Slide 1: Ally Financial Inc. 2Q Earnings Review
Ally Financial Inc. 2Q Earnings Review Contact Ally Investor Relations at (866) 710 - 4623 or investor.relations@ally.com August 1, 2012
Slide 2: Forward-Looking Statements and Additional Information
2 2Q 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: Strategic Update and Outlook
3 2Q 2012 Preliminary Results Strategic Update and Outlook • ResCap bankruptcy process continues to move forward – Important initial requests have been granted by the court – ResCap continues to operate in the normal course – Ally no longer stalking horse bidder for ResCap’s HFS loan portfolio • Exp
Slide 4: Premier Auto Finance Franchise
4 2Q 2012 Preliminary Results Premier Auto Finance Franchise • Ally has made substantial progress transforming itself from a captive to a successful, market driven competitor – Demonstrated success of dealer centric business model – #1 provider of U.S. automotive financing • Agreements for subvented
Slide 5: 2Q 2012 Highlights
5 2Q 2012 Preliminary Results x 2Q retail deposit growth of $1.1 billion up nearly 10% YTD x Successfully launched mobile banking application x 60% of U.S. assets funded at Ally Bank Premier Auto Finance Franchise x Effectively pre - funded over 2 years of unsecured bond maturities x Nearly $10 bill
Slide 6: Results by Segment
6 2Q 2012 Preliminary Results Pre-Tax Income ($ millions) 2Q 12 1Q 12 2Q 11 1Q 12 2Q 11 North American Automotive Finance 631$ 442$ 559$ 189$ 72$ International Automotive Finance 72 45 69 27 3 Insurance 43 124 72 (81) (29) Global Automotive Services 746$ 611$ 700$ 135$ 46$ Mortgage Operations (ex. R
Slide 7: Second Quarter Results
7 2Q 2012 Preliminary Results ($ millions) 2Q 12 1Q 12 2Q 11 1Q 12 2Q 11 Net financing revenue (ex. OID) 892$ 786$ 972$ 107$ (80)$ Total other revenue (ex. OID) 753 780 813 (27) (60) Provision for loan losses 28 140 48 (112) (20) Controllable expenses (1) 672 719 696 (47) (25) Other noninterest expe
Slide 8: Ally Financial - Net Interest Margin
8 2Q 2012 Preliminary Results Ally Financial - Net Interest Margin $142 $155 $160 $163 2.9% 2.5% 1.9% 2.2% 1.5% 2.1% 1.6% 1.9% 2Q 10 3Q 10 4Q 10 1Q 11 2Q 11 3Q 11 4Q 11 1Q 12 2Q 12 Average Earning Assets ($B) NIM (ex. OID) Risk - adjusted NIM (ex. OID) Net Interest Margin • Net Interest Margin (“NIM
Slide 9: North American Automotive Finance
9 2Q 2012 Preliminary Results NAO Earning Asset Balances (EOP) ($ billions) $90.6 $90.2 $96.2 $102.1 $104.1 2Q 11 3Q 11 4Q 11 1Q 12 2Q 12 Consumer Commercial Key Financials ($ millions) 2Q 12 1Q 12 2Q 11 Net financing revenue 837$ 775$ 878$ Total other revenue 114 79 114 Total net revenue 951 854 99
Slide 10: North American Auto Finance - Key Metrics
10 2Q 2012 Preliminary Results ($ billions) 50% 60% 70% 80% 90% 0.0 10.0 20.0 30.0 3Q 10 4Q 10 1Q 11 2Q 11 3Q 11 4Q 11 1Q 12 2Q 12 Outstandings GM/Chrysler U.S. Floorplan Penetration % $34.1 $32.7 $31.5 $31.3 $32.5 $30.5 $30.8 $28.2 ($ billions) 0% 10% 20% 30% 40% 0.0 2.0 4.0 6.0 8.0 10.0 12.0 3Q 10
Slide 11: International Automotive Finance
11 2Q 2012 Preliminary Results International Consumer Auto Originations (1) ($ billions) $2.3 $2.6 $2.6 $2.3 $2.3 2Q 11 3Q 11 4Q 11 1Q 12 2Q 12 China Brazil Germany U.K. Mexico Other Key Financials ($ millions) 2Q 12 1Q 12 2Q 11 Net financing revenue 171$ 164$ 172$ Total other revenue 59 66 56 Total
Slide 12: Insurance
