)
Earnings per share (diluted) (5)(6)   0.49    (1.97)   0.47    (2.22)   1.06    2.46    (0.57)
Adjusted earnings per share (7)   0.52    0.52    0.51    0.46    0.52    0.00    0.00 
Book value per share   28.6    27.9    30.3    29.7    33.1    0.7    (4.5)
Tangible book value per share   27.1    26.4    28.6    27.9    30.4    0.7    (3.3)
Adjusted tangible book value per share (7)   25.4    24.6    24.3    23.7    23.7    0.8    1.6 
                                    
Select Financial Ratios                                   
Net interest margin (8)   2.6%   2.7%   2.7%   2.6%   2.5%          
Cost of funds (incl. OID)   1.9%   1.8%   1.8%   1.8%   1.9%          
Cost of funds (excl. OID)   1.8%   1.7%   1.7%   1.8%   1.9%          
Adjusted efficiency ratio (9)   45%   44%   44%   46%   48%          
Return on average assets (10)   0.6%   0.7%   0.7%   0.5%   1.5%          
Return on average total equity (10)   7.3%   7.4%   7.4%   4.8%   14.9%          
Return on average tangible common equity (10)   7.3%   n/m    6.8%   n/m    14.2%          
Core ROTCE (9)(10)   9.8%   9.8%   9.2%   8.3%   9.1%          
                                    
Capital Ratios (11)                                   
Common Equity Tier 1 (CET1) capital ratio (12)   9.5%   9.2%   10.0%   9.8%   10.9%          
Tier 1 capital ratio   11.6%   11.1%   12.0%   11.7%   13.2%          
Total capital ratio   13.0%   12.5%   12.9%   12.6%   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 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 22

(8) Continuing operations only. Excludes OID amortization expense

(9) For more details refer to page 23

(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

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

 

1Q 2016 Preliminary Results4 

 

 

ALLY FINANCIAL INC.

CONSOLIDATED INCOME STATEMENT

  

 

($ in millions)

 

   QUARTERLY TRENDS   CHANGE VS. 
   1Q 16   4Q 15   3Q 15   2Q 15   1Q 15   4Q 15   1Q 15 
Financing revenue and other interest income                                   
Interest and fees on finance receivables and loans  $1,235   $1,212   $1,166   $1,118   $1,074   $23   $161 
Interest on loans held-for-sale   -    -    2    14    24    -    (24)
Total interest and dividends on investment securities   102    98    102    93    88    4    14 
Interest-bearing cash   3    2    2    2    2    1    1 
Operating leases   769    812    830    860    896    (43)   (127)
Total financing revenue and other interest income   2,109    2,124    2,102    2,087    2,084    (15)   25 
Interest expense                                   
Interest on deposits   193    188    181    177    172    5    21 
Interest on short-term borrowings   13    13    13    12    11    -    2 
Interest on long-term debt   442    404    410    419    429    38    13 
Total interest expense   648    605    604    608    612    43    36 
Depreciation expense on operating lease assets   510    536    528    563    622    (26)   (112)
Net financing revenue   951    983    970    916    850    (32)   101 
Other revenue                                   
Servicing fees   13    13    12    10    10    -    3 
Insurance premiums and service revenue earned   230    234    236    237    233    (4)   (3)
Gain on mortgage and automotive loans, net   1    -    (2)   1    46    1    (45)
Loss on extinguishment of debt   (4)   (3)   -    (156)   (198)   (1)   194 
Other gain on investments, net   54    49    6    45    55    5    (1)
Other income, net of losses   82    63    80    74    97    19    (15)
Total other revenue   376    356    332    211    243    20    133 
Total net revenue   1,327    1,339    1,302    1,127    1,093    (12)   234 
Provision for loan losses   220    240    211    140    116    (20)   104 
Noninterest expense                                   
Compensation and benefits expense   252    237    235    236    255    15    (3)
Insurance losses and loss adjustment expenses   73    54    61    122    56    19    17 
Other operating expenses   385    377    378    366    384    8    1 
Total noninterest expense   710    668    674    724    695    42    15 
Income (loss) from continuing operations before income tax expense   397    431    417    263    282    (34)   115 
Income tax (benefit) expense from continuing operations   150    155    144    94    103    (5)   47 
Net income from continuing operations   247    276    273    169    179    (29)   68 
Income (loss) from discontinued operations, net of tax   3    (13)   (5)   13    397    16    (394)
Net income (loss)  $250   $263   $268   $182   $576   $(13)  $(326)

 

1Q 2016 Preliminary Results5 

 

  

ALLY FINANCIAL INC.

CONSOLIDATED PERIOD-END BALANCE SHEET

  

 

($ in millions)

 

   QUARTERLY TRENDS   CHANGE VS. 
   3/31/2016   12/31/2015   9/30/2015   6/30/2015   3/31/2015   12/31/2015   3/31/2015 
Assets                                   
Cash and cash equivalents                                   
Noninterest-bearing  $1,906   $2,148   $1,666   $1,739   $1,552   $(242)  $354 
Interest-bearing   3,095    4,232    3,561    4,119    6,084    (1,137)   (2,989)
Total cash and cash equivalents   5,001    6,380    5,227    5,858    7,636    (1,379)   (2,635)
Federal funds sold and securities purchased under resale agreements   -    -    -    -    50    -    (50)
Investment securities (1)   18,298    17,157    18,758    19,142    17,829    1,141    469 
Loans held-for-sale, net   39    105    37    1,438    1,559    (66)   (1,520)
Finance receivables and loans, net                                   
Finance receivables and loans, net   110,876    111,600    107,991    105,173    99,857    (724)   11,019 
Allowance for loan losses   (1,077)   (1,054)   (1,018)   (974)   (933)   (23)   (144)
Total finance receivables and loans, net   109,799    110,546    106,973    104,199    98,924    (747)   10,875 
Investment in operating leases, net   14,958    16,271    17,292    17,950    19,021    (1,313)   (4,063)
Premiums receivables and other insurance assets   1,828    1,801    1,794    1,759    1,722    27    106 
Other assets   6,582    6,321    5,835    5,932    6,583    261    (1)
Total assets  $156,505   $158,581   $155,916   $156,278   $153,324   $(2,076)  $3,181 
                                    
Liabilities                                   
Deposit liabilities                                   
Noninterest-bearing  $92   $89   $91   $89   $79   $3   $13 
Interest-bearing   70,173    66,389    63,929    61,841    60,778    3,784    9,395 
Total deposit liabilities   70,265    66,478    64,020    61,930    60,857    3,787    9,408 
Short-term borrowings   5,365    8,101    5,378    10,013    6,447    (2,736)   (1,082)
Long-term debt   62,044    66,234    67,293    65,675    65,578    (4,190)   (3,534)
Interest payable   374    350    437    418    440    24    (66)
Unearned insurance premiums and service revenue   2,449    2,434    2,438    2,417    2,374    15    75 
Accrued expense and other liabilities   2,185    1,545    1,751    1,530    1,694    640    491 
Total liabilities  $142,682   $145,142   $141,317   $141,983   $137,390   $(2,460)  $5,292 
                                    
