Ally Financial Inc. · NYSE:ALLY
Ally Financial — Q1 2013 Earnings Presentation
23 slides from Ally Financial's earnings presentation, May 1, 2013
Slide 1: Ally Financial Inc. 1Q Earnings Review
Ally Financial Inc. 1Q Earnings Review Contact Ally Investor Relations at (866) 710 - 4623 or investor.relations@ally.com May 1, 2013
Slide 2: Forward-Looking Statements and Additional Information
2 1Q 2013 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 Annual Reports on Form 10 - K, Quarterly Reports on Form 10 - Q, and Current Repor
Slide 3: First Quarter Highlights
3 1Q 2013 Preliminary Results x 1Q retail deposit growth of $3.7 billion – highest quarterly growth since 1Q09 x Retail deposits up 11% QoQ and 32% YoY x Customer accounts up 9% QoQ and 29% YoY x Quarterly CD retention rate remains at all - time high Premier Auto Finance Franchise x Completed sale o
Slide 4: Strategic Transformation Nearing Completion
4 1Q 2013 Preliminary Results Strategic Transformation Nearing Completion • Definitive agreements have now been signed for all identified businesses being sold • Canada, Europe (1) and MCC (2) sales have generated $6.7 billion of proceeds (73% of total expected) • With the completed sales of Busines
Slide 5: 1Q Financial Results
5 1Q 2013 Preliminary Results ($ millions) 1Q 13 4Q 12 1Q 12 4Q 12 1Q 12 Net financing revenue (ex. OID) 697$ 667$ 459$ 30$ 239$ Total other revenue 503 639 605 (136) (102) Provision for loan losses 131 93 98 38 33 Controllable expenses (1) 556 588 578 (32) (21) Other noninterest expenses 306 310 27
Slide 6: Net Interest Margin
6 1Q 2013 Preliminary Results Net Interest Margin • Net Interest Margin (“NIM”) improved 16 bps QoQ and 62 bps YoY – Asset yields have remained fairly steady as competitive pressures are offset by a more profitable origination mix and lower cash levels – Cost of funds continues to decline driven by
Slide 7: Asset Quality
7 1Q 2013 Preliminary Results Consolidated Annualized Net Charge - Offs Reserve C overage of Net Charge - Offs Asset Quality U.S. Retail Auto Annualized Net Charge - Offs U.S. Retail Auto Delinquencies Note: $26 billion of loans were moved to held - for - sale status on 12/31/12. Above loans are cla
Slide 8: Results by Segment
8 1Q 2013 Preliminary Results Pre-Tax Income ($ millions) 1Q 13 4Q 12 1Q 12 4Q 12 1Q 12 Automotive Finance 343$ 371$ 241$ (28)$ 102$ Insurance 61 27 100 34 (39) Dealer Financial Services 404$ 398$ 341$ 6$ 63$ Mortgage (1) (6) 99 63 (105) (69) Corporate and Other (ex. OID) (1) (191) (183) (293) (8) 1
Slide 9: Automotive Finance Key Financials
9 1Q 2013 Preliminary Results Key Financials ($ millions) 1Q 13 4Q 12 1Q 12 Net financing revenue 773$ 776$ 630$ Total other revenue 82 58 77 Total net revenue 855 834 707 Provision for loan losses 112 59 78 Noninterest expense 400 404 388 Pre-tax income 343$ 371$ 241$ Total assets 118,882$ 128,411$
Slide 10: Auto Finance – Key Metrics
10 1Q 2013 Preliminary Results ($ billions) $9.7 $10.5 $9.6 $8.9 $9.7 1Q 12 2Q 12 3Q 12 4Q 12 1Q 13 Retail - New Retail - Used Lease ($ billions) $30.2 $31.8 $30.6 $32.5 $32.0 1Q 12 2Q 12 3Q 12 4Q 12 1Q 13 ($ billions) $70.3 $73.0 $74.5 $75.3 $76.5 1Q 12 2Q 12 3Q 12 4Q 12 1Q 13 On Balance Sheet Sold
Slide 11: Insurance Key Financials
11 1Q 2013 Preliminary Results Key Financials ($ millions) 1Q 13 4Q 12 1Q 12 Insurance premiums, service revenue earned and other 262$ 267$ 277$ Insurance losses and loss adjustment expenses 115 117 98 Acquisition and underwriting expenses 144 157 152 Total underwriting income 3 (7) 27 Investment in
