Ally Financial Inc. · NYSE:ALLY
Ally Financial — Q1 2012 Earnings Presentation
25 slides from Ally Financial's earnings presentation, Apr 26, 2012
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 April 26, 2012
Slide 2: Forward-Looking Statements and Additional Information
2 1Q 2012 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 2011 Annual Report on Form 10 - K, Quarterly Reports on Form 10 - Q, and Current R
Slide 3: First Quarter Highlights
3 1Q 2012 Preliminary Results x 1Q retail deposit growth of $1.6 billion or nearly 6% YTD x Achieved significant strides in brand awareness and brand commitment x Exceeded 1 million customer accounts – up nearly 30% YoY Premier Auto Finance Franchise x Time to Required Funding (“TRF”) (2) remains st
Slide 4: Results by Segment
4 1Q 2012 Preliminary Results Pre-Tax Income ($ millions) 1Q 12 4Q 11 1Q 11 4Q 11 1Q 11 North American Automotive Finance 442$ 478$ 518$ (36)$ (76)$ International Automotive Finance 45 21 31 24 14 Insurance 124 93 131 31 (7) Global Automotive Services 611$ 592$ 680$ 19$ (69)$ Mortgage Origination an
Slide 5: Premier Auto Finance Franchise
5 1Q 2012 Preliminary Results Premier Auto Finance Franchise • Ally continues to successfully transform its business model from a captive to an independent market driven competitor • Ally has diversified and expanded its business across several dimensions: – Dealer relationships – Product offerings
Slide 6: Outlook and Priorities
6 1Q 2012 Preliminary Results Outlook and Priorities • Announce permanent mortgage solution and define mortgage business going forward – Protect Ally and the auto franchise – Maintain stability in the mortgage servicing platform • Continue to grow our leading auto finance franchise – Serving dealers
Slide 7: First Quarter Results
7 1Q 2012 Preliminary Results ($ millions) 1Q 12 4Q 11 1Q 11 4Q 11 1Q 11 Net financing revenue (ex. OID) 777$ 743$ 840$ 34$ (63)$ Total other revenue (ex. OID) 1,187 977 1,038 210 149 Provision for loan losses 140 6 113 134 27 Controllable expenses (1) 906 965 835 (59) 71 Other noninterest expenses
Slide 8: Ally Financial - Net Interest Margin
8 1Q 2012 Preliminary Results Ally Financial - Net Interest Margin $142 $150 $161 $160 3.0% 2.3% 1.8% 1.9% 1.5% 1.5% 1.4% 1.6% 1Q 10 2Q 10 3Q 10 4Q 10 1Q 11 2Q 11 3Q 11 4Q 11 1Q 12 Earning Assets ($B) NIM (ex. OID) Risk - adjusted NIM (ex. OID) Net Interest Margin • Net Interest Margin (“NIM”) (1) i
Slide 9: North American Automotive Finance Key Financials
9 1Q 2012 Preliminary Results NAO Earning Asset Balances (EOP) ($ billions) $87.5 $90.6 $90.2 $96.2 $102.1 1Q 11 2Q 11 3Q 11 4Q 11 1Q 12 Consumer Commercial Key Financials ($ millions) 1Q 12 4Q 11 1Q 11 Net financing revenue 775$ 704$ 818$ Total other revenue 79 84 109 Total net revenue 854 788 927
Slide 10: North American Auto Finance – Key Metrics
10 1Q 2012 Preliminary Results ($ billions) $67.0 $67.1 $68.8 $71.8 $72.6 $74.1 $76.0 $78.1 2Q 10 3Q 10 4Q 10 1Q 11 2Q 11 3Q 11 4Q 11 1Q 12 On Balance Sheet Sold (% of $ originations) 20% 18% 25% 16% 16% 5% 11% 11% 2% 6% 10% 17% 15% 27% 2Q 10 3Q 10 4Q 10 1Q 11 2Q 11 3Q 11 4Q 11 1Q 12 GM Subvented GM
Slide 11: International Automotive Finance Key Financials
11 1Q 2012 Preliminary Results Key Financials ($ millions) 1Q 12 4Q 11 1Q 11 Net financing revenue 164$ 157$ 166$ Total other revenue 66 64 58 Total net revenue 230 221 224 Provision for loan losses 47 23 37 Noninterest expense 138 177 156 Pre-tax income from continuing ops 45$ 21$ 31$ Total assets
Slide 12: Insurance Key Financials
12 1Q 2012 Preliminary Results Key Financials ($ millions) 1Q 12 4Q 11 1Q 11 Insurance premiums, service revenue earned and other 386$ 393$ 406$ Insurance losses and loss adjustment expenses 155 142 157 Acquisition and underwriting expenses 189 217 197 Total underwriting income 42 34 52 Investment i
Slide 13: Mortgage Operations – Origination and Servicing
