8-K
Ally Financial Inc. (ALLY)
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d)
of the Securities Exchange Act of 1934
April 17, 2025
(Date of report; date of
earliest event reported)
Commission file number: 1-3754
ALLY FINANCIAL INC.
(Exact name of registrant as specified in its charter)
| Delaware | 38-0572512 |
|---|---|
| (State or other jurisdiction of<br> <br>incorporation or organization) | (I.R.S. Employer<br> <br>Identification No.) |
Ally Detroit Center
500 Woodward Ave.
Floor 10, Detroit, Michigan
48226
(Address of principal executive offices)
(Zip Code)
(866) 710-4623
(Registrant’s telephone number, including area code)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):
| ☐ | Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
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| ☐ | Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
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| ☐ | Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
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| ☐ | Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
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Securities registered pursuant to Section 12(b) of the Act (listed on the New York Stock Exchange):
| Title of each class | Trading<br> <br>symbols |
|---|---|
| Common Stock, par value $0.01 per share | ALLY |
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company ☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
| Item 2.02 | Results of Operation and Financial Condition. |
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On April 17, 2025, Ally Financial Inc. issued a press release announcing preliminary operating results for the first quarter ended March 31, 2025. The press release is attached hereto and incorporated by reference as Exhibit 99.1. Charts furnished to securities analysts are attached hereto and incorporated by reference as Exhibit 99.2. In addition, supplemental financial data furnished to securities analysts is attached hereto and incorporated by reference as Exhibit 99.3.
| Item 9.01 | Financial Statements and Exhibits. |
|---|---|
| Exhibit<br>No. | Description |
| --- | --- |
| 99.1 | Press Release, Dated April 17, 2025 |
| 99.2 | Charts Furnished to Securities Analysts |
| 99.3 | Supplemental Financial Data Furnished to Securities Analysts |
| 104 | The cover page from this Current Report on Form 8-K, formatted in Inline XBRL |
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
| ALLY FINANCIAL INC. | |
|---|---|
| (Registrant) | |
| Dated: April 17, 2025 | /s/ David J. DeBrunner |
| David J. DeBrunner | |
| Vice President, Controller, and Chief Accounting Officer |
EX-99.1
Exhibit 99.1
News release: IMMEDIATE RELEASE
| Ally Financial Reports First Quarter 2025 Financial Results | |||
|---|---|---|---|
| $(0.82) | (8.6)% | $(284) million | $1.5 billion |
| GAAP EPS | RETURN ON COMMON EQUITY | PRE-TAX INCOME | GAAP TOTAL NET REVENUE |
| $0.58 | 8.3% | $247 million | $2.1 billion |
| ADJUSTED EPS^1^ | CORE ROTCE^1^ | CORE PRE-TAX INCOME^1^ | ADJUSTED TOTAL NET REVENUE^1^ |
NOTABLE
ITEMS
| • | Reclassified $2.4B Card assets to<br>‘held-for-sale’ as of 3/31; impact of reserve release, goodwill impairment, and deal expenses excluded from adjusted metrics – sale closed successfully on<br>4/1, generated 40bps of CET1 in total | |||
|---|---|---|---|---|
| • | Sold $4.1B of low yielding securities and reinvested at current market yields | $495M pre-tax loss excluded from adjusted metrics | (23 bps) of CET1 | Interest rate risk trade focused on reducing portfolio duration and AOCI volatility |
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KEY HIGHLIGHTS
| • | $10.2 billion of consumer auto origination volume sourced from a record 3.8 million<br>consumer auto applications | |
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| • | Retail auto originated yield^1^ of 9.80% with 44% of volume<br>within highest credit quality tier | |
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| • | 212 bps retail auto net charge-offs, in-line with full year guidance<br> | |
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| • | Insurance written premiums of $385 million, up 9% year over year | |
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| • | $146 billion of retail deposits | 92% FDIC insured |
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| • | 64 consecutive quarters of retail deposit customer growth, up 58 thousand in 1Q | 3.3 million customers<br> |
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| • | Corporate Finance HFI portfolio of $10.9 billion | Well-diversified, high-quality, 100% first-lien, floating<br>rate loans |
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| • | Reiterated full year guide - closely monitoring macroeconomic environment | |
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CEO COMMENTS
“Ally delivered solid first quarter results, reflecting continued momentum across our market-leading franchises – Dealer Financial Services, Deposits, and Corporate Finance.” said Chief Executive Officer, Michael Rhodes. “Our performance demonstrates the importance of our focused approach, disciplined execution, and unwavering commitment to delivering value for our customers and shareholders.
Dealer Financial Services results again highlight the strength of our dealer relationships and the scale of our franchise with $10.2 billion of consumer originations sourced from a record 3.8 million applications. Within Insurance, we continued to capitalize on synergies with our auto finance team, resulting in written premiums of $385 million, a first quarter record.
Corporate Finance delivered another impressive quarter with 13% growth in held-for-investment loans and a 25% return on equity. Credit performance within the portfolio remained strong, and we ended the quarter with historically low levels of criticized asset and non-accrual loan exposures.
Within Ally Bank, we are committed to delivering best-in-class digital features and products to grow the customer value proposition beyond rate. Retail deposit balances of $146 billion were up $2.6 billion within the quarter and are 92% FDIC insured. Deposits remain a source of strength for our balance sheet as they comprise 89% of our total funding mix.
On April 1^st^, we successfully closed the sale of Ally Credit Card. We also executed two securities repositioning transactions during the quarter, which improves our interest rate risk position by reducing AOCI volatility. These strategic actions strengthen our balance sheet, reduce risk, and support the sustainability of our returns over time.
As I reflect on my first twelve months as CEO, I am incredibly proud of our teammates and their unwavering commitment to our “Do it Right” culture which continues to provide exceptional experiences for our customers. I am excited about the significant opportunities within our core franchises, and believe we are well-positioned to unlock even greater value. Importantly, our pivot to a more focused Ally enables us to execute in a variety of economic environments.”
First Quarter 2025 Financial Results
| Increase / (Decrease) vs. | |||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| ($ millions except per share data) | 1Q 25 | 4Q 24 | 1Q 24 | 4Q 24 | 1Q 24 | ||||||||||
| GAAP Net Income (Loss) Attributable to Common Shareholders | $ | (253 | ) | $ | 81 | $ | 115 | (412 | )% | (320 | )% | ||||
| Core Net Income (Loss) Attributable to Common Shareholders^1^ | $ | 179 | $ | 246 | $ | 125 | (27 | )% | 43 | % | |||||
| GAAP Earnings per Common Share | $ | (0.82 | ) | $ | 0.26 | $ | 0.37 | (418 | )% | (318 | )% | ||||
| Adjusted EPS^1^ | $ | 0.58 | $ | 0.78 | $ | 0.41 | (26 | )% | 43 | % | |||||
| Return on GAAP Shareholder’s Equity | (8.6 | )% | 2.7 | % | 4.1 | % | (415 | )% | (312 | )% | |||||
| Core ROTCE^1^ | 8.3 | % | 11.3 | % | 5.9 | % | (27 | )% | 41 | % | |||||
| GAAP Common Shareholder’s Equity per Share | $ | 38.77 | $ | 37.92 | $ | 37.03 | 2 | % | 5 | % | |||||
| Adjusted Tangible Book Value per Share^1^ | $ | 35.95 | $ | 34.04 | $ | 32.63 | 6 | % | 10 | % | |||||
| GAAP Total Net Revenue | $ | 1,541 | $ | 2,026 | $ | 1,998 | (24 | )% | (23 | )% | |||||
| Adjusted Total Net Revenue^1^ | $ | 2,065 | $ | 2,088 | $ | 2,001 | (1 | )% | 3 | % | |||||
| ^1^ | The following are non-GAAP financial measures which Ally believes are<br>important to the reader of the Consolidated Financial Statements, but which are supplemental to and not a substitute for GAAP measures: Adjusted Earnings per Share (Adjusted EPS), Adjusted Total Net Revenue, Core<br>Pre-Tax Income, Core Net Income Attributable to Common Shareholders, Core OID, Core Return on Tangible Common Equity (Core ROTCE), Estimated Retail Auto Originated Yield, Tangible Common Equity, Net Financing<br>Revenue (excluding Core OID) and Adjusted Tangible Book Value per Share (Adjusted TBVPS). These measures are used by management and we believe are useful to investors in assessing the company’s operating performance and capital. Refer to the<br>Definitions of Non-GAAP Financial Measures and Other Key Terms, and Reconciliation to GAAP later in this release. | ||||||||||||||
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Discussion of First Quarter 2025 Results
Net income (loss) attributable to common shareholders was $(253) million in the quarter, compared to $115 million in the first quarter of 2024. The decrease was primarily driven by the $495 million pre-tax loss associated with the repositioning of securities.
Net financing revenue was $1.5 billion, up $10 million year over year. Net interest margin (“NIM”) of 3.31% increased 15 bps year over year. Excluding Core OID^A^, NIM of 3.35% was up 16 bps year over year.
Other revenue decreased $467 million year over year to $63 million due to the repositioning of securities and a $13 million decrease in fair value of equity securities in the quarter compared to a $11 million increase in the first quarter of 2024. Adjusted other revenue^A^ of $571 million increased $52 million year over year driven by momentum across diversified revenue streams including Insurance, SmartAuction, and Passthrough platforms.
Provision for credit losses decreased $316 million year over year to $191 million, primarily driven by reserve release related to the sale of Ally Credit Card and lower retail auto net charge-offs.
Noninterest expense increased $326 million year over year, primarily driven by the impact of the Card sale as well as historically high first quarter weather losses.
A tax benefit of $59 million was primarily driven by the losses associated with the securities repositioning transactions.
| ^A^ | Represents a non-GAAP financial measure. Refer to the Definitions of Non-GAAP Financial Measures and Other Key Terms and Reconciliation to GAAP later in this press release. |
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First Quarter 2025 Financial Results
| Increase / (Decrease) vs. | |||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| ($ millions except per share data) | 1Q 25 | 4Q 24 | 1Q 24 | 4Q 24 | 1Q 24 | ||||||||||
| (a) Net Financing Revenue | $ | 1,478 | $ | 1,509 | $ | 1,468 | $ | (31 | ) | $ | 10 | ||||
| Core OID^1^ | 16 | 15 | 13 | 1 | 2 | ||||||||||
| Net Financing Revenue (excluding Core OID)^1^ | 1,494 | 1,524 | 1,481 | (30 | ) | 12 | |||||||||
| (b) Other Revenue | 63 | 517 | 530 | (454 | ) | (467 | ) | ||||||||
| Repositioning^3^ | 495 | — | — | 495 | 495 | ||||||||||
| Change in Fair Value of Equity Securities^2^ | 13 | 47 | (11 | ) | (34 | ) | 23 | ||||||||
| Adjusted Other Revenue^1^ | 571 | 564 | 519 | 8 | 52 | ||||||||||
| (c) Provision for Credit Losses | 191 | 557 | 507 | (366 | ) | (316 | ) | ||||||||
| Repositioning^3^ | 306 | — | — | 306 | 306 | ||||||||||
| Adjusted Provision for Credit Losses^1^ | 497 | 557 | 507 | (60 | ) | (10 | ) | ||||||||
| (d) Noninterest Expense | 1,634 | 1,360 | 1,308 | 274 | 326 | ||||||||||
| Repositioning^3^ | (314 | ) | (140 | ) | (10 | ) | (174 | ) | (304 | ) | |||||
| Adjusted Noninterest Expense^1^ | 1,320 | 1,220 | 1,298 | 100 | 22 | ||||||||||
| Pre-Tax Income (loss)(a+b-c-d) | $ | (284 | ) | $ | 109 | **** | $ | 183 | **** | $ | (393 | ) | $ | (467 | ) |
| Income Tax Expense (Benefit) | (59 | ) | — | 40 | (59 | ) | (99 | ) | |||||||
| Net Income (Loss) from Discontinued Operations | — | (1 | ) | — | 1 | — | |||||||||
| Net Income (Loss) | $ | (225 | ) | $ | 108 | **** | $ | 143 | **** | $ | (333 | ) | $ | (368 | ) |
| Preferred Dividends | 28 | 27 | 28 | 1 | — | ||||||||||
| Net Income (Loss) Attributable to Common Shareholders | $ | (253 | ) | $ | 81 | **** | $ | 115 | **** | $ | (334 | ) | $ | (368 | ) |
| GAAP EPS (diluted) | $ | (0.82 | ) | $ | 0.26 | **** | $ | 0.37 | **** | $ | (1.07 | ) | $ | (1.19 | ) |
| Core OID, Net of Tax^1^ | 0.04 | 0.04 | 0.03 | 0.00 | 0.01 | ||||||||||
| Change in Fair Value of Equity Securities, Net of<br>Tax^3^ | 0.03 | 0.12 | (0.03 | ) | (0.09 | ) | 0.06 | ||||||||
| Repositioning, Discontinued Ops., and Other, Net of Tax^3^ | 1.33 | 0.37 | 0.02 | 0.95 | 1.30 | ||||||||||
| Significant Discrete Tax Items | — | — | — | — | — | ||||||||||
| Adjusted EPS^1^ | $ | 0.58 | **** | $ | 0.78 | **** | $ | 0.41 | **** | $ | (0.20 | ) | $ | 0.18 | **** |
| (1) | Represents a non-GAAP financial measure. Refer to the Definitions of Non-GAAP Financial Measures and Other Key<br>Terms and Reconciliation to GAAP later in this press release. | ||||||||||||||
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| (2) | Impacts the Insurance, Corporate Finance and Corporate and Other segments. The change reflects fair value<br>adjustments to equity securities that are reported at fair value. Management believes the change in fair value of equity securities should be removed from select financial measures because it enables the reader to better understand the<br>business’s ongoing ability to generate revenue and income. | ||||||||||||||
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| (3) | Contains non-GAAP financial measures and other financial measures. See pages 5 and 6 for definitions.<br> | ||||||||||||||
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2
Pre-Tax Income by Segment
| Increase / (Decrease) vs. | |||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| ($ millions) | 1Q 25 | 4Q 24 | 1Q 24 | 4Q 24 | 1Q 24 | ||||||||||
| Automotive Finance | $ | 375 | $ | 397 | $ | 480 | $ | (22 | ) | $ | (105 | ) | |||
| Insurance | 2 | 36 | 70 | (34 | ) | (68 | ) | ||||||||
| Dealer Financial Services | $ | 377 | **** | $ | 433 | **** | $ | 550 | **** | $ | (56 | ) | $ | (173 | ) |
| Corporate Finance | 76 | 120 | 100 | (44 | ) | (24 | ) | ||||||||
| Corporate and Other | (737 | ) | (444 | ) | (467 | ) | (293 | ) | (270 | ) | |||||
| Pre-Tax Income (Loss) from ContinuingOperations | $ | (284 | ) | $ | 109 | **** | $ | 183 | **** | $ | (393 | ) | $ | (467 | ) |
| Core OID^1^ | 16 | 15 | 13 | 1 | 2 | ||||||||||
| Change in Fair Value of Equity Securities^2,3^ | 13 | 47 | (11 | ) | (34 | ) | 23 | ||||||||
| Repositioning and Other^3^ | 503 | 140 | 10 | 363 | 493 | ||||||||||
| Core Pre-Tax Income^1^ | $ | 247 | **** | $ | 310 | **** | $ | 195 | **** | $ | (63 | ) | $ | 52 | **** |
| (1) | Represents a non-GAAP financial measure. Refer to the Definitions of Non-GAAP Financial Measures and Other Key Terms and Reconciliation to GAAP later in this press release. | ||||||||||||||
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| (2) | Change in fair value of equity securities primarily impacts the Insurance, Corporate Finance, and Corporate and<br>Other segments. Reflects equity fair value adjustments which requires change in the fair value of equity securities to be recognized in current period net income. | ||||||||||||||
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| (3) | Contains non-GAAP financial measures and other financial measures. See<br>pages 5 and 6 for definitions. | ||||||||||||||
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Discussion of Segment Results
Auto Finance
Pre-tax income of $375 million was down $105 million year over year, driven by lower net financing revenue.
Net financing revenue of $1.3 billion was down $108 million year over year, primarily driven by lower lease gains and lower commercial assets. Ally’s retail auto portfolio yield, excluding the impact from hedges, increased 46 bps year over year to 9.11% as the portfolio continues to turn over and benefits from higher yielding originations.
Provision for credit losses of $434 million was down $14 million year over year, driven by lower retail auto net charge-offs. The retail auto net charge-off rate was 2.12%. Retail auto delinquencies 30+ days past due, inclusive of non-accrual loans, increased 11bps year over year to 4.77%.
Noninterest expense of $554 million was up $11 million year over year primarily driven by servicing-related expenses.
Consumer auto originations of $10.2 billion included $6.4 billion of used retail volume, or 63% of total originations, $2.9 billion of new retail volume, and $0.9 billion of lease. Estimated retail auto originated yield^B^ was 9.80% in the quarter with 44% of originations in the highest credit quality tier.
End-of-period auto earning assets of $113.3 billion decreased $2.6 billion year over year. End-of-period consumer auto earning assets of $91.8 billion decreased $0.4 billion year over year due to lower lease assets. End-of-period commercial earning assets of $21.5 billion were down $2.2 billion year over year, driven by lower new vehicle inventory.
Insurance
Pre-tax income of $2 million was down $68 million year over year. Results reflect a $32 million decrease in the change in fair value of equity securities year over year. Core pre-tax income^C^ of $17 million decreased $36 million year over year, driven by elevated losses.
Insurance losses of $161 million, up $49 million year over year, are reflective of elevated weather losses and P&C portfolio growth.
Written premiums of $385 million, up 9% year over year, were driven by growth in P&C premiums.
Total investment income, excluding the change in fair value of equity securities^D^, was $41 million, down $3 million year over year driven by lower realized investment gains.
| ^B^ | Estimated Retail Auto Originated Yield is a forward-looking non-GAAP<br>financial measure determined by calculating the estimated average annualized yield for loans originated during the period. Refer to the Definitions of Non-GAAP Financial Measures and Other Key Terms and<br>Reconciliation to GAAP later in this press release. |
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| ^C^ | Represents a non-GAAP financial measure. Refer to the Definitions of Non-GAAP Financial Measures and Other Key Terms and Reconciliation to GAAP later in this press release. |
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| ^D^ | Change in the fair value of equity securities to be recognized in current period net income. Refer to the<br>Definitions of Non-GAAP Financial Measures and Other Key Terms and Reconciliation to GAAP later in this press release. |
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3
Discussion of Segment Results
Corporate Finance
Pre-tax **** income of $76 million was down $24 million year over year driven by lower net financing revenue and higher provision expense.
Net financing revenue of $104 million was down $16 million year over year driven by lower average assets and lower amortized fees. Other revenue of $29 million was up $6 million year over year driven by strong loan syndication income.
Provision expense of $14 million was up $15 million year over year primarily due to the impact of asset growth.
The held-for-investment loan portfolio of $10.9 billion is 100% first lien. Criticized assets and non-accrual loan percentages remain near historically low levels at 12% and 1%, respectively.
Capital, Liquidity & Deposits
Capital
Ally paid a $0.30 per share quarterly common dividend, which was unchanged year over year. Ally’s Board of Directors approved a $0.30 per share common dividend for the second quarter of 2025. Ally did not repurchase any shares on the open market during the quarter.
Ally’s common equity tier 1 (CET1) capital ratio was 9.5%. Within the quarter, $2.4 billion of Card assets were transferred to held for sale, generating 20 bps of CET1, with an additional 20 bps of CET1 generated upon closing the sale on April 1^st^. Additionally, we sold $4.1 billion of low-yielding securities reinvested at current market yields, which resulted in a (23 bps) impact to CET1. Lastly, the final CECL phase-in was completed, resulting in a (19 bps) impact to CET1.
Risk weighted assets (RWA) of $153.6 billion were up $0.3 billion quarter over quarter.
Liquidity & Funding
Cash and cash equivalents^E^ totaled $9.5 billion. Highly liquid securities were $20.3 billion and unused pledged borrowing capacity at the FHLB and FRB was $11.3 billion and $26.9 billion, respectively. Total current available liquidity^F^ was $68.0 billion, equal to 5.7x uninsured deposit balances.
Deposits represented 89% of Ally’s funding portfolio.
Deposits
Retail deposits of $146.1 billion were up $0.9 billion year over year, and up $2.6 billion quarter over quarter. Total deposits were $151.4 billion and Ally maintained an industry-leading customer retention rate^G^.
The average retail portfolio deposit rate was 3.75%, down 50 bps year over year and down 22 bps quarter over quarter.
Ally Bank added 58 thousand net new deposit customers, totaling 3.3 million, up 6% year over year. Millennials and younger customers continue to comprise the largest generation segment of new customers, accounting for 75% of new customers in the quarter.
| ^E^ | Cash & cash equivalents may include the restricted cash accumulation for retained notes maturing<br>within the following 30 days and returned to Ally on the distribution date. See page 18 of the Financial Supplement for more details. |
|---|---|
| ^F^ | Total liquidity includes cash & cash equivalents, highly liquid securities and current unused<br>borrowing capacity at the FHLB, and FRB Discount Window. See page 18 of the Financial Supplement for more details. |
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| ^G^ | See definitions of non-GAAP financial measures and other key terms<br>later in this document for more details. |
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4
Definitions of Non-GAAP Financial Measures andOther Key Terms
Ally believes the non-GAAP financial measures defined here are important to the reader of the Consolidated Financial Statements, but these are supplemental to and not a substitute for GAAP measures. See Reconciliation to GAAP below for calculation methodology and details regarding each measure.
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 attributable to common shareholders is adjusted for the following items: (1) 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, (2) adds back the tax-effected non-cash Core OID, (3) adjusts for tax-effected repositioning and other which are primarily related to the extinguishment of high-cost legacy debt, strategic activities and significant other one-time items, (4) change in fair value of equity securities, (5) excludes significant discrete tax items that do not relate to the operating performance of the core businesses, and adjusts for preferred stock capital actions that have been taken by the company to normalize its capital structure, as applicable for respective periods. See page 6 for calculation methodology and details.
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. For purposes of this calculation, tangible common equity is adjusted for Core OID balance and net DTA. Ally’s Core net income attributable to common shareholders for purposes of calculating Core ROTCE is based on the actual effective tax rate for the period adjusted for significant discrete tax items including tax reserve releases, which aligns with the methodology used in calculating adjusted earnings per share.
| (1) | In the numerator of Core ROTCE, GAAP net income attributable to common shareholders is adjusted for<br>discontinued operations net of tax, tax-effected Core OID, tax-effected repositioning and other which are primarily related to the extinguishment of high-cost legacy<br>debt, strategic activities and significant other one-time items, change in fair value of equity securities, significant discrete tax items, and preferred stock capital actions, as applicable for respective<br>periods. |
|---|---|
| (2) | In the denominator, GAAP shareholder’s equity is adjusted for goodwill and identifiable intangibles net of<br>DTL, Core OID balance, and net DTA. |
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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 Rep and warrant expense, Insurance segment expense, and repositioning and other which are primarily related to the extinguishment of high-cost legacy debt, strategic activities and significant other one-time items, as applicable for respective periods. In the denominator, total net revenue is adjusted for Core OID and Insurance segment revenue. See Reconciliation to GAAP on page 7 for calculation methodology and details.
