Exhibit 99.3
FIRST QUARTER 2017
FINANCIAL SUPPLEMENT
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ALLY FINANCIAL INC. FORWARD-LOOKING STATEMENTS AND ADDITIONAL INFORMATION | | |
This document and related communications should be read in conjunction with the financial statements, notes, and other information contained in our 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 and third-party data available at the time of the presentation or related communication.
This document and related communications contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements can be identified by the fact that they do not relate strictly to historical or current facts—such as our statements about targets and expectations for various financial and operating metrics. Forward-looking statements often use words such as “believe,” “expect,” “anticipate,” “intend,” “pursue,” “seek,” “continue,” “estimate,” “project,” “outlook,” “forecast,” “potential,” “target,” “objective,” “trend,” “plan,” “goal,” “initiative,” “priorities,” or other words of comparable meaning or future-tense or conditional verbs such as “may,” “will,” “should,” “would,” or “could.” Forward-looking statements convey our expectations, intentions, or forecasts about future events, circumstances, or results. All forward-looking statements, by their nature, are subject to assumptions, risks, and uncertainties, which may change over time and many of which are beyond our control. You should not rely on any forward-looking statement as a prediction or guarantee about the future. Actual future objectives, strategies, plans, prospects, performance, conditions, or results may differ materially from those set forth in any forward-looking statement. Some of the factors that may cause actual results or other future events or circumstances to differ from those in forward-looking statements are described in our Annual Report on Form 10-K for the year ended December 31, 2016, our subsequent Quarterly Reports on Form 10-Q or Current Reports on Form 8-K, or other applicable documents that are filed or furnished with the U.S. Securities and Exchange Commission (collectively, our “SEC filings”). Any forward-looking statement made by us or on our behalf speaks only as of the date that it was made. We do not undertake to update any forward-looking statement to reflect the impact of events, circumstances, or results that arise after the date that the statement was made, except as required by applicable securities laws. You, however, should consult further disclosures (including disclosures of a forward-looking nature) that we may make in any subsequent SEC filings.
This document and related communications contain specifically identified non-GAAP financial measures, which supplement the results that are reported according to generally accepted accounting principles (“GAAP”). These non-GAAP financial measures may be useful to investors but should not be viewed in isolation from, or as a substitute for, GAAP results. Differences between non-GAAP financial measures and comparable GAAP financial measures are reconciled in the presentation.
Our use of the term “loans” describes all of the products associated with our direct and indirect lending activities. The specific products include loans, retail installment sales contracts, lines of credit, leases, and other financing products. The term “lend” or “originate” refers to our direct origination of loans or our purchase or acquisition of loans.
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1Q 2017 Preliminary Results | | 2 |
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ALLY FINANCIAL INC. TABLE OF CONTENTS | | |
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| | Page(s) |
Consolidated Results | | | | |
Consolidated Financial Highlights | | | 4 | |
Consolidated Income Statement | | | 5 | |
Consolidated Period-End Balance Sheet | | | 6 | |
Consolidated Average Balance Sheet | | | 7 | |
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Segment Detail | | | | |
Segment Highlights | | | 8 | |
Automotive Finance | | | 9-10 | |
Insurance | | | 11 | |
Mortgage Finance | | | 12 | |
Corporate Finance | | | 13 | |
Corporate and Other | | | 14 | |
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Credit Related Information | | | 15-16 | |
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Supplemental Detail | | | | |
Capital | | | 17 | |
Liquidity | | | 18 | |
Net Interest Margin and Deposits | | | 19 | |
Ally Bank Consumer Mortgage HFI Portfolio | | | 20 | |
Earnings Per Share Related Information | | | 21 | |
Adjusted Tangible Book Per Share Related Information | | | 22 | |
Core ROTCE Related Information | | | 23 | |
Adjusted Efficiency Ratio Related Information | | | 24 | |
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1Q 2017 Preliminary Results | | 3 |
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ALLY FINANCIAL INC. CONSOLIDATED FINANCIAL HIGHLIGHTS | | |
($ in millions, shares in thousands)
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| | QUARTERLY TRENDS | | CHANGE VS. |
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Selected Income Statement Data | | 1Q 17 | | 4Q 16 | | 3Q 16 | | 2Q 16 | | 1Q 16 | | 4Q 16 | | 1Q 16 |
Net financing revenue (ex. OID)(1) | | $ | 995 | | | $ | 991 | | | $ | 1,011 | | | $ | 998 | | | $ | 964 | | | $ | 4 | | | $ | 32 | |
OID amortization expense(2) | | | (16 | ) | | | (15 | ) | | | (15 | ) | | | (14 | ) | | | (13 | ) | | | (1 | ) | | | (4 | ) |
Net financing revenue (as reported) | | | 979 | | | | 976 | | | | 996 | | | | 984 | | | | 951 | | | | 3 | | | | 28 | |
Total other revenue | | | 396 | | | | 392 | | | | 388 | | | | 374 | | | | 376 | | | | 4 | | | | 20 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total net revenue | | | 1,375 | | | | 1,368 | | | | 1,384 | | | | 1,358 | | | | 1,327 | | | | 7 | | | | 48 | |
Provision for loan losses | | | 271 | | | | 267 | | | | 258 | | | | 172 | | | | 220 | | | | 4 | | | | 51 | |
Total Noninterest Expense (3) | | | 778 | | | | 721 | | | | 735 | | | | 773 | | | | 710 | | | | 57 | | | | 68 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Pre-tax income from continuing operations | | | 326 | | | | 380 | | | | 391 | | | | 413 | | | | 397 | | | | (54 | ) | | | (71 | ) |
Income tax expense | | | 113 | | | | 134 | | | | 130 | | | | 56 | | | | 150 | | | | (21 | ) | | | (37 | ) |
Income / (Loss) from discontinued operations, net of tax | | | 1 | | | | 2 | | | | (52 | ) | | | 3 | | | | 3 | | | | (1 | ) | | | (2 | ) |
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Net income | | | 214 | | | | 248 | | | | 209 | | | | 360 | | | | 250 | | | | (34 | ) | | | (36 | ) |
Preferred dividends | | | - | | | | - | | | | - | | | | 15 | | | | 15 | | | | - | | | | (15 | ) |
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Net income available to common | | $ | 214 | | | $ | 248 | | | $ | 209 | | | $ | 345 | | | $ | 235 | | | $ | (34 | ) | | $ | (21 | ) |
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Selected Balance Sheet Data (Period-End) | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total assets | | $ | 162,101 | | | $ | 163,728 | | | $ | 157,397 | | | $ | 157,931 | | | $ | 156,505 | | | $ | (1,627 | ) | | $ | 5,596 | |
Consumer loans | | | 76,600 | | | | 76,843 | | | | 75,673 | | | | 74,365 | | | | 73,688 | | | | (243 | ) | | | 2,912 | |
Commercial loans | | | 42,402 | | | | 42,101 | | | | 39,286 | | | | 38,288 | | | | 37,188 | | | | 301 | | | | 5,214 | |
Allowance for loan losses | | | (1,155 | ) | | | (1,144 | ) | | | (1,134 | ) | | | (1,089 | ) | | | (1,077 | ) | | | (11 | ) | | | (78 | ) |
Deposits | | | 84,486 | | | | 79,022 | | | | 75,744 | | | | 72,802 | | | | 70,265 | | | | 5,464 | | | | 14,221 | |
Common equity(4) | | | 13,365 | | | | 13,317 | | | | 13,630 | | | | 13,611 | | | | 13,127 | | | | 48 | | | | 238 | |
Total equity | | | 13,365 | | | | 13,317 | | | | 13,630 | | | | 13,611 | | | | 13,823 | | | | 48 | | | | (458 | ) |
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Common Share Count | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Weighted average basic(5) | | | 465,961 | | | | 472,502 | | | | 482,393 | | | | 485,370 | | | | 484,233 | | | | (6,541 | ) | | | (18,272 | ) |
Weighted average diluted(5) | | | 466,829 | | | | 474,505 | | | | 483,575 | | | | 486,074 | | | | 484,654 | | | | (7,675 | ) | | | (17,825 | ) |
Issued shares outstanding (period-end) | | | 462,193 | | | | 467,000 | | | | 475,470 | | | | 483,753 | | | | 483,475 | | | | (4,807 | ) | | | (21,282 | ) |
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Per Common Share Data | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Earnings per share (basic)(5) | | $ | 0.46 | | | $ | 0.53 | | | $ | 0.43 | | | $ | 0.71 | | | $ | 0.49 | | | $ | (0.07 | ) | | $ | (0.03 | ) |
Earnings per share (diluted)(5) | | | 0.46 | | | | 0.52 | | | | 0.43 | | | | 0.71 | | | | 0.49 | | | | (0.06 | ) | | | (0.03 | ) |
Adjusted earnings per share(6) | | | 0.48 | | | | 0.54 | | | | 0.56 | | | | 0.54 | | | | 0.52 | | | | (0.06 | ) | | | (0.04 | ) |
Book value per share | | | 28.9 | | | | 28.5 | | | | 28.7 | | | | 28.1 | | | | 28.6 | | | | 0.4 | | | | 0.3 | |
Tangible book value per share (7) | | | 28.3 | | | | 27.9 | | | | 28.0 | | | | 27.6 | | | | 27.1 | | | | 0.4 | | | | 1.2 | |
Adjusted tangible book value per share(7) | | | 26.6 | | | | 26.2 | | | | 26.3 | | | | 25.9 | | | | 25.4 | | | | 0.4 | | | | 1.2 | |
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Select Financial Ratios | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Net interest margin (as reported) | | | 2.60% | | | | 2.56% | | | | 2.69% | | | | 2.68% | | | | 2.59% | | | | | | | | | |
Net interest margin (ex. OID) (8) | | | 2.64% | | | | 2.60% | | | | 2.73% | | | | 2.72% | | | | 2.63% | | | | | | | | | |
Cost of funds (incl. OID) (8) | | | 1.94% | | | | 1.90% | | | | 1.89% | | | | 1.90% | | | | 1.88% | | | | | | | | | |
Cost of funds (ex. OID) (8) | | | 1.87% | | | | 1.84% | | | | 1.83% | | | | 1.84% | | | | 1.82% | | | | | | | | | |
Efficiency Ratio (8) | | | 56.6% | | | | 52.7% | | | | 53.1% | | | | 56.9% | | | | 53.5% | | | | | | | | | |
Adjusted efficiency ratio(8)(9) | | | 48.5% | | | | 46.4% | | | | 45.9% | | | | 43.7% | | | | 45.4% | | | | | | | | | |
Return on average assets(10) | | | 0.5% | | | | 0.6% | | | | 0.5% | | | | 0.9% | | | | 0.6% | | | | | | | | | |
Return on average total equity(10) | | | 6.4% | | | | 7.4% | | | | 6.1% | | | | 10.4% | | | | 7.3% | | | | | | | | | |
Return on average tangible common equity(8)(10) | | | 6.6% | | | | 7.5% | | | | 6.3% | | | | 10.4% | | | | 7.3% | | | | | | | | | |
Core ROTCE(8)(10)(11) | | | 8.2% | | | | 9.4% | | | | 9.8% | | | | 9.7% | | | | 9.8% | | | | | | | | | |
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Capital Ratios(12) | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Common Equity Tier 1 (CET1) capital ratio (13) | | | 9.4% | | | | 9.4% | | | | 9.5% | | | | 9.6% | | | | 9.5% | | | | | | | | | |
Tier 1 capital ratio | | | 11.1% | | | | 10.9% | | | | 11.1% | | | | 11.2% | | | | 11.6% | | | | | | | | | |
Total capital ratio | | | 12.7% | | | | 12.6% | | | | 12.8% | | | | 12.8% | | | | 13.0% | | | | | | | | | |
(1) Represents a non-GAAP financial measure. Excludes original issue discount expense (OID).
(2) OID is primarily related to bond exchange OID (excludes international operations and future issuances)
(3) Includes employee related costs, consulting and legal fees, marketing, information technology, facility, portfolio servicing and restructuring expenses
(4) Includes common stock and paid-in capital, treasury stock, accumulated deficit and accumulated other comprehensive income
(5) Includes shares related to share-based compensation that vested but were not yet issued
(6) Represents a non-GAAP financial measure. For more details refer to page 21
(7) Represents a non-GAAP financial measure. For more details refer to page 22
(8) Represents a non-GAAP financial measure.
(9) Represents a non-GAAP financial measure. For more details refer to page 24
(10) Return metrics are annualized.