Equity                                   
Common stock and paid-in capital (2)  $21,087   $21,084   $21,066   $21,053   $21,033   $3   $54 
Preferred stock   696    696    813    813    1,255    -    (559)
Accumulated deficit   (7,875)   (8,110)   (7,158)   (7,388)   (6,319)   235    (1,556)
Accumulated other comprehensive (loss) income   (85)   (231)   (122)   (183)   (35)   146    (50)
Total equity   13,823    13,439    14,599    14,295    15,934    384    (2,111)
Total liabilities and equity  $156,505   $158,581   $155,916   $156,278   $153,324   $(2,076)  $3,181 

 

 

(1) Includes held-to-maturity securities

(2) Includes Treasury stock

 

1Q 2016 Preliminary Results6 

 

  

ALLY FINANCIAL INC.

CONSOLIDATED AVERAGE BALANCE SHEET (1)

  

 

($ in millions)

 

   QUARTERLY TRENDS   CHANGE VS. 
   3/31/2016   12/31/2015   9/30/2015   6/30/2015   3/31/2015   12/31/2015   3/31/2015 
Assets                                   
Interest-bearing cash and cash equivalents  $2,867   $2,743   $3,667   $4,013   $4,402   $124   $(1,535)
Federal funds sold and securities purchased under resale agreements   -    -    -    1    7    -    (7)
Investment securities   16,856    16,066    17,745    17,078    15,904    790    952 
Loans held-for-sale, net   35    13    111    1,493    1,947    22    (1,912)
Total finance receivables and loans, net (2)   111,525    110,623    105,604    101,962    98,843    902    12,682 
Investment in operating leases, net   15,638    16,824    17,519    18,520    19,405    (1,186)   (3,767)
Total interest earning assets   146,921    146,269    144,646    143,067    140,508    652    6,413 
Noninterest-bearing cash and cash equivalents   1,841    1,368    1,563    1,337    1,825    473    16 
Other assets (3)   9,667    9,299    9,665    9,472    9,597    368    70 
Allowance for loan losses   (1,060)   (1,030)   (988)   (953)   (969)   (30)   (91)
Total assets  $157,369   $155,906   $154,886   $152,923   $150,961   $1,463   $6,408 
                                    
Liabilities                                   
Interest-bearing deposit liabilities  $68,148   $64,890   $62,791   $61,224   $59,372   $3,258   $8,776 
Short-term borrowings   5,609    6,073    6,745    6,057    6,280    (464)   (671)
Long-term debt (4)   64,841    66,162    66,857    66,371    64,991    (1,321)   (150)
Total interest-bearing liabilities (4)   138,598    137,125    136,393    133,652    130,643    1,473    7,955 
Noninterest-bearing deposit liabilities   92    95    91    81    73    (3)   19 
Other liabilities (3)   5,053    4,144    3,971    4,538    4,548    909    505 
Total liabilities  $143,743   $141,364   $140,455   $138,271   $135,264   $2,379   $8,479 
                                    
Equity                                   
Total equity  $13,626   $14,542   $14,431   $14,652   $15,697   $(916)  $(2,071)
Total liabilities and equity  $157,369   $155,906   $154,886   $152,923   $150,961   $1,463   $6,408 

 

 

(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 $1,298 million in 1Q 2016, $1,310 million in 4Q 2015, $1,322 million in 3Q 2015, $1,334 million in 2Q 2015, and $1,345 million in 1Q 2015

 

1Q 2016 Preliminary Results7 

 

  

ALLY FINANCIAL INC.

SEGMENT HIGHLIGHTS

  

 

($ in millions)

 

   QUARTERLY TRENDS   CHANGE VS. 
   1Q 16   4Q 15   3Q 15   2Q 15   1Q 15   4Q 15   1Q 15 
Automotive Finance  $337   $333   $323   $373   $306   $4   $31 
Insurance   50    78    40    15    78    (28)   (28)
Dealer Financial Services   387    411    363    388    384    (24)   3 
Mortgage Finance   2    9    4    (3)   1    (7)   1 
Corporate Finance   11    9    14    10    17    2    (6)
Corporate and Other (ex. OID) (1)   12    14    47    (114)   (103)   (3)   114 
Core pre-tax income (2)  $412   $443   $428   $281   $299   $(32)  $112 
Core OID amortization expense (3)   15    12    11    18    17    2    (3)
Income tax expense   150    155    144    94    103    (5)   47 
Income (loss) from discontinued operations   3    (13)   (5)   13    397    16    (394)
Net income  $250   $263   $268   $182   $576   $(13)  $(326)

 

 

(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 $2 million in 1Q16, $7 million in 2Q15 and $7 million in 1Q15 due to debt redemption

 

1Q 2016 Preliminary Results8 

 

  

ALLY FINANCIAL INC.

AUTOMOTIVE FINANCE - CONDENSED FINANCIAL STATEMENTS

  

 

($ in millions)

 

   QUARTERLY TRENDS   CHANGE VS. 
   1Q 16   4Q 15   3Q 15   2Q 15   1Q 15   4Q 15   1Q 15 
Income Statement                                   
Net financing revenue                                   
Consumer  $866   $867   $833   $785   $745   $(1)  $121 
Commercial   252    238    228    235    238    14    14 
Loans held-for-sale   -    (1)   2    14    19    1    (19)
Operating leases   769    812    830    860    896    (43)   (127)
Other interest income   3    2    2    2    2    1    1 
Total financing revenue and other interest income   1,890    1,918    1,895    1,896    1,900    (28)   (10)
Interest expense   484    482    497    483    469    2    15 
Depreciation expense on operating lease assets:                                   
Depreciation expense on operating lease assets (ex. remarketing)   565    604    633    671    691    (39)   (126)
Remarketing gains   (55)   (68)   (105)   (108)   (69)   13    14 
Total depreciation expense on operating lease assets   510    536    528    563    622    (26)   (112)
Net financing revenue   896    900    870    850    809    (4)   87 
Other revenue                                   
Servicing fees   13    13    12    10    10    -    3 
Gain/(loss) on automotive loans, net   5    -    (2)   (6)   (15)   5    20 
Other income   59    52    53    51    57    7    2 
Total other revenue   77    65    63    55    52    12    25 
Total net revenue   973    965    933    905    861    8    112 
Provision for loan losses   209    236    201    132    127    (27)   82 
Noninterest expense                                   
Compensation and benefits   126    119    121    123    126    7    - 
Other operating expenses   301    277    288    277    302    24    (1)
Total noninterest expense   427    396    409    400    428    31    (1)
Income before income tax expense  $337   $333   $323   $373   $306   $4   $31 
                                    
