EX-99.3 4 d920848dex993.htm EX-99.3 EX-99.3

Exhibit 99.3

 

LOGO

SECOND QUARTER 2020

FINANCIAL SUPPLEMENT


ALLY FINANCIAL INC.

FORWARD-LOOKING STATEMENTS AND ADDITIONAL INFORMATION

   LOGO

 

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 statements about future effects of COVID-19 and our ability to navigate them, the outlook for financial and operating metrics and performance, and future capital allocation and actions. 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, 2019, 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 U.S. 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.

Unless the context otherwise requires, the following definitions apply. The term “loans” means the following consumer and commercial products associated with our direct and indirect financing activities: loans, retail installment sales contracts, lines of credit, and other financing products excluding operating leases. The term “operating leases” means consumer- and commercial-vehicle lease agreements where Ally is the lessor and the lessee is generally not obligated to acquire ownership of the vehicle at lease-end or compensate Ally for the vehicle’s residual value. The terms “lend,” “finance,” and “originate” mean our direct extension or origination of loans, our purchase or acquisition of loans, or our purchase of operating leases, as applicable. The term “consumer” means all consumer products associated with our loan and operating-lease activities and all commercial retail installment sales contracts. The term “commercial” means all commercial products associated with our loan activities, other than commercial retail installment sales contracts.

 

2Q 2020 Preliminary Results    2


ALLY FINANCIAL INC.

TABLE OF CONTENTS

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     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 Portfolios

     20  

Earnings Per Share Related Information

     21  

Adjusted Tangible Book Value Per Share Related Information

     22  

Core ROTCE Related Information

     23  

Adjusted Efficiency Ratio Related Information

     24  

 

2Q 2020 Preliminary Results    3


ALLY FINANCIAL INC.

CONSOLIDATED FINANCIAL HIGHLIGHTS

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($ in millions, shares in thousands)

                                                                                                                                                         
     QUARTERLY TRENDS   CHANGE VS.

Selected Income Statement Data

   2Q 20   1Q 20   4Q 19   3Q 19   2Q 19   1Q 20   2Q 19

Net financing revenue (ex. Core OID) (1)

     $ 1,063       $ 1,154       $ 1,164       $ 1,195       $ 1,164       $ (92     $ (101

Core OID

     (9     (8     (8     (7     (7     (0     (2

Net financing revenue (as reported)

     1,054       1,146       1,156       1,188       1,157       (92     (103

Other revenue (ex. change in the fair value of equity securities) (2)

     465       451       458       424       393       14       72  

Change in the fair value of equity securities (3)

     90       (185     29       (11     2       275       88  

Other revenue (as reported)

     555       266       487       413       395       289       160  

Provision for credit losses

     287       903       276       263       177       (616     110  

Total noninterest expense (4)

     985       920       880       838       881       65       104  
  

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Pre-tax income (loss) from continuing operations

     337       (411     487       500       494       748       (157

Income tax expense / (benefit)

     95       (92     106       119       (90     187       185  

(Loss) / income from discontinued operations, net of tax

     (1     -       (3     -       (2     (1     1  
  

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income / (loss) attributable to common shareholders

     $ 241       $ (319     $ 378       $ 381       $ 582       $ 560       $ (341)  

Selected Balance Sheet Data (Period-End)

              

Total assets

     $ 184,061       $ 182,527       $ 180,644       $ 181,485       $ 180,448       $ 1,534       $ 3,613  

Consumer loans

     90,365       90,066       89,924       90,081       90,698       299       (333

Commercial loans

     27,869       38,073       38,307       38,528       38,512       (10,204     (10,643

Allowance for loan losses

     (3,354     (3,245     (1,263     (1,277     (1,282     (109     (2,072

Deposits

     131,036       122,324       120,752       119,230       116,325       8,712       14,711  

Total equity

     13,826       13,519       14,416       14,450       14,316       307       (490

Common Share Count

              

Weighted average basic (5)

     375,051       375,723       380,793       390,205       398,100       (672     (23,048

Weighted average diluted (5)

     375,762       375,723       383,391       392,604       399,916       39       (24,154

Issued shares outstanding (period-end)

     373,837       373,155       374,332       383,523       392,775       682       (18,938

Per Common Share Data

              

Earnings per share (basic) (5)

     $ 0.64       $ (0.85     $ 0.99       $ 0.98       $ 1.46       $ 1.49       $ (0.82

Earnings per share (diluted) (5)

     0.64       (0.85     0.99       0.97       1.46       1.49       (0.81

Adjusted earnings per share (6)

     0.61       (0.44     0.95       1.01       0.97       1.05       (0.36

Book value per share

     37.0       36.2       38.5       37.7       36.4       0.8       0.5  

Tangible book value per share (7)

     35.9       35.0       37.3       37.0       35.7       0.9       0.2  

Adjusted tangible book value per share (7)

     33.7       32.8       35.1       34.7       33.6       0.9       0.2  

Select Financial Ratios

              

Net interest margin (as reported)

     2.40%       2.66%       2.64%       2.70%       2.66%      

Net interest margin (ex. Core OID) (8)

     2.42%       2.68%       2.66%       2.72%       2.67%      

Cost of funds

     2.16%       2.43%       2.55%       2.66%       2.74%      

Cost of funds (ex. Core OID) (8)

