Ally Financial (ALLY) 8-K Ally Financial Reports Second Quarter 2014 Financial Results

Exhibit 99.3

 

SECOND QUARTER 2014

FINANCIAL SUPPLEMENT

ALLY FINANCIAL INC. 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 preliminary and based on company data available at the time of the presentation

In the presentation that follows and related comments by Ally Financial Inc. (“Ally”) management, the use of the words “expect,” “anticipate,” “estimate,” “forecast,” “initiative,” “objective,” “plan,” “goal,” “project,” “outlook,” “priorities,” “target,” “explore,” “positions,” “intend,” “evaluate,” “pursue,” “seek,” “may,” “would, ” “could, ” “should, ” “believe, ” “potential, ” “continue,” or the negative of these words, or similar expressions is intended to identify forward-looking statements. All statements herein and in related management comments, other than statements of historical fact, including without limitation, statements about future events and financial performance, are forward-looking statements that involve certain risks and uncertainties. While these statements represent our current judgment on what the future may hold, and we believe these judgments are reasonable, these statements are not guarantees of any events or financial results, and Ally’s actual results may differ materially due to numerous important factors that are described in the most recent reports on SEC Forms 10-K and 10-Q for Ally, each of which may be revised or supplemented in subsequent reports filed with the SEC. Such factors include, among others, the following: maintaining the mutually beneficial relationship between Ally and General Motors (“GM”), and Ally and Chrysler Group LLC (“Chrysler”); the profitability and financial condition of GM and Chrysler; our ability to maintain relationships with automotive dealers; our ability to realize the anticipated benefits associated with being a financial holding company, and the significant regulation and restrictions that we are subject to; the potential for deterioration in the residual value of off-lease vehicles; disruptions in the market in which we fund our operations, with resulting negative impact on our liquidity; changes in our accounting assumptions that may require or that result from changes in the accounting rules or their application, which could result in an impact on earnings; changes in the credit ratings of Ally, Chrysler, or GM; changes in economic conditions, currency exchange rates or political stability in the markets in which we operate; and changes in the existing or the adoption of new laws, regulations, policies or other activities of governments, agencies and similar organizations (including as a result of the Dodd-Frank Act and Basel III).

Investors are cautioned not to place undue reliance on forward-looking statements. Ally undertakes no obligation to update publicly or otherwise revise any forward-looking statements, whether as a result of new information, future events or other such factors that affect the subject of these statements, except where expressly required by law. Reconciliation of non-GAAP financial measures included within this presentation are provided in this presentation.

Use of the term “loans” describes products associated with direct and indirect lending activities of Ally’s operations. The specific products include retail installment sales contracts, lines of credit, leases or other financing products. The term “originate” refers to Ally’s purchase, acquisition or direct origination of various “loan” products.

2Q 2014 Preliminary Results 2

ALLY FINANCIAL INC. TABLE OF CONTENTS  

	Page(s)
Consolidated Results
Consolidated Financial Highlights		4
Consolidated Income Statement		5
Consolidated Period-End Balance Sheet		6
Consolidated Average Balance Sheet		7
Segment Detail
Segment Highlights		8
Automotive Finance		9-10
Insurance		11
Mortgage		12
Corporate and Other		13
Credit Related Information		14-15
Supplemental Detail
Capital		16
Liquidity		17
Deposits		18
Ally Bank Consumer Mortgage HFI Portfolio		19
Discontinued Operations		20
Per Share-Related Information		21
Supplemental Financial Data		22

2Q 2014 Preliminary Results 3

ALLY FINANCIAL INC. CONSOLIDATED FINANCIAL HIGHLIGHTS  

($ in millions, shares in thousands)

	QUARTERLY TRENDS															CHANGE VS.
Selected Income Statement Data	2Q 14			1Q 14			4Q 13			3Q 13			2Q 13			1Q 14			2Q 13
Net financing revenue (ex. OID)	$	912		$	865		$	841		$	801		$	689		$	47		$	223
Total other revenue (ex. OID)		372			321			325			371			402			51			(30	)
Total net revenue (ex. OID)		1,284			1,186			1,166			1,172			1,091			98			194
Provision for loan losses		63			137			140			141			89			(74	)		(26	)
Controllable expenses(1)		455			490			526			494			519			(35	)		(64	)
Other noninterest expenses		366			223			358			268			282			143			84
Core pre-tax income (loss)(2)	$	400		$	336		$	142		$	269		$	201		$	64		$	200
Core OID amortization expense (3)		53			44			67			64			61			9			(7	)
Income tax (benefit) expense		64			94			(4	)		28			40			(30	)		24
Income (loss) from discontinued operations		40			29			25			(86	)		(1,027	)		11			1,067
Net income (loss)	$	323		$	227		$	104		$	91		$	(927	)	$	96		$	1,250
Preferred stock dividends		65			68			448			200			200			(3	)		(135	)
Net income (loss) available to common shareholders	$	258		$	159		$	(344	)	$	(109	)	$	(1,127	)	$	99		$	1,385
Selected Balance Sheet Data (Period-End)
Total assets	$	149,937		$	148,452		$	151,167		$	150,556		$	150,627		$	1,485		$	(690	)
Consumer loans		65,961			64,913			64,861			65,222			65,298			1,048			663
Commercial loans		34,817			34,711			35,467			30,059			31,695			106			3,122
Assets of discontinued operations held-for-sale		574			541			516			5,913			5,529			33			(4,955	)
Allowance for loan losses		(1,171	)		(1,192	)		(1,208	)		(1,198	)		(1,183	)		21			12
Deposits		56,091			55,367			53,350			52,031			50,125			724			5,966
Common equity(4)		13,623			13,204			12,953			12,121			12,225			419			1,398
Total equity		14,878			14,459			14,208			19,061			19,165			419			(4,287	)
Common Share Count
Weighted average basic(5)		481,350			479,768			442,863			412,601			412,601			1,583			68,750
Weighted average diluted(5)(6)		482,343			479,768			442,863			412,601			412,601			2,575			69,742
Issued shares outstanding (period-end)		479,773			479,768			479,768			412,601			412,601			6			67,173
Per Common Share Data
Earnings per share (basic)(5)	$	0.54		$	0.33		$	(0.78	)	$	(0.27	)	$	(2.73	)	$	0.21		$	3.27
Earnings per share (diluted)(5)(6)		0.54			0.33			(0.78	)		(0.27	)		(2.73	)		0.20			3.27
Adjusted earnings per share		0.42			0.34			(0.70	)		0.05			(0.13	)		0.08			0.55
Book value per share		28.39			27.52			27.00			29.38			29.63			0.87			(1.23	)
Tangible book value per share		28.34			27.46			26.94			28.92			29.17			0.87			(0.84	)
Select Financial Ratios
Net interest margin(7)		2.6	%		2.5	%		2.4	%		2.3	%		2.0	%
Adjusted efficiency ratio(8)		49	%		55	%		73	%		59	%		67	%
Return on average assets(9)		0.9	%		0.6	%		0.3	%		0.2	%		n/m
Return on average total equity(9)		8.8	%		6.4	%		2.5	%		1.9	%		n/m
Return on average tangible common equity(9)		7.7	%		4.9	%		n/m			n/m			n/m
Core ROTCE(9)(10)		8.4	%		6.5	%		1.8	%		5.4	%		3.1	%
Capital Ratios
Tier 1 capital ratio		12.3	%		12.1	%		11.8	%		15.4	%		15.4	%
Tier 1 common capital ratio (10)		9.4	%		9.1	%		8.8	%		7.9	%		8.0	%
Total risk-based capital ratio		13.2	%		13.0	%		12.8	%		16.4	%		16.5	%

