Ally Financial Inc. · NYSE:ALLY
Ally Financial — Q3 2012 Earnings Presentation
23 slides from Ally Financial's earnings presentation, Nov 2, 2012
Slide 1: Ally Financial Inc. 3Q Earnings Review
Ally Financial Inc. 3Q Earnings Review Contact Ally Investor Relations at (866) 710 - 4623 or investor.relations@ally.com November 2, 2012
Slide 2: Forward-Looking Statements and Additional Information
2 3Q 2012 Preliminary Results 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 2011 Annual Report on Form 10 - K, Quarterly Reports on Form 10 - Q, and Current R
Slide 3: International Sale Update
3 3Q 2012 Preliminary Results International Sale Update • Significant progress on sale of international entities – Signed definitive agreement on October 18 to sell ABA Seguros to ACE Ltd. – Signed definitive agreement on October 23 to sell Canadian entities to Royal Bank of Canada – Sales expected
Slide 4: ResCap Update
4 3Q 2012 Preliminary Results ResCap Update • The ResCap bankruptcy case continues to move forward as anticipated – ResCap continues to operate in the normal course of business – The Bankruptcy Court approved a stipulation under which ResCap will continue to perform under the subservicing agreement
Slide 5: Third quarter highlights: auto finance franchise and Ally Bank
5 3Q 2012 Preliminary Results x 3Q retail deposit growth of $1.7 billion – retail deposits up 22% YoY x Number of Ally Bank retail customer accounts increased 24% YoY x Ally Bank recognized ‘Best Online Bank’, ‘Best One - Year CD’ and ‘One of the Best Savings Accounts’, MONEY® Magazine October 2012
Slide 6: Third quarter results summary
6 3Q 2012 Preliminary Results ($ millions) 3Q 12 2Q 12 3Q 11 2Q 12 3Q 11 Net financing revenue (ex. OID) 853$ 892$ 839$ (39)$ 14$ Total other revenue 936 753 720 183 216 Provision for loan losses 116 28 48 88 68 Controllable expenses (1) 719 672 589 47 130 Other noninterest expenses 395 413 378 (18)
Slide 7: Net Interest Margin
7 3Q 2012 Preliminary Results Net Interest Margin • Net Interest Margin (“NIM”) (1) down slightly this quarter – Earning asset yields lower due to holding higher cash balances in anticipation of TLGP repayment – Cost of funds continues to decline – Impact from lease remarketing gains drove higher ma
Slide 8: Pre-Tax Income Results by Segment
8 3Q 2012 Preliminary Results Pre-Tax Income ($ millions) 3Q 12 2Q 12 3Q 11 2Q 12 3Q 11 North American Automotive Finance 510$ 631$ 551$ (121)$ (41)$ Insurance 33 43 111 (10) (78) International Automotive Finance 69 72 89 (3) (20) Global Automotive Services 612$ 746$ 751$ (134)$ (139)$ Mortgage Oper
Slide 9: NAO Net Financing Revenue
9 3Q 2012 Preliminary Results NAO Net Financing Revenue ($ millions) $878 $755 $704 $775 $837 $856 2Q 11 3Q 11 4Q 11 1Q 12 2Q 12 3Q 12 Key Financials ($ millions) 3Q 12 2Q 12 3Q 11 Net financing revenue 856$ 837$ 755$ Total other revenue 75 114 126 Total net revenue 931 951 881 Provision for loan lo
Slide 10: North American Auto Finance – Key Metrics
10 3Q 2012 Preliminary Results ($ billions) 4Q 10 1Q 11 2Q 11 3Q 11 4Q 11 1Q 12 2Q 12 3Q 12 Retail - New Retail - Used Lease $10.5 $9.7 $9.2 $10.0 $9.5 $11.6 $9.3 $9.6 (% of $ originations) 28% 14% 40% 29% 3% 6% 15% 27% 14% 24% 4Q 10 1Q 11 2Q 11 3Q 11 4Q 11 1Q 12 2Q 12 3Q 12 New Subvented New Standa
Slide 11: Insurance Key Financials
11 3Q 2012 Preliminary Results Key Financials ($ millions) 3Q 12 2Q 12 3Q 11 Insurance premiums, service revenue earned and other 377$ 384$ 403$ Insurance losses and loss adjustment expenses 151 205 162 Acquisition and underwriting expenses 181 183 174 Total underwriting income 45 (4) 67 Investment
