8-K

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

April 27, 2017

(Date of report; date of

earliest event reported)

Commission file number: 1-3754

ALLY FINANCIAL INC.

(Exact name of registrant as specified in its charter)

Delaware	38-0572512
(State or other jurisdiction of incorporation or organization)	(I.R.S. Employer Identification No.)

Ally Detroit Center

500 Woodward Ave.

Floor 10, Detroit, Michigan

48226

(Address of principal executive offices)

(Zip Code)

(866) 710-4623

(Registrant’s telephone number, including area code)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):

☐ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

☐ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

☐ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

☐ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Item 2.02 Results of Operation and Financial Condition.

On April 27, 2017 Ally Financial Inc. issued a press release announcing preliminary operating results for the first quarter ended March 31, 2017. The press release is attached hereto and incorporated by reference as Exhibit 99.1. Charts furnished to securities analysts are attached hereto and incorporated by reference as Exhibit 99.2. In addition, supplemental financial data furnished to securities analysts is attached hereto and incorporated by reference as Exhibit 99.3.

Item 9.01 Financial Statements and Exhibits.

Exhibit No.	Description
99.1	Press Release, Dated April 27, 2017
99.2	Charts Furnished to Securities Analysts
99.3	Supplemental Financial Data Furnished to Securities Analysts

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

	ALLY FINANCIAL INC.
	(Registrant)
Dated:        April 27, 2017	/s/ David J. DeBrunner
	David J. DeBrunner
	Vice President, Chief Accounting Officer and Controller

EXHIBIT INDEX

Exhibit No.	Description
99.1	Press Release, Dated April 27, 2017
99.2	Charts Furnished to Securities Analysts
99.3	Supplemental Financial Data Furnished to Securities Analysts

EX-99.1

Exhibit 99.1

News release: IMMEDIATE RELEASE

Ally Financial Reports First Quarter 2017 Financial Results

Net Income of $214 million, $0.46 EPS, $0.48 Adjusted EPS¹

First Quarter Results

PRE-TAX INCOME	RETURN ON EQUITY	COMMON SHAREHOLDER EQUITY
$326 million	6.4%	$28.92/share

CORE PRE-TAX INCOME1	CORE ROTCE1	ADJUSTED TANGIBLE BOOK VALUE1
$342 million	8.2%	$26.55/share

HIGHLIGHTS	• Net financing revenue of $979 million, incl. $16 million in Original Issue Discount (OID) expense • EPS: $0.46; Adjusted EPS1: $0.48 • Net interest margin (NIM) of 2.60%, up 1 bp YoY; Ex. OID, NIM of 2.64%, up 1 bp YoY • Consolidated annualized net charge-offs of 86 bps • Efficiency Ratio: 57%; Adj. Efficiency Ratio1: 48% • Executed $169 million of share repurchases and paid $0.08 per share quarterly dividend	Ally Chief Executive Officer Jeffrey Brown commented on the financial results: “In the first quarter, Ally continued to execute on its strategic objectives while navigating shifting auto industry dynamics and investing for the future. We posted solid profitability in the first quarter, but it fell short of our expectations of delivering strong year-over-year earnings growth given softer used vehicle values and higher insurance weather losses.” “We continue to approach the auto market in a thoughtful and cautious manner, and remain constructive with respect to market opportunities we see to further improve portfolio risk-adjusted returns. We’re mindful of an environment where new vehicle sales are plateauing, used vehicle prices are declining and credit losses are increasing. These dynamics have been incorporated into our planning for some time, as well as our plan to deliver strong earnings growth given significant positive offsets such as increasing asset yields, creating a more efficient funding base, and diversifying and expanding our consumer and commercial product mix.” “The Ally banking and deposit franchise continues to excel as we posted record first quarter total deposit growth of $5.5 billion, including $3.4 billion of retail. This consistent deposit growth adds customers to the Ally family, reduces the need to refinance high-cost unsecured maturities and remains an important driver of EPS growth.” “We remain centered around our plan to deliver attractive long-term shareholder returns. Key ingredients include a 15% Adjusted EPS compound annual growth rate, 12% Core ROTCE, significant distributions to shareholders and demonstrating the value of the Ally digital banking brand through diversification and smart asset growth.”
DEPOSITS	• Retail deposits of $70.0 billion, up 19% YoY • Record YoY total deposit growth of $14.2 billion • Retail deposit customer base up 56,000+ QoQ
AUTO FINANCE	• Pre-tax income of $288 million • Consumer auto originations of $8.9 billion, 85% funded through Ally Bank • Introduced Clearlane, an online auto finance marketplace
INSURANCE	• Pre-tax income of $40 million • Written premiums increased 8% YoY to $240 million • Higher weather losses from hailstorms in late March
CORPORATE FINANCE	• Pre-tax income of $25 million, up $14 million YoY • Loans increased by 23% YoY to $3.4 billion • Provision flat YoY at $6 million
MORTGAGE FINANCE	• Pre-tax income of $9 million, up $7 million YoY • Total assets increased $0.9 billion YoY, up 12%

Notable Items

• Higher estimated retail auto originated yield¹ of approximately 6.1% in 1Q 17 from 5.3% in 1Q 15, up 86 bps over two years   • Reduced residual risk with operating lease portfolio $4.5 billion lower YoY with lease yields (net of depreciation) of 5.71%, 95 bps lower YoY   • Increased provision expense to $271 million in the first quarter driven by a full credit spectrum auto loan portfolio mix • Continued to execute on capital plan in 1Q 17   ^○   Repurchased $169 million in common stock   ^○   Paid $0.08 per share common dividend in 1Q, received board approval for $0.08 per share second quarter dividend   • Higher weather losses in the insurance business in late March, up $16 million YoY and $30 million higher than the prior 7-year average, equal to an EPS impact of $0.02 and $0.04, respectively

¹  The following are non-GAAP financial measures which Ally believes are important to the reader of the Consolidated Financial Statements, but which are supplemental to and not a substitute for U.S. GAAP measures: Adjusted Earnings per Share (Adjusted EPS), Core Pre-Tax Income, Core Net Income Available to Common, Core Return on Tangible Common Equity (Core ROTCE), Estimated Retail Auto Originated Yield, Adjusted Efficiency Ratio, fully phased-in Common Equity Tier 1 (CET1) capital and Adjusted Tangible Book Value per Share (Adjusted TBVPS). These measures are used by management and we believe are useful to investors in assessing the company’s operating performance and capital measures. Refer to the Definitions of Non-GAAP Financial Measures and Other Key Terms, and Reconciliation to GAAP later in this document.

Discussion of First Quarter Results

Net income of $214 million, compared to net income of $250 million for the first quarter of 2016, as increased net financing revenue from the loan portfolio was offset by declines in net lease revenue and increases in provision expense for loan loss and noninterest expense. Net financing revenue, including $16 million of OID, improved to $979 million, up $28 million from a year ago, due to the expansion of retail loan and commercial margins as well as higher volumes. Noninterest expense up $68 million from a year ago, largely driven by higher weather losses in the insurance business and expenses related to the addition and integration of Ally Invest and Clearlane, and the growth of Ally’s direct-to-consumer mortgage offering. NIM of 2.60%, including OID of 4 bps, up 1 bp year-over-year and up 4 bps quarter-over-quarter. Excluding OID, NIM was 2.64%, improving 1 bp year-over-year, as a result of higher asset yields. Other revenue increased $20 million year-over-year driven by asset sales and contributions from the corporate finance and Ally Invest businesses. Provision expense increased $51 million year-over-year largely due to the continued shift to originate a more profitable full credit spectrum portfolio mix. Auto originations for the quarter totaled $8.9 billion, roughly flat from $9.0 billion a year ago. Annualized net charge-offs increased year-over-year to 86 bps, driven by a 46 bps increase in retail auto net charge-offs.

First Quarter Financial Results

							Increase/(Decrease) vs.
$ millions except per share data	1Q 17		4Q 16		1Q 16		4Q 16		1Q 16
Net Financing Revenue (excluding OID)1	$	995	$	991	$	964	$	4	$	32
OID Expense		(16)		(15)		(13)		(1)		(4)
Net Financing Revenue (as reported)		979		976		951		3		28
Total Other Revenue		396		392		376		4		20
Provision for Loan Losses		271		267		220		4		51
Total Noninterest Expense		778		721		710		57		68
Pre-tax Income from continuing operations	$	326	$	380	$	397	$	(54)	$	(71)
Income tax expense		113		134		150		(21)		(37)
Income from discontinued operations, net of tax		1		2		3		(1)		(2)
Net Income	$	214	$	248	$	250	$	(34)	$	(36)
Preferred Dividends		-		-		15		-		(15)
Net Income available to common	$	214	$	248	$	235	$	(34)	$	(21)
	1Q 17		4Q 16		1Q 16		4Q 16		1Q 16
GAAP EPS (diluted)	$	0.46	$	0.52	$	0.49	$	(0.06)	$	(0.03)
Discontinued Operations, net of tax		(0.00)		(0.00)		(0.01)		0.00		0.00
OID Expense		0.02		0.02		0.02		0.00		0.00
Repositioning / other2		-		-		0.02		-		(0.02)
Adjusted EPS3	$	0.48	$	0.54	$	0.52	($	0.06)	($	0.04)
Return on Equity		6.4%		7.4%		7.3%
Core ROTCE3		8.2%		9.4%		9.8%
Effective Tax Rate		34.7%		35.3%		37.7%

(1) Represents a non-GAAP financial measure. Excludes OID. Refer to the Definitions of Non-GAAP Financial Measures and Other Key Terms later in this press release.

(2) Repositioning items are primarily related to the extinguishment of high-cost legacy debt and strategic activities. “Other” primarily includes certain discrete tax items. Refer to the Definitions of Non-GAAP Financial Measures and Other Key Terms later in this press release.

(3) Represents a non-GAAP financial measure. Refer to the Definitions of Non-GAAP Financial Measures and Other Key Terms, and Reconciliation to GAAP later in this press release.

2

Product Expansion

Auto Finance Offerings & Digital Capabilities

Ally recently introduced Clearlane, an online auto lender exchange, expanding Ally’s direct-to-consumer capabilities and providing an end-to-end digital platform for consumers seeking financing and dealers looking to drive online sales. Clearlane enhances and builds upon the platform acquired with the purchase of BlueYield in 2016.

Online Brokerage and Digital Wealth Management

Ally’s online brokerage and digital wealth management franchise, which is being rebranded from TradeKing to Ally Invest, is on track for a second quarter public launch, delivering customers a unique and integrated banking and wealth management platform, with both self-directed and managed investment products.

Mortgage Product

Ally Home Loans, Ally’s direct-to-consumer mortgage business, broadened its product suite in the first quarter with the addition of the HomeReady mortgage loan, a Fannie Mae product designed to serve creditworthy, low- to moderate-income borrowers.

Ally CashBack Credit Card^A

The Ally CashBack Credit Card program, a co-brand consumer product, was introduced in June 2016. Performance continues to be in line with expectations and the Ally CashBack Credit Card remains a key component of Ally’s digital consumer product suite.

Corporate Finance

Ally hired an experienced team in the healthcare real estate space in the first quarter as the corporate finance business continues to make strategic investments in sectors with strong competitive dynamics and attractive risk-adjusted return opportunities.

Results by Segment

							Increase/(Decrease) vs.
$ millions	1Q 17		4Q 16		1Q 16		4Q 16		1Q 16
Automotive Finance	$	288	$	298	$	337	$	(10)	$	(49)
Insurance		40		69		50		(29)		(10)
Dealer Financial Services	$	328	$	367	$	387	$	(39)	$	(59)
Mortgage Finance		9		15		2		(6)		7
Corporate Finance		25		31		11		(6)		14
Corporate and Other		(36)		(33)		(3)		(3)		(33)
Pre-Tax Income from continuing operations	$	326	$	380	$	397	$	(54)	$	(71)
OID Amortization Expense1		16		15		15		1		2
Repositioning Items1,2		-		-		7		-		(7)
Core Pre-tax Income3	$	342	$	395	$	419	$	(53)	$	(76)

(1) OID amortization expense and repositioning items for all periods shown are applied to the pre-tax income of the Corporate and Other segment.

(2) Repositioning items are primarily related to the extinguishment of high-cost legacy debt and strategic activities. Refer to the Definitions of Non-GAAP Financial Measures and Other Key Terms later in this press release.

(3) Core pre-tax income is a non-GAAP financial measure that adjusts pre-tax income from continuing operations for repositioning items and OID amortization expense. Management believes core pre-tax income can help the reader better understand the operating performance of the core businesses and their ability to generate earnings. Refer to the Definitions of Non-GAAP Financial Measures and Other Key Terms later in this press release.

Discussion of Segment Results

Auto Finance Pre-tax income of $288 million was $49 million lower year-over-year. Results reflect a modest decline in net financing revenue driven by lower lease gains, higher provision expense and higher noninterest expense as the company continues to invest and diversify its auto business while executing on its strategy of serving as a full credit spectrum lender to Ally’s more than 18,000 dealer relationships nationwide. Net financing revenue was approximately $4 million lower year-over-year as declines in net lease revenue were largely offset by increases in retail and commercial revenue. The net lease yield declined to 5.71%, 4 bps lower quarter-over-quarter and 95 bps lower year-over-year. Provision expense was $7 million lower quarter-over-quarter due to seasonality and up $59 million year-over-year as Ally continues to grow and optimize its auto business by focusing on risk-adjusted returns. Estimated retail auto originated yieldsB increased 86 bps over two years from 5.3% in 1Q 15 to 6.1% in 1Q 17. Consumer originations of $8.9 billion with 85% funded through Ally Bank, up from 75% in the first quarter of 2016. Used volume at $4.2 billion or 48% of total originations. Originations also included $3.7 billion of new retail and $0.9 billion of leases. Auto earning assets up $2.8 billion year-over-year to $115.0 billion as growth in the commercial and retail auto portfolios outpaced declines in operating lease assets. Commercial earning assets up $4.6 billion year-over-year to $38.9 billion driven by higher dealer inventories and vehicle mix shift.

^A The Ally CashBack Credit Card is issued by TD Bank N.A.

^B Estimated retail auto originated yield is a non-GAAP financial measure. Refer to the Definitions of Non-GAAP Financial Measures and Other Key Terms later in this press release.

3

Insurance

Pre-tax income of $40 million in the quarter, down $10 million from a year ago, with higher insurance premium income from price increases and higher floorplan balances more than offset by weather losses in late March that were $16 million higher year-over-year.

Total investment income was $35 million, up $1 million from the prior year period, and up $3 million quarter-over-quarter.

Written premiums were up $18 million year-over-year at $240 million, with rate increases offsetting the continued shift toward dealer reinsurance.

Mortgage Finance

Pre-tax income of $9 million in the quarter, compared to $2 million in the prior year period. Net financing revenue was up $14 million year-over-year to $34 million, with total assets up $0.9 billion in the past year driven by bulk mortgage purchases.

Non-interest expense increased $9 million year-over-year as the result of asset growth and the expansion of Ally’s direct-to-consumer mortgage product which launched in fourth quarter 2016.

Provision expense declined by $2 million year-over-year to $1 million, reflecting favorable credit performance, while provision expense was $9 million higher quarter-over-quarter given the reserve release in fourth quarter 2016.

Corporate Finance

Pre-tax income of $25 million in the quarter, compared to $11 million in the prior year period.

Net financing revenue up $6 million year-over-year to $34 million driven by continued asset growth, with total assets of $3.4 billion, up from $2.8 billion in the prior year.

Total other revenue was up $12 million year-over-year driven by equity investment gains and continued strong loan syndication and fee income.

