Ally Financial Inc. · NYSE:ALLY
Ally Financial — Q1 2025 Earnings Presentation
30 slides from Ally Financial's earnings presentation, Apr 17, 2025
Slide 1: Ally Financial Inc. 1Q 2025 Earnings Review
Ally Financial Inc. 1Q 2025 Earnings Review April 17, 2025 Contact Ally Investor Relations at (866) 710-4623 or investor.relations@ally.com
Slide 2: Forward-Looking Statements and Additional Information
1Q 2025 Preliminary Results 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 C
Slide 3: GAAP and Core Results: Quarterly
1Q 2025 Preliminary Results GAAP and Core Results: Quarterly Quarterly Trend ($ millions, except per share data) 1Q 25 4Q 24 3Q 24 2Q 24 1Q 24 GAAP net income (loss) attributable to common shareholders (NIAC) $ (253) $ 81 $ 171 $ 191 $ 115 Core net income attributable to common shareholders (1)(2) $
Slide 4: Quarterly Highlights
1Q 2025 Preliminary Results Quarterly Highlights Financial Highlights ($0.82) ($284M) (8.6%) $1.5B 3.35% GAAP Net GAAP EPS GAAP Pre-tax Return on Equity NIM ex. OID(2) Revenue $0.58 $247M 8.3% $2.1B 9.5% Adj. Net Adjusted EPS(1) Core Pre-tax(1) Core ROTCE(1) CET1 Revenue(1) Key Messages Power of foc
Slide 5: Market Leading Franchises
1Q 2025 Preliminary Results Market Leading Franchises Focusing our resources and capital on core businesses to drive shareholder value Dealer Financial Services Corporate Finance Auto Finance Insurance 25-year Cycle Tested Business $10.2B 3.8M 6K+ 2.2 10% 23% Consumer Consumer U.S. & Canadian U.S. F
Slide 6: 1Q 2025 Financial Results
1Q 2025 Preliminary Results 1Q 2025 Financial Results Consolidated Income Statement - Quarterly Results Increase / (Decrease) vs. ($ millions; except per share data) 1Q 25 4Q 24 1Q 24 4Q 24 1Q 24 Net financing revenue $ 1,478 $ 1,509 $ 1,468 $ (31) $ 10 Core OID (1) 16 15 13 1 2 Net financing revenu
Slide 7: Balance Sheet and Net Interest Margin
1Q 2025 Preliminary Results Balance Sheet and Net Interest Margin 1Q '25 4Q '24 1Q '24 Average Average Average Balance Yield Balance Yield Balance Yield Retail Auto Loans (ex. hedge) $ 83,701 9.11% $ 83,554 9.09% $ 84,056 8.65% Memo: Impact from hedges 0.10% 0.18% 0.42% Retail Auto Loans (inc. hedge
Slide 8: Capital
1Q 2025 Preliminary Results Capital • 1Q‘25 CET1 ratio of 9.5% and TCE / TA ratio of 6.0%(1) Capital Ratios and Risk-Weighted Assets ($ billions) • $3.7B of CET1 capital above 7.1% Regulatory Min. + SCB Note: 1Q’25 capital ratios exclude additional 20bps of CET1 from Card sale that closed on 4/1 • S
Slide 9: Asset Quality: Key Metrics
1Q 2025 Preliminary Results Asset Quality: Key Metrics Consolidated Net Charge-Offs (NCOs)(1) Retail Auto Net Charge-Offs (NCOs) +13bps +59bps +39bps YoY (15bps) YoY YoY 1.55% 1.59% Annualized YoY 1.50% 1.50% NCO Rate 2.27% 2.34% +49bps 2.24% Annualized YoY 2.12% NCO Rate 1.26% 1.81% $539 $517 $543
Slide 10: Asset Quality: Coverage and Reserves
1Q 2025 Preliminary Results Asset Quality: Coverage and Reserves Consolidated and portfolio-level reserves are balanced; U.S. macroeconomic outlook and consumer health remain watch items • Consolidated coverage rate of 2.55%, down 18bps QoQ primarily driven by Card reserve release – Consolidated cov