Memo: Net lease revenue                                   
Operating lease revenue  $769   $812   $830   $860   $896   $(43)  $(127)
Depreciation expense on operating lease assets (ex. remarketing)   565    604    633    671    691    (39)   (126)
Remarketing gains   (55)   (68)   (105)   (108)   (69)   13    14 
Total depreciation expense on operating lease assets   510    536    528    563    622    (26)   (112)
Net lease revenue  $259   $276   $302   $297   $274   $(17)  $(15)
                                    
Balance Sheet (Period-End)                                   
Cash, trading and investment securities  $31   $31   $32   $33   $34   $-   $(3)
Loans held-for-sale   -    -    -    1,356    1,500    -    (1,500)
Finance receivables and loans, net:                                   
Consumer loans   62,926    64,226    63,503    60,717    57,379    (1,300)   5,547 
Commercial loans (1)   34,348    34,918    32,345    33,044    32,770    (570)   1,578 
Allowance for loan losses   (905)   (887)   (852)   (815)   (778)   (18)   (127)
Total finance receivables and loans, net   96,369    98,257    94,996    92,946    89,371    (1,888)   6,998 
Investment in operating leases, net   14,958    16,271    17,292    17,950    19,021    (1,313)   (4,063)
Other assets   931    1,077    1,523    1,322    1,223    (146)   (292)
Total assets  $112,289   $115,636   $113,843   $113,607   $111,149   $(3,347)  $1,140 

 

 

(1) Includes intercompany

 

1Q 2016 Preliminary Results9 

 

  

ALLY FINANCIAL INC.

AUTOMOTIVE FINANCE - KEY STATISTICS

  

 

   QUARTERLY TRENDS   CHANGE VS. 
   1Q 16   4Q 15   3Q 15   2Q 15   1Q 15   4Q 15   1Q 15 
U.S. Consumer Originations (1) ($ in billions)                                   
Retail standard - new vehicle GM  $1.9   $2.3   $2.8   $2.6   $2.0   $(0.5)  $(0.2)
Retail standard - new vehicle Chrysler (2)   1.0    1.1    1.3    1.3    1.0    (0.0)   0.0 
Retail standard - new vehicle Growth (2)   1.2    1.2    1.3    1.3    1.0    0.0    0.2 
Retail standard - used vehicle - all channels   4.1    3.4    3.9    4.0    3.6    0.7    0.5 
Lease - GM   0.0    0.0    0.0    0.1    1.1    0.0    (1.1)
Lease - Other   0.8    1.0    1.0    0.9    0.5    (0.2)   0.3 
Retail subvented - new vehicle GM   -    0.2    0.7    0.7    0.5    (0.2)   (0.5)
Total originations  $9.0   $9.3   $11.1   $10.8   $9.8   $(0.2)  $(0.8)
                                    
                                    
U.S. Consumer Originations - FICO Score                                   
Super Prime (CB 740+)  $2.0   $2.3   $2.9   $2.6   $2.7   $(0.3)  $(0.7)
Prime (CB 739-660)   3.2    3.2    3.8    3.7    3.4    0.1    (0.1)
Prime/Near (CB 659-620)   2.2    2.1    2.4    2.5    2.1    0.1    0.2 
Non Prime (CB 619-540)   1.0    1.1    1.3    1.3    1.1    (0.1)   (0.1)
Sub Prime (CB 539-0)   0.1    0.1    0.2    0.2    0.1    (0.0)   (0.0)
Unscored (3)   0.5    0.5    0.5    0.5    0.5    (0.0)   (0.0)
Total originations  $9.0   $9.3   $11.1   $10.8   $9.8   $(0.2)  $(0.8)
                                    
U.S. Market                                   
Light vehicle sales (SAAR - units in millions)   17.1    17.8    17.8    17.1    16.7    (0.7)   0.4 
Light vehicle sales (quarterly - units in millions)   4.1    4.4    4.5    4.5    3.9    (0.3)   0.1 
GM market share   16.8%   17.8%   17.6%   18.1%   17.4%          
Chrysler market share   13.6%   13.4%   12.7%   12.7%   12.8%          
                                    
U.S. Consumer Penetration                                   
GM   9.3%   13.0%   16.3%   16.4%   20.7%          
Chrysler   12.5%   15.1%   13.9%   13.7%   11.3%          
                                    
U.S. Commercial Outstandings EOP ($ in billions)                                   
Floorplan outstandings, net  $29.2   $29.9   $27.5   $28.3   $28.3   $(0.7)  $0.9 
Other dealer loans   5.1    5.0    4.8    4.7    4.5    0.1    0.6 
Total Commercial outstandings  $34.3   $34.9   $32.3   $33.0   $32.8   $(0.6)  $1.6 
                                    
U.S. Floorplan Penetration (4)                                   
GM penetration   62.8%   62.8%   62.5%   63.2%   63.2%          
Chrysler penetration   43.8%   44.3%   43.1%   44.3%   44.5%          
                                    
U.S. Off-Lease Remarketing                                   
Manheim used vehicle index (3 month average)   122.5    125.4    124.4    124.0    125.0    (2.9)   (2.5)
Off-lease vehicles terminated - On-balance sheet (# in units)   78,820    69,710    65,363    64,123    65,060    9,110    13,760 
Average gain per vehicle  $700   $979   $1,611   $1,686   $1,067   $(278)  $(367)
Total gains ($ in millions)  $55   $68   $105   $108   $69   $(13)  $(14)

 

 

(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) Unscored are primarily Commercial Services Group ("CSG")

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

 

1Q 2016 Preliminary Results10 

 

 

 

ALLY FINANCIAL INC.

INSURANCE - CONDENSED FINANCIAL STATEMENTS AND KEY STATISTICS

  

 

($ in millions)

 

   QUARTERLY TRENDS   CHANGE VS. 
   1Q 16   4Q 15   3Q 15   2Q 15   1Q 15   4Q 15   1Q 15 
Income Statement (GAAP View)                                   
Net financing revenue                                   
Interest and dividends on investment securities  $24   $25   $26   $25   $23   $(1)  $1 
Interest bearing cash   2    2    2    2    2    -    - 
Total financing revenue and other interest revenue   26    27    28    27    25    (1)   1 
Interest expense   12    12    12    13    13    -    (1)
Net financing revenue   14    15    16    14    12    (1)   2 
Other revenue                                   
Insurance premiums and service revenue earned   230    234    236    237    233    (4)   (3)
Other gain/(loss) on investments, net   22    28    (5)   29    33    (6)   (11)
Other income, net of losses   2    2    2    2    2    -    - 
Total other revenue   254    264    233    268    268    (10)   (14)
Total net revenue   268    279    249    282    280    (11)   (12)
Noninterest expense                                   
Compensation and benefits expense   18    15    18    16    19    3    (1)
Insurance losses and loss adjustment expenses   73    54    61    122    56    19    17 
Other operating expenses   127    132    130    129    127    (5)   - 
Total noninterest expense   218    201    209    267    202    17    16 
Income (loss) from cont. ops before income tax expense  $50   $78   $40   $15   $78   $(28)  $(28)
                                    
