Ally Financial Inc. · NYSE:ALLY
Ally Financial — Q2 2013 Earnings Presentation
22 slides from Ally Financial's earnings presentation, Jul 31, 2013
Slide 1: Second Quarter 2013 Financial Supplement
SECOND QUARTER 2013 FINANCIAL SUPPLEMENT
Slide 2: Forward-Looking Statements and Additional Information
ALLY FINANCIAL INC. FORWARD-LOOKING STATEMENTS AND ADDITIONAL INFORMATION The following should be read in conjunction with the financial statements, notes and other information contained in the Company’s Annual Reports on Form 10-K, Quarterly Reports on Form 10-Q, and Current Reports on Form 8-K. Th
Slide 3: Table of Contents
ALLY FINANCIAL INC. TABLE OF CONTENTS 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
Slide 4: Consolidated Financial Highlights
ALLY FINANCIAL INC. CONSOLIDATED FINANCIAL HIGHLIGHTS ($ in millions) QUARTERLY TRENDS CHANGE VS. Selected Income Statement Data Net financing revenue (ex. OID) Total other revenue Total net revenue (ex. OID) Provision for loan losses Controllable expenses (1) Other noninterest expenses Core pre-tax
Slide 5: Consolidated Income Statement
ALLY FINANCIAL INC. CONSOLIDATED INCOME STATEMENT CONSOLIDATED INCOME STATEMENT ($ in millions) QUARTERLY TRENDS CHANGE VS. 2Q 13 1Q 13 4Q 12 3Q 12 2Q 12 1Q 13 2Q 12 Financing revenue and other interest income Interest and fees on finance receivables and loans (1) $ 1,139 $ 1,135 1,165$ $ 1,141 $ 1,
Slide 6: Consolidated Period-End Balance Sheet
ALLY FINANCIAL INC. CONSOLIDATED PERIOD-END BALANCE SHEET ($ in millions) QUARTERLY TRENDS CHANGE VS. Assets 6/30/2013 3/31/2013 12/31/2012 9/30/2012 6/30/2012 3/31/2013 6/30/2012 Cash and cash equivalents Noninterest-bearing $ 1,292 $ 1,043 1,073$ $ 1,305 $ 2,106 $ 249 (814)$ Interest-bearing 6,482
Slide 7: Consolidated Average Balance Sheet
ALLY FINANCIAL INC. CONSOLIDATED AVERAGE BALANCE SHEET (1)(2) ($ in millions) QUARTERLY TRENDS CHANGE VS. Assets Interest-bearing cash and cash equivalents Trading assets Investment securities Loans held-for-sale, net Total finance receivables and loans, net (3) Investment in operating leases, net T
Slide 8: Segment Highlights
ALLY FINANCIAL INC. SEGMENT HIGHLIGHTS SEGMENT HIGHLIGHTS ($ in millions) QUARTERLY TRENDS CHANGE VS. 2Q 13 1Q 13 4Q 12 3Q 12 2Q 12 1Q 13 2Q 12 Automotive Finance $ 382 $ 343 $ 371 $ 337 $ 440 $ 39 $ (58) Insurance 45 61 27 13 20 (16) 25 Dealer Financial Services 427 404 398 350 460 23 (33) Mortgage
Slide 9: Automotive Finance - Condensed Financial Statements
ALLY FINANCIAL INC. AUTOMOTIVE FINANCE - CONDENSED FINANCIAL STATEMENTS ($ in millions) QUARTERLY TRENDS CHANGE VS. Income Statement 2Q 13 1Q 13 4Q 12 3Q 12 2Q 12 1Q 13 2Q 12 Net financing revenue Consumer $ 750 $ 729 739$ $ 719 $ 708 $ 21 42$ Commercial (1) 268 281 294 283 290 (13) (22) Loans held-
Slide 10: Automotive Finance - Key Statistics
ALLY FINANCIAL INC. AUTOMOTIVE FINANCE - KEY STATISTICS QUARTERLY TRENDS CHANGE VS. U.S. Market 2Q 13 1Q 13 4Q 12 3Q 12 2Q 12 1Q 13 2Q 12 SAAR (units in millions) 15.3 15.2 15.0 14.5 14.0 0.1 1.3 Industry light vehicle sales (units in millions) 4.1 3.7 3.6 3.6 3.8 0.4 0.3 GM market share 18.4% 18.1%
Slide 11: Insurance - Condensed Financial Statements and Key Statistics
ALLY FINANCIAL INC. INSURANCE - CONDENSED FINANCIAL STATEMENTS AND KEY STATISTICS ($ in millions) QUARTERLY TRENDS CHANGE VS. Income Statement Insurance premiums and other income Insurance premiums and service revenue earned Investment income Other income Total insurance premiums and other income Ex
Slide 12: Corporate and Other - Condensed Financial Statements