Adjusted Tangible Book Value per Share (Adjusted TBVPS) is a non-GAAP financial measure that reflects the book value of equity attributable to shareholders even if Core OID balance 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: (1) goodwill and identifiable intangibles, net of DTLs, and (2) tax-effected Core OID balance to reduce tangible common equity in the event the corresponding discounted bonds are redeemed/tendered, as applicable for respective periods.
Core Net Income Attributable to Common Shareholders 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 Attributable to Common Shareholders adjusts GAAP net income attributable to common shareholders for discontinued operations net of tax, tax-effected Core OID expense, tax-effected repositioning and other primarily related to the extinguishment of high-cost legacy debt and strategic activities and significant other, preferred stock capital actions, significant discrete tax items and tax-effected changes in equity investments measured at fair value, as applicable for respective periods. See Reconciliation to GAAP on page 6 for calculation methodology and details.
Core Original Issue Discount (Core OID) Amortization Expense is a non-GAAP financial measure for OID, and is believed by management to help the reader better understand the activity removed from: Core pre-tax income (loss), Core net income (loss) attributable to common shareholders, Adjusted EPS, Core ROTCE, Adjusted efficiency ratio, Adjusted total net revenue, and Net financing revenue (excluding Core OID). Core OID is primarily related to bond exchange OID which excludes international operations and future issuances. **** See page 7 for calculation methodology and details.
Core Outstanding Original Issue Discount Balance (Core OID balance) is a non-GAAP financial measure for outstanding OID and is believed by management to help the reader better understand the balance removed from Core ROTCE and Adjusted TBVPS. Core OID balance is primarily related to bond exchange OID which excludes international operations and future issuances. See page 7 for calculation methodology and details.
Core Pre-Tax Income is a non-GAAP financial measure that adjusts pre-tax income from continuing operations by excluding (1) Core OID, and (2) change in fair value of equity securities (change in fair value of equity securities impacts the Insurance and Corporate Finance segments), and (3) Repositioning and other which are primarily related to the extinguishment of high-cost legacy debt, strategic activities and significant other one-time items, as applicable for respective periods or businesses. 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. See the Pre-Tax Income by Segment Table on page 3 for calculation methodology and details.
Tangible Common Equity is a non-GAAP financial measure that is defined 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. Ally believes that Tangible Common Equity is important because we believe readers 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. For purposes of calculating Core Return on Tangible Common Equity (Core ROTCE), Tangible Common Equity is further adjusted for Core OID balance and net deferred tax asset. See page 6 for calculation methodology & details.
Net Interest Margin (excluding Core OID) is calculated using a non-GAAP measure that adjusts net interest margin by excluding Core OID. The Core OID balance is primarily related to bond exchange OID which excludes international operations and future issuances. Management believes net interest margin ex. Core OID is a helpful financial metric because it enables the reader to better understand the business’ profitability and margins.
Net Financing Revenue (excluding Core OID) is calculated using a non-GAAP measure that adjusts net financing revenue by excluding Core OID. The Core OID balance is primarily related to bond exchange OID which excludes international operations and future issuances. Management believes net financing revenue ex. Core OID is a helpful financial metric because it enables the reader to better understand the business’ ability to generate revenue.
Adjusted Other Revenue is a non-GAAP financial measure that adjusts GAAP other revenue for OID expenses, repositioning, and change in fair value of equity securities. Management believes adjusted other revenue is a helpful financial metric because it enables the reader better understand the business’ ability to generate other revenue. ****
Adjusted Total Net Revenue is a non-GAAP financial measure that management believes is helpful for readers to understand the ongoing ability of the company to generate revenue. For purposes of this calculation, GAAP net financing revenue is adjusted by excluding Core OID to calculate net financing revenue ex. core OID. GAAP other revenue is adjusted for OID expenses, repositioning, and change in fair value of equity securities to calculate adjusted other revenue. Adjusted total net revenue is calculated by adding net financing revenue ex. core OID to adjusted other revenue.
Adjusted Noninterest Expense is a non-GAAP financial measure that adjusts GAAP noninterest expense for repositioning items. Management believes adjusted noninterest expense is a helpful financial metric because it enables the reader to better understand the business’ expenses excluding nonrecurring items.
Adjusted Provision for Credit Losses is a non-GAAP financial measure that adjusts GAAP provision for credit losses for repositioning items. Management believes adjusted provision for credit losses is a helpful financial metric because it enables the reader to better understand the business’s expenses excluding nonrecurring items.
Estimated Retail Auto Originated Yield is a financial measure determined by calculating the estimated average annualized yield for loans originated during the period. At this time there currently is no comparable GAAP financial measure for Estimated Retail Auto Originated Yield and therefore this forecasted estimate of yield at the time of origination cannot be quantitatively reconciled to comparable GAAP information.
Net Charge-Off Ratios are annualized net charge-offs divided by average outstanding finance receivables and loans excluding loans measured at fair value and loans held-for-sale.
Accelerated issuance expense (Accelerated OID) is the recognition of issuance expenses related to calls of redeemable debt. ****
Customer retention rate is the annualized 3-month rolling average of 1 minus the monthly attrition rate; excludes escheatment.
Repositioning is primarily related to the extinguishment of high-cost legacy debt, strategic activities, restructuring, and significant other one-time items.
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 consumer mortgage portfolio, and reclassifications and eliminations between the reportable operating segments. Subsequent to June 1, 2016, the revenue and expense activity associated with Ally Invest was included within the Corporate and Other segment. Subsequent to October 1, 2019, the revenue and expense activity associated with Ally Lending was included within the Corporate and Other segment. Ally Lending was moved to Assets of Operations Held for Sale on December 31, 2023. The sale of Ally Lending closed on March 1, 2024. Subsequent to December 1, 2021, the revenue and expense activity associated with Ally Credit Card was included within the Corporate and Other segment. Ally Credit Card was moved to Assets of Operations Held for Sale on March 31, 2025.
5
Change in fair value of equity securities impacts the Insurance, Corporate Finance and Corporate and Other segments. The change reflects fair value adjustments to equity securities that are reported at fair value. Management believes the change in fair value of equity securities should be removed from select financial measures because it enables the reader to better understand the business’ ongoing ability to generate revenue and income.
Estimated impact of CECL on regulatory capital perfinal rule issued by U.S. banking agencies – In December 2018, the FRB and other U.S. banking agencies approved a final rule to address the impact of CECL on regulatory capital by allowing BHCs and banks, including Ally, the option to phase in the day-one impact of CECL over a three-year period. In March 2020, the FRB and other U.S. banking agencies issued an interim final rule that became effective on March 31, 2020 and provided an alternative option for banks to temporarily delay the impacts of CECL, relative to the incurred loss methodology for estimating the allowance for loan losses, on regulatory capital. A final rule that was largely unchanged from the March 2020 interim final rule was issued by the FRB and other U.S. banking agencies in August 2020, and became effective in September 2020. For regulatory capital purposes, these rules permitted us to delay recognizing the estimated impact of CECL on regulatory capital until after a two-year deferral period, which for us extended through December 31, 2021. Beginning on January 1, 2022, we are required to phase in 25% of the previously deferred estimated capital impact of CECL, with an additional 25% to be phased in at the beginning of each subsequent year until fully phased in by the first quarter of 2025. Under these rules, firms that adopt CECL and elect the five-year transition will calculate the estimated impact of CECL on regulatory capital as the day-one impact of adoption plus 25% of the subsequent change in allowance during the two-year deferral period, which according to the final rule approximates the impact of CECL relative to an incurred loss model. We adopted this transition option during the first quarter of 2020, and in the regulatory capital impacts of CECL from January 1, 2022, to January 1, 2025, based on this five-year transition period.
Reconciliation to GAAP
Adjusted Earnings per Share
| Numerator ( millions) | 1Q 25 | 4Q 24 | 1Q 24 | ||||||
|---|---|---|---|---|---|---|---|---|---|
| GAAP Net Income (Loss) Attributable to Common Shareholders | $ | (253 | ) | $ | 81 | **** | $ | 115 | **** |
| Discontinued Operations, Net of Tax | — | 1 | — | ||||||
| Core OID | 16 | 15 | 13 | ||||||
| Repositioning and Other | 503 | 140 | 10 | ||||||
| Change in the Fair Value of Equity Securities | 13 | 47 | (11 | ) | |||||
| Tax on: Core OID, Repo, & Change in Fair Value of Equity Securities (21%<br>tax rate) | (99 | ) | (38 | ) | (3 | ) | |||
| Significant Discrete Tax Items | — | — | — | ||||||
| Core Net Income Attributable to Common Shareholders | $ | 179 | **** | $ | 246 | **** | $ | 125 | **** |
| Denominator | |||||||||
| Weighted-Average Common Shares Outstanding <br>(basic or diluted as applicable, thousands) | **** | 309,006 | **** | **** | 311,277 | **** | **** | 308,421 | **** |
| Adjusted EPS | $ | 0.58 | **** | $ | 0.78 | **** | $ | 0.41 | **** |
All values are in US Dollars.
Core Return on Tangible Common Equity (ROTCE)
| Numerator ( millions) | 1Q 25 | 4Q 24 | 1Q 24 | ||||||
|---|---|---|---|---|---|---|---|---|---|
| GAAP Net Income (Loss) Attributable to Common Shareholders | $ | (253 | ) | $ | 81 | **** | $ | 115 | **** |
| Discontinued Operations, Net of Tax | — | 1 | — | ||||||
| Core OID | 16 | 15 | 13 | ||||||
| Repositioning and Other | 503 | 140 | 10 | ||||||
| Change in Fair Value of Equity Securities | 13 | 47 | (11 | ) | |||||
| Tax on: Core OID, Repo, & Change in Fair Value of Equity Securities (21%<br>tax rate) | (99 | ) | (38 | ) | (3 | ) | |||
| Significant Discrete Tax Items | — | — | — | ||||||
| Core Net Income Attributable to Common Shareholders | $ | 179 | **** | $ | 246 | **** | $ | 125 | **** |
| Denominator (Average, millions) | |||||||||
| GAAP Shareholder’s Equity | $ | 14,068 | **** | $ | 14,159 | **** | $ | 13,642 | **** |
| Preferred Equity | (2,324 | ) | (2,324 | ) | (2,324 | ) | |||
| GAAP Common Shareholder’s Equity | $ | 11,744 | **** | **** | 11,835 | **** | $ | 11,318 | **** |
| Goodwill & Identifiable Intangibles, Net of Deferred Tax Liabilities (DTLs) | (449 | ) | (655 | ) | (723 | ) | |||
| Tangible Common Equity | $ | 11,295 | $ | 11,180 | $ | 10,594 | |||
| Core OID Balance | (729 | ) | (744 | ) | (786 | ) | |||
| Net Deferred Tax Asset (DTA) | (1,923 | ) | (1,713 | ) | (1,325 | ) | |||
| Normalized Common Equity | $ | 8,644 | **** | $ | 8,723 | **** | $ | 8,482 | **** |
| Core Return on Tangible Common Equity | **** | 8.3 | % | **** | 11.3 | % | **** | 5.9 | % |
All values are in US Dollars.
6
Adjusted Tangible Book Value per Share
| Numerator ( millions) | 1Q 25 | 4Q 24 | 1Q 24 | ||||||
|---|---|---|---|---|---|---|---|---|---|
| GAAP Shareholder’s Equity | $ | 14,232 | **** | $ | 13,903 | **** | $ | 13,580 | **** |
| Preferred Equity | (2,324 | ) | (2,324 | ) | (2,324 | ) | |||
| GAAP Common Shareholder’s Equity | $ | 11,908 | **** | $ | 11,579 | **** | $ | 11,256 | **** |
| Goodwill and Identifiable Intangible Assets, Net of DTLs | (295 | ) | (603 | ) | (720 | ) | |||
| Tangible Common Equity | 11,613 | 10,976 | 10,536 | ||||||
| Tax-effected Core OID Balance (21% tax rate) | (570 | ) | (582 | ) | (616 | ) | |||
| Adjusted Tangible Book Value | $ | 11,044 | **** | $ | 10,395 | **** | $ | 9,920 | **** |
| Denominator | |||||||||
| Issued Shares Outstanding (period-end,<br>thousands) | **** | 307,152 | **** | **** | 305,388 | **** | **** | 303,978 | **** |
| Metric | |||||||||
| GAAP Common Shareholder’s Equity per Share | $ | 38.77 | **** | $ | 37.92 | **** | $ | 37.03 | **** |
| Goodwill and Identifiable Intangible Assets, Net of DTLs per Share | (0.96 | ) | (1.97 | ) | (2.37 | ) | |||
| Tangible Common Equity per Share | $ | 37.81 | $ | 35.94 | $ | 34.66 | |||
| Tax-effected Core OID Balance (21% tax rate) per<br>Share | (1.85 | ) | (1.90 | ) | (2.03 | ) | |||
| Adjusted Tangible Book Value per Share | $ | 35.95 | **** | $ | 34.04 | **** | $ | 32.63 | **** |
All values are in US Dollars.
Adjusted EfficiencyRatio
| Numerator ( millions) | 1Q 25 | 4Q 24 | 1Q 24 | ||||||
|---|---|---|---|---|---|---|---|---|---|
| GAAP Noninterest Expense | $ | 1,634 | $ | 1,360 | $ | 1,308 | |||
| Insurance Expense | (392 | ) | (343 | ) | (340 | ) | |||
| Repositioning and Other | (314 | ) | (140 | ) | (10 | ) | |||
| Adjusted Noninterest Expense for Adjusted Efficiency Ratio | $ | 928 | **** | $ | 877 | **** | $ | 958 | **** |
| Denominator ( millions) | |||||||||
| Total Net Revenue | $ | 1,541 | **** | $ | 2,026 | **** | $ | 1,998 | **** |
| Core OID | 16 | 15 | 13 | ||||||
| Repositioning Items | 495 | — | — | ||||||
| Insurance Revenue | (394 | ) | (379 | ) | (410 | ) | |||
| Adjusted Net Revenue for Adjusted Efficiency Ratio | $ | 1,658 | **** | $ | 1,662 | **** | $ | 1,601 | **** |
| Adjusted Efficiency Ratio | **** | 56.0 | % | **** | 52.8 | % | **** | 59.8 | % |
All values are in US Dollars.
Original IssueDiscount Amortization Expense ($ millions)
| 1Q 25 | 4Q 24 | 1Q 24 | |||||||
|---|---|---|---|---|---|---|---|---|---|
| GAAP Original Issue Discount Amortization Expense | $ | 18 | **** | $ | 17 | **** | $ | 17 | **** |
| Other OID | (3 | ) | (3 | ) | (3 | ) | |||
| Core Original Issue Discount (Core OID) Amortization Expense | $ | 16 | **** | $ | 15 | **** | $ | 13 | **** |
Outstanding OriginalIssue Discount Balance ($ millions)
| 1Q 25 | 4Q 24 | 1Q 24 | |||||||
|---|---|---|---|---|---|---|---|---|---|
| GAAP Outstanding Original Issue Discount Balance | $ | (745 | ) | $ | (763 | ) | $ | (815 | ) |
| Other Outstanding OID Balance | 24 | 27 | 35 | ||||||
| Core Outstanding Original Issue Discount Balance (Core OID Balance) | $ | (721 | ) | $ | (736 | ) | $ | (779 | ) |
7
| ( millions) | |||||||||
|---|---|---|---|---|---|---|---|---|---|
| Net Financing Revenue (Excluding Core OID) | 1Q 25 | 4Q 24 | 1Q 24 | ||||||
| GAAP Net Financing Revenue | $ | 1,478 | **** | $ | 1,509 | **** | $ | 1,468 | **** |
| Core OID | 16 | 15 | 13 | ||||||
| Net Financing Revenue (Excluding Core OID) | $ | 1,494 | **** | $ | 1,524 | **** | $ | 1,481 | **** |
| Adjusted Other Revenue | 1Q 25 | 4Q 24 | 1Q 24 | ||||||
| GAAP Other Revenue | $ | 63 | **** | $ | 517 | **** | $ | 530 | **** |
| Accelerated OID & Repositioning Items | 495 | — | — | ||||||
| Change in Fair Value of Equity Securities | 13 | 47 | (11 | ) | |||||
| Adjusted Other Revenue | $ | 571 | **** | $ | 564 | **** | $ | 519 | **** |
| Adjusted Total Net Revenue | 1Q 25 | 4Q 24 | 1Q 24 | ||||||
| Adjusted Total Net Revenue | $ | 2,065 | **** | $ | 2,088 | **** | $ | 2,001 | **** |
| Adjusted Provision for Credit Losses | 1Q 25 | 4Q 24 | 1Q 24 | ||||||
| GAAP Provision for Credit Losses | $ | 191 | **** | $ | 557 | **** | $ | 507 | **** |
| Repositioning | 306 | — | — | ||||||
| Adjusted Provision for Credit Losses | $ | 497 | **** | $ | 557 | **** | $ | 507 | **** |
| Adjusted Noninterest Expense | 1Q 25 | 4Q 24 | 1Q 24 | ||||||
| GAAP Noninterest Expense | $ | 1,634 | **** | $ | 1,360 | **** | $ | 1,308 | **** |
| Repositioning | (314 | ) | (140 | ) | (10 | ) | |||
| Adjusted Noninterest Expense | $ | 1,320 | **** | $ | 1,220 | **** | $ | 1,298 | **** |
| Core Pre-Tax<br>Income | 1Q 25 | 4Q 24 | 1Q 24 | ||||||
| Pre-Tax Income (Loss) | $ | (284 | ) | $ | 109 | **** | $ | 183 | **** |
| Core Pre-Tax Income | $ | 247 | **** | $ | 310 | **** | $ | 195 | **** |
All values are in US Dollars.
Insurance Non-GAAP Walk to Core Pre-Tax Income
| ($ millions) | 1Q 2025 | 1Q 2024 | |||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| GAAP | Change in the<br>fair value of<br>equity<br>securities | Non-GAAP^1^ | GAAP | Change in the<br>fair value of<br>equity<br>securities | Non-GAAP^1^ | ||||||||
| Insurance | |||||||||||||
| Premiums, Service Revenue Earned and Other | $ | 368 | $ | — | $ | 368 | $ | 349 | $ | — | **** | $ | 349 |
| Losses and Loss Adjustment Expenses | 161 | — | 161 | 112 | — | 112 | |||||||
| Acquisition and Underwriting Expenses | 231 | — | 231 | 228 | — | 228 | |||||||
| Investment Income and Other | 26 | 15 | 41 | 61 | (17 | ) | 44 | ||||||
| Pre-Tax Income from Continuing Operations | $ | 2 | $ | 15 | $ | 17 | $ | 70 | $ | (17 | ) | $ | 53 |
| ^1^ | Non-GAAP line items walk to Core<br>Pre-Tax Income, a non-GAAP financial measure that adjusts Pre-Tax Income. | ||||||||||||
| --- | --- |
8
Additional Financial Information
For additional financial information, the first quarter 2025 earnings presentation and financial supplement are available in the Events & Presentations section of Ally’s Investor Relations Website at http://www.ally.com/about/investor/events-presentations/.
About Ally Financial Inc.
Ally Financial Inc. (NYSE: ALLY) is a financial services company with the nation’s largest all-digital bank and an industry-leading auto financing business, driven by a mission to “Do It Right” and be a relentless ally for customers and communities. The company serves customers with deposits and securities brokerage and investment advisory services as well as auto financing and insurance offerings. The company also includes a seasoned corporate finance business that offers capital for equity sponsors and middle-market companies. For more information, please visit www.ally.com.
For more information and disclosures about Ally, visit https://www.ally.com/#disclosures.
For further images and news on Ally, please visit http://media.ally.com.
Forward-Looking Statements
This earnings release 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 release or related communication.
This earnings release 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 statements about the outlook for financial and operating metrics and performance and future capital allocation and actions. 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. In particular, forward-looking statements about Ally’s outlook, including expectations regarding net interest margin, adjusted other revenue, net-charge offs, non-interest expenses and average earning assets, and other forward-looking statements are based on our current expectations and are subject to various important factors that could cause actual results to differ materially, including general economic conditions, expectations regarding interest rates and inflation, monetary and fiscal policies in the United States and other jurisdictions, the composition of our balance sheet, including with respect to our loan and securities portfolios, the impact of our strategic initiatives, including recent transactions involving our Credit Card and Mortgage businesses, demand for new and used vehicles, demand for auto loans and leases and the impact of escalating tariffs and other trade policies on us, our customers and our strategic partners, and the economic impacts, volatility and uncertainty resulting therefrom.
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 above and in our Annual Report on Form 10-K for the year ended December 31, 2024, 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 earnings release and related communications contain specifically identified non-GAAP financial measures, which supplement the results that are reported according to U.S. 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 release.
Unless the context otherwise requires, the following definitions apply. The term “loans” means the following consumer and commercial products associated with our direct and indirect financing activities: loans, retail installment sales contracts, lines of credit, and other financing products excluding operating leases. The term “operating leases” means consumer- and commercial-vehicle lease agreements where Ally is the lessor and the lessee is generally not obligated to acquire ownership of the vehicle at lease-end or compensate Ally for the vehicle’s residual value. The terms “lend,” “finance,” and “originate” mean our direct extension or origination of loans, our purchase or acquisition of loans, or our purchase of operating leases, as applicable. The term “consumer” means all consumer products associated with our loan and operating-lease activities and all commercial retail installment sales contracts. The term “commercial” means all commercial products associated with our loan activities, other than commercial retail installment sales contracts. The term “partnerships” means business arrangements rather than partnerships as defined by law.
| Contacts: | |
|---|---|
| Sean Leary | Peter Gilchrist |
| Ally Investor Relations | Ally Communications (Media) |
| 704-444-4830 | 704-644-6299 |
| sean.leary@ally.com | peter.gilchrist@ally.com |
9
EX-99.2
Ally Financial Inc. April 17, 2025 1Q 2025 Earnings Review Exhibit 99.2
Forward-Looking Statements and Additional Information This presentation 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 presentation 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 statements about the outlook for financial and operating metrics and performance and future capital allocation and actions. 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. In particular, forward-looking statements about Ally’s outlook, including expectations regarding net interest margin, adjusted other revenue, net-charge offs, non-interest expenses and average earning assets, and other forward-looking statements are based on our current expectations and are subject to various important factors that could cause actual results to differ materially, including general economic conditions, expectations regarding interest rates and inflation, monetary and fiscal policies in the United States and other jurisdictions, the composition of our balance sheet, including with respect to our loan and securities portfolios, the impact of our strategic initiatives, including recent transactions involving our Credit Card and Mortgage businesses, demand for new and used vehicles, demand for auto loans and leases and the impact of escalating tariffs and other trade policies on us, our customers and our strategic partners, and the economic impacts, volatility and uncertainty resulting therefrom. 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 above and in our Annual Report on Form 10-K for the year ended December 31, 2024, 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 presentation and related communications contain specifically identified non-GAAP financial measures, which supplement the results that are reported according to U.S. 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. Unless the context otherwise requires, the following definitions apply. The term “loans” means the following consumer and commercial products associated with our direct and indirect financing activities: loans, retail installment sales contracts, lines of credit, and other financing products excluding operating leases. The term “operating leases” means consumer- and commercial-vehicle lease agreements where Ally is the lessor and the lessee is generally not obligated to acquire ownership of the vehicle at lease-end or compensate Ally for the vehicle’s residual value. The terms “lend,” “finance,” and “originate” mean our direct extension or origination of loans, our purchase or acquisition of loans, or our purchase of operating leases, as applicable. The term “consumer” means all consumer products associated with our loan and operating-lease activities and all commercial retail installment sales contracts. The term “commercial” means all commercial products associated with our loan activities, other than commercial retail installment sales contracts. The term “partnerships” means business arrangements rather than partnerships as defined by law.