Liquidity, Capital & Deposits

Capital Paid a third consecutive $0.08 per share quarterly common dividend and executed $169 million of share repurchases, including shares withheld to cover income taxes on employee share-based incentive compensation. Ally’s board of directors approved a $0.08 per share dividend for the second quarter. Total equity of $13.4 billion at quarter-end, compared to $13.3 billion at the end of the prior quarter. Preliminary fully phased-in Basel III Common Equity Tier 1 (CET1) capital ratioC increased to 9.3% as a result of continued profitability and deferred tax asset utilization. Liquidity & Funding Consolidated cash and cash equivalents of $4.3 billion at quarter-end, down from $5.9 billion at the end of the fourth quarter. Included in this quarter’s cash balance are $2.1 billion at Ally Bank and $0.5 billion at the insurance subsidiary. Approximately $2.6 billion in unsecured debt matured in the quarter. U.S. auto term securitizations totaled approximately $3.0 billion for the quarter, including Ally’s first floorplan securitization since 2015. Additionally, during the quarter, Ally renewed approximately $1.25 billion in credit facilities. Approximately 75% of Ally’s total assets and 85% of total consumer auto originations were funded at Ally Bank in the first quarter. Deposits now represent approximately 58% of Ally’s funding portfolio, improving from 51% a year ago. Deposits Retail deposits at Ally Bank increased to $70.0 billion at quarter-end, up $3.4 billion for the quarter and up $11.0 billion year-over-year, with growth predominately being driven by savings products. Total deposits increased $5.5 billion quarter-over-quarter, including $1.0 billion of higher deposits from Ally Invest. Deposit customer base grew 15% year-over-year, totaling nearly 1.3 million customers at quarter-end, while adding 56,000+ customers over the prior quarter, the highest quarterly customer growth in four years. Average customer balance ended the quarter at $54.9 thousand. Millennials continue to comprise the largest generation segment of new customers at 55%.

^C Fully phased-in Basel III CET1 is a non-GAAP financial measure which Ally believes is important to the reader of the Consolidated Financial Statements, but which is supplemental to and not a substitute for U.S. GAAP measures. Ally’s preliminary Basel III Common Equity Tier 1 capital ratio, reflective of transition provisions, is 9.4%. Refer to the Definitions of Non-GAAP Financial Measures and Other Key Terms, and Reconciliation to GAAP later in this press release for details and calculation methodology.

4

Definitions of Non-GAAP  Financial Measures and Other Key Terms

Ally believes the non-GAAP financial measures defined here are important to the reader of the Consolidated Financial Statements, but these are supplemental to and not a substitute for U.S. GAAP measures.

Adjusted Earnings per Share (Adjusted EPS) is a non-GAAP financial measure that adjusts GAAP EPS for revenue and expense items that are typically strategic in nature or that management otherwise does not view as reflecting the operating performance of the company. Management believes Adjusted EPS can help the reader better understand the operating performance of the core businesses and their ability to generate earnings. In the numerator of Adjusted EPS, GAAP net income available to common is adjusted for the following items: (1) excludes discontinued operations, net of tax, as Ally is primarily a domestic company and sales of international businesses and previously discontinued mortgage operations in the past have significantly impacted GAAP EPS, (2) adds back the tax-effected non-cash expense bond exchange original issue discount (OID), (3) adds back tax-effected repositioning items primarily related to the extinguishment of high-cost legacy debt and strategic activities, and (4) excludes certain discrete tax items that do not relate to the operating performance of the core businesses.

Core pre-tax income is a non-GAAP financial measure that adjusts pre-tax income from continuing operations by excluding (1) core original issue discount (OID) amortization expense (primarily related to bond exchange OID – excludes international operations and future issuances) and (2) repositioning items primarily related to the extinguishment of high-cost legacy debt and strategic activities. Management believes core pre-tax income can help the reader better understand the operating performance of the core businesses and their ability to generate earnings. See the Results by Segment Table on page 3 for calculation methodology and details.

Core Net Income Available to Common is a non-GAAP financial measure that serves as the numerator in the calculations of Adjusted EPS and Core ROTCE and that, like those measures, is believed by management to help the reader better understand the operating performance of the core businesses and their ability to generate earnings. Core net income available to common adjusts GAAP net income available to common for discontinued operations net of tax, tax-effected OID expense, tax-effected repositioning items primarily related to the extinguishment of high-cost legacy debt and strategic activities, certain discrete tax items and preferred stock capital actions. See Reconciliation to GAAP on page 6 for calculation methodology and details.

Core Return on Tangible Common Equity (Core ROTCE) is a non-GAAP financial measure that management believes is helpful for readers to better understand the ongoing ability of the company to generate returns on its equity base that supports core operations. For purposes of this calculation, tangible common equity is adjusted for unamortized OID and net DTA. As of 1Q 2016, Ally’s core net income available to common for purposes of calculating Core ROTCE is based on the actual effective tax rate for the period adjusted for any discrete tax items including tax reserve releases, which aligns with the methodology used in calculating adjusted earnings per share.

(1) In the numerator of Core ROTCE, GAAP net income available to common is adjusted for discontinued operations net of tax, tax-effected OID expense, tax-effected repositioning items primarily related to the extinguishment of high-cost legacy debt and strategic activities, certain discrete tax items and preferred stock capital actions.

(2) In the denominator, GAAP shareholder’s equity is adjusted for preferred equity and goodwill and identifiable intangibles net of DTL, unamortized OID, and net DTA.

Adjusted Tangible Book Value Per Share (Adjusted TBVPS) is a non-GAAP financial measure that reflects the book value of equity available to shareholders even if original issue discount (OID) expense were accelerated immediately through the financial statements. As a result, management believes Adjusted TBVPS provides the reader with an assessment of value that is more conservative than GAAP common shareholder’s equity per share. Adjusted TBVPS generally adjusts common equity for (1) goodwill and identifiable intangibles, net of DTLs, and (2) tax-effected bond OID to reduce tangible common equity in the event the corresponding discounted bonds are redeemed/tendered. See Reconciliation to GAAP on page 7 for calculation methodology and details.

Adjusted Efficiency Ratio is a non-GAAP financial measure that management believes is helpful to readers in comparing the efficiency of its core banking and lending businesses with those of its peers. In the numerator of Adjusted Efficiency Ratio, total noninterest expense is adjusted for Insurance segment expense, repositioning items primarily related to strategic activities and rep and warrant expense. In the denominator, total net revenue is adjusted for Insurance segment revenue, repositioning items primarily related to the extinguishment of high-cost legacy debt and original issue discount (OID). See page 8 for calculation methodology and details.

Estimated Retail Auto Originated Yield is a forward-looking non-GAAP financial measure determined by calculating the estimated average annualized yield for loans originated during the period.

Net Financing Revenue (excluding OID) excludes OID.

Common Equity Tier 1 Capital (CET1): Under the Basel III regulatory framework as adopted in the United States, banking organizations like the company are required to comply with a minimum ratio of common equity tier 1 capital to risk-weighted assets (CET1 Capital Ratio). Common equity tier 1 capital generally consists of common stock (plus any related surplus and net of any treasury stock), retained earnings, accumulated other comprehensive income, and minority interests in the common equity of consolidated subsidiaries, subject to specified conditions and adjustments. The obligation to comply with the minimum CET1 Capital Ratio is subject to ongoing transition periods and other provisions under Basel III. Management believes that both the transitional CET1 Capital Ratio and the fully phased-in CET1 Capital Ratio are helpful to readers in evaluating the company’s capital utilization and adequacy in absolute terms and relative to its peers. The fully phased-in CET1 Capital Ratio is a non-GAAP financial measure that is reconciled to the transitional CET1 Capital Ratio later in this press release.

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.

5

Corporate and Other primarily consists of activity related to centralized corporate treasury activities such as management of the cash and corporate investment securities and loan portfolios, short- and long-term debt, retail and brokered deposit liabilities, derivative instruments, the amortization of the discount associated with new debt issuances and bond exchanges, and the residual impacts of our corporate FTP and treasury ALM activities. Corporate and Other also includes certain equity investments, the management of our legacy mortgage portfolio, and reclassifications and eliminations between the reportable operating segments. Subsequent to June 1, 2016, the revenue and expense activity associated with TradeKing was included within the Corporate and Other segment.

U.S. Consumer Auto Originations

New Retail Subvented – subvented rate new vehicle loans	New Retail Standard – standard rate new vehicle loans
Lease – new vehicle lease originations	Used – used vehicle loans
Growth – total originations from non-GM/Chrysler dealers and direct-to-consumer loans

Reconciliation to GAAP

Adjusted EPS
Numerator		1Q 17		4Q 16		1Q 16
GAAP net income available to common shareholders		$	214	$	248	$	235
Less: Disc Ops, net of tax			(1)		(2)		(3)
Add back: Original Issue Discount (OID expense)			16		15		15
Add back: Repositioning Items			-		-		7
Less: OID & Repo. Tax			(6)		(5)		(8)
Significant Discrete Tax Items & Other			-		-		7
Core net income available to common shareholders	[a]	$	224	$	256	$	253
Denominator
Weighted-Average Shares Outstanding - (Diluted, thousands)	[b]		466,829		474,505		484,654
Adjusted EPS	[a] ÷ [b]	$0.48		$0.54		$0.52

Core Return on Tangible Common Equity (ROTCE)
Numerator ($ millions)		1Q 17			4Q 16			1Q 16
GAAP net income available to common shareholders		$	214		$	248		$	235
Less: Disc Ops, net of tax			(1	)		(2	)		(3	)
Add back: Original Issue Discount (OID expense)			16			15			15
Add back: Repositioning Items			-			-			7
Less: OID & Repo. Tax			(6	)		(5	)		(8	)
Significant Discrete Tax Items & Other			-			-			7
Core net income available to common shareholders	[a]	$	224		$	256		$	253
Denominator (2-period average, $ billions)
GAAP shareholder’s equity		$	13.3		$	13.5		$	13.6
less: Preferred equity			-			-			(0.7	)
less: Goodwill & identifiable intangibles, net of deferred tax liabilities (DTLs)			(0.3	)		(0.3	)		(0.0	)
Tangible common equity		$	13.0		$	13.2		$	12.9
less: Unamortized core original issue discount (OID discount)			(1.2	)		(1.3	)		(1.3	)
less: Net deferred tax asset (DTA)			(1.0	)		(1.0	)		(1.2	)
Normalized common equity	[b]	$	10.8		$	10.9		$	10.4
Core Return on Tangible Common Equity	[a] ÷ [b]		8.2	%		9.4	%		9.8	%

6

Adjusted Tangible Book Value per Share
Numerator ($ billions)		1Q 17			4Q 16			1Q 16
GAAP shareholder’s equity		$	13.4		$	13.3		$	13.8
less: Preferred equity			-			-			(0.7)
GAAP Common shareholder’s equity		$	13.4		$	13.3		$	13.1
less: Goodwill and identifiable intangible assets, net of DTLs			(0.3	)		(0.3	)		(0.0	)
Tangible common equity			13.1			13.0			13.1
less: Tax-effected bond OID			(0.8	)		(0.8	)		(0.8	)
Adjusted tangible book value	[a]	$	12.3		$	12.2		$	12.3
Denominator
Issued shares outstanding (period-end, thousands)	[b]		462,193			467,000			483,475
Metric
GAAP shareholder’s equity per share		$	28.9		$	28.5		$	28.6
less: Preferred equity per share			-			-			(1.4	)
GAAP Common shareholder’s equity per share		$	28.9		$	28.5		$	27.2
less: Goodwill and identifiable intangible assets, net of DTLs per share			(0.6	)		(0.6	)		(0.1	)
Tangible common equity per share		$	28.3		$	27.9		$	27.1
less: Tax-effected bond OID per share			(1.7	)		(1.7	)		(1.7	)
Adjusted tangible book value per share	[a] ÷ [b]	$	26.6		$	26.2		$	25.4

Regulatory Capital - Basel III transition to fully phased-in ($ billions)
Numerator		1Q 17			4Q 16			1Q 16
Common equity tier 1 capital (transition)		$	12.9		$	13.0		$	12.7
DTAs arising from NOL and tax credit carryforwards phased-in during transition			(0.1	)		(0.3	)		(0.3	)
Intangibles phased-in during transition			(0.0	)		(0.0	)		-
Common equity tier 1 capital (fully phased-in)	[a]	$	12.8		$	12.7		$	12.3
Denominator
Risk-weighted assets (transition)		$	137.5		$	138.5		$	133.6
DTAs arising from temporary differences that could not be realized through NOL, net of VA and net of DTLs phased-in during transition			0.4			0.5			0.4
Intangibles phased-in during transition			(0.0	)		(0.0	)		-
Risk-weighted assets (fully phased-in)	[b]	$	137.9		$	139.0		$	134.0
Metric
Common equity tier 1 (transition)			9.4	%		9.4	%		9.5	%
Common equity tier 1 (fully phased-in)	[a] ÷ [b]		9.3	%		9.1	%		9.2	%

7

Adjusted Efficiency Ratio
Numerator ($ millions)		1Q 17		4Q 16		1Q 16
Total noninterest expense		$	778	$	721	$	710
less: Rep and warrant expense			(0)		(0)		(1)
less: Insurance expense			239		207		218
adj: Repositioning items			-		-		4
Adjusted noninterest expense	[a]	$	539	$	514	$	488
Denominator ($ millions)
Total net revenue		$	1,375	$	1,368	$	1,327
add: Original issue discount			16		15		15
adj: Repositioning items			-		-		3
less: Insurance revenue			279		276		268
Adjusted net revenue	[b]	$	1,112	$	1,107	$	1,076
Adjusted Efficiency Ratio	[a] ÷ [b]		48.5%		46.4%		45.4%

Additional Financial Information

For additional financial information, the first quarter 2017 earnings presentation and financial supplement are available in the Events & Presentations section of Ally’s Investor Relations Website at http://www.ally.com/about/investor/events-presentations/.

About Ally Financial Inc.

Ally Financial Inc. (NYSE: ALLY) is a leading digital financial services company and a top 25 U.S. financial holding company offering financial products for consumers, businesses, automotive dealers and corporate clients. Ally’s legacy dates back to 1919, and the company was redesigned in 2009 with a distinctive brand, innovative approach and relentless focus on its customers. Ally has an award-winning online bank (Ally Bank Member FDIC and Equal Housing Lender), one of the largest full service auto finance operations in the country, a complementary auto-focused insurance business, a growing digital wealth management and online brokerage platform, and a trusted corporate finance business offering capital for equity sponsors and middle-market companies.

The company had approximately $162.1 billion in assets as of Mar. 31, 2017. For more information, visit the Ally press room at http://media.ally.com or follow Ally on Twitter: @AllyFinancial.

Forward-Looking Statements

This earnings release and related communications should be read in conjunction with the financial statements, notes, and other information contained in our 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 and third-party data available at the time of the presentation or related communication.