(1) Includes employee related costs, consulting and legal fees, marketing, information technology, facility, portfolio servicing and restructuring expenses

(2) Core pre-tax income (loss) is a non-GAAP financial measure. It is defined as income from continuing operations before taxes and primarily bond exchange original issue discount ("OID") amortization expense

(3) Core Original Issuance Discount (OID) is primarily related to bond exchange OID; excludes IO and post 2009 issuances. 2Q14 also includes $7 million in accelerated OID expense due to debt redemption

(4) Includes common stock and paid-in capital, accumulated deficit and accumulated other comprehensive income

(5) Includes 1.6 million shares related to share-based compensation that have vested but not yet been issued as of June 30, 2014

(6) The effects of converting the outstanding Fixed Rate Cumulative Mandatorily Convertible Preferred Stock into common shares are not included in the diluted earnings per share calculation for the three months ended June 30, September 30, and December 31 2013, as the effects would be antidilutive for those periods. As such, 574 thousand of potential common shares were excluded from the diluted earnings per share calculation for the three months ended June 30, September 30, and December 31 2013, respectively

(7) Continuing operations only. Excludes OID amortization expense

(8) For more details refer to page 22

(9) Return metrics are annualized

(10) Tier 1 common capital ratio is a non-GAAP measurement. Refer to page 16 for additional details

2Q 2014 Preliminary Results 4

ALLY FINANCIAL INC. CONSOLIDATED INCOME STATEMENT  

($ in millions)

	QUARTERLY TRENDS															CHANGE VS.
	2Q 14			1Q 14			4Q 13			3Q 13			2Q 13			1Q 14			2Q 13
Financing revenue and other interest income
Interest and fees on finance receivables and loans (1)	$	1,124		$	1,107		$	1,136		$	1,119		$	1,139		$	17		$	(15	)
Interest on loans held-for-sale		1			-			1			-			3			1			(2	)
Interest and dividends on available-for-sale investment securities		93			95			96			85			76			(2	)		17
Interest-bearing cash		1			3			2			3			2			(2	)		(1	)
Operating leases		884			870			855			832			788			14			96
Total financing revenue and other interest income		2,103			2,075			2,090			2,039			2,008			28			95
Interest expense
Interest on deposits		166			163			165			163			162			3			4
Interest on short-term borrowings		13			15			16			15			16			(2	)		(3	)
Interest on long-term debt		549			534			589			609			703			15			(154	)
Total interest expense		728			712			770			787			881			16			(153	)
Depreciation expense on operating lease assets		509			542			546			515			499			(33	)		10
Net financing revenue		866			821			774			737			628			45			238
Other revenue
Servicing fees		7			9			12			13			19			(2	)		(12	)
Servicing asset valuation and hedge activities, net		-			-			-			-			(12	)		-			12
Total servicing income, net		7			9			12			13			7			(2	)		-
Insurance premiums and service revenue earned		249			241			244			251			258			8			(9	)
Gain on mortgage and automotive loans, net		6			-			3			15			(1	)		6			7
Loss on extinguishment of debt		(7	)		(39	)		(17	)		(42	)		-			32			(7	)
Other gain on investments, net		41			43			24			41			64			(2	)		(23	)
Other income, net of losses		69			67			59			93			74			2			(5	)
Total other revenue		365			321			325			371			402			44			(37	)
Total net revenue		1,231			1,142			1,099			1,108			1,030			89			201
Provision for loan losses		63			137			140			141			89			(74	)		(26	)
Noninterest expense
Compensation and benefits expense		215			254			237			245			252			(39	)		(37	)
Insurance losses and loss adjustment expenses		188			68			59			85			146			120			42
Other operating expenses		418			391			588			432			403			27			15
Total noninterest expense		821			713			884			762			801			108			20
Income (loss) from continuing operations before income tax expense		347			292			75			205			140			55			207
Income tax (benefit) expense from continuing operations		64			94			(4	)		28			40			(30	)		24
Net income from continuing operations		283			198			79			177			100			85			183
Income (loss) from discontinued operations, net of tax		40			29			25			(86	)		(1,027	)		11			1,067
Net income (loss)	$	323		$	227		$	104		$	91		$	(927	)	$	96		$	1,250

(1) Includes other interest income, net

2Q 2014 Preliminary Results 5

ALLY FINANCIAL INC. CONSOLIDATED PERIOD-END BALANCE SHEET  

($ in millions)

	QUARTERLY TRENDS															CHANGE VS.
Assets	6/30/2014			3/31/2014			12/31/2013			9/30/2013			6/30/2013			3/31/2014			6/30/2013
Cash and cash equivalents
Noninterest-bearing	$	1,373		$	1,342		$	1,315		$	1,063		$	1,292		$	31		$	81
Interest-bearing		4,404			4,551			4,216			5,486			6,482			(147	)		(2,078	)
Total cash and cash equivalents		5,777			5,893			5,531			6,549			7,774			(116	)		(1,997	)
Investment securities		16,748			16,327			17,083			17,967			17,015			421			(267	)
Loans held-for-sale, net		3			43			35			82			102			(40	)		(99	)
Finance receivables and loans, net
Finance receivables and loans, net		100,778			99,624			100,328			95,281			96,993			1,154			3,785
Allowance for loan losses		(1,171	)		(1,192	)		(1,208	)		(1,198	)		(1,183	)		21			12
Total finance receivables and loans, net		99,607			98,432			99,120			94,083			95,810			1,175			3,797
Investment in operating leases, net		18,814			18,187			17,680			17,254			16,085			627			2,729
Premiums receivables and other insurance assets		1,656			1,639			1,613			1,649			1,611			17			45
Other assets		6,758			7,390			9,589			7,059			6,701			(632	)		57
Assets of operations held-for-sale		574			541			516			5,913			5,529			33			(4,955	)
Total assets	$	149,937		$	148,452		$	151,167		$	150,556		$	150,627		$	1,485		$	(690	)
Liabilities
Deposit liabilities
Noninterest-bearing	$	75		$	71		$	60		$	66		$	72		$	4		$	3
Interest-bearing		56,016			55,296			53,290			51,965			50,053			720			5,963
Total deposit liabilities		56,091			55,367			53,350			52,031			50,125			724			5,966
Short-term borrowings		6,369			5,163			8,545			6,015			4,197			1,206			2,172
Long-term debt		67,913			68,295			69,465			60,701			64,534			(382	)		3,379
Interest payable		528			893			888			978			999			(365	)		(471	)
Unearned insurance premiums and service revenue		2,349			2,312			2,314			2,332			2,301			37			48
Accrued expense and other liabilities		1,809			1,963			2,397			4,836			5,043			(154	)		(3,234	)
Liabilities of operations held-for-sale		-			-			-			4,602			4,263			-			(4,263	)
Total liabilities	$	135,059		$	133,993		$	136,959		$	131,495		$	131,462		$	1,066		$	3,597
Equity
Common stock and paid-in capital	$	21,011		$	20,939		$	20,939		$	19,669		$	19,668		$	72		$	1,343
Mandatorily convertible preferred stock held by U.S. Department of Treasury		-			-			-			5,685			5,685			-			(5,685	)
Preferred stock		1,255			1,255			1,255			1,255			1,255			-			-
Accumulated deficit		(7,293	)		(7,551	)		(7,710	)		(7,365	)		(7,256	)		258			(37	)
Accumulated other comprehensive (loss) income		(95	)		(184	)		(276	)		(183	)		(187	)		89			92
Total equity		14,878			14,459			14,208			19,061			19,165			419			(4,287	)
Total liabilities and equity	$	149,937		$	148,452		$	151,167		$	150,556		$	150,627		$	1,485		$	(690	)