     2.13%       2.39%       2.51%       2.62%       2.70%      

Efficiency Ratio (9)

     61.2%       65.2%       53.6%       52.3%       56.8%      

Adjusted efficiency ratio (8)(9)

     52.5%       52.3%       49.4%       45.3%       46.1%      

Return on average assets (10)

     0.5%       -0.7%       0.8%       0.8%       1.3%      

Return on average total equity (10)

     7.1%       -9.1%       10.5%       10.6%       16.6%      

Return on average tangible common equity (10)

     7.3%       -9.4%       10.7%       10.8%       17.0%      

Core ROTCE (11)

     7.6%       -5.4%       11.2%       12.3%       12.4%      

Capital Ratios (12)

              

Common Equity Tier 1 (CET1) capital ratio

     10.1%       9.3%       9.5%       9.6%       9.5%      

Tier 1 capital ratio

     11.9%       10.9%       11.2%       11.2%       11.2%      

Total capital ratio

     13.8%       12.8%       12.8%       12.8%       12.7%      

Tier 1 leverage ratio

     8.9%       8.9%       9.1%       9.1%       9.0%      

 

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

(2) Represents a non-GAAP financial measure. Adjusted for change in the fair value of equity securities due to the implementation of ASU 2016-01, which requires change in the fair value of equity securities to be recognized in current period net income as compared to periods prior to 1/1/2018 in which such adjustments were recognized through other comprehensive income, a component of equity. For Non-GAAP calculation methodology and details see page 21.

(3) Change in fair value of equity securities impacts the Insurance and Corporate Finance segments. Excludes equity fair value adjustments related to ASU 2016-01, which requires change in the fair value of equity securities to be recognized in current period net income as compared to periods prior to 1/1/2018 in which such adjustments were recognized through other comprehensive income, a component of equity.

(4) Including but not limited to employee related expenses, commissions and provision for losses and loss adjustment expense related to the insurance business, information technology expenses, servicing expenses, facilities expenses, marketing expenses, and other professional and legal expenses.

(5) Due to antidilutive effect of the net loss from pre-tax loss from continuing operations attributable to common shareholders for the first quarter 2020, basic weighted average common shares outstanding were used to calculate diluted earnings per share.

(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. Excludes Core OID. For more details refer to page 21.

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

(10) Return metrics are annualized.

(11) Return metrics are annualized. Represents a non-GAAP financial measure. For more details refer to page 23.

(12) For more details on final rules to address the impact of CECL on regulatory capital by allowing BHCs and banks, including Ally see page 17.

 

2Q 2020 Preliminary Results    4


ALLY FINANCIAL INC.

CONSOLIDATED INCOME STATEMENT

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($ in millions)

                                                                                                                                                         
     QUARTERLY TRENDS   CHANGE VS.
     2Q 20   1Q 20   4Q 19   3Q 19   2Q 19   1Q 20   2Q 19

Financing revenue and other interest income

              

Interest and fees on finance receivables and loans

     $ 1,630       $ 1,742       $ 1,811       $ 1,859       $ 1,860       $ (112     $ (230

Interest on loans held-for-sale

     4       2       4       8       3       2       1  

Total interest and dividends on investment securities

     187       213       217       221       227       (26     (40

Interest-bearing cash

     4       14       15       19       21       (10     (17

Other earning assets

     10       13       17       16       17       (3     (7

Operating leases

     343       367       378       368       363       (24     (20
  

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total financing revenue and other interest income

     2,178       2,351       2,442       2,491       2,491       (173     (313

Interest expense

              

Interest on deposits

     541       592       637       658       651       (51     (110

Interest on short-term borrowings

     13       17       21       33       37       (4     (24

Interest on long-term debt

     318       348       366       378       407       (30     (89
  

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total interest expense

     872       957       1,024       1,069       1,095       (85     (223

Depreciation expense on operating lease assets

     252       248       262       234       239       4       13  
  

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net financing revenue (as reported)

     $ 1,054       $ 1,146       $ 1,156       $ 1,188       $ 1,157       $ (92     $ (103

Other revenue

              

Servicing fees

     3       3       3       4       5       (0     (2

Insurance premiums and service revenue earned

     263       277       285       280       261       (14     2  

Gain on mortgage and automotive loans, net

     14       (12     6       10       2       26       12  

Other gain/loss on investments, net

     188       (79     69       27       39       267       149  

Other income, net of losses

     89       77       125       92       88       12       1  
  

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total other revenue

     555       266       487       413       395       289       160  

Total net revenue

     1,609       1,412       1,643       1,601       1,552       197       57  

Provision for credit losses

     287       903       276       263       177       (616     110  

Noninterest expense

              

Compensation and benefits expense

     334       360       312       296       296       (26     38  

Insurance losses and loss adjustment expenses

     142       74       61       74       127       68       15  

Goodwill impairment

     50       -       -       -       -       50       50  

Other operating expenses

     459       486       507       468       458       (27     1  
  

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total noninterest expense

     985       920       880       838       881       65       104  

Pre-tax income (loss) from continuing operations

     $ 337       $ (411     $ 487       $ 500       $ 494       $ 748       $ (157

Income tax expense / (benefit) from continuing operations

     95       (92     106       119       (90     187       185  
  

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income (loss) from continuing operations

