GM FINANCIAL REPORTS MARCH QUARTER 2017
OPERATING RESULTS
| |
| • | March quarter net income of $202 million |
| |
| • | Retail loan and lease originations of $12.8 billion for the March quarter |
| |
| • | End of period earning assets of $85.1 billion |
| |
| • | Available liquidity of $12.4 billion at quarter-end |
FORT WORTH, TEXAS April 28, 2017 – GENERAL MOTORS FINANCIAL COMPANY, INC.
(“GM Financial” or the “Company”) announced net income of $202 million for the quarter ended March 31, 2017, compared to $164 million for the quarter ended March 31, 2016.
Retail loan originations were $6.5 billion for the quarter ended March 31, 2017, compared to $4.7 billion for the quarter ended December 31, 2016, and $4.1 billion for the quarter ended March 31, 2016. The outstanding balance of retail finance receivables was $36.0 billion at March 31, 2017.
Operating lease originations were $6.3 billion for the quarter ended March 31, 2017, compared to $5.9 billion for the quarter ended December 31, 2016, and $6.8 billion for the quarter ended March 31, 2016. Leased vehicles, net was $37.3 billion at March 31, 2017.
The outstanding balance of commercial finance receivables was $11.8 billion at March 31, 2017 compared to $11.1 billion at December 31, 2016 and $9.2 billion at March 31, 2016.
Retail finance receivables 31-60 days delinquent were 2.8% of the portfolio at March 31, 2017 and 3.1% at March 31, 2016. Accounts more than 60 days delinquent were 1.2% of the portfolio at March 31, 2017 and 1.4% at March 31, 2016.
Annualized net charge-offs were 1.9% of average retail finance receivables for the quarter ended March 31, 2017 and 1.9% for the quarter ended March 31, 2016.
The Company had total available liquidity of $12.4 billion at March 31, 2017, consisting of $2.7 billion of cash and cash equivalents, $8.3 billion of borrowing capacity on unpledged eligible assets, $0.4 billion of borrowing capacity on committed unsecured lines of credit and $1.0 billion of borrowing capacity on a Junior Subordinated Revolving Credit Facility from GM.
Earnings resulting from the Company's equity investment in SAIC-GMAC, a joint venture that conducts auto finance operations in China, were $47 million for the three months ended March 31, 2017 compared to $42 million for the three months ended December 31, 2016, and $36 million for the three months ended March 31, 2016.
About GM Financial
General Motors Financial Company, Inc. is the wholly-owned captive finance subsidiary of General Motors Company and is headquartered in Fort Worth, Texas. For more information, visit www.gmfinancial.com.
Forward-Looking Statements
This presentation contains several “forward-looking statements.” Forward-looking statements are those that use words such as “believe,” “expect,” “intend,” “plan,” “may,” “likely,” “should,” “estimate,” “continue,” “future” or "anticipate" and other comparable expressions. These words indicate future events and trends. Forward-looking statements are our current views with respect to future events and financial performance. These forward-looking statements are subject to many assumptions, risks and uncertainties that could cause actual results to differ significantly from historical results or from those anticipated by us. The most significant risks are detailed from time to time in our filings and reports with the Securities and Exchange Commission, including our annual report on Form 10-K for the year ended December 31, 2016. Such risks include - but are not limited to - GM’s ability to sell new vehicles that we finance in the markets we serve in North America, Latin America, China and Europe, particularly the United Kingdom where automobile sales may be negatively impacted due to the passage of the referendum to discontinue its membership in the European Union; the viability of GM-franchised dealers that are commercial loan customers; the availability and cost of sources of financing; the level of net charge-offs, delinquencies and prepayments on the loans and leases we originate; the effect, interpretation or application of new or existing laws, regulations, court decisions and accounting pronouncements; the prices at which used cars are sold in the wholesale auction markets; vehicle return rates and the residual value performance on vehicles we lease; interest rate and currency exchange rate fluctuations; our financial condition and liquidity, as well as future cash flows and earnings; changes in general and economic business conditions; competition; our ability to manage risks related to security breaches and other disruptions to our networks and systems; changes in business strategy, including expansion of product lines and credit risk appetite, acquisitions and divestitures; and risks and uncertainties associated with the consummation of the sale of GM's Opel/Vauxhall businesses, certain other assets in Europe and certain of our European subsidiaries and branches to the PSA Group, including satisfaction of closing conditions. If one or more of these risks or uncertainties materialize, or if underlying assumptions prove incorrect, actual events or results may differ materially. It is advisable not to place undue reliance on any forward-looking statements. We undertake no obligation to, and do not, publicly update or revise any forward-looking statements, except as required by federal securities laws, whether as a result of new information, future events or otherwise.
General Motors Financial Company, Inc.