This earnings release and related communications contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements can be identified by the fact that they do not relate strictly to historical or current facts—such as our statements about targets and expectations for various financial and operating metrics. Forward-looking statements often use words such as “believe,” “expect,” “anticipate,” “intend,” “pursue,” “seek,” “continue,” “estimate,” “project,” “outlook,” “forecast,” “potential,” “target,” “objective,” “trend,” “plan,” “goal,” “initiative,” “priorities,” or other words of comparable meaning or future-tense or conditional verbs such as “may,” “will,” “should,” “would,” or “could.” Forward-looking statements convey our expectations, intentions, or forecasts about future events, circumstances, or results. All forward-looking statements, by their nature, are subject to assumptions, risks, and uncertainties, which may change over time and many of which are beyond our control. You should not rely on any forward-looking statement as a prediction or guarantee about the future. Actual future objectives, strategies, plans, prospects, performance, conditions, or results may differ materially from those set forth in any forward-looking statement. Some of the factors that may cause actual results or other future events or circumstances to differ from those in forward-looking statements are described in our Annual Report on Form 10-K for the year ended December 31, 2016, our subsequent Quarterly Reports on Form 10-Q or Current Reports on Form 8-K, or other applicable documents that are filed or furnished with the U.S. Securities and Exchange Commission (collectively, our “SEC filings”). Any forward-looking statement made by us or on our behalf speaks only as of the date that it was made. We do not undertake to update any forward-looking statement to reflect the impact of events, circumstances, or results that arise after the date that the statement was made, except as required by applicable securities laws. You, however, should consult further disclosures (including disclosures of a forward-looking nature) that we may make in any subsequent SEC filings.

This presentation and related communications contain specifically identified non-GAAP financial measures, which supplement the results that are reported according to generally accepted accounting principles (“GAAP”). These non-GAAP financial measures may be useful to investors but should not be viewed in isolation from, or as a substitute for, GAAP results. Differences between non-GAAP financial measures and comparable GAAP financial measures are reconciled in the presentation.

Our use of the term “loans” describes all of the products associated with our direct and indirect lending activities. The specific products include loans, retail installment sales contracts, lines of credit, leases, and other financing products. The term “lend” or “originate” refers to our direct origination of loans or our purchase or acquisition of loans.

Contacts:
Michael Brown	Sari Jensen
Ally Investor Relations	Ally Communications (Media)
704-444-5225	646-781-2539
michael.t.brown@ally.com	sari.jensen@ally.com

8

EX-99.2

Ally Financial Inc. 1Q 2017 Earnings Review Contact Ally Investor Relations at (866) 710-4623 or investor.relations@ally.com April 27, 2017 Exhibit 99.2

Forward-Looking Statements and Additional Information This presentation and related communications should be read in conjunction with the financial statements, notes, and other information contained in our 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 and third-party data available at the time of the presentation or related communication. This presentation and related communications contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements can be identified by the fact that they do not relate strictly to historical or current facts—such as our statements about targets and expectations for various financial and operating metrics. Forward-looking statements often use words such as “believe,” “expect,” “anticipate,” “intend,” “pursue,” “seek,” “continue,” “estimate,” “project,” “outlook,” “forecast,” “potential,” “target,” “objective,” “trend,” “plan,” “goal,” “initiative,” “priorities,” or other words of comparable meaning or future-tense or conditional verbs such as “may,” “will,” “should,” “would,” or “could.” Forward-looking statements convey our expectations, intentions, or forecasts about future events, circumstances, or results. All forward-looking statements, by their nature, are subject to assumptions, risks, and uncertainties, which may change over time and many of which are beyond our control. You should not rely on any forward-looking statement as a prediction or guarantee about the future. Actual future objectives, strategies, plans, prospects, performance, conditions, or results may differ materially from those set forth in any forward-looking statement. Some of the factors that may cause actual results or other future events or circumstances to differ from those in forward-looking statements are described in our Annual Report on Form 10-K for the year ended December 31, 2016, our subsequent Quarterly Reports on Form 10-Q or Current Reports on Form 8-K, or other applicable documents that are filed or furnished with the U.S. Securities and Exchange Commission (collectively, our “SEC filings”). Any forward-looking statement made by us or on our behalf speaks only as of the date that it was made. We do not undertake to update any forward-looking statement to reflect the impact of events, circumstances, or results that arise after the date that the statement was made, except as required by applicable securities laws. You, however, should consult further disclosures (including disclosures of a forward-looking nature) that we may make in any subsequent SEC filings. This presentation and related communications contain specifically identified non-GAAP financial measures, which supplement the results that are reported according to generally accepted accounting principles (“GAAP”). These non-GAAP financial measures may be useful to investors but should not be viewed in isolation from, or as a substitute for, GAAP results. Differences between non-GAAP financial measures and comparable GAAP financial measures are reconciled in the presentation. Our use of the term “loans” describes all of the products associated with our direct and indirect lending activities. The specific products include loans, retail installment sales contracts, lines of credit, leases, and other financing products. The term “lend” or “originate” refers to our direct origination of loans or our purchase or acquisition of loans.  

GAAP and Core Results The following are non-GAAP financial measures which Ally believes are important to the reader of the Consolidated Financial Statements, but which are supplemental to and not a substitute for U.S. GAAP measures: Adjusted Earnings per Share (Adjusted EPS), Core Pre-Tax Income, Core Net Income Available to Common, Core Return on Tangible Common Equity (Core ROTCE), Adjusted Efficiency Ratio, fully phased-in Common Equity Tier 1 (CET1) capital, Adjusted Total Net Revenue, Adjusted Other Revenue, Net Financing Revenue, excluding OID and Adjusted Tangible Book Value per Share (Adjusted TBVPS). These measures are used by management and we believe are useful to investors in assessing the company’s operating performance and capital measures. Refer to the Definitions of Non-GAAP Financial Measures and Other Key Terms, and Reconciliation to GAAP later in this document. Core net income available to common is a non-GAAP financial measure that serves as the numerator in the calculations of Adjusted EPS and Core ROTCE and that, like those measures, is believed by management to help the reader better understand the operating performance of the core businesses and their ability to generate earnings. See pages 24 and 25 for calculation methodology and details. Adjusted earnings per share (Adjusted EPS) is a non-GAAP financial measure that adjusts GAAP EPS for revenue and expense items that are typically strategic in nature or that management otherwise does not view as reflecting the operating performance of the company. Management believes Adjusted EPS can help the reader better understand the operating performance of the core businesses and their ability to generate earnings. See page 25 for calculation methodology and details. Core return on tangible common equity (Core ROTCE) is a non-GAAP financial measure that management believes is helpful for readers to better understand the ongoing ability of the company to generate returns on its equity base that supports core operations. For purposes of this calculation, tangible common equity is adjusted for unamortized original issuance discount and the net deferred tax asset. See page 27 for calculation methodology and details. Adjusted tangible book value per share (Adjusted TBVPS) is a non-GAAP financial measure that reflects the book value of equity available to shareholders even if original issue discount (OID) expense were accelerated immediately through the financial statements. As a result, management believes Adjusted TBVPS provides the reader with an assessment of value that is more conservative than GAAP common shareholder’s equity per share. See page 26 for calculation methodology and details. Adjusted efficiency ratio is a non-GAAP financial measure that management believes is helpful to readers in comparing the efficiency of its core banking and lending businesses with those of its peers. Adjusted efficiency ratio generally adjusts for Insurance segment revenue and expense, repositioning items, rep and warrant expense and OID. See page 28 for calculation methodology and details.

First Quarter Highlights Represents a non-GAAP financial measure. See page 25 for calculation methodology and details. Estimated retail auto originated yield is a forward-looking non-GAAP financial measure determined by calculating the estimated average annualized yield for loans originated during the period. Established path to drive long-term shareholder value Adjusted EPS(1) of 48 cents Remain cautious on auto environment but continue to see attractive risk/return opportunities Estimated retail auto originated yield(2) of approximately 6.1% in 1Q, up from 5.3% in 1Q 15 Solid lease yield of 5.7% despite used vehicle price declines Used vehicle values improved in late March and April Record total deposit growth of $5.5 billion Continued path to increase diversification and enhance digital offering Corporate Finance earning asset balances up 23% YoY Introduced Clearlane, an online auto finance marketplace Ally Invest to launch in 2Q - Ally’s online brokerage and digital wealth management offering

Current Key Topics Used Vehicle Price Declines Dynamics Mitigating Factors 1Q used vehicle values down 6.7% YoY per Ally Index Higher volume of off-lease vehicles coming into market over next few years Dealer inventory levels and OEM incentives are factors to watch Reducing residual value risk as lease portfolio declines and skews towards more trucks/SUVs Residual values set lower since 2013 anticipating used vehicle value declines Expect 2017 lease yield of 5.6 – 6.0% Credit Costs Retail auto losses have increased due to deliberate mix shift Lower credit tier performance has deteriorated Higher originated yields on recent vintages Continue to adjust underwriting strategies to improve underperforming areas Nonprime retail auto loans comprise less than 8% of total loan portfolio as of 1Q 17 Weather Losses 1Q 17 weather losses up $16 million YoY and up $30 million vs. prior 7-year average Impacted EPS by $0.02 in 1Q 17 vs. PY and $0.04 vs. the prior 7-year average Strong storms drove higher than expected losses the last week of March Purchased reinsurance coverage to reduce future volatility Coverage effective April 1st

First Quarter Financial Results Represents a non-GAAP financial measure. Excludes OID. See page 30 for calculation methodology and details. Repositioning items are primarily related to the extinguishment of high-cost legacy debt and strategic activities. “Other” primarily includes certain discrete tax items. See page 24 for details. Represents a non-GAAP financial measure. See pages 25, 27 and 28 for calculation methodology and details.

Core Metric Trend Adjusted Earnings per Share(1) Adjusted Total Net Revenue(2) Total Deposits Adjusted Tangible Book Value per Share(3) (3) Represents a non-GAAP financial measure. See page 26 for details. (1) Represents a non-GAAP financial measure. See page 25 for details. (2) Represents a non-GAAP financial measure. See page 30 for details. Note: Other includes mortgage escrow, dealer, and other deposits

Net Interest Margin Net Interest Margin (“NIM”) of 2.60% NIM (excluding OID)(1) of 2.64% up 1 bps YoY and 4 bps QoQ Retail and Commercial auto balances and yields partially offsetting lease balance and yield decline Expect more meaningful benefit in 2Q from unsecured maturities and continued asset yield increase Represents a non-GAAP financial measure. Excludes OID. See page 30 for calculation methodology and details. Includes brokered deposits. Includes average noninterest-bearing deposits of $93 million in 1Q17, $96 million in 4Q16, and $92 million in 1Q16 Includes Demand Notes, FHLB, and Repurchase Agreements Includes private unsecured committed credit facility

Deposits Record total deposits growth of $5.5 billion in 1Q 17 Retail deposits up $3.4 billion QoQ and $11.0 billion YoY Benefit of ~$1 billion of deposits from Ally Invest Total deposits at $84.5 billion up 20% YoY Average retail deposit rate down 2 bps YoY 1.27 million retail deposit customers as of 1Q 17 Highest retail deposit customer growth in 4 years Ended 1Q with ~500k millennial customers Stable, consistent growth of retail deposits Deposit Mix Retail deposit customer growth Note: Other includes mortgage escrow, dealer, and other deposits Note: Other includes mortgage escrow, dealer, and other deposits +56k customers QoQ

Capital (1) All capital ratios represent fully phased-in Basel III, which are non-GAAP financial measures; See page 29 for details. Capital Ratios(1) and Risk-Weighted Assets Deferred Tax Asset Utilization Note: reflects Basel III fully phased-in disallowed DTA. Disallowed DTA is phased in to CET1 during transition period. See page 29 for more details. Share Buyback Summary Note: ‘Since Inception’ includes activity in 3Q 16 - 1Q 17. Shares repurchased include shares withheld to cover taxes related to employee stock ownership plans. Outstanding Share Summary Note: 1Q 2017 outstanding shares net of annual incentive compensation related share issuance.

Consolidated Net Charge-Offs Provision Expense Asset Quality U.S. Retail Auto Net Charge-Offs U.S. Retail Auto Delinquencies Note: Above loans are classified as held-for-investment and recorded at gross carrying value. Note: Includes accruing contracts only. Note: See page 24 for definition. (1) Annualized NCO% (excluding asset sales) includes total held-for-investment, held-for-sale and sold assets to illustrate Ally’s NCO % with no prior loan sale activity. (1) Note: Retail auto loans exclude fair value adjustments for loans in hedge accounting relationship.

Auto Finance reported pre-tax income of $288 million in 1Q, down $49 million YoY and down $10 million QoQ Net financing revenue lower YoY and QoQ due to lower net lease revenue Other revenue up YoY and QoQ driven by gains on loan sales Provision up YoY driven by deliberate mix shift Record Used retail auto volume of $4.2 billion 48% Used vehicle originations Weekly lease termination auction performance improved March/April from February levels Auto Finance – Results improvement in March / April Source: Used LVS – NADA; New LVS – Wards, BEA Noninterest expense includes corporate allocations of $180 million in 1Q 2017, $165 million in 4Q 2016 and $174 million in 1Q 2016 Note: reflects gain / (loss) relative to current book value, not relative to residual value at origination

Auto Finance – Key Metrics See page 24 for definitions Consumer Assets Commercial Assets Consumer Originations Origination Mix Note: Asset balances reflect the average daily balance for the quarter See page 24 for definitions

Insurance Pre-tax income of $40 million, down $10 million YoY and down $29 million QoQ Weather losses up $16 million YoY and $32 million QoQ 10th largest weather loss event ever the last week of March Purchased reinsurance coverage (effective Apr. 1st) Written premiums of $240 million in 1Q up $18 million YoY and up $3 million QoQ P&C written premiums up $11 million YoY driven by rate increases and higher dealer floorplan levels Vehicle inventory insurance rates up 14% YoY Noninterest expense includes corporate allocations of $13 million in 1Q 2017, $12 million in 4Q 2016 and $13 million in 1Q 2016

Pre-tax income of $25 million, up $14 million YoY and down $6 million QoQ Net financing revenue up YoY driven by strong loan growth Total other revenue favorability driven by gain on equity investments and continued strong loan syndication and fee income Provision expense up due primarily to asset growth and recoveries in the prior quarter Held for investment portfolio up 23% YoY to $3.4 billion Ally hired an experienced healthcare real estate team in 1Q 17 Corporate Finance Noninterest expense includes corporate allocations of $6 million in 1Q 2017, $6 million in 4Q 2016 and $5 million in 1Q 2016

Mortgage Finance Noninterest expense includes corporate allocations of $13 million in 1Q 2017, $9 million in 4Q 2016, and $10 million in 1Q 2016 1st lien only. Updated home values derived using a combination of appraisals, BPOs, AVMs and MSA level house price indices Pre-tax income of $9 million, up $7 million YoY and down $6 million QoQ Higher net financing revenue YoY driven by asset balance growth from bulk purchase activity Provision expense lower YoY due to strong credit performance and up QoQ due to a reserve release in the prior quarter Noninterest expense increase linked to asset growth Total assets of $8.4 billion, up $0.9 billion YoY and relatively flat QoQ Introduced Ally Home® direct-to-consumer product suite Still in early phase of roll-out Marketing will gradually expand throughout 2017

Conclusion – Plan for Driving Strong Shareholder Returns Represents a non-GAAP financial measure. See page 25 and 27 for calculation methodology and details. Continue to optimize retail auto returns to ensure strong profitability through the cycle Unlock value of Ally’s brand Deposits are key long-term value driver Diversify and strengthen the franchise Demonstrate smart growth and product expansion Demonstrate credit metrics are contained within a range Deliver medium-term financial targets – 15% Adjusted EPS(1) CAGR and 12% Core ROTCE(1) Protect and grow book value Return significant capital to shareholders Grow and solidify customer relationships to position for the long-term

Supplemental Charts

Results by Segment OID amortization expense and repositioning items for all periods shown are applied to the pre-tax income of the Corporate and Other segment. Repositioning items are primarily related to the extinguishment of high-cost legacy debt and strategic activities. See page 24 for details. Core pre-tax income is a non-GAAP financial measure that adjusts pre-tax income from continuing operations for repositioning items and OID amortization expense. Management believes core pre-tax income can help the reader better understand the operating performance of the core businesses and their ability to generate earnings. See page 24 for calculation methodology and details. Supplemental

Bank funding at 75% up 4 pts YoY Deposits at 58% of total funding (ex OID) up 7 pts YoY New secured funding in 1Q 17 $2.3 billion retail auto securitizations $0.7 billion floorplan securitization Strong total liquidity levels at $17.9 billion in 1Q 17 Funding and Liquidity As of 3/31/17. Total maturities for 2021 and beyond do not exceed $3.0 billion in any given year. Current period does not include early debt redemptions. Note: Total Liquidity includes cash & cash equivalents, highly liquid securities and current committed unused capacity. See page 18 of the Financial Supplement for more details. Unsecured Long-Term Debt Maturities Growth in Bank Funded Assets Funding Profile 1Q 2016 1Q 2017 Supplemental Note: excludes OID

Primarily bond exchange OID amortization expense used for calculating core pre-tax income. Repositioning items are primarily related to the extinguishment of high-cost legacy debt and other strategic items. See page 24 for additional details. Represents a non-GAAP financial measure. See page 30 for calculation methodology and details. Primarily HFI legacy mortgage portfolio. Corporate and Other Supplemental Corporate and Other includes the impact of centralized asset and liability management, corporate overhead allocation activities, the legacy mortgage portfolio and TradeKing (Ally Invest) activity Pre-tax loss of $36 million down $33 million YoY and down $3 million QoQ Net financing revenue higher YoY Higher investment securities balance and yield Lower unsecured debt balance as maturities refinanced with lower cost funding Other revenue lower YoY and QoQ due primarily to lower gains on investment securities in 1Q 17 Noninterest expense up YoY primarily due to TradeKing integration and operations Total assets up $1.2 billion YoY Higher investment securities balance Held-for-investment mortgage loan decline due to legacy portfolio run-off *Note: Ally acquired TradeKing in June 2016, prior period results reflect the independent company.