     242       (319     381       381       584       561       (342

Income / (Loss) from discontinued operations, net of tax

     (1     -       (3     -       (2     (1     1  
  

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income (loss)

     $ 241       $ (319     $ 378       $ 381       $ 582       $ 560       $ (341
  

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Core Pre-Tax Income Walk

              

Net financing revenue (ex. Core OID) (1)

     $ 1,063       $ 1,154       $ 1,164       $ 1,195       $ 1,164       $ (92     $ (101

Adjusted other revenue (2)

     465       451       458       424       393       14       72  

Provision for credit losses

     287       903       276       263       177       (616     110  

Adjusted noninterest expense (3)

     935       920       880       838       881       15       54  
  

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Core pre-tax income (loss) (4)

     $ 306       $ (217     $ 466       $ 519       $ 499       $ 523       $ (193

Core OID

     (9     (8     (8     (7     (7     (0     (2

Change in the fair value of equity securities (5)

     90       (185     29       (11     2       275       88  

Repositioning and other (6)

     (50     -       -       -       -       (50     (50
  

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Pre-tax income (loss) from continuing operations

     $ 337       $ (411     $ 487       $ 500       $ 494       $ 748       $ (157
  

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

(2) Represents a non-GAAP financial measure. Excludes equity fair value adjustments related to ASU 2016-01, which requires change in the fair value of equity securities to be recognized in current period net income as compared to periods prior to 1/1/2018 in which such adjustments were recognized through other comprehensive income, a component of equity. For more details refer to page 21.

(3) Represents a non-GAAP financial measure. Excludes Goodwill impairment at Ally Invest in 2Q 20. For more details refer to page 21.

(4) Core pre-tax income is a non-GAAP financial measure that adjusts pre-tax income from continuing operations by excluding (1) Core OID, (2) equity fair value adjustments related to ASU 2016-01, which requires change in the fair value of equity securities to be recognized in current period net income as compared to periods prior to 1/1/2018 in which such adjustments were recognized through other comprehensive income, a component of equity and (3) repositioning and other which is primarily related to the extinguishment of high cost legacy debt, strategic activities and significant one-time items. 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.

(5) Change in fair value of equity securities impacts the Insurance and Corporate Finance segments. Excludes equity fair value adjustments related to ASU 2016-01, which requires change in the fair value of equity securities to be recognized in current period net income as compared to periods prior to 1/1/2018 in which such adjustments were recognized through other comprehensive income, a component of equity.

(6) Repositioning and other includes a $50 million Goodwill impairment at Ally Invest in 2Q 20

 

2Q 2020 Preliminary Results    5


ALLY FINANCIAL INC.

CONSOLIDATED PERIOD-END BALANCE SHEET

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($ in millions)

                                                                                                                                                         
     QUARTERLY TRENDS   CHANGE VS.
     2Q 20   1Q 20   4Q 19   3Q 19   2Q 19   1Q 20   2Q 19

Assets

              

Cash and cash equivalents

              

Noninterest-bearing

     $ 609       $ 453       $ 619       $ 723       $ 659       $ 156       $ (50

Interest-bearing

     18,522       5,708       2,936       2,894       2,904       12,814       15,618  
  

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total cash and cash equivalents

     19,131       6,161       3,555       3,617       3,563       12,970       15,568  

Investment securities (1)

     31,228       31,619       32,468       32,572       31,740       (391     (512

Loans held-for-sale, net

     404       235       158       1,000       275       169       129  

Finance receivables and loans

     118,234       128,139       128,231       128,609       129,210       (9,905     (10,976

Allowance for loan losses

     (3,354     (3,245     (1,263     (1,277     (1,282     (109     (2,072
  

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total finance receivables and loans, net

     114,880       124,894       126,968       127,332       127,928       (10,014     (13,048

Investment in operating leases, net

     9,088       9,064       8,864       8,653       8,407       24       681  

Premiums receivables and other insurance assets

     2,609       2,576       2,558       2,521       2,460       33       149  

Other assets

     6,721       7,978       6,073       5,790       6,075       (1,257     646  
  

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total assets

     $ 184,061       $ 182,527       $ 180,644       $ 181,485       $ 180,448       $ 1,534       $ 3,613  
  

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Liabilities

              

Deposit liabilities

              

Noninterest-bearing

     $ 134       $ 139       $ 119       $ 156       $ 162       $ (5     $ (28)  

Interest-bearing

     130,902       122,185       120,633       119,074       116,163       8,717       14,739  
  

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total deposit liabilities

     131,036       122,324       120,752       119,230       116,325       8,712       14,711  

Short-term borrowings

     3,689       9,493       5,531       5,335       6,519       (5,804     (2,830

Long-term debt

     29,176       31,066       34,027       35,730       37,466       (1,890     (8,290

Interest payable

     697       710       641       894       744       (13     (47

Unearned insurance premiums and service revenue

     3,338       3,305       3,305       3,246       3,171       33       167  

Accrued expense and other liabilities

     2,299       2,110       1,972       2,600       1,907       189       392  
  

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total liabilities

     $ 170,235       $ 169,008       $ 166,228       $ 167,035       $ 166,132       $ 1,227       $ 4,103  

Equity

              

Common stock and paid-in capital (2)

   $ 18,307     $ 18,278     $ 18,350     $ 18,628     $ 18,914     $ 29     $ (607

Accumulated deficit

     (5,296     (5,465     (4,057     (4,368     (4,682     169       (614

Accumulated other comprehensive income / (loss)

     815       706       123       190       84       109       731  
  

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total equity

     13,826       13,519       14,416       14,450       14,316       307       (490
  

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total liabilities and equity

   $ 184,061     $ 182,527     $ 180,644     $ 181,485     $ 180,448     $ 1,534     $ 3,613  
  

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(1) Includes held-to-maturity securities.

