Ally Financial Inc. · NYSE:ALLY
Ally Financial — Barclays Global Financial Services Conference 2014
14 slides from Ally Financial's conference presentation, Sep 9, 2014
Slide 1: Ally Financial Inc.
Ally Financial Inc. Michael Carpenter, Chief Executive Officer Jeff Brown, President and CEO, Dealer Financial Services Barclays Global Financial Services Conference September 9, 2014 Contact Ally Investor Relations at (866) 710-4623 or investor.relations@ally.com 1
Slide 2: Forward-Looking Statements and Additional Information
Forward-Looking Statements and Additional Information The following should be read in conjunction with the financial statements, notes and other information contained in the Company’s Annual Reports on Form 10-K, Quarterly Reports on Form 10-Q, and Current Reports on Form 8-K. In the presentation th
Slide 3: Executive Summary
Executive Summary • Leading auto finance franchise continues to demonstrate its strength – Earning assets up 7% YoY in 2Q14 – Second highest quarter of originations in Ally history • Leading direct bank franchise with customer-centric brand – Retail deposit balances up 15% YoY in 2Q14 – Ally Bank cu
Slide 4: Improving Financial Results
Improving Financial Results Net Financing Revenue & NIM Adjusted Efficiency Ratio ($ millions) $912 73% $865 $841 67% 67% $801 2.6% 2.5% $697 $689 2.4% 2.3% 59% 2.1% 2.0% 55% 49% 1Q 13 2Q 13 3Q 13 4Q 13 1Q 14 2Q 14 1Q 13 2Q 13 3Q 13 4Q 13 1Q 14 2Q 14 Net Financing Revenue Net Interest Margin Adj. Ef
Slide 5: Priorities
Priorities • Executing 3-point plan to deliver shareholder return target of 9 – 11% Core ROTCE by year-end 2015 • Exit TARP • Continue auto finance expansion / diversification • Strengthen Ally Bank deposit franchise while focusing on brand development and efficiencies • Explore longer-term ROE expa
Slide 6: Premier Auto Finance Platform
Premier Auto Finance Platform Differentiated Business Model • Over 16,000 dealer relationships • Premium service model – Fully integrated financing provider for dealers • Relationships spanning generations All Encompassing Product Suite • 5,300 dealers use 4+ Ally products • Drives dealer loyalty an
Slide 7: More Than Making Loans
More Than Making Loans Technology Service Technology • Average account executive has over 15 • Automatic dealer settlement system years of experience • Account Center mobile app • Over 1,800 local dealer consultants • SmartAuction mobile app • Coverage across all 50 states • Insurance menu app • Ope
Slide 8: Competitive Landscape
Competitive Landscape Commercial • Largest bank player with $33 billion portfolio (28% of auto related assets) • Longstanding dealer relationships Lease • Historically done by captives (16% of auto related assets) • Risk management experience and SmartAuction provide significant competitive advantag
Slide 9: Evolution of the Franchise
Evolution of the Franchise Penetration has declined as OEMs diversify Proactive effort to expand application flow Decisioned Applications (MM) 71.2% 68.0% 4.5 64.7% 60.5% 52.4% 44.8% 3.9 31.6% 29.4% 28.5% 3.4 28.4% 15.6% 10.9% 6/30/12 6/30/13 6/30/14 1H12 1H13 1H14 GM Consumer Chrysler Consumer GM C
Slide 10: Demonstrated Growth in a Competitive Environment
Demonstrated Growth in a Competitive Environment Consumer Originations Origination Mix ($ billions; % of $ originations) (% of $ originations) $10.9 $9.7 $9.8 $9.6 25% 30% 28% $9.2 20% 13% 15% 16% $8.2 19% 18% 17% 28% 26% 21% 15% 29% 15% 29% 16% 6% 7% 8% 64% 69% 63% 26% 61% 66% 66% 24% 27% 14% 9% 8%
Slide 11: Auto Credit Quality and Origination Credit Trends
Auto Credit Quality and Origination Credit Trends • Retail auto net losses declined in 2Q driven by: U.S. Retail Auto Net Charge-Offs – Typical seasonal trends – Strong used car prices and SmartAuction efficiencies $121 $115 $114 – Servicing process improvements $93 $80 $83 • Percentage of non-prime
Slide 12: Conclusion
Conclusion • Differentiated, dealer-centric business model • Premium service offering • “All in” dealer relationships • Diversifying to cover a broader dealer universe • Focus on asset quality and profitability Please refer to slides 13 and 14 for notes and reconciliations 12
Slide 13: Notes and Non-GAAP Financial Measures
Notes and Non-GAAP Financial Measures Page 3 – Net financing revenue, NIM and cost of funds exclude OID amortization expense. – Controllable expenses include employee related costs, consulting and legal fees, marketing, information technology, facility, portfolio servicing and restructuring expenses
Slide 14: Non-GAAP Reconciliations
Non-GAAP Reconciliations ($ in millions) Core Pre-Tax Income Calculation 2Q 14 1Q 14 4Q13 3Q13 2Q 13 1Q13 Net financing revenue (ex. OID) $ 912 $ 865 $ 841 $ 801 $ 689 $ 697 Total other revenue (ex. OID) 372 321 324 367 411 503 Total net revenue (ex. OID) 1,284 1,186 1,166 1,168 1,100 1,200 Provisio
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