Interest Rate Sensitivity Net financing revenue impacts reflect a rolling 12-month view For 1Q 17 modeled scenario, pass-through levels steadily increase as absolute market interest rates rise; currently assumes 30-50% in the medium-term, steadily increasing to ~75% in the long-term. For 4Q 16, results in greater than 75% pass-through rate over time. See page 24 for additional details. Supplemental

Deferred Tax Asset Supplemental U.S. GAAP does not prescribe a method for calculating individual elements of deferred taxes for interim periods; therefore, these balances are estimated Primarily book / tax timing differences

Notes on non-GAAP and other financial measures Supplemental Core pre-tax income is a non-GAAP financial measure that adjusts pre-tax income from continuing operations by excluding (1) core original issue discount (OID) amortization expense (primarily related to bond exchange OID – excludes international operations and future issuances) and (2) repositioning items primarily related to the extinguishment of high-cost legacy debt and strategic activities. Management believes core pre-tax income can help the reader better understand the operating performance of the core businesses and their ability to generate earnings. See page 30 for calculation methodology and details. Core net income available to common is a non-GAAP financial measure that serves as the numerator in the calculations of Adjusted EPS and Core ROTCE and that, like those measures, is believed by management to help the reader better understand the operating performance of the core businesses and their ability to generate earnings. Core net income available to common adjusts GAAP net income available to common for discontinued operations net of tax, tax-effected OID expense, tax-effected repositioning items primarily related to the extinguishment of high-cost legacy debt and strategic activities, certain discrete tax items and preferred stock capital actions. See page 25 for calculation methodology and details. U.S. consumer auto originations New Retail Subvented – subvented rate new vehicle loans New Retail Standard – standard rate new vehicle loans Lease – new vehicle lease originations Used – used vehicle loans Growth – total originations from non-GM/Chrysler dealers and direct-to-consumer loans 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. Interest rate risk modeling – During the first quarter of 2017 we implemented a dynamic pass-through modeling assumption on our retail liquid products deposits portfolio, whereby deposit pass-through levels increase as the absolute level of market interest rates rise. As a result, our baseline forecast assumes a medium-term deposit beta of 30% to 50%, steadily increasing to approximately 75% over the longer term. Our upward interest rate shock scenarios assume a longer term liquid products deposit beta of approximately 75%. We continue to believe our deposits may ultimately be less sensitive to interest rate changes, which would reduce our overall exposure to rising interest rate shocks. Assuming a static liquid products retail deposit beta of 50% would result in a consolidated interest rate risk position that is asset sensitive in the upward interest rate shock scenarios. Please see the 10-Q for more details. Tangible Common Equity is defined 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 readers 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. For purposes of calculating Core return on tangible common equity (Core ROTCE), tangible common equity is further adjusted for unamortized original issuance discount and net deferred tax asset. See page 26 for more details. The following are non-GAAP financial measures which Ally believes are important to the reader of the Consolidated Financial Statements, but which are supplemental to and not a substitute for U.S. GAAP measures: Adjusted Earnings per Share (Adjusted EPS), Core Pre-Tax Income, Core Net Income Available to Common, Core Return on Tangible Common Equity (Core ROTCE), Adjusted Efficiency Ratio, fully phased-in Common Equity Tier 1 (CET1) capital, Adjusted Total Net Revenue, Adjusted Other Revenue, Net Financing Revenue, excluding OID and Adjusted Tangible Book Value per Share (Adjusted TBVPS). These measures are used by management and we believe are useful to investors in assessing the company’s operating performance and capital measures. Refer to the Definitions of Non-GAAP Financial Measures and Other Key Terms, and Reconciliation to GAAP later in this document.

GAAP to Core Results - Quarterly Supplemental Adjusted earnings per share (Adjusted EPS) is a non-GAAP financial measure that adjusts GAAP EPS for revenue and expense items that are typically strategic in nature or that management otherwise does not view as reflecting the operating performance of the company. Management believes Adjusted EPS can help the reader better understand the operating performance of the core businesses and their ability to generate earnings. In the numerator of Adjusted EPS, GAAP net income available to common is adjusted for the following items: (1) excludes discontinued operations, net of tax, as Ally is primarily a domestic company and sales of international businesses and other discontinued operations in the past have significantly impacted GAAP EPS, (2) adds back the tax-effected non-cash expense bond exchange original issue discount (OID), (3) adds back tax-effected repositioning items primarily related to the extinguishment of high-cost legacy debt and strategic activities, (4) excludes certain discrete tax items that do not relate to the operating performance of the core businesses, and (5) adjusts for preferred stock capital actions (e.g., Series A and Series G) that have been taken by the company to normalize its capital structure.

GAAP to Core Results - Quarterly Supplemental Adjusted tangible book value per share (Adjusted TBVPS) is a non-GAAP financial measure that reflects the book value of equity available to shareholders even if original issue discount (OID) expense were accelerated immediately through the financial statements. As a result, management believes Adjusted TBVPS provides the reader with an assessment of value that is more conservative than GAAP common shareholder’s equity per share. Adjusted TBVPS generally adjusts common equity for (1) goodwill and identifiable intangibles, net of DTLs, (2) tax-effected bond OID to reduce tangible common equity in the event the corresponding discounted bonds are redeemed/tendered and (3) Series G discount which reduces tangible common equity as the company has normalized its capital structure.

GAAP to Core Results - Quarterly Supplemental Core return on tangible common equity (Core ROTCE) is a non-GAAP financial measure that management believes is helpful for readers to better understand the ongoing ability of the company to generate returns on its equity base that supports core operations. For purposes of this calculation, tangible common equity is adjusted for unamortized OID and net DTA. Ally’s Core net income available to common utilized a static 34% tax rate for purposes of calculating Core ROTCE through 4Q 2015. As of 1Q 2016, Ally’s Core net income available to common for purposes of calculating Core ROTCE is based on the actual effective tax rate for the period adjusted for any discrete tax items including tax reserve releases, which aligns with the methodology used calculating adjusted earnings per share. In the numerator of Core ROTCE, GAAP net income available to common is adjusted for discontinued operations net of tax, tax-effected OID expense, tax-effected repositioning items primarily related to the extinguishment of high-cost legacy debt and strategic activities, certain discrete tax items and preferred stock capital actions. In the denominator, GAAP shareholder’s equity is adjusted for preferred equity and goodwill and identifiable intangibles net of DTL, unamortized OID, and net DTA.

GAAP to Core Results - Quarterly Supplemental Adjusted efficiency ratio is a non-GAAP financial measure that management believes is helpful to readers in comparing the efficiency of its core banking and lending businesses with those of its peers. In the numerator of Adjusted efficiency ratio, total noninterest expense is adjusted for Insurance segment expense, repositioning items primarily related to strategic activities and rep and warrant expense. In the denominator, total net revenue is adjusted for Insurance segment revenue, repositioning items primarily related to the extinguishment of high-cost legacy debt and original issue discount (OID). See page 14 for the combined ratio for the Insurance segment which management uses as a primary measure of underwriting profitability for the Insurance business.

Notes on non-GAAP and other financial measures Supplemental Common Equity Tier 1 (“CET1”) capital fully phased-in: Under the Basel III regulatory framework as adopted in the United States, banking organizations like the company are required to comply with a minimum ratio of common equity tier 1 capital to risk-weighted assets (CET1 Capital Ratio). Common equity tier 1 capital generally consists of common stock (plus any related surplus and net of any treasury stock), retained earnings, accumulated other comprehensive income, and minority interests in the common equity of consolidated subsidiaries, subject to specified conditions and adjustments. The obligation to comply with the minimum CET1 Capital Ratio is subject to ongoing transition periods and other provisions under Basel III. Management believes that both the transitional CET1 Capital Ratio and the fully phased-in CET1 Capital Ratio are helpful to readers in evaluating the company’s capital utilization and adequacy in absolute terms and relative to its peers. The fully phased-in CET1 Capital Ratio is a non-GAAP financial measure that is reconciled to the transitional CET1 Capital Ratio above.

Notes on non-GAAP and other financial measures Supplemental Represents core pre-tax income. See page 24 for definitions

EX-99.3

Exhibit 99.3

FIRST QUARTER 2017

FINANCIAL SUPPLEMENT

ALLY FINANCIAL INC. FORWARD-LOOKING STATEMENTS AND ADDITIONAL INFORMATION

This document and related communications should be read in conjunction with the financial statements, notes, and other information contained in our 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 and third-party data available at the time of the presentation or related communication.

This document and related communications contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements can be identified by the fact that they do not relate strictly to historical or current facts—such as our statements about targets and expectations for various financial and operating metrics. Forward-looking statements often use words such as “believe,” “expect,” “anticipate,” “intend,” “pursue,” “seek,” “continue,” “estimate,” “project,” “outlook,” “forecast,” “potential,” “target,” “objective,” “trend,” “plan,” “goal,” “initiative,” “priorities,” or other words of comparable meaning or future-tense or conditional verbs such as “may,” “will,” “should,” “would,” or “could.” Forward-looking statements convey our expectations, intentions, or forecasts about future events, circumstances, or results. All forward-looking statements, by their nature, are subject to assumptions, risks, and uncertainties, which may change over time and many of which are beyond our control. You should not rely on any forward-looking statement as a prediction or guarantee about the future. Actual future objectives, strategies, plans, prospects, performance, conditions, or results may differ materially from those set forth in any forward-looking statement. Some of the factors that may cause actual results or other future events or circumstances to differ from those in forward-looking statements are described in our Annual Report on Form 10-K for the year ended December 31, 2016, our subsequent Quarterly Reports on Form 10-Q or Current Reports on Form 8-K, or other applicable documents that are filed or furnished with the U.S. Securities and Exchange Commission (collectively, our “SEC filings”). Any forward-looking statement made by us or on our behalf speaks only as of the date that it was made. We do not undertake to update any forward-looking statement to reflect the impact of events, circumstances, or results that arise after the date that the statement was made, except as required by applicable securities laws. You, however, should consult further disclosures (including disclosures of a forward-looking nature) that we may make in any subsequent SEC filings.

This document and related communications contain specifically identified non-GAAP financial measures, which supplement the results that are reported according to generally accepted accounting principles (“GAAP”). These non-GAAP financial measures may be useful to investors but should not be viewed in isolation from, or as a substitute for, GAAP results. Differences between non-GAAP financial measures and comparable GAAP financial measures are reconciled in the presentation.

Our use of the term “loans” describes all of the products associated with our direct and indirect lending activities. The specific products include loans, retail installment sales contracts, lines of credit, leases, and other financing products. The term “lend” or “originate” refers to our direct origination of loans or our purchase or acquisition of loans.

1Q 2017 Preliminary Results 2

ALLY FINANCIAL INC. TABLE OF CONTENTS

	Page(s)
Consolidated Results
Consolidated Financial Highlights		4
Consolidated Income Statement		5
Consolidated Period-End Balance Sheet		6
Consolidated Average Balance Sheet		7
Segment Detail
Segment Highlights		8
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
Earnings Per Share Related Information		21
Adjusted Tangible Book Per Share Related Information		22
Core ROTCE Related Information		23
Adjusted Efficiency Ratio Related Information		24

1Q 2017 Preliminary Results 3

ALLY FINANCIAL INC. CONSOLIDATED FINANCIAL HIGHLIGHTS

($ in millions, shares in thousands)

	QUARTERLY TRENDS															CHANGE VS.
Selected Income Statement Data	1Q 17			4Q 16			3Q 16			2Q 16			1Q 16			4Q 16			1Q 16
Net financing revenue (ex. OID) (1)	$	995		$	991		$	1,011		$	998		$	964		$	4		$	32
OID amortization expense (2)		(16	)		(15	)		(15	)		(14	)		(13	)		(1	)		(4	)
Net financing revenue (as reported)		979			976			996			984			951			3			28
Total other revenue		396			392			388			374			376			4			20
Total net revenue		1,375			1,368			1,384			1,358			1,327			7			48
Provision for loan losses		271			267			258			172			220			4			51
Total Noninterest Expense (3)		778			721			735			773			710			57			68
Pre-tax income from continuing operations		326			380			391			413			397			(54	)		(71	)
Income tax expense		113			134			130			56			150			(21	)		(37	)
Income / (Loss) from discontinued operations, net of tax		1			2			(52	)		3			3			(1	)		(2	)
Net income		214			248			209			360			250			(34	)		(36	)
Preferred dividends		-			-			-			15			15			-			(15	)
Net income available to common	$	214		$	248		$	209		$	345		$	235		$	(34	)	$	(21	)
Selected Balance Sheet Data (Period-End)
Total assets	$	162,101		$	163,728		$	157,397		$	157,931		$	156,505		$	(1,627	)	$	5,596
Consumer loans		76,600			76,843			75,673			74,365			73,688			(243	)		2,912
Commercial loans		42,402			42,101			39,286			38,288			37,188			301			5,214
Allowance for loan losses		(1,155	)		(1,144	)		(1,134	)		(1,089	)		(1,077	)		(11	)		(78	)
Deposits		84,486			79,022			75,744			72,802			70,265			5,464			14,221
Common equity (4)		13,365			13,317			13,630			13,611			13,127			48			238
Total equity		13,365			13,317			13,630			13,611			13,823			48			(458	)
Common Share Count
Weighted average basic (5)		465,961			472,502			482,393			485,370			484,233			(6,541	)		(18,272	)
Weighted average diluted (5)		466,829			474,505			483,575			486,074			484,654			(7,675	)		(17,825	)
Issued shares outstanding (period-end)		462,193			467,000			475,470			483,753			483,475			(4,807	)		(21,282	)
Per Common Share Data
Earnings per share (basic) (5)	$	0.46		$	0.53		$	0.43		$	0.71		$	0.49		$	(0.07	)	$	(0.03	)
Earnings per share (diluted) (5)		0.46			0.52			0.43			0.71			0.49			(0.06	)		(0.03	)
Adjusted earnings per share (6)		0.48			0.54			0.56			0.54			0.52			(0.06	)		(0.04	)
Book value per share		28.9			28.5			28.7			28.1			28.6			0.4			0.3
Tangible book value per share (7)		28.3			27.9			28.0			27.6			27.1			0.4			1.2
Adjusted tangible book value per share (7)		26.6			26.2			26.3			25.9			25.4			0.4			1.2
Select Financial Ratios
Net interest margin (as reported)		2.60%			2.56%			2.69%			2.68%			2.59%
Net interest margin (ex. OID) (8)		2.64%			2.60%			2.73%			2.72%			2.63%
Cost of funds (incl. OID) (8)		1.94%			1.90%			1.89%			1.90%			1.88%
Cost of funds (ex. OID) (8)		1.87%			1.84%			1.83%			1.84%			1.82%
Efficiency Ratio (8)		56.6%			52.7%			53.1%			56.9%			53.5%
Adjusted efficiency ratio (8)(9)		48.5%			46.4%			45.9%			43.7%			45.4%
Return on average assets (10)		0.5%			0.6%			0.5%			0.9%			0.6%
Return on average total equity (10)		6.4%			7.4%			6.1%			10.4%			7.3%
Return on average tangible common equity (8)(10)		6.6%			7.5%			6.3%			10.4%			7.3%
Core ROTCE (8)(10)(11)		8.2%			9.4%			9.8%			9.7%			9.8%
Capital Ratios (12)
Common Equity Tier 1 (CET1) capital ratio (13)		9.4%			9.4%			9.5%			9.6%			9.5%
Tier 1 capital ratio		11.1%			10.9%			11.1%			11.2%			11.6%
Total capital ratio		12.7%			12.6%			12.8%			12.8%			13.0%

(1) Represents a non-GAAP financial measure. Excludes original issue discount expense (OID).