(2) Includes Treasury stock.

 

2Q 2020 Preliminary Results    6


ALLY FINANCIAL INC.

CONSOLIDATED AVERAGE BALANCE SHEET (1)

   LOGO

 

($ in millions)

                                                                                                                                                         
     QUARTERLY TRENDS   CHANGE VS.
     2Q 20   1Q 20   4Q 19   3Q 19   2Q 19   1Q 20   2Q 19

Assets

              

Interest-bearing cash and cash equivalents

     $ 12,496       $ 4,853       $ 3,811       $ 3,539       $ 3,713       $ 7,643       $ 8,783  

Investment securities and other earning assets

     32,201       32,694       33,680       32,708       32,446       (493     (245

Loans held-for-sale, net

     337       150       405       745       191       187       146  

Total finance receivables and loans, net (2)

     122,428       126,646       127,184       128,799       129,950       (4,218     (7,522

Investment in operating leases, net

     9,068       9,078       8,749       8,525       8,370       (10     698  
  

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total interest earning assets

     176,530       173,420       173,829       174,316       174,670       3,110       1,860  

Noninterest-bearing cash and cash equivalents

     432       418       297       391       544       14       (112

Other assets

     8,250       7,583       7,232       7,012       6,722       667       1,528  

Allowance for loan losses

     (3,227     (2,629     (1,277     (1,287     (1,284     (598     (1,943
  

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total assets

     $ 181,985       $ 178,792       $ 180,081       $ 180,432       $ 180,652       $ 3,193       $ 1,333  
  

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Liabilities

              

Interest-bearing deposit liabilities

              

Retail deposit liabilities

     $ 111,152       $ 104,483       $ 102,362       $ 99,874       $ 96,855       $ 6,669       $ 14,298  

Other interest-bearing deposit liabilities (3)

     15,726       16,593       17,553       17,615       17,402       (868     (1,676
  

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total Interest-bearing deposit liabilities

     126,878       121,076       119,915       117,489       114,257       5,802       12,621  

Short-term borrowings

     4,712       4,496       4,283       5,550       5,887       216       (1,175

Long-term debt (4)

     30,554       33,122       34,954       36,395       40,222       (2,568     (9,668
  

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total interest-bearing liabilities (4)

     162,144       158,694       159,152       159,434       160,366       3,450       1,779  

Noninterest-bearing deposit liabilities

     136       141       142       149       135       (5     1  

Other liabilities

     5,343       6,137       6,352       6,468       6,357       (794     (1,014
  

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total liabilities

     $ 167,623       $ 164,972       $ 165,646       $ 166,051       $ 166,858       $ 2,651       $ 766  

Equity

              

Total equity

     $ 14,362       $ 13,820       $ 14,435       $ 14,381       $ 13,794       $ 542       $ 568  
  

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total liabilities and equity

     $ 181,985       $ 178,792       $ 180,081       $ 180,432       $ 180,652       $ 3,193       $ 1,333  
  

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

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

(3) Includes brokered (inclusive of sweep deposits) and other deposits (inclusive of mortgage escrow, and other deposits).

(4) Includes average Core OID balance of $1,050 million in 2Q 20, $1,059 million in 1Q 20, $1,067 million in 4Q 19, $1,075 million in 3Q 19, and $1,082 million in 2Q 19.

 

2Q 2020 Preliminary Results    7


ALLY FINANCIAL INC.

SEGMENT HIGHLIGHTS

   LOGO

 

($ in millions)

                                                                                                                                                         
     QUARTERLY TRENDS   CHANGE VS.
     2Q 20   1Q 20   4Q 19   3Q 19   2Q 19   1Q 20   2Q 19

Pre-tax Income / (Loss)

              

Automotive Finance

     $ 329       $ (173     $ 401       $ 429       $ 459       $ 502       $ (130

Insurance

     128       (105     114       56       -       233       128  
  

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Dealer Financial Services

     457       (278     515       485       459       735       (2

Corporate Finance

     32       (68     50       44       46       100       (14

Mortgage Finance

     8       12       2       11       14       (4     (6

Corporate and Other (1)

     (160     (77     (80     (40     (25     (83     (135
  

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Pre-tax income (loss) from continuing operations

     $ 337       $ (411     $ 487       $ 500       $ 494       $ 748       $ (157

Core OID (2)

     9       8       8       7       7       0       2  

Change in the fair value of equity securities (3)

     (90     185       (29     11       (2     (275     (88

Repositioning and other (4)

     50       -       -       -       -       50       50  
  

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Core pre-tax income (loss) (5)

     $ 306       $ (217     $ 466       $ 519       $ 499       $ 523       $ (193
  

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(1) Corporate and Other includes the impact of centralized asset and liability management, corporate overhead allocation activities, the legacy mortgage portfolio, Ally Invest activity, and Ally Lending activity.