2Q 2014 Preliminary Results 6

ALLY FINANCIAL INC. CONSOLIDATED AVERAGE BALANCE SHEET ⁽¹⁾  

($ in millions)

	QUARTERLY TRENDS															CHANGE VS.
Assets	6/30/2014			3/31/2014			12/31/2013			9/30/2013			6/30/2013			3/31/2014			6/30/2013
Interest-bearing cash and cash equivalents	$	3,863		$	5,304		$	5,908		$	7,150		$	6,059		$	(1,441	)	$	(2,196	)
Trading assets		-			-			-			-			-			-			-
Investment securities		15,578			15,714			16,522			15,724			14,580			(136	)		998
Loans held-for-sale, net		26			11			39			67			297			15			(271	)
Total finance receivables and loans, net (2)		100,159			99,048			98,253			94,999			97,840			1,111			2,319
Investment in operating leases, net		18,544			17,998			17,514			16,744			15,616			546			2,928
Total interest earning assets		138,170			138,075			138,236			134,684			134,392			95			3,778
Noninterest-bearing cash and cash equivalents		1,550			1,441			1,319			1,546			1,708			109			(158	)
Other assets (3)		11,306			11,888			11,268			15,463			16,698			(582	)		(5,392	)
Allowance for loan losses		(1,201	)		(1,206	)		(1,205	)		(1,197	)		(1,197	)		5			(4	)
Total assets	$	149,825		$	150,198		$	149,618		$	150,496		$	151,601		$	(373	)	$	(1,776	)
Liabilities
Interest-bearing deposit liabilities	$	55,556		$	54,203		$	52,298		$	50,886		$	49,522		$	1,353		$	6,034
Short-term borrowings		6,149			6,643			6,268			4,505			3,937			(494	)		2,212
Long-term debt (4)		67,727			69,030			65,983			63,333			65,450			(1,303	)		2,277
Total interest-bearing liabilities (4)		129,432			129,876			124,549			118,724			118,909			(444	)		10,523
Noninterest-bearing deposit liabilities		70			66			66			67			274			4			(204	)
Other liabilities (3)		5,661			5,933			8,351			12,664			12,600			(272	)		(6,939	)
Total liabilities	$	135,163		$	135,875		$	132,966		$	131,455		$	131,783		$	(712	)	$	3,380
Equity
Total equity	$	14,662		$	14,323		$	16,652		$	19,041		$	19,818		$	339		$	(5,156	)
Total liabilities and equity	$	149,825		$	150,198		$	149,618		$	150,496		$	151,601		$	(373	)	$	(1,776	)

(1) Average balances are calculated using a combination of monthly and daily average methodologies

(2) Nonperforming finance receivables and loans are included in the average balances net of unearned income, unamortized premiums and discounts, and deferred fees and costs

(3) Assets and liabilities of discontinued operations are classified as other assets and other liabilities, respectively, in all periods

(4) QTD: Average balance includes $1,463 million and $1,694 million related to original issue discount at June 2014 and June 2013, respectively

2Q 2014 Preliminary Results 7

ALLY FINANCIAL INC. SEGMENT HIGHLIGHTS  

($ in millions)

	QUARTERLY TRENDS															CHANGE VS.
	2Q 14			1Q 14			4Q 13			3Q 13			2Q 13			1Q 14			2Q 13
Automotive Finance	$	461		$	339		$	207		$	339		$	382		$	122		$	79
Insurance		(23	)		74			65			83			45			(97	)		(68	)
Dealer Financial Services		438			413			272			422			427			25			11
Mortgage		27			17			(7	)		(4	)		(43	)		10			70
Corporate and Other (ex. OID) (1)		(65	)		(94	)		(123	)		(149	)		(183	)		29			118
Core pre-tax income (loss) (2)	$	400		$	336		$	142		$	269		$	201		$	64		$	199
Core OID amortization expense (3)		53			44			67			64			61			9			(7	)
Income tax expense (benefit)		64			94			(4	)		28			40			(30	)		24
Income (loss) from discontinued operations		40			29			25			(86	)		(1,027	)		11			1,067
Net income (loss)	$	323		$	227		$	104		$	91		$	(927	)	$	96		$	1,250

(1) Corporate and Other primarily consists of Ally’s centralized treasury activities, the residual impacts of the company’s corporate funds transfer pricing and asset liability management activities, and the amortization of the discount associated with debt issuances and bond exchanges. Corporate and Other also includes the Ally Corporate Finance business, certain equity investments and reclassifications, eliminations between the reportable operating segments, and overhead previously allocated to operations that have since been sold or discontinued

(2) Core pre-tax income (loss) is a non-GAAP financial measure. It is defined as income from continuing operations before taxes and primarily bond exchange OID amortization expense

(3) 2Q14 also includes $7 million in accelerated OID expense due to debt redemption

2Q 2014 Preliminary Results 8

ALLY FINANCIAL INC. AUTOMOTIVE FINANCE - CONDENSED FINANCIAL STATEMENTS  

($ in millions)