ALLY FINANCIAL INC. CORPORATE AND OTHER - CONDENSED FINANCIAL STATEMENTS ($ in millions) QUARTERLY TRENDS CHANGE VS. Income Statement 2Q 13 1Q 13 4Q 12 3Q 12 2Q 12 1Q 13 2Q 12 Net financing loss Total financing revenue and other interest income $ 71 $ 53 $ 42 $ 26 $ 45 $ 18 $ 26 Interest expense Cor
Slide 13: Corporate and Other - Condensed Financial Statements
ALLY FINANCIAL INC. CORPORATE AND OTHER - CONDENSED FINANCIAL STATEMENTS ($ in millions) QUARTERLY TRENDS CHANGE VS. Income Statement 2Q 13 1Q 13 4Q 12 3Q 12 2Q 12 1Q 13 2Q 12 Net financing loss Total financing revenue and other interest income $ 71 $ 53 $ 42 $ 26 $ 45 $ 18 $ 26 Interest expense Cor
Slide 14: Credit Related Information
ALLY FINANCIAL INC. CREDIT RELATED INFORMATION ($ in millions) QUARTERLY TRENDS CHANGE VS. Asset Quality - Consolidated (1) 2Q 13 1Q 13 4Q 12 3Q 12 2Q 12 1Q 13 2Q 12 Ending loan balance $ 96,993 $ 99,123 $ 99,055 $ 121,259 $ 119,913 $ (2,130) $ (22,921) 30+ Accruing DPD $ 1,084 $ 930 $ 1,145 $ 1,051
Slide 15: Credit Related Information, Continued
ALLY FINANCIAL INC. CREDIT RELATED INFORMATION, CONTINUED ($ in millions) CONTINUING OPERATIONS Automotive Finance (1)(2) QUARTERLY TRENDS CHANGE VS. Consumer 2Q 13 1Q 13 4Q 12 3Q 12 2Q 12 1Q 13 2Q 12 Allowance for loan losses $ 610 $ 598 $ 575 $ 618 $ 589 $ 11 $ 20 Total consumer loans $ 56,028 $ 5
Slide 16: Credit Related Information, Continued
ALLY FINANCIAL INC. CREDIT RELATED INFORMATION, CONTINUED ($ in millions) U.S. Auto Delinquencies - HFI Retail Contract Amount (1) Delinquent contract $ % of retail contract $ outstanding $ 2Q 13 999 1.78% $ 1Q 13 843 1.53% QUARTERLY TRENDS 4Q 12 1,073$ $ 2.00% 3Q 12 836 1.59% $ 2Q 12 689 1.36% $ CH
Slide 17: Capital
ALLY FINANCIAL INC. CAPITAL CAPITAL ($ in billions) QUARTERLY TRENDS CHANGE VS. Cost of Funds 2Q 13 1Q 13 4Q 12 3Q 12 2Q 12 1Q 13 2Q 12 Ally Financial's cost of borrowing (incl. OID) 3.0% 2.8% 2.9% 3.2% 3.3% Ally Financial's cost of borrowing (excl. OID) 2.7% 2.6% 2.7% 3.0% 2.9% Capital Risk-weighte
Slide 18: Liquidity
ALLY FINANCIAL INC. LIQUIDITY LIQUIDITY ($ in billions) 6/30/2013 3/31/2013 6/30/2012 Available Liquidity Parent (1) Ally Bank Parent (1) Ally Bank Parent (1) Ally Bank Cash and cash equivalents $ 4.0 $ 3.1 $ 3.5 $ 3.1 $ 11.4 $ 3.4 Highly liquid securities (2) 2.0 6.7 0.9 6.2 -5.0 Current committed
Slide 19: Deposits
ALLY FINANCIAL INC. DEPOSITS DEPOSITS ($ in millions) QUARTERLY TRENDS CHANGE VS. Key Statistics Average retail CD maturity (months) Average retail deposit rate 2Q 13 30.4 1.24% 1Q 13 29.9 1.29% 4Q 12 29.5 1.34% 3Q 12 29.1 1.36% 2Q 12 28.8 1.41% 1Q 13 0.5 2Q 12 1.7 CD balances up for renewal CD bala
Slide 20: Ally Bank Consumer Mortgage HFI Portfolio
ALLY FINANCIAL INC. ALLY BANK CONSUMER MORTGAGE HFI PORTFOLIO (PERIOD-END) ($ in billions) HISTORICAL QUARTERLY TRENDS Loan Value (1) 2Q 13 1Q 13 4Q 12 3Q 12 2Q 12 Gross carry value 9.2$ 9.6$ 9.8$ 9.7$ 9.8$ Net carry value 8.8$ 9.2$ 9.3$ 9.3$ 9.3$ Estimated Pool Characteristics % Prime jumbo (> 1/1/
Slide 21: Discontinued Operations
ALLY FINANCIAL INC. DISCONTINUED OPERATIONS ($ in millions) QUARTERLY TRENDS INC / (DEC) VS. Impact of Discontinued Operations (1) 2Q 13 1Q 13 4Q 12 3Q 12 2Q 12 1Q 13 2Q 12 Auto Finance (245) 1,037 112 125 164 (1,282) (408) Insurance 294 28 38 13 (3) 266 297 Dealer Financial Services 49 1,065 150 13
Slide 22: Ownership
ALLY FINANCIAL INC. OWNERSHIP OWNERSHIP ($ in millions) Common Ownership as of 2Q 13 U.S. Treasury 73.8% Cerberus 8.7% Other 7.6% GM Trust 9.9% Other Tier 1 Capital as of 2Q 13 Liquidation Book Series Owner Preference Value Trust Preferred Securities (1) Investors $ 2,667 $ 2,544 Series F-2 Mandator