GAAP and Core Results: Quarterly The following are non-GAAP financial measures which Ally believes are important to the reader of the Consolidated Financial Statements, but which are supplemental to and not a substitute for GAAP measures: Accelerated issuance expense (Accelerated OID), Adjusted earnings per share (Adjusted EPS), Adjusted efficiency ratio, Adjusted noninterest expense, Adjusted other revenue, Adjusted provision for credit losses, Adjusted tangible book value per share (Adjusted TBVPS), Adjusted total net revenue, Core net income attributable to common shareholders, Core original issue discount (Core OID) amortization expense, Core outstanding original issue discount balance (Core OID balance), Core pre-tax income, Core return on tangible common equity (Core ROTCE), Investment income and other (adjusted), Net financing revenue (excluding Core OID), Net interest margin (excluding Core OID), and Tangible Common Equity. These measures are used by management, and we believe are useful to investors in assessing the company’s operating performance and capital. Refer to the Notes on Non-GAAP Financial Measures, Notes on Other Financial Measures, Additional Notes, GAAP to Core Results and Non-GAAP Reconciliations later in this document. Non-GAAP financial measure. See pages 20 – 22 for definitions.
Quarterly Highlights Financial Highlights Key Messages Non-GAAP financial measure. See pages 20 – 22 for definitions. Calculated using a Non-GAAP financial measure. See pages 20 – 22 for definitions. Power of focus on core franchises with relevant scale and differentiation Do it Right culture is a pillar of our success, built on our ‘LEAD’ core values Notable Items Reclassified $2.4B Card assets to ‘held-for-sale’ as of 3/31; impact of reserve release, goodwill impairment, and deal expenses excluded from adjusted metrics – sale closed successfully on 4/1, generated 40bps of CET1 in total Sold $4.1B of low yielding securities and reinvested at current market yields | $495M pre-tax loss excluded from adjusted metrics
| (23bps) of CET1 | Interest rate risk trade focused on reducing portfolio duration and AOCI volatility A Brand that Matters which meaningfully connects with consumers $0.58 Adjusted EPS(1) 8.3% Core ROTCE(1) $2.1B Adj. Net Revenue(1) 9.5% CET1 $247M Core Pre-tax(1) ($0.82) GAAP EPS (8.6%) Return on Equity $1.5B GAAP Net Revenue 3.35% NIM ex. OID(2) ($284M) GAAP Pre-tax Confidence in ability to achieve mid-teens ROTCE target
9% YoY Written Premium Growth 2.2 U.S. F&I Products Sold per Dealer 6K+ U.S. & Canadian Dealer Relationships Largest, all-digital, direct U.S. bank Market Leading Franchises Focusing our resources and capital on core businesses to drive shareholder value Retail Deposits Retail Deposit Balances | Primary Deposit Customers $70B $146B See page 24 for footnotes. 1Q’17 1Q’18 1Q’25 1Q‘19 1Q‘20 1Q‘21 1Q‘22 1Q‘23 1Q’24 1.3M 3.3M Corporate Finance Dealer Financial Services Auto Finance Insurance 3.8M Consumer Applications $10.2B Consumer Originations 44% Retail S-Tier Originations 9.8% Retail Auto Originated Yield(1) 1Q’22 1Q’23 1Q’24 1Q’25 Consumer Auto Applications 30% YoY Dealer Inventory Insurance Growth 3.2M 3.3M 3.8M 3.8M 1Q’22 1Q’23 1Q’24 1Q’25 Written Premiums $265 $307 $354 $385 ($ millions) 100% % of Portfolio First-Lien 10% Gross Revenue Yield(2) 1% % Loans Non-accrual 23% Average ROE 2014-2024 1Q’22 1Q’23 1Q’24 1Q’25 Return on Equity 28% 27% 34% 25% 25-year Cycle Tested Business 60% Cumulative Liquid Beta (through 1Q’25) 92% % FDIC Insured(3) $146B Retail Deposit Balances $13B Deposits held by Invest Customers $55K $44K Average Customer Balance 89% % Deposit Funded All-time Record
1Q 2025 Financial Results Non-GAAP financial measure. See pages 20 – 22 for definitions. Contains Non-GAAP financial measures and other financial measures. See page 23 for definitions. 1Q’25 repositioning items related to securities sale and Credit Card transaction; 4Q’24 repositioning items related to Credit Card transaction and headcount actions; 1Q’24 repositioning items related to Ally Lending transaction. Securities Repositioning Card Reserve Release $305 Card Goodwill Impairment; $9 Deal Expenses
Mortgage loans in run-off at the Corporate and Other segment. Unsecured lending from point-of-sale financing. Moved to assets of operations held-for-sale (HFS) on 12/31/23; transaction closed 3/1/24. Credit card assets moved to assets of operations held-for sale (HFS) on 3/31/25; transaction closed 4/1/25. Includes interest expense related to margin received on derivative contracts. Excluding this expense, annualized yields were 4.37% for 1Q’25, 4.68% for 4Q’24, and 5.35% for 1Q’24. Includes Community Reinvestment Act and other held-for-sale (HFS) loans. Includes retail, brokered, and other deposits (inclusive of sweep deposits, mortgage escrow and other deposits). Includes FHLB borrowings and Repurchase Agreements. Calculated using a Non-GAAP financial measure. See pages 20 - 22 for definitions. Balance Sheet and Net Interest Margin
Capital Ratios and Risk-Weighted Assets ($ billions) Adjusted Tangible Book Value per Share(1) Note: For more details on the final rules to address the impact of CECL on regulatory capital by allowing BHCs and banks, including Ally, to delay and subsequently phase-in its impact, see page 23. Contains a Non-GAAP financial measure. See pages 20 - 22 for definitions. Some prior period OCI impacts are not material to Adjusted Tangible Book Value per Share and therefore not shown. Total Capital Ratio Tier 1 Ratio CET1 Ratio Risk Weighted Assets Capital End of Period Shares Outstanding 480M 482M 483M 462M 433M 400M 373M 372M 327M 301M 304M AOCI Impact(2) Adjusted TBV/Share ex. AOCI(1) Adjusted TBV/Share(1) 1Q‘25 CET1 ratio of 9.5% and TCE / TA ratio of 6.0%(1) $3.7B of CET1 capital above 7.1% Regulatory Min. + SCB Sale of Credit Card generated 40bps of CET1 1Q capital ratios include 20bps CET1 following transfer to HFS Remaining 20bps of CET1 generated when sale closed on 4/1; 3/31 CET1 pro forma CET1 9.7% | 7.5% with AOCI fully phased-in $4.1B securities repositioning consumed 23bps CET1 Transactions do not impact AOCI fully phased-in CET1 ratio ~$350M annual AOCI accretion post-repositioning (~$400M prior) Final CECL phase-in consumed 19bps CET1 Announced 2Q’25 common dividend of $0.30 per share 307M 6.7% 6.8% 7.5% 7.1% Fully Phased-in CET1 7.3% Note: 1Q’25 capital ratios exclude additional 20bps of CET1 from Card sale that closed on 4/1
Consolidated Net Charge-Offs (NCOs)(1) See page 23 for definition. Retail Auto Net Charge-Offs (NCOs) Annualized NCO Rate 60+ DPD Delinquency Rate(1) 30+ DPD Delinquency Rate(1) NCOs ($M) Asset Quality: Key Metrics Retail Auto Delinquencies Retail Auto - EOP 30+ Day DQs by Vintage(1) 2024 | 2023 | 2022 90+ DPD Delinquency Rate +64bps YoY +73bps YoY +39bps YoY (3bps) YoY (9bps) YoY Note: Days Past Due is abbreviated as (“DPD”) 30+ DPD Delinquency Rate (All-in) (1) Includes accruing contracts only. +68bps YoY +74bps YoY +52bps YoY +14bps YoY +11bps YoY NCOs ($M) Annualized NCO Rate +59bps YoY +49bps YoY +39bps YoY +13bps YoY (15bps) YoY MO. 15 Months on Book MO. 27 (1) Includes accruing contracts only.
Consolidated Coverage ($ billions) Retail Auto Coverage ($ billions) Note: Coverage rate calculations exclude fair value adjustment for loans in hedge accounting relationships. Note: Coverage rate calculations exclude fair value adjustment for loans in hedge accounting relationships. Reserve (%) Reserve ($) Reserve (%) Reserve ($) Asset Quality: Coverage and Reserves Consolidated coverage rate of 2.55%, down 18bps QoQ primarily driven by Card reserve release Consolidated coverage rate expected to modestly increase over time from asset remixing (↑ Retail Auto & CF; ↓ Mortgage) Retail auto coverage rate of 3.75%, down 3bps QoQ driven by vintage portfolio trends and hurricane reserve release, partially offset by elevated levels of delinquency and macroeconomic uncertainty Consolidated and portfolio-level reserves are balanced; U.S. macroeconomic outlook and consumer health remain watch items + Vintage trends + Flow to loss rates + Hurricane release - Elevated delinquency - Macroeconomic uncertainty (3bps) Retail Auto Coverage Card worth (19bps) coverage; $319M of reserve release
Retail Auto Yield Trend Auto pre-tax income of $375 million Pre-tax income down YoY and QoQ, primarily driven by lower lease gains and lower commercial assets Provision of $434 million reflects continued improvement in credit performance as vintage rollover dynamics take hold Retail portfolio yield ex. hedge of 9.11%, up 2bps QoQ impacted by seasonally higher liquidations Originated yield of 9.80%, in-line with expectations due to mix normalization and seasonal shift in applications; S-tier originations of 44% vs. 49% in prior quarter Vehicle termination mix suppressed lease gains in 1Q Expect less pressure throughout year driven by lower termination volume and lower residual values at the time of origination on future maturities Lease Portfolio Trends Lessee & Dealer Buyout % Remarketing Gains (Losses) ($ millions) Average Gain (Loss) / Unit Auto Finance $1,431 $1,420 $771 $145 ($863) Estimated Originated Yield(2) Portfolio Yield ex. hedge S-Tier Origination Mix Retail Weighted Average FICO 704 712 710 720 714 9.07% 9.19% 9.29% 9.27% 9.21% Hedge Impact See page 24 for footnotes. 2 models accounted for over $20M of remarketing losses in the quarter
Non-GAAP financial measure. See pages 20 - 22 for definitions. See page 24 for additional footnotes. Insurance pre-tax income of $2 million and core pre-tax income of $17 million(1) $368 million of earned premiums, up $19 million YoY Insurance losses of $161 million, up $49 million YoY driven by historic weather and portfolio growth 1Q record net weather losses of $58 million, up $41M driven by historic weather events Reinsurance partially mitigating overall weather loss exposure Written premiums of $385 million, up 9% YoY Sustained commitment to all-in dealer value with relationship-focused products, services, and training Continued momentum in dealer inventory relationships driving $37 million increase in P&C written premiums YoY Insurance Insurance Net Weather Losses ($ millions) Written Premiums ($ millions) P&C Premium F&I Premium Note: F&I: Finance and insurance products and other. P&C: Property and casualty insurance products. Over 80% of losses attributed to historic 3-day severe weather events in the quarter $13M avg 1Q net weather losses since IPO
HFI Balances by Lending Vertical Corporate Finance pre-tax income of $76 million Net Financing Revenue of $104 million, down QoQ, driven by elevated amortized fees in the prior period Provision of $14 million, up $19 million QoQ, driven by asset growth 1Q ROE of 25%; continues to generate accretive returns Held-for-investment loans of $10.9B Well-diversified, high-quality, 100% first-lien, floating rate loans Average loss rate of 0.27% from 2014-2024 Disciplined credit and operational risk management Criticized assets and non-accrual loans of 12% and 1%, respectively (near historically low levels) No new non-performing loans in the quarter Corporate Finance Non-GAAP financial measure. See pages 20 - 22 for definitions. See page 24 for additional footnotes. Sponsor Finance Private Credit Finance Specialty Finance
2025 Financial Outlook Non-GAAP financial measures. See pages 20 - 22 for definitions. Assumes statutory U.S. Federal tax rate of 21%. Net Interest Margin (ex. OID)(1) Retail Auto NCO Average Earning Assets Tax Rate(2) Adjusted Noninterest Expense(1) Adjusted Other Revenue(1) Consolidated NCO 2025 Outlook 3.40% - 3.50% 2.00% - 2.25% Flat YoY 22% - 23% Flat YoY Flat YoY 1.35% - 1.50% No change versus prior guidance
Supplemental
Supplemental Results By Segment Non-GAAP financial measure. See pages 20 - 22 for definitions. See page 24 for additional footnotes.
Retail CD Maturity Summary (as of 3/31/2025) Corporate and Other includes the impacts of Ally Invest, Mortgage, Credit Card, and in 1Q’24, Ally Lending Pre-tax loss of $737 million and Core pre-tax loss of $221 million(1) Other revenue down YoY, largely driven by losses associated with the securities repositioning transactions Provision expense lower YoY, largely driven by reserve releases associated with the sale of Credit Card Noninterest expense higher YoY, driven by goodwill impairment associated with the sale of Credit Card Total assets of $61.2 billion, up $2.3 billion YoY Supplemental Corporate and Other Non-GAAP financial measure. See pages 20 - 22 for definitions. See page 25 for additional footnotes. Maturity Weighted Average Rate $12B 1Q 2025 $11B 2Q 2025 $8B 3Q 2025 $7B 4Q 2025 4.8% 4.6% 4.3% 4.0% $38B of 2025 CD maturities Ally Financial Rating Details Note: Ratings as of 3/31/2025. Our borrowing costs & access to the capital markets could be negatively impacted if our credit ratings are downgraded or otherwise fail to meet investor expectations or demands.
Funding Composition Funding and Liquidity Total Available Liquidity Available Liquidity vs. Uninsured Deposits 5.8x 5.7x Loan to Deposit Ratio(1) 95% 97% 96% Cash and Equivalents FHLB Unused Pledged Borrowing Capacity FRB Discount Window Pledged Capacity Unencumbered Highly Liquid Securities Unsecured Debt FHLB / Other Secured Debt Total Deposits ($ billions) 6.1x Total loans and leases divided by total deposits. 95% 5.9x (End of Period) Core funded with stable deposits and strong liquidity position 95% 5.7x Supplemental
Supplemental Net financing revenue impacts reflect a rolling 12-month view. See page 23 for additional details. Gradual changes in interest rates are recognized over 12 months. ($ millions) Interest Rate Risk Note: Pay-Fixed rates are expressed as day and balance-weighted averages.
Supplemental Accelerated issuance expense (Accelerated OID) is the recognition of issuance expenses related to calls of redeemable debt. 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 attributable to common shareholders is adjusted for the following items: (1) 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, (2) adds back the tax-effected non-cash Core OID, (3) adjusts for tax-effected repositioning and other which are primarily related to the extinguishment of high-cost legacy debt, strategic activities and significant other one-time items, (4) change in fair value of equity securities, (5) excludes significant discrete tax items that do not relate to the operating performance of the core businesses, and adjusts for preferred stock capital actions that have been taken by the company to normalize its capital structure, as applicable for respective periods. See page 26 for calculation methodology and details. 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. See page 29 for calculation details. In the numerator of Adjusted efficiency ratio, total noninterest expense is adjusted for Rep and warrant expense, Insurance segment expense, and repositioning and other which are primarily related to the extinguishment of high-cost legacy debt, strategic activities, restructuring and significant other one-time items, as applicable for respective periods. In the denominator, total net revenue is adjusted for Core OID, Insurance segment revenue, and repositioning and other which are primarily related to the extinguishment of high-cost legacy debt, strategic activities, restructuring and significant other one-time items, as applicable for respective periods. See page 12 for the combined ratio for the Insurance segment which management uses as a primary measure of underwriting profitability for the Insurance segment. Adjusted noninterest expense is a non-GAAP financial measure that adjusts GAAP noninterest expense for repositioning items. Management believes adjusted noninterest expense is a helpful financial metric because it enables the reader to better understand the business' expenses excluding nonrecurring items. See page 30 for calculation methodology and details. Adjusted other revenue is a non-GAAP financial measure that adjusts GAAP other revenue for OID expenses, repositioning, and change in fair value of equity securities. Management believes adjusted other revenue is a helpful financial metric because it enables the reader to better understand the business' ability to generate other revenue. See page 30 for calculation methodology and details. Adjusted provision for credit losses is a non-GAAP financial measure that adjusts GAAP provision for credit losses for repositioning items. Management believes adjusted provision for credit losses is a helpful financial metric because it enables the reader to better understand the business’ expenses excluding nonrecurring items. See page 30 for calculation methodology and details. The following are non-GAAP financial measures which Ally believes are important to the reader of the Consolidated Financial Statements, but which are supplemental to and not a substitute for GAAP measures: Accelerated issuance expense (Accelerated OID), Adjusted earnings per share (Adjusted EPS), Adjusted efficiency ratio, Adjusted noninterest expense, Adjusted other revenue, Adjusted provision for Credit Losses, Adjusted tangible book value per share (Adjusted TBVPS), Adjusted total net revenue, Core net income attributable to common shareholders, Core original issue discount (Core OID) amortization expense, Core outstanding original issue discount balance (Core OID balance), Core pre-tax income, Core return on tangible common equity (Core ROTCE), Investment income and other (adjusted), Net financing revenue (excluding Core OID), Net interest margin (excluding Core OID), and Tangible Common Equity. These measures are used by management, and we believe are useful to investors in assessing the company’s operating performance and capital. For calculation methodology, refer to the Reconciliation to GAAP later in this document. Notes on Non-GAAP Financial Measures
Adjusted tangible book value per share (Adjusted TBVPS) is a non-GAAP financial measure that reflects the book value of equity attributable to shareholders even if Core OID balance 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: (1) goodwill and identifiable intangibles, net of DTLs and (2) tax-effected Core OID balance to reduce tangible common equity in the event the corresponding discounted bonds are redeemed/tendered. Note: In December 2017, tax-effected Core OID balance was adjusted from a statutory U.S. Federal tax rate of 35% to 21% (“rate”) as a result of changes to U.S. tax law. The adjustment conservatively increased the tax-effected Core OID balance and consequently reduced Adjusted TBVPS as any acceleration of the non-cash charge in future periods would flow through the financial statements at a 21% rate versus a previously modeled 35% rate. See page 28 for calculation methodology and details. Adjusted total net revenue is a non-GAAP financial measure that management believes is helpful for readers to understand the ongoing ability of the company to generate revenue. For purposes of this calculation, GAAP net financing revenue is adjusted by excluding Core OID to calculate net financing revenue ex. core OID. GAAP other revenue is adjusted for OID expenses, repositioning, and change in fair value of equity securities to calculate adjusted other revenue. Adjusted total net revenue is calculated by adding net financing revenue ex. core OID to adjusted other revenue. See page 30 for calculation methodology and details. Core net income attributable to common shareholders 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 attributable to common shareholders adjusts GAAP net income attributable to common shareholders for discontinued operations net of tax, tax-effected Core OID expense, tax-effected repositioning and other primarily related to the extinguishment of high-cost legacy debt and strategic activities and significant other one-time items, preferred stock capital actions, significant discrete tax items and tax-effected changes in equity investments measured at fair value, as applicable for respective periods. See pages 26 – 27 for calculation methodology and details. Core original issue discount (Core OID) amortization expense is a non-GAAP financial measure for OID and is believed by management to help the reader better understand the activity removed from: Core pre-tax income (loss), Core net income (loss) attributable to common shareholders, Adjusted EPS, Core ROTCE, Adjusted efficiency ratio, Adjusted total net revenue, and Net financing revenue (excluding Core OID). Core OID is primarily related to bond exchange OID which excludes international operations and future issuances. Core OID for all periods shown is applied to the pre-tax income of the Corporate and Other segment. See page 30 for calculation methodology and details. Core outstanding original issue discount balance (Core OID balance) is a non-GAAP financial measure for outstanding OID and is believed by management to help the reader better understand the balance removed from Core ROTCE and Adjusted TBVPS. Core OID balance is primarily related to bond exchange OID which excludes international operations and future issuances. See page 30 for calculation methodology and details. Core pre-tax income is a non-GAAP financial measure that adjusts pre-tax income from continuing operations by excluding (1) Core OID, and (2) change in fair value of equity securities (change in fair value of equity securities impacts the Insurance and Corporate Finance segments), and (3) Repositioning and other which are primarily related to the extinguishment of high-cost legacy debt, strategic activities and significant other one-time items, as applicable for respective periods or businesses. 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. See page 16 for calculation methodology and details. Supplemental Notes on Non-GAAP Financial Measures
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. For purposes of this calculation, tangible common equity is adjusted for Core OID balance and net DTA. Ally’s Core net income attributable to common shareholders for purposes of calculating Core ROTCE is based on the actual effective tax rate for the period adjusted for significant discrete tax items including tax reserve releases, which aligns with the methodology used in calculating adjusted earnings per share. See page 27 or calculation details. In the numerator of Core ROTCE, GAAP net income attributable to common shareholders is adjusted for discontinued operations net of tax, tax-effected Core OID, tax-effected repositioning and other which are primarily related to the extinguishment of high-cost legacy debt, strategic activities and significant other one-time items, change in fair value of equity securities, significant discrete tax items, and preferred stock capital actions, as applicable for respective periods. In the denominator, GAAP shareholder’s equity is adjusted for goodwill and identifiable intangibles net of DTL, Core OID balance, and net DTA. Investment income and other (adjusted) is a non-GAAP financial measure that adjusts GAAP investment income and other for repositioning, and the change in fair value of equity securities. Management believes investment income and other (adjusted) is a helpful financial metric because it enables the reader to better understand the business' ability to generate investment income. Net financing revenue excluding core OID is calculated using a non-GAAP measure that adjusts net financing revenue by excluding Core OID. The Core OID balance is primarily related to bond exchange OID which excludes international operations and future issuances. Management believes net financing revenue ex. Core OID is a helpful financial metric because it enables the reader to better understand the business' ability to generate revenue. See page 30 for calculation methodology and details. Net interest margin excluding core OID is calculated using a non-GAAP measure that adjusts net interest margin by excluding Core OID. The Core OID balance is primarily related to bond exchange OID which excludes international operations and future issuances. Management believes net interest margin ex. Core OID is a helpful financial metric because it enables the reader to better understand the business' profitability and margins. See page 7 for calculation methodology and details. Tangible Common Equity is a non-GAAP financial measure that is defined 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. Ally believes that tangible common equity is important because we believe readers 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. For purposes of calculating Core return on tangible common equity (Core ROTCE), tangible common equity is further adjusted for Core OID balance and net deferred tax asset. See page 28 for calculation methodology and details. Supplemental Notes on Non-GAAP Financial Measures
Supplemental Change in fair value of equity securities impacts the Insurance, Corporate Finance and Corporate and Other segments. The change reflects fair value adjustments to equity securities that are reported at fair value. Management believes the change in fair value of equity securities should be removed from select financial measures because it enables the reader to better understand the business’ ongoing ability to generate revenue and income. Estimated impact of CECL on regulatory capital per final rule issued by U.S. banking agencies - In December 2018, the FRB and other U.S. banking agencies approved a final rule to address the impact of CECL on regulatory capital by allowing BHCs and banks, including Ally, the option to phase in the day-one impact of CECL over a three-year period. In March 2020, the FRB and other U.S. banking agencies issued an interim final rule that became effective on March 31, 2020 and provided an alternative option for banks to temporarily delay the impacts of CECL, relative to the incurred loss methodology for estimating the allowance for loan losses, on regulatory capital. A final rule that was largely unchanged from the March 2020 interim final rule was issued by the FRB and other U.S. banking agencies in August 2020, and became effective in September 2020. For regulatory capital purposes, these rules permitted us to delay recognizing the estimated impact of CECL on regulatory capital until after a two-year deferral period, which for us extended through December 31, 2021. Beginning on January 1, 2022, we are required to phase in 25% of the previously deferred estimated capital impact of CECL, with an additional 25% to be phased in at the beginning of each subsequent year until fully phased in by the first quarter of 2025. Under these rules, firms that adopt CECL and elect the five-year transition will calculate the estimated impact of CECL on regulatory capital as the day-one impact of adoption plus 25% of the subsequent change in allowance during the two-year deferral period, which according to the final rule approximates the impact of CECL relative to an incurred loss model. We adopted this transition option during the first quarter of 2020, and phased in the regulatory capital impacts of CECL from January 1, 2022, to January 1, 2025, based on this 5-year transition period. Estimated retail auto originated yield is a financial measure determined by calculating the estimated average annualized yield for loans originated during the period. At this time there currently is no comparable GAAP financial measure for Estimated Retail Auto Originated Yield and therefore this forecasted estimate of yield at the time of origination cannot be quantitatively reconciled to comparable GAAP information. Interest rate risk modeling – We prepare our forward-looking baseline forecasts of net financing revenue taking into consideration anticipated future business growth, asset/liability positioning, and interest rates based on the implied forward curve. The analysis is highly dependent upon a variety of assumptions including the repricing characteristics of retail deposits with both contractual and non-contractual maturities. We continually monitor industry and competitive repricing activity along with other market factors when contemplating deposit pricing actions. Please see our SEC filings for more details. Net charge-off ratios are calculated as annualized net charge-offs divided by average outstanding finance receivables and loans excluding loans measured at fair value and loans held-for-sale. Repositioning is primarily related to the extinguishment of high-cost legacy debt, strategic activities, restructuring, amounts related to nonrecurring business transactions or pending transactions, and significant other one-time items. U.S. consumer auto originations ▪ New Retail – standard and subvented rate new vehicle loans; Lease – new vehicle lease originations; Used – used vehicle loans ▪ Nonprime – originations with a FICO® score of less than 620 Notes on Other Financial Measures
Supplemental Page – 11 | Auto Finance Page – 12 | Insurance Noninterest expense includes corporate allocations of $180 million in 1Q 2025, $179 million in 4Q 2024, and $179 million in 1Q 2024. Estimated Retail Auto Originated Yield is a forward-looking financial measure. See page 23 for details. Additional Notes Page – 5 | Market Leading Franchises Acquisition and underwriting expenses includes corporate allocations of $21 million in 1Q 2025, $21 million in 4Q 2024, and $21 million in 1Q 2024. Change in fair value of equity securities impacts the Insurance segment. The change reflects fair value adjustments to equity securities that are reported at fair value. Management believes the change in fair value of equity securities should be removed from select financial measures because it enables the reader to better understand the business’ ongoing ability to generate revenue and income. Estimated Retail Auto Originated Yield is a forward-looking financial measure. See page 23 for details. Gross Revenue Yield expressed as gross interest income plus other revenue divided by average earning assets. FDIC insured percentage excludes affiliate and intercompany deposits. Page – 13 | Corporate Finance (2) Noninterest expense includes corporate allocations of $15 million in 1Q 2025, $10 million in 4Q 2024, and $15 million in 1Q 2024. (3)Change in fair value of equity securities impacts the Corporate Finance segment. The change reflects fair value adjustments to equity securities that are reported at fair value. Management believes the change in fair value of equity securities should be removed from select financial measures because it enables the reader to better understand the business’ ongoing ability to generate revenue and income. Change in fair value of equity securities impacts the Insurance, Corporate Finance and Corporate and Other segments. The change reflects fair value adjustments to equity securities that are reported at fair value. Management believes the change in fair value of equity securities should be removed from select financial measures because it enables the reader to better understand the business’ ongoing ability to generate revenue and income. Repositioning and other are primarily related to the extinguishment of high-cost legacy debt, strategic activities, restructuring, and significant other one-time items, as applicable for respective periods or businesses. Includes adjustments for non-GAAP measures Core OID expense, change in fair value of equity securities, and repositioning. Page – 16 | Results by Segment
Supplemental Page – 17 |
Corporate and Other Repositioning and other are primarily related to the extinguishment of high-cost legacy debt, strategic activities, restructuring, and significant other one-time items, as applicable for respective periods or businesses. Change in fair value of equity securities impacts the Corporate and Other segments. The change reflects fair value adjustments to equity securities that are reported at fair value. Management believes the change in fair value of equity securities should be removed from select financial measures because it enables the reader to better understand the business’ ongoing ability to generate revenue and income. HFI consumer mortgage portfolio, HFI Ally credit card portfolio in 4Q 2024 and 1Q 2024, and Ally lending in 1Q 2024. Amounts related to Credit Card; sale of Credit Card closed on 4/1/2025. Intercompany loan related to activity between Insurance and Corporate. Additional Notes
Supplemental GAAP to Core: Adjusted EPS
Supplemental GAAP to Core: Core ROTCE
Supplemental GAAP to Core: Adjusted TBVPS Note: For more details on the final rules to address the impact of CECL on regulatory capital by allowing BHCs and banks, including Ally, to delay and subsequently phase-in its impact, see page 23. Ally adopted CECL on January 1, 2020. Upon implementation of CECL Ally recognized a reduction to its opening retained earnings balance of approximately $1.0 billion, net of income tax, which reflects a pre-tax increase to the allowance for loan losses of approximately $1.3 billion. This increase is almost exclusively driven by Ally’s consumer automotive loan portfolio.