	QUARTERLY TRENDS															CHANGE VS.
Income Statement	2Q 14			1Q 14			4Q 13			3Q 13			2Q 13			1Q 14			2Q 13
Net financing revenue
Consumer	$	763		$	739		$	762		$	763		$	750		$	24		$	13
Commercial		262			264			266			246			268			(2	)		(6	)
Operating leases		884			870			855			832			788			14			96
Other interest income		2			3			4			5			6			(1	)		(4	)
Total financing revenue and other interest income		1,911			1,876			1,887			1,846			1,812			35			99
Interest expense		518			514			532			531			536			4			(18	)
Depreciation expense on operating lease assets:
Depreciation expense on operating lease assets (ex. remarketing)		677			651			629			610			590			26			87
Remarketing gains		(168	)		(109	)		(83	)		(95	)		(91	)		(59	)		(77	)
Total depreciation expense on operating lease assets		509			542			546			515			499			(33	)		10
Net financing revenue		884			820			809			800			777			64			107
Other revenue
Servicing fees		7			9			10			13			16			(2	)		(9	)
Other income		55			55			51			52			44			-			11
Total other revenue		62			64			61			65			60			(2	)		2
Total net revenue		946			884			870			865			837			62			109
Provision for loan losses		99			159			144			150			88			(60	)		11
Noninterest expense
Compensation and benefits		106			123			123			110			104			(17	)		2
Other operating expenses		280			263			396			266			263			17			17
Total noninterest expense		386			386			519			376			367			-			19
Income before income tax expense	$	461		$	339		$	207		$	339		$	382		$	122		$	79
Balance Sheet (Period-End)
Cash, trading and investment securities	$	34		$	35		$	36		$	10		$	10		$	(1	)	$	24
Finance receivables and loans, net:
Consumer loans		58,084			56,763			56,416			56,447			56,028			1,321			2,056
Commercial loans (1)		33,070			33,013			33,888			28,525			30,263			57			2,807
Allowance for loan losses		(822	)		(809	)		(769	)		(741	)		(706	)		(13	)		(116	)
Total finance receivables and loans, net		90,332			88,967			89,535			84,231			85,585			1,365			4,747
Investment in operating leases, net		18,814			18,187			17,680			17,254			16,085			627			2,729
Other assets		1,580			1,577			1,545			1,300			821			3			759
Assets of operations held-for-sale		574			541			516			5,814			4,984			33			(4,410	)
Total assets	$	111,334		$	109,307		$	109,312		$	108,609		$	107,485		$	2,027		$	3,849

(1) Includes Intercompany

2Q 2014 Preliminary Results 9

ALLY FINANCIAL INC. AUTOMOTIVE FINANCE - KEY STATISTICS  

	QUARTERLY TRENDS															CHANGE VS.
U.S. Market	2Q 14			1Q 14			4Q 13			3Q 13			2Q 13			1Q 14			2Q 13
Light vehicle sales (SAAR - units in millions)		16.5			15.6			15.6			15.7			15.3			0.9			1.2
Light vehicle sales (quarterly - units in millions)		4.4			3.7			3.8			3.9			4.1			0.7			0.3
GM market share		18.3	%		17.4	%		17.6	%		17.7	%		18.4	%
Chrysler market share		12.4	%		12.8	%		11.7	%		11.4	%		11.7	%
U.S. Consumer Originations(1)($ in billions)
GM new retail subvented	$	0.9		$	0.9		$	0.8		$	1.1		$	1.3		$	0.0		$	(0.4	)
GM new retail standard		1.9			1.5			1.5			1.7			1.6			0.4			0.3
Chrysler new retail subvented		-			-			0.0			-			0.2			-			(0.2	)
Chrysler new retail standard		1.0			0.7			0.7			0.8			1.0			0.3			0.1
Diversified new		0.8			0.6			0.5			0.6			0.6			0.2			0.2
Lease		3.2			2.7			2.3			2.8			2.8			0.5			0.4
Used		3.1			2.8			2.3			2.6			2.5			0.3			0.6
Total originations	$	10.9		$	9.2		$	8.2		$	9.6		$	9.8		$	1.7		$	1.1
U.S. Consumer Penetration
GM		28.5	%		27.7	%		26.5	%		28.4	%		29.4	%
Chrysler		10.9	%		8.3	%		10.1	%		9.8	%		15.6	%
U.S. Commercial Outstandings EOP($ in billions)
Floorplan outstandings, net	$	29.0		$	29.1		$	30.1		$	24.8		$	26.6		$	(0.1	)	$	2.4
Other dealer loans		4.0			3.8			3.7			3.6			3.6			0.2			0.5
Total Commercial outstandings	$	33.0		$	33.0		$	33.8		$	28.5		$	30.2		$	0.1		$	2.8
U.S. Floorplan Penetration (2)
GM penetration		64.7	%		64.1	%		64.9	%		66.5	%		68.0	%
Chrysler penetration		44.8	%		46.4	%		46.8	%		49.0	%		52.4	%
U.S. Off-Lease Remarketing
Off-lease vehicles terminated - On-balance sheet (# in units)		85,143			61,001			45,693			36,811			34,159			24,142			50,984
Average gain per vehicle	$	1,978		$	1,791		$	1,811		$	2,571		$	2,657		$	187		$	(680	)
Total gains ($ in millions)	$	168		$	109		$	83		$	95		$	91		$	59		$	78

(1) Some standard rate loan originations contain manufacturer sponsored cash back rebate incentives. Some lease originations contain rate subvention. While Ally may jointly develop marketing programs for these originations, Ally does not have exclusive rights to such originations under operating agreements with manufacturers

(2) Penetration rates are based on the trailing four month average for the quarter

2Q 2014 Preliminary Results 10

ALLY FINANCIAL INC. INSURANCE - CONDENSED FINANCIAL STATEMENTS AND KEY STATISTICS  

($ in millions)

	QUARTERLY TRENDS															CHANGE VS.
Income Statement	2Q 14			1Q 14			4Q 13			3Q 13			2Q 13			1Q 14			2Q 13
Insurance premiums and other income
Insurance premiums and service revenue earned	$	249		$	241		$	244		$	251		$	258		$	8		$	(9	)
Investment income		54			43			37			55			77			11			(23	)
Other income		3			3			3			3			5			-			(2	)
Total insurance premiums and other income		306			287			284			309			340			19			(34	)
Expense
Insurance losses and loss adjustment expenses		188			68			59			85			146			120			42
Acquisition and underwriting expenses
Compensation and benefit expense		15			16			16			15			16			(1	)		(1	)
Insurance commission expense		94			89			92			93			94			5			0
Other expense		32			40			52			33			39			(8	)		(7	)
Total acquisition and underwriting expense		141			145			160			141			149			(4	)		(8	)
Total expense		329			213			219			226			295			116			34
Income from cont. ops before income tax expense	$	(23	)	$	74		$	65		$	83		$	45		$	(97	)	$	(68	)
Balance Sheet (Period-End)
Cash, trading and investment securities	$	5,368		$	5,314		$	5,295		$	5,433		$	5,466		$	54		$	(98	)
Finance receivables and loans, net		-			-			-			-			5			-			(5	)
Premiums receivable and other insurance assets		1,666			1,650			1,624			1,657			1,620			16			46
Other assets		198			220			205			233			245			(22	)		(47	)
Assets of operations held-for-sale		-			-			-			-			-			-			-
Total assets	$	7,232		$	7,184		$	7,124		$	7,323		$	7,336		$	48		$	(104	)
Key Statistics (Continuing Operations)
Written Premiums
Dealer Products & Services (1)	$	267		$	244		$	225		$	267		$	276		$	23		$	(9	)
Corporate		0			-			0			0			(4	)		0			4
Total written premiums and revenue (1)	$	267		$	244		$	225		$	267		$	271		$	23		$	(5	)
Loss ratio		75.1	%		27.9	%		23.7	%		33.7	%		56.3	%
Underwriting expense ratio		55.7	%		60.0	%		65.3	%		55.9	%		56.6	%
Combined ratio		130.9	%		87.9	%		89.0	%		89.6	%		112.9	%