(11) Return metrics are annualized. For more details refer to page 23
(12) Basel III rules became effective on January 1, 2015, subject to transition provisions primarily related to deductions and adjustments impacting CET1 capital and Tier 1 capital
(13) Common Equity Tier 1 capital ratio is a non-GAAP measurement. Refer to page 17 for additional details
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1Q 2017 Preliminary Results | | 4 |
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ALLY FINANCIAL INC. CONSOLIDATED INCOME STATEMENT | | |
($ in millions)
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| | QUARTERLY TRENDS | | CHANGE VS. |
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| | 1Q 17 | | 4Q 16 | | 3Q 16 | | 2Q 16 | | 1Q 16 | | 4Q 16 | | 1Q 16 |
Financing revenue and other interest income | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Interest and fees on finance receivables and loans | | $ | 1,368 | | | $ | 1,355 | | | $ | 1,307 | | | $ | 1,265 | | | $ | 1,235 | | | $ | 13 | | | $ | 133 | |
Interest on loans held-for-sale | | | - | | | | - | | | | - | | | | - | | | | - | | | | - | | | | - | |
Total interest and dividends on investment securities | | | 126 | | | | 109 | | | | 101 | | | | 99 | | | | 102 | | | | 17 | | | | 24 | |
Interest-bearing cash | | | 5 | | | | 4 | | | | 3 | | | | 4 | | | | 3 | | | | 1 | | | | 2 | |
Other Earning Assets | | | 8 | | | | 7 | | | | - | | | | - | | | | - | | | | 1 | | | | 8 | |
Operating leases | | | 543 | | | | 592 | | | | 649 | | | | 701 | | | | 769 | | | | (49 | ) | | | (226 | ) |
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Total financing revenue and other interest income | | | 2,050 | | | | 2,067 | | | | 2,060 | | | | 2,069 | | | | 2,109 | | | | (17 | ) | | | (59 | ) |
Interest expense | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Interest on deposits | | | 231 | | | | 222 | | | | 212 | | | | 203 | | | | 193 | | | | 9 | | | | 38 | |
Interest on short-term borrowings | | | 27 | | | | 18 | | | | 14 | | | | 12 | | | | 13 | | | | 9 | | | | 14 | |
Interest on long-term debt | | | 424 | | | | 434 | | | | 430 | | | | 436 | | | | 442 | | | | (10 | ) | | | (18 | ) |
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Total interest expense | | | 682 | | | | 674 | | | | 656 | | | | 651 | | | | 648 | | | | 8 | | | | 34 | |
Depreciation expense on operating lease assets | | | 389 | | | | 417 | | | | 408 | | | | 434 | | | | 510 | | | | (28 | ) | | | (121 | ) |
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Net financing revenue (as reported) | | $ | 979 | | | $ | 976 | | | $ | 996 | | | $ | 984 | | | $ | 951 | | | $ | 3 | | | $ | 28 | |
Other revenue | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Servicing fees | | | 16 | | | | 15 | | | | 17 | | | | 18 | | | | 13 | | | | 1 | | | | 3 | |
Insurance premiums and service revenue earned | | | 241 | | | | 241 | | | | 238 | | | | 236 | | | | 230 | | | | 0 | | | | 11 | |
Gain on mortgage and automotive loans, net | | | 14 | | | | 7 | | | | - | | | | 3 | | | | 1 | | | | 7 | | | | 13 | |
Loss on extinguishment of debt | | | (1 | ) | | | (1 | ) | | | - | | | | - | | | | (4 | ) | | | (0 | ) | | | 3 | |
Other gain on investments, net | | | 27 | | | | 39 | | | | 52 | | | | 39 | | | | 54 | | | | (12 | ) | | | (27 | ) |
Other income, net of losses | | | 99 | | | | 91 | | | | 81 | | | | 77 | | | | 82 | | | | 8 | | | | 17 | |
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Total other revenue | | | 396 | | | | 392 | | | | 388 | | | | 374 | | | | 376 | | | | 4 | | | | 20 | |
Total net revenue | | | 1,375 | | | | 1,368 | | | | 1,384 | | | | 1,358 | | | | 1,327 | | | | 7 | | | | 48 | |
Provision for loan losses | | | 271 | | | | 267 | | | | 258 | | | | 172 | | | | 220 | | | | 4 | | | | 51 | |
Noninterest expense | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Compensation and benefits expense | | | 285 | | | | 250 | | | | 248 | | | | 242 | | | | 252 | | | | 35 | | | | 33 | |
Insurance losses and loss adjustment expenses | | | 88 | | | | 55 | | | | 69 | | | | 145 | | | | 73 | | | | 33 | | | | 15 | |
Other operating expenses | | | 405 | | | | 416 | | | | 418 | | | | 386 | | | | 385 | | | | (11 | ) | | | 20 | |
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Total noninterest expense | | | 778 | | | | 721 | | | | 735 | | | | 773 | | | | 710 | | | | 57 | | | | 68 | |
Pre-tax income from continuing operations | | $ | 326 | | | $ | 380 | | | $ | 391 | | | $ | 413 | | | $ | 397 | | | $ | (54 | ) | | $ | (71 | ) |
Income tax expense from continuing operations | | | 113 | | | | 134 | | | | 130 | | | | 56 | | | | 150 | | | | (21 | ) | | | (37 | ) |
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Net income from continuing operations | | | 213 | | | | 246 | | | | 261 | | | | 357 | | | | 247 | | | | (33 | ) | | | (34 | ) |
Income / (Loss) from discontinued operations, net of tax | | | 1 | | | | 2 | | | | (52 | ) | | | 3 | | | | 3 | | | | (1 | ) | | | (2 | ) |
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Net income | | $ | 214 | | | $ | 248 | | | $ | 209 | | | $ | 360 | | | $ | 250 | | | $ | (34 | ) | | $ | (36 | ) |
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Core Pre-Tax Income Walk | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Net financing revenue (ex. OID)(1) | | $ | 995 | | | $ | 991 | | | $ | 1,011 | | | $ | 998 | | | $ | 964 | | | $ | 4 | | | $ | 32 | |
Total other revenue (ex. OID)(2) | | | 396 | | | | 392 | | | | 388 | | | | 374 | | | | 380 | | | | 4 | | | | 16 | |
Provision for loan losses | | | 271 | | | | 267 | | | | 258 | | | | 172 | | | | 220 | | | | 4 | | | | 51 | |
Total Noninterest Expense | | | 778 | | | | 721 | | | | 735 | | | | 769 | | | | 706 | | | | 57 | | | | 72 | |
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Core pre-tax income | | $ | 342 | | | $ | 395 | | | $ | 406 | | | $ | 431 | | | $ | 419 | | | $ | (53 | ) | | $ | (76 | ) |
less: Repositioning items(3) | | | - | | | | - | | | | - | | | | 4 | | | | 7 | | | | - | | | | (7 | ) |
less: OID amortization expense | | | 16 | | | | 15 | | | | 15 | | | | 14 | | | | 15 | | | | 1 | | | | 2 | |
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Pre-tax income from continuing operations | | $ | 326 | | | $ | 380 | | | $ | 391 | | | $ | 413 | | | $ | 397 | | | $ | (54 | ) | | $ | (71 | ) |
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(1) Represents a non-GAAP financial measure. Excludes OID
(2) Represents a non-GAAP financial measure. Excludes accelerated OID primarily related to the extinguishment of high-cost legacy debt of $2 million in 1Q 2016
(3) Excludes Repositioning items. Repositioning items are primarily related to the extinguishment of high-cost legacy debt and other strategic activities.
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1Q 2017 Preliminary Results | | 5 |
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ALLY FINANCIAL INC. CONSOLIDATED PERIOD-END BALANCE SHEET | | |
($ in millions)
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| | QUARTERLY TRENDS | | CHANGE VS. |
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| | 3/31/2017 | | 12/31/2016 | | 9/30/2016 | | 6/30/2016 | | 3/31/2016 | | 12/31/2016 | | 3/31/2016 |
Assets | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Cash and cash equivalents | | | | | | | | | | | | | | | | | | | | | | | | |
Noninterest-bearing | | $ | 1,513 | | | $ | 1,547 | | | $ | 1,779 | | | $ | 1,790 | | | $ | 1,906 | | | $ | (34 | ) | | $ | (393 | ) |
Interest-bearing | | | 2,789 | | | | 4,387 | | | | 2,510 | | | | 3,941 | | | | 3,095 | | | | (1,598 | ) | | | (306 | ) |
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Total cash and cash equivalents | | | 4,302 | | | | 5,934 | | | | 4,289 | | | | 5,731 | | | | 5,001 | | | | (1,632 | ) | | | (699 | ) |
Investment securities(1) | | | 21,412 | | | | 19,765 | | | | 18,350 | | | | 18,768 | | | | 18,298 | | | | 1,647 | | | | 3,114 | |
Loans held-for-sale, net | | | 1 | | | | - | | | | 56 | | | | 15 | | | | 39 | | | | 1 | | | | (38 | ) |
Finance receivables and loans, net | | | | | | | | | | | | | | | | | | | | | | | | |
Finance receivables and loans, net | | | 119,002 | | | | 118,944 | | | | 114,959 | | | | 112,653 | | | | 110,876 | | | | 58 | | | | 8,126 | |
Allowance for loan losses | | | (1,155 | ) | | | (1,144 | ) | | | (1,134 | ) | | | (1,089 | ) | | | (1,077 | ) | | | (11 | ) | | | (78 | ) |
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Total finance receivables and loans, net | | | 117,847 | | | | 117,800 | | | | 113,825 | | | | 111,564 | | | | 109,799 | | | | 47 | | | | 8,048 | |
Investment in operating leases, net | | | 10,461 | | | | 11,470 | | | | 12,689 | | | | 13,755 | | | | 14,958 | | | | (1,009 | ) | | | (4,497 | ) |
Premiums receivables and other insurance assets | | | 1,944 | | | | 1,905 | | | | 1,881 | | | | 1,844 | | | | 1,828 | | | | 39 | | | | 116 | |
Other assets | | | 6,134 | | | | 6,854 | | | | 6,307 | | | | 6,254 | | | | 6,582 | | | | (720 | ) | | | (448 | ) |
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Total assets | | $ | 162,101 | | | $ | 163,728 | | | $ | 157,397 | | | $ | 157,931 | | | $ | 156,505 | | | $ | (1,627 | ) | | $ | 5,596 | |
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Liabilities | | | | | | | | | | | | | | | | | | | | | | | | |
Deposit liabilities | | | | | | | | | | | | | | | | | | | | | | | | |
Noninterest-bearing | | $ | 102 | | | $ | 84 | | | $ | 101 | | | $ | 94 | | | $ | 92 | | | $ | 18 | | | $ | 10 | |
Interest-bearing | | | 84,384 | | | | 78,938 | | | | 75,643 | | | | 72,708 | | | | 70,173 | | | | 5,446 | | | | 14,211 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total deposit liabilities | | | 84,486 | | | | 79,022 | | | | 75,744 | | | | 72,802 | | | | 70,265 | | | | 5,464 | | | | 14,221 | |
Short-term borrowings | | | 8,371 | | | | 12,673 | | | | 6,434 | | | | 5,994 | | | | 5,365 | | | | (4,302 | ) | | | 3,006 | |
Long-term debt | | | 51,061 | | | | 54,128 | | | | 56,836 | | | | 61,040 | | | | 62,044 | | | | (3,067 | ) | | | (10,983 | ) |
Interest payable | | | 382 | | | | 351 | | | | 462 | | | | 427 | | | | 374 | | | | 31 | | | | 8 | |
Unearned insurance premiums and service revenue | | | 2,514 | | | | 2,500 | | | | 2,493 | | | | 2,465 | | | | 2,449 | | | | 14 | | | | 65 | |
Accrued expense and other liabilities | | | 1,922 | | | | 1,737 | | | | 1,798 | | | | 1,592 | | | | 2,185 | | | | 185 | | | | (263 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total liabilities | | $ | 148,736 | | | $ | 150,411 | | | $ | 143,767 | | | $ | 144,320 | | | $ | 142,682 | | | $ | (1,675 | ) | | $ | 6,054 | |
| | | | | | |
Equity | | | | | | | | | | | | | | | | | | | | | | | | |
Common stock and paid-in capital(2) | | $ | 20,661 | | | $ | 20,809 | | | $ | 20,960 | | | $ | 21,106 | | | $ | 21,087 | | | $ | (148 | ) | | $ | (426 | ) |
Preferred stock | | | - | | | | - | | | | - | | | | - | | | | 696 | | | | - | | | | (696 | ) |
Accumulated deficit | | | (6,975 | ) | | | (7,151 | ) | | | (7,361 | ) | | | (7,530 | ) | | | (7,875 | ) | | | 176 | | | | 900 | |
Accumulated other comprehensive (loss) income | | | (321 | ) | | | (341 | ) | | | 31 | | | | 35 | | | | (85 | ) | | | 20 | | | | (236 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total equity | | | 13,365 | | | | 13,317 | | | | 13,630 | | | | 13,611 | | | | 13,823 | | | | 48 | | | | (458 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total liabilities and equity | | $ | 162,101 | | | $ | 163,728 | | | $ | 157,397 | | | $ | 157,931 | | | $ | 156,505 | | | $ | (1,627 | ) | | $ | 5,596 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
(1) Includes held-to-maturity securities
(2) Includes Treasury stock
| | |
1Q 2017 Preliminary Results | | 6 |
| | |
ALLY FINANCIAL INC. CONSOLIDATED AVERAGE BALANCE SHEET(1) | | |
($ in millions)
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | QUARTERLY TRENDS | | CHANGE VS. |
| | | | | | | |
| | 1Q 17 | | 4Q 16 | | 3Q 16 | | 2Q 16 | | 1Q 16 | | 4Q 16 | | 1Q 16 |
Assets | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Interest-bearing cash and cash equivalents | | $ | 2,674 | | | $ | 2,556 | | | $ | 2,530 | | | $ | 2,708 | | | $ | 2,867 | | | $ | 118 | | | $ | (193 | ) |
Federal funds sold and securities purchased under resale agreements | | | - | | | | - | | | | - | | | | 2 | | | | - | | | | - | | | | - | |
Investment securities | | | 21,298 | | | | 20,143 | | | | 18,139 | | | | 18,190 | | | | 17,594 | | | | 1,155 | | | | 3,704 | |
Loans held-for-sale, net | | | - | | | | - | | | | 1 | | | | - | | | | 35 | | | | - | | | | (35 | ) |
Total finance receivables and loans, net(2) | | | 117,974 | | | | 116,769 | | | | 113,294 | | | | 112,158 | | | | 111,525 | | | | 1,205 | | | | 6,449 | |
Investment in operating leases, net | | | 10,931 | | | | 12,099 | | | | 13,232 | | | | 14,392 | | | | 15,638 | | | | (1,168 | ) | | | (4,707 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total interest earning assets | | | 152,877 | | | | 151,567 | | | | 147,196 | | | | 147,450 | | | | 147,659 | | | | 1,310 | | | | 5,218 | |