(2) Core OID for all periods shown are applied to the pre-tax income of the Corporate and Other segment.

(3) Change in fair value of equity securities impacts the Insurance and Corporate Finance segments. Excludes equity fair value adjustments related to ASU 2016-01, which requires change in the fair value of equity securities to be recognized in current period net income as compared to periods prior to 1/1/2018 in which such adjustments were recognized through other comprehensive income, a component of equity.

(4) Repositioning and other includes a $50 million Goodwill impairment at Ally Invest in 2Q 20

(5) Core pre-tax income is a non-GAAP financial measure that adjusts pre-tax income from continuing operations by excluding (1) Core OID, (2) equity fair value adjustments related to ASU 2016-01, which requires change in the fair value of equity securities to be recognized in current period net income as compared to periods prior to 1/1/2018 in which such adjustments were recognized through other comprehensive income, a component of equity and (3) repositioning and other which is primarily related to the extinguishment of high cost legacy debt, strategic activities and significant one-time items. 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.

 

2Q 2020 Preliminary Results    8


ALLY FINANCIAL INC.

AUTOMOTIVE FINANCE - CONDENSED FINANCIAL STATEMENTS

   LOGO

 

($ in millions)

                                                                                                                                                         
    QUARTERLY TRENDS   CHANGE VS.

Income Statement

  2Q 20   1Q 20   4Q 19   3Q 19   2Q 19   1Q 20   2Q 19

Net financing revenue

             

Consumer

    $ 1,215       $ 1,202       $ 1,234       $ 1,227       $ 1,184       $ 13       $ 31  

Commercial

    210       307       342       385       412       (97     (202

Loans held for sale

    -       -       (1     -       -       -       -  

Operating leases

    343       367       378       368       363       (24     (20

Other interest income

    2       1       1       3       3       1       (1
 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total financing revenue and other interest income

    1,770       1,877       1,954       1,983       1,962       (107     (192

Interest expense

    529       589       631       671       701       (60     (172

Depreciation expense on operating lease assets:

             

Depreciation expense on operating lease assets (ex. remarketing)

    240       251       265       262       261       (10     (21

Remarketing (losses) / gains

    (11     2       3       28       23       (14     (34
 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total depreciation expense on operating lease assets

    252       248       262       234       239       4       13  
 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net financing revenue

    989       1,040       1,061       1,078       1,022       (51     (33

Other revenue

             

Servicing fees

    2       1       2       3       4       1       (2

Other income

    39       46       58       57       57       (7     (18
 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total other revenue

    40       47       61       59       61       (7     (21
 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total net revenue

    1,029       1,087       1,122       1,137       1,083       (58     (54

Provision for credit losses

    256       766       255       265       180       (510     76  

Noninterest expense

             

Compensation and benefits

    133       148       133       128       127       (15     6  

Other operating expenses

    311       346       333       315       317       (35     (6
 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total noninterest expense

    444       494       466       443       444       (50     -  
 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Pre-tax income / (loss)

    $ 329       $ (173     $ 401       $ 429       $ 459       $ 502       $ (130
 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Memo: Net lease revenue

             

Operating lease revenue

    $ 343       $ 367       $ 378       $ 368     $ 363       $ (24   $ (20

Depreciation expense on operating lease assets (ex. remarketing)

    240       251       265       262       261       (10     (21

Remarketing (losses) / gains, net of repo valuation

    (11     2       3       28       23       (14     (34
 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total depreciation expense on operating lease assets

    252       248       262       234       239       4       13  
 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net lease revenue

    $ 91       $ 119       $ 116       $ 134       $ 124       $ (28     $ (33
 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Balance Sheet (Period-End)

             

Cash, trading and investment securities

    $ 23       $ 23       $ 23       $ 23       $ 23       $ -       $ -  

Consumer loans

    72,378       72,463       72,254       72,894       72,746       (85     (368

Commercial loans

    21,708       31,390       32,490       33,330       33,575       (9,682     (11,867

Allowance for loan losses

    (3,084     (2,968     (1,130     (1,156     (1,146     (116     (1,938
 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total finance receivables and loans, net

    91,002       100,885       103,614       105,068       105,175       (9,883     (14,173

Investment in operating leases, net

    9,088       9,064       8,864       8,653       8,407       24       681  

Other assets

    1,903       1,582       1,362       1,352       1,350       321       553  
 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total assets

    $ 102,016       $ 111,554       $ 113,863       $ 115,096       $ 114,955       $ (9,538     $ (12,939
 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2Q 2020 Preliminary Results    9


ALLY FINANCIAL INC.