Supplemental GAAP to Core: Adjusted Efficiency Ratio
Supplemental Note: Change in fair value of equity securities impacts the Insurance, Corporate Finance and Corporate and Other segments. The change reflects fair value adjustments to equity securities that are reported at fair value. Management believes the change in fair value of equity securities should be removed from select financial measures because it enables the reader to better understand the business’ ongoing ability to generate revenue and income. Non-GAAP Reconciliations ($ millions)
EX-99.3
Exhibit 99.3
FIRST QUARTER 2025
FINANCIAL SUPPLEMENT
| ALLY FINANCIAL INC.<br><br><br>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 statements about the outlook for financial and operating metrics and performance and future capital allocation and actions. 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. In particular, forward-looking statements about Ally’s outlook, including expectations regarding net interest margin, adjusted other revenue, net-charge offs, non-interest expenses and average earning assets, and other forward-looking statements are based on our current expectations and are subject to various important factors that could cause actual results to differ materially, including general economic conditions, expectations regarding interest rates and inflation, monetary and fiscal policies in the United States and other jurisdictions, the composition of our balance sheet, including with respect to our loan and securities portfolios, the impact of our strategic initiatives, including recent transactions involving our Credit Card and Mortgage businesses, demand for new and used vehicles, demand for auto loans and leases and the impact of escalating tariffs and other trade policies on us, our customers and our strategic partners, and the economic impacts, volatility and uncertainty resulting therefrom.
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 above and in our Annual Report on Form 10-K for the year ended December 31, 2024, 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 U.S. 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 document.
Unless the context otherwise requires, the following definitions apply. The term “loans” means the following consumer and commercial products associated with our direct and indirect financing activities: loans, retail installment sales contracts, lines of credit, and other financing products excluding operating leases. The term “operating leases” means consumer- and commercial-vehicle lease agreements where Ally is the lessor and the lessee is generally not obligated to acquire ownership of the vehicle at lease-end or compensate Ally for the vehicle’s residual value. The terms “lend,” “finance,” and “originate” mean our direct extension or origination of loans, our purchase or acquisition of loans, or our purchase of operating leases, as applicable. The term “consumer” means all consumer products associated with our loan and operating-lease activities and all commercial retail installment sales contracts. The term “commercial” means all commercial products associated with our loan activities, other than commercial retail installment sales contracts. The term “partnerships” means business arrangements rather than partnerships as defined by law.
2
| ALLY FINANCIAL INC.<br><br><br>TABLE OF CONTENTS | ||
|---|---|---|
| Page(s) | ||
| --- | --- | --- |
| Consolidated Results | ||
| Consolidated Financial Highlights | 4 | |
| Consolidated Income Statement | 5 | |
| Consolidated Period-End Balance Sheet | 6 | |
| Consolidated Average Balance Sheet | 7 | |
| Segment Detail | ||
| Segment Highlights | 8 | |
| Automotive Finance | 9-10 | |
| Insurance | 11 | |
| Corporate Finance | 12 | |
| Corporate and Other | 13 | |
| Credit Related Information | 14-15 | |
| Supplemental Detail | ||
| Capital | 16 | |
| Liquidity and Deposits | 17 | |
| Net Interest Margin | 18 | |
| Earnings Per Share Related Information | 19 | |
| Adjusted Tangible Book Per Share Related Information | 20 | |
| Core ROTCE Related Information | 21 | |
| Adjusted Efficiency Ratio Related Information | 22 |
3
| ALLY FINANCIAL INC.<br><br><br>CONSOLIDATED FINANCIAL HIGHLIGHTS | |||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| ($ in millions, shares in thousands) | QUARTERLY TRENDS | CHANGE VS. | |||||||||||||||||||
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
| 1Q 25 | 4Q 24 | 3Q 24 | 2Q 24 | 1Q 24 | 4Q 24 | 1Q 24 | |||||||||||||||
| Selected Income Statement Data | |||||||||||||||||||||
| Net financing revenue | $ | 1,478 | $ | 1,509 | $ | 1,520 | $ | 1,517 | $ | 1,468 | $ | (31 | ) | $ | 10 | ||||||
| Core OID ^(1)^ | 16 | 15 | 14 | 14 | 13 | 1 | 2 | ||||||||||||||
| Net financing revenue (excluding Core OID) ^(1)^ | 1,494 | 1,524 | 1,534 | 1,531 | 1,481 | (30 | ) | 12 | |||||||||||||
| Other revenue | 63 | 517 | 615 | 505 | 530 | (454 | ) | (467 | ) | ||||||||||||
| Change in fair value of equity securities ^(2)^ | 13 | 47 | (59 | ) | 28 | (11 | ) | (34 | ) | 23 | |||||||||||
| Repositioning ^(2)^ | 495 | — | — | — | — | 495 | 495 | ||||||||||||||
| Adjusted other revenue ^(1)^ | 571 | 564 | 556 | 533 | 519 | 8 | 52 | ||||||||||||||
| Provision for credit losses | 191 | 557 | 645 | 457 | 507 | (366 | ) | (316 | ) | ||||||||||||
| Repositioning ^(2)^ | 306 | — | — | — | — | 306 | 306 | ||||||||||||||
| Adjusted provision for credit losses ^(1)^ | 497 | 557 | 645 | 457 | 507 | (60 | ) | (10 | ) | ||||||||||||
| Total noninterest expense ^(3)^ | 1,634 | 1,360 | 1,225 | 1,286 | 1,308 | 274 | 326 | ||||||||||||||
| Repositioning ^(2)^ | (314 | ) | (140 | ) | — | — | (10 | ) | (174 | ) | (304 | ) | |||||||||
| Noninterest expense (ex. repositioning) ^(1)^ | 1,320 | 1,220 | 1,225 | 1,286 | 1,298 | 100 | 22 | ||||||||||||||
| Pre-tax income (loss) from continuingoperations | **** | (284 | ) | **** | 109 | **** | **** | 265 | **** | **** | 279 | **** | **** | 183 | **** | **** | (393 | ) | **** | (467 | ) |
| Income tax expense (benefit) | (59 | ) | — | 67 | 60 | 40 | (59 | ) | (99 | ) | |||||||||||
| (Loss) from discontinued operations, net of tax | — | (1 | ) | — | — | — | 1 | — | |||||||||||||
| Net Income (Loss) | **** | (225 | ) | **** | 108 | **** | **** | 198 | **** | **** | 219 | **** | **** | 143 | **** | **** | (333 | ) | **** | (368 | ) |
| Preferred Dividends | 28 | 27 | 27 | 28 | 28 | 1 | — | ||||||||||||||
| Net income (loss) attributable to common shareholders | $ | (253 | ) | $ | 81 | **** | $ | 171 | **** | $ | 191 | **** | $ | 115 | **** | $ | (334 | ) | $ | (368 | ) |
| Selected Balance Sheet Data(Period-End) | |||||||||||||||||||||
| Total assets | $ | 193,331 | $ | 191,836 | $ | 192,670 | $ | 192,379 | $ | 192,800 | $ | 1,495 | $ | 531 | |||||||
| Consumer loans | 100,831 | 103,285 | 103,095 | 103,585 | 103,809 | (2,454 | ) | (2,978 | ) | ||||||||||||
| Commercial loans | 32,654 | 32,745 | 34,406 | 35,198 | 34,151 | (91 | ) | (1,497 | ) | ||||||||||||
| Allowance for loan losses | (3,398 | ) | (3,714 | ) | (3,700 | ) | (3,572 | ) | (3,550 | ) | 316 | 152 | |||||||||
| Deposits | 151,428 | 151,574 | 151,950 | 152,154 | 155,084 | (146 | ) | (3,656 | ) | ||||||||||||
| Total equity | 14,232 | 13,903 | 14,414 | 13,699 | 13,580 | 329 | 652 | ||||||||||||||
| Common Share Count | |||||||||||||||||||||
| Weighted average basic^(4)^ | 309,006 | 307,553 | 307,312 | 306,774 | 306,003 | 1,453 | 3,004 | ||||||||||||||
| Weighted average diluted^(4)^ | 309,006 | 311,277 | 311,044 | 309,886 | 308,421 | (2,270 | ) | 585 | |||||||||||||
| Issued shares outstanding (period-end) | 307,152 | 305,388 | 304,715 | 304,656 | 303,978 | 1,765 | 3,174 | ||||||||||||||
| Per Common Share Data | |||||||||||||||||||||
| Earnings per share (basic)^(4)^ | $ | (0.82 | ) | $ | 0.26 | $ | 0.55 | $ | 0.63 | $ | 0.38 | $ | (1.08 | ) | $ | (1.19 | ) | ||||
| Earnings per share (diluted)^(4)^ | (0.82 | ) | 0.26 | 0.55 | 0.62 | 0.37 | (1.07 | ) | (1.19 | ) | |||||||||||
| Adjusted earnings per share ^(1)^ | 0.58 | 0.78 | 0.43 | 0.73 | 0.41 | (0.20 | ) | 0.18 | |||||||||||||
| Book value per share | 38.77 | 37.92 | 39.68 | 37.34 | 37.03 | 0.85 | 1.74 | ||||||||||||||
| Tangible book value per share | 37.81 | 35.94 | 37.36 | 35.00 | 34.66 | 1.87 | 3.15 | ||||||||||||||
| Adjusted tangible book value per share ^(1)^ | 35.95 | 34.04 | 35.41 | 33.01 | 32.63 | 1.92 | 3.32 | ||||||||||||||
| Select Financial Ratios | |||||||||||||||||||||
| Net interest margin | 3.31 | % | 3.30 | % | 3.29 | % | 3.32 | % | 3.16 | % | |||||||||||
| Net interest margin (ex. Core OID) ^(1)^ | 3.35 | % | 3.33 | % | 3.32 | % | 3.36 | % | 3.19 | % | |||||||||||
| Cost of funds | 4.05 | % | 4.25 | % | 4.42 | % | 4.39 | % | 4.44 | % | |||||||||||
| Cost of funds (ex. Core OID) ^(1)^ | 3.99 | % | 4.19 | % | 4.36 | % | 4.34 | % | 4.38 | % | |||||||||||
| Efficiency Ratio | 106.0 | % | 67.1 | % | 57.4 | % | 63.6 | % | 65.5 | % | |||||||||||
| Adjusted efficiency ratio ^(1)^ | 56.0 | % | 52.8 | % | 51.1 | % | 52.7 | % | 59.8 | % | |||||||||||
| Return on average assets | (0.5 | )% | 0.2 | % | 0.4 | % | 0.4 | % | 0.2 | % | |||||||||||
| Return on average total equity | (7.2 | )% | 2.3 | % | 4.9 | % | 5.6 | % | 3.4 | % | |||||||||||
| Return on average tangible common equity | (9.0 | )% | 2.9 | % | 6.2 | % | 7.2 | % | 4.3 | % | |||||||||||
| Core ROTCE ^(1)^ | 8.3 | % | 11.3 | % | 6.2 | % | 10.7 | % | 5.9 | % | |||||||||||
| Capital Ratios ^(5)^ | |||||||||||||||||||||
| Common Equity Tier 1 (CET1) capital ratio | 9.5 | % | 9.8 | % | 9.8 | % | 9.6 | % | 9.4 | % | |||||||||||
| Tier 1 capital ratio | 11.0 | % | 11.3 | % | 11.2 | % | 11.0 | % | 10.8 | % | |||||||||||
| Total capital ratio | 12.8 | % | 13.2 | % | 12.9 | % | 12.7 | % | 12.5 | % | |||||||||||
| Tier 1 leverage ratio | 8.7 | % | 8.9 | % | 9.0 | % | 8.8 | % | 8.6 | % | |||||||||||
| (1) | Represents a non-GAAP financial measure. For more details refer topages 19-25. | ||||||||||||||||||||
| --- | --- | ||||||||||||||||||||
| (2) | For more details refer to pages 23-25. | ||||||||||||||||||||
| --- | --- | ||||||||||||||||||||
| (3) | Including but not limited to employee related expenses, commissions and provision for losses and lossadjustment expense related to the insurance business, information technology expenses, servicing expenses, facilities expenses, marketing expenses, and other professional and legal expenses. | ||||||||||||||||||||
| --- | --- | ||||||||||||||||||||
| (4) | Due to the antidilutive effect of the net loss attributable to common shareholders for the first quarter2025, basic weighted average common shares outstanding were used to calculate diluted earnings per share. | ||||||||||||||||||||
| --- | --- | ||||||||||||||||||||
| (5) | For more details on the final rules to address the impact of CECL on regulatory capital by allowing BHCs andbanks, including Ally, to delay and subsequently phase-in its impact, see page 24. | ||||||||||||||||||||
| --- | --- |
Note: Numbers may not foot due to rounding
4
| ALLY FINANCIAL INC.<br><br><br>CONSOLIDATED INCOME STATEMENT | |||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| QUARTERLY TRENDS | CHANGE VS. | ||||||||||||||||||||
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
| ($ in millions) | 1Q 25 | 4Q 24 | 3Q 24 | 2Q 24 | 1Q 24 | 4Q 24 | 1Q 24 | ||||||||||||||
| Financing revenue and other interest income | |||||||||||||||||||||
| Interest and fees on finance receivables and loans | $ | 2,709 | $ | 2,833 | $ | 2,889 | $ | 2,845 | $ | 2,827 | $ | (124 | ) | $ | (118 | ) | |||||
| Interest on loans<br>held-for-sale | 5 | 2 | 5 | 7 | 36 | 3 | (31 | ) | |||||||||||||
| Total interest and dividends on investment securities | 221 | 233 | 253 | 255 | 255 | (12 | ) | (34 | ) | ||||||||||||
| Interest-bearing cash | 98 | 99 | 102 | 88 | 97 | (1 | ) | 1 | |||||||||||||
| Other earning assets | 9 | 11 | 9 | 10 | 11 | (2 | ) | (2 | ) | ||||||||||||
| Operating leases | 351 | 350 | 316 | 333 | 356 | 1 | (5 | ) | |||||||||||||
| Total financing revenue and other interest income | 3,393 | 3,528 | 3,574 | 3,538 | 3,582 | (135 | ) | (189 | ) | ||||||||||||
| Interest expense | |||||||||||||||||||||
| Interest on deposits | 1,403 | 1,527 | 1,616 | 1,594 | 1,651 | (124 | ) | (248 | ) | ||||||||||||
| Interest on short-term borrowings | 1 | 3 | 13 | 27 | 23 | (2 | ) | (22 | ) | ||||||||||||
| Interest on long-term debt | 271 | 269 | 256 | 244 | 248 | 2 | 23 | ||||||||||||||
| Interest on other | — | — | — | 1 | — | — | — | ||||||||||||||
| Total interest expense | 1,675 | 1,799 | 1,885 | 1,866 | 1,922 | (124 | ) | (247 | ) | ||||||||||||
| Depreciation expense on operating lease assets | 240 | 220 | 169 | 155 | 192 | 20 | 48 | ||||||||||||||
| Net financing revenue | $ | 1,478 | **** | $ | 1,509 | **** | $ | 1,520 | **** | $ | 1,517 | **** | $ | 1,468 | **** | $ | (31 | ) | $ | 10 | **** |
| Other revenue | |||||||||||||||||||||
| Insurance premiums and service revenue earned | 364 | 368 | 359 | 341 | 345 | (4 | ) | 19 | |||||||||||||
| Gain on mortgage and automotive loans, net | 1 | 6 | 6 | 6 | 6 | (5 | ) | (5 | ) | ||||||||||||
| Other gain / (loss) on investments, net | (499 | ) | (24 | ) | 74 | (7 | ) | 29 | (475 | ) | (528 | ) | |||||||||
| Other income, net of losses | 197 | 167 | 176 | 165 | 150 | 30 | 47 | ||||||||||||||
| Total other revenue | **** | 63 | **** | **** | 517 | **** | **** | 615 | **** | **** | 505 | **** | **** | 530 | **** | **** | (454 | ) | **** | (467 | ) |
| Total net revenue | **** | 1,541 | **** | **** | 2,026 | **** | **** | 2,135 | **** | **** | 2,022 | **** | **** | 1,998 | **** | **** | (485 | ) | **** | (457 | ) |
| Provision for loan losses | **** | 191 | **** | **** | 557 | **** | **** | 645 | **** | **** | 457 | **** | **** | 507 | **** | **** | (366 | ) | **** | (316 | ) |
| Noninterest expense | |||||||||||||||||||||
| Compensation and benefits expense | 505 | 446 | 435 | 442 | 519 | 59 | (14 | ) | |||||||||||||
| Insurance losses and loss adjustment expenses | 161 | 116 | 135 | 181 | 112 | 45 | 49 | ||||||||||||||
| Goodwill impairment | 305 | 118 | — | — | — | 187 | 305 | ||||||||||||||
| Other operating expenses | 663 | 680 | 655 | 663 | 677 | (17 | ) | (14 | ) | ||||||||||||
| Total noninterest expense | 1,634 | 1,360 | 1,225 | 1,286 | 1,308 | 274 | 326 | ||||||||||||||
| Pre-tax income (loss) from continuingoperations | $ | (284 | ) | $ | 109 | **** | $ | 265 | **** | $ | 279 | **** | $ | 183 | **** | $ | (393 | ) | $ | (467 | ) |
| Income tax (benefit) / expense from continuing operations | (59 | ) | — | 67 | 60 | 40 | (59 | ) | (99 | ) | |||||||||||
| Net income (loss) from continuing operations | **** | (225 | ) | **** | 109 | **** | **** | 198 | **** | **** | 219 | **** | **** | 143 | **** | **** | (334 | ) | **** | (368 | ) |
| Loss from discontinued operations, net of tax | — | (1 | ) | — | — | — | 1 | — | |||||||||||||
| Net income (loss) | $ | (225 | ) | $ | 108 | **** | $ | 198 | **** | $ | 219 | **** | $ | 143 | **** | $ | (333 | ) | $ | (368 | ) |
| Preferred Dividends | 28 | 27 | 27 | 28 | 28 | 1 | — | ||||||||||||||
| Net income (loss) available to common shareholders | $ | (253 | ) | $ | 81 | **** | $ | 171 | **** | $ | 191 | **** | $ | 115 | **** | $ | (334 | ) | $ | (368 | ) |
| Core pre-tax Income walk | |||||||||||||||||||||
| Net financing revenue | $ | 1,478 | **** | $ | 1,509 | **** | $ | 1,520 | **** | $ | 1,517 | **** | $ | 1,468 | **** | $ | (31 | ) | $ | 10 | **** |
| Other revenue | 63 | 517 | 615 | 505 | 530 | (454 | ) | (467 | ) | ||||||||||||
| Provision for credit losses | 191 | 557 | 645 | 457 | 507 | (366 | ) | (316 | ) | ||||||||||||
| Total noninterest expense | 1,634 | 1,360 | 1,225 | 1,286 | 1,308 | 274 | 326 | ||||||||||||||
| Pre-tax income (loss) from continuingoperations | $ | (284 | ) | $ | 109 | **** | $ | 265 | **** | $ | 279 | **** | $ | 183 | **** | $ | (393 | ) | $ | (467 | ) |
| Core OID ^(1)^ | 16 | 15 | 14 | 14 | 13 | 1 | 2 | ||||||||||||||
| Change in the fair value of equity securities ^(2)^ | 13 | 47 | (59 | ) | 28 | (11 | ) | (34 | ) | 23 | |||||||||||
| Repositioning ^(2)^ | 503 | 140 | — | — | 10 | 363 | 493 | ||||||||||||||
| Core pre-tax income ^(1)^ | $ | 247 | **** | $ | 310 | **** | $ | 220 | **** | $ | 321 | **** | $ | 195 | **** | $ | (63 | ) | $ | 52 | **** |
| (1) | Represents a non-GAAP financial measure. For more details refer topages 19-25. | ||||||||||||||||||||
| --- | --- | ||||||||||||||||||||
| (2) | For more details refer to pages 23-25. | ||||||||||||||||||||
| --- | --- |
Note: Numbers may not foot due to rounding
5
| ALLY FINANCIAL INC.<br><br><br>CONSOLIDATED PERIOD-END BALANCE SHEET | |||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| ($ in millions) | QUARTERLY TRENDS | CHANGE VS. | |||||||||||||||||||
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
| 1Q 25 | 4Q 24 | 3Q 24 | 2Q 24 | 1Q 24 | 4Q 24 | 1Q 24 | |||||||||||||||
| Assets | |||||||||||||||||||||
| Cash and cash equivalents | |||||||||||||||||||||