Noninterest-bearing cash and cash equivalents | | | 1,100 | | | | 1,124 | | | | 1,369 | | | | 1,339 | | | | 1,841 | | | | (24 | ) | | | (741 | ) |
Other assets | | | 8,013 | | | | 8,039 | | | | 8,764 | | | | 8,755 | | | | 8,929 | | | | (26 | ) | | | (916 | ) |
Allowance for loan losses | | | (1,145 | ) | | | (1,139 | ) | | | (1,103 | ) | | | (1,088 | ) | | | (1,060 | ) | | | (6 | ) | | | (85 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total assets | | $ | 160,845 | | | $ | 159,591 | | | $ | 156,226 | | | $ | 156,456 | | | $ | 157,369 | | | $ | 1,254 | | | $ | 3,476 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | |
Liabilities | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Interest-bearing deposit liabilities | | $ | 82,160 | | | $ | 76,950 | | | $ | 74,166 | | | $ | 71,479 | | | $ | 68,148 | | | $ | 5,210 | | | $ | 14,012 | |
Short-term borrowings | | | 8,223 | | | | 8,353 | | | | 5,194 | | | | 5,535 | | | | 5,609 | | | | (130 | ) | | | 2,614 | |
Long-term debt(3) | | | 52,549 | | | | 55,916 | | | | 58,425 | | | | 60,758 | | | | 64,841 | | | | (3,367 | ) | | | (12,292 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total interest-bearing liabilities(3) | | | 142,932 | | | | 141,219 | | | | 137,785 | | | | 137,772 | | | | 138,598 | | | | 1,713 | | | | 4,334 | |
Noninterest-bearing deposit liabilities | | | 93 | | | | 96 | | | | 97 | | | | 91 | | | | 92 | | | | (3 | ) | | | 1 | |
Other liabilities | | | 4,383 | | | | 4,442 | | | | 4,674 | | | | 4,948 | | | | 5,053 | | | | (59 | ) | | | (670 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total liabilities | | $ | 147,408 | | | $ | 145,757 | | | $ | 142,556 | | | $ | 142,811 | | | $ | 143,743 | | | $ | 1,651 | | | $ | 3,665 | |
| | | | | | | |
Equity | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total equity | | $ | 13,437 | | | $ | 13,834 | | | $ | 13,670 | | | $ | 13,645 | | | $ | 13,626 | | | $ | (397 | ) | | $ | (189 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total liabilities and equity | | $ | 160,845 | | | $ | 159,591 | | | $ | 156,226 | | | $ | 156,456 | | | $ | 157,369 | | | $ | 1,254 | | | $ | 3,476 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
(1) Average balances are calculated using a combination of monthly and daily average methodologies. Periods prior to 4Q 16 may not tie to previous Financial Supplement disclosures due to the current methodology which includes equity investment
security balances within investment securities, previously included within other assets
(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) QTD: includes OID average of $1,240 million in 1Q17, $1,256 million in 4Q16, $1,272 million in 3Q16, $1,286 million in 2Q16 and $1,298 million in 1Q16
| | |
1Q 2017 Preliminary Results | | 7 |
| | |
ALLY FINANCIAL INC. SEGMENT HIGHLIGHTS | | |
($ in millions)
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | QUARTERLY TRENDS | | CHANGE VS. |
| | | | | | | |
| | 1Q 17 | | 4Q 16 | | 3Q 16 | | 2Q 16 | | 1Q 16 | | 4Q 16 | | 1Q 16 |
Automotive Finance | | $ | 288 | | | $ | 298 | | | $ | 319 | | | $ | 426 | | | $ | 337 | | | $ | (10 | ) | | $ | (49 | ) |
Insurance | | | 40 | | | | 69 | | | | 56 | | | | (18 | ) | | | 50 | | | | (29 | ) | | | (10 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Dealer Financial Services | | | 328 | | | | 367 | | | | 375 | | | | 408 | | | | 387 | | | | (39 | ) | | | (59 | ) |
Mortgage Finance | | | 9 | | | | 15 | | | | 8 | | | | 9 | | | | 2 | | | | (6 | ) | | | 7 | |
Corporate Finance | | | 25 | | | | 31 | | | | 15 | | | | 14 | | | | 11 | | | | (6 | ) | | | 14 | |
Corporate and Other(1) | | | (36 | ) | | | (33 | ) | | | (7 | ) | | | (18 | ) | | | (3 | ) | | | (3 | ) | | | (33 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Pre-tax income from continuing operations | | $ | 326 | | | $ | 380 | | | $ | 391 | | | $ | 413 | | | $ | 397 | | | $ | (54 | ) | | $ | (71 | ) |
OID amortization expense(2) | | | 16 | | | | 15 | | | | 15 | | | | 14 | | | | 15 | | | | 1 | | | | 2 | |
Repositioning items(2)(3) | | | - | | | | - | | | | - | | | | 4 | | | | 7 | | | | - | | | | (7 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Core pre-tax income(4) | | $ | 342 | | | $ | 395 | | | $ | 406 | | | $ | 431 | | | $ | 419 | | | $ | (53 | ) | | $ | (76 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
(1) Corporate and Other primarily consists of activity related to centralized corporate treasury activities such as management of the cash and corporate investment securities and loan portfolios, short- and long-term debt, retail and brokered deposit liabilities, derivative instruments, the amortization of the discount associated with new debt issuances and bond exchanges, and the residual impacts of our corporate FTP and treasury ALM activities. Corporate and Other also includes certain equity investments, the management of our legacy mortgage portfolio, and reclassifications and eliminations between the reportable operating segments. Subsequent to June 1, 2016, TradeKing activity included within the Corporate & Other segment.
(2) OID amortization expense and repositioning items for all periods shown is applied to the pre-tax income of the Corporate and Other segment. Includes accelerated OID expense of $2 million in 1Q 2016.
(3) Repositioning items are primarily related to the extinguishment of high-cost legacy debt and strategic activities
(4) Core pre-tax income is a non-GAAP financial measure that adjusts pre-tax income from continuing operations by excluding (1) original issue discount (OID) amortization expense and (2) repositioning items primarily related to the extinguishment of high-cost legacy debt and strategic activities. Management believes core pre-tax income can help the reader better understand the operating performance of the core businesses and their ability to generate
earnings.
| | |
1Q 2017 Preliminary Results | | 8 |
| | |
ALLY FINANCIAL INC. AUTOMOTIVE FINANCE - CONDENSED FINANCIAL STATEMENTS | | |
($ in millions)
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | QUARTERLY TRENDS | | CHANGE VS. |
| | | | | | | |
Income Statement | | 1Q 17 | | 4Q 16 | | 3Q 16 | | 2Q 16 | | 1Q 16 | | 4Q 16 | | 1Q 16 |
Net financing revenue | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Consumer | | $ | 924 | | | $ | 933 | | | $ | 911 | | | $ | 877 | | | $ | 866 | | | $ | (9 | ) | | $ | 58 | |
Commercial | | | 304 | | | | 287 | | | | 267 | | | | 262 | | | | 252 | | | | 17 | | | | 52 | |
Loans held-for-sale | | | - | | | | - | | | | - | | | | - | | | | - | | | | - | | | | - | |
Operating leases | | | 543 | | | | 592 | | | | 649 | | | | 701 | | | | 769 | | | | (49 | ) | | | (226 | ) |
Other interest income | | | 2 | | | | 3 | | | | 3 | | | | 2 | | | | 3 | | | | (1 | ) | | | (1 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total financing revenue and other interest income | | | 1,773 | | | | 1,815 | | | | 1,830 | | | | 1,842 | | | | 1,890 | | | | (42 | ) | | | (117 | ) |
Interest expense | | | 492 | | | | 491 | | | | 489 | | | | 479 | | | | 484 | | | | 1 | | | | 8 | |
Depreciation expense on operating lease assets: | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Depreciation expense on operating lease assets (ex. remarketing) | | | 385 | | | | 427 | | | | 470 | | | | 520 | | | | 565 | | | | (42 | ) | | | (180 | ) |
Remarketing losses (gains) | | | 3 | | | | (10 | ) | | | (62 | ) | | | (86 | ) | | | (55 | ) | | | 13 | | | | 58 | |
Total depreciation expense on operating lease assets | | | 389 | | | | 417 | | | | 408 | | | | 434 | | | | 510 | | | | (28 | ) | | | (121 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Net financing revenue | | | 892 | | | | 907 | | | | 933 | | | | 929 | | | | 896 | | | | (15 | ) | | | (4 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Other revenue | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Servicing fees | | | 16 | | | | 15 | | | | 17 | | | | 18 | | | | 13 | | | | 1 | | | | 3 | |
Gain/(loss) on automotive loans, net | | | 24 | | | | 7 | | | | - | | | | 5 | | | | 5 | | | | 17 | | | | 19 | |
Other income | | | 61 | | | | 56 | | | | 58 | | | | 53 | | | | 59 | | | | 5 | | | | 2 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total other revenue | | | 101 | | | | 78 | | | | 74 | | | | 77 | | | | 77 | | | | 23 | | | | 24 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total net revenue | | | 993 | | | | 985 | | | | 1,007 | | | | 1,006 | | | | 973 | | | | 8 | | | | 20 | |
Provision for loan losses | | | 268 | | | | 275 | | | | 270 | | | | 170 | | | | 209 | | | | (7 | ) | | | 59 | |
Noninterest expense | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Compensation and benefits | | | 129 | | | | 118 | | | | 119 | | | | 118 | | | | 126 | | | | 11 | | | | 3 | |
Other operating expenses | | | 308 | | | | 294 | | | | 299 | | | | 292 | | | | 301 | | | | 14 | | | | 7 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total noninterest expense | | | 437 | | | | 412 | | | | 418 | | | | 410 | | | | 427 | | | | 25 | | | | 10 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Income before income tax expense | | $ | 288 | | | $ | 298 | | | $ | 319 | | | $ | 426 | | | $ | 337 | | | $ | (10 | ) | | $ | (49 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | |
Memo: Net lease revenue | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Operating lease revenue | | $ | 543 | | | $ | 592 | | | $ | 649 | | | $ | 701 | | | $ | 769 | | | $ | (49 | ) | | $ | (226 | ) |
Depreciation expense on operating lease assets (ex. remarketing) | | | 385 | | | | 427 | | | | 470 | | | | 520 | | | | 565 | | | | (42 | ) | | | (180 | ) |
Remarketing losses (gains) | | | 3 | | | | (10 | ) | | | (62 | ) | | | (86 | ) | | | (55 | ) | | | 13 | | | | 59 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total depreciation expense on operating lease assets | | | 389 | | | | 417 | | | | 408 | | | | 434 | | | | 510 | | | | (28 | ) | | | (121 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Net lease revenue | | $ | 154 | | | $ | 175 | | | $ | 241 | | | $ | 267 | | | $ | 259 | | | $ | (21 | ) | | $ | (105 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | |
Balance Sheet (Period-End) | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Cash, trading and investment securities | | $ | 30 | | | $ | 30 | | | $ | 30 | | | $ | 30 | | | $ | 31 | | | $ | - | | | $ | (1 | ) |
Finance receivables and loans, net: | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Consumer loans | | | 65,629 | | | | 65,750 | | | | 64,750 | | | | 63,193 | | | | 62,926 | | | | (121 | ) | | | 2,703 | |
Commercial loans(1) | | | 38,903 | | | | 38,853 | | | | 36,043 | | | | 35,258 | | | | 34,348 | | | | 50 | | | | 4,555 | |
Allowance for loan losses | | | (999 | ) | | | (989 | ) | | | (969 | ) | | | (919 | ) | | | (905 | ) | | | (10 | ) | | | (94 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total finance receivables and loans, net | | | 103,533 | | | | 103,614 | | | | 99,824 | | | | 97,532 | | | | 96,369 | | | | (81 | ) | | | 7,164 | |
Investment in operating leases, net | | | 10,461 | | | | 11,470 | | | | 12,689 | | | | 13,755 | | | | 14,958 | | | | (1,009 | ) | | | (4,497 | ) |
Other assets | | | 1,130 | | | | 1,233 | | | | 1,126 | | | | 1,039 | | | | 931 | | | | (103 | ) | | | 199 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total assets | | $ | 115,154 | | | $ | 116,347 | | | $ | 113,669 | | | $ | 112,356 | | | $ | 112,289 | | | $ | (1,193 | ) | | $ | 2,865 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
(1) Includes intercompany
| | |
1Q 2017 Preliminary Results | | 9 |
| | |
ALLY FINANCIAL INC. AUTOMOTIVE FINANCE - KEY STATISTICS | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | QUARTERLY TRENDS | | CHANGE VS. |
| | | | | | | |
| | 1Q 17 | | 4Q 16 | | 3Q 16 | | 2Q 16 | | 1Q 16 | | 4Q 16 | | 1Q 16 |
U.S. Consumer Originations(1)($ in billions) | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Retail standard - new vehicle GM | | $ | 1.5 | | | $ | 1.9 | | | $ | 2.0 | | | $ | 1.9 | | | $ | 1.9 | | | $ | (0.4 | ) | | $ | (0.4 | ) |
Retail standard - new vehicle Chrysler | | | 1.0 | | | | 1.1 | | | | 1.2 | | | | 1.2 | | | | 1.0 | | | | (0.0 | ) | | | 0.0 | |
Retail standard - new vehicle Growth | | | 1.2 | | | | 1.2 | | | | 1.3 | | | | 1.3 | | | | 1.2 | | | | 0.1 | | | | 0.0 | |
Used vehicle | | | 4.2 | | | | 3.4 | | | | 3.8 | | | | 4.0 | | | | 4.1 | | | | 0.8 | | | | 0.1 | |
Lease | | | 0.9 | | | | 0.7 | | | | 1.0 | | | | 0.9 | | | | 0.8 | | | | 0.2 | | | | 0.1 | |
Retail subvented | | | 0.0 | | | | 0.0 | | | | 0.1 | | | | 0.1 | | | | 0.1 | | | | (0.0 | ) | | | (0.0 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total originations | | $ | 8.9 | | | $ | 8.2 | | | $ | 9.3 | | | $ | 9.4 | | | $ | 9.0 | | | $ | 0.6 | | | $ | (0.2 | ) |
| | | | | | | |
U.S. Consumer Originations - FICO Score | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Super Prime (CB 740+) | | $ | 2.2 | | | $ | 2.2 | | | $ | 2.3 | | | $ | 2.1 | | | $ | 2.0 | | | $ | 0.0 | | | $ | 0.2 | |