AUTOMOTIVE FINANCE - KEY STATISTICS

   LOGO

 

                                                                                                                                                         
    QUARTERLY TRENDS   CHANGE VS.
    2Q 20   1Q 20   4Q 19   3Q 19   2Q 19   1Q 20   2Q 19

U.S. Consumer Originations (1) ($ in billions)

             

Retail standard - new vehicle GM

    $ 0.7       $ 1.0       $ 1.2       $ 1.3       $ 1.2       $ (0.3     $ (0.5

Retail standard - new vehicle Chrysler

    0.7       0.8       0.8       0.9       0.9       (0.1     (0.2

Retail standard - new vehicle Growth

    0.6       1.1       1.0       1.2       1.3       (0.5     (0.7

Used vehicle

    4.3       5.0       3.9       4.6       5.3       (0.7     (1.0

Lease

    0.9       1.2       1.2       1.3       1.1       (0.4     (0.2

Retail subvented

    0.0       0.0       0.0       0.1       0.1       (0.0     (0.0
 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total originations

    $ 7.2       $ 9.1       $ 8.1       $ 9.3       $ 9.7       $ (1.9     $ (2.6

U.S. Consumer Originations - FICO Score

             

Super Prime (740+)

    $ 1.6       $ 2.1       $ 2.1       $ 2.2       $ 2.2       $ (0.5     $ (0.6

Prime (660-739)

    2.9       3.4       2.9       3.4       3.6       (0.5     (0.7

Prime/Near (620-659)

    1.6       1.9       1.6       2.0       2.1       (0.4     (0.5

Non Prime (540-619)

    0.6       0.9       0.8       0.9       1.0       (0.3     (0.3

Sub Prime (0-539)

    0.1       0.1       0.1       0.1       0.1       0.0       (0.0

Commercial Services Group (2)

    0.4       0.6       0.7       0.7       0.7       (0.3     (0.3
 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total originations

    $ 7.2       $ 9.1       $ 8.1       $ 9.3       $ 9.7       $ (1.9     $ (2.6

U.S. Market

             

Light vehicle sales (SAAR - units in millions)

    11.4       15.0       16.7       17.0       17.0       (3.7     (5.7

Light vehicle sales (NSA - units in millions)

    3.0       3.5       4.3       4.3       4.4       (0.5     (1.5

GM market share

    16.5%       17.7%       17.3%       17.2%       16.9%      

Chrysler market share

    12.4%       12.8%       12.7%       13.1%       13.5%      

Ally U.S. Consumer Penetration

             

GM

    4.0%       6.2%       5.6%       5.7%       5.6%      

Chrysler

    10.4%       13.2%       12.5%       12.1%       11.1%      

Ally U.S. Commercial Outstandings EOP ($ in billions)

             

Floorplan outstandings

    $ 15.8       $ 26.1       $ 27.0       $ 27.7       $ 27.9       $ (10.2     $ (12.1

Dealer loans and other

    5.9       5.3       5.5       5.6       5.6       0.6       0.2  
 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total Commercial outstandings

    $ 21.7       $ 31.4       $ 32.5       $ 33.3       $ 33.6       $ (9.7     $ (11.9
                             

U.S. Off-Lease Remarketing

             

Off-lease vehicles terminated - on-balance sheet (# in units)

    26,785       20,419       27,832       29,985       29,267       6,366       (2,482

Average (loss) / gain per vehicle

    $ (421     $ 121       $ 99       $ 944       $ 776       $ (542     $ (1,197

Total (loss) / gain ($ in millions)

    $ (11     $ 2       $ 3       $ 28       $ 23       $ (14     $ (34

 

(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) Commercial Services Group (CSG) are business customers. Average annualized credit losses of 40-45 bps on CSG loans from 2016 through 2Q20

 

2Q 2020 Preliminary Results    10


ALLY FINANCIAL INC.

INSURANCE - CONDENSED FINANCIAL STATEMENTS AND KEY STATISTICS

   LOGO

 

($ in millions)

                                                                                                                                                         
     QUARTERLY TRENDS   CHANGE VS.

Income Statement (GAAP View)

   2Q 20    1Q 20   4Q 19    3Q 19   2Q 19   1Q 20   2Q 19

Net financing revenue

                

Interest and dividends on investment securities

     $ 27        $ 29       $ 29        $ 28       $ 29       $ (2     $ (2

Interest bearing cash

     4        5       5        6       5       (1     (1
  

 

 

 

  

 

 

 

 

 

 

 

  

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total financing revenue and other interest revenue

     31        34       34        34       34       (3     (3

Interest expense

     19        20       21        20       19       (1     -  
  

 

 

 

  

 

 

 

 

 

 

 

  

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net financing revenue

     12        14       13        14       15       (2     (3

Other revenue

                

Insurance premiums and service revenue earned

     263        277       285        280       261       (14     2  

Other gain / (loss) on investments, net

     172        (142     51        6       23       314       149  

Other income, net of losses

     3        2       3        3       2       1       1  
  

 

 

 

  

 

 

 

 

 

 

 

  

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total other revenue

     438        137       339        289       286       301       152  
  

 

 

 

  

 

 

 

 

 

 

 

  

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total net revenue

     450        151       352        303       301       299       149  

Noninterest expense

                

Compensation and benefits expense

     20        21       20        19       20       (1     -  

Insurance losses and loss adjustment expenses

     142        74       61        74       127       68       15  

Other operating expenses

     160        161       157        154       154       (1     6  
  

 

 

 

  

 

 

 

 

 

 

 

  