(2) OID is primarily related to bond exchange OID (excludes international operations and future issuances)

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

(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) Represents a non-GAAP financial measure. For more details refer to page 21

(7) Represents a non-GAAP financial measure. For more details refer to page 22

(8) Represents a non-GAAP financial measure.

(9) Represents a non-GAAP financial measure. For more details refer to page 24

(10) Return metrics are annualized.

(11) Return metrics are annualized. For more details refer to page 23

(12) 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

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

1Q 2017 Preliminary Results 4

ALLY FINANCIAL INC. CONSOLIDATED INCOME STATEMENT

($ in millions)

	QUARTERLY TRENDS														CHANGE VS.
	1Q 17			4Q 16			3Q 16			2Q 16		1Q 16			4Q 16			1Q 16
Financing revenue and other interest income
Interest and fees on finance receivables and loans	$	1,368		$	1,355		$	1,307		$	1,265	$	1,235		$	13		$	133
Interest on loans held-for-sale		-			-			-			-		-			-			-
Total interest and dividends on investment securities		126			109			101			99		102			17			24
Interest-bearing cash		5			4			3			4		3			1			2
Other Earning Assets		8			7			-			-		-			1			8
Operating leases		543			592			649			701		769			(49	)		(226	)
Total financing revenue and other interest income		2,050			2,067			2,060			2,069		2,109			(17	)		(59	)
Interest expense
Interest on deposits		231			222			212			203		193			9			38
Interest on short-term borrowings		27			18			14			12		13			9			14
Interest on long-term debt		424			434			430			436		442			(10	)		(18	)
Total interest expense		682			674			656			651		648			8			34
Depreciation expense on operating lease assets		389			417			408			434		510			(28	)		(121	)
Net financing revenue (as reported)	$	979		$	976		$	996		$	984	$	951		$	3		$	28
Other revenue
Servicing fees		16			15			17			18		13			1			3
Insurance premiums and service revenue earned		241			241			238			236		230			0			11
Gain on mortgage and automotive loans, net		14			7			-			3		1			7			13
Loss on extinguishment of debt		(1	)		(1	)		-			-		(4	)		(0	)		3
Other gain on investments, net		27			39			52			39		54			(12	)		(27	)
Other income, net of losses		99			91			81			77		82			8			17
Total other revenue		396			392			388			374		376			4			20
Total net revenue		1,375			1,368			1,384			1,358		1,327			7			48
Provision for loan losses		271			267			258			172		220			4			51
Noninterest expense
Compensation and benefits expense		285			250			248			242		252			35			33
Insurance losses and loss adjustment expenses		88			55			69			145		73			33			15
Other operating expenses		405			416			418			386		385			(11	)		20
Total noninterest expense		778			721			735			773		710			57			68
Pre-tax income from continuing operations	$	326		$	380		$	391		$	413	$	397		$	(54	)	$	(71	)
Income tax expense from continuing operations		113			134			130			56		150			(21	)		(37	)
Net income from continuing operations		213			246			261			357		247			(33	)		(34	)
Income / (Loss) from discontinued operations, net of tax		1			2			(52	)		3		3			(1	)		(2	)
Net income	$	214		$	248		$	209		$	360	$	250		$	(34	)	$	(36	)
Core Pre-Tax Income Walk
Net financing revenue (ex. OID) (1)	$	995		$	991		$	1,011		$	998	$	964		$	4		$	32
Total other revenue (ex. OID) (2)		396			392			388			374		380			4			16
Provision for loan losses		271			267			258			172		220			4			51
Total Noninterest Expense		778			721			735			769		706			57			72
Core pre-tax income	$	342		$	395		$	406		$	431	$	419		$	(53	)	$	(76	)
less: Repositioning items (3)		-			-			-			4		7			-			(7	)
less: OID amortization expense		16			15			15			14		15			1			2
Pre-tax income from continuing operations	$	326		$	380		$	391		$	413	$	397		$	(54	)	$	(71	)

(1) Represents a non-GAAP financial measure. Excludes OID

(2) Represents a non-GAAP financial measure. Excludes accelerated OID primarily related to the extinguishment of high-cost legacy debt of $2 million in 1Q 2016

(3) Excludes Repositioning items. Repositioning items are primarily related to the extinguishment of high-cost legacy debt and other strategic activities.

1Q 2017 Preliminary Results 5

ALLY FINANCIAL INC. CONSOLIDATED PERIOD-END BALANCE SHEET

($ in millions)

	QUARTERLY TRENDS															CHANGE VS.
	3/31/2017			12/31/2016			9/30/2016			6/30/2016			3/31/2016			12/31/2016			3/31/2016
Assets
Cash and cash equivalents
Noninterest-bearing	$	1,513		$	1,547		$	1,779		$	1,790		$	1,906		$	(34	)	$	(393	)
Interest-bearing		2,789			4,387			2,510			3,941			3,095			(1,598	)		(306	)
Total cash and cash equivalents		4,302			5,934			4,289			5,731			5,001			(1,632	)		(699	)
Investment securities (1)		21,412			19,765			18,350			18,768			18,298			1,647			3,114
Loans held-for-sale, net		1			-			56			15			39			1			(38	)
Finance receivables and loans, net
Finance receivables and loans, net		119,002			118,944			114,959			112,653			110,876			58			8,126
Allowance for loan losses		(1,155	)		(1,144	)		(1,134	)		(1,089	)		(1,077	)		(11	)		(78	)
Total finance receivables and loans, net		117,847			117,800			113,825			111,564			109,799			47			8,048
Investment in operating leases, net		10,461			11,470			12,689			13,755			14,958			(1,009	)		(4,497	)
Premiums receivables and other insurance assets		1,944			1,905			1,881			1,844			1,828			39			116
Other assets		6,134			6,854			6,307			6,254			6,582			(720	)		(448	)
Total assets	$	162,101		$	163,728		$	157,397		$	157,931		$	156,505		$	(1,627	)	$	5,596
Liabilities
Deposit liabilities
Noninterest-bearing	$	102		$	84		$	101		$	94		$	92		$	18		$	10
Interest-bearing		84,384			78,938			75,643			72,708			70,173			5,446			14,211
Total deposit liabilities		84,486			79,022			75,744			72,802			70,265			5,464			14,221
Short-term borrowings		8,371			12,673			6,434			5,994			5,365			(4,302	)		3,006
Long-term debt		51,061			54,128			56,836			61,040			62,044			(3,067	)		(10,983	)
Interest payable		382			351			462			427			374			31			8
Unearned insurance premiums and service revenue		2,514			2,500			2,493			2,465			2,449			14			65
Accrued expense and other liabilities		1,922			1,737			1,798			1,592			2,185			185			(263	)
Total liabilities	$	148,736		$	150,411		$	143,767		$	144,320		$	142,682		$	(1,675	)	$	6,054
Equity
Common stock and paid-in capital (2)	$	20,661		$	20,809		$	20,960		$	21,106		$	21,087		$	(148	)	$	(426	)
Preferred stock		-			-			-			-			696			-			(696	)
Accumulated deficit		(6,975	)		(7,151	)		(7,361	)		(7,530	)		(7,875	)		176			900
Accumulated other comprehensive (loss) income		(321	)		(341	)		31			35			(85	)		20			(236	)
Total equity		13,365			13,317			13,630			13,611			13,823			48			(458	)
Total liabilities and equity	$	162,101		$	163,728		$	157,397		$	157,931		$	156,505		$	(1,627	)	$	5,596

(1) Includes held-to-maturity securities

(2) Includes Treasury stock

1Q 2017 Preliminary Results 6

ALLY FINANCIAL INC. CONSOLIDATED AVERAGE BALANCE SHEET ⁽¹⁾

($ in millions)

	QUARTERLY TRENDS															CHANGE VS.
	1Q 17			4Q 16			3Q 16			2Q 16			1Q 16			4Q 16			1Q 16
Assets
Interest-bearing cash and cash equivalents	$	2,674		$	2,556		$	2,530		$	2,708		$	2,867		$	118		$	(193	)
Federal funds sold and securities purchased under resale agreements		-			-			-			2			-			-			-
Investment securities		21,298			20,143			18,139			18,190			17,594			1,155			3,704
Loans held-for-sale, net		-			-			1			-			35			-			(35	)
Total finance receivables and loans, net (2)		117,974			116,769			113,294			112,158			111,525			1,205			6,449
Investment in operating leases, net		10,931			12,099			13,232			14,392			15,638			(1,168	)		(4,707	)
Total interest earning assets		152,877			151,567			147,196			147,450			147,659			1,310			5,218
Noninterest-bearing cash and cash equivalents		1,100			1,124			1,369			1,339			1,841			(24	)		(741	)
Other assets		8,013			8,039			8,764			8,755			8,929			(26	)		(916	)
Allowance for loan losses		(1,145	)		(1,139	)		(1,103	)		(1,088	)		(1,060	)		(6	)		(85	)
Total assets	$	160,845		$	159,591		$	156,226		$	156,456		$	157,369		$	1,254		$	3,476
Liabilities
Interest-bearing deposit liabilities	$	82,160		$	76,950		$	74,166		$	71,479		$	68,148		$	5,210		$	14,012
Short-term borrowings		8,223			8,353			5,194			5,535			5,609			(130	)		2,614
Long-term debt (3)		52,549			55,916			58,425			60,758			64,841			(3,367	)		(12,292	)
Total interest-bearing liabilities (3)		142,932			141,219			137,785			137,772			138,598			1,713			4,334
Noninterest-bearing deposit liabilities		93			96			97			91			92			(3	)		1
Other liabilities		4,383			4,442			4,674			4,948			5,053			(59	)		(670	)
Total liabilities	$	147,408		$	145,757		$	142,556		$	142,811		$	143,743		$	1,651		$	3,665
Equity
Total equity	$	13,437		$	13,834		$	13,670		$	13,645		$	13,626		$	(397	)	$	(189	)
Total liabilities and equity	$	160,845		$	159,591		$	156,226		$	156,456		$	157,369		$	1,254		$	3,476

(1) Average balances are calculated using a combination of monthly and daily average methodologies. Periods prior to 4Q 16 may not tie to previous Financial Supplement disclosures due to the current methodology which includes equity investment     

security balances within investment securities, previously included within other assets                     

(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) QTD: includes OID average of $1,240 million in 1Q17, $1,256 million in 4Q16, $1,272 million in 3Q16, $1,286 million in 2Q16 and $1,298 million in 1Q16

1Q 2017 Preliminary Results 7

ALLY FINANCIAL INC. SEGMENT HIGHLIGHTS

($ in millions)

	QUARTERLY TRENDS															CHANGE VS.
	1Q 17			4Q 16			3Q 16			2Q 16			1Q 16			4Q 16			1Q 16
Automotive Finance	$	288		$	298		$	319		$	426		$	337		$	(10	)	$	(49	)
Insurance		40			69			56			(18	)		50			(29	)		(10	)
Dealer Financial Services		328			367			375			408			387			(39	)		(59	)
Mortgage Finance		9			15			8			9			2			(6	)		7
Corporate Finance		25			31			15			14			11			(6	)		14
Corporate and Other (1)		(36	)		(33	)		(7	)		(18	)		(3	)		(3	)		(33	)
Pre-tax income from continuing operations	$	326		$	380		$	391		$	413		$	397		$	(54	)	$	(71	)
OID amortization expense (2)		16			15			15			14			15			1			2
Repositioning items (2)(3)		-			-			-			4			7			-			(7	)
Core pre-tax income (4)	$	342		$	395		$	406		$	431		$	419		$	(53	)	$	(76	)

(1) Corporate and Other primarily consists of activity related to centralized corporate treasury activities such as management of the cash and corporate investment securities and loan portfolios, short- and long-term debt, retail and brokered deposit liabilities, derivative instruments, the amortization of the discount associated with new debt issuances and bond exchanges, and the residual impacts of our corporate FTP and treasury ALM activities. Corporate and Other also includes certain equity investments, the management of our legacy mortgage portfolio, and reclassifications and eliminations between the reportable operating segments. Subsequent to June 1, 2016, TradeKing activity included within the Corporate & Other segment.

(2) OID amortization expense and repositioning items for all periods shown is applied to the pre-tax income of the Corporate and Other segment. Includes accelerated OID expense of $2 million in 1Q 2016.

(3) Repositioning items are primarily related to the extinguishment of high-cost legacy debt and strategic activities

(4) Core pre-tax income is a non-GAAP financial measure that adjusts pre-tax income from continuing operations by excluding (1) original issue discount (OID) amortization expense and (2) repositioning items primarily related to the extinguishment of high-cost legacy debt and strategic activities. Management believes core pre-tax income can help the reader better understand the operating performance of the core businesses and their ability to generate

earnings.