12 2Q 2012 Preliminary Results Key Financials ($ millions) 2Q 12 1Q 12 2Q 11 Insurance premiums, service revenue earned and other 384$ 386$ 413$ Insurance losses and loss adjustment expenses 205 155 221 Acquisition and underwriting expenses 183 189 190 Total underwriting income (4) 42 2 Investment i
Slide 13: Mortgage Operations
13 2Q 2012 Preliminary Results Key Financials - Ex. ResCap ($ millions) 2Q 12 1Q 12 2Q 11 Net financing revenue 41$ 47$ 55$ Gain on sale of mortgage loans, net 80 25 31 Other revenue (excluding gain on sale) 113 113 30 Total net revenue 234 185 116 Provision for loan losses 20 27 35 Noninterest expe
Slide 14: Ally Bank Franchise Growth
14 2Q 2012 Preliminary Results Brand Commitment (1) 77% 71% 56% 56% 55% 51% 41% 37% 23% 25% 35% 35% 37% 36% 39% 49% 4% 9% 9% 9% 13% 20% 14% 0% 20% 40% 60% 80% 100% Ally Bank ING Direct Wells Fargo Capital One Discover Bank JPM Chase Bank of America Citibank Many reasons to continue / none to change
Slide 15: Ally Financial Deposit Levels
15 2Q 2012 Preliminary Results Ally Financial Deposit Levels ($ billions) $24.6 $26.3 $27.7 $29.3 $30.4 $42.3 $44.3 $45.1 $47.2 $48.0 2Q 11 3Q 11 4Q 11 1Q 12 2Q 12 Ally Bank Retail Ally Bank Brokered ResMor Other Deposit Growth • Continued growth of Ally’s deposit base – Total deposit growth of $800
Slide 16: Debt Maturity Profile and Liquidity Position
16 2Q 2012 Preliminary Results Ally Financial Consolidated Unsecured Long-Term Debt Maturity Profile ($ billions) 2.0 7.9 0.5 0.4 0.3 1.1 5.8 4.5 1.5 20.4 3Q 12 4Q 12 1Q 13 2Q13 3Q 13 4Q 13 2014 2015 2016 2017+ Ally Financial Liquidity Position ($ billions) $25 $26 2Q 11 2Q 12 Parent Co. Liquidity U
Slide 17: Capital
17 2Q 2012 Preliminary Results Capital • Capital ratios remain largely unchanged post ResCap actions – Capital levels declined driven by $1.3 billion of ResCap related items – Risk weighted assets declined due to ResCap deconsolidation, offset somewhat by auto asset growth • Ally is well positioned
Slide 18: Asset Quality
18 2Q 2012 Preliminary Results Global Auto Delinquencies - Managed Retail Contract Amount $ Amount of Accruing Contracts Greater than 30 Days Past Due (millions) $871 $861 $937 $705 $845 1.48% 1.43% 1.47% 1.04% 1.23% 2Q 11 3Q 11 4Q 11 1Q 12 2Q 12 Delinquent Contracts $ % of Retail Contract $ Outstan
Slide 19: Conclusion
19 2Q 2012 Preliminary Results Conclusion • Competitively advantaged auto finance franchise – 2 nd highest quarter of originations since 2007 despite intense competition – U.S. diversified new originations increased 15% QoQ and 64% YoY • Strong asset generation capabilities – NAO earning asset growt
Slide 20: Supplemental Charts
Supplemental Charts
Slide 21: Corporate and Other
21 2Q 2012 Preliminary Results Key Financials ($ millions) 2Q 12 1Q 12 2Q 11 Net financing loss (1) (179)$ (218)$ (161)$ Total other revenue (21) 47 127 Total net loss (ex. OID) (200) (171) (34) Provision for loan losses (23) (12) (49) Noninterest expense (2) 147 148 114 Core pre-tax loss (323)$ (30
Slide 22: Liquidity Supplemental
22 2Q 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 $3.8 billion in
Slide 23: Notes on non-GAAP and other financial measures
23 2Q 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 24 for definitions. (2) Adjustments to net financing revenue (loss) and total other revenue (loss) include
Slide 24: Notes on non-GAAP and other financial measures
24 2Q 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") amortiza