Memo: Income Statement (Managerial View)                                   
Insurance premiums and other income                                   
Insurance premiums and service revenue earned  $230   $234   $236   $237   $233   $(4)  $(3)
Investment income   34    41    9    41    43    (7)   (9)
Other income   4    4    4    4    4    -    - 
Total insurance premiums and other income   268    279    249    282    280    (11)   (12)
Expense                                   
Insurance losses and loss adjustment expenses   73    54    61    122    56    19    17 
Acquisition and underwriting expenses                                   
Compensation and benefit expense   18    15    18    16    19    3    (1)
Insurance commission expense   94    94    95    95    93    -    1 
Other expense   33    38    35    34    34    (5)   (1)
Total acquisition and underwriting expense   145    147    148    145    146    (2)   (1)
Total expense   218    201    209    267    202    17    16 
Income (loss) from cont. ops before income tax expense  $50   $78   $40   $15   $78   $(28)  $(28)
                                    
Balance Sheet (Period-End)                                   
Cash, trading and investment securities  $5,141   $5,053   $4,991   $5,312   $5,327   $88   $(186)
Premiums receivable and other insurance assets   1,840    1,813    1,805    1,769    1,732    27    108 
Other assets   213    187    201    179    183    26    30 
Total assets  $7,194   $7,053   $6,997   $7,260   $7,242   $141   $(48)
                                    
Key Statistics (Continuing Operations)                                   
Total written premiums and revenue (1)   $222   $222   $254   $263   $239   $-   $(17)
                                    
Loss ratio   31.5%   22.5%   25.7%   51.2%   23.8%          
Underwriting expense ratio   62.5%   62.6%   62.0%   61.0%   62.1%          
Combined ratio   94.0%   85.1%   87.7%   112.2%   85.9%          

 

 

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

 

1Q 2016 Preliminary Results11 

 

  

ALLY FINANCIAL INC.

MORTGAGE FINANCE - CONDENSED FINANCIAL STATEMENTS

  

 

($ in millions)

 

   QUARTERLY TRENDS   CHANGE VS. 
   1Q 16   4Q 15   3Q 15   2Q 15   1Q 15   4Q 15   1Q 15 
Income Statement                                   
Net financing revenue                                   
Total financing revenue and other interest income  $57   $54   $51   $39   $33   $3   $24 
Interest expense   37    36    34    28    22    1    15 
Net financing revenue   20    18    17    11    11    2    9 
Gain on mortgage loans, net   -    -    -    -    -    -    - 
Other income, net of losses   -    -    -    -    -    -    - 
Total other revenue   -    -    -    -    -    -    - 
Total net revenue   20    18    17    11    11    2    9 
Provision for loan losses   3    (2)   3    4    2    5    1 
Noninterest expense                                   
Compensation and benefits expense   3    2    1    1    1    1    2 
Other operating expense   12    9    9    9    7    3    5 
Total noninterest expense   15    11    10    10    8    4    7 
Income (loss) from cont. ops before income tax expense  $2   $9   $4   $(3)  $1   $(7)  $1 
                                    
Balance Sheet (Period-End)                                   
Loans held-for-sale  $-   $-   $-   $-   $-   $-   $- 
Finance receivables and loans, net:                                   
Consumer loans   7,443    6,413    6,286    5,589    3,891    1,030    3,552 
Allowance for loan losses   (18)   (16)   (17)   (15)   (11)   (2)   (7)
Total finance receivables and loans, net   7,425    6,397    6,269    5,574    3,880    1,028    3,545 
Other assets   68    64    57    49    61    4    7 
Total assets  $7,493   $6,461   $6,326   $5,623   $3,941   $1,032   $3,552 

 

1Q 2016 Preliminary Results12 

 

 

ALLY FINANCIAL INC.

CORPORATE FINANCE - CONDENSED FINANCIAL STATEMENTS

  

 

($ in millions)

 

   QUARTERLY TRENDS   CHANGE VS. 
   1Q 16   4Q 15   3Q 15   2Q 15   1Q 15   4Q 15   1Q 15 
Income Statement                                   
Net financing revenue                                   
Total financing revenue and other interest income  $44   $39   $36   $35   $33   $5   $11 
Interest expense   16    14    14    13    13    2    3 
Net financing revenue   28    25    22    22    20    3    8 
Other income, net of losses   6    3    10    6    6    3    - 
Total other revenue   6    3    10    6    6    3    - 
Total net revenue   34    28    32    28    26    6    8 
Provision for loan losses   6    6    4    4    (5)   -    11 
Noninterest expense                                   
Compensation and benefits expense   10    8    8    8    8    2    2 
Other operating expense   7    5    6    6    6    2    1 
Total noninterest expense   17    13    14    14    14    4    3 
Income (loss) from cont. ops before income tax expense  $11   $9   $14   $10   $17   $2   $(6)
                                    
Balance Sheet (Period-End)                                   
Cash  $-   $-   $-   $-   $2   $-   $(2)
Loans held for sale   39    105    37    36    17    (66)   22 
Commercial loans (1)   2,795    2,568    2,228    2,088    1,945    227    850 
Allowance for loan losses   (56)   (50)   (44)   (38)   (34)   (6)   (22)
Total finance receivables and loans, net   2,739    2,518    2,184    2,050    1,911    221    828 
Other assets   61    54    48    46    46    7    15 
Total assets  $2,839   $2,677   $2,269   $2,132   $1,976   $162   $863 

 

 

(1) Includes intercompany loan activity

 

1Q 2016 Preliminary Results13 

 

  

ALLY FINANCIAL INC.

CORPORATE AND OTHER - CONDENSED FINANCIAL STATEMENTS

  

 

($ in millions)

 

   QUARTERLY TRENDS   CHANGE VS. 
   1Q 16   4Q 15   3Q 15   2Q 15   1Q 15   4Q 15   1Q 15 
Income Statement                                   
Net financing revenue                                   
Total financing revenue and other interest income  $92   $86   $92   $90   $93   $6   $(1)
Interest expense                                   
Core original issue discount amortization (1)   13    12    11    11    10    1    2 
Other interest expense   86    49    36    60    85    37    2 
Total interest expense   99    61    47    71    95    38    4 
Net financing revenue   (7)   25    45    19    (2)   (32)   (5)
Other revenue                                   
Loss on extinguishment of debt   (4)   (3)   -    (156)   (198)   (1)   194 
Other gain on investments, net   32    21    11    16    22    11    10 
Other income, net of losses (2)   11    6    15    22    93    5    (82)
Total other (loss) revenue   39    24    26    (118)   (83)   15    122 
Total net revenue   32    49    71    (99)   (85)   (17)   117 
Provision for loan losses   2    -    3    -    (8)   2    10 
Noninterest expense                                   
Compensation and benefits expense   95    93    87    88    101    2    (6)
Other operating expense (3)   (62)   (46)   (55)   (55)   (58)   (16)   (4)
Total noninterest expense   33    47    32    33    43    (14)   (10)
Income (loss) from cont. ops before income tax expense  $(3)  $2   $36   $(132)  $(120)  $(5)  $117 
                                    
