Ally Financial Inc. · NYSE:ALLY
Ally Financial — Morgan Stanley Financials Conference 2014
11 slides from Ally Financial's conference presentation, Jun 11, 2014
Slide 1: Ally Financial Inc. - Morgan Stanley Financials Conference
1 Ally Financial Inc. Michael Carpenter, Chief Executive Officer Morgan Stanley Financials Conference June 11, 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: Ally Overview
3 Ally Overview • $108 billion of auto earning assets • 16,000 dealer relationships • 5,200 dealers use 4+ Ally products Leading U.S. Direct Bank Franchise – Continued momentum of stable deposit growth Strong and Stable Financial Profile – Streamlined operations with clean balance sheet Premier U.S.
Slide 4: Premier Auto Finance Franchise
4 Premier Auto Finance Franchise Growth in non-GM/Chrysler channel Growing assets in a competitive environment • Differentiated business model – Fundamentally repositioned from captive days – Relationships spanning generations – Premium service and full product suite – Drives “All-in” dealer relatio
Slide 5: Comprehensive Product Suite with Competitive Advantages
5 Comprehensive Product Suite with Competitive Advantages SmartAuction Used Retail Loans Insurance Products Leases Commercial Loans New Retail Loans • Floorplan lending is critical and drives dealer loyalty • Real estate, working capital and other dealer loans • $33 billion of assets represents a si
Slide 6: Leading Direct Bank Franchise
6 Ally Bank Deposits ($B) $16.9 $21.8 $27.7 $35.0 $43.2 $45.2 $27.1 $31.8 $37.6 $45.0 $52.8 $54.9 2009 2010 2011 2012 2013 1Q 14 Retail Deposits Brokered Deposits • Developed customer-centric brand – Straightforward approach – No hidden fees, rules or penalties – 24/7 access to a human being – “Best
Slide 7: Highly Sticky Customer and Deposit Base
7 Highly Sticky Customer and Deposit Base Every vintage has remained steady or grown in the last two years Ally Bank Retail Deposit Vintage Data ($B) 8.1 8.2 8.2 8.2 8.2 8.3 8.3 8.3 8.4 8.4 8.4 8.4 8.4 8.5 8.5 8.5 8.6 8.7 8.7 8.9 8.9 9.0 9.0 8.9 8.9 8.9 9.0 9.0 9.0 9.0 9.0 9.0 6.0 6.0 6.1 6.1 6.1 6.
Slide 8: Driving Improved Shareholder Returns
8 Driving Improved Shareholder Returns Net Financing Revenue – Significant progress with cost of funds down 55 bps YoY – Future funding cost progress driven largely by debt maturities Will explore liability management over time – Strong used car prices continuing in 2Q, but expected to moderate Ex
Slide 9: Priorities
9 • Deliver shareholder return target of 9 – 11% Core ROTCE by YE 2015 • Assist U.S. Treasury to complete Ally’s exit from TARP • Continue auto finance expansion / diversification – Prioritize profitability and asset quality over growth • Focus on improving deposit economics given strong franchise a
Slide 10: Notes and non-GAAP reconciliations
10 Notes and non-GAAP reconciliations Page 3 – All metrics as of 1Q14 – #1 non-captive auto finance provider for full-year 2013 according to Experian AutoCount – Cost of funds excludes OID amortization expense Page 4 – Top 5 provider of new, used and leasing products for full-year 2013 according to
Slide 11: Notes and non-GAAP financial measures
11 Notes and non-GAAP financial measures ($ in millions) Core Pre-Tax Income Calculation 1Q 14 4Q 13 1Q 13 Net financing revenue (ex. OID) 865$ 841$ 697$ Total other revenue 321 325 386 Total net revenue (ex. OID) 1,186 1,166 1,083 Provision for loan losses 137 140 131 Controllable expenses 487 506
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