| Noninterest-bearing | $ | 543 | $ | 522 | $ | 544 | $ | 536 | $ | 589 | $ | 21 | $ | (46 | ) | ||||||
| Interest-bearing | 9,866 | 9,770 | 8,072 | 6,833 | 7,564 | 96 | 2,302 | ||||||||||||||
| Total cash and cash equivalents | 10,409 | 10,292 | 8,616 | 7,369 | 8,153 | 117 | 2,256 | ||||||||||||||
| Investment securities ^(1)^ | 27,956 | 27,627 | 29,223 | 28,602 | 29,127 | 329 | (1,171 | ) | |||||||||||||
| Loans<br>held-for-sale, net | 209 | 160 | 306 | 316 | 358 | 49 | (149 | ) | |||||||||||||
| Finance receivables and loans, net | 133,485 | 136,030 | 137,501 | 138,783 | 137,960 | (2,545 | ) | (4,475 | ) | ||||||||||||
| Allowance for loan losses | (3,398 | ) | (3,714 | ) | (3,700 | ) | (3,572 | ) | (3,550 | ) | 316 | 152 | |||||||||
| Total finance receivables and loans, net | 130,087 | 132,316 | 133,801 | 135,211 | 134,410 | (2,229 | ) | (4,323 | ) | ||||||||||||
| Investment in operating leases, net | 7,879 | 7,991 | 7,967 | 8,126 | 8,582 | (112 | ) | (703 | ) | ||||||||||||
| Premiums receivable and other insurance assets | 2,806 | 2,790 | 2,810 | 2,806 | 2,750 | 16 | 56 | ||||||||||||||
| Other assets | 11,545 | 10,660 | 9,947 | 9,949 | 9,420 | 885 | 2,125 | ||||||||||||||
| Assets of operations<br>held-for-sale ^(2)^ | 2,440 | — | — | — | — | 2,440 | 2,440 | ||||||||||||||
| Total assets | $ | 193,331 | **** | $ | 191,836 | **** | $ | 192,670 | **** | $ | 192,379 | **** | $ | 192,800 | **** | $ | 1,495 | **** | $ | 531 | **** |
| Liabilities | |||||||||||||||||||||
| Deposit liabilities | |||||||||||||||||||||
| Noninterest-bearing | $ | 133 | $ | 131 | $ | 174 | $ | 156 | $ | 137 | $ | 2 | $ | (4 | ) | ||||||
| Interest-bearing | 151,295 | 151,443 | 151,776 | 151,998 | 154,947 | (148 | ) | (3,652 | ) | ||||||||||||
| Total deposit liabilities | 151,428 | 151,574 | 151,950 | 152,154 | 155,084 | (146 | ) | (3,656 | ) | ||||||||||||
| Short-term borrowings | 3,339 | 1,625 | 1,771 | 3,122 | — | 1,714 | 3,339 | ||||||||||||||
| Long-term debt | 16,465 | 17,495 | 16,807 | 15,979 | 17,011 | (1,030 | ) | (546 | ) | ||||||||||||
| Interest payable | 954 | 890 | 1,425 | 1,148 | 1,118 | 64 | (164 | ) | |||||||||||||
| Unearned insurance premiums and service revenue | 3,563 | 3,535 | 3,534 | 3,496 | 3,480 | 28 | 83 | ||||||||||||||
| Accrued expense and other liabilities | 3,315 | 2,814 | 2,769 | 2,781 | 2,527 | 501 | 788 | ||||||||||||||
| Liabilities of operations<br>held-for-sale | 35 | — | — | — | — | 35 | 35 | ||||||||||||||
| Total liabilities | $ | 179,099 | **** | $ | 177,933 | **** | $ | 178,256 | **** | $ | 178,680 | **** | $ | 179,220 | **** | $ | 1,166 | **** | $ | (121 | ) |
| Equity | |||||||||||||||||||||
| Common stock and paid-in capital ^(3)^ | $ | 15,248 | $ | 15,233 | $ | 15,199 | $ | 15,176 | $ | 15,134 | $ | 15 | $ | 114 | |||||||
| Preferred stock | 2,324 | 2,324 | 2,324 | 2,324 | 2,324 | — | — | ||||||||||||||
| Retained earnings (accumulated deficit) | (78 | ) | 270 | 284 | 208 | 111 | (348 | ) | (189 | ) | |||||||||||
| Accumulated other comprehensive loss | (3,262 | ) | (3,924 | ) | (3,393 | ) | (4,009 | ) | (3,989 | ) | 662 | 727 | |||||||||
| Total equity | 14,232 | 13,903 | 14,414 | 13,699 | 13,580 | 329 | 652 | ||||||||||||||
| Total liabilities and equity | $ | 193,331 | **** | $ | 191,836 | **** | $ | 192,670 | **** | $ | 192,379 | **** | $ | 192,800 | **** | $ | 1,495 | **** | $ | 531 | **** |
| (1) | Includes Held-to-maturitysecurities. | ||||||||||||||||||||
| --- | --- | ||||||||||||||||||||
| (2) | Credit Card moved to Assets of OperationsHeld-For-Sale (HFS) on 03/31/25. Sale of Credit Card closed on 04/01/25. | ||||||||||||||||||||
| --- | --- | ||||||||||||||||||||
| (3) | Includes Treasury stock. | ||||||||||||||||||||
| --- | --- |
Note: Numbers may not foot due to rounding
6
| ALLY FINANCIAL INC.<br><br><br>CONSOLIDATED AVERAGE BALANCE SHEET (1) | ||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| ( in millions) | ||||||||||||||||||||
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
| CHANGE VS. | ||||||||||||||||||||
| 4Q 24 | 3Q 24 | 2Q 24 | 1Q 24 | 4Q 24 | 1Q 24 | |||||||||||||||
| Assets | ||||||||||||||||||||
| Interest-bearing cash and cash equivalents | 9,345 | $ | 8,721 | $ | 7,867 | $ | 7,276 | $ | 7,709 | $ | 624 | $ | 1,636 | |||||||
| Investment securities and other earning assets | 28,435 | 28,894 | 29,695 | 29,233 | 29,939 | (459 | ) | (1,504 | ) | |||||||||||
| Loans<br>held-for-sale, net | 166 | 123 | 267 | 220 | 382 | 43 | (216 | ) | ||||||||||||
| Total finance receivables and loans, net (2) (5) | 135,178 | 136,636 | 137,625 | 138,322 | 139,945 | (1,458 | ) | (4,767 | ) | |||||||||||
| Investment in operating leases, net | 7,955 | 7,794 | 8,038 | 8,417 | 8,848 | 161 | (893 | ) | ||||||||||||
| Total interest earning assets | 181,079 | 182,168 | 183,492 | 183,468 | 186,823 | (1,089 | ) | (5,744 | ) | |||||||||||
| Noninterest-bearing cash and cash equivalents | 279 | 278 | 266 | 360 | 309 | 1 | (30 | ) | ||||||||||||
| Other assets | 12,078 | 11,772 | 11,711 | 11,720 | 11,484 | 306 | 594 | |||||||||||||
| Allowance for loan losses | (3,708 | ) | (3,714 | ) | (3,584 | ) | (3,557 | ) | (3,589 | ) | 6 | (119 | ) | |||||||
| Total assets | 189,728 | **** | $ | 190,504 | **** | $ | 191,885 | **** | $ | 191,991 | **** | $ | 195,027 | **** | $ | (776) | **** | $ | (5,299 | ) |
| Liabilities | ||||||||||||||||||||
| Interest-bearing deposit liabilities | ||||||||||||||||||||
| Retail deposit liabilities | 143,914 | $ | 141,868 | $ | 141,286 | $ | 142,949 | $ | 143,491 | $ | 2,046 | $ | 423 | |||||||
| Other interest-bearing deposit liabilities (3) | 6,581 | 9,476 | 10,789 | 9,316 | 11,712 | (2,895 | ) | (5,131 | ) | |||||||||||
| Total Interest-bearing deposit liabilities | 150,495 | 151,344 | 152,075 | 152,265 | 155,203 | (849 | ) | (4,708 | ) | |||||||||||
| Short-term borrowings | 124 | 239 | 994 | 2,254 | 1,726 | (115 | ) | (1,602 | ) | |||||||||||
| Long-term debt (4) | 17,245 | 16,954 | 16,597 | 16,367 | 17,309 | 291 | (64 | ) | ||||||||||||
| Total interest-bearing liabilities (4) | 167,864 | 168,537 | 169,666 | 170,886 | 174,238 | (673 | ) | (6,374 | ) | |||||||||||
| Noninterest-bearing deposit liabilities | 145 | 158 | 166 | 147 | 149 | (13 | ) | (4 | ) | |||||||||||
| Other liabilities | 7,529 | 7,757 | 7,619 | 7,231 | 7,021 | (228 | ) | 508 | ||||||||||||
| Total liabilities | 175,538 | **** | $ | 176,452 | **** | $ | 177,451 | **** | $ | 178,264 | **** | $ | 181,408 | **** | $ | (914 | ) | $ | (5,870 | ) |
| Equity | ||||||||||||||||||||
| Total equity | 14,190 | $ | 14,052 | $ | 14,434 | $ | 13,727 | $ | 13,619 | $ | 138 | $ | 571 | |||||||
| Total liabilities and equity | 189,728 | **** | $ | 190,504 | **** | $ | 191,885 | **** | $ | 191,991 | **** | $ | 195,027 | **** | $ | (776) | **** | $ | (5,299 | ) |
All values are in US Dollars.
| (1) | Average balances are calculated using a combination of monthly and daily average methodologies. |
|---|---|
| (2) | Nonperforming finance receivables and loans are included in the average balances net of unearned income,unamortized premiums and discounts, and deferred fees and costs. |
| --- | --- |
| (3) | Includes brokered (inclusive of sweep deposits) and other deposits. |
| --- | --- |
| (4) | Includes average Core OID balance of $729 million in 1Q25, $744 million in 4Q24, $759 millionin 3Q24, $773 million in 2Q24, and $786 million in 1Q24. |
| --- | --- |
| (5) | Includes the effects of finance receivables and loans, net that were transferred to loans held-for-sale, net and subsequently transferred to assets of operations held-for-sale as ofMarch 31, 2025. |
| --- | --- |
Note: Numbers may not foot due to rounding
7
| ALLY FINANCIAL INC.<br><br><br>SEGMENT HIGHLIGHTS |
|---|
($ in millions)
| QUARTERLY TRENDS | CHANGE VS. | ||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Pre-tax Income / (Loss) | 1Q 25 | 4Q 24 | 3Q 24 | 2Q 24 | 1Q 24 | 4Q 24 | 1Q 24 | ||||||||||||||
| Automotive Finance | $ | 375 | $ | 397 | $ | 355 | $ | 584 | $ | 480 | $ | (22 | ) | $ | (105 | ) | |||||
| Insurance | 2 | 36 | 102 | (40 | ) | 70 | (34 | ) | (68 | ) | |||||||||||
| Dealer Financial Services | **** | 377 | **** | **** | 433 | **** | **** | 457 | **** | **** | 544 | **** | **** | 550 | **** | **** | (56 | ) | **** | (173 | ) |
| Corporate Finance | 76 | 120 | 105 | 109 | 100 | (44 | ) | (24 | ) | ||||||||||||
| Corporate and Other ^(1)^ | (737 | ) | (444 | ) | (297 | ) | (374 | ) | (467 | ) | (293 | ) | (270 | ) | |||||||
| Pre-tax income (loss) from continuingoperations | $ | (284 | ) | $ | 109 | **** | $ | 265 | **** | $ | 279 | **** | $ | 183 | **** | $ | (393 | ) | $ | (467 | ) |
| Core OID ^(2)^^(4)^ | 16 | 15 | 14 | 14 | 13 | 1 | 2 | ||||||||||||||
| Change in the fair value of equity securities ^(3)^ | 13 | 47 | (59 | ) | 28 | (11 | ) | (34 | ) | 23 | |||||||||||
| Repositioning and other ^(3)^ | 503 | 140 | — | — | 10 | 363 | 493 | ||||||||||||||
| Core pre-tax income ^(4)^ | $ | 247 | **** | $ | 310 | **** | $ | 220 | **** | $ | 321 | **** | $ | 195 | **** | $ | (63 | ) | $ | 52 | **** |
| (1) | Corporate and Other includes the impact of centralized asset and liability management, corporate overheadallocation activities, consumer mortgage portfolio, Ally Invest activity, Ally Lending activity and the Credit Card portfolio. The sale of Ally Lending closed on 03/01/24. Additionally, Credit Card moved to Assets of Operations Held-For-Sale (HFS) on 03/31/25. | ||||||||||||||||||||
| --- | --- | ||||||||||||||||||||
| (2) | Core OID for all periods shown are applied to the pre-tax income ofthe Corporate and Other segment. | ||||||||||||||||||||
| --- | --- | ||||||||||||||||||||
| (3) | For more details refer to pages 23-25. | ||||||||||||||||||||
| --- | --- | ||||||||||||||||||||
| (4) | Represents a non-GAAP measure. For more details refer to pages 19-25. | ||||||||||||||||||||
| --- | --- |
Note: Numbers may not foot due to rounding
8
| ALLY FINANCIAL INC.<br><br><br>AUTOMOTIVE FINANCE - CONDENSED FINANCIAL STATEMENTS |
|---|
($ in millions)
| QUARTERLY TRENDS | CHANGE VS. | ||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 1Q 25 | 4Q 24 | 3Q 24 | 2Q 24 | 1Q 24 | 4Q 24 | 1Q 24 | |||||||||||||||
| Income Statement | |||||||||||||||||||||
| Net financing revenue | |||||||||||||||||||||
| Consumer | $ | 1,878 | $ | 1,907 | $ | 1,889 | $ | 1,837 | $ | 1,808 | $ | (29 | ) | $ | 70 | ||||||
| Commercial | 341 | 396 | 432 | 435 | 411 | (55 | ) | (70 | ) | ||||||||||||
| Loans<br>held-for-sale | 1 | 1 | — | 1 | 1 | — | — | ||||||||||||||
| Operating leases | 351 | 350 | 316 | 333 | 356 | 1 | (5 | ) | |||||||||||||
| Total financing revenue and other interest income | 2,571 | 2,654 | 2,637 | 2,606 | 2,576 | (83 | ) | (5 | ) | ||||||||||||
| Interest expense | 1,065 | 1,090 | 1,101 | 1,065 | 1,010 | (25 | ) | 55 | |||||||||||||
| Depreciation expense on operating lease assets: | |||||||||||||||||||||
| Depreciation expense on operating lease assets (ex. remarketing) | 221 | 224 | 193 | 214 | 238 | (4 | ) | (17 | ) | ||||||||||||
| Remarketing (gains) loss, net of repo valuation | 19 | (3 | ) | (24 | ) | (59 | ) | (46 | ) | 22 | 65 | ||||||||||
| Total depreciation expense on operating lease assets | 240 | 220 | 169 | 155 | 192 | 20 | 48 | ||||||||||||||
| Net financing revenue | 1,266 | 1,344 | 1,367 | 1,386 | 1,374 | (78 | ) | (108 | ) | ||||||||||||
| Other revenue | |||||||||||||||||||||
| Total other revenue | 97 | 88 | 85 | 93 | 97 | 9 | — | ||||||||||||||
| Total net revenue | 1,363 | 1,432 | 1,452 | 1,479 | 1,471 | (69 | ) | (108 | ) | ||||||||||||
| Provision for credit losses | 434 | 495 | 579 | 383 | 448 | (61 | ) | (14 | ) | ||||||||||||
| Noninterest expense | |||||||||||||||||||||
| Compensation and benefits | 183 | 165 | 165 | 160 | 178 | 18 | 5 | ||||||||||||||
| Other operating expenses | 371 | 375 | 353 | 352 | 365 | (4 | ) | 6 | |||||||||||||
| Total noninterest expense | 554 | 540 | 518 | 512 | 543 | 14 | 11 | ||||||||||||||
| Pre-tax Income | $ | 375 | **** | $ | 397 | **** | $ | 355 | **** | $ | 584 | **** | $ | 480 | **** | $ | (22 | ) | $ | (105 | ) |
| Memo: Net lease revenue | |||||||||||||||||||||
| Operating lease revenue | $ | 351 | $ | 350 | $ | 316 | $ | 333 | $ | 356 | $ | 1 | $ | (5 | ) | ||||||
| Depreciation expense on operating lease assets (ex. remarketing) | 221 | 224 | 193 | 214 | 238 | (4 | ) | (17 | ) | ||||||||||||
| Remarketing (gains) loss, net of repo valuation | 19 | (3 | ) | (24 | ) | (59 | ) | (46 | ) | 22 | 65 | ||||||||||
| Total depreciation expense on operating lease assets | 240 | 220 | 169 | 155 | 192 | 20 | 48 | ||||||||||||||
| Net lease revenue | $ | 111 | **** | $ | 130 | **** | $ | 147 | **** | $ | 178 | **** | $ | 164 | **** | $ | (19 | ) | $ | (53 | ) |
| Balance Sheet (Period-End) | |||||||||||||||||||||
| Loans<br>held-for-sale, net | $ | 13 | $ | 5 | $ | 3 | $ | 6 | $ | 5 | $ | 8 | $ | 8 | |||||||
| Consumer loans | 83,887 | 83,808 | 83,396 | 83,694 | 83,587 | 79 | 300 | ||||||||||||||
| Commercial loans | 21,547 | 22,898 | 23,842 | 25,220 | 23,765 | (1,351 | ) | (2,218 | ) | ||||||||||||
| Allowance for loan losses | (3,200 | ) | (3,211 | ) | (3,204 | ) | (3,092 | ) | (3,083 | ) | 11 | (117 | ) | ||||||||
| Total finance receivables and loans, net | 102,234 | 103,495 | 104,034 | 105,822 | 104,269 | (1,261 | ) | (2,035 | ) | ||||||||||||
| Investment in operating leases, net | 7,879 | 7,991 | 7,967 | 8,126 | 8,582 | (112 | ) | (703 | ) | ||||||||||||
| Other assets | 1,546 | 1,566 | 1,579 | 1,570 | 1,608 | (20 | ) | (62 | ) | ||||||||||||
| Total assets | $ | 111,672 | **** | $ | 113,057 | **** | $ | 113,583 | **** | $ | 115,524 | **** | $ | 114,464 | **** | $ | (1,385 | ) | $ | (2,792 | ) |
Note: Numbers may not foot due to rounding
9
| ALLY FINANCIAL INC.<br><br><br>AUTOMOTIVE FINANCE - KEY STATISTICS | ||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| CHANGE VS. | ||||||||||||||||
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
| 4Q 24 | 3Q 24 | 2Q 24 | 1Q 24 | 4Q 24 | 1Q 24 | |||||||||||
| U.S. Consumer Originations (1) ( in<br>billions) | ||||||||||||||||
| Retail standard - new vehicle GM | 1.1 | $ | 1.1 | $ | 0.9 | $ | 1.1 | $ | 1.0 | $ | 0.0 | $ | 0.1 | |||
| Retail standard - new vehicle Stellantis | 0.6 | 0.7 | 0.6 | 0.7 | 0.6 | (0.1 | ) | 0.0 | ||||||||
| Retail standard - new vehicle Other | 1.2 | 1.5 | 1.0 | 1.0 | 0.9 | (0.3 | ) | 0.3 | ||||||||
| Used vehicle | 6.4 | 6.0 | 5.9 | 6.1 | 6.6 | 0.4 | (0.2 | ) | ||||||||
| Lease | 0.9 | 1.0 | 1.0 | 0.9 | 0.7 | (0.1 | ) | 0.1 | ||||||||
| Total originations | 10.2 | $ | 10.3 | $ | 9.4 | $ | 9.8 | $ | 9.8 | $ | (0.1 | ) | $ | 0.4 | ||
| U.S. Consumer Originations - FICO Score | ||||||||||||||||
| Super prime (760-999) | 3.0 | $ | 3.5 | $ | 2.6 | $ | 2.7 | $ | 2.4 | $ | (0.4 | ) | $ | 0.6 | ||
| High prime (720-759) | 1.5 | 1.5 | 1.4 | 1.4 | 1.4 | — | 0.1 | |||||||||
| Prime (660-719) | 2.7 | 2.5 | 2.6 | 2.8 | 2.8 | 0.2 | (0.1 | ) | ||||||||
| Prime/Near (620-659) | 1.6 | 1.5 | 1.5 | 1.6 | 1.7 | 0.1 | — | |||||||||
| Non-Prime<br>(540-619) | 0.7 | 0.6 | 0.6 | 0.6 | 0.7 | — | — | |||||||||
| Sub-Prime<br>(0-539) | 0.1 | 0.1 | 0.1 | 0.1 | 0.2 | (0.0 | ) | (0.1 | ) | |||||||
| No FICO (Primarily CSG) | 0.6 | 0.6 | 0.5 | 0.6 | 0.7 | 0.0 | (0.1 | ) | ||||||||
| Total originations | 10.2 | $ | 10.3 | $ | 9.4 | $ | 9.8 | $ | 9.8 | $ | (0.1 | ) | $ | 0.4 | ||
| U.S. Consumer Retail Originations - Average FICO | ||||||||||||||||
| New vehicle | 728 | 738 | 716 | 714 | 712 | (11 | ) | 16 | ||||||||
| Used vehicle | 708 | 711 | 707 | 710 | 702 | (3 | ) | 7 | ||||||||
| Total retail originations | 714 | 720 | 710 | 712 | 704 | (6 | ) | 10 | ||||||||
| U.S. Market | ||||||||||||||||
| New light vehicle sales (SAAR - units in millions) | 16.4 | 16.5 | 15.6 | 15.6 | 15.5 | (0.1 | ) | 1.0 | ||||||||
| New light vehicle sales (quarterly - units in millions) | 3.9 | 4.2 | 3.9 | 4.1 | 3.7 | (0.3 | ) | 0.2 | ||||||||
| Dealer Engagement | ||||||||||||||||
| Total Active DFS Dealers (2) | 21,665 | 21,368 | 21,656 | 21,825 | 21,787 | 297 | (122 | ) | ||||||||
| Total Application Volume (000s) | 3,793 | 3,478 | 3,632 | 3,733 | 3,764 | 315 | 29 | |||||||||
| Ally U.S. Commercial Outstandings EOP ( in billions) | ||||||||||||||||
| Floorplan outstandings | 15.1 | $ | 16.4 | $ | 17.5 | $ | 18.7 | $ | 17.3 | $ | (1.3 | ) | $ | (2.2 | ) | |
| Dealer loans and other | 6.4 | 6.5 | 6.3 | 6.6 | 6.4 | (0.1 | ) | 0.0 | ||||||||
| Total Commercial outstandings | 21.5 | $ | 22.9 | $ | 23.8 | $ | 25.2 | $ | 23.8 | $ | (1.4 | ) | $ | (2.2 | ) | |
| U.S. Off-Lease Remarketing | ||||||||||||||||
| Off-lease vehicles terminated - on-balance sheet (# in units) | 21,943 | 23,301 | 31,033 | 41,601 | 31,926 | (1,358 | ) | (9,983 | ) | |||||||
| Average gain (loss) per vehicle | (863 | ) | $ | 145 | $ | 771 | $ | 1,420 | $ | 1,431 | $ | (1,008 | ) | $ | (2,294 | ) |
| Total gain (loss) ( in millions) | (19 | ) | $ | 3 | $ | 24 | $ | 59 | $ | 46 | $ | (22 | ) | $ | (65 | ) |
All values are in US Dollars.