Balance Sheet (Period-End)                                   
Cash, trading and investment securities  $18,127   $18,453   $18,962   $19,655   $20,152   $(326)  $(2,025)
Loans held-for-sale   -    -    -    46    42    -    (42)
Finance receivables and loans, net                                   
Consumer loans   3,319    3,426    3,591    3,692    3,830    (107)   (511)
Commercial loans (4)   45    49    38    43    42    (4)   3 
Allowance for loan losses   (98)   (101)   (105)   (106)   (110)   3    12 
Total finance receivables and loans, net   3,266    3,374    3,524    3,629    3,762    (108)   (496)
Other assets   5,297    4,927    3,995    4,326    5,060    370    237 
Total assets  $26,690   $26,754   $26,481   $27,656   $29,016   $(64)  $(2,326)

 

   2016   2017   2018   2019 and After             
OID Amortization Schedule (5)                                   
Remaining Core OID Amortization (as of 3/31/2016)  $43   $69   $85    Avg = $50/yr                

 

 

(1) Does not include accelerated OID expense of $2 million in 1Q16, $7 million in 2Q15 and $7 million in 1Q15 due to debt redemption 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 $202 million for 1Q16, $178 million for 4Q15, $189 million for 3Q15, $186 million for 2Q15 and $202 million for 1Q15. 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

 

1Q 2016 Preliminary Results14 

 

 

ALLY FINANCIAL INC.

CREDIT RELATED INFORMATION

  

 

($ in millions)

 

   QUARTERLY TRENDS   CHANGE VS. 
   1Q 16   4Q 15   3Q 15   2Q 15   1Q 15   4Q 15   1Q 15 
Asset Quality - Consolidated (1)                                   
Ending loan balance  $110,876   $111,600   $107,990   $105,172   $99,856   $(724)  $11,020 
30+ Accruing DPD  $1,496   $1,985   $1,754   $1,474   $1,157   $(489)  $339 
30+ Accruing DPD %   1.3%   1.8%   1.6%   1.4%   1.2%          
Non-performing loans (NPLs)  $698   $680   $637   $642   $593   $18   $106 
Net charge-offs (NCOs)  $179   $198   $161   $100   $150   $(19)  $29 
Net charge-off rate (2)   0.6%   0.7%   0.6%   0.4%   0.6%          
                                    
Provision for loan losses  $220   $240   $211   $140   $116   $(20)  $104 
Allowance for loan losses (ALLL)  $1,077   $1,054   $1,018   $974   $933   $23   $144 
                                    
ALLL as % of Loans (3)   1.0%   0.9%   0.9%   0.9%   0.9%          
ALLL as % of NPLs (3)   154.2%   155.0%   159.9%   151.6%   157.5%          
ALLL as % of NCOs (3)   150.3%   133.1%   158.2%   243.8%   155.0%          
                                    
U.S. Auto Delinquencies - HFI Retail Contract Amount (4)                                   
Delinquent contract $  $1,387   $1,886   $1,656   $1,389   $1,076   $(500)  $310 
% of retail contract $ outstanding   2.20%   2.93%   2.60%   2.29%   1.87%          
                                    
U.S. Auto Annualized Net Charge-Offs - HFI Retail Contract Amount                                   
Net charge-offs  $173   $194   $156   $96   $132   $(21)  $41 
% of avg. HFI assets   1.08%   1.21%   1.01%   0.65%   0.93%          
                                    
U.S. Auto Annualized Net Charge-Offs - HFI Commercial Contract Amount                                   
Net charge-offs  $0   $3   $0   $1   $(1)  $(3)  $1 
% of avg. HFI assets   0.00%   0.04%   0.00%   0.01%   -0.01%          

 

 

(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

 

1Q 2016 Preliminary Results15 

 

  

ALLY FINANCIAL INC.

CREDIT RELATED INFORMATION, CONTINUED

  

 

($ in millions)

CONTINUING OPERATIONS

 

   QUARTERLY TRENDS   CHANGE VS. 
   1Q 16   4Q 15   3Q 15   2Q 15   1Q 15   4Q 15   1Q 15 
Automotive Finance (1)                                   
Consumer                                   
Allowance for loan losses  $850   $834   $804   $767   $711   $16   $140 
Total consumer loans (2)  $63,013   $64,292   $63,610   $60,786   $57,447   $(1,279)  $5,567 
Coverage ratio (3)   1.3%   1.3%   1.3%   1.3%   1.2%          
                                    
Commercial                                   
Allowance for loan losses  $55   $53   $48   $48   $67   $2   $(12)
Total commercial loans  $34,325   $34,895   $32,322   $33,026   $32,753   $(570)  $1,572 
Coverage ratio   0.2%   0.2%   0.1%   0.1%   0.2%          
                                    
Mortgage (1)                                   
Consumer                                   
Mortgage Finance                                   
Allowance for loan losses  $18   $16   $17   $15   $11   $2   $7 
Total consumer loans  $7,443   $6,413   $6,286   $5,589   $3,891   $1,030   $3,551 
Coverage ratio   0.2%   0.2%   0.3%   0.3%   0.3%          
                                    
Mortgage - Legacy                                   
Allowance for loan losses  $97   $98   $102   $104   $108   $(2)  $(11)
Total consumer loans  $3,232   $3,360   $3,483   $3,622   $3,761   $(128)  $(529)
Coverage ratio   3.0%   2.9%   2.9%   2.9%   2.9%          
                                    
Total Mortgage                                   
Allowance for loan losses  $115   $114   $119   $119   $119   $1   $(4)
Total consumer loans  $10,675   $9,773   $9,769   $9,211   $7,652   $902   $3,022 
Coverage ratio   1.1%   1.2%   1.2%   1.3%   1.6%          
                                    
Corporate Finance and Other (1)(4)                                   
Allowance for loan losses  $57   $53   $47   $40   $36   $4   $21 
Total commercial loans  $2,863   $2,640   $2,289   $2,149   $2,004   $223   $859 
Coverage ratio   2.0%   2.0%   2.0%   1.9%   1.8%          

 

 

(1) (1) ALLL coverage ratios are based on the domestic allowance as a percentage of finance receivables and loans reported at their gross carrying value, which includes the principal amount outstanding, net of unearned income, unamortized deferred fees reduced by costs on originated loans, unamortized premiums and discounts on purchased loans, unamortized basis adjustments arising from the designation of finance receivables and loans as the hedged item in qualifying fair value hedge relationships, and cumulative principal charge-offs. Excludes loans held at fair value.