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total noninterest expense

     322        256       238        247       301       66       21  
  

 

 

 

  

 

 

 

 

 

 

 

  

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Pre-tax income / (loss)

     $ 128        $ (105     $ 114        $ 56       $ -       $ 233       $ 128  
  

 

 

 

  

 

 

 

 

 

 

 

  

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Memo: Income Statement (Managerial View)

                

Insurance premiums and other income

                

Insurance premiums and service revenue earned

     $ 263        $ 277       $ 285        $ 280       $ 261       $ (14     $ 2  

Investment income (adjusted) (1)

     95        54       36        30       34       41       61  

Other income

     3        2       3        3       2       1       1  
  

 

 

 

  

 

 

 

 

 

 

 

  

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total insurance premiums and other income

     361        333       324        313       297       28       64  

Expense

                

Insurance losses and loss adjustment expenses

     142        74       61        74       127       68       15  

Acquisition and underwriting expenses

                

Compensation and benefit expense

     20        21       20        19       20       (1     -  

Insurance commission expense

     127        126       123        120       117       1       10  

Other expense

     33        35       34        34       37       (2     (4
  

 

 

 

  

 

 

 

 

 

 

 

  

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total acquisition and underwriting expense

     180        182       177        173       174       (2     6  
  

 

 

 

  

 

 

 

 

 

 

 

  

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total expense

     322        256       238        247       301       66       21  
  

 

 

 

  

 

 

 

 

 

 

 

  

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Core pre-tax income / (loss) (1)

     39        77       86        66       (4     (38     43  

Change in the fair value of equity securities (1)

     89        (182     28        (10     4       271       85  
  

 

 

 

  

 

 

 

 

 

 

 

  

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income / (loss) before income tax expense

     $ 128        $ (105     $ 114        $ 56       $ -       $ 233       $ 128  
  

 

 

 

  

 

 

 

 

 

 

 

  

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Balance Sheet (Period-End)

                

Cash, trading and investment securities

     $ 5,920        $ 5,193       $ 5,742        $ 5,713       $ 5,538       $ 727       $ 382  

Premiums receivable and other insurance assets

     2,621        2,594       2,576        2,539       2,478       27       143  

Other assets

     199        633       229        226       225       (434     (26
  

 

 

 

  

 

 

 

 

 

 

 

  

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total assets

     $ 8,740        $ 8,420       $ 8,547        $ 8,478       $ 8,241       $ 320       $ 499  
  

 

 

 

  

 

 

 

 

 

 

 

  

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Key Statistics

                

Total written premiums and revenue (2)

     $ 267        $ 317       $ 335        $ 357       $ 314       $ (50     $ (47

Loss ratio (3)

     53.4%        26.5%       21.2%        26.1%       48.5%      

Underwriting expense ratio (4)

     67.4%        65.1%       61.5%        61.4%       65.9%      
  

 

 

 

  

 

 

 

 

 

 

 

  

 

 

 

 

 

 

 

   

Combined ratio

     120.9%        91.6%       82.7%        87.5%       114.4%      

 

(1) Represents a non-GAAP financial measure. Excludes equity fair value adjustments related to ASU 2016-01, which requires change in the fair value of equity securities to be recognized in current period net income as compared to periods prior to 1/1/2018 in which such adjustments were recognized through other comprehensive income, a component of equity.

(2) Written premiums are net of ceded premium for reinsurance.

(3) Loss Ratio is calculated as Insurance losses and loss adjustment expenses divided by Insurance premiums and service revenue earned and Other Income, net of losses.

(4) Underwriting Expense Ratio is calculated as Compensation and benefits expense and Other operating expenses divided by Insurance premiums and service revenue earned and Other Income, net of losses.

 

2Q 2020 Preliminary Results    11


ALLY FINANCIAL INC.

MORTGAGE FINANCE - CONDENSED FINANCIAL STATEMENTS

   LOGO

 

($ in millions)

                                                                                                                                                         
    QUARTERLY TRENDS   CHANGE VS.

Income Statement

  2Q 20   1Q 20   4Q 19   3Q 19   2Q 19   1Q 20   2Q 19

Net financing revenue

             

Total financing revenue and other interest income

    $ 127       $ 138       $ 137       $ 144       $ 150       $ (11     $ (23

Interest expense

    97       100       101       105       104       (3     (7
 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net financing revenue

    30       38       36       39       46       (8     (16

Gain on mortgage loans, net

    17       9       6       10       2       8       15  

Other income, net of losses

    2       1       -       -       2       1       -  
 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total other revenue

    19       10       6       10       4       9       15  
 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total net revenue

    49       48       42       49       50       1       (1

Provision for credit losses

    3       1       3       -       -       2       3  

Noninterest expense

             

Compensation and benefits expense

    5       6       7       7       9       (1     (4

Other operating expense

    33       29       30       31       27       4       6  
 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total noninterest expense

    38       35       37       38       36       3       2  
 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Pre-tax income

    $ 8       $ 12       $ 2       $ 11       $ 14       $   (4)      $ (6
 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Balance Sheet (Period-End)

             

Finance receivables and loans, net:

             

Consumer loans

    $ 16,429       $ 15,949       $ 16,181       $ 15,782       $ 16,485       $ 480       $ (56

Allowance for loan losses

    (21     (18     (19     (17     (18     (3     (3
 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total finance receivables and loans, net

    16,408       15,931       16,162       15,765       16,467       477       (59

Other assets

    261       204       117       818       117       57       144  
 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total assets

    $ 16,669       $ 16,135       $ 16,279       $ 16,583       $ 16,584       $ 534       $ 85  
 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2Q 2020 Preliminary Results    12


ALLY FINANCIAL INC.