(1) Excludes Canadian Personal Lines business, which is in runoff

2Q 2014 Preliminary Results 11

ALLY FINANCIAL INC. MORTGAGE - CONDENSED FINANCIAL STATEMENTS AND KEY STATISTICS  

($ in millions)

	QUARTERLY TRENDS															CHANGE VS.
Income Statement	2Q 14			1Q 14			4Q 13			3Q 13			2Q 13			1Q 14			2Q 13
Net financing revenue
Total financing revenue and other interest income	$	73		$	76		$	80		$	83		$	93		$	(3	)	$	(20	)
Interest expense		61			62			66			70			78			(1	)		(17	)
Net financing revenue		12			14			14			13			15			(2	)		(3	)
Servicing fees		-			-			2			-			3			-			(3	)
Servicing asset valuation and hedge activities, net		-			-			-			-			(12	)		-			12
Total servicing income, net		-			-			2			-			(9	)		-			9
Gain on mortgage loans, net		6			-			3			15			(1	)		6			7
Other income, net of losses		3			4			1			4			4			(1	)		(1	)
Total other revenue		9			4			6			19			(6	)		5			15
Total net revenue		21			18			20			32			9			3			12
Provision for loan losses		(25	)		(23	)		(1	)		(12	)		6			(2	)		(31	)
Noninterest expense
Compensation and benefits expense		2			4			4			7			3			(2	)		(1	)
Representation and warranty expense		-			1			1			22			(2	)		(1	)		2
Other operating expense		17			19			23			19			45			(2	)		(28	)
Total noninterest expense		19			24			28			48			46			(5	)		(27	)
Income (loss) from cont. ops before income tax expense	$	27		$	17		$	(7	)	$	(4	)	$	(43	)	$	10		$	70
Balance Sheet (Period-End)
Loans held-for-sale	$	3		$	43		$	16		$	63		$	56		$	(40	)	$	(53	)
Finance receivables and loans, net:
Consumer loans		7,847			8,138			8,444			8,772			9,270			(291	)		(1,423	)
Allowance for loan losses		(302	)		(333	)		(389	)		(407	)		(431	)		31			129
Total finance receivables and loans, net		7,545			7,805			8,055			8,365			8,839			(260	)		(1,294	)
Mortgage servicing rights		-			-			-			-			-			-			-
Other assets (1)		92			89			97			134			166			3			(74	)
Total assets	$	7,640		$	7,937		$	8,168		$	8,562		$	9,061		$	(297	)	$	(1,421	)

(1) Includes derivative assets which are reflected on a gross basis on the balance sheet, assets of discontinued operations held-for-sale and other assets

2Q 2014 Preliminary Results 12

ALLY FINANCIAL INC. CORPORATE AND OTHER - CONDENSED FINANCIAL STATEMENTS  

($ in millions)

	QUARTERLY TRENDS															CHANGE VS.
Income Statement	2Q 14			1Q 14			4Q 13			3Q 13			2Q 13			1Q 14			2Q 13
Net financing loss
Total financing revenue and other interest income	$	90		$	94		$	95		$	79		$	71		$	(4	)	$	19
Interest expense
Core original issue discount amortization (1)		46			44			67			64			61			2			(15	)
Other interest expense		90			78			91			107			189			12			(99	)
Total interest expense		136			122			158			171			250			14			(114	)
Net financing loss		(46	)		(28	)		(63	)		(92	)		(179	)		(18	)		133
Other revenue
Loss on extinguishment of debt		(7	)		(39	)		(17	)		(42	)		-			32			(7	)
Other gain on investments, net		2			14			-			-			-			(12	)		2
Other income, net of losses (2)		9			6			5			36			23			3			(14	)
Total other (loss) revenue		4			(19	)		(12	)		(6	)		23			23			(19	)
Total net expense		(42	)		(47	)		(75	)		(98	)		(156	)		5			114
Provision for loan losses		(11	)		1			(3	)		3			(5	)		(12	)		(6	)
Noninterest expense
Compensation and benefits expense		92			111			94			113			129			(19	)		(37	)
Other operating expense (3)		(5	)		(21	)		24			(1	)		(36	)		16			31
Total noninterest expense		87			90			118			112			93			(3	)		(6	)
Loss from cont. ops before income tax expense	$	(118	)	$	(138	)	$	(190	)	$	(213	)	$	(244	)	$	20		$	126
Balance Sheet (Period-End)
Cash, trading and investment securities	$	17,123		$	16,871		$	17,283		$	19,073		$	19,313		$	252		$	(2,190	)
Loans held-for-sale		-			-			19			19			46			-			(46	)
Finance receivables and loans, net
Consumer loans		30			12			1			3			-			18			30
Commercial loans(4)		1,747			1,698			1,579			1,534			1,427			49			320
Allowance for loan losses		(47	)		(50	)		(50	)		(50	)		(46	)		3			(1	)
Total finance receivables and loans, net		1,730			1,660			1,530			1,487			1,381			70			349
Other assets		4,878			5,493			7,731			5,384			5,460			(615	)		(582	)
Assets of operations held-for-sale		-			-			-			99			545			-			(545	)
Total assets	$	23,731		$	24,024		$	26,563		$	26,062		$	26,745		$	(293	)	$	(3,014	)
OID Amortization Schedule (5)				2014			2015			2016 and After
Remaining Core OID Amortization (as of 6/30/2014)				$	82		$	45			Avg = $52/yr

(1) Does not include $7 million of accelerated OID expense in 2Q14, which comes through other revenue

(2) Includes gain/(loss) on mortgage and automotive loans

(3) Includes reductions of $161 million for June 2014, $185 million for March 31, 2014, $187 million for December 31, 2013, $181 million for September 30, 2013, and $178 million for June 30, 2013 related to the allocation of corporate overhead expenses to other segments. The receiving segments record their allocation of corporate overhead expense within other operating expense

(4) Includes Intercompany

(5) Primarily represents bond exchange OID amortization expense used for calculating core pre-tax income

2Q 2014 Preliminary Results 13

ALLY FINANCIAL INC. CREDIT RELATED INFORMATION  

($ in millions) 

