Ally Financial Inc. · NYSE:ALLY
Ally Financial — BancAnalysts Association of Boston Conference 2017
21 slides from Ally Financial's conference presentation, Nov 2, 2017
Slide 1: Ally Financial Inc. BancAnalysts Association of Boston Conference
Ally Financial Inc. BancAnalysts Association of Boston Conference November 2, 2017 1
Slide 2: Forward-Looking Statements and Additional Information
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.
Slide 3: Ally Overview
Ally Overview Building the leading digital bank $164 billion of Assets $90 billion of Deposits Over 5 million customers Zero branches Asset Mix Funding Mix Retail Auto Loan Other 41% 5% Deposits 61% Corporate Finance Auto Lease 2% 5% Secured Debt Mortgage 13% 7% Commercial Auto Cash and 22% Unsecure
Slide 4: Strategic Direction
Strategic Direction Demonstrate resilient returns in auto finance through the cycle Relentlessly focus on customers Grow deposit and customer base Expand additional products to unlock more value from Ally banking franchise Leverage position as leader in digital banking 4
Slide 5: Driving Higher Shareholder Returns
Driving Higher Shareholder Returns Improving Core ROTCE(1) through efficient capital allocation and earnings growth • Growing net financing revenue • Increasing noninterest income • Operating leverage • Optimize capital deployment 12% +/- 10% 3% 2013 2016 Medium-term Target 5 (1) Medium-term defined
Slide 6: Customer Growth Through Brand and New Offerings
Customer Growth Through Brand and New Offerings Consumer Auto 4.3 million serviced units + Deepening existing (1) relationships Commercial Auto 18.5 thousand dealer relationships + New offerings + Accelerating deposit customer Retail Deposit 1.4 million customers growth = Wealth Management 235 Posit
Slide 7: Relentless Focus on Customers – Our Brand and Culture
Relentless Focus on Customers – Our Brand and Culture Simple, straightforward approach to banking – customer is at the core DO RIGHT TIRELESSLY INNOVATE OBSESS OVER THE CUSTOMER Do It Right Customer-centricity Digital Simple Build emotional relationship 24/7 human customer No branches = Great Rates
Slide 8: Strong Emotional Connection with Customers
Strong Emotional Connection with Customers Brand has resonated and provides foundation for product expansion Emotional connection continues to increase 73 77 2016 2017 Consumers’ love for Ally driven by: Sense of pride and making them feel smart Status they realize from banking with an innov
Slide 9: Expanding Bank Franchise
Expanding Bank Franchise A L LY A U T O A L LY I N V E S T INSURANCE DEPOSITS C O R P O R AT E FINANCE CASHBACK CARD Co-brand product(1) A L LY H O M E 9 (1) The Ally CashBack Credit Card is issued by TD Bank N.A.
Slide 10: Ally Bank Market Share Growth
Ally Bank Market Share Growth Ally outpacing direct bank market share without being top rate payer 7th 7th 15.1% 14.3% 8th 8th 13.4% 12.8% 9th 9th 11.9% 9.8% 11th 8.3% 8.0% 7.2% 7.6% 7.0% 6.9% 12th 6.2% 6.6% 6.1% 5.5% 2Q10 2Q11 2Q12 2Q13 2Q14 2Q15 2Q16 2Q17 Ally Bank market share of direct bank depo
Slide 11: Compounding Retail Deposit Growth
Compounding Retail Deposit Growth New and existing retail deposit customers fueling growth Retail Deposit Growth from New and Existing Customers ($ billions) $74.9B $6.2 $7.7 New Customer Growth $2.1 $6.2 $4.3 $3.5 $6.1 $1.3 $5.2 $0.5 $27.7B $2.0 $4.5 $2.1 $1.3 Existing Customer Growth 2011 2012 201
Slide 12: Stable Deposit Vintages
Stable Deposit Vintages Ally Bank’s retail deposit vintages have been stable over time Ally Retail Deposit Balances by Vintage ($ millions) $75,000 $60,000 $45,000 $30,000 $15,000 $0 Pre-2009 2009 2010 2011 2012 2013 2014 2015 2016 2017 12
Slide 13: Retail Deposit Customer Growth
Retail Deposit Customer Growth Accelerating retail deposit customer growth Retail Deposit Customer Growth (thousands) ~1,400 ~200 166 142 126 162 124 300 109 89 2009 2010 2011 2012 2013 2014 2015 2016 2017 est 13
Slide 14: Banking Dynamics: Long-Term Convergence of Models
Banking Dynamics: Long-Term Convergence of Models Move towards digital represents long-term tailwind Direct Banking Traditional Banking • Cost effective • Brick & Mortar ~$500 ~$5 • Fewer Products billion of • More products trillion of deposits(1) deposits(2) • Higher rates • Lower rates ~$4 trillio
Slide 15: Diverse Customer Demographics
Diverse Customer Demographics Retail deposit franchise positioned for growth Retail deposit customers 1.4 > 50% new customers from Millennial generation (YTD 2017) million in all 50 states ~$30 trillion estimated 95% Customer satisfaction(1) wealth transfer to Millennial generation over the
Slide 16: Value of Deposit Growth
Value of Deposit Growth Retail deposit growth drives strategic and financial path Entry point for new banking customers Reduce expensive capital markets funding Support smart asset growth 3Q 2013(1) 3Q 2017(1) Average Average Average Average ($ billions) Balance Yield Balance Yield $ Deposits(
Slide 17: Peer Deposit Pricing Changes and Balance Growth
Peer Deposit Pricing Changes and Balance Growth Strong deposit growth with modest rate change YoY Deposit Yield Change (basis points) (1) 19 17 17 16 16 15 15 14 14 14 Median 12 10 9 7 Peer 1 Peer 2 Peer 3 Peer 4 Peer 5 Peer 6 ALLY Peer 7 Peer 8 Peer 9 Peer 10 Peer 11 Peer 12 Peer 13 Balance Growth
Slide 18: Investment in Digital Capabilities
Investment in Digital Capabilities Direct Banks are growing deposits >95% Customers now interact with Ally more via 2.5x (1) of Ally’s customer mobile faster than the overall retail market interactions are digital than any other channel and growing Innovation to Drive Value Zellesm Real-time custome
Slide 19: Wrap Up
Wrap Up Focused on demonstrating resilient returns in auto finance through the cycle Deposit growth is a key driver of strategic and financial path Secular digital trends are on our side Developing new products to drive more value from banking franchise and position for long-term growth Buil
Slide 20: Supplemental
Supplemental CONFIDENTIAL 20
Slide 21: Notes on non-GAAP and other financial measures
Supplemental Notes on non-GAAP and other financial measures 1) Core original issue discount (Core OID) is a non-GAAP financial measure for OID, primarily related to bond exchange OID which excludes international operations and future issuances. 2) Core return on tangible common equity (Core ROTCE) i
Ally Financial — BancAnalysts Association of Boston Conference 2017 on 6ix