(2) Includes $87 million Corp. Treasury hedging activity related to domestic consumer auto outstandings in 1Q16, $66 million in 4Q15, $107 million in 3Q15, $69 million in 2Q15 and $68 million in 1Q15.

(3) Excludes $87 million Corp. Treasury hedging activity related to domestic consumer auto outstandings in 1Q16, $66 million in 4Q15, $107 million in 3Q15, $69 million in 2Q15 and $68 million in 1Q15.

(4) Includes $67 million CRA loans in 1Q16, $72MM in 4Q15, $61MM in 3Q15, $61MM in 2Q15 and $59MM in 1Q15

 

1Q 2016 Preliminary Results16 

 

  

ALLY FINANCIAL INC.

CAPITAL

  

 

($ in billions)

 

   QUARTERLY TRENDS   CHANGE VS. 
   Basel III Transition         
   1Q 16   4Q 15   3Q 15   2Q 15   1Q 15   4Q 15   1Q 15 
Capital (1)                                   
Risk-weighted assets  $133.6   $135.8   $133.8   $134.0   $130.1   $(2.2)  $3.5 
                                    
Common Equity Tier 1 (CET1) capital ratio   9.5%   9.2%   10.0%   9.8%   10.9%          
Tier 1 capital ratio   11.6%   11.1%   12.0%   11.7%   13.2%          
Total capital ratio   13.0%   12.5%   12.9%   12.6%   14.1%          
                                    
Tangible common equity / Tangible assets   8.4%   8.0%   8.8%   8.6%   9.6%          
Tangible common equity / Risk-weighted assets   9.8%   9.4%   10.3%   10.0%   11.3%          
                                    
Shareholders’ equity  $13.8   $13.4   $14.6   $14.3   $15.9   $0.4   $(2.1)
less: Preferred equity   (0.7)   (0.7)   (0.8)   (0.8)   (1.3)   -    0.6 
Disallowed DTA   (0.5)   (0.4)   (0.4)   (0.4)   (0.5)   (0.1)   - 
Certain AOCI items and other adjustments   -    0.2    -    0.1    -    (0.2)   - 
Common Equity Tier 1 capital (2)  $12.7   $12.5   $13.4   $13.2   $14.2   $0.2   $(1.5)
                                    
Common Equity Tier 1 capital  $12.7   $12.5   $13.4   $13.2   $14.2   $0.2   $(1.5)
add:   Preferred equity   0.7    0.7    0.7    0.7    1.1    -    (0.4)
          Trust preferred securities   2.5    2.5    2.5    2.5    2.5    -    - 
less:  Other adjustments   (0.4)   (0.6)   (0.6)   (0.7)   (0.7)   0.2    0.3 
Tier 1 capital  $15.5   $15.1   $16.1   $15.7   $17.1   $0.4   $(1.6)
                                    
Tier 1 capital  $15.5   $15.1   $16.1   $15.7   $17.1   $0.4   $(1.6)
add: Qualifying subordinated debt and redeemable preferred stock   0.9    0.9    0.3    0.3    0.4    -    0.5 
Allowance for loan and lease losses includible in Tier 2 capital and other adjustments   1.0    1.0    1.0    0.9    0.9    -    0.1 
Total capital  $17.4   $17.0   $17.3   $16.9   $18.4   $0.4   $(1.0)
                                    
Total shareholders' equity  $13.8   $13.4   $14.6   $14.3   $15.9   $0.4   $(2.1)
less: Preferred equity   (0.7)   (0.7)   (0.8)   (0.8)   (1.3)   -    0.6 
Goodwill and intangible assets   -    -    -    -    -    -    - 
Tangible common equity (3)  $13.1   $12.7   $13.8   $13.5   $14.7   $0.4   $(1.6)
                                    
Total assets  $156.5   $158.6   $155.9   $156.3   $153.3   $(2.1)  $3.2 
less:  Goodwill and intangible assets   -    -    -    -    -    -    - 
Tangible assets  $156.5   $158.6   $155.9   $156.3   $153.3   $(2.1)  $3.2 

 

 

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

(2) Common Equity Tier 1 is a non-GAAP financial measures. We define 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 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 Common Equity Tier 1 ratio is 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.

 

1Q 2016 Preliminary Results17 

 

  

ALLY FINANCIAL INC.

LIQUIDITY

  

 

($ in billions)

 

   3/31/2016   12/31/2015   3/31/2015 
   Parent (1)   Ally Bank   Parent (1)   Ally Bank   Parent (1)   Ally Bank 
Available Liquidity                              
Cash and cash equivalents (2)  $2.7   $2.1   $2.5   $3.8   $3.0   $4.3 
Highly liquid securities (3)   1.8    6.8    2.9    5.5    2.1    5.7 
Current committed unused capacity   0.5    1.8    0.3    0.0    2.9    1.5 
Subtotal  $5.0   $10.7   $5.6   $9.3   $8.0   $11.5 
Ally Bank intercompany loan (4)   0.8    (0.8)   0.6    (0.6)   0.7    (0.7)
Total Current Available Liquidity  $5.7   $9.9   $6.2   $8.7   $8.7   $10.8 

 

   2016    2017    2018    2019    2020    2021 and
After		 
Unsecured Long-Term Debt Maturity Profile                              
Consolidated remaining maturities (5)  $1.4   $4.4   $3.7   $1.6   $2.2   $8.2 

 

 

(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

 

1Q 2016 Preliminary Results18 

 

  

ALLY FINANCIAL INC.

NET INTEREST MARGIN AND DEPOSITS

  

 

($ in millions)

 

   QUARTERLY TRENDS   CHANGE VS. 
   1Q 16   4Q 15   3Q 15   2Q 15   1Q 15   4Q 15   1Q 15 
Average Balance Details                                   
Retail Auto Loan  $64,566   $64,231   $62,115   $60,436   $58,373   $335   $6,193 
Auto Lease (net of dep)   15,638    16,824    17,519    18,520    19,405    (1,186)   (3,767)
Commercial Auto   34,026    34,077    31,726    32,547    32,429    (51)   1,597 
Corporate Finance   2,781    2,506    2,309    2,114    1,995    275    786 
Mortgage   10,152    9,809    9,564    8,363    8,006    343    2,146 
Cash, Securities and Other   19,758    18,822    21,413    21,087    20,300    936    (542)
Total Earning Assets  $146,921   $146,269   $144,646   $143,067   $140,508   $652   $6,413 
                                    
Interest Revenue  $1,595   $1,582   $1,567   $1,517   $1,457   $13   $138 
                                    
LT Unsecured Debt  $22,452   $21,716   $20,884   $22,564   $22,838   $736   $(386)
Secured Debt   37,587    40,134    42,150    42,186    40,562    (2,547)   (2,975)
Deposits (2)   68,240    64,985    62,882    61,305    59,445    3,255    8,795 
Other Borrowings (3)   11,709    11,695    11,890    9,012    9,216    14    2,493 
Total Funding Sources (1)  $139,988   $138,530   $137,806   $135,067   $132,061   $1,458   $7,927 
                                    