	QUARTERLY TRENDS															CHANGE VS.
Asset Quality - Consolidated (1)	2Q 14			1Q 14			4Q 13			3Q 13			2Q 13			1Q 14			2Q 13
Ending loan balance	$	100,777		$	99,623		$	100,327		$	95,281		$	96,993		$	1,154		$	3,785
30+ Accruing DPD	$	1,245		$	956		$	1,408		$	1,265		$	1,084		$	289		$	161
30+ Accruing DPD %		1.2	%		1.0	%		1.4	%		1.3	%		1.1	%
Non-performing loans (NPLs)	$	611		$	710		$	725		$	783		$	1,006		$	(99	)	$	(395	)
Net charge-offs (NCOs)	$	85		$	133		$	129		$	126		$	103		$	(48	)	$	(18	)
Net charge-off rate (2)		0.3	%		0.5	%		0.5	%		0.5	%		0.4	%
Provision for loan losses	$	63		$	137		$	140		$	141		$	89		$	(74	)	$	(26	)
Allowance for loan losses (ALLL)	$	1,171		$	1,192		$	1,208		$	1,198		$	1,183		$	(21	)	$	(12	)
ALLL as % of Loans (3)		1.2	%		1.2	%		1.2	%		1.3	%		1.2	%
ALLL as % of NPLs (3)		191.8	%		167.9	%		166.6	%		153.0	%		117.6	%
ALLL as % of NCOs (3)		344.2	%		223.8	%		233.6	%		237.8	%		287.2	%
U.S. Auto Delinquencies - HFI Retail Contract Amount(4)
Delinquent contract $	$	1,174		$	904		$	1,325		$	1,188		$	999		$	270		$	175
% of retail contract $ outstanding		2.02	%		1.59	%		2.35	%		2.10	%		1.78	%
U.S. Auto Annualized Net Charge-Offs - HFI Retail Contract Amount
Net charge-offs	$	83		$	121		$	114		$	115		$	80		$	(37	)	$	3
% of avg. HFI assets		0.58	%		0.85	%		0.80	%		0.82	%		0.57	%
U.S. Auto Annualized Net Charge-Offs - HFI Commercial Contract Amount
Net charge-offs	$	1		$	0		$	2		$	0		$	(1	)	$	1		$	1
% of avg. HFI assets		0.01	%		0.00	%		0.03	%		0.00	%		-0.01	%

(1) Loans within this table are classified as held-for-investment recorded at historical cost as these loans are included in our allowance for loan losses

(2) Net charge-off ratios are calculated as annualized net charge-offs divided by average outstanding finance receivables and loans excluding loans measured at fair value and loans held-for-sale

(3) ALLL coverage ratios are based on the allowance for loan losses related to loans held-for-investment excluding those loans held at fair value as a percentage of the unpaid principal balance, net of premiums and discounts

(4) Dollar amount of accruing contracts greater than 30 days past due

2Q 2014 Preliminary Results 14

ALLY FINANCIAL INC. CREDIT RELATED INFORMATION, CONTINUED  

($ in millions)

CONTINUING OPERATIONS
Automotive Finance (1)(2)	QUARTERLY TRENDS															CHANGE VS.
Consumer	2Q 14			1Q 14			4Q 13			3Q 13			2Q 13			1Q 14			2Q 13
Allowance for loan losses	$	729		$	715		$	673		$	651		$	610		$	14		$	119
Total consumer loans (3)	$	58,114		$	56,775		$	56,417		$	56,450		$	56,028		$	1,339		$	2,086
Coverage ratio		1.3	%		1.3	%		1.2	%		1.2	%		1.1	%
Commercial
Allowance for loan losses	$	93		$	94		$	96		$	90		$	96		$	(0	)	$	(3	)
Total commercial loans	$	33,041		$	32,984		$	33,803		$	28,452		$	30,193		$	57		$	2,848
Coverage ratio		0.3	%		0.3	%		0.3	%		0.3	%		0.3	%
Mortgage (1)(2)
Consumer
Allowance for loan losses	$	302		$	333		$	389		$	407		$	431		$	(31	)	$	(128	)
Total consumer loans	$	7,846		$	8,137		$	8,443		$	8,772		$	9,270		$	(291	)	$	(1,423	)
Coverage ratio		3.9	%		4.1	%		4.6	%		4.6	%		4.6	%
Corporate and Other (1)(4)
Allowance for loan losses	$	47		$	50		$	50		$	50		$	46		$	(3	)	$	1
Total commercial loans	$	1,776		$	1,727		$	1,664		$	1,607		$	1,502		$	49		$	274
Coverage ratio		2.6	%		2.9	%		3.0	%		3.1	%		3.0	%

(1) ALLL coverage ratios are based on the allowance for loan losses related to loans held-for-investment excluding those loans held at fair value as a percentage of the unpaid principal balance, net of premiums and discounts

(2) Represents domestic allowance for loan losses only

(3) Includes $30 million Corp. Treasury hedging activity related to domestic consumer auto outstandings in 2Q14, $12 million in 1Q14, $1 million in 4Q13 and $3 million in 3Q13.

(4) Includes Insurance

2Q 2014 Preliminary Results 15

ALLY FINANCIAL INC. CAPITAL  

($ in billions)

	QUARTERLY TRENDS															CHANGE VS.
Cost of Funds	2Q 14			1Q 14			4Q 13			3Q 13			2Q 13			1Q 14			2Q 13
Ally Financial's cost of borrowing (incl. OID)		2.3	%		2.2	%		2.5	%		2.6	%		3.0	%
Ally Financial's cost of borrowing (excl. OID)		2.1	%		2.1	%		2.2	%		2.4	%		2.7	%
Capital
Risk-weighted assets	$	129.2		$	127.7		$	128.6		$	127.3		$	127.2		$	1.5		$	2.0
Tier 1 capital ratio		12.3	%		12.1	%		11.8	%		15.4	%		15.4	%
Tier 1 common capital ratio		9.4	%		9.1	%		8.8	%		7.9	%		8.0	%
Total risk-based capital ratio		13.2	%		13.0	%		12.8	%		16.4	%		16.5	%
Tangible common equity / Tangible assets		9.1	%		8.9	%		8.6	%		7.9	%		8.0	%
Tangible common equity / Risk-weighted assets		10.5	%		10.3	%		10.1	%		9.4	%		9.5	%
Shareholders’ equity	$	14.9		$	14.5		$	14.2		$	19.1		$	19.2		$	0.4		$	(4.3	)
less:  Goodwill and certain other intangibles		-			-			-			(0.2	)		(0.2	)		-			0.2
Disallowed DTA		(1.3	)		(1.5	)		(1.6	)		(1.9	)		(2.0	)		0.2			0.7
Certain AOCI items and other adjustments		(0.2	)		-			0.1			0.1			0.1			(0.2	)		(0.3	)
add:   Trust preferred securities		2.5			2.5			2.5			2.5			2.5			-			-
Tier 1 capital	$	15.9		$	15.5		$	15.2		$	19.6		$	19.7		$	0.4		$	(3.8	)
Tier 1 capital	$	15.9		$	15.5		$	15.2		$	19.6		$	19.7		$	0.4		$	(3.8	)
less:  Preferred equity		(1.3	)		(1.3	)		(1.3	)		(6.9	)		(6.9	)		-			5.6
Trust preferred securities		(2.5	)		(2.5	)		(2.5	)		(2.5	)		(2.5	)		-			-
Tier 1 common capital (1)	$	12.1		$	11.7		$	11.4		$	10.1		$	10.2		$	0.4		$	1.9
Tier 1 capital	$	15.9		$	15.5		$	15.2		$	19.6		$	19.7		$	0.4		$	(3.8	)
add:    Qualifying subordinated debt and redeemable preferred stock		0.2			0.2			0.3			0.3			0.3			-			(0.1	)
Allowance for loan and lease losses includible in Tier 2 capital and other adjustments		0.9			0.9			1.0			1.1			1.0			-			(0.1	)
Total risk-based capital	$	17.1		$	16.6		$	16.4		$	20.9		$	21.0		$	0.5		$	(3.9	)
Total shareholders' equity	$	14.9		$	14.5		$	14.2		$	19.1		$	19.2		$	0.4		$	(4.3	)
less:  Preferred equity		(1.3	)		(1.3	)		(1.3	)		(6.9	)		(6.9	)		-			5.6
Goodwill and intangible assets		-			-			-			(0.2	)		(0.2	)		-			0.2
Tangible common equity (2)	$	13.6		$	13.2		$	12.9		$	11.9		$	12.0		$	0.4		$	1.6
Total assets	$	149.9		$	148.5		$	151.2		$	150.6		$	150.6		$	1.4		$	(0.7	)
less:  Goodwill and intangible assets		-			-			-			(0.2	)		(0.2	)		-			0.2
Tangible assets	$	149.9		$	148.4		$	151.1		$	150.4		$	150.4		$	1.5		$	(0.5	)

