Ally Financial Inc. · NYSE:ALLY
Ally Financial — Shareholder Meeting (April 2013)
25 slides from Ally Financial's shareholder meeting presentation, Apr 24, 2013
Slide 1: Ally Financial Inc. Annual Shareholders' Meeting
Ally Financial Inc. Annual Shareholders’ Meeting Contact Ally Investor Relations at (866) 710 - 4623 or investor.relations@ally.com April 25, 2013
Slide 2: Forward-Looking Statements and Additional Information
2 2013 Ally Annual Shareholders’ Meeting Forward - Looking Statements and Additional Information The following should be read in conjunction with the financial statements, notes and other information contained in the Compa ny’ s Annual Reports on Form 10 - K, Quarterly Reports on Form 10 - Q, and Cu
Slide 3: Ally Momentum – 2012 Key Accomplishments
3 2013 Ally Annual Shareholders’ Meeting Ally Momentum – 2012 Key Accomplishments x Full year 2012 net income of $1.2 billion vs. $157 million loss in 2011 – Full year core pre - tax income, excluding ResCap and repositioning items (1) , of $1.1 billion in 2012 vs. $865 million in 2011 x Strong and
Slide 4: Strategic Transformation – International Sale Update
4 2013 Ally Annual Shareholders’ Meeting International Entities Summary (1) ($ billions) Business Closing Date Assets Tangible Book Value (2) Proceeds (3) Premium to TBV Canada (4) February 1, 2013 12.0$ 3.1$ 3.7$ 0.6$ Europe (ex. France and Portugal), Mexico, Colombia and Chile April 1, 2013 11.3 2
Slide 5: Strategic Transformation – Mortgage Update
5 2013 Ally Annual Shareholders’ Meeting Strategic Transformation – Mortgage Update ResCap • Bankruptcy process continues to move forward – Asset sales to Walter, Ocwen and Berkshire Hathaway closed ▪ Sales generated $4.4 billion in aggregate proceeds ▪ Provides significant value for the ResCap esta
Slide 6: Ally Momentum
6 2013 Ally Annual Shareholders’ Meeting Ally Momentum Cost of Funds improved 120 bps since 2009 Strengthening Capital Ratios expected to improve with strategic actions Steady Retail Deposit Growth up 107% since 2009 U.S. Auto Earning Asset Growth (EOP - $B) Arrows indicate YoY Growth 2009 2010 2011
Slide 7: Financial Results
7 2013 Ally Annual Shareholders’ Meeting ($ millions) FY 2012 FY 2011 Inc/(Dec) Net financing revenue (ex. OID) 2,228$ 2,036$ 192$ Total other revenue (ex. OID) 2,595 2,338 257 Provision for loan losses 328 161 167 Controllable expenses (1) 2,222 2,105 117 Other noninterest expenses 1,175 1,243 (68)
Slide 8: Ally Financial - Net Interest Margin
8 2013 Ally Annual Shareholders’ Meeting Ally Financial - Net Interest Margin $119 $132 $135 $136 5.30% 4.31% 4.42% 4.52% 1.70% 1.25% 1.60% 1.91% 3.66% 3.18% 2.95% 2.71% 1Q 11 2Q 11 3Q 11 4Q 11 1Q 12 2Q 12 3Q 12 4Q 12 Average Earning Assets ($B) Earning Asset Yield NIM (ex. OID) Cost of Funds (ex. O
Slide 9: Asset Quality
9 2013 Ally Annual Shareholders’ Meeting (30+ DPD) $682 $783 $543 $689 $836 $1,073 1.58% 1.68% 1.10% 1.36% 1.59% 2.00% 3Q 11 4Q 11 1Q 12 2Q 12 3Q 12 4Q 12 Delinquent Contracts ($M) Delinquency Rate Consolidated Annualized Net Charge - Offs Reserve C overage of Net Charge - Offs Asset Quality U.S. Re
Slide 10: Results by Segment
10 2013 Ally Annual Shareholders’ Meeting • Automotive Finance – positive results driven by earning asset and net financing revenue growth offsetting competitive pressure • Insurance – impacted by weather related losses and more normalized investment gains • Mortgage Operations – strong year driven
Slide 11: Auto Finance – Results
11 2013 Ally Annual Shareholders’ Meeting • Auto finance reported pre - tax income of $1,389 million, up 4% YoY – Net financing revenue up primarily driven by growth in consumer and commercial portfolios – Provision for loan losses up $164 million YoY primarily driven by asset growth • $38.7 billion
Slide 12: Auto Finance – Key Metrics
12 2013 Ally Annual Shareholders’ Meeting ($ billions) $21.6 $27.0 $28.9 $32.8 2009 2010 2011 2012 ($ billions) $18.4 $31.6 $40.2 $38.7 0.0 5.0 10.0 15.0 20.0 25.0 30.0 35.0 40.0 45.0 2009 2010 2011 2012 Retail - New Retail - Used Lease ($ billions) $59.4 $60.0 $68.2 $75.3 2009 2010 2011 2012 On Bal