Slide 12: Mortgage Key Financials
12 1Q 2013 Preliminary Results Key Financials ($ millions) 1Q 13 4Q 12 1Q 12 Net financing revenue 34$ 38$ 37$ Gain on sale of mortgage loans, net 38 131 25 Other revenue (excluding gain on sale) 60 125 112 Total net revenue 132 294 174 Provision for loan losses 20 33 27 Noninterest expense 118 162
Slide 13: Ally Bank Deposit Franchise
13 1Q 2013 Preliminary Results Ally Bank Deposit Levels and Retail Accounts ($ billions) $29.3 $30.4 $32.1 $35.0 $38.8 $39.2 $40.3 $42.0 $45.0 $48.6 1,036 1,083 1,143 1,220 1,334 1Q 12 2Q 12 3Q 12 4Q 12 1Q 13 Ally Bank Retail Ally Bank Brokered # of Retail Deposit Accounts (000s) Ally Bank Quarterly
Slide 14: Debt Maturity Profile and Liquidity Position
14 1Q 2013 Preliminary Results Ally Financial Consolidated Unsecured Long-Term Debt Maturity Profile ($ billions) $0.1 $0.0 $0.9 $5.6 $5.1 $2.0 $3.7 2Q 13 3Q 13 4Q 13 2014 2015 2016 2017 Ally Financial Liquidity Position ($ billions) $15.6 $19.5 $6.9 $8.6 4Q 12 1Q 13 Parent Co. Liquidity Unsecured B
Slide 15: Ally Financial Capital
15 1Q 2013 Preliminary Results Ally Financial Capital $158 $148 $150 $154 $142 14.5% 14.6% 14.6% 14.1% 15.6% 13.4% 13.6% 13.6% 13.1% 14.6% 7.5% 7.2% 7.3% 7.0% 7.9% 9.9% 1Q 12 2Q 12 3Q 12 4Q 12 1Q 13 Risk - Weighted Assets Total Capital Ratio Tier 1 Ratio Tier 1 Common Ratio Pro Forma Tier 1 Common R
Slide 16: Conclusion
16 1Q 2013 Preliminary Results Conclusion • Positive core business trends – Earning asset growth – Stable loss performance – Cost of funds declining – Strong deposit growth • Priorities – CCAR requirements – ongoing regulatory dialogue – Improve business efficiencies and reduce noninterest expense –
Slide 17: Supplemental Charts
Supplemental Charts
Slide 18: Corporate and Other
18 1Q 2013 Preliminary Results Corporate and Other • Lower net financing loss driven by declining cost of funds • OID amortization expense of $57 million in 1Q • Commercial Finance pre - tax income of $18 million in 1Q • Other revenue impacted by derivative activity • Noninterest expense impacted by
Slide 19: International Sale Update
19 1Q 2013 Preliminary Results International Sale Update (1) Canada assets and tangible book value are as of 1/31/13. All other numbers are as of 3/31/13. (2) Book value on a GAAP basis was approximately $ 7.5 billion, which included approximately $0.5 billion of associated goodwill. (3) Total proce
Slide 20: Impact of Discontinued Operations
20 1Q 2013 Preliminary Results Impact of Discontinued Operations ($ millions) 1Q 13 4Q 12 1Q 12 Canada 908$ 25$ 62$ International Auto 129 86 75 Insurance 28 38 38 Mortgage 0 0 164 Corporate and Other (16) 26 33 Consolidated pretax income 1,050$ 175$ 373$ Tax expense (benefit) 17 (291) 65 Consolidat
Slide 21: Liquidity Supplemental
21 1Q 2013 Preliminary Results Liquidity Supplemental (1) Parent company liquidity is defined as our consolidated operations less Ally Bank and the subsidiaries of Ally Insurance Hold ing Company (2) Includes UST, Agency debt and Agency MBS (3) Includes equal allocation of shared unused capacity tot
Slide 22: Notes on non-GAAP and other financial measures
22 1Q 2013 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 slide 23 for definitions $ in millions GAAP OID & Repositioning Items ResCap Related Adjustments Proforma GAAP
Slide 23: Notes on non-GAAP and other financial measures
23 1Q 2013 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