Consolidated Statements of Income
(Unaudited, Dollars in millions)
|
| | | | | | | |
| | Three Months Ended March 31, |
| | 2017 | | 2016 |
| Revenue | | | |
| Finance charge income | $ | 862 |
| | $ | 818 |
|
| Leased vehicle income | 1,942 |
| | 1,184 |
|
| Other income | 75 |
| | 73 |
|
| Total revenue | 2,879 |
| | 2,075 |
|
| Costs and expenses | | | |
| Operating expenses | 392 |
| | 334 |
|
| Leased vehicle expenses | 1,438 |
| | 893 |
|
| Provision for loan losses | 217 |
| | 196 |
|
| Interest expense | 619 |
| | 463 |
|
| Total costs and expenses | 2,666 |
| | 1,886 |
|
| Equity income | 47 |
| | 36 |
|
| Income before income taxes | 260 |
| | 225 |
|
| Income tax provision | 58 |
| | 61 |
|
| Net income | $ | 202 |
| | $ | 164 |
|
Consolidated Balance Sheets
(Unaudited, Dollars in millions)
|
| | | | | | | |
| | March 31, 2017 | | December 31, 2016 |
| ASSETS | | | |
| Cash and cash equivalents | $ | 2,694 |
| | $ | 3,201 |
|
| Finance receivables, net | 46,910 |
| | 43,190 |
|
| Leased vehicles, net | 37,302 |
| | 34,526 |
|
| Goodwill | 1,200 |
| | 1,196 |
|
| Equity in net assets of non-consolidated affiliates | 998 |
| | 944 |
|
| Property and equipment, net of accumulated depreciation | 291 |
| | 279 |
|
| Deferred income taxes | 284 |
| | 274 |
|
| Related party receivables | 617 |
| | 510 |
|
| Other assets | 4,244 |
| | 3,645 |
|
| Total assets | $ | 94,540 |
| | $ | 87,765 |
|
| LIABILITIES AND SHAREHOLDER'S EQUITY | | | |
| Liabilities | | | |
| Secured debt | $ | 42,579 |
| | $ | 39,270 |
|
| Unsecured debt | 37,370 |
| | 34,606 |
|
| Accounts payable and accrued expenses | 1,501 |
| | 1,474 |
|
| Deferred income | 2,588 |
| | 2,365 |
|
| Deferred income taxes | 259 |
| | 220 |
|
| Related party payables | 448 |
| | 400 |
|
| Other liabilities | 803 |
| | 737 |
|
| Total liabilities | 85,548 |
| | 79,072 |
|
| Shareholder's equity | 8,992 |
| | 8,693 |
|
| Total liabilities and shareholder's equity | $ | 94,540 |
| | $ | 87,765 |
|
Operational and Financial Data
(Unaudited, Dollars in millions)
|
| | | | | | | | | | | | | | | | | | | | | | | |
| | Three Months Ended March 31, |
| Originations | 2017 | | 2016 |
| | North America | | International | | Total | | North America | | International | | Total |
| Retail finance receivables originations | $ | 4,817 |
| | $ | 1,697 |
| | $ | 6,514 |
| | $ | 2,580 |
| | $ | 1,563 |
| | $ | 4,143 |
|
| GM lease originations | $ | 6,260 |
| | $ | 53 |
| | $ | 6,313 |
| | $ | 6,720 |
| | $ | 32 |
| | $ | 6,752 |
|
| GM new vehicle loans and leases as a percentage of total loan and lease originations | 87.2 | % | | 87.4 | % | | 87.2 | % | | 89.1 | % | | 86.5 | % | | 88.7 | % |
|
| | | | | | | | | | | | | | | | | | | | | | | |
| | Three Months Ended March 31, |
| Average Earning Assets | 2017 | | 2016 |
| | North America | | International | | Total | | North America | | International | | Total |
| Average retail finance receivables | $ | 22,698 |
| | $ | 11,395 |
| | $ | 34,093 |
| | $ | 18,622 |
| | $ | 10,963 |
| | $ | 29,585 |
|
| Average commercial finance receivables | 6,635 |
| | 4,533 |
| | 11,168 |
| | 4,109 |
| | 4,510 |
| | 8,619 |
|
| Average finance receivables | 29,333 |
| | 15,928 |
| | 45,261 |
| | 22,731 |
| | 15,473 |
| | 38,204 |
|
| Average leased vehicles, net | 35,687 |
| | 262 |
| | 35,949 |
| | 22,190 |
| | 97 |
| | 22,287 |
|
| Average earning assets | $ | 65,020 |
| | $ | 16,190 |
| | $ | 81,210 |
| | $ | 44,921 |
| | $ | 15,570 |
| | $ | 60,491 |
|
|
| | | | | | | | | | | | | | | | | | | | | | | |
| Ending Earning Assets | March 31, 2017 | | March 31, 2016 |
| | North America | | International | | Total | | North America | | International | | Total |
| Retail finance receivables, net of fees | $ | 24,354 |
| | $ | 11,650 |
| | $ | 36,004 |
| | $ | 18,806 |
| | $ | 11,466 |
| | $ | 30,272 |
|
| Commercial finance receivables, net of fees | 7,016 |
| | 4,796 |
| | 11,812 |
| | 4,427 |
| | 4,802 |
| | 9,229 |
|
| Leased vehicles, net | 37,018 |
| | 284 |
| | 37,302 |
| | 24,422 |
| | 116 |
| | 24,538 |
|
