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. at Barclays Global Financial Services Conference
1 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
Slide 2: Forward-Looking Statements and Additional Information
2 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
Slide 3: Executive Summary
3 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
Slide 4: Improving Financial Results
4 2.9% 3.1% 5.4% 1.8% 6.5% 8.4% $207 $211 $271 $161 $339 $417 1Q 13 2Q 13 3Q 13 4Q 13 1Q 14 2Q 14 Core Pre tax Income (ex. repositioning) Core ROTCE Improving Financial Results Adjusted Efficiency Ratio Net Financing Revenue & NIM Core Pre Tax Income & Core ROTCE Deposits ($ millions) $697 $689 $801
Slide 5: Priorities
5 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 ex
Slide 6: Premier Auto Finance Platform
6 Premier Auto Finance Platform • Over 16,000 dealer relationships • Premium service model • Relationships spanning generations All Encompassing Product Suite – One-stop shop to meet dealers’ needs Unique Capabilities and Infrastructure – Ally has unique capabilities to do what other providers can’t
Slide 7: More Than Making Loans
7 More Than Making Loans Technology “Dealerships want lenders that focus on building strong relationships and that provide a wide array of financing options for vehicle buyers” Fully integrated with our dealers Technology • Automatic dealer settlement system • Account Center mobile app • SmartAuctio
Slide 8: Competitive Landscape
8 Competitive Landscape Lease (16% of auto related assets) Insurance (6% of auto related assets) Loan (49% of auto related assets) • Largest bank player with $33 billion portfolio • Longstanding dealer relationships Commercial (28% of auto related assets) • Historically done by captives • Risk manag
Slide 9: Evolution of the Franchise
9 Evolution of the Franchise Proactive effort to expand application flow Non GM / Chrysler origination growth Used and lease origination growth Penetration has declined as OEMs diversify 31.6% 29.4% 28.5%28.4% 15.6% 10.9% 71.2% 68.0% 64.7% 60.5% 52.4% 44.8% 6/30/12 6/30/13 6/30/14 GM Consumer Chrysl
Slide 10: Demonstrated Growth in a Competitive Environment
10 ($ billions; EOP) $54.7 $68.8 $84.8 $100.1 $107.9 $109.9 $0.0 $25.0 $50.0 $75.0 $100.0 2009 2010 2011 2012 2013 1H14 Retail Lease Commercial Demonstrated Growth in a Competitive Environment Consumer Originations Origination Mix Asset Growth Commercial Balances ($ billions; % of $ originations) 61
Slide 11: Auto Credit Quality and Origination Credit Trends
11 Auto Credit Quality and Origination Credit Trends Approval Rates U.S. Retail Auto Net Charge-Offs • Retail auto net losses declined in 2Q driven by: – Typical seasonal trends – Strong used car prices and SmartAuction efficiencies – Servicing process improvements • Percentage of non-prime originat
Slide 12: Conclusion
12 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
Slide 13: Notes and Non-GAAP Financial Measures
13 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 expen
Slide 14: Non-GAAP Reconciliations
14 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 Provision f
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