1Q 2017 Preliminary Results 8

ALLY FINANCIAL INC. AUTOMOTIVE FINANCE - CONDENSED FINANCIAL STATEMENTS

($ in millions)

	QUARTERLY TRENDS															CHANGE VS.
Income Statement	1Q 17			4Q 16			3Q 16			2Q 16			1Q 16			4Q 16			1Q 16
Net financing revenue
Consumer	$	924		$	933		$	911		$	877		$	866		$	(9	)	$	58
Commercial		304			287			267			262			252			17			52
Loans held-for-sale		-			-			-			-			-			-			-
Operating leases		543			592			649			701			769			(49	)		(226	)
Other interest income		2			3			3			2			3			(1	)		(1	)
Total financing revenue and other interest income		1,773			1,815			1,830			1,842			1,890			(42	)		(117	)
Interest expense		492			491			489			479			484			1			8
Depreciation expense on operating lease assets:
Depreciation expense on operating lease assets (ex. remarketing)		385			427			470			520			565			(42	)		(180	)
Remarketing losses (gains)		3			(10	)		(62	)		(86	)		(55	)		13			58
Total depreciation expense on operating lease assets		389			417			408			434			510			(28	)		(121	)
Net financing revenue		892			907			933			929			896			(15	)		(4	)
Other revenue
Servicing fees		16			15			17			18			13			1			3
Gain/(loss) on automotive loans, net		24			7			-			5			5			17			19
Other income		61			56			58			53			59			5			2
Total other revenue		101			78			74			77			77			23			24
Total net revenue		993			985			1,007			1,006			973			8			20
Provision for loan losses		268			275			270			170			209			(7	)		59
Noninterest expense
Compensation and benefits		129			118			119			118			126			11			3
Other operating expenses		308			294			299			292			301			14			7
Total noninterest expense		437			412			418			410			427			25			10
Income before income tax expense	$	288		$	298		$	319		$	426		$	337		$	(10	)	$	(49	)
Memo: Net lease revenue
Operating lease revenue	$	543		$	592		$	649		$	701		$	769		$	(49	)	$	(226	)
Depreciation expense on operating lease assets (ex. remarketing)		385			427			470			520			565			(42	)		(180	)
Remarketing losses (gains)		3			(10	)		(62	)		(86	)		(55	)		13			59
Total depreciation expense on operating lease assets		389			417			408			434			510			(28	)		(121	)
Net lease revenue	$	154		$	175		$	241		$	267		$	259		$	(21	)	$	(105	)
Balance Sheet (Period-End)
Cash, trading and investment securities	$	30		$	30		$	30		$	30		$	31		$	-		$	(1	)
Finance receivables and loans, net:
Consumer loans		65,629			65,750			64,750			63,193			62,926			(121	)		2,703
Commercial loans (1)		38,903			38,853			36,043			35,258			34,348			50			4,555
Allowance for loan losses		(999	)		(989	)		(969	)		(919	)		(905	)		(10	)		(94	)
Total finance receivables and loans, net		103,533			103,614			99,824			97,532			96,369			(81	)		7,164
Investment in operating leases, net		10,461			11,470			12,689			13,755			14,958			(1,009	)		(4,497	)
Other assets		1,130			1,233			1,126			1,039			931			(103	)		199
Total assets	$	115,154		$	116,347		$	113,669		$	112,356		$	112,289		$	(1,193	)	$	2,865

(1) Includes intercompany

1Q 2017 Preliminary Results 9

ALLY FINANCIAL INC. AUTOMOTIVE FINANCE - KEY STATISTICS

	QUARTERLY TRENDS											CHANGE VS.
	1Q 17			4Q 16		3Q 16		2Q 16		1Q 16		4Q 16			1Q 16
U.S. Consumer Originations (1) ($ in billions)
Retail standard - new vehicle GM	$	1.5		$	1.9	$	2.0	$	1.9	$	1.9	$	(0.4	)	$	(0.4	)
Retail standard - new vehicle Chrysler		1.0			1.1		1.2		1.2		1.0		(0.0	)		0.0
Retail standard - new vehicle Growth		1.2			1.2		1.3		1.3		1.2		0.1			0.0
Used vehicle		4.2			3.4		3.8		4.0		4.1		0.8			0.1
Lease		0.9			0.7		1.0		0.9		0.8		0.2			0.1
Retail subvented		0.0			0.0		0.1		0.1		0.1		(0.0	)		(0.0	)
Total originations	$	8.9		$	8.2	$	9.3	$	9.4	$	9.0	$	0.6		$	(0.2	)
U.S. Consumer Originations - FICO Score
Super Prime (CB 740+)	$	2.2		$	2.2	$	2.3	$	2.1	$	2.0	$	0.0		$	0.2
Prime (CB 739-660)		3.1			2.9		3.4		3.5		3.2		0.2			(0.1	)
Prime/Near (CB 659-620)		2.1			1.9		2.2		2.3		2.2		0.2			(0.1	)
Non Prime (CB 619-540)		0.8			0.7		0.9		0.9		1.0		0.2			(0.1	)
Sub Prime (CB 539-0)		0.1			0.1		0.1		0.1		0.1		0.0			(0.0	)
Unscored (2)		0.5			0.5		0.5		0.5		0.5		(0.0	)		0.0
Total originations	$	8.9		$	8.2	$	9.3	$	9.4	$	9.0	$	0.6		$	(0.2	)
U.S. Market
Light vehicle sales (SAAR - units in millions)		17.2			18.0		17.5		17.1		17.3		(0.8	)		(0.1	)
Light vehicle sales (quarterly - units in millions)		4.0			4.4		4.5		4.5		4.1		(0.4	)		(0.1	)
GM market share		17.2%			18.8%		17.4%		16.7%		16.8%
Chrysler market share		12.7%			12.0%		12.8%		13.3%		13.5%
U.S. Consumer Penetration
GM		7.4%			8.5%		8.8%		9.1%		9.3%
Chrysler		13.4%			14.0%		14.8%		13.8%		12.5%
U.S. Commercial Outstandings EOP ($ in billions)
Floorplan outstandings, net	$	33.2		$	33.3	$	30.7	$	30.0	$	29.2	$	(0.2	)	$	3.9
Dealer loans and other		5.8			5.5		5.4		5.2		5.1		0.2			0.6
Total Commercial outstandings	$	38.9		$	38.9	$	36.0	$	35.3	$	34.3	$	0.1		$	4.6
U.S. Off-Lease Remarketing
Off-lease vehicles terminated - On-balance sheet (# in units)		77,761			71,737		80,999		76,001		78,820		6,024			(1,059	)
Average (loss) / gain per vehicle	$	(45	)	$	135	$	767	$	1,126	$	700	$	(180	)	$	(745	)
Total (loss) / gains ($ in millions)	$	(3	)	$	10	$	62	$	86	$	55	$	(13	)	$	(59	)

(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) Unscored are primarily Commercial Services Group (“CSG”)

1Q 2017 Preliminary Results 10

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

($ in millions)

	QUARTERLY TRENDS											CHANGE VS.
Income Statement (GAAP View)	1Q 17		4Q 16		3Q 16		2Q 16			1Q 16		4Q 16			1Q 16
Net financing revenue
Interest and dividends on investment securities	$	25	$	26	$	24	$	25		$	24	$	(1	)	$	1
Interest bearing cash		1		2		2		3			2		(1	)		(1	)
Total financing revenue and other interest revenue		26		28		26		28			26		(2	)		-
Interest expense		11		11		12		12			12		-			(1	)
Net financing revenue		15		17		14		16			14		(2	)		1
Other revenue
Insurance premiums and service revenue earned		241		241		238		236			230		-			11
Other gain/(loss) on investments, net		21		17		24		21			22		4			(1	)
Other income, net of losses		2		1		2		2			2		1			-
Total other revenue		264		259		264		259			254		5			10
Total net revenue		279		276		278		275			268		3			11
Noninterest expense
Compensation and benefits expense		19		17		16		17			18		2			1
Insurance losses and loss adjustment expenses		88		55		69		145			73		33			15
Other operating expenses		132		135		137		131			127		(3	)		5
Total noninterest expense		239		207		222		293			218		32			21
Income (loss) from cont. ops before income tax expense	$	40	$	69	$	56	$	(18	)	$	50	$	(29	)	$	(10	)
Memo: Income Statement (Managerial View)
Insurance premiums and other income
Insurance premiums and service revenue earned	$	241	$	241	$	238	$	236		$	230	$	0		$	11
Investment income		35		32		36		34			34		3			1
Other income		3		3		4		5			4		(0	)		(1	)
Total insurance premiums and other income		279		276		278		275			268		3			11
Expense
Insurance losses and loss adjustment expenses		88		55		69		145			73		33			15
Acquisition and underwriting expenses
Compensation and benefit expense		19		17		16		17			18		2			1
Insurance commission expense		99		98		99		97			94		1			5
Other expense		33		37		38		34			33		(4	)		(0	)
Total acquisition and underwriting expense		151		152		153		148			145		(1	)		6
Total expense		239		207		222		293			218		32			21
Income (loss) from cont. ops before income tax expense	$	40	$	69	$	56	$	(18	)	$	50	$	(29	)	$	(10	)
Balance Sheet (Period-End)
Cash, trading and investment securities	$	5,048	$	5,033	$	5,155	$	5,140		$	5,141	$	15		$	(93	)
Premiums receivable and other insurance assets		1,959		1,920		1,894		1,856			1,840		39			119
Other assets		223		219		210		197			213		4			10
Total assets	$	7,230	$	7,172	$	7,259	$	7,193		$	7,194	$	58		$	36
Key Statistics (Continuing Operations)
Total written premiums and revenue	$	240	$	237	$	252	$	237		$	222	$	3		$	18
Loss ratio		35.9%		22.6%		28.8%		60.9%			31.5%
Underwriting expense ratio		62.2%		62.7%		63.8%		61.9%			62.5%
Combined ratio		98.1%		85.3%		92.5%		122.8%			94.0%

1Q 2017 Preliminary Results 11

ALLY FINANCIAL INC. MORTGAGE FINANCE - CONDENSED FINANCIAL STATEMENTS

($ in millions)

	QUARTERLY TRENDS															CHANGE VS.
Income Statement	1Q 17			4Q 16			3Q 16			2Q 16			1Q 16			4Q 16			1Q 16
Net financing revenue
Total financing revenue and other interest income	$	71		$	65		$	64		$	64		$	57		$	6		$	14
Interest expense		37			39			39			38			37			(2	)		-
Net financing revenue		34			26			25			26			20			8			14
Total net revenue		34			26			25			26			20			8			14
Provision for loan losses		1			(8	)		1			-			3			9			(2	)
Noninterest expense
Compensation and benefits expense		5			3			4			3			3			2			2
Other operating expense		19			16			12			14			12			3			7
Total noninterest expense		24			19			16			17			15			5			9
Income from cont. ops before income tax expense	$	9		$	15		$	8		$	9		$	2		$	(6	)	$	7
Balance Sheet (Period-End)
Finance receivables and loans, net:
Consumer loans	$	8,331		$	8,294		$	7,931		$	8,009		$	7,443		$	37		$	888
Allowance for loan losses		(11	)		(11	)		(19	)		(18	)		(18	)		-			7
Total finance receivables and loans, net		8,320			8,283			7,912			7,991			7,425			37			895
Other assets		42			24			21			23			68			18			(26	)
Total assets	$	8,362		$	8,307		$	7,933		$	8,014		$	7,493		$	55		$	869

1Q 2017 Preliminary Results 12

ALLY FINANCIAL INC. CORPORATE FINANCE - CONDENSED FINANCIAL STATEMENTS

($ in millions)

	QUARTERLY TRENDS															CHANGE VS.
Income Statement	1Q 17			4Q 16			3Q 16			2Q 16			1Q 16			4Q 16			1Q 16
Net financing revenue
Total financing revenue and other interest income	$	54		$	54		$	48		$	46		$	44		$	-		$	10
Interest expense		20			20			18			17			16			-			4
Net financing revenue		34			34			30			29			28			-			6
Other income, net of losses		18			12			4			4			6			6			12
Total net revenue		52			46			34			33			34			6			18
Provision for loan losses		6			(2	)		3			3			6			8			-
Noninterest expense
Compensation and benefits expense		14			9			9			10			10			5			4
Other operating expense		7			8			7			6			7			(1	)		-
Total noninterest expense		21			17			16			16			17			4			4
Income from cont. ops before income tax expense	$	25		$	31		$	15		$	14		$	11		$	(6	)	$	14
Balance Sheet (Period-End)
Loans held for sale	$	-		$	-		$	56		$	15		$	39		$	-		$	(39	)
Commercial loans (1)		3,432			3,180			3,182			2,975			2,795			252			637
Allowance for loan losses		(68	)		(62	)		(62	)		(59	)		(56	)		(6	)		(12	)
Total finance receivables and loans, net		3,364			3,118			3,120			2,916			2,739			246			625
Other assets		74			65			56			58			61			9			13
Total assets	$	3,438		$	3,183		$	3,232		$	2,989		$	2,839		$	255		$	599

(1) Includes intercompany loan activity

1Q 2017 Preliminary Results 13

ALLY FINANCIAL INC. CORPORATE AND OTHER - CONDENSED FINANCIAL STATEMENTS

($ in millions)

	QUARTERLY TRENDS															CHANGE VS.
Income Statement	1Q 17			4Q 16			3Q 16			2Q 16			1Q 16			4Q 16			1Q 16
Net financing revenue
Total financing revenue and other interest income	$	126		$	105		$	92		$	89		$	92		$	21		$	34
Interest expense
Original issue discount amortization		16			15			15			14			13			1			4
Other interest expense		106			98			83			91			86			8			19
Total interest expense		122			113			98			105			99			9			23
Net financing revenue (deficit)		4			(8	)		(6	)		(16	)		(7	)		12			11
Other revenue
Loss on extinguishment of debt		(1	)		(1	)		-			-			(4	)		-			3
Other gain on investments, net		6			23			28			18			32			(17	)		(26	)
Other income, net of losses (1)		8			21			18			16			11			(13	)		(3	)
Total other (loss) revenue		13			43			46			34			39			(30	)		(26	)
Total net revenue (deficit)		17			35			40			18			32			(18	)		(15	)
Provision for loan losses		(4	)		2			(16	)		(1	)		2			(6	)		(6	)
Noninterest expense
Compensation and benefits expense		118			103			100			94			95			15			23
Other operating expense (2)		(61	)		(37	)		(37	)		(57	)		(62	)		(24	)		1
Total noninterest expense		57			66			63			37			33			(9	)		24
(Loss) from cont. ops before income tax expense	$	(36	)	$	(33	)	$	(7	)	$	(18	)	$	(3	)	$	(3	)	$	(33	)
Balance Sheet (Period-End)
Cash, trading and investment securities	$	20,636		$	20,636		$	17,454		$	19,329		$	18,127		$	-		$	2,509
Finance receivables and loans, net
Consumer loans		2,640			2,799			2,992			3,163			3,319			(159	)		(679	)
Commercial loans (3)		67			68			61			55			45			(1	)		22
Allowance for loan losses		(77	)		(82	)		(84	)		(93	)		(98	)		5			21
Total finance receivables and loans, net		2,630			2,785			2,969			3,125			3,266			(155	)		(636	)
Other assets		4,651			5,298			4,881			4,925			5,297			(647	)		(646	)
Total assets	$	27,917		$	28,719		$	25,304		$	27,379		$	26,690		$	(802	)	$	1,227
OID Amortization Schedule (4)	2017			2018			2019			2020			2021 and After
Remaining Core OID Amortization (as of 3/31/2017)	$	55		$	86		$	27		$	31			Avg = $52/yr

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

(2) Other operating expenses includes corporate overhead allocated to the other business segments. Amounts of corporate overhead allocated were $212 million for 1Q17, $193 million for 4Q16, $190 million for 3Q16, $186 million for 2Q16, and $202 million for 1Q16 The receiving business segment records the allocation of corporate overhead expense within other operating expenses.