| (1) | Some standard rate loan originations contain manufacturer sponsored cash back rebate incentives. Some leaseoriginations 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) | A dealer is considered to have an active relationship with us if we provided automotive financing,remarketing, or insurance services during the three months ended March 31, 2025. Note: Numbers may not foot due to rounding |
| --- | --- |
10
| ALLY FINANCIAL INC.<br><br><br>INSURANCE - CONDENSED FINANCIAL STATEMENTS AND KEY STATISTICS | |||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| ($ in millions) | QUARTERLY TRENDS | CHANGE VS. | |||||||||||||||||||
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
| 1Q 25 | 4Q 24 | 3Q 24 | 2Q 24 | 1Q 24 | 4Q 24 | 1Q 24 | |||||||||||||||
| Income Statement (GAAP View) | |||||||||||||||||||||
| Net financing revenue | |||||||||||||||||||||
| Total interest and fees on finance receivables and loans^(1)^ | $ | 5 | $ | 5 | $ | 4 | $ | 4 | $ | 3 | $ | — | $ | 2 | |||||||
| Interest and dividends on investment securities | 34 | 34 | 31 | 32 | 31 | — | 3 | ||||||||||||||
| Interest bearing cash | 5 | 6 | 8 | 5 | 5 | (1 | ) | — | |||||||||||||
| Total financing revenue and other interest revenue | 44 | 45 | 43 | 41 | 39 | (1 | ) | 5 | |||||||||||||
| Interest expense | 14 | 14 | 13 | 14 | 13 | — | 1 | ||||||||||||||
| Net financing revenue | 30 | 31 | 30 | 27 | 26 | (1 | ) | 4 | |||||||||||||
| Other revenue | |||||||||||||||||||||
| Insurance premiums and service revenue earned | 364 | 368 | 359 | 341 | 345 | (4 | ) | 19 | |||||||||||||
| Other gain / (loss) on investments, net | (4 | ) | (24 | ) | 75 | (6 | ) | 35 | 20 | (39 | ) | ||||||||||
| Other income, net of losses | 4 | 4 | 3 | 3 | 4 | — | — | ||||||||||||||
| Total other revenue | 364 | 348 | 437 | 338 | 384 | 16 | (20 | ) | |||||||||||||
| Total net revenue | 394 | 379 | 467 | 365 | 410 | 15 | (16 | ) | |||||||||||||
| Noninterest expense | |||||||||||||||||||||
| Compensation and benefits expense | 30 | 27 | 27 | 26 | 28 | 3 | 2 | ||||||||||||||
| Insurance losses and loss adjustment expenses | 161 | 116 | 135 | 181 | 112 | 45 | 49 | ||||||||||||||
| Other operating expenses | 201 | 200 | 203 | 198 | 200 | 1 | 1 | ||||||||||||||
| Total noninterest expense | 392 | 343 | 365 | 405 | 340 | 49 | 52 | ||||||||||||||
| Pre-tax income (loss) | $ | 2 | **** | $ | 36 | **** | $ | 102 | **** | $ | (40 | ) | $ | 70 | **** | $ | (34 | ) | $ | (68 | ) |
| Memo: Income Statement (Managerial View) | |||||||||||||||||||||
| Insurance premiums and other income | |||||||||||||||||||||
| Insurance premiums and service revenue earned | $ | 364 | $ | 368 | $ | 359 | $ | 341 | $ | 345 | $ | (4 | ) | $ | 19 | ||||||
| Investment income and other (adjusted) ^(2)^ | 41 | 55 | 49 | 49 | 44 | (14 | ) | (3 | ) | ||||||||||||
| Other income | 4 | 4 | 3 | 3 | 4 | — | — | ||||||||||||||
| Total insurance premiums and other income | 409 | 427 | 411 | 393 | 393 | (18 | ) | 16 | |||||||||||||
| Expense | |||||||||||||||||||||
| Insurance losses and loss adjustment expenses | 161 | 116 | 135 | 181 | 112 | 45 | 49 | ||||||||||||||
| Acquisition and underwriting expenses | |||||||||||||||||||||
| Compensation and benefit expense | 30 | 27 | 27 | 26 | 28 | 3 | 2 | ||||||||||||||
| Insurance commission expense | 162 | 162 | 164 | 162 | 161 | — | 1 | ||||||||||||||
| Other expense | 39 | 38 | 39 | 36 | 39 | 1 | — | ||||||||||||||
| Total acquistion and underwriting expense | 231 | 227 | 230 | 224 | 228 | 4 | 3 | ||||||||||||||
| Total expense | 392 | 343 | 365 | 405 | 340 | 49 | 52 | ||||||||||||||
| Core pre-tax (loss) / income ^(2)^ | 17 | 84 | 46 | (12 | ) | 53 | (67 | ) | (36 | ) | |||||||||||
| Change in the fair value of equity securities ^(3)^ | (15 | ) | (48 | ) | 56 | (28 | ) | 17 | 33 | (32 | ) | ||||||||||
| Income (loss) before income tax expense | $ | 2 | **** | $ | 36 | **** | $ | 102 | **** | $ | (40 | ) | $ | 70 | **** | $ | (34 | ) | $ | (68 | ) |
| Balance Sheet (Period-End) | |||||||||||||||||||||
| Cash and investment securities | $ | 5,527 | $ | 5,317 | $ | 5,461 | $ | 5,285 | $ | 5,285 | $ | 210 | $ | 242 | |||||||
| Intercompany loans^(1)^ | 804 | 864 | 826 | 727 | 719 | (60 | ) | 85 | |||||||||||||
| Premiums receivable and other insurance assets | 2,824 | 2,809 | 2,829 | 2,824 | 2,768 | 15 | 56 | ||||||||||||||
| Other assets | 334 | 335 | 339 | 338 | 328 | (1 | ) | 6 | |||||||||||||
| Total assets | $ | 9,489 | **** | $ | 9,325 | **** | $ | 9,455 | **** | $ | 9,174 | **** | $ | 9,100 | **** | $ | 164 | **** | $ | 389 | **** |
| Key Statistics | |||||||||||||||||||||
| Total written premiums and revenue ^(4)^ | $ | 385 | $ | 390 | $ | 384 | $ | 344 | $ | 354 | $ | (5 | ) | $ | 31 | ||||||
| Loss ratio ^(5)^ | 43.7 | % | 31.3 | % | 37.1 | % | 52.5 | % | 32.2 | % | |||||||||||
| Underwriting expense ratio ^(6)^ | 62.8 | % | 61.2 | % | 63.5 | % | 65.1 | % | 65.4 | % | |||||||||||
| Combined ratio | **** | 106.5 | % | **** | 92.5 | % | **** | 100.6 | % | **** | 117.6 | % | **** | 97.6 | % | ||||||
| (1) | Intercompany activity represents excess liquidity placed with corporate segment. | ||||||||||||||||||||
| --- | --- | ||||||||||||||||||||
| (2) | Represents a non-GAAP financial measure. For more details refer topages 19-25. | ||||||||||||||||||||
| --- | --- | ||||||||||||||||||||
| (3) | For more details refer to pages 23-25. | ||||||||||||||||||||
| --- | --- | ||||||||||||||||||||
| (4) | Written premiums are net of ceded premium for reinsurance. | ||||||||||||||||||||
| --- | --- | ||||||||||||||||||||
| (5) | Loss ratio is calculated as Insurance losses and loss adjustment expenses divided by Insurance premiums andservice revenue earned and Other Income, net of losses. | ||||||||||||||||||||
| --- | --- | ||||||||||||||||||||
| (6) | Underwriting expense ratio is calculated as Compensation and benefits expense and Other operating expensesdivided by Insurance premiums and service revenue earned and Other income, net of losses. | ||||||||||||||||||||
| --- | --- |
Note: Numbers may not foot due torounding
11
| ALLY FINANCIAL INC.<br><br><br>CORPORATE FINANCE - CONDENSED FINANCIAL STATEMENTS | |||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| ($ in millions) | QUARTERLY TRENDS | CHANGE VS. | |||||||||||||||||||
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
| 1Q 25 | 4Q 24 | 3Q 24 | 2Q 24 | 1Q 24 | 4Q 24 | 1Q 24 | |||||||||||||||
| Income Statement | |||||||||||||||||||||
| Net financing revenue | |||||||||||||||||||||
| Total financing revenue and other interest income | $ | 221 | $ | 237 | $ | 248 | $ | 252 | $ | 269 | $ | (16 | ) | $ | (48 | ) | |||||
| Interest expense | 117 | 122 | 139 | 140 | 149 | (5 | ) | (32 | ) | ||||||||||||
| Net financing revenue | 104 | 115 | 109 | 112 | 120 | (11 | ) | (16 | ) | ||||||||||||
| Total other revenue | 29 | 33 | 37 | 30 | 23 | (4 | ) | 6 | |||||||||||||
| Total net revenue | 133 | 148 | 146 | 142 | 143 | (15 | ) | (10 | ) | ||||||||||||
| Provision for loan losses | 14 | (5 | ) | 11 | 3 | (1 | ) | 19 | 15 | ||||||||||||
| Noninterest expense | |||||||||||||||||||||
| Compensation and benefits expense | 25 | 19 | 17 | 17 | 27 | 6 | (2 | ) | |||||||||||||
| Other operating expense | 18 | 14 | 13 | 13 | 17 | 4 | 1 | ||||||||||||||
| Total noninterest expense | 43 | 33 | 30 | 30 | 44 | 10 | (1 | ) | |||||||||||||
| Pre-tax income | $ | 76 | **** | $ | 120 | **** | $ | 105 | **** | $ | 109 | **** | $ | 100 | **** | $ | (44 | ) | $ | (24 | ) |
| Change in the fair value of equity securities ^(1)^ | 0 | 0 | (1 | ) | (0 | ) | 0 | (0 | ) | (0 | ) | ||||||||||
| Core pre-tax income ^(2)^ | $ | 76 | $ | 120 | $ | 104 | $ | 109 | $ | 100 | $ | (44 | ) | $ | (24 | ) | |||||
| Balance Sheet (Period-End) | |||||||||||||||||||||
| Equity securities | $ | 1 | $ | 3 | $ | 3 | $ | 2 | $ | 5 | $ | (2 | ) | $ | (4 | ) | |||||
| Loans held for sale, net | 144 | 105 | 65 | 101 | 213 | 39 | (69 | ) | |||||||||||||
| Commercial loans | 10,857 | 9,593 | 10,300 | 9,737 | 10,144 | 1,264 | 713 | ||||||||||||||
| Allowance for loan losses | (177 | ) | (162 | ) | (167 | ) | (156 | ) | (152 | ) | (15 | ) | (25 | ) | |||||||
| Total finance receivables and loans, net | 10,680 | 9,431 | 10,133 | 9,581 | 9,992 | 1,249 | 688 | ||||||||||||||
| Other assets | 177 | 165 | 197 | 185 | 200 | 12 | (23 | ) | |||||||||||||
| Total assets | $ | 11,002 | **** | $ | 9,704 | **** | $ | 10,398 | **** | $ | 9,869 | **** | $ | 10,410 | **** | $ | 1,298 | **** | $ | 592 | **** |
| (1) | For more details refer to pages 23-25. | ||||||||||||||||||||
| --- | --- | ||||||||||||||||||||
| (2) | Represents a non-GAAP financial measure. For more details refer topages 19-25. | ||||||||||||||||||||
| --- | --- |
Note: Numbers may not foot due to rounding
12
| ALLY FINANCIAL INC.<br><br><br>CORPORATE AND OTHER - CONDENSED FINANCIAL STATEMENTS | ||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| ($ in millions) | QUARTERLY TRENDS | CHANGE VS. | ||||||||||||||||||
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
| 1Q 25 | 4Q 24 | 3Q 24 | 2Q 24 | 1Q 24 | 4Q 24 | 1Q 24 | ||||||||||||||
| Income Statement | ||||||||||||||||||||
| Net financing revenue | ||||||||||||||||||||
| Total financing revenue and other interest income | $ | 557 | $ | 592 | $ | 646 | $ | 639 | $ | 698 | $ | (35 | ) | $ | (141 | ) | ||||
| Interest expense | 479 | 573 | 632 | 647 | 750 | (94 | ) | (271 | ) | |||||||||||
| Net financing revenue | 78 | 19 | 14 | (8 | ) | (52 | 59 | 130 | ||||||||||||
| Other revenue | ||||||||||||||||||||
| Other gain/(loss) on investments, net | (495 | ) | — | (2 | ) | (1 | ) | (6 | (495 | ) | (489 | ) | ||||||||
| Gain/(loss) on mortgage and automotive loans, net | 1 | 4 | 6 | 5 | 6 | (3 | ) | (5 | ) | |||||||||||
| Other income, net of losses ^(1)^ | 67 | 44 | 52 | 40 | 26 | 23 | 41 | |||||||||||||
| Total other revenue | (427 | ) | 48 | 56 | 44 | 26 | (475 | ) | (453 | ) | ||||||||||
| Total net revenue | (349 | ) | 67 | 70 | 36 | (26 | (416 | ) | (323 | ) | ||||||||||
| Provision for loan losses | (257 | ) | 67 | 55 | 71 | 60 | (324 | ) | (317 | ) | ||||||||||
| Noninterest expense | ||||||||||||||||||||
| Compensation and benefits expense | 267 | 235 | 226 | 239 | 286 | 32 | (19 | ) | ||||||||||||
| Goodwill impairment | 305 | 118 | — | — | — | 187 | 305 | |||||||||||||
| Other operating expense ^(2)^ | 73 | 91 | 86 | 100 | 95 | (18 | ) | (22 | ) | |||||||||||
| Total noninterest expense | 645 | 444 | 312 | 339 | 381 | 201 | 264 | |||||||||||||
| Pre-tax income (loss) | $ | (737 | ) | $ | (444 | ) | $ | (297 | ) | $ | (374 | ) | $ | (467 | $ | (293 | ) | $ | (270 | ) |
| Change in the fair value of equity securities ^(3)^ | (2 | ) | (2 | ) | (2 | ) | 1 | 6 | (1 | ) | (9 | ) | ||||||||
| Core OID ^(4)^ | 16 | 15 | 14 | 14 | 13 | 1 | 2 | |||||||||||||
| Repositioning ^(3)^ | 503 | 140 | — | — | 10 | 363 | 493 | |||||||||||||
| Core pre-tax income (loss) ^(4)^ | $ | (221 | ) | $ | (291 | ) | $ | (285 | ) | $ | (359 | ) | $ | (438 | $ | 70 | $ | 217 | ||
| Balance Sheet (Period-End) | ||||||||||||||||||||
| Cash, trading and investment securities | $ | 32,837 | $ | 32,599 | $ | 32,375 | $ | 30,684 | $ | 31,990 | $ | 238 | $ | 847 | ||||||
| Loans<br>held-for-sale, net | 52 | 50 | 238 | 209 | 140 | 2 | (88 | ) | ||||||||||||
| Consumer loans | 16,944 | 19,477 | 19,699 | 19,891 | 20,222 | (2,533 | ) | (3,278 | ) | |||||||||||
| Commercial loans | 237 | 239 | 252 | 241 | 242 | (2 | ) | (5 | ) | |||||||||||
| Intercompany loans^(5)^ | (804 | ) | (864 | ) | (826 | ) | (727 | ) | (719 | 60 | (85 | ) | ||||||||
| Allowance for loan losses | (21 | ) | (341 | ) | (329 | ) | (324 | ) | (315 | 320 | 294 | |||||||||
| Total finance receivables and loans, net | 16,356 | 18,511 | 18,796 | 19,081 | 19,430 | (2,155 | ) | (3,074 | ) | |||||||||||
| Other assets | 9,483 | 8,590 | 7,825 | 7,838 | 7,266 | 893 | 2,217 | |||||||||||||
| Assets of operations<br>held-for-sale ^(6)^ | 2,440 | — | — | — | — | 2,440 | 2,440 | |||||||||||||
| Total assets | $ | 61,168 | **** | $ | 59,750 | **** | $ | 59,234 | **** | $ | 57,812 | **** | $ | 58,826 | $ | 1,418 | **** | $ | 2,342 | **** |
| Core OID Amortization Schedule ^(4)^ | **** | 2025 | **** | **** | 2026 | **** | **** | 2027 | **** | **** | 2028 | **** | **** | 2029 & After | ||||||
| Remaining Core OID amortization expense | $ | 50 | $ | 77 | $ | 89 | $ | 104 | Avg = 133/yr |
All values are in US Dollars.
| (1) | Includes the impact of centralized asset and liability management, corporate overhead allocation activities,consumer mortgage portfolio, Ally Invest activity, Ally Lending activity, and Credit Card. Sale of Ally Lending closed 03/01/2024. |
|---|---|
| (2) | Other operating expenses includes corporate overhead allocated to the other business segments. Amounts ofcorporate overhead allocated were $302 million for 1Q25, $296 million for 4Q24, $286 million for 3Q24, $280 million for 2Q24, and $310 million for 1Q24. The receiving business segment records the allocation of corporateoverhead expense within other operating expenses. |
| --- | --- |
| (3) | For more details refer to pages 23-25. |
| --- | --- |
| (4) | Represents a non-GAAP financial measure. For more details refer topages 23-25. |
| --- | --- |
| (5) | Intercompany loans related to activity between Insurance and Corporate and Other for liquidity purposes. |
| --- | --- |
| (6) | Credit Card moved to Assets of OperationsHeld-For-Sale (HFS) on 03/31/25. Sale of Credit Card closed on 04/01/25. |
| --- | --- |
Note: Numbers may not foot due to rounding
13
| ALLY FINANCIAL INC.<br><br><br>CREDIT RELATED INFORMATION | ||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| ( in millions) | CHANGE VS. | |||||||||||||||||||
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
| 4Q 24 | 3Q 24 | 2Q 24 | 1Q 24 | 4Q 24 | 1Q 24 | |||||||||||||||
| Asset Quality - Consolidated (1) | ||||||||||||||||||||
| Ending loan balance | 133,485 | $ | 136,030 | $ | 137,501 | $ | 138,783 | $ | 137,960 | $ | (2,545 | ) | $ | (4,475 | ) | |||||
| 30+ Accruing DPD | 3,224 | $ | 3,800 | $ | 3,645 | $ | 3,737 | $ | 3,347 | $ | (576 | ) | $ | (123 | ) | |||||
| 30+ Accruing DPD % | 2.42 | % | 2.79 | % | 2.65 | % | 2.69 | % | 2.43 | % | ||||||||||
| 60+ Accruing DPD | 869 | $ | 1,026 | $ | 987 | $ | 1,087 | $ | 948 | $ | (157 | ) | $ | (79 | ) | |||||
| 60+ Accruing DPD % | 0.65 | % | 0.75 | % | 0.72 | % | 0.78 | % | 0.69 | % | ||||||||||
| Non-performing loans (NPLs) | 1,417 | $ | 1,486 | $ | 1,490 | $ | 1,215 | $ | 1,252 | $ | (69 | ) | $ | 165 | ||||||
| Net charge-offs (NCOs) | 507 | $ | 543 | $ | 517 | $ | 435 | $ | 539 | $ | (36 | ) | $ | (32 | ) | |||||
| Net charge-off rate (2) | 1.50 | % | 1.59 | % | 1.50 | % | 1.26 | % | 1.55 | % | ||||||||||
| Provision for loan losses | 191 | $ | 557 | $ | 645 | $ | 457 | $ | 507 | $ | (366 | ) | $ | (316 | ) | |||||
| Allowance for loan losses (ALLL) | 3,398 | $ | 3,714 | $ | 3,700 | $ | 3,572 | $ | 3,550 | $ | (316 | ) | $ | (152 | ) | |||||
| ALLL as % of Loans (3) (4) | 2.55 | % | 2.73 | % | 2.69 | % | 2.57 | % | 2.57 | % | ||||||||||
| ALLL as % of NPLs (3) | 240 | % | 250 | % | 248 | % | 294 | % | 284 | % | ||||||||||
| ALLL as % of NCOs (3) | 168 | % | 171 | % | 179 | % | 205 | % | 165 | % | ||||||||||
| U.S. Auto Delinquencies - HFI Retail Contract ‘s (5) | ||||||||||||||||||||
| 30+ Delinquent contract | 3,181 | $ | 3,681 | $ | 3,534 | $ | 3,620 | $ | 3,239 | $ | (500 | ) | $ | (58 | ) | |||||
| % of retail contract outstanding | 3.79 | % | 4.39 | % | 4.24 | % | 4.33 | % | 3.88 | % | ||||||||||
| 60+ Delinquent contract | 852 | $ | 984 | $ | 951 | $ | 1,049 | $ | 915 | $ | (132 | ) | $ | (63 | ) | |||||
| % of retail contract outstanding | 1.02 | % | 1.18 | % | 1.14 | % | 1.26 | % | 1.10 | % | ||||||||||
| U.S. Auto Annualized Net Charge-Offs - HFI Retail Contract ‘s | ||||||||||||||||||||
| Net charge-offs | 445 | $ | 488 | $ | 467 | $ | 378 | $ | 477 | $ | (43 | ) | $ | (32 | ) | |||||
| % of avg. HFI assets (2) | 2.12 | % | 2.34 | % | 2.24 | % | 1.81 | % | 2.27 | % | ||||||||||
| U.S. Auto Annualized Net Charge-Offs - HFI Commercial Contract ‘s (6) | ||||||||||||||||||||
| Net charge-offs | 0 | $ | 0 | $ | (0 | ) | $ | (4 | ) | $ | 1 | $ | 0 | $ | (1 | ) | ||||
| % of avg. HFI assets (2) | — | % | — | % | (0.01 | )% | (0.07 | )% | 0.02 | % |
All values are in US Dollars.
