Ally Financial Inc. · NYSE:ALLY
Ally Financial — Q1 2023 Earnings Presentation
27 slides from Ally Financial's earnings presentation, Apr 19, 2023
Slide 1: First Quarter 2023 Financial Supplement
Exhibit 99.3 FIRST QUARTER 2023 FINANCIAL SUPPLEMENT
Slide 2: Forward-Looking Statements and Additional Information
ALLY FINANCIAL INC. FORWARD-LOOKING STATEMENTS AND ADDITIONAL INFORMATION This document 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 Repor
Slide 3: Table of Contents
ALLY FINANCIAL INC. TABLE OF CONTENTS Page(s) Consolidated Results Consolidated Financial Highlights 4 Consolidated Income Statement 5 Consolidated Period-End Balance Sheet 6 Consolidated Average Balance Sheet 7 Segment Detail Segment Highlights 8 Automotive Finance 9-10 Insurance 11 Mortgage Financ
Slide 4: Consolidated Financial Highlights
ALLY FINANCIAL INC. CONSOLIDATED FINANCIAL HIGHLIGHTS ($ in millions, shares in thousands) QUARTERLY TRENDS CHANGE VS. Selected Income Statement Data 1Q 23 4Q 22 3Q 22 2Q 22 1Q 22 4Q 22 1Q 22 Net financing revenue $ 1,602 $ 1,674 $ 1,719 $ 1,764 $ 1,693 $ (72) $ (91) Core OID 11 11 11 10 10 — 2 (1)
Slide 5: Consolidated Income Statement
ALLY FINANCIAL INC. CONSOLIDATED INCOME STATEMENT ($ in millions) QUARTERLY TRENDS CHANGE VS. 1Q 23 4Q 22 3Q 22 2Q 22 1Q 22 4Q 22 1Q 22 Financing revenue and other interest income Interest and fees on finance receivables and loans $ 2,575 $ 2,423 $ 2,120 $ 1,842 $ 1,714 $ 152 $ 861 Interest on loans
Slide 6: Consolidated Period-End Balance Sheet
ALLY FINANCIAL INC. CONSOLIDATED PERIOD-END BALANCE SHEET ($ in millions) QUARTERLY TRENDS CHANGE VS. Assets 1Q 23 4Q 22 3Q 22 2Q 22 1Q 22 4Q 22 1Q 22 Cash and cash equivalents Noninterest-bearing $ 554 $ 542 $ 638 $ 801 $ 470 $ 12 $ 84 Interest-bearing 9,226 5,029 4,366 3,366 3,462 4,197 5,764 Tota
Slide 7: Consolidated Average Balance Sheet
ALLY FINANCIAL INC. (1) CONSOLIDATED AVERAGE BALANCE SHEET ($ in millions) QUARTERLY TRENDS CHANGE VS. Assets 1Q 23 4Q 22 3Q 22 2Q 22 1Q 22 4Q 22 1Q 22 Interest-bearing cash and cash equivalents $ 5,731 $ 4,129 $ 3,627 $ 3,761 $ 4,027 $ 1,602 $ 1,704 Investment securities and other earning assets 32
Slide 8: Segment Highlights
ALLY FINANCIAL INC. SEGMENT HIGHLIGHTS ($ in millions) QUARTERLY TRENDS CHANGE VS. Pre-tax Income / (Loss) 1Q 23 4Q 22 3Q 22 2Q 22 1Q 22 4Q 22 1Q 22 Automotive Finance $ 442 $ 437 $ 488 $ 600 $ 725 $ 5 $ (283) Insurance 92 101 (30) (122) 13 (9) 79 Dealer Financial Services 534 538 458 478 738 (4) (2
Slide 9: Automotive Finance - Condensed Financial Statements
ALLY FINANCIAL INC. AUTOMOTIVE FINANCE - CONDENSED FINANCIAL STATEMENTS ($ in millions) QUARTERLY TRENDS CHANGE VS. Income Statement 1Q 23 4Q 22 3Q 22 2Q 22 1Q 22 4Q 22 1Q 22 Net financing revenue Consumer $ 1,576 $ 1,555 $ 1,461 $ 1,362 $ 1,302 $ 21 $ 274 Commercial 299 252 189 142 129 47 170 Loans