(3) Includes intercompany

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

1Q 2017 Preliminary Results 14

ALLY FINANCIAL INC. CREDIT RELATED INFORMATION

($ in millions)

	QUARTERLY TRENDS										CHANGE VS.
Asset Quality - Consolidated (1)	1Q 17		4Q 16		3Q 16		2Q 16		1Q 16		4Q 16		1Q 16
Ending loan balance	$	119,002	$	118,944	$	114,959	$	112,653	$	110,876	$	58	$	8,126
30+ Accruing DPD	$	1,612	$	2,246	$	1,934	$	1,740	$	1,496	$	(634)	$	116
30+ Accruing DPD %		1.35%		1.89%		1.68%		1.54%		1.35%
Non-performing loans (NPLs)	$	798	$	819	$	753	$	734	$	698	$	(21)	$	99
Net charge-offs (NCOs)	$	253	$	257	$	213	$	152	$	179	$	(4)	$	74
Net charge-off rate (2)		0.86%		0.88%		0.75%		0.54%		0.64%
Provision for loan losses	$	271	$	267	$	258	$	172	$	220	$	4	$	51
Allowance for loan losses (ALLL)	$	1,155	$	1,144	$	1,134	$	1,089	$	1,077	$	11	$	78
ALLL as % of Loans (3) (4)		1.0%		1.0%		1.0%		1.0%		1.0%
ALLL as % of NPLs (3)		145%		140%		150%		148%		154%
ALLL as % of NCOs (3)		114%		111%		133%		179%		150%
US Auto Delinquencies - HFI Retail Contract $‘s (5)
Delinquent contract $	$	1,552	$	2,160	$	1,823	$	1,643	$	1,387	$	(608)	$	165
% of retail contract $ outstanding		2.36%		3.28%		2.81%		2.60%		2.20%
U.S. Auto Annualized Net Charge-Offs - HFI Retail Contract $‘s
Net charge-offs	$	251	$	255	$	219	$	148	$	173	$	(4)	$	79
% of avg. HFI assets (2)		1.54%		1.56%		1.37%		0.94%		1.08%
U.S. Auto Annualized Net Charge-Offs - HFI Commercial Contract $‘s
Net charge-offs	$	0	$	1	$	0	$	0	$	0	$	(1)	$	0
% of avg. HFI assets (2)		0.00%		0.01%		0.00%		0.00%		0.00%

(1) Loans within this table are classified as held-for-investment recorded at amortized 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 recievables and loans excluding loans measured at fair value, conditional repurchase loans and loans held-for-sale during the year for each loan category.

(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) Excludes $34 million of fair value adjustment for loans in hedge accounting relationships in 1Q17, $43 million in 4Q16, $66 million in 3Q16, $88 million in 2Q16 and $87 million in 1Q16.

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

1Q 2017 Preliminary Results 15

ALLY FINANCIAL INC. CREDIT RELATED INFORMATION, CONTINUED

($ in millions)

CONTINUING OPERATIONS

Automotive Finance (1)	QUARTERLY TRENDS										CHANGE VS.
Consumer	1Q 17		4Q 16		3Q 16		2Q 16		1Q 16		4Q 16			1Q 16
Allowance for loan losses	$	941	$	932	$	912	$	862	$	850	$	9		$	91
Total consumer loans (2)	$	65,663	$	65,793	$	64,816	$	63,281	$	63,013	$	(131	)	$	2,649
Coverage ratio (3)		1.4%		1.4%		1.4%		1.4%		1.3%
Commercial
Allowance for loan losses	$	58	$	57	$	57	$	57	$	55	$	1		$	3
Total commercial loans	$	38,903	$	38,853	$	36,036	$	35,251	$	34,325	$	50		$	4,578
Coverage ratio		0.1%		0.1%		0.2%		0.2%		0.2%
Mortgage (1)
Consumer
Mortgage Finance
Allowance for loan losses	$	11	$	11	$	19	$	18	$	18	$	0		$	(7	)
Total consumer loans	$	8,331	$	8,294	$	7,931	$	8,009	$	7,443	$	38		$	888
Coverage ratio		0.1%		0.1%		0.2%		0.2%		0.2%
Mortgage - Legacy
Allowance for loan losses	$	75	$	80	$	81	$	91	$	97	$	(5	)	$	(22	)
Total consumer loans	$	2,606	$	2,756	$	2,926	$	3,075	$	3,232	$	(150	)	$	(626	)
Coverage ratio		2.9%		2.9%		2.8%		2.9%		3.0%
Total Mortgage
Allowance for loan losses	$	86	$	91	$	100	$	109	$	115	$	(5	)	$	(28	)
Total consumer loans	$	10,937	$	11,050	$	10,857	$	11,084	$	10,675	$	(113	)	$	262
Coverage ratio		0.8%		0.8%		0.9%		1.0%		1.1%
Corporate Finance (1)
Allowance for loan losses	$	68	$	62	$	62	$	59	$	56	$	6		$	12
Total commercial loans	$	3,432	$	3,180	$	3,182	$	2,976	$	2,796	$	253		$	637
Coverage ratio		2.0%		2.0%		2.0%		2.0%		2.0%
Corporate and Other (1)
Allowance for loan losses	$	2	$	2	$	3	$	2	$	1	$	(0	)	$	0
Total commercial loans	$	67	$	68	$	68	$	61	$	67	$	(1	)	$	(1	)
Coverage ratio		2.6%		2.6%		3.7%		2.6%		2.1%

(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 $34 million of fair value adjustment for loans in hedge accounting relationships in 1Q17, $43 million in 4Q16, $66 million in 3Q16, $88 million in 2Q16 and $87 million in 1Q16.

(3) Excludes $34 million of fair value adjustment for loans in hedge accounting relationships in 1Q17, $43 million in 4Q16, $66 million in 3Q16, $88 million in 2Q16 and $87 million in 1Q16.

1Q 2017 Preliminary Results 16

ALLY FINANCIAL INC. CAPITAL

($ in billions)

	QUARTERLY TRENDS															CHANGE VS.
	Basel III Transition
Capital (1)	1Q 17			4Q 16			3Q 16			2Q 16			1Q 16			4Q 16			1Q 16
Risk-weighted assets	$	137.5		$	138.5		$	135.5		$	133.8		$	133.6		$	(1.0	)	$	3.9
Common Equity Tier 1 (CET1) capital ratio (2)		9.4%			9.4%			9.5%			9.6%			9.5%
Tier 1 capital ratio		11.1%			10.9%			11.1%			11.2%			11.6%
Total capital ratio		12.7%			12.6%			12.8%			12.8%			13.0%
Tangible common equity / Tangible assets (3)(4)		8.1%			8.0%			8.5%			8.5%			8.4%
Tangible common equity / Risk-weighted assets (3)		9.5%			9.4%			9.8%			10.0%			9.8%
Shareholders’ equity	$	13.4		$	13.3		$	13.6		$	13.6		$	13.8		$	0.1		$	(0.4	)
less:    Preferred equity		-			-			-			-			(0.7	)		-			0.7
Disallowed DTA		(0.5	)		(0.4	)		(0.4	)		(0.5	)		(0.5	)		(0.1	)		-
Certain AOCI items and other adjustments		0.1			0.1			(0.3	)		(0.3	)		-			-			0.1
Common Equity Tier 1 capital (2)	$	12.9		$	13.0		$	12.9		$	12.8		$	12.7		$	(0.1	)	$	0.2
Common Equity Tier 1 capital	$	12.9		$	13.0		$	12.9		$	12.8		$	12.7		$	(0.1	)	$	0.2
add:    Preferred equity		-			-			-			-			0.7			-			(0.7	)
Trust preferred securities		2.5			2.5			2.5			2.5			2.5			0.0			-
less:    Other adjustments		(0.2	)		(0.3	)		(0.3	)		(0.4	)		(0.4	)		0.1			0.2
Tier 1 capital	$	15.2		$	15.1		$	15.1		$	15.0		$	15.5		$	0.1		$	(0.3	)
Tier 1 capital	$	15.2		$	15.1		$	15.1		$	15.0		$	15.5		$	0.1		$	(0.3	)
add:    Qualifying subordinated debt and redeemable preferred stock		1.1		$	1.2			1.2			1.2			0.9			(0.1	)		0.2
Allowance for loan and lease losses includible in Tier 2 capital and other adjustments		1.1		$	1.1			1.1			1.0			1.0			(0.0	)		0.1
Total capital	$	17.5		$	17.4		$	17.3		$	17.2		$	17.4		$	0.1		$	0.1
Total shareholders’ equity	$	13.4		$	13.3		$	13.6		$	13.6		$	13.8		$	0.1		$	(0.4	)
less:    Preferred equity		-			-			-			-			(0.7	)		-			0.7
Goodwill and intangible assets, net of deferred tax liabilities		(0.3	)		(0.3	)		(0.3	)		(0.3	)		-			0.0			(0.3	)
Tangible common equity (3)	$	13.1		$	13.0		$	13.3		$	13.3		$	13.1		$	0.1		$	-
Total assets	$	162.1		$	163.7		$	157.4		$	157.9		$	156.5		$	(1.6	)	$	5.6
less:    Goodwill and intangible assets, net of deferred tax liabilities		(0.3	)		(0.3	)		(0.3	)		(0.3	)		-			0.0			(0.3	)
Tangible assets (4)	$	161.8		$	163.4		$	157.1		$	157.7		$	156.5		$	(1.6	)	$	5.3
Regulatory Capital - Basel III transition to fully phased-in
Numerator
Common equity tier 1 capital (transition)	$	12.9		$	13.0		$	12.9		$	12.8		$	12.7
DTAs arising from NOL and tax credit carryforwards phased-in during transition		(0.1	)		(0.3	)		(0.3	)		(0.3	)		(0.3	)
Intangibles phased-in during transition		(0.0	)		(0.0	)		(0.0	)		(0.0	)		-
Common equity tier 1 capital (fully phased-in)	$	12.8		$	12.7		$	12.6		$	12.5		$	12.3
Denominator
Risk-weighted assets (transition)	$	137.5		$	138.5		$	135.5		$	133.8		$	133.6
DTAs arising from temporary differences that could not be realized through NOL , net of VA and net of DTLs phased-in during transition		0.4			0.5			0.5			0.5			0.4
Intangibles phased in during transition		0.0			0.0			0.0			0.0			-
Risk-weighted assets (fully phased-in)	$	137.9		$	139.0		$	136.0		$	134.2		$	134.0
Metric
Common equity tier 1 (transition)		9.4%			9.4%			9.5%			9.6%			9.5%
Common equity tier 1 (fully phased-in) (2)		9.3%			9.1%			9.3%			9.3%			9.2%

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 capital (“CET1”) fully phased-in: Under the Basel III regulatory framework as adopted in the United States, banking organizations like the company are required to comply with a minimum ratio of common equity tier 1 capital to risk-weighted assets (CET1 Capital Ratio). Common equity tier 1 capital generally consists of common stock (plus any related surplus and net of any treasury stock), retained earnings, accumulated other comprehensive income, and minority interests in the common equity of consolidated subsidiaries, subject to specified conditions and adjustments. The obligation to comply with the minimum CET1 Capital Ratio is subject to ongoing transition periods and other provisions under Basel III. Management believes that both the transitional CET1 Capital Ratio and the fully phased-in CET1 Capital Ratio are helpful to readers in evaluating the company’s capital utilization and adequacy in absolute terms and relative to its peers. The fully phased-in CET1 Capital Ratio is a non-GAAP financial measure that is reconciled to the transitional CET1 Capital Ratio above.

(3) Represents a non-GAAP financial measure. We define tangible common equity as common stockholders’ equity less goodwill and identifiable intangible assets, 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.

(4) Represents a non-GAAP financial measure. We define tangible assets as total assets less goodwill and intangible assets, net of deferred tax liabilities.

1Q 2017 Preliminary Results 17

ALLY FINANCIAL INC. LIQUIDITY

($ in billions)

	3/31/2017					12/31/2016					3/31/2016
Available Liquidity	Parent (1)		Ally Bank			Parent (1)		Ally Bank			Parent (1)		Ally Bank
Cash and cash equivalents (2)	$	1.8	$	2.1		$	1.2	$	4.8		$	2.7	$	2.1
Highly liquid securities (3)		2.0		11.1			2.2		7.1			1.8		6.8
Current committed unused capacity		0.7		0.4			3.2		0.4			0.5		1.8
Subtotal	$	4.5	$	13.5		$	6.6	$	12.2		$	5.0	$	10.7
Ally Bank intercompany loan (4)		0.4		(0.4	)		1.1		(1.1	)		0.8		(0.8	)
Total Current Available Liquidity	$	4.9	$	13.1		$	7.7	$	11.1		$	5.7	$	9.9
Unsecured Long-Term Debt Maturity Profile	2017		2018			2019		2020			2021		2022 and after
Consolidated remaining maturities (5)	$	1.8	$	3.7		$	1.7	$	2.2		$	0.6	$	8.5

(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 2017 Preliminary Results 18

ALLY FINANCIAL INC. NET INTEREST MARGIN AND DEPOSITS

($ in millions)
	QUARTERLY TRENDS										CHANGE VS.
Average Balance Details	1Q 17		4Q 16		3Q 16		2Q 16		1Q 16		4Q 16			1Q 16
Retail Auto Loan	$	65,579	$	65,209	$	64,223	$	63,621	$	64,566	$	370		$	1,013
Auto Lease (net of dep)		10,931		12,099		13,232		14,392		15,638		(1,168	)		(4,707	)
Commercial Auto		38,019		37,386		34,905		34,800		34,026		633			3,993
Corporate Finance		3,394		3,273		3,115		2,973		2,781		121			613
Mortgage		10,982		10,901		11,052		10,764		10,152		81			830
Cash, Securities and Other		23,972		22,699		20,669		20,900		20,496		1,273			3,476
Total Earning Assets	$	152,877	$	151,567	$	147,196	$	147,450	$	147,659	$	1,310		$	5,218
Interest Revenue		1,661		1,650		1,652		1,635		1,599		11			62
Unsecured Debt (4)	$	20,957	$	21,346	$	21,714	$	22,698	$	22,452	$	(389	)	$	(1,495	)
Secured Debt		28,002		29,788		32,343		34,019		37,587		(1,786	)		(9,585	)
Deposits (2)		82,253		77,046		74,263		71,570		68,240		5,207			14,013
Other Borrowings (3)		13,053		14,391		10,834		10,862		11,709		(1,338	)		1,344
Total Funding Sources (1)	$	144,265	$	142,571	$	139,154	$	139,149	$	139,988	$	1,694		$	4,277
Interest Expense		666		659		641		637		635		7			31
Net Financing Revenue	$	995	$	991	$	1,011	$	998	$	964	$	4		$	31
Net Interest Margin (yield details)
Retail Auto Loan		5.66%		5.64%		5.58%		5.47%		5.31%
Auto Lease (net of dep)		5.71%		5.75%		7.25%		7.46%		6.66%
Commercial Auto		3.24%		3.05%		3.03%		3.03%		2.98%
Corporate Finance		6.45%		6.56%		6.39%		6.36%		6.51%
Mortgage		3.47%		3.25%		3.24%		3.36%		3.37%
Cash, Securities and Other		2.35%		2.10%		2.00%		1.98%		2.06%
Total Earning Assets		4.41%		4.33%		4.46%		4.46%		4.36%
Unsecured Debt		5.07%		4.99%		4.87%		4.80%		4.89%
Secured Debt		1.94%		1.74%		1.62%		1.56%		1.48%
Deposits		1.14%		1.15%		1.14%		1.14%		1.14%
Other Borrowings (3)		1.21%		1.08%		1.14%		1.15%		1.06%
Total Funding Sources (1)		1.87%		1.84%		1.83%		1.84%		1.82%
NIM (as reported)		2.60%		2.56%		2.69%		2.68%		2.59%
NIM (excluding OID) (1)		2.64%		2.60%		2.73%		2.72%		2.63%
Key Deposit Statistics
Average retail CD maturity (months)		29.8		30.7		31.1		31.4		31.6		(0.9	)		(1.8	)
Average retail deposit rate		1.09%		1.10%		1.10%		1.11%		1.11%
Ally Financial Deposits Levels
Ally Bank retail	$	69,971	$	66,584	$	63,880	$	61,239	$	58,977	$	3,387		$	10,994
Ally Bank brokered		14,327		12,187		11,570		11,269		10,979		2,140			3,348
Other		188		251		294		294		309		(63	)		(121	)
Total deposits	$	84,486	$	79,022	$	75,744	$	72,802	$	70,265	$	5,464		$	14,221
Ally Bank Deposit Mix
Retail CD		26.1%		27.7%		27.9%		29.0%		30.1%
MMA/OSA/Checking		56.7%		56.8%		56.8%		55.4%		54.2%
Brokered		17.2%		15.5%		15.3%		15.5%		15.7%

(1) Excludes OID

(2) Includes brokered deposits. Includes average noninterest-bearing deposits of $93 million in 1Q17, $96 million in 4Q16, $97 million in 3Q16, $91 million in 2Q16, $92 million in 1Q16.