Prime (CB 739-660) | | | 3.1 | | | | 2.9 | | | | 3.4 | | | | 3.5 | | | | 3.2 | | | | 0.2 | | | | (0.1 | ) |
Prime/Near (CB 659-620) | | | 2.1 | | | | 1.9 | | | | 2.2 | | | | 2.3 | | | | 2.2 | | | | 0.2 | | | | (0.1 | ) |
Non Prime (CB 619-540) | | | 0.8 | | | | 0.7 | | | | 0.9 | | | | 0.9 | | | | 1.0 | | | | 0.2 | | | | (0.1 | ) |
Sub Prime (CB 539-0) | | | 0.1 | | | | 0.1 | | | | 0.1 | | | | 0.1 | | | | 0.1 | | | | 0.0 | | | | (0.0 | ) |
Unscored(2) | | | 0.5 | | | | 0.5 | | | | 0.5 | | | | 0.5 | | | | 0.5 | | | | (0.0 | ) | | | 0.0 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total originations | | $ | 8.9 | | | $ | 8.2 | | | $ | 9.3 | | | $ | 9.4 | | | $ | 9.0 | | | $ | 0.6 | | | $ | (0.2 | ) |
| | | | | | | |
U.S. Market | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Light vehicle sales(SAAR - units in millions) | | | 17.2 | | | | 18.0 | | | | 17.5 | | | | 17.1 | | | | 17.3 | | | | (0.8 | ) | | | (0.1 | ) |
Light vehicle sales(quarterly - units in millions) | | | 4.0 | | | | 4.4 | | | | 4.5 | | | | 4.5 | | | | 4.1 | | | | (0.4 | ) | | | (0.1 | ) |
GM market share | | | 17.2% | | | | 18.8% | | | | 17.4% | | | | 16.7% | | | | 16.8% | | | | | | | | | |
Chrysler market share | | | 12.7% | | | | 12.0% | | | | 12.8% | | | | 13.3% | | | | 13.5% | | | | | | | | | |
| | | | | | | |
U.S. Consumer Penetration | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
GM | | | 7.4% | | | | 8.5% | | | | 8.8% | | | | 9.1% | | | | 9.3% | | | | | | | | | |
Chrysler | | | 13.4% | | | | 14.0% | | | | 14.8% | | | | 13.8% | | | | 12.5% | | | | | | | | | |
| | | | | | | |
U.S. Commercial Outstandings EOP($ in billions) | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Floorplan outstandings, net | | $ | 33.2 | | | $ | 33.3 | | | $ | 30.7 | | | $ | 30.0 | | | $ | 29.2 | | | $ | (0.2 | ) | | $ | 3.9 | |
Dealer loans and other | | | 5.8 | | | | 5.5 | | | | 5.4 | | | | 5.2 | | | | 5.1 | | | | 0.2 | | | | 0.6 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total Commercial outstandings | | $ | 38.9 | | | $ | 38.9 | | | $ | 36.0 | | | $ | 35.3 | | | $ | 34.3 | | | $ | 0.1 | | | $ | 4.6 | |
| | | | | | | |
U.S. Off-Lease Remarketing | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Off-lease vehicles terminated - On-balance sheet(# in units) | | | 77,761 | | | | 71,737 | | | | 80,999 | | | | 76,001 | | | | 78,820 | | | | 6,024 | | | | (1,059 | ) |
Average (loss) / gain per vehicle | | $ | (45 | ) | | $ | 135 | | | $ | 767 | | | $ | 1,126 | | | $ | 700 | | | $ | (180 | ) | | $ | (745 | ) |
Total (loss) / gains($ in millions) | | $ | (3 | ) | | $ | 10 | | | $ | 62 | | | $ | 86 | | | $ | 55 | | | $ | (13 | ) | | $ | (59 | ) |
(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) Unscored are primarily Commercial Services Group (“CSG”)
| | |
1Q 2017 Preliminary Results | | 10 |
| | |
ALLY FINANCIAL INC. INSURANCE - CONDENSED FINANCIAL STATEMENTS AND KEY STATISTICS | | |
($ in millions)
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | QUARTERLY TRENDS | | CHANGE VS. |
| | | | | | | |
Income Statement(GAAP View) | | 1Q 17 | | 4Q 16 | | 3Q 16 | | 2Q 16 | | 1Q 16 | | 4Q 16 | | 1Q 16 |
Net financing revenue | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Interest and dividends on investment securities | | $ | 25 | | | $ | 26 | | | $ | 24 | | | $ | 25 | | | $ | 24 | | | $ | (1 | ) | | $ | 1 | |
Interest bearing cash | | | 1 | | | | 2 | | | | 2 | | | | 3 | | | | 2 | | | | (1 | ) | | | (1 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total financing revenue and other interest revenue | | | 26 | | | | 28 | | | | 26 | | | | 28 | | | | 26 | | | | (2 | ) | | | - | |
Interest expense | | | 11 | | | | 11 | | | | 12 | | | | 12 | | | | 12 | | | | - | | | | (1 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Net financing revenue | | | 15 | | | | 17 | | | | 14 | | | | 16 | | | | 14 | | | | (2 | ) | | | 1 | |
Other revenue | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Insurance premiums and service revenue earned | | | 241 | | | | 241 | | | | 238 | | | | 236 | | | | 230 | | | | - | | | | 11 | |
Other gain/(loss) on investments, net | | | 21 | | | | 17 | | | | 24 | | | | 21 | | | | 22 | | | | 4 | | | | (1 | ) |
Other income, net of losses | | | 2 | | | | 1 | | | | 2 | | | | 2 | | | | 2 | | | | 1 | | | | - | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total other revenue | | | 264 | | | | 259 | | | | 264 | | | | 259 | | | | 254 | | | | 5 | | | | 10 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total net revenue | | | 279 | | | | 276 | | | | 278 | | | | 275 | | | | 268 | | | | 3 | | | | 11 | |
Noninterest expense | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Compensation and benefits expense | | | 19 | | | | 17 | | | | 16 | | | | 17 | | | | 18 | | | | 2 | | | | 1 | |
Insurance losses and loss adjustment expenses | | | 88 | | | | 55 | | | | 69 | | | | 145 | | | | 73 | | | | 33 | | | | 15 | |
Other operating expenses | | | 132 | | | | 135 | | | | 137 | | | | 131 | | | | 127 | | | | (3 | ) | | | 5 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total noninterest expense | | | 239 | | | | 207 | | | | 222 | | | | 293 | | | | 218 | | | | 32 | | | | 21 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Income (loss) from cont. ops before income tax expense | | $ | 40 | | | $ | 69 | | | $ | 56 | | | $ | (18 | ) | | $ | 50 | | | $ | (29 | ) | | $ | (10 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | |
Memo: Income Statement(Managerial View) | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Insurance premiums and other income | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Insurance premiums and service revenue earned | | $ | 241 | | | $ | 241 | | | $ | 238 | | | $ | 236 | | | $ | 230 | | | $ | 0 | | | $ | 11 | |
Investment income | | | 35 | | | | 32 | | | | 36 | | | | 34 | | | | 34 | | | | 3 | | | | 1 | |
Other income | | | 3 | | | | 3 | | | | 4 | | | | 5 | | | | 4 | | | | (0 | ) | | | (1 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total insurance premiums and other income | | | 279 | | | | 276 | | | | 278 | | | | 275 | | | | 268 | | | | 3 | | | | 11 | |
Expense | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Insurance losses and loss adjustment expenses | | | 88 | | | | 55 | | | | 69 | | | | 145 | | | | 73 | | | | 33 | | | | 15 | |
Acquisition and underwriting expenses | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Compensation and benefit expense | | | 19 | | | | 17 | | | | 16 | | | | 17 | | | | 18 | | | | 2 | | | | 1 | |
Insurance commission expense | | | 99 | | | | 98 | | | | 99 | | | | 97 | | | | 94 | | | | 1 | | | | 5 | |
Other expense | | | 33 | | | | 37 | | | | 38 | | | | 34 | | | | 33 | | | | (4 | ) | | | (0 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total acquisition and underwriting expense | | | 151 | | | | 152 | | | | 153 | | | | 148 | | | | 145 | | | | (1 | ) | | | 6 | |
Total expense | | | 239 | | | | 207 | | | | 222 | | | | 293 | | | | 218 | | | | 32 | | | | 21 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Income (loss) from cont. ops before income tax expense | | $ | 40 | | | $ | 69 | | | $ | 56 | | | $ | (18 | ) | | $ | 50 | | | $ | (29 | ) | | $ | (10 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | |
Balance Sheet (Period-End) | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Cash, trading and investment securities | | $ | 5,048 | | | $ | 5,033 | | | $ | 5,155 | | | $ | 5,140 | | | $ | 5,141 | | | $ | 15 | | | $ | (93 | ) |
Premiums receivable and other insurance assets | | | 1,959 | | | | 1,920 | | | | 1,894 | | | | 1,856 | | | | 1,840 | | | | 39 | | | | 119 | |
Other assets | | | 223 | | | | 219 | | | | 210 | | | | 197 | | | | 213 | | | | 4 | | | | 10 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total assets | | $ | 7,230 | | | $ | 7,172 | | | $ | 7,259 | | | $ | 7,193 | | | $ | 7,194 | | | $ | 58 | | | $ | 36 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | |
Key Statistics (Continuing Operations) | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total written premiums and revenue | | $ | 240 | | | $ | 237 | | | $ | 252 | | | $ | 237 | | | $ | 222 | | | $ | 3 | | | $ | 18 | |
| | | | | | | |
Loss ratio | | | 35.9% | | | | 22.6% | | | | 28.8% | | | | 60.9% | | | | 31.5% | | | | | | | | | |
Underwriting expense ratio | | | 62.2% | | | | 62.7% | | | | 63.8% | | | | 61.9% | | | | 62.5% | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Combined ratio | | | 98.1% | | | | 85.3% | | | | 92.5% | | | | 122.8% | | | | 94.0% | | | | | | | | | |
| | |
1Q 2017 Preliminary Results | | 11 |
| | |
ALLY FINANCIAL INC. MORTGAGE FINANCE - CONDENSED FINANCIAL STATEMENTS | | |
($ in millions)
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | |
| | QUARTERLY TRENDS | | CHANGE VS. |
| | | | | | | |
Income Statement | | 1Q 17 | | 4Q 16 | | 3Q 16 | | 2Q 16 | | 1Q 16 | | 4Q 16 | | 1Q 16 |
Net financing revenue | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total financing revenue and other interest income | | $ | 71 | | | $ | 65 | | | $ | 64 | | | $ | 64 | | | $ | 57 | | | $ | 6 | | | $ | 14 | |
Interest expense | | | 37 | | | | 39 | | | | 39 | | | | 38 | | | | 37 | | | | (2 | ) | | | - | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Net financing revenue | | | 34 | | | | 26 | | | | 25 | | | | 26 | | | | 20 | | | | 8 | | | | 14 | |
Total net revenue | | | 34 | | | | 26 | | | | 25 | | | | 26 | | | | 20 | | | | 8 | | | | 14 | |
Provision for loan losses | | | 1 | | | | (8 | ) | | | 1 | | | | - | | | | 3 | | | | 9 | | | | (2 | ) |
Noninterest expense | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Compensation and benefits expense | | | 5 | | | | 3 | | | | 4 | | | | 3 | | | | 3 | | | | 2 | | | | 2 | |
Other operating expense | | | 19 | | | | 16 | | | | 12 | | | | 14 | | | | 12 | | | | 3 | | | | 7 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total noninterest expense | | | 24 | | | | 19 | | | | 16 | | | | 17 | | | | 15 | | | | 5 | | | | 9 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Income from cont. ops before income tax expense | | $ | 9 | | | $ | 15 | | | $ | 8 | | | $ | 9 | | | $ | 2 | | | $ | (6 | ) | | $ | 7 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | |
Balance Sheet (Period-End) | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Finance receivables and loans, net: | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Consumer loans | | $ | 8,331 | | | $ | 8,294 | | | $ | 7,931 | | | $ | 8,009 | | | $ | 7,443 | | | $ | 37 | | | $ | 888 | |
Allowance for loan losses | | | (11 | ) | | | (11 | ) | | | (19 | ) | | | (18 | ) | | | (18 | ) | | | - | | | | 7 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total finance receivables and loans, net | | | 8,320 | | | | 8,283 | | | | 7,912 | | | | 7,991 | | | | 7,425 | | | | 37 | | | | 895 | |
Other assets | | | 42 | | | | 24 | | | | 21 | | | | 23 | | | | 68 | | | | 18 | | | | (26 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total assets | | $ | 8,362 | | | $ | 8,307 | | | $ | 7,933 | | | $ | 8,014 | | | $ | 7,493 | | | $ | 55 | | | $ | 869 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | |
1Q 2017 Preliminary Results | | 12 |
| | |
ALLY FINANCIAL INC. CORPORATE FINANCE - CONDENSED FINANCIAL STATEMENTS | | |
($ in millions)
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | QUARTERLY TRENDS | | CHANGE VS. |
| | | | | | | |
Income Statement | | 1Q 17 | | 4Q 16 | | 3Q 16 | | 2Q 16 | | 1Q 16 | | 4Q 16 | | 1Q 16 |
Net financing revenue | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total financing revenue and other interest income | | $ | 54 | | | $ | 54 | | | $ | 48 | | | $ | 46 | | | $ | 44 | | | $ | - | | | $ | 10 | |
Interest expense | | | 20 | | | | 20 | | | | 18 | | | | 17 | | | | 16 | | | | - | | | | 4 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Net financing revenue | | | 34 | | | | 34 | | | | 30 | | | | 29 | | | | 28 | | | | - | | | | 6 | |
Other income, net of losses | | | 18 | | | | 12 | | | | 4 | | | | 4 | | | | 6 | | | | 6 | | | | 12 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total net revenue | | | 52 | | | | 46 | | | | 34 | | | | 33 | | | | 34 | | | | 6 | | | | 18 | |
Provision for loan losses | | | 6 | | | | (2 | ) | | | 3 | | | | 3 | | | | 6 | | | | 8 | | | | - | |
Noninterest expense | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Compensation and benefits expense | | | 14 | | | | 9 | | | | 9 | | | | 10 | | | | 10 | | | | 5 | | | | 4 | |
Other operating expense | | | 7 | | | | 8 | | | | 7 | | | | 6 | | | | 7 | | | | (1 | ) | | | - | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total noninterest expense | | | 21 | | | | 17 | | | | 16 | | | | 16 | | | | 17 | | | | 4 | | | | 4 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Income from cont. ops before income tax expense | | $ | 25 | | | $ | 31 | | | $ | 15 | | | $ | 14 | | | $ | 11 | | | $ | (6 | ) | | $ | 14 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | |
Balance Sheet (Period-End) | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Loans held for sale | | $ | - | | | $ | - | | | $ | 56 | | | $ | 15 | | | $ | 39 | | | $ | - | | | $ | (39 | ) |
Commercial loans(1) | | | 3,432 | | | | 3,180 | | | | 3,182 | | | | 2,975 | | | | 2,795 | | | | 252 | | | | 637 | |
Allowance for loan losses | | | (68 | ) | | | (62 | ) | | | (62 | ) | | | (59 | ) | | | (56 | ) | | | (6 | ) | | | (12 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total finance receivables and loans, net | | | 3,364 | | | | 3,118 | | | | 3,120 | | | | 2,916 | | | | 2,739 | | | | 246 | | | | 625 | |
Other assets | | | 74 | | | | 65 | | | | 56 | | | | 58 | | | | 61 | | | | 9 | | | | 13 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total assets | | $ | 3,438 | | | $ | 3,183 | | | $ | 3,232 | | | $ | 2,989 | | | $ | 2,839 | | | $ | 255 | | | $ | 599 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
(1) Includes intercompany loan activity
| | |
1Q 2017 Preliminary Results | | 13 |
| | |
ALLY FINANCIAL INC. CORPORATE AND OTHER - CONDENSED FINANCIAL STATEMENTS | | |
($ in millions)
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | QUARTERLY TRENDS | | CHANGE VS. |
| | | | | | | |
Income Statement | | 1Q 17 | | 4Q 16 | | 3Q 16 | | 2Q 16 | | 1Q 16 | | 4Q 16 | | 1Q 16 |
Net financing revenue | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total financing revenue and other interest income | | $ | 126 | | | $ | 105 | | | $ | 92 | | | $ | 89 | | | $ | 92 | | | $ | 21 | | | $ | 34 | |
Interest expense | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Original issue discount amortization | | | 16 | | | | 15 | | | | 15 | | | | 14 | | | | 13 | | | | 1 | | | | 4 | |
Other interest expense | | | 106 | | | | 98 | | | | 83 | | | | 91 | | | | 86 | | | | 8 | | | | 19 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total interest expense | | | 122 | | | | 113 | | | | 98 | | | | 105 | | | | 99 | | | | 9 | | | | 23 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Net financing revenue (deficit) | | | 4 | | | | (8 | ) | | | (6 | ) | | | (16 | ) | | | (7 | ) | | | 12 | | | | 11 | |
Other revenue | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Loss on extinguishment of debt | | | (1 | ) | | | (1 | ) | | | - | | | | - | | | | (4 | ) | | | - | | | | 3 | |
Other gain on investments, net | | | 6 | | | | 23 | | | | 28 | | | | 18 | | | | 32 | | | | (17 | ) | | | (26 | ) |
Other income, net of losses (1) | | | 8 | | | | 21 | | | | 18 | | | | 16 | | | | 11 | | | | (13 | ) | | | (3 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total other (loss) revenue | | | 13 | | | | 43 | | | | 46 | | | | 34 | | | | 39 | | | | (30 | ) | | | (26 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total net revenue (deficit) | | | 17 | | | | 35 | | | | 40 | | | | 18 | | | | 32 | | | | (18 | ) | | | (15 | ) |
Provision for loan losses | | | (4 | ) | | | 2 | | | | (16 | ) | | | (1 | ) | | | 2 | | | | (6 | ) | | | (6 | ) |
Noninterest expense | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Compensation and benefits expense | | | 118 | | | | 103 | | | | 100 | | | | 94 | | | | 95 | | | | 15 | | | | 23 | |
Other operating expense(2) | | | (61 | ) | | | (37 | ) | | | (37 | ) | | | (57 | ) | | | (62 | ) | | | (24 | ) | | | 1 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total noninterest expense | | | 57 | | | | 66 | | | | 63 | | | | 37 | | | | 33 | | | | (9 | ) | | | 24 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
(Loss) from cont. ops before income tax expense | | $ | (36 | ) | | $ | (33 | ) | | $ | (7 | ) | | $ | (18 | ) | | $ | (3 | ) | | $ | (3 | ) | | $ | (33 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | |
Balance Sheet (Period-End) | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Cash, trading and investment securities | | $ | 20,636 | | | $ | 20,636 | | | $ | 17,454 | | | $ | 19,329 | | | $ | 18,127 | | | $ | - | | | $ | 2,509 | |
Finance receivables and loans, net | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Consumer loans | | | 2,640 | | | | 2,799 | | | | 2,992 | | | | 3,163 | | | | 3,319 | | | | (159 | ) | | | (679 | ) |
Commercial loans(3) | | | 67 | | | | 68 | | | | 61 | | | | 55 | | | | 45 | | | | (1 | ) | | | 22 | |
Allowance for loan losses | | | (77 | ) | | | (82 | ) | | | (84 | ) | | | (93 | ) | | | (98 | ) | | | 5 | | | | 21 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total finance receivables and loans, net | | | 2,630 | | | | 2,785 | | | | 2,969 | | | | 3,125 | | | | 3,266 | | | | (155 | ) | | | (636 | ) |
Other assets | | | 4,651 | | | | 5,298 | | | | 4,881 | | | | 4,925 | | | | 5,297 | | | | (647 | ) | | | (646 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total assets | | $ | 27,917 | | | $ | 28,719 | | | $ | 25,304 | | | $ | 27,379 | | | $ | 26,690 | | | $ | (802 | ) | | $ | 1,227 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | |
OID Amortization Schedule (4) | | 2017 | | 2018 | | 2019 | | 2020 | | 2021 and After | | | | |
Remaining Core OID Amortization (as of 3/31/2017) | | $ | 55 | | | $ | 86 | | | $ | 27 | | | $ | 31 | | | | Avg = $52/yr | | | | | | | | | |
(1) Includes gain/(loss) on mortgage and automotive loans
(2) Other operating expenses includes corporate overhead allocated to the other business segments. Amounts of corporate overhead allocated were $212 million for 1Q17, $193 million for 4Q16, $190 million for 3Q16, $186 million for 2Q16, and $202 million for 1Q16 The receiving business segment records the allocation of corporate overhead expense within other operating expenses.
(3) Includes intercompany
(4) Primarily represents bond exchange OID amortization expense used for calculating core pre-tax income
| | |
1Q 2017 Preliminary Results | | 14 |
| | |
ALLY FINANCIAL INC. CREDIT RELATED INFORMATION | | |
($ in millions)
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | QUARTERLY TRENDS | | CHANGE VS. |
| | | | | | | |
Asset Quality - Consolidated(1) | | 1Q 17 | | 4Q 16 | | 3Q 16 | | 2Q 16 | | 1Q 16 | | 4Q 16 | | 1Q 16 |
Ending loan balance | | $ | 119,002 | | | $ | 118,944 | | | $ | 114,959 | | | $ | 112,653 | | | $ | 110,876 | | | $ | 58 | | | $ | 8,126 | |
30+ Accruing DPD | | $ | 1,612 | | | $ | 2,246 | | | $ | 1,934 | | | $ | 1,740 | | | $ | 1,496 | | | $ | (634) | | | $ | 116 | |
30+ Accruing DPD % | | | 1.35% | | | | 1.89% | | | | 1.68% | | | | 1.54% | | | | 1.35% | | | | | | | | | |
Non-performing loans (NPLs) | | $ | 798 | | | $ | 819 | | | $ | 753 | | | $ | 734 | | | $ | 698 | | | $ | (21) | | | $ | 99 | |
Net charge-offs (NCOs) | | $ | 253 | | | $ | 257 | | | $ | 213 | | | $ | 152 | | | $ | 179 | | | $ | (4) | | | $ | 74 | |
Net charge-off rate(2) | | | 0.86% | | | | 0.88% | | | | 0.75% | | | | 0.54% | | | | 0.64% | | | | | | | | | |
| | | | | | | |
Provision for loan losses | | $ | 271 | | | $ | 267 | | | $ | 258 | | | $ | 172 | | | $ | 220 | | | $ | 4 | | | $ | 51 | |
Allowance for loan losses (ALLL) | | $ | 1,155 | | | $ | 1,144 | | | $ | 1,134 | | | $ | 1,089 | | | $ | 1,077 | | | $ | 11 | | | $ | 78 | |
| | | | | | | |
ALLL as % of Loans(3) (4) | | | 1.0% | | | | 1.0% | | | | 1.0% | | | | 1.0% | | | | 1.0% | | | | | | | | | |
ALLL as % of NPLs(3) | | | 145% | | �� | | 140% | | | | 150% | | | | 148% | | | | 154% | | | | | | | | | |
ALLL as % of NCOs(3) | | | 114% | | | | 111% | | | | 133% | | | | 179% | | | | 150% | | | | | | | | | |
| | | | | | | |
US Auto Delinquencies - HFI Retail Contract $‘s(5) | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Delinquent contract $ | | $ | 1,552 | | | $ | 2,160 | | | $ | 1,823 | | | $ | 1,643 | | | $ | 1,387 | | | $ | (608) | | | $ | 165 | |
% of retail contract $ outstanding | | | 2.36% | | | | 3.28% | | | | 2.81% | | | | 2.60% | | | | 2.20% | | | | | | | | | |
| | | | | | | |
U.S. Auto Annualized Net Charge-Offs - HFI Retail Contract $‘s | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Net charge-offs | | $ | 251 | | | $ | 255 | | | $ | 219 | | | $ | 148 | | | $ | 173 | | | $ | (4) | | | $ | 79 | |
% of avg. HFI assets (2) | | | 1.54% | | | | 1.56% | | | | 1.37% | | | | 0.94% | | | | 1.08% | | | | | | | | | |
| | | | | | | |
U.S. Auto Annualized Net Charge-Offs - HFI Commercial Contract $‘s | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Net charge-offs | | $ | 0 | | | $ | 1 | | | $ | 0 | | | $ | 0 | | | $ | 0 | | | $ | (1) | | | $ | 0 | |
% of avg. HFI assets (2) | | | 0.00% | | | | 0.01% | | | | 0.00% | | | | 0.00% | | | | 0.00% | | | | | | | | | |
(1) Loans within this table are classified as held-for-investment recorded at amortized 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 recievables and loans excluding loans measured at fair value, conditional repurchase loans and loans held-for-sale during the year for each loan category.
(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) Excludes $34 million of fair value adjustment for loans in hedge accounting relationships in 1Q17, $43 million in 4Q16, $66 million in 3Q16, $88 million in 2Q16 and $87 million in 1Q16.
(5) Dollar amount of accruing contracts greater than 30 days past due
| | |
1Q 2017 Preliminary Results | | 15 |
| | |
ALLY FINANCIAL INC. CREDIT RELATED INFORMATION, CONTINUED | | |
($ in millions)
CONTINUING OPERATIONS
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Automotive Finance(1) | | QUARTERLY TRENDS | | CHANGE VS. |
Consumer | | 1Q 17 | | 4Q 16 | | 3Q 16 | | 2Q 16 | | 1Q 16 | | 4Q 16 | | 1Q 16 |
Allowance for loan losses | | $ | 941 | | | $ | 932 | | | $ | 912 | | | $ | 862 | | | $ | 850 | | | $ | 9 | | | $ | 91 | |
Total consumer loans(2) | | $ | 65,663 | | | $ | 65,793 | | | $ | 64,816 | | | $ | 63,281 | | | $ | 63,013 | | | $ | (131 | ) | | $ | 2,649 | |
Coverage ratio(3) | | | 1.4% | | | | 1.4% | | | | 1.4% | | | | 1.4% | | | | 1.3% | | | | | | | | | |
| | | | | | | |
Commercial | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Allowance for loan losses | | $ | 58 | | | $ | 57 | | | $ | 57 | | | $ | 57 | | | $ | 55 | | | $ | 1 | | | $ | 3 | |
Total commercial loans | | $ | 38,903 | | | $ | 38,853 | | | $ | 36,036 | | | $ | 35,251 | | | $ | 34,325 | | | $ | 50 | | | $ | 4,578 | |
Coverage ratio | | | 0.1% | | | | 0.1% | | | | 0.2% | | | | 0.2% | | | | 0.2% | | | | | | | | | |
| | | | | | | |
Mortgage(1) | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Consumer | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Mortgage Finance | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Allowance for loan losses | | $ | 11 | | | $ | 11 | | | $ | 19 | | | $ | 18 | | | $ | 18 | | | $ | 0 | | | $ | (7 | ) |
Total consumer loans | | $ | 8,331 | | | $ | 8,294 | | | $ | 7,931 | | | $ | 8,009 | | | $ | 7,443 | | | $ | 38 | | | $ | 888 | |
Coverage ratio | | | 0.1% | | | | 0.1% | | | | 0.2% | | | | 0.2% | | | | 0.2% | | | | | | | | | |
| | | | | | | |
Mortgage - Legacy | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Allowance for loan losses | | $ | 75 | | | $ | 80 | | | $ | 81 | | | $ | 91 | | | $ | 97 | | | $ | (5 | ) | | $ | (22 | ) |
Total consumer loans | | $ | 2,606 | | | $ | 2,756 | | | $ | 2,926 | | | $ | 3,075 | | | $ | 3,232 | | | $ | (150 | ) | | $ | (626 | ) |
Coverage ratio | | | 2.9% | | | | 2.9% | | | | 2.8% | | | | 2.9% | | | | 3.0% | | | | | | | | | |
| | | | | | | |
Total Mortgage | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Allowance for loan losses | | $ | 86 | | | $ | 91 | | | $ | 100 | | | $ | 109 | | | $ | 115 | | | $ | (5 | ) | | $ | (28 | ) |
Total consumer loans | | $ | 10,937 | | | $ | 11,050 | | | $ | 10,857 | | | $ | 11,084 | | | $ | 10,675 | | | $ | (113 | ) | | $ | 262 | |
Coverage ratio | | | 0.8% | | | | 0.8% | | | | 0.9% | | | | 1.0% | | | | 1.1% | | | | | | | | | |
| | | | | | | |
Corporate Finance (1) | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Allowance for loan losses | | $ | 68 | | | $ | 62 | | | $ | 62 | | | $ | 59 | | | $ | 56 | | | $ | 6 | | | $ | 12 | |
Total commercial loans | | $ | 3,432 | | | $ | 3,180 | | | $ | 3,182 | | | $ | 2,976 | | | $ | 2,796 | | | $ | 253 | | | $ | 637 | |
Coverage ratio | | | 2.0% | | | | 2.0% | | | | 2.0% | | | | 2.0% | | | | 2.0% | | | | | | | | | |
| | | | | | | |
Corporate and Other (1) | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Allowance for loan losses | | $ | 2 | | | $ | 2 | | | $ | 3 | | | $ | 2 | | | $ | 1 | | | $ | (0 | ) | | $ | 0 | |
Total commercial loans | | $ | 67 | | | $ | 68 | | | $ | 68 | | | $ | 61 | | | $ | 67 | | | $ | (1 | ) | | $ | (1 | ) |
Coverage ratio | | | 2.6% | | | | 2.6% | | | | 3.7% | | | | 2.6% | | | | 2.1% | | | | | | | | | |
(1) ALLL coverage ratios are based on the domestic allowance as a percentage of finance receivables and loans reported at their gross carrying value, which includes the principal amount outstanding, net of unearned income, unamortized deferred fees reduced by costs on originated loans, unamortized premiums and discounts on purchased loans, unamortized basis adjustments arising from the designation of finance receivables and loans as the hedged item in qualifying fair value hedge relationships, and cumulative principal charge-offs. Excludes loans held at fair value.