Slide 10: Automotive Finance - Key Statistics
ALLY FINANCIAL INC. AUTOMOTIVE FINANCE - KEY STATISTICS QUARTERLY TRENDS CHANGE VS. 1Q 23 4Q 22 3Q 22 2Q 22 1Q 22 4Q 22 1Q 22 (1) U.S. Consumer Originations ($ in billions) Retail standard - new vehicle GM $ 1.0 $ 1.2 $ 1.2 $ 1.1 $ 0.9 $ (0.2) $ 0.1 Retail standard - new vehicle Stellantis 0.7 0.7 0
Slide 11: Insurance - Condensed Financial Statements and Key Statistics
ALLY FINANCIAL INC. INSURANCE - CONDENSED FINANCIAL STATEMENTS AND KEY STATISTICS ($ in millions) QUARTERLY TRENDS CHANGE VS. Income Statement (GAAP View) 1Q 23 4Q 22 3Q 22 2Q 22 1Q 22 4Q 22 1Q 22 Net financing revenue (1) Total interest and fees on finance receivables and loans $ 2 $ 2 $ 2 $ 2 $ 3
Slide 12: Mortgage Finance - Condensed Financial Statements
ALLY FINANCIAL INC. MORTGAGE FINANCE - CONDENSED FINANCIAL STATEMENTS ($ in millions) QUARTERLY TRENDS CHANGE VS. Income Statement 1Q 23 4Q 22 3Q 22 2Q 22 1Q 22 4Q 22 1Q 22 Net financing revenue Total financing revenue and other interest income $ 153 $ 155 $ 151 $ 139 $ 130 $ (2) $ 23 Interest expen
Slide 13: Corporate Finance - Condensed Financial Statements
ALLY FINANCIAL INC. CORPORATE FINANCE - CONDENSED FINANCIAL STATEMENTS ($ in millions) QUARTERLY TRENDS CHANGE VS. Income Statement 1Q 23 4Q 22 3Q 22 2Q 22 1Q 22 4Q 22 1Q 22 Net financing revenue Total financing revenue and other interest income $ 234 $ 199 $ 148 $ 104 $ 95 $ 35 $ 139 Interest expen
Slide 14: Corporate and Other - Condensed Financial Statements
ALLY FINANCIAL INC. CORPORATE AND OTHER - CONDENSED FINANCIAL STATEMENTS ($ in millions) QUARTERLY TRENDS CHANGE VS. Income Statement 1Q 23 4Q 22 3Q 22 2Q 22 1Q 22 4Q 22 1Q 22 Net financing revenue Total financing revenue and other interest income 585 501 384 276 223 84 362 Interest expense 488 329
Slide 15: Credit Related Information
ALLY FINANCIAL INC. CREDIT RELATED INFORMATION $ in millions QUARTERLY TRENDS CHANGE VS. (1) Asset Quality - Consolidated 1Q 23 4Q 22 3Q 22 2Q 22 1Q 22 4Q 22 1Q 22 Ending loan balance $ 136,302 $ 135,745 $ 132,450 $ 128,450 $ 125,358 $ 557 $ 10,944 30+ Accruing DPD $ 2,834 $ 3,128 $ 2,608 $ 2,198 $
Slide 16: Credit Related Information, Continued
ALLY FINANCIAL INC. CREDIT RELATED INFORMATION, CONTINUED ($ in millions) (1) Automotive Finance CHANGE VS. QUARTERLY TRENDS Consumer 1Q 23 4Q 22 3Q 22 2Q 22 1Q 22 4Q 22 1Q 22 Allowance for loan losses $ 3,022 $ 3,020 $ 2,993 $ 2,885 $ 2,763 $ 2 $ 259 (2) Total consumer loans $ 83,640 $ 83,286 $ 83,
Slide 17: Capital
ALLY FINANCIAL INC. CAPITAL ($ in billions) QUARTERLY TRENDS CHANGE VS. Capital 1Q 23 4Q 22 3Q 22 2Q 22 1Q 22 4Q 22 1Q 22 Risk-weighted assets $ 157.5 $ 157.3 $ 155.2 $ 152.3 $ 149.0 $ 0.2 $ 8.5 Common Equity Tier 1 (CET1) capital ratio 9.2 % 9 .3 % 9 .3 % 9.6% 1 0.0 % Tier 1 capital ratio 1 0.7% 10
Slide 18: Liquidity and Deposits
