Ally Financial Inc. · NYSE:ALLY
Ally Financial — Goldman Sachs US Financial Services Conference 2016
17 slides from Ally Financial's conference presentation, Dec 6, 2016
Slide 1: Ally Financial Inc. Goldman Sachs US Financial Services Conference 2016
Ally Financial Inc. Goldman Sachs US Financial Services Conference 2016 December 6, 2016 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. This information is pr
Slide 3: Highlights
Highlights Continued to post solid financial results and operational progress in 2016 “Self-help” drivers of liability and capital management New products and strong deposit growth strengthen franchise and provide long term upside Returning significant capital to shareholders Project 15%+/
Slide 4: Driving Shareholder Value
Driving Shareholder Value Optimize Auto Credit Finance Discipline Business Earnings Growth Protect and Grow Book Value Improve ROE Significant Grow Dividend Deposit + Capital Customer Expand Multiple Growth Returns Strengthen Franchise 4
Slide 5: Established Brand for Banking Expansion
Established Brand for Banking Expansion Brand campaign “Do It Right” and new marketing initiatives have been successful Retail Deposits and Customers have steadily grown – momentum accelerated in 2016 Retail Deposit Growth ($ billions) and Deposit Customers (# millions) 1.2 1.1 Highest annual deposi
Slide 6: Solid Financial Results Since IPO
Solid Financial Results Since IPO Adjusted Earnings Per Share(1) Net Financing Revenue(2) ($ millions) $0.56 $0.54 $998 $1,011 $0.53 $981 $995 $0.52 $0.51 $0.52 $0.52 $964 $0.46 $936 $927 $912 $0.42 $0.40 $865 $860 $835 $0.34 (1) Represents a non-GAAP financial measure. See page 15 for details. (2)
Slide 7: 4Q Update and Outlook
4Q Update and Outlook Net Financing • 4Q down from 3Q 16 driven by seasonally lower lease Theme: Revenue revenue Other • 4Q generally in line with 3Q 16 Revenue Provision • 4Q charge-offs expected to be up seasonally Expense (no change from prior guidance) Noninterest • 4Q generally in line with 3Q
Slide 8: Positioned for Strong Future Adjusted EPS Growth
Positioned for Strong Future Adjusted EPS(1) Growth 2017 2018 - 2019 Net Financing Lease decline more than offset by loan $5 billion +/- in 2019 driven by deposit Revenue net interest income growth growth and wholesale funding reduction Fairly flat year-over-year as business Growth from business exp
Slide 9: Supportive Economic Backdrop
Supportive Economic Backdrop • Consumer confidence is high and Consumer Confidence and LVS correlates with strong auto sales 20 120 110 Index of Consumer Sentiment (NSA, Q1-66=100) . 18 100 • Employment continues to improve 16 90 SAAR (# millions units) 80 • Nonfarm payrolls healthy 14 70 60 12 50 4
Slide 10: Evolving Environment Post Election
Evolving Environment Post Election Interest rates Regulation Growth Taxes 10
Slide 11: Used Vehicle Prices
Used Vehicle Prices Used Vehicle Indices Lease Portfolio Balance ($ billions) 130 125.3 126.0 121.8 $20 120 121.4 122.8 117.2 $16 $12 110 $9 $8 100 Manheim NADA Projected Lease Terminations(1) Lease Yield Sensitivity (# thousands) • Assuming a 5% annual price decline relative 71 65 68 67 to Ally’s i
Slide 12: Strategic Priorities
Strategic Priorities Strategy: Build the leading modern, digital financial services company 1 Significantly grow deposit customer base 2 Successfully introduce new banking products – more than a deposit gatherer 3 Position auto finance for the future 4 Maintain leading, well respected digita
Slide 13: Supplemental
Supplemental CONFIDENTIAL 13
Slide 14: Notes on non-GAAP and other financial measures
Supplemental Notes on non-GAAP and other financial measures The following are non-GAAP financial measures which Ally believes are important to the reader of the Consolidated Financial Statements, but which are supplemental to and not a substitute for U.S. GAAP measures: Adjusted Earnings per Share (
Slide 15: GAAP to Core Results
Supplemental GAAP to Core Results Adjusted Earnings per Share ("Adjusted EPS") QUARTERLY TREND 3Q '16 2Q '16 1Q '16 4Q '15 3Q '15 2Q '15 1Q '15 4Q '14 3Q '14 2Q '14 1Q '14 Numerator ($ millions) GAAP net income available to common shareholders $ 209 $ 345 $ 235 $ (953) $ 230 $ (1,069) $ 509 $ 109 $
Slide 16: GAAP to Core Results
Supplemental GAAP to Core Results Core Return on Tangible Common Equity ("Core ROTCE") QUARTERLY TREND 3Q '16 2Q '16 1Q '16 4Q '15 3Q '15 2Q '15 1Q '15 4Q '14 3Q '14 2Q '14 1Q '14 Numerator ($ millions) GAAP net income available to common shareholders $ 209 $ 345 $ 235 $ (953) $ 230 $ (1,069) $ 509
Slide 17: GAAP to Core Results
Supplemental GAAP to Core Results Adjusted Tangible Book Value per Share ("Adjusted TBVPS") QUARTERLY TREND 3Q '16 2Q '16 1Q '16 4Q '15 3Q '15 2Q '15 1Q '15 4Q '14 3Q '14 2Q '14 1Q '14 Numerator ($ b illions) GAAP shareholder's equity $ 13.6 $ 13.6 $ 13.8 $ 13.4 $ 14.6 $ 14.3 $ 15.9 $ 15.4 $ 15.2 $
Ally Financial — Goldman Sachs US Financial Services Conference 2016 on 6ix