Note: Numbers may not foot due to rounding

(1) We define Tier 1 common as Tier 1 capital less noncommon elements including qualified perpetual preferred stock, qualifying minority interest in subsidiaries, and qualifying trust preferred securities. Ally considers various measures when evaluating capital utilization and adequacy, including the Tier 1 common equity ratio, in addition to capital ratios defined by banking regulators. This calculation is intended to complement the capital ratios defined by banking regulators for both absolute and comparative purposes. Because GAAP does not include capital ratio measures, Ally believes there are no comparable GAAP financial measures to these ratios. Tier 1 common equity is not formally defined by GAAP or codified in the federal banking regulations and, therefore, is considered to be a non-GAAP financial measure. Ally believes the Tier 1 common equity ratio is important because we believe analysts and banking regulators may assess our capital adequacy using this ratio. Additionally, presentation of this measure allows readers to compare certain aspects of our capital adequacy on the same basis to other companies in the industry.

(2) We define tangible common equity as common stockholders’ equity less goodwill and identifiable intangible assets (other than mortgage servicing rights), net of deferred tax liabilities. Ally considers various measures when evaluating capital adequacy, including tangible common equity. Tangible common equity is not formally defined by GAAP or codified in the federal banking regulations and, therefore, is considered to be a non-GAAP financial measure. Ally believes that tangible common equity is important because we believe analysts and banking regulators may assess our capital adequacy using this measure. Additionally, presentation of this measure allows readers to compare certain aspects of our capital adequacy on the same basis to other companies in the industry.

2Q 2014 Preliminary Results 16

ALLY FINANCIAL INC. LIQUIDITY  

($ in billions)

	6/30/2014					3/31/2014					6/30/2013
Available Liquidity	Parent (1)		Ally Bank			Parent (1)		Ally Bank			Parent (1)		Ally Bank
Cash and cash equivalents (2)	$	2.9	$	2.2		$	2.9	$	2.5		$	4.5	$	3.1
Highly liquid securities (3)		2.5		6.6			2.2		5.9			2.5		6.7
Current committed unused capacity (4)	��	3.6		1.0			4.6		1.0			12.3		3.9
Subtotal	$	9.0	$	9.8		$	9.7	$	9.4		$	19.3	$	13.7
Ally Bank intercompany loan (5)		1.7		(1.7	)		0.5		(0.5	)		3.4		(3.4	)
Total Current Available Liquidity	$	10.7	$	8.1		$	10.2	$	8.9		$	22.7	$	10.3
Forward commited unused capacity (6)		-		-			-		-			1.3		-
Total Available Liquidity	$	10.7	$	8.1		$	10.2	$	8.9		$	24.0	$	10.3

Unsecured Long-Term Debt Maturity Profile	2014		2015		2016		2017		2018		2019 and After
Consolidated remaining maturities	$	1.8	$	5.0	$	1.9	$	4.1	$	1.3	$	10.1

(1) Parent company liquidity is defined as our consolidated operations less Ally Bank and the regulated subsidiaries of Ally Insurance's holding company

(2) May include the restricted cash accumulation for retained notes maturing within the following 30 days and returned to Ally on the distribution date

(3) Includes UST, Agency debt and Agency MBS

(4) Includes equal allocation of shared unused capacity totaling $4.1 billion 2Q13, which was available for use by Ally Bank or the Parent. As of 3Q13, the facility was renewed for the exclusive use of the Parent.

(5) To optimize use of cash between entities, Ally Financial lends cash to Ally Bank from time to time under an intercompany loan agreement. Amounts outstanding on this loan are repayable to Ally Financial at any time, subject to 5 days notice

(6) Represents capacity from certain forward purchase commitments and committed secured facilities that were generally reliant upon the origination of future automotive receivables in 2013. As of December 31, 2013, these funding facilities have matured

2Q 2014 Preliminary Results 17

ALLY FINANCIAL INC. DEPOSITS  

($ in millions)

	QUARTERLY TRENDS															CHANGE VS.
Key Statistics	2Q 14			1Q 14			4Q 13			3Q 13			2Q 13			1Q 14			2Q 13
Average retail CD maturity (months)		31.1			31.2			31.0			30.8			30.4			(0.0	)		0.7
Average retail deposit rate		1.17	%		1.19	%		1.21	%		1.22	%		1.24	%
Ally Financial Deposits Levels
Ally Bank retail	$	45,934		$	45,193		$	43,172		$	41,691		$	39,859		$	742		$	6,075
Ally Bank brokered		9,684			9,683			9,678			9,724			9,552			2			133
Other		473			491			500			616			714			(18	)		(241	)
Total deposits	$	56,091		$	55,367		$	53,350		$	52,031		$	50,125		$	724		$	5,966
Ally Bank Deposit Mix
Retail CD		42.5	%		43.1	%		44.7	%		44.8	%		45.7	%
MMA/OSA/Checking		40.1	%		39.2	%		37.1	%		36.2	%		35.0	%
Brokered CD		17.4	%		17.7	%		18.2	%		18.9	%		19.3	%

2Q 2014 Preliminary Results 18

ALLY FINANCIAL INC. ALLY BANK CONSUMER MORTGAGE HFI PORTFOLIO (PERIOD-END)  

($ in billions)