Interest Expense  $635   $593   $593   $597   $602   $42   $33 
                                    
Net Financing Revenue (4)  $960   $989   $974   $920   $855   $(29)  $105 
                                    
                                    
Net Interest Margin (yield details)                                   
Retail Auto Loan   5.3%   5.3%   5.2%   5.3%   5.3%          
Auto Lease (net of dep)   6.7%   6.5%   6.8%   6.4%   5.7%          
Commercial Auto   3.0%   2.8%   2.9%   2.9%   3.0%          
Corporate Finance   6.5%   6.3%   6.2%   6.6%   6.9%          
Mortgage   3.4%   3.3%   3.4%   3.4%   3.5%          
Cash, Securities and Other   2.1%   2.0%   1.8%   1.7%   1.7%          
Total Earning Assets   4.4%   4.3%   4.3%   4.3%   4.2%          
                                    
LT Unsecured Debt   4.9%   4.6%   5.0%   5.0%   5.2%          
Secured Debt   1.5%   1.3%   1.2%   1.2%   1.2%          
Deposits   1.1%   1.2%   1.1%   1.2%   1.2%          
Other Borrowings (3)   1.1%   1.0%   0.8%   0.7%   0.7%          
Total Funding Sources (1)   1.8%   1.7%   1.7%   1.8%   1.9%          
                                    
NIM (1)   2.6%   2.7%   2.7%   2.6%   2.5%          
                                    
Key Deposit Statistics                                   
Average retail CD maturity (months)   31.6    31.8    32.0    32.1    31.6    (0.2)   (0.0)
Average retail deposit rate   1.11%   1.12%   1.14%   1.15%   1.17%          
                                    
Ally Financial Deposits Levels                                   
Ally Bank retail  $58,977   $55,437   $53,501   $51,750   $50,633   $3,540   $8,344 
Ally Bank brokered   10,979    10,723    10,201    9,861    9,853    256    1,126 
Other   309    318    318    319    371    (9)   (62)
Total deposits  $70,265   $66,478   $64,020   $61,930   $60,857   $3,787   $9,408 
                                    
Ally Bank Deposit Mix                                   
Retail CD   30.1%   31.8%   34.0%   36.3%   37.9%          
MMA/OSA/Checking   54.2%   52.0%   50.0%   47.7%   45.8%          
Brokered   15.7%   16.2%   16.0%   16.0%   16.3%          

 

 

(1) Excludes OID

(2) Includes brokered deposits. Includes average noninterest-bearing deposits of $92 million in 1Q16, $95 million in 4Q15 and $73 million in 1Q15

(3) Includes Demand Notes, FHLB and Repurchase Agreements

(4) Excludes dividend income from equity investments

 

1Q 2016 Preliminary Results19 

 

  

ALLY FINANCIAL INC.

ALLY BANK CONSUMER MORTGAGE HFI PORTFOLIOS (PERIOD-END)

  

 

($ in billions)

 

   HISTORICAL QUARTERLY TRENDS 
   1Q 16   4Q 15   3Q 15   2Q 15   1Q 15 
Mortgage Finance HFI Portfolio                         
Loan Value                         
Gross carry value  $7.4   $6.4   $6.3   $5.6   $3.9 
Net carry value  $7.4   $6.4   $6.3   $5.6   $3.9 
                          
Estimated Pool Characteristics                         
% Second lien   0.0%   0.0%   0.0%   0.0%   0.0%
% Interest only   0.5%   0.6%   0.6%   0.8%   1.2%
% 30+ Day delinquent   1.0%   0.9%   1.0%   1.0%   1.4%
% Low/No documentation   0.0%   0.0%   0.0%   0.0%   0.0%
% Non-primary residence   3.5%   3.4%   3.4%   3.2%   2.3%
Refreshed FICO   770    769    768    767    768 
Wtd. Avg. LTV/CLTV (1)   60.8%   60.4%   61.4%   62.0%   59.6%
Higher risk geographies (2)   46.3%   45.6%   45.6%   45.5%   44.6%
                          
Corporate Other Legacy Mortgage HFI Portfolio                         
Loan Value                         
Gross carry value  $3.2   $3.4   $3.5   $3.6   $3.8 
Net carry value  $3.1   $3.3   $3.4   $3.5   $3.7 
                          
Estimated Pool Characteristics                         
% Second lien   18.6%   18.9%   19.2%   19.6%   19.9%
% Interest only   14.0%   16.9%   19.4%   21.9%   21.2%
% 30+ Day delinquent   4.1%   4.4%   4.1%   4.2%   4.3%
% Low/No documentation   22.7%   22.6%   22.5%   22.4%   22.6%
% Non-primary residence   7.4%   7.4%   7.4%   7.4%   5.4%
Refreshed FICO   728    728    728    728    728 
Wtd. Avg. LTV/CLTV (1)   77.6%   78.1%   77.4%   78.2%   79.7%
Higher risk geographies (2)   38.2%   38.2%   38.2%   38.4%   38.4%

 

 

(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

 

1Q 2016 Preliminary Results20 

 

  

ALLY FINANCIAL INC.

DISCONTINUED OPERATIONS

  

 

($ in millions)

 

   QUARTERLY TRENDS   CHANGE VS. 
   1Q 16   4Q 15   3Q 15   2Q 15   1Q 15   4Q 15   1Q 15 
Impact of Discontinued Operations (1)                                   
Auto Finance  $(1)  $(5)  $(4)  $(4)  $454   $3   $(455)
Insurance   -    -    -    3    -    -    - 
Mortgage Finance   -    -    -    -    -    -    - 
Corporate Finance   (0)   -    1    25    4    (0)   (4)
Corporate and Other   6    2    0    (11)   2    4    4 
Consolidated pretax income  $4   $(3)  $(2)  $14   $460   $7   $(455)
Tax expense (benefit)   1    10    4    (0)   63    (9)   (62)
Consolidated net income  $3   $(13)  $(5)  $13   $397   $16   $(394)
                                    
Assets of discontinued operations held-for-sale  $-   $-   $-   $-   $-   $-   $- 

 

 

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

 

1Q 2016 Preliminary Results21 

 

  

ALLY FINANCIAL INC.  