(2) Includes $34 million of fair value adjustment for loans in hedge accounting relationships in 1Q17, $43 million in 4Q16, $66 million in 3Q16, $88 million in 2Q16 and $87 million in 1Q16.
(3) Excludes $34 million of fair value adjustment for loans in hedge accounting relationships in 1Q17, $43 million in 4Q16, $66 million in 3Q16, $88 million in 2Q16 and $87 million in 1Q16.
| | |
1Q 2017 Preliminary Results | | 16 |
| | |
ALLY FINANCIAL INC. CAPITAL | | |
($ in billions)
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | QUARTERLY TRENDS | | CHANGE VS. |
| | Basel III Transition | | | | |
Capital(1) | | 1Q 17 | | 4Q 16 | | 3Q 16 | | 2Q 16 | | 1Q 16 | | 4Q 16 | | 1Q 16 |
Risk-weighted assets | | $ | 137.5 | | | $ | 138.5 | | | $ | 135.5 | | | $ | 133.8 | | | $ | 133.6 | | | $ | (1.0 | ) | | $ | 3.9 | |
| | | | | | | |
Common Equity Tier 1 (CET1) capital ratio(2) | | | 9.4% | | | | 9.4% | | | | 9.5% | | | | 9.6% | | | | 9.5% | | | | | | | | | |
Tier 1 capital ratio | | | 11.1% | | | | 10.9% | | | | 11.1% | | | | 11.2% | | | | 11.6% | | | | | | | | | |
Total capital ratio | | | 12.7% | | | | 12.6% | | | | 12.8% | | | | 12.8% | | | | 13.0% | | | | | | | | | |
| | | | | | | |
Tangible common equity / Tangible assets(3)(4) | | | 8.1% | | | | 8.0% | | | | 8.5% | | | | 8.5% | | | | 8.4% | | | | | | | | | |
Tangible common equity / Risk-weighted assets (3) | | | 9.5% | | | | 9.4% | | | | 9.8% | | | | 10.0% | | | | 9.8% | | | | | | | | | |
| | | | | | | |
Shareholders’ equity | | $ | 13.4 | | | $ | 13.3 | | | $ | 13.6 | | | $ | 13.6 | | | $ | 13.8 | | | $ | 0.1 | | | $ | (0.4 | ) |
less: Preferred equity | | | - | | | | - | | | | - | | | | - | | | | (0.7 | ) | | | - | | | | 0.7 | |
Disallowed DTA | | | (0.5 | ) | | | (0.4 | ) | | | (0.4 | ) | | | (0.5 | ) | | | (0.5 | ) | | | (0.1 | ) | | | - | |
Certain AOCI items and other adjustments | | | 0.1 | | | | 0.1 | | | | (0.3 | ) | | | (0.3 | ) | | | - | | | | - | | | | 0.1 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Common Equity Tier 1 capital(2) | | $ | 12.9 | | | $ | 13.0 | | | $ | 12.9 | | | $ | 12.8 | | | $ | 12.7 | | | $ | (0.1 | ) | | $ | 0.2 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | |
Common Equity Tier 1 capital | | $ | 12.9 | | | $ | 13.0 | | | $ | 12.9 | | | $ | 12.8 | | | $ | 12.7 | | | $ | (0.1 | ) | | $ | 0.2 | |
add: Preferred equity | | | - | | | | - | | | | - | | | | - | | | | 0.7 | | | | - | | | | (0.7 | ) |
Trust preferred securities | | | 2.5 | | | | 2.5 | | | | 2.5 | | | | 2.5 | | | | 2.5 | | | | 0.0 | | | | - | |
less: Other adjustments | | | (0.2 | ) | | | (0.3 | ) | | | (0.3 | ) | | | (0.4 | ) | | | (0.4 | ) | | | 0.1 | | | | 0.2 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Tier 1 capital | | $ | 15.2 | | | $ | 15.1 | | | $ | 15.1 | | | $ | 15.0 | | | $ | 15.5 | | | $ | 0.1 | | | $ | (0.3 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | |
Tier 1 capital | | $ | 15.2 | | | $ | 15.1 | | | $ | 15.1 | | | $ | 15.0 | | | $ | 15.5 | | | $ | 0.1 | | | $ | (0.3 | ) |
add: Qualifying subordinated debt and redeemable preferred stock | | | 1.1 | | | $ | 1.2 | | | | 1.2 | | | | 1.2 | | | | 0.9 | | | | (0.1 | ) | | | 0.2 | |
Allowance for loan and lease losses includible in Tier 2 capital and other adjustments | | | 1.1 | | | $ | 1.1 | | | | 1.1 | | | | 1.0 | | | | 1.0 | | | | (0.0 | ) | | | 0.1 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total capital | | $ | 17.5 | | | $ | 17.4 | | | $ | 17.3 | | | $ | 17.2 | | | $ | 17.4 | | | $ | 0.1 | | | $ | 0.1 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | |
Total shareholders’ equity | | $ | 13.4 | | | $ | 13.3 | | | $ | 13.6 | | | $ | 13.6 | | | $ | 13.8 | | | $ | 0.1 | | | $ | (0.4 | ) |
less: Preferred equity | | | - | | | | - | | | | - | | | | - | | | | (0.7 | ) | | | - | | | | 0.7 | |
Goodwill and intangible assets, net of deferred tax liabilities | | | (0.3 | ) | | | (0.3 | ) | | | (0.3 | ) | | | (0.3 | ) | | | - | | | | 0.0 | | | | (0.3 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Tangible common equity(3) | | $ | 13.1 | | | $ | 13.0 | | | $ | 13.3 | | | $ | 13.3 | | | $ | 13.1 | | | $ | 0.1 | | | $ | - | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | |
Total assets | | $ | 162.1 | | | $ | 163.7 | | | $ | 157.4 | | | $ | 157.9 | | | $ | 156.5 | | | $ | (1.6 | ) | | $ | 5.6 | |
less: Goodwill and intangible assets, net of deferred tax liabilities | | | (0.3 | ) | | | (0.3 | ) | | | (0.3 | ) | | | (0.3 | ) | | | - | | | | 0.0 | | | | (0.3 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Tangible assets(4) | | $ | 161.8 | | | $ | 163.4 | | | $ | 157.1 | | | $ | 157.7 | | | $ | 156.5 | | | $ | (1.6 | ) | | $ | 5.3 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | |
Regulatory Capital - Basel III transition to fully phased-in | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Numerator | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Common equity tier 1 capital (transition) | | $ | 12.9 | | | $ | 13.0 | | | $ | 12.9 | | | $ | 12.8 | | | $ | 12.7 | | | | | | | | | |
DTAs arising from NOL and tax credit carryforwards phased-in during transition | | | (0.1 | ) | | | (0.3 | ) | | | (0.3 | ) | | | (0.3 | ) | | | (0.3 | ) | | | | | | | | |
Intangibles phased-in during transition | | | (0.0 | ) | | | (0.0 | ) | | | (0.0 | ) | | | (0.0 | ) | | | - | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Common equity tier 1 capital (fully phased-in) | | $ | 12.8 | | | $ | 12.7 | | | $ | 12.6 | | | $ | 12.5 | | | $ | 12.3 | | | | | | | | | |
| | | | | | | |
Denominator | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Risk-weighted assets (transition) | | $ | 137.5 | | | $ | 138.5 | | | $ | 135.5 | | | $ | 133.8 | | | $ | 133.6 | | | | | | | | | |
DTAs arising from temporary differences that could not be realized through NOL , net of VA and net of DTLs phased-in during transition | | | 0.4 | | | | 0.5 | | | | 0.5 | | | | 0.5 | | | | 0.4 | | | | | | | | | |
Intangibles phased in during transition | | | 0.0 | | | | 0.0 | | | | 0.0 | | | | 0.0 | | | | - | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Risk-weighted assets (fully phased-in) | | $ | 137.9 | | | $ | 139.0 | | | $ | 136.0 | | | $ | 134.2 | | | $ | 134.0 | | | | | | | | | |
| | | | | | | |
Metric | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Common equity tier 1 (transition) | | | 9.4% | | | | 9.4% | | | | 9.5% | | | | 9.6% | | | | 9.5% | | | | | | | | | |
Common equity tier 1 (fully phased-in) (2) | | | 9.3% | | | | 9.1% | | | | 9.3% | | | | 9.3% | | | | 9.2% | | | | | | | | | |
Note: Numbers may not foot due to rounding
(1) Basel III rules became effective on January 1, 2015, subject to transition provisions primarily related to deductions and adjustments impacting CET1 capital and Tier 1 capital
(2) Common Equity Tier 1 capital (“CET1”) fully phased-in: Under the Basel III regulatory framework as adopted in the United States, banking organizations like the company are required to comply with a minimum ratio of common equity tier 1 capital to risk-weighted assets (CET1 Capital Ratio). Common equity tier 1 capital generally consists of common stock (plus any related surplus and net of any treasury stock), retained earnings, accumulated other comprehensive income, and minority interests in the common equity of consolidated subsidiaries, subject to specified conditions and adjustments. The obligation to comply with the minimum CET1 Capital Ratio is subject to ongoing transition periods and other provisions under Basel III. Management believes that both the transitional CET1 Capital Ratio and the fully phased-in CET1 Capital Ratio are helpful to readers in evaluating the company’s capital utilization and adequacy in absolute terms and relative to its peers. The fully phased-in CET1 Capital Ratio is a non-GAAP financial measure that is reconciled to the transitional CET1 Capital Ratio above.
(3) Represents a non-GAAP financial measure. We define tangible common equity as common stockholders’ equity less goodwill and identifiable intangible assets, 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.
(4) Represents a non-GAAP financial measure. We define tangible assets as total assets less goodwill and intangible assets, net of deferred tax liabilities.