ALLY FINANCIAL INC. LIQUIDITY AND DEPOSITS QUARTERLY TRENDS CHANGE VS. Consolidated Available Liquidity ($ in billions) 1Q 23 4Q 22 3Q 22 2Q 22 1Q 22 4Q 22 1Q 22 (1) Liquid cash and cash equivalents $ 9.3 $ 5.1 $ 4.6 $ 3.7 $ 3.6 $ 4.2 $ 5.7 (2) Highly liquid securities 21.5 22.2 22.7 24.6 25.9 (0.7)
Slide 19: Net Interest Margin
ALLY FINANCIAL INC. NET INTEREST MARGIN ($ in millions) QUARTERLY TRENDS CHANGE VS. Average Balance Details 1Q 23 4Q 22 3Q 22 2Q 22 1Q 22 4Q 22 1Q 22 Retail Auto Loans $ 83,615 $ 83,781 $ 82,362 $ 79,695 $ 78,224 $ (166) $ 5,391 Auto Lease (net of dep) 10,435 10,546 10,588 10,615 10,878 (111) (443)
Slide 20: Bank Consumer Mortgage HFI Portfolios (Period-End)
ALLY FINANCIAL INC. ALLY BANK CONSUMER MORTGAGE HFI PORTFOLIOS (PERIOD-END) ($ in billions) QUARTERLY TRENDS Mortgage Finance HFI Portfolio 1Q 23 4Q 22 3Q 22 2Q 22 1Q 22 Loan Value Gross carry value $ 19.2 $ 19.4 $ 19.7 $ 18.9 $ 18.4 Net carry value $ 19.2 $ 19.4 $ 19.7 $ 18.9 $ 18.4 Estimated Pool
Slide 21: Earnings Per Share Related Information
ALLY FINANCIAL INC. EARNINGS PER SHARE RELATED INFORMATION ($ in millions, shares in thousands) QUARTERLY TRENDS CHANGE VS. Earnings Per Share Data 1Q 23 4Q 22 3Q 22 2Q 22 1Q 22 4Q 22 1Q 22 GAAP net income attributable to common shareholders $ 291 $ 251 $ 272 $ 454 $ 627 $ 40 $ (336) Weighted-averag
Slide 22: Adjusted Tangible Book Per Share Related Information
ALLY FINANCIAL INC. ADJUSTED TANGIBLE BOOK PER SHARE RELATED INFORMATION ($ in millions, shares in thousands) QUARTERLY TRENDS CHANGE VS. Adjusted Tangible Book Value Per Share ( Adjusted TBVPS ) Information 1Q 23 4Q 22 3Q 22 2Q 22 1Q 22 4Q 22 1Q 22 Numerator GAAP shareholder's equity $ 13,378 $ 12,
Slide 23: Core ROTCE Related Information
ALLY FINANCIAL INC. CORE ROTCE RELATED INFORMATION ($ in millions) unless noted otherwise QUARTERLY TRENDS CHANGE VS. Core Return on Tangible Common Equity ( Core ROTCE ) 1Q 23 4Q 22 3Q 22 2Q 22 1Q 22 4Q 22 1Q 22 Numerator GAAP net income attributable to common shareholders $ 291 $ 251 $ 272 $ 454 $
Slide 24: Adjusted Efficiency Ratio Related Information
ALLY FINANCIAL INC. ADJUSTED EFFICIENCY RATIO RELATED INFORMATION QUARTERLY TREND CHANGE VS. ($ in millions) Adjusted Efficiency Ratio Calculation 1Q 23 4Q 22 3Q 22 2Q 22 1Q 22 4Q 22 1Q 22 Numerator $ 1,266 $ 1,266 $ 1,161 $ 1,138 $ 1,122 $ — $ 144 GAAP Noninterest expense (315) (286) (290) (300) (2
Slide 25: Non-GAAP Financial Measures
ALLY FINANCIAL INC. 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 issuance expense (Accelerated OID), Adjusted earnings per shar
Slide 26: Non-GAAP Financial Measures
ALLY FINANCIAL INC. 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 issuance expense (Accelerated OID), Adjusted earnings per shar
Slide 27: Non-GAAP Financial Measures
ALLY FINANCIAL INC. 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 issuance expense (Accelerated OID), Adjusted earnings per shar