Slide 13: Insurance
13 2013 Ally Annual Shareholders’ Meeting Insurance • Insurance operations pre - tax income of $160 million was down from 2011 – Underwriting income decreased $60 million due primarily to lower net premium revenue and higher weather losses related to Superstorm Sandy – Investment income of $124 mill
Slide 14: Mortgage Operations
14 2013 Ally Annual Shareholders’ Meeting Mortgage Operations • Mortgage Operations (ex - ResCap) earned pre - tax income of $639 million – Gain on sale revenue up $201 million YoY primarily due to strong refinancing activity – Other revenue up driven by positive net servicing revenue and mortgage b
Slide 15: Ally Bank Deposit Franchise
15 2013 Ally Annual Shareholders’ Meeting Ally Bank Deposit Levels (EOP) and Average Retail Interest Rate ($ billions) $16.9 $21.8 $27.7 $35.0 $10.1 $10.0 $9.9 $9.9 $27.0 $31.8 $37.6 $45.0 2.81% 1.82% 1.57% 1.39% 2009 2010 2011 2012 Ally Bank Retail Ally Bank Brokered Average Retail Interest Rate Ex
Slide 16: Strong Ally Bank Brand Loyalty
16 2013 Ally Annual Shareholders’ Meeting Ally Bank Customer Satisfaction (Full Year Average) (1) 88% 90% 92% 2010 2011 2012 Retail CD Balance Retention (1) ($ billions) 68% 84% 90% 91% $0.0 $3.0 $6.0 $9.0 $12.0 2009 2010 2011 2012 CD Balances Up for Renewal CD Balances Retained Retention Rate Ally
Slide 17: Ally Financial Liquidity Position
17 2013 Ally Annual Shareholders’ Meeting Ally Financial Liquidity Position ($ billions) $27 $16 $14 $7 4Q 11 4Q 12 Parent Co. Liquidity Unsecured Bond Maturities (next 24 months) Secured Debt 35% Unsecured Debt 28% Deposits 37% Secured Debt 37% Unsecured Debt 38% Deposits 24% • Time to required fun
Slide 18: Capital
18 2013 Ally Annual Shareholders’ Meeting Capital • Ally continues to maintain strong levels of capital, particularly relative to the risk profile of its assets • Ally’s Tier 1 Common Ratio fell below minimums specified under CCAR and DFAST stress tests – Results continue to be impacted by Fed assum
Slide 19: 2013 Priorities
19 2013 Ally Annual Shareholders’ Meeting 2013 Priorities • Complete strategic transformation and capitalize on momentum created in 2012 • Continue to create significant value for our auto dealers – Comprehensive products and services – Continue to innovate – Focus on expanding profitable dealer rel
Slide 20: Supplemental Charts
Supplemental Charts
Slide 21: Corporate and Other Key Financials
21 2013 Ally Annual Shareholders’ Meeting Key Financials ($ millions) FY 2012 FY 2011 Inc/(Dec) Net financing loss (1) (812)$ (760)$ (52)$ Total other revenue 90 226 (136) Total net loss (ex. OID) (722) (534) (188) Provision for loan losses (10) (50) 40 Noninterest expense (1) 378 460 (82) Core pre-
Slide 22: Discontinued Operations Supplemental
22 2013 Ally Annual Shareholders’ Meeting Discontinued Operations Supplemental Impact of Discontinued Operations, pretax ($ millions) FY 2012 FY 2011 Canada 172$ 299$ International Auto 365 264 Insurance 86 145 Mortgage (12) (38) Corporate and Other 333 299 Consolidated pretax 944$ 969$ Tax expense
Slide 23: Liquidity Supplemental
23 2013 Ally Annual Shareholders’ Meeting Liquidity Supplemental (1) Parent company liquidity is defined as our consolidated operations less Ally Bank, ResCap (deconsolidated as of 5/14/12) and les s the subsidiaries of Ally Insurance Holding Company (2) Includes UST, Agency debt and Agency MBS (3)
Slide 24: Notes on non-GAAP and other financial measures
24 2013 Ally Annual Shareholders’ Meeting Notes on non - GAAP and other financial measures Supplemental (1) Core pre - tax income (loss) and controllable expenses are non GAAP financial measures. See slide 25 for definitions $ in millions GAAP OID & Repositioning Items ResCap Related Adjustments Pro
Slide 25: Notes on non-GAAP and other financial measures
25 2013 Ally Annual Shareholders’ Meeting Notes on non - GAAP and other financial measures Supplemental 1) Core pre - tax income (loss) is a non - GAAP financial measure. It is defined as income (loss) from continuing operations before taxes and primarily bond exchange original issue discount ("OID"