CORPORATE FINANCE - CONDENSED FINANCIAL STATEMENTS

   LOGO

 

($ in millions)

                                                                                                                                                         
     QUARTERLY TRENDS   CHANGE VS.

Income Statement

   2Q 20   1Q 20   4Q 19   3Q 19   2Q 19   1Q 20   2Q 19

Net financing revenue

              

Total financing revenue and other interest income

     $ 92       $ 95       $ 93       $ 93       $ 97       $ (3     $ (5

Interest expense

     15       27       29       33       36       (12     (21
  

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net financing revenue

     77       68       64       60       61       9       16  

Total other revenue (adjusted) (1)

     5       17       15       10       12       (12     (6
  

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total net revenue

     82       85       79       70       73       (3     10  

Provision for credit losses

     25       114       7       3       3       (89     22  

Noninterest expense

              

Compensation and benefits expense

     14       21       13       13       13       (7     1  

Other operating expense

     12       14       9       9       9       (2     3  
  

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total noninterest expense

     26       35       22       22       22       (9     4  

Core pre-tax income (1)

     31       (64     50       45       48       95       (16
  

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Change in the fair value of equity securities (2)

     1       (4     0       (1     (2     5       2  
  

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Pre-tax income / (loss)

     $ 32       $ (68     $ 50       $ 44       $ 46       $ 100       $ (14
  

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Balance Sheet (Period-End)

              

Cash, trading and investment securities

     $ 5       $ 4       $ 8       $ 8       $ 9       $ 1       $ (4

Loans held for sale

     265       133       100       240       195       132       70  

Commercial loans

     6,031       6,549       5,688       5,033       4,795       (518     1,236  

Allowance for loan losses

     (178     (191     (77     (75     (87     13       (91
  

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total finance receivables and loans, net

     5,853       6,358       5,611       4,958       4,708       (505     1,145  

Other assets

     83       77       68       69       68       6       15  
  

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total assets

     $ 6,206       $ 6,572       $ 5,787       $ 5,275       $ 4,980       $ (366     $ 1,226  
  

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(1) Represents a non-GAAP financial measure. Excludes equity fair value adjustments related to ASU 2016-01, which requires change in the fair value of equity securities to be recognized in current period net income as compared to periods prior to 1/1/2018 in which such adjustments were recognized through other comprehensive income, a component of equity. See page 21 for more details.

(2) Excludes equity fair value adjustments related to ASU 2016-01, which requires change in the fair value of equity securities to be recognized in current period net income as compared to periods prior to 1/1/2018 in which such adjustments were recognized through other comprehensive income, a component of equity.

 

2Q 2020 Preliminary Results    13


ALLY FINANCIAL INC.

CORPORATE AND OTHER - CONDENSED FINANCIAL STATEMENTS

   LOGO

 

($ in millions)

                                                                                                                                                         
     QUARTERLY TRENDS   CHANGE VS.

Income Statement

   2Q 20   1Q 20   4Q 19   3Q 19   2Q 19   1Q 20   2Q 19

Net financing revenue

              

Total financing revenue and other interest income

     $ 158       $ 207       $ 224       $ 237       $ 248       $ (49     $ (90

Interest expense

              

Core original issue discount amortization

     9       8       8       7       7       0       2  

Other interest expense

     203       213       234       233       228       (9     (25
  

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total interest expense

     212       221       242       240       235       (9     (23
  

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net financing (loss) / revenue

     (54     (14     (18     (3     13       (40     (67

Other revenue

              

Other gain on investments, net

     15       67       18       22       14       (52     1  

Other income, net of losses (1)

     37       (8     48       24       20       45       17  
  

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total other revenue

     52       59       66       46       34       (7     18  
  

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total net revenue

     (2     45       48       43       47       (47     (49

Provision for credit losses

     3       22       11       (5     (6     (19     9  

Noninterest expense

              

Compensation and benefits expense

     162       164       139       129       127       (2     35  

Goodwill impairment

     50       -       -       -       -       50       50  

Other operating expense (2)

     (57     (64     (22     (41     (49     7       (8
  

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total noninterest expense

     155       100       117       88       78       55       77  
  

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Pre-tax (loss) income

     $ (160     $ (77     $ (80     $ (40     $ (25     $ (83     $ (135
  

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Balance Sheet (Period-End)

              

Cash, trading and investment securities

     $ 44,411       $ 32,560       $ 30,250       $ 30,445       $ 29,733       $ 11,851       $ 14,678  

Loans held-for-sale

     48       34       30       67       58       14       (10

Consumer loans

     1,558       1,654       1,489       1,405       1,467       (96     91  

Commercial loans (3)

     130       134       129       165       142       (4     (12

Allowance for loan losses

     (71     (68     (37     (29     (31     (3     (40