PER SHARE-RELATED INFORMATION

  

 

($ in millions, shares in thousands)

 

   QUARTERLY TRENDS   CHANGE VS. 
   1Q 16   4Q 15   3Q 15   2Q 15   1Q 15   4Q 15   1Q 15 
Earnings Per Share Data                                   
Net income (loss)  $250   $263   $268   $182   $576   $(13)  $(326)
less:  Preferred stock dividends   15    1,216    38    1,251    67    (1,201)   (52)
Net income (loss) available to common shareholders  $235   $(953)  $230   $(1,069)  $509   $1,188   $(274)
                                    
Weighted-average shares outstanding - basic (1)   484,233    483,300    483,073    482,847    482,248    933    1,985 
                                    
Weighted-average shares outstanding - diluted (1)(2)   484,654    484,845    484,399    483,687    482,782    (191)   1,873 
                                    
Issued shares outstanding (period-end)   483,475    481,980    481,750    481,750    481,503    1,495    1,972 
                                    
Net income (loss) per share - basic (1)  $0.49   $(1.97)  $0.48   $(2.22)  $1.06   $2.46   $(0.57)
                                    
Net income (loss) per share - diluted (1)(2)  $0.49   $(1.97)  $0.47   $(2.22)  $1.06   $2.46   $(0.57)
                                    
Adjusted EPS Calculation (3)                                   
Pre-tax income (loss) from continuing operations  $397   $431   $417   $263   $282   $(34)  $115 
add:  Core original issue discount expense   15    12    11    18    17    2    (3)
         Repositioning items   7    3    2    154    190    4    (183)
Core pre-tax income (ex. repositioning)   419    446    431    435    490    (28)   (71)
less:  Adjusted income tax expense   151    160    149    152    173    (9)   (22)
Adjusted core net income for EPS   268    286    282    282    316    (18)   (49)
less:  Preferred dividends (Series A & G, excluding discount)   15    37    38    58    67    (22)   (52)
Adjusted operating net income available to common for EPS  $253   $249   $244   $224   $249   $4   $3 
Weighted-average shares outstanding - diluted (1)(2)   484,654    484,845    484,399    483,687    482,782    (191)   1,873 
Adjusted Net income (loss) per share - diluted (1)(2)  $0.52   $0.52   $0.51   $0.46   $0.52   $0.00   $0.00 
                                    
Adjusted Tangible Book Value(3) ($ billions)                                   
GAAP shareholder's equity  $13.8   $13.4   $14.6   $14.3   $15.9   $0.4   $(2.1)
Preferred equity and goodwill   (0.7)   (0.7)   (0.8)   (0.8)   (1.3)   (0.0)   0.6 
Tangible common equity   13.1    12.7    13.8    13.5    14.7    0.4    (1.6)
Tax-effected bond OID (4)   (0.8)   (0.9)   (0.9)   (0.9)   (0.9)   0.0    0.0 
Series G discount   -    -    (1.2)   (1.2)   (2.3)   -    2.3 
Adjusted tangible book value  $12.3   $11.9   $11.7   $11.4   $11.4   $0.4   $0.8 
                                    
Adjusted Tangible Book Value Per Share(3)                                   
GAAP shareholder's equity  $28.6   $27.9   $30.3   $29.7   $33.1   $0.7   $(4.5)
Preferred equity and goodwill   (1.5)   (1.5)   (1.7)   (1.7)   (2.7)   0.0    1.2 
Tangible common equity   27.1    26.4    28.6    27.9    30.4    0.7    (3.3)
Tax-effected bond OID (4)   (1.7)   (1.8)   (1.8)   (1.8)   (1.8)   0.0    0.1 
Series G discount   -    -    (2.4)   (2.4)   (4.9)   -    4.9 
Adjusted tangible book value per share  $25.4   $24.6   $24.3   $23.7   $23.7   $0.8   $1.6 

 

 

(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 35% tax rate in 2016 and a 34% tax rate in 2015 and prior

 

1Q 2016 Preliminary Results22 

 

 

ALLY FINANCIAL INC.

SUPPLEMENTAL FINANCIAL DATA

  

 

($ in millions)

 

   QUARTERLY TRENDS   CHANGE VS. 
   1Q 16   4Q 15   3Q 15   2Q 15   1Q 15   4Q 15   1Q 15 
Core ROTCE Calculation                                   
Pre-tax income (loss) from continuing operations  $397   $431   $417   $263   $282   $(34)  $115 
add:  Core original issue discount expense   15    12    11    18    17    2    (3)
         Repositioning items   7    3    2    154    190    4    (183)
Core pre-tax income (ex. repositioning)  $419   $446   $431   $435   $490   $(28)  $(71)
less:  Adjusted income tax expense   151    152    146    148    166    (1)   (15)
Core net income   268    294    284    287    323    (27)   (56)
less:  Preferred dividends (Series A & G, excluding discount)   15    37    38    58    67    (22)   (52)
Operating net income available to common shareholders (1)  $253   $257   $246   $229   $256   $(5)  $(4)
                                    
Tangible common equity (2)  $12,908   $13,237   $13,606   $14,053   $14,384   $(329)  $(1,477)
less: Unamortized core original issue discount   1,298    1,310    1,322    1,333    1,345    (12)   (47)
         Net deferred tax asset   1,245    1,404    1,540    1,632    1,720    (159)   (476)
Normalized common equity (1)(3)  $10,365   $10,523   $10,745   $11,087   $11,319   $(158)  $(954)
                                    
Core ROTCE (1)   9.8%   9.8%   9.2%   8.3%   9.1%          
                                    
Adjusted Efficiency Ratio Calculation                                   
Total noninterest expense  $710   $668   $674   $724   $695   $42   $15 
less: Rep and warrant expense   (1)   (2)   (3)   (9)   -    1    (1)
Insurance expense   218    201    209    267    202    17    16 
Repositioning items   4    1    2    4    -    3    4 
Numerator  $488   $468   $465   $462   $493   $20   $(5)
                                    
Total net revenue  $1,327   $1,339   $1,302   $1,127   $1,093   $(12)  $234 
add:  Original issue discount   15    12    11    18    17    2    (3)
         Repositioning   3    2    -    150    190    1    (188)
less:  Insurance revenue   268    279    249    282    280    (11)   (12)
Denominator  $1,076   $1,074   $1,064   $1,013   $1,021   $2   $55 
                                    
Adjusted Efficiency Ratio (1)   45%   44%   44%   46%   48%          
                                    
Noninterest Expense                                   
Compensation and benefits  $252   $237   $235   $236   $255   $15   $(3)
Technology and communications   66    69    65    64    69    (4)   (3)
Professional services   21    25    24    25    20    (4)   1 
Servicing expenses (4)   56    56    51    50    48    1    9 
Advertising and marketing   27    27    26    23    31    0    (4)
Other controllable expenses (5)   51    50    50    50    47    1    4 
Controllable Expense  $473   $465   $449   $448   $469   $8   $3 
Other Noninterest Expense   233    202    222    272    226    31    7 
Total Noninterest Expense (ex. repositioning)  $706   $667   $672   $720   $695   $39   $11 
Repositioning expenses   4    1    2    4    -    3    4 
Total Noninterest Expense  $710   $668   $674   $724   $695   $42   $15 

 

 

(1) Represents a non-GAAP financial measure

(2) See page 17 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

 

1Q 2016 Preliminary Results23