| (1) | Loans within this table are classified asheld-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-offsdivided 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) | Excludes provision for credit losses related to our reserve for unfunded commitments. |
| --- | --- |
| (4) | 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. |
| --- | --- |
| (5) | Auto delinquency metrics include accruing contracts only. |
| --- | --- |
| (6) | Commercial Auto data includes Insurance advances |
| --- | --- |
Note: Numbers may not foot due to rounding
14
| ALLY FINANCIAL INC.<br><br><br>CREDIT RELATED INFORMATION, CONTINUED | ||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| ( in millions) | ||||||||||||||||||||
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
| CHANGE VS. | ||||||||||||||||||||
| 4Q 24 | 3Q 24 | 2Q 24 | 1Q 24 | 4Q 24 | 1Q 24 | |||||||||||||||
| Automotive Finance (1) | ||||||||||||||||||||
| Consumer | ||||||||||||||||||||
| Net Charge-offs | 445 | $ | 488 | $ | 467 | $ | 378 | $ | 477 | $ | (43 | ) | $ | (32 | ) | |||||
| Allowance for loan losses | 3,144 | $ | 3,170 | $ | 3,166 | $ | 3,055 | $ | 3,050 | $ | (26 | ) | $ | 94 | ||||||
| Total consumer loans (2) | 83,868 | $ | 83,757 | $ | 83,424 | $ | 83,528 | $ | 83,406 | $ | 111 | $ | 462 | |||||||
| Coverage ratio (3) | 3.75 | % | 3.78 | % | 3.80 | % | 3.65 | % | 3.65 | % | ||||||||||
| Commercial (4) | ||||||||||||||||||||
| Net Charge-offs | — | $ | — | $ | — | $ | (4 | ) | $ | 1 | $ | — | $ | (1 | ) | |||||
| Allowance for loan losses | 56 | $ | 41 | $ | 38 | $ | 37 | $ | 33 | $ | 15 | $ | 23 | |||||||
| Total commercial loans | 21,560 | $ | 22,913 | $ | 23,854 | $ | 25,220 | $ | 23,765 | $ | (1,353 | ) | $ | (2,205 | ) | |||||
| Coverage ratio | 0.26 | % | 0.18 | % | 0.16 | % | 0.15 | % | 0.14 | % | ||||||||||
| Consumer Mortgage (1) | ||||||||||||||||||||
| Net Charge-offs | (1 | ) | $ | (1 | ) | $ | (1 | ) | $ | (1 | ) | $ | — | $ | — | $ | (1 | ) | ||
| Allowance for loan losses | 18 | $ | 19 | $ | 19 | $ | 19 | $ | 21 | $ | (1 | ) | $ | (3 | ) | |||||
| Total consumer loans | 16,963 | $ | 17,234 | $ | 17,501 | $ | 18,008 | $ | 18,441 | $ | (271 | ) | $ | (1,478 | ) | |||||
| Coverage ratio | 0.11 | % | 0.10 | % | 0.11 | % | 0.11 | % | 0.11 | % | ||||||||||
| Consumer Other - Ally Credit Card (1) | ||||||||||||||||||||
| Net Charge-offs | 63 | $ | 56 | $ | 52 | $ | 62 | 62 | $ | 7 | $ | 1 | ||||||||
| Allowance for loan losses | — | $ | 319 | $ | 307 | $ | 302 | 291 | $ | (319 | ) | $ | (291 | ) | ||||||
| Total consumer loans | — | $ | 2,294 | $ | 2,170 | $ | 2,049 | 1,962 | $ | (2,294 | ) | $ | (1,962 | ) | ||||||
| Coverage ratio | — | % | 13.92 | % | 14.14 | % | 14.73 | % | 14.85 | % | ||||||||||
| Corporate Finance (1) | ||||||||||||||||||||
| Net Charge-offs | — | $ | — | $ | (1 | ) | $ | — | $ | (1 | ) | $ | — | $ | 1 | |||||
| Allowance for loan losses | 177 | $ | 162 | $ | 167 | $ | 156 | $ | 152 | $ | 15 | $ | 25 | |||||||
| Total commercial loans | 10,857 | $ | 9,593 | $ | 10,300 | $ | 9,737 | $ | 10,144 | $ | 1,264 | $ | 713 | |||||||
| Coverage ratio | 1.63 | % | 1.69 | % | 1.62 | % | 1.60 | % | 1.50 | % | ||||||||||
| Corporate and Other (1) | ||||||||||||||||||||
| Net Charge-offs | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | |||||||
| Allowance for loan losses | 3 | $ | 3 | $ | 3 | $ | 3 | $ | 3 | $ | — | $ | — | |||||||
| Total commercial loans | 237 | $ | 239 | $ | 252 | $ | 241 | $ | 242 | $ | (2 | ) | $ | (5 | ) | |||||
| Coverage ratio | 1.36 | % | 1.36 | % | 1.36 | % | 1.36 | % | 1.36 | % |
All values are in US Dollars.
Note: Numbers may not foot due to rounding.
| (1) | ALLL coverage ratios are based on the domestic allowance as a percentage of finance receivables and loansreported 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 basisadjustments 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 ($19M) of fair value adjustment for loans in hedge accounting relationships in 1Q25, ($51M) in 4Q24,$28M in 3Q24, ($166M) in 2Q24 and ($181M) in 1Q24. |
| --- | --- |
| (3) | Excludes ($19M) of fair value adjustment for loans in hedge accounting relationships in 1Q25, ($51M) in 4Q24,$28M in 3Q24, ($166M) in 2Q24 and ($181M) in 1Q24. |
| --- | --- |
| (4) | Commercial Auto data includes Insurance advances. |
| --- | --- |
15
| ALLY FINANCIAL INC.<br><br><br>CAPITAL | |||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| ($ in billions) | QUARTERLY TRENDS | CHANGE VS. | |||||||||||||||||||
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
| 1Q 25 | 4Q 24 | 3Q 24 | 2Q 24 | 1Q 24 | 4Q 24 | 1Q 24 | |||||||||||||||
| Capital | |||||||||||||||||||||
| Risk-weighted assets | $ | 153.6 | $ | 153.3 | $ | 156.3 | $ | 157.5 | $ | 158.3 | $ | 0.3 | $ | (4.7 | ) | ||||||
| Common Equity Tier 1 (CET1) capital ratio | 9.5 | % | 9.8 | % | 9.8 | % | 9.6 | % | 9.4 | % | |||||||||||
| Tier 1 capital ratio | 11.0 | % | 11.3 | % | 11.2 | % | 11.0 | % | 10.8 | % | |||||||||||
| Total capital ratio | 12.8 | % | 13.2 | % | 12.9 | % | 12.7 | % | 12.5 | % | |||||||||||
| Tangible common equity / Tangible assets ^(1)(2)^ | 6.0 | % | 5.7 | % | 5.9 | % | 5.6 | % | 5.5 | % | |||||||||||
| Tangible common equity / Risk-weighted assets ^(1)^ | 7.6 | % | 7.2 | % | 7.3 | % | 6.8 | % | 6.7 | % | |||||||||||
| Shareholders’ equity | $ | 14.2 | $ | 13.9 | $ | 14.4 | $ | 13.7 | $ | 13.6 | $ | 0.3 | $ | 0.6 | |||||||
| add: CECL phase-in adjustment | — | 0.3 | 0.3 | 0.3 | 0.3 | (0.3 | ) | (0.3 | ) | ||||||||||||
| less: Certain AOCI items and other adjustments | 2.7 | 3.2 | 2.6 | 3.3 | 3.3 | (0.5 | ) | (0.6 | ) | ||||||||||||
| less: Adjustments related to deferral method accounting ^(3)^ | — | — | 0.3 | 0.2 | 0.1 | — | (0.1 | ) | |||||||||||||
| Preferred equity | (2.3 | ) | (2.3 | ) | (2.3 | ) | (2.3 | ) | (2.3 | ) | — | — | |||||||||
| Common Equity Tier 1 capital | $ | 14.6 | $ | 15.1 | $ | 15.3 | $ | 15.1 | $ | 14.9 | $ | (0.5 | ) | $ | (0.3 | ) | |||||
| Common Equity Tier 1 capital | $ | 14.6 | $ | 15.1 | $ | 15.3 | $ | 15.1 | $ | 14.9 | $ | (0.5 | ) | $ | (0.3 | ) | |||||
| add: Preferred equity | 2.3 | 2.3 | 2.3 | 2.3 | 2.3 | — | — | ||||||||||||||
| less: Other adjustments | (0.1 | ) | (0.1 | ) | (0.1 | ) | (0.1 | ) | (0.1 | ) | — | — | |||||||||
| Tier 1 capital | $ | 16.9 | $ | 17.3 | $ | 17.6 | $ | 17.4 | $ | 17.2 | $ | (0.4 | ) | $ | (0.3 | ) | |||||
| Tier 1 capital | $ | 16.9 | $ | 17.3 | $ | 17.6 | $ | 17.4 | $ | 17.2 | $ | (0.4 | ) | $ | (0.3 | ) | |||||
| add: Qualifying subordinated debt | 1.0 | 1.0 | 0.7 | 0.7 | 0.7 | — | 0.3 | ||||||||||||||
| Allowance for loan and lease losses includible in Tier 2 capital and other adjustments | 1.9 | 1.9 | 1.9 | 1.9 | 1.9 | — | — | ||||||||||||||
| Total capital | $ | 19.7 | $ | 20.2 | $ | 20.2 | $ | 20.0 | $ | 19.8 | $ | (0.5 | ) | $ | (0.1 | ) | |||||
| Total shareholders’ equity | $ | 14.2 | $ | 13.9 | $ | 14.4 | $ | 13.7 | $ | 13.6 | $ | 0.3 | $ | 0.6 | |||||||
| less: Preferred equity | (2.3 | ) | (2.3 | ) | (2.3 | ) | (2.3 | ) | (2.3 | ) | — | — | |||||||||
| Goodwill and intangible assets, net of deferred tax liabilities | (0.3 | ) | (0.6 | ) | (0.7 | ) | (0.7 | ) | (0.7 | ) | 0.3 | 0.4 | |||||||||
| Tangible common equity ^(1)^ | $ | 11.6 | $ | 11.0 | $ | 11.4 | $ | 10.7 | $ | 10.5 | $ | 0.6 | $ | 1.1 | |||||||
| Total assets | $ | 193.3 | $ | 191.8 | $ | 192.7 | $ | 192.4 | $ | 192.8 | $ | 1.5 | $ | 0.5 | |||||||
| less: Goodwill and intangible assets, net of deferred tax liabilities | (0.3 | ) | (0.6 | ) | (0.7 | ) | (0.7 | ) | (0.7 | ) | 0.3 | 0.4 | |||||||||
| Tangible assets ^(2)^ | $ | 193.0 | $ | 191.2 | $ | 192.0 | $ | 191.7 | $ | 192.1 | $ | 1.8 | $ | 0.9 |
Note: Numbers may not foot due to rounding
| (1) | Represents a non-GAAP financial measure. For more details refer topages 23-25. |
|---|---|
| (2) | Ally defines tangible assets as total assets less goodwill and intangible assets, net of deferred taxliabilities. |
| --- | --- |
| (3) | Historical regulatory capital, ratios and RWA have not been recast in relation to the accounting methodchange for EV tax credits as of 12/31/2024. |
| --- | --- |
For more details on the final rules to address the impact of CECL on regulatorycapital by allowing BHCs and banks, including Ally, to delay and subsequently phase-in its impact, see page 24.
16
| ALLY FINANCIAL INC.<br><br><br>LIQUIDITY AND DEPOSITS | ||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| CHANGE VS. | ||||||||||||||||||||
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
| 4Q 24 | 3Q 24 | 2Q 24 | 1Q 24 | 4Q 24 | 1Q 24 | |||||||||||||||
| Consolidated Available Liquidity ( in billions) | ||||||||||||||||||||
| Liquid cash and cash equivalents (1) | 9.5 | $ | 9.6 | $ | 7.9 | $ | 6.7 | $ | 7.4 | $ | (0.1 | ) | $ | 2.1 | ||||||
| Highly liquid securities (2) | 20.3 | 19.9 | 20.8 | 18.9 | 20.9 | 0.4 | (0.6 | ) | ||||||||||||
| Subtotal | 29.8 | **** | $ | 29.5 | **** | $ | 28.8 | **** | $ | 25.6 | **** | $ | 28.3 | **** | $ | 0.3 | **** | $ | 1.5 | **** |
| FHLB Unused Pledged Borrowing Capacity | 11.3 | 12.2 | 12.5 | 12.2 | 13.8 | (0.9 | ) | (2.5 | ) | |||||||||||
| FRB Discount Window Unused Pledged Capacity | 26.9 | 26.7 | 26.7 | 26.5 | 26.3 | 0.3 | 0.6 | |||||||||||||
| Total unused pledged capacity | 38.2 | **** | $ | 38.9 | **** | $ | 39.2 | **** | $ | 38.8 | **** | $ | 40.0 | **** | $ | (0.7 | ) | $ | (1.8 | ) |
| Total current available liquidity | 68.0 | **** | $ | 68.5 | **** | $ | 67.9 | **** | $ | 64.3 | **** | $ | 68.3 | **** | $ | (0.6 | ) | $ | (0.3 | ) |
| Unsecured Long-Term Debt Maturity Profile | 2026 | 2027 | 2028 | 2029 | 2030 &After | |||||||||||||||
| Consolidated remaining maturities (3) | 1.8 | $ | — | $ | 1.5 | $ | 0.8 | $ | 0.9 | $ | 5.4 | |||||||||
| Ally Bank Deposits | ||||||||||||||||||||
| Key Deposit Statistics | ||||||||||||||||||||
| Average retail CD duration (months) | 17.3 | 17.6 | 18.4 | 18.7 | 18.6 | (0.3 | ) | (1.3 | ) | |||||||||||
| Average retail deposit rate | 3.75 | % | 3.97 | % | 4.18 | % | 4.18 | % | 4.25 | % | ||||||||||
| End of Period Deposit Levels ( in millions) | ||||||||||||||||||||
| Retail | 146,069 | $ | 143,430 | $ | 141,449 | $ | 142,075 | $ | 145,147 | $ | 2,639 | $ | 922 | |||||||
| Brokered & other | 5,359 | 8,144 | 10,501 | 10,079 | 9,937 | (2,785 | ) | (4,578 | ) | |||||||||||
| Total deposits | 151,428 | **** | $ | 151,574 | **** | $ | 151,950 | **** | $ | 152,154 | **** | $ | 155,084 | **** | $ | (146 | ) | $ | (3,656 | ) |
| Deposit Mix | ||||||||||||||||||||
| Retail CD | 25 | % | 27 | % | 27 | % | 26 | % | 27 | % | ||||||||||
| MMA/OSA/Checking | 71 | % | 68 | % | 66 | % | 67 | % | 67 | % | ||||||||||
| Brokered & other | 4 | % | 5 | % | 7 | % | 7 | % | 6 | % |
All values are in US Dollars.
Note: Numbers may not foot due to rounding
| (1) | May include the restricted cash accumulation for retained notes maturing within the following 30 days andreturned to Ally on the distribution date |
|---|---|
| (2) | Includes unencumbered UST, Agency MBS, and highly liquid Corporates |
| --- | --- |
| (3) | Excludes retail notes; as of 3/31/2025. Reflects notional value of outstanding bond. Excludes total GAAP OIDand capitalized transaction costs. |
| --- | --- |
17
| ALLY FINANCIAL INC.<br><br><br>NET INTEREST MARGIN | |||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| ($in millions) | QUARTERLY TRENDS | CHANGE VS. | |||||||||||||||||||
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
| 1Q 25 | 4Q 24 | 3Q 24 | 2Q 24 | 1Q 24 | 4Q 24 | 1Q 24 | |||||||||||||||
| Average Balance Details | |||||||||||||||||||||
| Retail Auto Loans | $ | 83,701 | $ | 83,554 | $ | 83,574 | $ | 83,427 | $ | 84,056 | $ | 147 | $ | (355 | ) | ||||||
| Auto Lease (net of dep) | 7,955 | 7,794 | 8,038 | 8,417 | 8,848 | 161 | (893 | ) | |||||||||||||
| Dealer Floorplan | 15,324 | 17,074 | 17,535 | 18,003 | 16,833 | (1,750 | ) | (1,509 | ) | ||||||||||||
| Other Dealer Loans | 6,339 | 6,374 | 6,348 | 6,421 | 6,339 | (35 | ) | — | |||||||||||||
| Corporate Finance | 10,304 | 9,824 | 10,101 | 10,079 | 10,937 | 480 | (633 | ) | |||||||||||||
| Mortgage^(1)^ | 17,104 | 17,438 | 17,922 | 18,302 | 18,578 | (334 | ) | (1,474 | ) | ||||||||||||
| Consumer Other - Ally Lending ^(2)^ | — | — | — | — | 1,274 | — | (1,274 | ) | |||||||||||||
| Consumer Other - Ally Credit Card ^(3)^ | 2,274 | 2,220 | 2,125 | 2,001 | 1,975 | 54 | 299 | ||||||||||||||
| Cash and Cash Equivalents | 9,345 | 8,721 | 7,867 | 7,276 | 7,709 | 624 | 1,636 | ||||||||||||||
| Investment Securities and Other | 28,733 | 29,169 | 29,982 | 29,542 | 30,274 | (436 | ) | (1,541 | ) | ||||||||||||
| Total Earning Assets | $ | 181,079 | **** | $ | 182,168 | **** | $ | 183,492 | **** | $ | 183,468 | **** | $ | 186,823 | **** | $ | (1,089 | ) | $ | (5,744 | ) |
| Interest Revenue | 3,153 | 3,308 | 3,405 | 3,383 | 3,390 | (155 | ) | (237 | ) | ||||||||||||
| Unsecured Debt (ex. Core OID balance) ^(4)^ | $ | 11,797 | $ | 11,083 | $ | 11,243 | $ | 11,053 | $ | 11,290 | $ | 714 | $ | 507 | |||||||
| Secured Debt | 2,096 | 2,155 | 1,364 | 1,227 | 1,409 | (59 | ) | 687 | |||||||||||||
| Deposits ^(5)^ | 150,640 | 151,502 | 152,241 | 152,412 | 155,352 | (862 | ) | (4,712 | ) | ||||||||||||
| Other Borrowings | 4,204 | 4,699 | 5,743 | 7,114 | 7,122 | (495 | ) | (2,918 | ) | ||||||||||||
| Total Funding Sources (ex. Core OID balance)^(4)^ | $ | 168,738 | **** | $ | 169,439 | **** | $ | 170,591 | **** | $ | 171,806 | **** | $ | 175,173 | **** | $ | (701 | ) | $ | (6,435 | ) |
| Interest Expense (ex. Core OID) ^(4)^ | 1,659 | 1,784 | 1,871 | 1,852 | 1,909 | (125 | ) | (250 | ) | ||||||||||||
| Net Financing Revenue (ex. Core OID) ^(4)^ | $ | 1,494 | **** | $ | 1,524 | **** | $ | 1,534 | **** | $ | 1,531 | **** | $ | 1,481 | **** | $ | (30 | ) | $ | 13 | **** |
| Net Interest Margin (yield details) | |||||||||||||||||||||
| Retail Auto Loan | 9.21 | % | 9.27 | % | 9.29 | % | 9.19 | % | 9.07 | % | (0.06 | )% | 0.14 | % | |||||||
| Retail Auto Loan (excl. hedge impact) | 9.11 | % | 9.09 | % | 8.99 | % | 8.86 | % | 8.65 | % | 0.02 | % | 0.46 | % | |||||||
| Auto Lease (net of dep) | 5.69 | % | 6.60 | % | 7.22 | % | 8.49 | % | 7.46 | % | (0.91 | )% | (1.77 | )% | |||||||
| Dealer Floorplan | 6.50 | % | 7.01 | % | 7.68 | % | 7.64 | % | 7.69 | % | (0.51 | )% | (1.19 | )% | |||||||
| Other Dealer Loans | 5.66 | % | 5.60 | % | 5.65 | % | 5.67 | % | 5.61 | % | 0.06 | % | 0.05 | % | |||||||
| Corporate Finance | 8.78 | % | 9.68 | % | 9.82 | % | 10.06 | % | 9.88 | % | (0.90 | )% | (1.10 | )% | |||||||
| Mortgage | 3.23 | % | 3.17 | % | 3.21 | % | 3.26 | % | 3.25 | % | 0.06 | % | (0.02 | )% | |||||||
| Consumer Other - Ally Lending | — | % | — | % | — | % | — | % | 8.77 | % | — | % | (8.77 | )% | |||||||
| Consumer Other - Ally Credit Card ^(3)^ | 21.16 | % | 21.48 | % | 22.13 | % | 21.59 | % | 21.61 | % | (0.32 | )% | (0.45 | )% | |||||||
| Cash and Cash Equivalents ^(6)^ | 4.23 | % | 4.52 | % | 5.14 | % | 4.90 | % | 5.04 | % | (0.29 | )% | (0.81 | )% | |||||||
| Investment Securities and Other | 3.26 | % | 3.34 | % | 3.51 | % | 3.66 | % | 3.60 | % | (0.08 | )% | (0.34 | )% | |||||||
| Total Earning Assets | **** | 7.06 | % | **** | 7.22 | % | **** | 7.38 | % | **** | 7.41 | % | **** | 7.30 | % | **** | (0.16 | )% | **** | (0.24 | )% |
| Unsecured Debt (ex. Core OID & Core OID balance) ^(4)^ | 6.40 | % | 6.37 | % | 6.27 | % | 6.22 | % | 6.19 | % | 0.03 | % | 0.21 | % | |||||||
| Secured Debt | 5.55 | % | 6.29 | % | 6.39 | % | 6.08 | % | 5.74 | % | (0.74 | )% | (0.19 | )% | |||||||
| Deposits ^(5)^ | 3.78 | % | 4.01 | % | 4.23 | % | 4.21 | % | 4.28 | % | (0.23 | )% | (0.50 | )% | |||||||
| Other Borrowings ^(7)^ | 4.03 | % | 3.88 | % | 3.83 | % | 3.86 | % | 3.63 | % | 0.15 | % | 0.40 | % | |||||||
| Total Funding Sources (ex. Core OID & Core OID balance) ^(4)^ | **** | 3.99 | % | **** | 4.19 | % | **** | 4.36 | % | **** | 4.34 | % | **** | 4.38 | % | **** | (0.20 | )% | **** | (0.39 | )% |
| NIM (as reported) | **** | 3.31 | % | **** | 3.30 | % | **** | 3.29 | % | **** | 3.32 | % | **** | 3.16 | % | **** | 0.01 | % | **** | 0.15 | % |
| NIM (ex. Core OID & Core OID balance)^(4)^ | **** | 3.35 | % | **** | 3.33 | % | **** | 3.32 | % | **** | 3.36 | % | **** | 3.19 | % | **** | 0.02 | % | **** | 0.16 | % |
| (1) | Mortgage loans in run-off at the Corporate and Other segment. | ||||||||||||||||||||
| --- | --- | ||||||||||||||||||||
| (2) | Unsecured lending frompoint-of-sale financing. Sale of Ally Lending closed on 03/01/24. | ||||||||||||||||||||
| --- | --- | ||||||||||||||||||||
| (3) | Credit card assets moved to Assets of Operations Held-for-Sale (HFS) on 3/31/25. Sale of Credit Card closed on 04/01/25. | ||||||||||||||||||||
| --- | --- | ||||||||||||||||||||
| (4) | Represents a non-GAAP financial measure. Excludes Core OID frominterest expense and Core OID balance from Unsecured Debt. For more details refer to pages 23-25. | ||||||||||||||||||||
| --- | --- | ||||||||||||||||||||
| (5) | Includes retail, brokered, and other deposits. Other includes sweep deposits and other deposits. | ||||||||||||||||||||
| --- | --- | ||||||||||||||||||||
| (6) | Includes interest expense related to margin received on derivative contracts. Excluding this expense,annualized yields were 4.37% for 1Q25, 4.68% for 4Q24, 5.29% for 3Q24, 5.28% for 2Q24, and 5.35% for 1Q24. (7) Includes FHLB Borrowings, Repurchase Agreements and other. | ||||||||||||||||||||
| --- | --- |
Note: Numbers may not foot due to rounding
18
| ALLY FINANCIAL INC.<br><br><br>EARNINGS PER SHARE RELATED INFORMATION | |||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| ($ in millions, shares in thousands) | QUARTERLY TRENDS | CHANGE VS. | |||||||||||||||||||
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
| 1Q 25 | 4Q 24 | 3Q 24 | 2Q 24 | 1Q 24 | 4Q 24 | 1Q 24 | |||||||||||||||
| Earnings Per Share Data | |||||||||||||||||||||
| GAAP net income (loss) attributable to common shareholders | $ | (253 | ) | $ | 81 | **** | $ | 171 | **** | $ | 191 | **** | $ | 115 | **** | $ | (334 | ) | $ | (368 | ) |