Slide 12: International Automotive Finance
12 3Q 2012 Preliminary Results International Consumer Auto Originations (1) ($ billions) $2.3 $2.6 $2.6 $2.3 $2.3 $2.2 2Q 11 3Q 11 4Q 11 1Q 12 2Q 12 3Q 12 China Brazil Germany U.K. Mexico Other Key Financials ($ millions) 3Q 12 2Q 12 3Q 11 Net financing revenue 166$ 171$ 167$ Total other revenue 53
Slide 13: Mortgage Operations
13 3Q 2012 Preliminary Results Key Financials - Ex. ResCap ($ millions) 3Q 12 2Q 12 3Q 11 Net financing revenue 53$ 41$ 67$ Gain on sale of mortgage loans, net 139 80 27 Other revenue (excluding gain on sale) 307 113 51 Total net revenue 499 234 145 Provision for loan losses 6 20 29 Noninterest expe
Slide 14: Ally Bank Deposit Franchise
14 3Q 2012 Preliminary Results Ally Bank Deposit Levels ($ billions) $24.6 $26.3 $27.7 $29.3 $30.4 $32.1 $34.5 $36.2 $37.6 $39.2 $40.3 $42.0 2Q 11 3Q 11 4Q 11 1Q 12 2Q 12 3Q 12 Ally Bank Retail Ally Bank Brokered Ally Bank Deposit Franchise • Continued growth of Ally’s deposit base – $1.7 billion of
Slide 15: Debt Maturity Profile and Liquidity Position
15 3Q 2012 Preliminary Results Ally Financial Consolidated Unsecured Long-Term Debt Maturity Profile ($ billions) 7.9 0.5 0.4 0.3 1.1 5.9 5.1 1.5 20.4 4Q 12 1Q 13 2Q 13 3Q 13 4Q 13 2014 2015 2016 2017+ Ally Financial Liquidity Position ($ billions) $26 $26 $14 $14 3Q 11 3Q 12 Parent Co. Liquidity Un
Slide 16: Capital
16 3Q 2012 Preliminary Results ($ billions) 9/30/2012 6/30/2012 9/30/2011 Tier 1 Capital 20.5$ 20.2$ 21.5$ Tier 1 Common Capital 11.0$ 10.8$ 12.0$ Total Risk-Based Capital 22.0$ 21.7$ 23.2$ Tangible Common Equity 11.3$ 10.9$ 12.3$ Tangible Assets 182.0$ 178.1$ 181.4$ Risk-Weighted Assets 150.3$ 147.
Slide 17: Consolidated Asset Quality Trends
17 3Q 2012 Preliminary Results Global Auto Delinquencies - Managed Retail Contract Amount 30+ Days Past Due Accruing ($ millions) $871 $861 $937 $705 $845 $988 1.48% 1.43% 1.47% 1.04% 1.23% 1.39% 2Q 11 3Q 11 4Q 11 1Q 12 2Q 12 3Q 12 Delinquent Contracts $ Delinquency % Allowance Balance as % of Net C
Slide 18: Ally is Well Positioned for the Future
18 3Q 2012 Preliminary Results Ally is Well Positioned for the Future Winning Combination of Premier U.S. Auto Finance Franchise and Leading Direct Bank • Preeminent auto finance franchise – Demonstrated strong positioning with dealer customers – Improving profitability of origination mix – Integrat
Slide 19: Supplemental Charts
Supplemental Charts
Slide 20: Corporate and Other Key Financials
20 3Q 2012 Preliminary Results Key Financials ($ millions) 3Q 12 2Q 12 3Q 11 Net financing loss (1) (244)$ (179)$ (182)$ Total other revenue 19 (21) 40 Total net loss (ex. OID) (225) (200) (142) Provision for loan losses (5) (23) (4) Noninterest expense (2) 187 147 81 Core pre-tax loss (407)$ (323)$
Slide 21: Liquidity Supplemental
21 3Q 2012 Preliminary Results Liquidity Supplemental (1) Parent defined as Ally Consolidated less Ally Bank, ResCap (deconsolidated as of 05/14/12) and Insurance (not shown) (2) Includes UST, Agency debt and Agency MBS (3) Includes equal allocation of shared unused capacity totaling $4.0 billion in
Slide 22: Notes on non-GAAP and other financial measures
22 3Q 2012 Preliminary Results Notes on non - GAAP and other financial measures Supplemental (1) Core pre - tax income (loss) and controllable expenses are non GAAP financial measures. See page 23 for definitions. (2) Adjustments to net financing revenue (loss) and total other revenue (loss) include
Slide 23: Notes on non-GAAP and other financial measures
23 3Q 2012 Preliminary Results 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") amortizat