Slide 11: Auto Finance
1Q 2025 Preliminary Results Auto Finance Increase / (Decrease) vs. • Auto pre-tax income of $375 million Key Financials ($ millions) 1Q 25 4Q 24 1Q 24 – Pre-tax income down YoY and QoQ, primarily driven by Net financing revenue $ 1,266 $ (78) $ (108) lower lease gains and lower commercial assets Tot
Slide 12: Insurance
1Q 2025 Preliminary Results Insurance Increase / (Decrease) vs. • Insurance pre-tax income of $2 million and core Key Financials ($ millions) 1Q 25 4Q 24 1Q 24 pre-tax income of $17 million(1) Premiums, service revenue earned and other income $ 368 $ (4) $ 19 – $368 million of earned premiums, up $1
Slide 13: Corporate Finance
1Q 2025 Preliminary Results Corporate Finance • Corporate Finance pre-tax income of $76 million Increase / (Decrease) vs. Key Financials ($ millions) 1Q 25 4Q 24 1Q 24 – Net Financing Revenue of $104 million, down QoQ, driven by Net financing revenue $ 104 $ (11) $ (16) elevated amortized fees in th
Slide 14: 2025 Financial Outlook
1Q 2025 Preliminary Results 2025 Financial Outlook No change versus prior guidance 2025 Outlook Net Interest Margin (ex. OID)(1) 3.40% - 3.50% Adjusted Other Revenue(1) Flat YoY Retail Auto NCO 2.00% - 2.25% Consolidated NCO 1.35% - 1.50% Adjusted Noninterest Flat YoY Expense(1) Average Earning Asse
Slide 15: Supplemental
Supplemental ally do it right.
Slide 16: Results By Segment
Supplemental 1Q 2025 Preliminary Results Results By Segment Results by Segment and GAAP to Core Pre-tax income Walk QUARTERLY TREND Increase/(Decrease) vs. ($ millions) 1Q 25 4Q 24 1Q 24 4Q 24 1Q 24 Automotive Finance $ 375 $ 397 $ 480 $ (22) $ (105) Insurance 2 36 70 (34) (68) Dealer Financial Serv
Slide 17: Corporate and Other
Supplemental 1Q 2025 Preliminary Results Corporate and Other • Corporate and Other includes the impacts of Ally Corporate & Other Results Increase/(Decrease) vs. Invest, Mortgage, Credit Card, and in 1Q’24, Ally ($ millions) Key Financials 1Q 25 4Q 24 1Q 24 Lending Net financing revenue $ 78 $ 59 $
Slide 18: Funding and Liquidity
Supplemental 1Q 2025 Preliminary Results Funding and Liquidity Core funded with stable deposits and strong liquidity position Funding Composition Total Available Liquidity (End of Period) ($ billions) Unsecured Debt Cash and Equivalents FHLB / Other FHLB Unused Pledged Borrowing Capacity Secured Deb
Slide 19: Interest Rate Risk
Supplemental 1Q 2025 Preliminary Results Interest Rate Risk Net Financing Revenue Sensitivity Analysis(1) ($ millions) 1Q 25 4Q 24 Gradual (2) Instantaneous Gradual (2) Instantaneous -100 bp $ (23) $ 25 $ (23) $ 4 +100 bp $ (10) $ (121) $ 14 $ (86) Stable rate environment n/m $ (51) n/m $ (196) (1)
Slide 20: Notes on Non-GAAP Financial Measures
Supplemental 1Q 2025 Preliminary Results Notes on Non-GAAP Financial Measures 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 GAAP measures: Accelerated issu
Slide 21: Notes on Non-GAAP Financial Measures