	HISTORICAL QUARTERLY TRENDS
Loan Value (1)	2Q 14			1Q 14			4Q 13			3Q 13			2Q 13
Gross carry value	$	7.8		$	8.1		$	8.4		$	8.7		$	9.2
Net carry value	$	7.5		$	7.8		$	8.0		$	8.3		$	8.8
Estimated Pool Characteristics
Ongoing (originated post 1/1/2009)		38.7	%		39.1	%		39.3	%		39.6	%		40.3	%
Legacy (originated pre 1/1/2009)		61.3	%		60.9	%		60.7	%		60.4	%		59.7	%
% Second lien		11.0	%		11.1	%		11.1	%		11.2	%		11.2	%
% Interest only		13.5	%		13.5	%		13.8	%		14.9	%		15.3	%
% 30+ Day delinquent		2.7	%		2.5	%		2.8	%		2.7	%		2.8	%
% Low/No documentation		14.2	%		14.1	%		14.1	%		14.0	%		13.8	%
% Non-primary residence		3.8	%		3.7	%		3.7	%		3.7	%		3.7	%
Refreshed FICO		726			727			728			729			731
Wtd. Avg. LTV/CLTV (2)		76.6	%		77.8	%		79.1	%		84.0	%		84.9	%
Higher risk geographies  (3)		40.4	%		40.5	%		40.5	%		40.5	%		40.6	%

(1) Excludes education loans

(2) Updated home values derived using a combination of appraisals, BPOs, AVMs and MSA level house price indices

(3) Includes CA, FL, MI and AZ

2Q 2014 Preliminary Results 19

ALLY FINANCIAL INC. DISCONTINUED OPERATIONS  

($ in millions)

	QUARTERLY TRENDS														INC / (DEC) VS.
Impact of Discontinued Operations (1)	2Q 14		1Q 14			4Q 13			3Q 13			2Q 13			1Q 14			2Q 13
Auto Finance	$	22	$	28		$	(149	)	$	60		$	(245	)	$	(6	)	$	267
Insurance		1		(0	)		0			5			294			1			(293	)
Corporate and Other (2)		25		(1	)		80			(161	)		(1,693	)		26			1,718
Consolidated pretax income	$	48	$	27		$	(69	)	$	(96	)	$	(1,644	)	$	20		$	1,691
Tax expense (benefit)		7		(1	)		(93	)		(10	)		(617	)		9			624
Consolidated net income	$	40	$	29		$	25		$	(86	)	$	(1,027	)	$	11		$	1,067
Assets of discontinued operations held-for-sale	$	574	$	541		$	516		$	5,913		$	5,529		$	33		$	(4,955	)
Businesses classified as discontinued operations above
Automotive Finance
France and China (J.V.)
Insurance
ABA Seguros
U.K.-based operations that provide vehicle service contracts and insurance products in Europe and Latin America
Mortgage
ResCap

(1) Included are operations that have been wound down or sold in addition to those held-for-sale

(2) Includes FHFA and FDIC settlement charge in 3Q13 and ResCap settlement charge in 2Q13

Note: The sales of Canada and Europe (ex. France) were completed 1Q13

2Q 2014 Preliminary Results 20

ALLY FINANCIAL INC. PER SHARE-RELATED INFORMATION  

($ in millions, shares in thousands)

	QUARTERLY TRENDS													CHANGE VS.
Earnings Per Share Data	2Q 14		1Q 14		4Q 13			3Q 13			2Q 13			1Q 14			2Q 13
Net income (loss)	$	323	$	227	$	104		$	91		$	(927	)	$	96		$	1,250
less:  Preferred stock dividends		65		68		448			200			200			(3	)		(135	)
Net income (loss) available to common shareholders	$	258	$	159	$	(344	)	$	(110	)	$	(1,127	)	$	99		$	1,385
Weighted-average shares outstanding - basic (1)		481,350		479,768		442,863			412,601			412,601			1,583			68,750
Weighted-average shares outstanding - diluted (1)(2)		482,343		479,768		442,863			412,601			412,601			2,575			69,742
Net income (loss) per share - basic (1)	$	0.54	$	0.33	$	(0.78	)	$	(0.27	)	$	(2.73	)	$	0.21		$	3.27
Net income (loss) per share - diluted (1)(2)	$	0.54	$	0.33	$	(0.78	)	$	(0.27	)	$	(2.73	)	$	0.21		$	3.27

(1) Includes 1.6 million shares related to share-based compensation that have vested but not yet been issued as of June 30, 2014

(2) The effects of converting the outstanding Fixed Rate Cumulative Mandatorily Convertible Preferred Stock into common shares are not included in the diluted earnings per share calculation for the three months ended June 30, September 30, and December 31 2013, as the effects would be antidilutive for those periods. As such, 574 thousand of potential common shares were excluded from the diluted earnings per share calculation for the three months ended June 30, September 30, and December 31 2013, respectively

2Q 2014 Preliminary Results 21

ALLY FINANCIAL INC. SUPPLEMENTAL FINANCIAL DATA  

($ in millions)

	QUARTERLY TRENDS															CHANGE VS.
Core ROTCE Calculation	2Q 14			1Q 14			4Q 13			3Q 13			2Q 13			1Q 14			2Q 13
Pre-tax income (loss) from continuing operations	$	347		$	292		$	75		$	205		$	140		$	56		$	207
add:  Core original issue discount expense		53			44			67			64			61			10			(7	)
Repositioning items		16			3			18			2			11			13			6
Core pre-tax income	$	417		$	339		$	161		$	271		$	211		$	78		$	206
Normalized income tax expense at 34%		142			115			55			92			72			27			70
Core net income		275			224			106			179			140			52			136
Preferred dividends (Series A & G)		65			68			67			67			67			(3	)		(2	)
Operating net income available to common shareholders (1)	$	210		$	155		$	39		$	112		$	73		$	55		$	137
Tangible common equity (2)	$	13,386		$	13,060		$	12,438		$	11,985		$	12,541		$	326		$	845
less: Unamortized original issue discount		1,461			1,510			1,565			1,631			1,693			(49	)		(232	)
Net deferred tax asset		1,872			1,979			2,018			1,987			1,658			(107	)		214
Normalized common equity (1)(3)	$	10,053		$	9,571		$	8,855		$	8,367		$	9,190		$	482		$	863
Core ROTCE (1)		8.4	%		6.5	%		1.8	%		5.4	%		3.1	%
Adjusted Efficiency Ratio Calculation
Total noninterest expense	$	821		$	713		$	884		$	762		$	801		$	108		$	20
less: Rep and warrant expense		0			1			1			22			(2	)		(0	)		2
Insurance expense		329			213			219			226			295			116			34
Repositioning items		16			3			19			7			2			13			15
Numerator	$	475		$	496		$	645		$	507		$	506		$	(21	)	$	(31	)
Total net revenue	$	1,231		$	1,142		$	1,099		$	1,108		$	1,030		$	89		$	201
add:  Original issue discount		53			44			67			64			61			10			(7	)
Repositioning		-			-			(1	)		(4	)		9			-			(9	)
less:  Insurance revenue		306			287			284			309			340			19			(34	)
Denominator	$	978		$	899		$	881		$	858		$	760		$	80		$	219
Adjusted Efficiency Ratio (1)		49	%		55	%		73	%		59	%		67	%

(1) Represents a non-GAAP financial measure

(2) See page 16 for details

(3) Normalized common equity calculated using 2 period average

2Q 2014 Preliminary Results 22