| | |
1Q 2017 Preliminary Results | | 17 |
| | |
ALLY FINANCIAL INC. LIQUIDITY | | |
($ in billions)
| | | | | | | | | | | | | | | | | | | | | | | | |
| | 3/31/2017 | | 12/31/2016 | | 3/31/2016 |
Available Liquidity | | Parent (1) | | Ally Bank | | Parent (1) | | Ally Bank | | Parent (1) | | Ally Bank |
Cash and cash equivalents(2) | | $ | 1.8 | | | $ | 2.1 | | | $ | 1.2 | | | $ | 4.8 | | | $ | 2.7 | | | $ | 2.1 | |
Highly liquid securities(3) | | | 2.0 | | | | 11.1 | | | | 2.2 | | | | 7.1 | | | | 1.8 | | | | 6.8 | |
Current committed unused capacity | | | 0.7 | | | | 0.4 | | | | 3.2 | | | | 0.4 | | | | 0.5 | | | | 1.8 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Subtotal | | $ | 4.5 | | | $ | 13.5 | | | $ | 6.6 | | | $ | 12.2 | | | $ | 5.0 | | | $ | 10.7 | |
Ally Bank intercompany loan(4) | | | 0.4 | | | | (0.4 | ) | | | 1.1 | | | | (1.1 | ) | | | 0.8 | | | | (0.8 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | |
Total Current Available Liquidity | | $ | 4.9 | | | $ | 13.1 | | | $ | 7.7 | | | $ | 11.1 | | | $ | 5.7 | | | $ | 9.9 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | |
Unsecured Long-Term Debt Maturity Profile | | 2017 | | 2018 | | 2019 | | 2020 | | 2021 | | 2022 and after |
Consolidated remaining maturities(5) | | $ | 1.8 | | | $ | 3.7 | | | $ | 1.7 | | | $ | 2.2 | | | $ | 0.6 | | | $ | 8.5 | |
(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 unencumbered UST, Agency debt and Agency MBS
(4) To optimize use of cash and secured facility capacity 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
(5) Excludes OID
| | |
1Q 2017 Preliminary Results | | 18 |
| | |
ALLY FINANCIAL INC. NET INTEREST MARGIN AND DEPOSITS | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
($ in millions) | | | | | | | | | | | | | | |
| | QUARTERLY TRENDS | | CHANGE VS. |
| | | | | | | |
Average Balance Details | | 1Q 17 | | 4Q 16 | | 3Q 16 | | 2Q 16 | | 1Q 16 | | 4Q 16 | | 1Q 16 |
Retail Auto Loan | | $ | 65,579 | | | $ | 65,209 | | | $ | 64,223 | | | $ | 63,621 | | | $ | 64,566 | | | $ | 370 | | | $ | 1,013 | |
Auto Lease (net of dep) | | | 10,931 | | | | 12,099 | | | | 13,232 | | | | 14,392 | | | | 15,638 | | | | (1,168 | ) | | | (4,707 | ) |
Commercial Auto | | | 38,019 | | | | 37,386 | | | | 34,905 | | | | 34,800 | | | | 34,026 | | | | 633 | | | | 3,993 | |
Corporate Finance | | | 3,394 | | | | 3,273 | | | | 3,115 | | | | 2,973 | | | | 2,781 | | | | 121 | | | | 613 | |
Mortgage | | | 10,982 | | | | 10,901 | | | | 11,052 | | | | 10,764 | | | | 10,152 | | | | 81 | | | | 830 | |
Cash, Securities and Other | | | 23,972 | | | | 22,699 | | | | 20,669 | | | | 20,900 | | | | 20,496 | | | | 1,273 | | | | 3,476 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total Earning Assets | | $ | 152,877 | | | $ | 151,567 | | | $ | 147,196 | | | $ | 147,450 | | | $ | 147,659 | | | $ | 1,310 | | | $ | 5,218 | |
| | | | | | | |
Interest Revenue | | | 1,661 | | | | 1,650 | | | | 1,652 | | | | 1,635 | | | | 1,599 | | | | 11 | | | | 62 | |
| | | | | | | |
Unsecured Debt(4) | | $ | 20,957 | | | $ | 21,346 | | | $ | 21,714 | | | $ | 22,698 | | | $ | 22,452 | | | $ | (389 | ) | | $ | (1,495 | ) |
Secured Debt | | | 28,002 | | | | 29,788 | | | | 32,343 | | | | 34,019 | | | | 37,587 | | | | (1,786 | ) | | | (9,585 | ) |
Deposits(2) | | | 82,253 | | | | 77,046 | | | | 74,263 | | | | 71,570 | | | | 68,240 | | | | 5,207 | | | | 14,013 | |
Other Borrowings(3) | | | 13,053 | | | | 14,391 | | | | 10,834 | | | | 10,862 | | | | 11,709 | | | | (1,338 | ) | | | 1,344 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total Funding Sources(1) | | $ | 144,265 | | | $ | 142,571 | | | $ | 139,154 | | | $ | 139,149 | | | $ | 139,988 | | | $ | 1,694 | | | $ | 4,277 | |
| | | | | | | |
Interest Expense | | | 666 | | | | 659 | | | | 641 | | | | 637 | | | | 635 | | | | 7 | | | | 31 | |
| | | | | | | |
Net Financing Revenue | | $ | 995 | | | $ | 991 | | | $ | 1,011 | | | $ | 998 | | | $ | 964 | | | $ | 4 | | | $ | 31 | |
| | | | | | | |
Net Interest Margin (yield details) | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Retail Auto Loan | | | 5.66% | | | | 5.64% | | | | 5.58% | | | | 5.47% | | | | 5.31% | | | | | | | | | |
Auto Lease (net of dep) | | | 5.71% | | | | 5.75% | | | | 7.25% | | | | 7.46% | | | | 6.66% | | | | | | | | | |
Commercial Auto | | | 3.24% | | | | 3.05% | | | | 3.03% | | | | 3.03% | | | | 2.98% | | | | | | | | | |
Corporate Finance | | | 6.45% | | | | 6.56% | | | | 6.39% | | | | 6.36% | | | | 6.51% | | | | | | | | | |
Mortgage | | | 3.47% | | | | 3.25% | | | | 3.24% | | | | 3.36% | | | | 3.37% | | | | | | | | | |
Cash, Securities and Other | | | 2.35% | | | | 2.10% | | | | 2.00% | | | | 1.98% | | | | 2.06% | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total Earning Assets | | | 4.41% | | | | 4.33% | | | | 4.46% | | | | 4.46% | | | | 4.36% | | | | | | | | | |
| | | | | | | |
Unsecured Debt | | | 5.07% | | | | 4.99% | | | | 4.87% | | | | 4.80% | | | | 4.89% | | | | | | | | | |
Secured Debt | | | 1.94% | | | | 1.74% | | | | 1.62% | | | | 1.56% | | | | 1.48% | | | | | | | | | |
Deposits | | | 1.14% | | | | 1.15% | | | | 1.14% | | | | 1.14% | | | | 1.14% | | | | | | | | | |
Other Borrowings(3) | | | 1.21% | | | | 1.08% | | | | 1.14% | | | | 1.15% | | | | 1.06% | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total Funding Sources(1) | | | 1.87% | | | | 1.84% | | | | 1.83% | | | | 1.84% | | | | 1.82% | | | | | | | | | |
| | | | | | | |
NIM (as reported) | | | 2.60% | | | | 2.56% | | | | 2.69% | | | | 2.68% | | | | 2.59% | | | | | | | | | |
NIM (excluding OID)(1) | | | 2.64% | | | | 2.60% | | | | 2.73% | | | | 2.72% | | | | 2.63% | | | | | | | | | |
| | | | | | | |
Key Deposit Statistics | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Average retail CD maturity (months) | | | 29.8 | | | | 30.7 | | | | 31.1 | | | | 31.4 | | | | 31.6 | | | | (0.9 | ) | | | (1.8 | ) |
Average retail deposit rate | | | 1.09% | | | | 1.10% | | | | 1.10% | | | | 1.11% | | | | 1.11% | | | | | | | | | |
| | | | | | | |
Ally Financial Deposits Levels | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Ally Bank retail | | $ | 69,971 | | | $ | 66,584 | | | $ | 63,880 | | | $ | 61,239 | | | $ | 58,977 | | | $ | 3,387 | | | $ | 10,994 | |
Ally Bank brokered | | | 14,327 | | | | 12,187 | | | | 11,570 | | | | 11,269 | | | | 10,979 | | | | 2,140 | | | | 3,348 | |
Other | | | 188 | | | | 251 | | | | 294 | | | | 294 | | | | 309 | | | | (63 | ) | | | (121 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total deposits | | $ | 84,486 | | | $ | 79,022 | | | $ | 75,744 | | | $ | 72,802 | | | $ | 70,265 | | | $ | 5,464 | | | $ | 14,221 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | |
Ally Bank Deposit Mix | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Retail CD | | | 26.1% | | | | 27.7% | | | | 27.9% | | | | 29.0% | | | | 30.1% | | | | | | | | | |
MMA/OSA/Checking | | | 56.7% | | | | 56.8% | | | | 56.8% | | | | 55.4% | | | | 54.2% | | | | | | | | | |
Brokered | | | 17.2% | | | | 15.5% | | | | 15.3% | | | | 15.5% | | | | 15.7% | | | | | | | | | |
(1) Excludes OID
(2) Includes brokered deposits. Includes average noninterest-bearing deposits of $93 million in 1Q17, $96 million in 4Q16, $97 million in 3Q16, $91 million in 2Q16, $92 million in 1Q16.
(3) Includes Demand Notes, FHLB and Repurchase Agreements
(4) Includes private unsecured committed credit facility
| | |
1Q 2017 Preliminary Results | | 19 |
| | |
ALLY FINANCIAL INC. ALLY BANK CONSUMER MORTGAGE HFI PORTFOLIOS (PERIOD-END) | | |
($ in billions)
| | | | | | | | | | | | | | | | | | | | |
| | HISTORICAL QUARTERLY TRENDS |
| | | | | |
Mortgage Finance HFI Portfolio | | 1Q 17 | | 4Q 16 | | 3Q 16 | | 2Q 16 | | 1Q 16 |
Loan Value | | | | | | | | | | | | | | | | | | | | |
Gross carry value | | $ | 8.3 | | | $ | 8.3 | | | $ | 7.9 | | | $ | 8.0 | | | $ | 7.4 | |
Net carry value | | $ | 8.3 | | | $ | 8.3 | | | $ | 7.9 | | | $ | 8.0 | | | $ | 7.4 | |
| | | | | |
Estimated Pool Characteristics | | | | | | | | | | | | | | | | | | | | |
% Second lien | | | 0.0% | | | | 0.0% | | | | 0.0% | | | | 0.0% | | | | 0.0% | |
% Interest only | | | 0.3% | | | | 0.3% | | | | 0.3% | | | | 0.4% | | | | 0.5% | |
% 30+ Day delinquent | | | 0.5% | | | | 0.6% | | | | 0.9% | | | | 0.8% | | | | 1.0% | |
% Low/No documentation | | | 0.0% | | | | 0.0% | | | | 0.0% | | | | 0.0% | | | | 0.0% | |
% Non-primary residence | | | 3.7% | | | | 3.8% | | | | 3.4% | | | | 3.4% | | | | 3.5% | |
Refreshed FICO | | | 770 | | | | 772 | | | | 772 | | | | 771 | | | | 770 | |
Wtd. Avg. LTV/CLTV(1) | | | 58.8% | | | | 59.7% | | | | 60.6% | | | | 61.1% | | | | 60.8% | |
| | | | | |
Corporate Other Legacy Mortgage HFI Portfolio | | | | | | | | | | | | | | | | | | | | |
Loan Value | | | | | | | | | | | | | | | | | | | | |
Gross carry value | | $ | 2.6 | | | $ | 2.8 | | | $ | 2.9 | | | $ | 3.1 | | | $ | 3.2 | |
Net carry value | | $ | 2.5 | | | $ | 2.7 | | | $ | 2.8 | | | $ | 3.0 | | | $ | 3.1 | |
| | | | | |
Estimated Pool Characteristics | | | | | | | | | | | | | | | | | | | | |
% Second lien | | | 17.4% | | | | 17.7% | | | | 18.1% | | | | 18.4% | | | | 18.6% | |
% Interest only | | | 5.0% | | | | 6.8% | | | | 8.7% | | | | 12.9% | | | | 14.0% | |
% 30+ Day delinquent | | | 4.0% | | | | 4.4% | | | | 4.1% | | | | 4.0% | | | | 4.1% | |
% Low/No documentation | | | 22.5% | | | | 22.6% | | | | 22.8% | | | | 22.9% | | | | 22.7% | |
% Non-primary residence | | | 7.4% | | | | 7.4% | | | | 7.4% | | | | 7.4% | | | | 7.4% | |
Refreshed FICO | | | 728 | | | | 730 | | | | 730 | | | | 728 | | | | 728 | |
Wtd. Avg. LTV/CLTV(1) | | | 73.3% | | | | 74.1% | | | | 76.6% | | | | 77.8% | | | | 77.6% | |
(1) Updated home values derived using a combination of appraisals, BPOs, AVMs and MSA level house price indices; calculation only includes first liens
| | |
1Q 2017 Preliminary Results | | 20 |
| | |
ALLY FINANCIAL INC. EARNINGS PER SHARE RELATED INFORMATION | | |
($ in millions, shares in thousands)
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | QUARTERLY TRENDS | | CHANGE VS. |
| | | | | | | |
Earnings Per Share Data | | 1Q 17 | | 4Q 16 | | 3Q 16 | | 2Q 16 | | 1Q 16 | | 4Q 16 | | 1Q 16 |
Net income (loss) | | $ | 214 | | | $ | 248 | | | $ | 209 | | | $ | 360 | | | $ | 250 | | | $ | (34 | ) | | $ | (36 | ) |
less: Preferred stock dividends | | | - | | | | - | | | | - | | | | 15 | | | | 15 | | | | - | | | | (15 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
GAAP net income available to common shareholders | | $ | 214 | | | $ | 248 | | | $ | 209 | | | $ | 345 | | | $ | 235 | | | $ | (34 | ) | | $ | (21 | ) |
| | | | | | | |
Weighted-average shares outstanding - basic(1) | | | 465,961 | | | | 472,502 | | | | 482,393 | | | | 485,370 | | | | 484,233 | | | | (6,541 | ) | | | (18,272 | ) |
| | | | | | | |
Weighted-average shares outstanding - diluted(1) | | | 466,829 | | | | 474,505 | | | | 483,575 | | | | 486,074 | | | | 484,654 | | | | (7,675 | ) | | | (17,825 | ) |
| | | | | | | |
Issued shares outstanding (period-end) | | | 462,193 | | | | 467,000 | | | | 475,470 | | | | 483,753 | | | | 483,475 | | | | (4,807 | ) | | | (21,282 | ) |
| | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Net income (loss) per share - basic(1) | | $ | 0.46 | | | $ | 0.53 | | | $ | 0.43 | | | $ | 0.71 | | | $ | 0.49 | | | $ | (0.07 | ) | | $ | (0.03 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | |
Net income (loss) per share - diluted(1) | | $ | 0.46 | | | $ | 0.52 | | | $ | 0.43 | | | $ | 0.71 | | | $ | 0.49 | | | $ | (0.06 | ) | | $ | (0.03 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | |
Adjusted Earnings per Share (“Adjusted EPS”) | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Numerator | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
GAAP net income available to common shareholders | | $ | 214 | | | $ | 248 | | | $ | 209 | | | $ | 345 | | | $ | 235 | | | $ | (34 | ) | | $ | (21 | ) |
less: Disc Ops, net of tax | | | (1 | ) | | | (2 | ) | | | 52 | | | | (3 | ) | | | (3 | ) | | | 1 | | | | 2 | |
add back:Original issue discount expense (“OID expense”) | | | 16 | | | | 15 | | | | 15 | | | | 14 | | | | 15 | | | | 1 | | | | 2 | |
add back: Repositioning Items | | | - | | | | - | | | | - | | | | 4 | | | | 7 | | | | - | | | | (7 | ) |
less: OID & Repo. Tax (tax rate 35% starting 1Q16; 34% prior) | | | (6 | ) | | | (5 | ) | | | (5 | ) | | | (6 | ) | | | (8 | ) | | | (0 | ) | | | 2 | |
Significant Discrete Tax Items | | | - | | | | - | | | | - | | | | (91 | ) | | | 7 | | | | - | | | | (7 | ) |
Series A Actions | | | - | | | | - | | | | - | | | | 1 | | | | - | | | | - | | | | - | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Core net income available to common shareholders(2) | | $ | 224 | | | $ | 256 | | | $ | 271 | | | $ | 263 | | | $ | 253 | | | $ | (32 | ) | | $ | (29 | ) |
| | | | | | | |
Denominator | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Weighted-Average Shares Outstanding -(Diluted, thousands) | | | 466,829 | | | | 474,505 | | | | 483,575 | | | | 486,074 | | | | 484,654 | | | | | | | | | |
| | | | | | | |
Adjusted EPS (3) | | $ | 0.48 | | | $ | 0.54 | | | $ | 0.56 | | | $ | 0.54 | | | $ | 0.52 | | | $ | (0.06 | ) | | $ | (0.04 | ) |
(1) Includes shares related to share-based compensation that vested but were not yet issued
(2) Core net income available to common is a non-GAAP financial measure that serves as the numerator in the calculations of Adjusted EPS and Core ROTCE and that, like those measures, is believed by management to help the reader better understand the operating performance of the core businesses and their ability to generate earnings. Core net income available to common adjusts GAAP net income available to common for discontinued operations, OID expense, repositioning items primarily related to the extinguishment of high-cost legacy debt and strategic activities, certain discrete tax items including tax settlements and preferred stock capital actions.