Supplemental 1Q 2025 Preliminary Results Notes on Non-GAAP Financial Measures 7) Adjusted tangible book value per share (Adjusted TBVPS) is a non-GAAP financial measure that reflects the book value of equity attributable to shareholders even if Core OID balance were accelerated immediately through t
Slide 22: Notes on Non-GAAP Financial Measures
Supplemental 1Q 2025 Preliminary Results Notes on Non-GAAP Financial Measures 13) 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 equi
Slide 23: Notes on Other Financial Measures
Supplemental 1Q 2025 Preliminary Results Notes on Other Financial Measures 1) Change in fair value of equity securities impacts the Insurance, Corporate Finance and Corporate and Other segments. The change reflects fair value adjustments to equity securities that are reported at fair value. Manageme
Slide 24: Additional Notes
Supplemental 1Q 2025 Preliminary Results Additional Notes Page – 5 | Market Leading Franchises (1) Estimated Retail Auto Originated Yield is a forward-looking financial measure. See page 23 for details. (2) Gross Revenue Yield expressed as gross interest income plus other revenue divided by average
Slide 25: Additional Notes
Supplemental 1Q 2025 Preliminary Results Additional Notes Page – 17 | Corporate and Other (2) Repositioning and other are primarily related to the extinguishment of high-cost legacy debt, strategic activities, restructuring, and significant other one-time items, as applicable for respective periods
Slide 26: GAAP to Core: Adjusted EPS
Supplemental 1Q 2025 Preliminary Results GAAP to Core: Adjusted EPS Adjusted Earnings per Share ("Adjusted EPS") QUARTERLY TREND 1Q 25 4Q 24 3Q 24 2Q 24 1Q 24 Numerator ($ millions) GAAP net income (loss) attributable to common shareholders $ (253) $ 81 $ 171 $ 191 $ 115 Discontinued operations, net
Slide 27: GAAP to Core: Core ROTCE
Supplemental 1Q 2025 Preliminary Results GAAP to Core: Core ROTCE Core Return on Tangible Common Equity ("Core ROTCE") QUARTERLY TREND 1Q 25 4Q 24 3Q 24 2Q 24 1Q 24 Numerator ($ millions) GAAP net income (loss) attributable to common shareholders $ (253) $ 81 $ 171 $ 191 $ 115 Discontinued operation
Slide 28: GAAP to Core: Adjusted TBVPS
Supplemental 1Q 2025 Preliminary Results GAAP to Core: Adjusted TBVPS Adjusted Tangible Book Value per Share ("Adjusted TBVPS") QUARTERLY TREND 1Q 25 4Q 24 3Q 24 2Q 24 1Q 24 Numerator ($ billions) GAAP shareholder's equity $ 14.2 $ 13.9 $ 14.4 $ 13.7 $ 13.6 less: Preferred equity (2.3) (2.3) (2.3) (
Slide 29: GAAP to Core: Adjusted Efficiency Ratio
Supplemental 1Q 2025 Preliminary Results GAAP to Core: Adjusted Efficiency Ratio Adjusted Efficiency Ratio QUARTERLY TREND 1Q 25 4Q 24 3Q 24 2Q 24 1Q 24 Numerator ($ millions) GAAP noninterest expense $ 1,634 $ 1,360 $ 1,225 $ 1,286 $ 1,308 Insurance expense (392) (343) (365) (405) (340) Repositioni
Slide 30: Non-GAAP Reconciliations
Supplemental 1Q 2025 Preliminary Results Non-GAAP Reconciliations ($ millions) QUARTERLY TREND Net Financing Revenue (ex. Core OID) 1Q 25 4Q 24 3Q 24 2Q 24 1Q 24 GAAP Net Financing Revenue $ 1,478 $ 1,509 $ 1,520 $ 1,517 $ 1,468 Core OID 16 15 14 14 13 Net Financing Revenue (ex. Core OID) [a] $ 1,49