13 1Q 2012 Preliminary Results Key Financials ($ millions) 1Q 12 4Q 11 1Q 11 Net financing revenue 7$ (7)$ (17)$ Gain on sale of mortgage loans, net 126 111 72 Other revenue (excluding gain on sale) 421 261 268 Total net revenue 554 365 323 Provision for loan losses 1 - 2 Noninterest expense 336 558
Slide 14: Mortgage Operations – Legacy Portfolio and Other
14 1Q 2012 Preliminary Results Legacy Portfolio & Other Balance Sheet ($ billions) $12.3 $11.9 $11.6 $10.9 $10.5 1Q 11 2Q 11 3Q 11 4Q 11 1Q 12 Loans HFI Disc Ops Loans HFS Cash, trading & other assets Key Financials ($ millions) 1Q 12 4Q 11 1Q 11 Net financing revenue 50$ 62$ 77$ Gain on sale of mor
Slide 15: Mortgage Repurchase Reserves
15 1Q 2012 Preliminary Results Mortgage Repurchase Reserves ($ millions) 1Q 11 2Q 11 3Q 11 4Q 11 1Q 12 Beginning reserve balance 830$ 830$ 829$ 829$ 825$ Repurchase reserve expense 26 184 70 44 19 Other additions 6 5 5 3 5 Loss experience, net (1) (32) (190) (75) (51) (38) Ending reserve balance 830
Slide 16: Ally Bank Franchise Growth
16 1Q 2012 Preliminary Results • Ally is well positioned as a leading direct retail bank – Consumer shift to direct banking continues – Ally brand awareness (1) increasing steadily – Ally brand commitment (1) improving – Expanding brand use and marketing competencies to auto platform – Benefit of in
Slide 17: Ally Financial Deposit Levels
17 1Q 2012 Preliminary Results Ally Financial Deposit Levels ($ billions) $23.5 $24.6 $26.3 $27.7 $29.3 $40.7 $42.3 $44.3 $45.1 $47.2 1Q 11 2Q 11 3Q 11 4Q 11 1Q 12 Ally Bank Retail Ally Bank Brokered ResMor Other Deposit Growth • Continued growth of Ally’s deposit base – Total deposit growth of $2.1
Slide 18: Ally Financial Liquidity Position
18 1Q 2012 Preliminary Results Ally Financial Liquidity Position ($ billions) $22 $24 1Q 11 1Q 12 Parent Co. Liquidity Unsecured Bond Maturities (next 24 months) $20 $17 Ally Financial New Funding Transactions ($ billions) 1Q 12 U.S. Public Securitizations 4.5$ International Securitizations 0.5 U.S.
Slide 19: Capital
19 1Q 2012 Preliminary Results Capital • Capital ratios remain robust versus the risk profile of assets and versus industry peers – Capital levels improved driven by quarterly net income – Capital ratios declined as a result of higher RWA primarily due to growth in auto assets • Ally is well positio
Slide 20: Asset Quality
20 1Q 2012 Preliminary Results Global Auto Delinquencies - Managed Retail Contract Amount $ Amount of Accruing Contracts Greater than 30 Days Past Due (millions) $805 $871 $861 $937 $705 1.42% 1.48% 1.43% 1.47% 1.04% 1Q 11 2Q 11 3Q 11 4Q 11 1Q 12 Delinquent Contracts $ % of Retail Contract $ Outstan
Slide 21: Conclusion
21 1Q 2012 Preliminary Results Conclusion • Competitively advantaged auto finance franchise – Originations increased from 4Q despite strong competition – More profitable origination mix • Strong asset generation capabilities – NAO earning asset growth of 6% QoQ and 17% YoY • High quality assets – lo
Slide 22: Supplemental Charts
Supplemental Charts
Slide 23: Corporate and Other
23 1Q 2012 Preliminary Results Key Financials ($ millions) 1Q 12 4Q 11 1Q 11 Net financing loss (239)$ (198)$ (226)$ Total other revenue 47 18 55 Total net loss (ex. OID) (192) (180) (171) Provision for loan losses (12) (19) (17) Noninterest expense 148 153 144 Core pre-tax loss (328)$ (314)$ (298)$
Slide 24: Liquidity and Unsecured Debt Maturity Profile
24 1Q 2012 Preliminary Results Liquidity and Unsecured Debt Maturity Profile Supplemental (1) Parent defined as Ally Consolidated less Ally Bank, ResCap (not shown) and Insurance (not shown) (2) Includes UST, Agency debt and Agency MBS (3) Includes equal allocation of shared unused capacity totaling
Slide 25: Notes on non-GAAP and other financial measures
25 1Q 2012 Preliminary Results Notes on non - GAAP and other financial measures Supplemental (1) Core pre - tax income is a non - GAAP financial measure. It is defined as income from continuing operations before taxes and primarily bond exchange or iginal issue discount ("OID") amortization expense.