(3) Adjusted earnings per share (Adjusted EPS) is a non-GAAP financial measure that adjusts GAAP EPS for revenue and expense items that are typically strategic in nature or that management otherwise does not view as reflecting the operating performance of the company. Management believes Adjusted EPS can help the reader better understand the operating performance of the core businesses and their ability to generate earnings. In the numerator of Adjusted EPS, GAAP net income available to common is adjusted for the following items: (a) excludes discontinued operations, net of tax, as Ally is primarily a domestic company and sales of international businesses and other discontinued operations in the past have significantly impacted GAAP EPS, (b) adds back the tax-effected non-cash expense bond exchange original issue discount (OID), (c) adds back tax-effected repositioning items primarily related to the extinguishment of high-cost legacy debt and strategic activities, (d) excludes certain discrete tax items that do not relate to the operating performance of the core businesses, and (e) adjusts for preferred stock capital actions (e.g., Series A and Series G) that have been taken by the company to normalize its capital structure.
| | |
1Q 2017 Preliminary Results | | 21 |
| | |
ALLY FINANCIAL INC. ADJUSTED TANGIBLE BOOK PER SHARE RELATED INFORMATION | | |
($ in billions, shares in thousands)
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | QUARTERLY TRENDS | | CHANGE VS. |
| | | | | | | |
Adjusted Tangible Book Value Per Share (“Adjusted TBVPS”) Information | | 1Q 17 | | 4Q 16 | | 3Q 16 | | 2Q 16 | | 1Q 16 | | 4Q 16 | | 1Q 16 |
| | | | | | | |
Numerator | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
GAAP shareholder’s equity | | $ | 13.4 | | | $ | 13.3 | | | $ | 13.6 | | | $ | 13.6 | | | $ | 13.8 | | | $ | 0.0 | | | $ | (0.5 | ) |
less: Preferred equity | | | - | | | | - | | | | - | | | | - | | | | (0.7 | ) | | | - | | | | 0.7 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
GAAP Common shareholder’s equity | | | 13.4 | | | | 13.3 | | | | 13.6 | | | | 13.6 | | | | 13.1 | | | | 0.0 | | | | 0.2 | |
less: Goodwill and identifiable intangibles, net of DTLs | | | (0.3 | ) | | | (0.3 | ) | | | (0.3 | ) | | | (0.3 | ) | | | (0.0 | ) | | | 0.0 | | | | (0.3 | ) |
Tangible common equity | | | 13.1 | | | | 13.0 | | | | 13.3 | | | | 13.3 | | | | 13.1 | | | | 0.1 | | | | (0.0 | ) |
less: Tax-effected bond OID(tax rate 35% starting 1Q16; 34% prior) | | | (0.8 | ) | | | (0.8 | ) | | | (0.8 | ) | | | (0.8 | ) | | | (0.8 | ) | | | 0.0 | | | | 0.0 | |
less: Series G discount | | | - | | | | - | | | | - | | | | - | | | | - | | | | - | | | | - | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Adjusted tangible book value | | $ | 12.3 | | | $ | 12.2 | | | $ | 12.5 | | | $ | 12.5 | | | $ | 12.3 | | | $ | 0.1 | | | $ | 0.0 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | |
Denominator | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Issued shares outstanding (period-end, thousands) | | | 462,193 | | | | 467,000 | | | | 475,470 | | | | 483,753 | | | | 483,475 | | | | | | | | | |
| | | | | | | |
GAAP shareholder’s equity per share | | $ | 28.9 | | | $ | 28.5 | | | $ | 28.7 | | | $ | 28.1 | | | $ | 28.6 | | | $ | 0.4 | | | $ | 0.3 | |
less: Preferred equity per share | | | - | | | | - | | | | - | | | | - | | | | (1.4 | ) | | | - | | | | 1.4 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
GAAP Common shareholder’s equity per share | | | 28.9 | | | | 28.5 | | | | 28.7 | | | | 28.1 | | | | 27.2 | | | | 0.4 | | | | 1.8 | |
less: Goodwill and identifiable intangibles, net of DTLs per share | | | (0.6 | ) | | | (0.6 | ) | | | (0.6 | ) | | | (0.6 | ) | | | (0.1 | ) | | | (0.0 | ) | | | (0.6 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Tangible common equity per share | | | 28.3 | | | | 27.9 | | | | 28.0 | | | | 27.6 | | | | 27.1 | | | | 0.4 | | | | 1.2 | |
less: Tax-effected bond OID(tax rate 35% starting 1Q16; 34% prior) | | | (1.7 | ) | | | (1.7 | ) | | | (1.7 | ) | | | (1.7 | ) | | | (1.7 | ) | | | 0.0 | | | | 0.0 | |
less: Series G discount per share | | | - | | | | - | | | | - | | | | - | | | | - | | | | - | | | | - | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Adjusted tangible book value per share (1) | | $ | 26.6 | | | $ | 26.2 | | | $ | 26.3 | | | $ | 25.9 | | | $ | 25.4 | | | $ | 0.4 | | | $ | 1.2 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
(1) Adjusted tangible book value per share (Adjusted TBVPS) is a non-GAAP financial measure that reflects the book value of equity available to shareholders even if original issue discount (OID) expense were accelerated immediately through the financial statements. As a result, management believes Adjusted TBVPS provides the reader with an assessment of value that is more conservative than GAAP common shareholder’s equity per share. Adjusted TBVPS generally adjusts common equity for (a) goodwill and identifiable intangibles, net of DTLs, (b) tax-effected bond OID to reduce tangible common equity in the event the corresponding discounted bonds are redeemed/tendered and (c) Series G discount which reduces tangible common equity as the company has normalized its capital structure.
| | |
1Q 2017 Preliminary Results | | 22 |
| | |
ALLY FINANCIAL INC. CORE ROTCE RELATED INFORMATION | | |
($ in millions) unless noted otherwise
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | QUARTERLY TRENDS | | CHANGE VS. |
| | | | | | | |
Core Return on Tangible Common Equity (“Core ROTCE”) | | 1Q 17 | | 4Q 16 | | 3Q 16 | | 2Q 16 | | 1Q 16 | | 4Q 16 | | 1Q 16 |
Numerator | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
GAAP net income available to common shareholders | | $ | 214 | | | $ | 248 | | | $ | 209 | | | $ | 345 | | | $ | 235 | | | $ | (34 | ) | | $ | (21 | ) |
less: Disc Ops, net of tax | | | (1 | ) | | | (2 | ) | | | 52 | | | | (3 | ) | | | (3 | ) | | | 1 | | | | 2 | |
add back: Original issue discount expense (“OID expense”) | | | 16 | | | | 15 | | | | 15 | | | | 14 | | | | 15 | | | | 1 | | | | 2 | |
add back: Repositioning Items | | | - | | | | - | | | | - | | | | 4 | | | | 7 | | | | - | | | | (7 | ) |
less: OID & Repo. Tax (tax rate 35% starting 1Q16; 34% prior) | | | (6 | ) | | | (5 | ) | | | (5 | ) | | | (6 | ) | | | (8 | ) | | | (0 | ) | | | 2 | |
Significant Discrete Tax Items & Other | | | - | | | | - | | | | - | | | | (91 | ) | | | 7 | | | | - | | | | (7 | ) |
Series G Actions | | | - | | | | - | | | | - | | | | - | | | | - | | | | - | | | | - | |
Series A Actions | | | - | | | | - | | | | - | | | | 1 | | | | - | | | | - | | | | - | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Core net income available to common shareholders (1) | | $ | 224 | | | $ | 256 | | | $ | 271 | | | $ | 263 | | | $ | 253 | | | $ | (32 | ) | | $ | (29 | ) |
| | | | | | |
Denominator (2-period average, $ billions) | | | | | | | | | | | | | | | | | | | | | | | | | |
GAAP shareholder’s equity | | $ | 13.3 | | | $ | 13.5 | | | $ | 13.6 | | | $ | 13.7 | | | $ | 13.6 | | | $ | (0.1 | ) | | $ | (0.3 | ) |
less: Preferred equity | | | - | | | | - | | | | - | | | | 0.3 | | | | 0.7 | | | | - | | | | (0.7 | ) |
less: Goodwill & identifiable intangibles, net of deferred tax liabilities (“DTLs”) | | | (0.3 | ) | | | (0.3 | ) | | | 0.3 | | | | 0.1 | | | | 0.0 | | | | 0.0 | | | | (0.3 | ) |
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Tangible common equity | | $ | 13.0 | | | $ | 13.2 | | | $ | 13.3 | | | $ | 13.2 | | | $ | 12.9 | | | $ | (0.1 | ) | | $ | 0.1 | |
less: Unamortized original issue discount (“OID discount”) | | | 1.2 | | | | 1.3 | | | | 1.3 | | | | 1.3 | | | | 1.3 | | | | (0.0 | ) | | | (0.1 | ) |
less: Net deferred tax asset (“DTA”) | | | 1.0 | | | | 1.0 | | | | 1.0 | | | | 1.1 | | | | 1.2 | | | | (0.0 | ) | | | (0.3 | ) |
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Normalized common equity (2) | | $ | 10.8 | | | $ | 10.9 | | | $ | 11.0 | | | $ | 10.8 | | | $ | 10.4 | | | $ | (0.1 | ) | | $ | 0.5 | |
Core ROTCE(3) | | | 8.2% | | | | 9.4% | | | | 9.8% | | | | 9.7% | | | | 9.8% | | | | | | | | | |
(1) Core net income available to common is a non-GAAP financial measure that serves as the numerator in the calculations of Adjusted EPS and Core ROTCE and that, like those measures, is believed by management to help the reader better understand the operating performance of the core businesses and their ability to generate earnings. Core net income available to common adjusts GAAP net income available to common for discontinued operations, OID expense, repositioning items primarily related to the extinguishment of high-cost legacy debt and strategic activities, certain discrete tax items including tax settlements and preferred stock capital actions.
(2) Normalized common equity calculated using 2 period average
(3) Core return on tangible common equity (Core ROTCE) is a non-GAAP financial measure that management believes is helpful for readers to better understand the ongoing ability of the company to generate returns on its equity base that supports core operations. As of 1Q 2016, Ally’s Core net income available to common for purposes of calculating Core ROTCE is based on the actual effective tax rate for the period adjusted for any discrete tax items including tax settlements, which aligns with the methodology used calculating adjusted earnings per share.
(a) In the numerator of Core ROTCE, GAAP net income available to common is adjusted for discontinued operations net of tax, tax-effected OID expense, tax-effected repositioning items primarily related to the extinguishment of high-cost legacy debt and strategic activities, certain discrete tax items and preferred stock capital actions.
(b) In the denominator, GAAP shareholder’s equity is adjusted for preferred equity and goodwill and identifiable intangibles net of DTL, unamortized OID, and net DTA.
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1Q 2017 Preliminary Results | | 23 |
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ALLY FINANCIAL INC. ADJUSTED EFFICIENCY RATIO RELATED INFORMATION | | |
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($ in millions) | | | | | | | | | | | | | | |
| | QUARTERLY TRENDS | | CHANGE VS. |
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Adjusted Efficiency Ratio Calculation | | 1Q 17 | | 4Q 16 | | 3Q 16 | | 2Q 16 | | 1Q 16 | | 4Q 16 | | 1Q 16 |
Numerator | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total noninterest expense | | $ | 778 | | | $ | 721 | | | $ | 735 | | | $ | 773 | | | $ | 710 | | | $ | 57 | | | $ | 68 | |
less: Rep and warrant expense | | | (0 | ) | | | (0 | ) | | | (2 | ) | | | (3 | ) | | | (1 | ) | | | 0 | | | | 1 | |
less: Insurance expense | | | 239 | | | | 207 | | | | 222 | | | | 293 | | | | 218 | | | | 32 | | | | 21 | |
less: Repositioning items | | | - | | | | - | | | | - | | | | 4 | | | | 4 | | | | - | | | | (4 | ) |
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Adjusted noninterest expense | | $ | 539 | | | $ | 514 | | | $ | 515 | | | $ | 479 | | | $ | 488 | | | $ | 25 | | | $ | 51 | |
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Denominator ($ millions) | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total net revenue | | $ | 1,375 | | | $ | 1,368 | | | $ | 1,384 | | | $ | 1,358 | | | $ | 1,327 | | | $ | 7 | | | $ | 48 | |
add: Original issue discount | | | 16 | | | | 15 | | | | 15 | | | | 14 | | | | 15 | | | | 1 | | | | 2 | |
add: Repositioning items | | | - | | | | - | | | | - | | | | - | | | | 3 | | | | - | | | | (3 | ) |
less: Insurance revenue | | | 279 | | | | 276 | | | | 278 | | | | 275 | | | | 268 | | | | 3 | | | | 11 | |
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Adjusted net revenue | | $ | 1,112 | | | $ | 1,107 | | | $ | 1,121 | | | $ | 1,097 | | | $ | 1,076 | | | $ | 5 | | | $ | 36 | |
Adjusted Efficiency Ratio(1) | | | 48.5% | | | | 46.4% | | | | 45.9% | | | | 43.7% | | | | 45.4% | | | | | | | | | |
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(1) Adjusted efficiency ratio is a non-GAAP financial measure that management believes is helpful to readers in comparing the efficiency of its core banking and lending businesses with those of its peers. In the numerator of Adjusted efficiency ratio, total noninterest expense is adjusted for Insurance segment expense, repositioning items primarily related to strategic activities and rep and warrant expense. In the denominator, total net revenue is adjusted for Insurance segment revenue, repositioning items primarily related to the extinguishment of high-cost legacy debt and original issue discount (OID). See page 11 for the combined ratio for the Insurance segment which management uses as a primary measure of underwriting profitability for the Insurance business.
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1Q 2017 Preliminary Results | | 24 |