(3) Includes Demand Notes, FHLB and Repurchase Agreements

(4) Includes private unsecured committed credit facility

1Q 2017 Preliminary Results 19

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

($ in billions)

	HISTORICAL QUARTERLY TRENDS
Mortgage Finance HFI Portfolio	1Q 17		4Q 16		3Q 16		2Q 16		1Q 16
Loan Value
Gross carry value	$	8.3	$	8.3	$	7.9	$	8.0	$	7.4
Net carry value	$	8.3	$	8.3	$	7.9	$	8.0	$	7.4
Estimated Pool Characteristics
% Second lien		0.0%		0.0%		0.0%		0.0%		0.0%
% Interest only		0.3%		0.3%		0.3%		0.4%		0.5%
% 30+ Day delinquent		0.5%		0.6%		0.9%		0.8%		1.0%
% Low/No documentation		0.0%		0.0%		0.0%		0.0%		0.0%
% Non-primary residence		3.7%		3.8%		3.4%		3.4%		3.5%
Refreshed FICO		770		772		772		771		770
Wtd. Avg. LTV/CLTV (1)		58.8%		59.7%		60.6%		61.1%		60.8%
Corporate Other Legacy Mortgage HFI Portfolio
Loan Value
Gross carry value	$	2.6	$	2.8	$	2.9	$	3.1	$	3.2
Net carry value	$	2.5	$	2.7	$	2.8	$	3.0	$	3.1
Estimated Pool Characteristics
% Second lien		17.4%		17.7%		18.1%		18.4%		18.6%
% Interest only		5.0%		6.8%		8.7%		12.9%		14.0%
% 30+ Day delinquent		4.0%		4.4%		4.1%		4.0%		4.1%
% Low/No documentation		22.5%		22.6%		22.8%		22.9%		22.7%
% Non-primary residence		7.4%		7.4%		7.4%		7.4%		7.4%
Refreshed FICO		728		730		730		728		728
Wtd. Avg. LTV/CLTV (1)		73.3%		74.1%		76.6%		77.8%		77.6%

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

1Q 2017 Preliminary Results 20

ALLY FINANCIAL INC. EARNINGS PER SHARE RELATED INFORMATION

($ in millions, shares in thousands)

	QUARTERLY TRENDS															CHANGE VS.
Earnings Per Share Data	1Q 17			4Q 16			3Q 16			2Q 16			1Q 16			4Q 16			1Q 16
Net income (loss)	$	214		$	248		$	209		$	360		$	250		$	(34	)	$	(36	)
less: Preferred stock dividends		-			-			-			15			15			-			(15	)
GAAP net income available to common shareholders	$	214		$	248		$	209		$	345		$	235		$	(34	)	$	(21	)
Weighted-average shares outstanding - basic (1)		465,961			472,502			482,393			485,370			484,233			(6,541	)		(18,272	)
Weighted-average shares outstanding - diluted (1)		466,829			474,505			483,575			486,074			484,654			(7,675	)		(17,825	)
Issued shares outstanding (period-end)		462,193			467,000			475,470			483,753			483,475			(4,807	)		(21,282	)
Net income (loss) per share - basic (1)	$	0.46		$	0.53		$	0.43		$	0.71		$	0.49		$	(0.07	)	$	(0.03	)
Net income (loss) per share - diluted (1)	$	0.46		$	0.52		$	0.43		$	0.71		$	0.49		$	(0.06	)	$	(0.03	)
Adjusted Earnings per Share (“Adjusted EPS”)
Numerator
GAAP net income available to common shareholders	$	214		$	248		$	209		$	345		$	235		$	(34	)	$	(21	)
less: Disc Ops, net of tax		(1	)		(2	)		52			(3	)		(3	)		1			2
add back: Original issue discount expense (“OID expense”)		16			15			15			14			15			1			2
add back: Repositioning Items		-			-			-			4			7			-			(7	)
less: OID & Repo. Tax (tax rate 35% starting 1Q16; 34% prior)		(6	)		(5	)		(5	)		(6	)		(8	)		(0	)		2
Significant Discrete Tax Items		-			-			-			(91	)		7			-			(7	)
Series A Actions		-			-			-			1			-			-			-
Core net income available to common shareholders (2)	$	224		$	256		$	271		$	263		$	253		$	(32	)	$	(29	)
Denominator
Weighted-Average Shares Outstanding - (Diluted, thousands)		466,829			474,505			483,575			486,074			484,654
Adjusted EPS (3)	$	0.48		$	0.54		$	0.56		$	0.54		$	0.52		$	(0.06	)	$	(0.04	)

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

(2) Core net income available to common is a non-GAAP financial measure that serves as the numerator in the calculations of Adjusted EPS and Core ROTCE and that, like those measures, is believed by management to help the reader better understand the operating performance of the core businesses and their ability to generate earnings. Core net income available to common adjusts GAAP net income available to common for discontinued operations, OID expense, repositioning items primarily related to the extinguishment of high-cost legacy debt and strategic activities, certain discrete tax items including tax settlements and preferred stock capital actions.

(3) Adjusted earnings per share (Adjusted EPS) is a non-GAAP financial measure that adjusts GAAP EPS for revenue and expense items that are typically strategic in nature or that management otherwise does not view as reflecting the operating performance of the company. Management believes Adjusted EPS can help the reader better understand the operating performance of the core businesses and their ability to generate earnings. In the numerator of Adjusted EPS, GAAP net income available to common is adjusted for the following items: (a) excludes discontinued operations, net of tax, as Ally is primarily a domestic company and sales of international businesses and other discontinued operations in the past have significantly impacted GAAP EPS, (b) adds back the tax-effected non-cash expense bond exchange original issue discount (OID), (c) adds back tax-effected repositioning items primarily related to the extinguishment of high-cost legacy debt and strategic activities, (d) excludes certain discrete tax items that do not relate to the operating performance of the core businesses, and (e) adjusts for preferred stock capital actions (e.g., Series A and Series G) that have been taken by the company to normalize its capital structure.

1Q 2017 Preliminary Results 21

ALLY FINANCIAL INC. ADJUSTED TANGIBLE BOOK PER SHARE RELATED INFORMATION

($ in billions, shares in thousands)

	QUARTERLY TRENDS															CHANGE VS.
Adjusted Tangible Book Value Per Share (“Adjusted TBVPS”) Information	1Q 17			4Q 16			3Q 16			2Q 16			1Q 16			4Q 16			1Q 16
Numerator
GAAP shareholder’s equity	$	13.4		$	13.3		$	13.6		$	13.6		$	13.8		$	0.0		$	(0.5	)
less: Preferred equity		-			-			-			-			(0.7	)		-			0.7
GAAP Common shareholder’s equity		13.4			13.3			13.6			13.6			13.1			0.0			0.2
less: Goodwill and identifiable intangibles, net of DTLs		(0.3	)		(0.3	)		(0.3	)		(0.3	)		(0.0	)		0.0			(0.3	)
Tangible common equity		13.1			13.0			13.3			13.3			13.1			0.1			(0.0	)
less: Tax-effected bond OID (tax rate 35% starting 1Q16; 34% prior)		(0.8	)		(0.8	)		(0.8	)		(0.8	)		(0.8	)		0.0			0.0
less: Series G discount		-			-			-			-			-			-			-
Adjusted tangible book value	$	12.3		$	12.2		$	12.5		$	12.5		$	12.3		$	0.1		$	0.0
Denominator
Issued shares outstanding (period-end, thousands)		462,193			467,000			475,470			483,753			483,475
GAAP shareholder’s equity per share	$	28.9		$	28.5		$	28.7		$	28.1		$	28.6		$	0.4		$	0.3
less: Preferred equity per share		-			-			-			-			(1.4	)		-			1.4
GAAP Common shareholder’s equity per share		28.9			28.5			28.7			28.1			27.2			0.4			1.8
less: Goodwill and identifiable intangibles, net of DTLs per share		(0.6	)		(0.6	)		(0.6	)		(0.6	)		(0.1	)		(0.0	)		(0.6	)
Tangible common equity per share		28.3			27.9			28.0			27.6			27.1			0.4			1.2
less: Tax-effected bond OID (tax rate 35% starting 1Q16; 34% prior)		(1.7	)		(1.7	)		(1.7	)		(1.7	)		(1.7	)		0.0			0.0
less: Series G discount per share		-			-			-			-			-			-			-
Adjusted tangible book value per share (1)	$	26.6		$	26.2		$	26.3		$	25.9		$	25.4		$	0.4		$	1.2

(1) Adjusted tangible book value per share (Adjusted TBVPS) is a non-GAAP financial measure that reflects the book value of equity available to shareholders even if original issue discount (OID) expense were accelerated immediately through the financial statements. As a result, management believes Adjusted TBVPS provides the reader with an assessment of value that is more conservative than GAAP common shareholder’s equity per share. Adjusted TBVPS generally adjusts common equity for (a) goodwill and identifiable intangibles, net of DTLs, (b) tax-effected bond OID to reduce tangible common equity in the event the corresponding discounted bonds are redeemed/tendered and (c) Series G discount which reduces tangible common equity as the company has normalized its capital structure.

1Q 2017 Preliminary Results 22

ALLY FINANCIAL INC. CORE ROTCE RELATED INFORMATION

($ in millions) unless noted otherwise

	QUARTERLY TRENDS															CHANGE VS.
Core Return on Tangible Common Equity (“Core ROTCE”)	1Q 17			4Q 16			3Q 16			2Q 16			1Q 16			4Q 16			1Q 16
Numerator
GAAP net income available to common shareholders	$	214		$	248		$	209		$	345		$	235		$	(34	)	$	(21	)
less: Disc Ops, net of tax		(1	)		(2	)		52			(3	)		(3	)		1			2
add back: Original issue discount expense (“OID expense”)		16			15			15			14			15			1			2
add back: Repositioning Items		-			-			-			4			7			-			(7	)
less: OID & Repo. Tax (tax rate 35% starting 1Q16; 34% prior)		(6	)		(5	)		(5	)		(6	)		(8	)		(0	)		2
Significant Discrete Tax Items & Other		-			-			-			(91	)		7			-			(7	)
Series G Actions		-			-			-			-			-			-			-
Series A Actions		-			-			-			1			-			-			-
Core net income available to common shareholders (1)	$	224		$	256		$	271		$	263		$	253		$	(32	)	$	(29	)
Denominator (2-period average, $ billions)
GAAP shareholder’s equity	$	13.3		$	13.5		$	13.6		$	13.7		$	13.6		$	(0.1	)	$	(0.3	)
less: Preferred equity		-			-			-			0.3			0.7			-			(0.7	)
less: Goodwill & identifiable intangibles, net of deferred tax liabilities (“DTLs”)		(0.3	)		(0.3	)		0.3			0.1			0.0			0.0			(0.3	)
Tangible common equity	$	13.0		$	13.2		$	13.3		$	13.2		$	12.9		$	(0.1	)	$	0.1
less: Unamortized original issue discount (“OID discount”)		1.2			1.3			1.3			1.3			1.3			(0.0	)		(0.1	)
less: Net deferred tax asset (“DTA”)		1.0			1.0			1.0			1.1			1.2			(0.0	)		(0.3	)
Normalized common equity (2)	$	10.8		$	10.9		$	11.0		$	10.8		$	10.4		$	(0.1	)	$	0.5
Core ROTCE (3)		8.2%			9.4%			9.8%			9.7%			9.8%

(1) Core net income available to common is a non-GAAP financial measure that serves as the numerator in the calculations of Adjusted EPS and Core ROTCE and that, like those measures, is believed by management to help the reader better understand the operating performance of the core businesses and their ability to generate earnings. Core net income available to common adjusts GAAP net income available to common for discontinued operations, OID expense, repositioning items primarily related to the extinguishment of high-cost legacy debt and strategic activities, certain discrete tax items including tax settlements and preferred stock capital actions.

(2) Normalized common equity calculated using 2 period average

(3) Core return on tangible common equity (Core ROTCE) is a non-GAAP financial measure that management believes is helpful for readers to better understand the ongoing ability of the company to generate returns on its equity base that supports core operations. As of 1Q 2016, Ally’s Core net income available to common for purposes of calculating Core ROTCE is based on the actual effective tax rate for the period adjusted for any discrete tax items including tax settlements, which aligns with the methodology used calculating adjusted earnings per share.

(a) In the numerator of Core ROTCE, GAAP net income available to common is adjusted for discontinued operations net of tax, tax-effected OID expense, tax-effected repositioning items primarily related to the extinguishment of high-cost legacy debt and strategic activities, certain discrete tax items and preferred stock capital actions.

(b) In the denominator, GAAP shareholder’s equity is adjusted for preferred equity and goodwill and identifiable intangibles net of DTL, unamortized OID, and net DTA.

1Q 2017 Preliminary Results 23

ALLY FINANCIAL INC. ADJUSTED EFFICIENCY RATIO RELATED INFORMATION

($ in millions)
	QUARTERLY TRENDS															CHANGE VS.
Adjusted Efficiency Ratio Calculation	1Q 17			4Q 16			3Q 16			2Q 16			1Q 16			4Q 16		1Q 16
Numerator
Total noninterest expense	$	778		$	721		$	735		$	773		$	710		$	57	$	68
less: Rep and warrant expense		(0	)		(0	)		(2	)		(3	)		(1	)		0		1
less: Insurance expense		239			207			222			293			218			32		21
less: Repositioning items		-			-			-			4			4			-		(4	)
Adjusted noninterest expense	$	539		$	514		$	515		$	479		$	488		$	25	$	51
Denominator ($ millions)
Total net revenue	$	1,375		$	1,368		$	1,384		$	1,358		$	1,327		$	7	$	48
add: Original issue discount		16			15			15			14			15			1		2
add: Repositioning items		-			-			-			-			3			-		(3	)
less: Insurance revenue		279			276			278			275			268			3		11
Adjusted net revenue	$	1,112		$	1,107		$	1,121		$	1,097		$	1,076		$	5	$	36
Adjusted Efficiency Ratio (1)		48.5%			46.4%			45.9%			43.7%			45.4%

(1) Adjusted efficiency ratio is a non-GAAP financial measure that management believes is helpful to readers in comparing the efficiency of its core banking and lending businesses with those of its peers. In the numerator of Adjusted efficiency ratio, total noninterest expense is adjusted for Insurance segment expense, repositioning items primarily related to strategic activities and rep and warrant expense. In the denominator, total net revenue is adjusted for Insurance segment revenue, repositioning items primarily related to the extinguishment of high-cost legacy debt and original issue discount (OID). See page 11 for the combined ratio for the Insurance segment which management uses as a primary measure of underwriting profitability for the Insurance business.

1Q 2017 Preliminary Results 24