| Ending earning assets | $ | 68,388 |
| | $ | 16,730 |
| | $ | 85,118 |
| | $ | 47,655 |
| | $ | 16,384 |
| | $ | 64,039 |
|
|
| | | | | | | | | | | | | | | | | | | | | | | |
| Total Finance Receivables | March 31, 2017 | | December 31, 2016 |
| | North America | | International |
| Total | | North America | | International | | Total |
| Retail | | | | | | | | | | | |
Retail finance receivables, net of fees(a,b) | $ | 24,354 |
| | $ | 11,650 |
| | $ | 36,004 |
| | $ | 21,786 |
| | $ | 11,124 |
| | $ | 32,910 |
|
| Less: allowance for loan losses | (718 | ) | | (134 | ) | | (852 | ) | | (666 | ) | | (127 | ) | | (793 | ) |
| Total retail finance receivables, net | 23,636 |
| | 11,516 |
| | 35,152 |
| | 21,120 |
| | 10,997 |
| | 32,117 |
|
| Commercial | | | | | | | | | | | |
| Commercial finance receivables, net of fees | 7,016 |
| | 4,796 |
| | 11,812 |
| | 6,527 |
| | 4,596 |
| | 11,123 |
|
| Less: allowance for loan losses | (34 | ) | | (20 | ) | | (54 | ) | | (30 | ) | | (20 | ) | | (50 | ) |
| Total commercial finance receivables, net | 6,982 |
| | 4,776 |
| | 11,758 |
| | 6,497 |
| | 4,576 |
| | 11,073 |
|
| Total finance receivables, net | $ | 30,618 |
| | $ | 16,292 |
| | $ | 46,910 |
| | $ | 27,617 |
| | $ | 15,573 |
| | $ | 43,190 |
|
(a) Includes $1.6 billion and $1.3 billion of direct-finance leases at March 31, 2017 and December 31, 2016.
(b) Net of unearned income, unamortized premiums and discounts, and deferred fees and costs of $199 million and $191 million at
March 31, 2017 and December 31, 2016.
|
| | | | | | | | | | | | | | | | | |
| Allowance for Loan Losses | March 31, 2017 | | December 31, 2016 |
| | North America | | International | | Total | | North America | | International | | Total |
| Allowance for loan losses as a percentage of retail finance receivables, net of fees | 2.9 | % | | 1.2 | % | | 2.4 | % | | 3.1 | % | | 1.1 | % | | 2.4 | % |
| Allowance for loan losses as a percentage of commercial finance receivables, net of fees | 0.5 | % | | 0.4 | % | | 0.5 | % | | 0.5 | % | | 0.4 | % | | 0.4 | % |
|
| | | | | | | | | | | | | | | | | |
| Delinquencies | March 31, 2017 | | March 31, 2016 |
| | North America | | International | | Total | North America | | International | | Total |
| Loan delinquency as a percentage of ending retail finance receivables: | | | | | | | | | | | |
| 31 - 60 days | 3.6 | % | | 1.0 | % | | 2.8 | % | | 4.5 | % | | 1.0 | % | | 3.1 | % |
| Greater than 60 days | 1.3 | % | | 1.1 | % | | 1.2 | % | | 1.6 | % | | 0.9 | % | | 1.4 | % |
| Total | 4.9 | % | | 2.1 | % | | 4.0 | % | | 6.1 | % | | 1.9 | % | | 4.5 | % |
|
| | | | | | | | | | | | | | | | | | | | | | | |
| | Three Months Ended March 31, |
| Charge-offs and Recoveries | 2017 | | 2016 |
| | North America | | International | | Total | | North America | | International | | Total |
| Charge-offs | $ | 266 |
| | $ | 41 |
| | $ | 307 |
| | $ | 259 |
| | $ | 34 |
| | $ | 293 |
|
| Less: recoveries | (135 | ) | | (12 | ) | | (147 | ) | | (139 | ) | | (11 | ) | | (150 | ) |
| Net charge-offs | $ | 131 |
| | $ | 29 |
| | $ | 160 |
| | $ | 120 |
| | $ | 23 |
| | $ | 143 |
|
| Net charge-offs as an annualized percentage of average retail finance receivables | 2.3 | % | | 1.0 | % | | 1.9 | % | | 2.6 | % | | 0.8 | % | | 1.9 | % |
Recoveries as a percentage of gross repossession charge-offs(a) | 51.6 | % | | | | | | 54.1 | % | | | | |
| |
| (a) | Charge-offs for the International Segment primarily include the write-down of receivables to net realizable value. As a result, a calculation of recoveries as a percentage of gross charge-offs is not meaningful. |
|
| | | | | | | | | | | | | | | | | |
| | Three Months Ended March 31, |
| Operating Expenses | 2017 | | 2016 |
| | North America | | International | | Total | | North America | | International | | Total |
| Operating expenses as an annualized percentage of average earning assets | 1.5 | % | | 3.6 | % | | 2.0 | % | | 1.8 | % | | 3.5 | % | | 2.2 | % |
Investor Relations contact:
Stephen Jones
Vice President, Investor Relations
(817) 302-7119
Investors@gmfinancial.com