| Weighted-average common shares outstanding - basic<br>^(1)^ | 309,006 | 307,553 | 307,312 | 306,774 | 306,003 | 1,453 | 3,004 | ||||||||||||||
| Weighted-average common shares outstanding - diluted<br>^(1)^ | 309,006 | 311,277 | 311,044 | 309,886 | 308,421 | (2,270 | ) | 585 | |||||||||||||
| Issued shares outstanding (period-end) | 307,152 | 305,388 | 304,715 | 304,656 | 303,978 | 1,765 | 3,174 | ||||||||||||||
| Net income (loss) per share - basic ^(1)^ | $ | (0.82 | ) | $ | 0.26 | **** | $ | 0.55 | **** | $ | 0.63 | **** | $ | 0.38 | **** | $ | (1.08 | ) | $ | (1.19 | ) |
| Net income (loss) per share - diluted ^(1)^ | $ | (0.82 | ) | $ | 0.26 | **** | $ | 0.55 | **** | $ | 0.62 | **** | $ | 0.37 | **** | $ | (1.07 | ) | $ | (1.19 | ) |
| Adjusted Earnings per Share (“Adjusted EPS”) ^(2)^ | |||||||||||||||||||||
| Numerator | |||||||||||||||||||||
| GAAP net income (loss) attributable to common shareholders | $ | (253 | ) | $ | 81 | **** | $ | 171 | **** | $ | 191 | **** | $ | 115 | **** | $ | (334 | ) | $ | (368 | ) |
| Discontinued operations, net of tax | — | 1 | — | — | — | (1 | ) | — | |||||||||||||
| Core OID ^(3)^ | 16 | 15 | 14 | 14 | 13 | 1 | 2 | ||||||||||||||
| Change in the fair value of equity securities ^(4)^ | 13 | 47 | (59 | ) | 28 | (11 | ) | (34 | ) | 23 | |||||||||||
| Core OID, repositioning & change in the fair value of equity securities tax (tax rate21%) | (99 | ) | (38 | ) | 9 | (9 | ) | (3 | ) | (62 | ) | (97 | ) | ||||||||
| Repositioning ^(4)^ | 503 | 140 | — | — | 10 | 363 | 493 | ||||||||||||||
| Core net income attributable to common shareholders ^(3)^ | $ | 179 | **** | $ | 246 | **** | $ | 136 | **** | $ | 224 | **** | $ | 125 | **** | $ | (67 | ) | $ | 54 | **** |
| Denominator | |||||||||||||||||||||
| Weighted-average common shares outstanding - basic or diluted as applicable | **** | 309,006 | **** | **** | 311,277 | **** | **** | 311,044 | **** | **** | 309,886 | **** | **** | 308,421 | **** | **** | (2,270 | ) | **** | 585 | **** |
| Adjusted EPS ^(2)^ | $ | 0.58 | **** | $ | 0.78 | **** | $ | 0.43 | **** | $ | 0.73 | **** | $ | 0.41 | **** | $ | (0.20 | ) | $ | 0.18 | **** |
| GAAP original issue discount amortization expense | $ | 18 | $ | 17 | $ | 17 | $ | 17 | $ | 17 | $ | 1 | $ | 2 | |||||||
| Other OID | (3 | ) | (3 | ) | (3 | ) | (3 | ) | (3 | ) | (0 | ) | 1 | ||||||||
| Core original issue discount (Core OID) amortization expense ^(3)^ | $ | 16 | **** | $ | 15 | **** | $ | 14 | **** | $ | 14 | **** | $ | 13 | **** | $ | 1 | **** | $ | 2 | **** |
| GAAP outstanding original issue discount balance | $ | (745 | ) | $ | (763 | ) | $ | (780 | ) | $ | (797 | ) | $ | (815 | ) | $ | 18 | **** | $ | 70 | **** |
| Other outstanding OID balance | 24 | 27 | 29 | 31 | 35 | (3 | ) | (11 | ) | ||||||||||||
| Core outstanding original issue discount balance (Core OID balance) ^(3)^ | $ | (721 | ) | $ | (736 | ) | $ | (751 | ) | $ | (766 | ) | $ | (779 | ) | $ | 16 | **** | $ | 59 | **** |
| GAAP Net Financing Revenue | $ | 1,478 | **** | $ | 1,509 | **** | $ | 1,520 | **** | $ | 1,517 | **** | $ | 1,468 | **** | $ | (31 | ) | $ | 10 | **** |
| Core OID ^(3)^ | 16 | 15 | 14 | 14 | 13 | 1 | 2 | ||||||||||||||
| Net Financing Revenue (ex. Core OID) ^(3)^ | $ | 1,494 | **** | $ | 1,524 | **** | $ | 1,534 | **** | $ | 1,531 | **** | $ | 1,481 | **** | $ | (30 | ) | $ | 12 | **** |
| GAAP Other Revenue | $ | 63 | **** | $ | 517 | **** | $ | 615 | **** | $ | 505 | **** | $ | 530 | **** | $ | (454 | ) | $ | (467 | ) |
| Repositioning ^(4)^ | 495 | — | — | — | — | 495 | 495 | ||||||||||||||
| Change in the fair value of equity securities ^(4)^ | 13 | 47 | (59 | ) | 28 | (11 | ) | (34 | ) | 23 | |||||||||||
| Adjusted Other Revenue ^(3)^ | $ | 571 | **** | $ | 564 | **** | $ | 556 | **** | $ | 533 | **** | $ | 519 | **** | $ | 8 | **** | $ | 52 | **** |
| GAAP Provision Expense | $ | 191 | **** | $ | 557 | **** | $ | 645 | **** | $ | 457 | **** | $ | 507 | **** | $ | (366 | ) | $ | (316 | ) |
| Repositioning ^(4)^ | 306 | — | — | — | — | 306 | 306 | ||||||||||||||
| Adjusted Provision (ex. Repositioning) ^(3)^ | $ | 497 | **** | $ | 557 | **** | $ | 645 | **** | $ | 457 | **** | $ | 507 | **** | $ | (60 | ) | $ | (10 | ) |
| GAAP Noninterest Expense | $ | 1,634 | **** | $ | 1,360 | **** | $ | 1,225 | **** | $ | 1,286 | **** | $ | 1,308 | **** | $ | 274 | **** | $ | 326 | **** |
| Repositioning and other^(4)^ | (314 | ) | (140 | ) | — | — | (10 | ) | (174 | ) | (304 | ) | |||||||||
| Adjusted Noninterest Expense ^(3)^ | $ | 1,320 | **** | $ | 1,220 | **** | $ | 1,225 | **** | $ | 1,286 | **** | $ | 1,298 | **** | $ | 100 | **** | $ | 22 | **** |
| (1) | Due to the antidilutive effect of the net loss attributable to common shareholders for the first quarter2025, basic weighted average common shares outstanding were used to calculate basic or diluted earnings per share, as applicable. | ||||||||||||||||||||
| --- | --- | ||||||||||||||||||||
| (2) | Adjusted earnings per share (Adjusted EPS) is a non-GAAP financialmeasure 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 thereader better understand the operating performance of the core businesses and their ability to generate earnings. In the numerator of Adjusted EPS, GAAP net income attributable to common shareholders is adjusted for the following items:(1) 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, (2) adds back the tax-effected non-cash Core OID, (3) adjusts for tax-effected repositioning and other which are primarily related to theextinguishment of high cost legacy debt, strategic activities and significant other one-time items, (4) change in fair value of equity securities, (5) excludes significant discrete tax items that donot relate to the operating performance of the core businesses, and adjusts for preferred stock capital actions that have been taken by the company to normalize its capital structure, as applicable for respective periods. See pages 23-25 for details. | ||||||||||||||||||||
| --- | --- | ||||||||||||||||||||
| (3) | Represents a non-GAAP financial measure. For more details refer topages 23-25. (4) For more details refer to pages 23-25. | ||||||||||||||||||||
| --- | --- | ||||||||||||||||||||
| Note: | Numbers may not foot due to rounding | ||||||||||||||||||||
| --- | --- |
19
| ALLY FINANCIAL INC.<br><br><br>ADJUSTED TANGIBLE BOOK PER SHARE RELATED INFORMATION | |||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| ($ in millions, shares in thousands) | QUARTERLY TRENDS | CHANGE VS. | |||||||||||||||||
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
| 1Q 25 | 4Q 24 | 3Q 24 | 2Q 24 | 1Q 24 | 4Q 24 | 1Q 24 | |||||||||||||
| Adjusted Tangible Book Value Per Share (“Adjusted TBVPS”) Information | |||||||||||||||||||
| Numerator | |||||||||||||||||||
| GAAP shareholder’s equity | $ | 14,232 | **** | $ | 13,903 | **** | $ | 14,414 | **** | $ | 13,699 | **** | $ | 13,580 | **** | $ | 329 | $ | 652 |
| Preferred equity | (2,324 | ) | (2,324 | ) | (2,324 | ) | (2,324 | ) | (2,324 | ) | — | — | |||||||
| GAAP common shareholder’s equity | $ | 11,908 | **** | $ | 11,579 | **** | $ | 12,090 | **** | $ | 11,375 | **** | $ | 11,256 | **** | $ | 329 | $ | 652 |
| Goodwill and identifiable intangibles, net of DTLs | (295 | ) | (603 | ) | (707 | ) | (713 | ) | (720 | ) | 308 | 425 | |||||||
| Tangible common equity ^(1)^ | 11,613 | 10,976 | 11,383 | 10,662 | 10,536 | 637 | 1,077 | ||||||||||||
| Tax-effected Core OID balance (21% tax rate) ^(1)^ | (570 | ) | (582 | ) | (594 | ) | (605 | ) | (616 | ) | 12 | 46 | |||||||
| Adjusted tangible book value ^(2)^ | $ | 11,044 | **** | $ | 10,395 | **** | $ | 10,790 | **** | $ | 10,057 | **** | $ | 9,920 | **** | $ | 649 | $ | 1,123 |
| Denominator | |||||||||||||||||||
| Issued shares outstanding (period-end,thousands) | **** | 307,152 | **** | **** | 305,388 | **** | **** | 304,715 | **** | **** | 304,656 | **** | **** | 303,978 | **** | **** | 1,765 | **** | 3,174 |
| GAAP shareholder’s equity per share | $ | 46.34 | **** | $ | 45.53 | **** | $ | 47.30 | **** | $ | 44.97 | **** | $ | 44.67 | **** | $ | 0.81 | $ | 1.66 |
| Preferred equity per share | (7.57 | ) | (7.61 | ) | (7.63 | ) | (7.63 | ) | (7.65 | ) | 0.04 | 0.08 | |||||||
| GAAP common shareholder’s equity per share | $ | 38.77 | **** | $ | 37.92 | **** | $ | 39.68 | **** | $ | 37.34 | **** | $ | 37.03 | **** | $ | 0.85 | $ | 1.74 |
| Goodwill and identifiable intangibles, net of DTLs per share | (0.96 | ) | (1.97 | ) | (2.32 | ) | (2.34 | ) | (2.37 | ) | 1.01 | 1.41 | |||||||
| Tangible common equity per share ^(1)^ | 37.81 | 35.94 | 37.36 | 35.00 | 34.66 | 1.87 | 3.15 | ||||||||||||
| Tax-effected Core OID balance (21% tax rate) per<br>share ^(1)^ | (1.85 | ) | (1.90 | ) | (1.95 | ) | (1.99 | ) | (2.03 | ) | 0.05 | 0.17 | |||||||
| Adjusted tangible book value per share ^(2)^ | $ | 35.95 | **** | $ | 34.04 | **** | $ | 35.41 | **** | $ | 33.01 | **** | $ | 32.63 | **** | $ | 1.92 | $ | 3.32 |
| (1) | Represents a non-GAAP financial measure. For more details refer topages 23-25. | ||||||||||||||||||
| --- | --- | ||||||||||||||||||
| (2) | Adjusted tangible book value per share (Adjusted TBVPS) is a non-GAAPfinancial measure that reflects the book value of equity attributable to shareholders even if Core OID balance were accelerated immediately through the financial statements. As a result, management believes Adjusted TBVPS provides the reader with anassessment of value that is more conservative than GAAP common shareholder’s equity per share. Adjusted TBVPS generally adjusts common equity for (1) goodwill and identifiable intangibles, net of DTLs, and(2) tax-effected Core OID balance to reduce tangible common equity in the event the corresponding discounted bonds are redeemed/tendered and (3) Series G discount which reduces tangible common equityas the company has normalized its capital structure, as applicable for respective periods. | ||||||||||||||||||
| --- | --- |
Note: Numbers may not foot due torounding
20
| ALLY FINANCIAL INC.<br><br><br>CORE ROTCE RELATED INFORMATION | ||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| ( in millions) unless noted otherwise | CHANGE VS. | |||||||||||||||||||
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
| 4Q 24 | 3Q 24 | 2Q 24 | 1Q 24 | 4Q 24 | 1Q 24 | |||||||||||||||
| Core Return on Tangible Common Equity (“Core ROTCE”) | ||||||||||||||||||||
| Numerator | ||||||||||||||||||||
| GAAP net income (loss) attributable to common shareholders | (253 | ) | $ | 81 | **** | $ | 171 | **** | $ | 191 | **** | $ | 115 | **** | $ | (334 | ) | $ | (368 | ) |
| Discontinued operations, net of tax | — | 1 | — | — | — | (1 | ) | — | ||||||||||||
| Core OID (2) | 16 | 15 | 14 | 14 | 13 | 1 | 2 | |||||||||||||
| Change in the fair value of equity securities (2) | 13 | 47 | (59 | ) | 28 | (11 | ) | (34 | ) | 23 | ||||||||||
| Core OID, repositioning & change in the fair value of equity securities tax (tax rate<br>21%) | (99 | ) | (38 | ) | 9 | (9 | ) | (3 | ) | (62 | ) | (97 | ) | |||||||
| Repositioning (2) | 503 | 140 | — | — | 10 | 363 | 493 | |||||||||||||
| Core net income attributable to common shareholders (1) | 179 | **** | $ | 246 | **** | $ | 136 | **** | $ | 224 | **** | $ | 125 | **** | $ | (67 | ) | $ | 54 | **** |
| Denominator (average, millions) | ||||||||||||||||||||
| GAAP shareholder’s equity | 14,068 | **** | $ | 14,159 | **** | $ | 14,057 | **** | $ | 13,640 | **** | $ | 13,642 | **** | $ | (91 | ) | $ | 426 | **** |
| Preferred equity | (2,324 | ) | (2,324 | ) | (2,324 | ) | (2,324 | ) | (2,324 | ) | — | — | ||||||||
| Goodwill & identifiable intangibles, net of deferred tax liabilities<br>(“DTLs”) | (449 | ) | (655 | ) | (710 | ) | (717 | ) | (723 | ) | 206 | 275 | ||||||||
| Tangible common equity (1) | 11,295 | $ | 11,180 | $ | 11,023 | $ | 10,599 | $ | 10,594 | $ | 115 | $ | 701 | |||||||
| Core OID balance | (729 | ) | (744 | ) | (759 | ) | (773 | ) | (786 | ) | 15 | 57 | ||||||||
| Net deferred tax asset (“DTA”) | (1,923 | ) | (1,713 | ) | (1,531 | ) | (1,472 | ) | (1,325 | ) | (209 | ) | (597 | ) | ||||||
| Normalized common equity | 8,644 | **** | $ | 8,723 | **** | $ | 8,733 | **** | $ | 8,354 | **** | $ | 8,482 | **** | $ | (79 | ) | $ | 161 | **** |
| Core Return on Tangible Common Equity (3) | 8.3 | % | **** | 11.3 | % | **** | 6.2 | % | **** | 10.7 | % | **** | 5.9 | % |
All values are in US Dollars.
| (1) | Represents a non-GAAP measure. See pages 23-25 for methodology and detail. |
|---|---|
| (2) | For more details see pages 23-25. |
| --- | --- |
| (3) | Core return on tangible common equity (Core ROTCE) is a non-GAAPfinancial 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. For purposes of this calculation, tangible common equityis adjusted for Core OID balance and net DTA. Ally’s Core net income attributable to common shareholders for purposes of calculating Core ROTCE is based on the actual effective tax rate for the period adjusted for significant discrete tax itemsincluding tax reserve releases, which aligns with the methodology used in calculating adjusted earnings per share. |
| --- | --- |
| (1) | In the numerator of Core ROTCE, GAAP net income attributable to common shareholders is adjusted fordiscontinued operations net of tax, tax-effected Core OID, tax-effected repositioning and other which are primarily related to the extinguishment of high-cost legacydebt, strategic activities and significant other one-time items, change in fair value of equity securities, significant discrete tax items, and preferred stock capital actions, as applicable for respectiveperiods. |
| --- | --- |
| (2) | In the denominator, GAAP shareholder’s equity is adjusted for goodwill and identifiable intangibles netof DTL, Core OID balance, and net DTA. |
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Note: Numbers may not foot due to rounding
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| ALLY FINANCIAL INC.<br><br><br>ADJUSTED EFFICIENCY RATIO RELATED INFORMATION | |||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| ($ in millions) | QUARTERLY TREND | CHANGE VS. | |||||||||||||||||||
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
| 1Q 25 | 4Q 24 | 3Q 24 | 2Q 24 | 1Q 24 | 4Q 24 | 1Q 24 | |||||||||||||||
| Adjusted Efficiency Ratio Calculation | |||||||||||||||||||||
| Numerator | |||||||||||||||||||||
| GAAP Noninterest Expense | $ | 1,634 | $ | 1,360 | $ | 1,225 | $ | 1,286 | $ | 1,308 | $ | 274 | $ | 326 | |||||||
| Insurance expense | (392 | ) | (343 | ) | (365 | ) | (405 | ) | (340 | ) | (49 | ) | (52 | ) | |||||||
| Repositioning ^(2)^ | (314 | ) | (140 | ) | — | — | (10 | ) | (174 | ) | (304 | ) | |||||||||
| Adjusted noninterest expense for the efficiency ratio | $ | 928 | **** | $ | 877 | **** | $ | 860 | **** | $ | 881 | **** | $ | 958 | **** | $ | 51 | **** | $ | (30 | ) |
| Denominator | |||||||||||||||||||||
| Total net revenue | $ | 1,541 | $ | 2,026 | $ | 2,135 | $ | 2,022 | $ | 1,998 | $ | (485 | ) | $ | (457 | ) | |||||
| Core OID ^(2)^ | 16 | 15 | 14 | 14 | 13 | 1 | 2 | ||||||||||||||
| Insurance revenue | (394 | ) | (379 | ) | (467 | ) | (365 | ) | (410 | ) | (15 | ) | 16 | ||||||||
| Repositioning ^(2)^ | 495 | — | — | — | — | 495 | 495 | ||||||||||||||
| Adjusted net revenue for the efficiency ratio | $ | 1,658 | **** | $ | 1,662 | **** | $ | 1,682 | **** | $ | 1,671 | **** | $ | 1,601 | **** | $ | (4 | ) | $ | 57 | **** |
| Adjusted Efficiency Ratio ^(1)^ | **** | 56.0 | % | **** | 52.8 | % | **** | 51.1 | % | **** | 52.7 | % | **** | 59.8 | % | ||||||
| (1) | Adjusted efficiency ratio is a non-GAAP financial measure thatmanagement 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 segmentexpense, Rep and warrant expense, and repositioning and other which is primarily related to the extinguishment of high cost legacy debt, strategic activities and significant one-time items, as applicable forrespective periods. In the denominator, total net revenue is adjusted for Insurance segment revenue, Core OID, and repositioning items. See page 11 for the combined ratio for the Insurance segment which management uses as a primary measure ofunderwriting profitability for the Insurance business. | ||||||||||||||||||||
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| (2) | For more details see pages 23-25. | ||||||||||||||||||||
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Note: Numbers may not foot due to rounding
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| ALLY FINANCIAL INC. |
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The following are non-GAAP financial measures which Ally believesare important to the reader of the Consolidated Financial Statements, but which are supplemental to and not a substitute for GAAP measures: Accelerated issuance expense (Accelerated OID), Adjusted earnings per share (Adjusted EPS), Adjustedefficiency ratio, Adjusted noninterest expense, Adjusted other revenue, Adjusted tangible book value per share (Adjusted TBVPS), Adjusted total net revenue, Core net income attributable to common shareholders, Core original issue discount (Core OID)amortization expense, Core outstanding original issue discount balance (Core OID balance), Core pre-tax income, Core return on tangible common equity (Core ROTCE), Investment income and other (adjusted), Netfinancing revenue (excluding Core OID), Net interest margin (excluding Core OID), and Tangible Common Equity. These measures are used by management and we believe are useful to investors in assessing the company’s operating performance andcapital.
1) Accelerated issuance expense (Accelerated OID) is the recognition of issuance expenses related to calls of redeemable debt.
2) 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 attributable to common shareholders is adjusted for the following items: (1) 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, (2) adds back the tax-effected non-cash Core OID, (3) adjusts for tax-effected repositioning and other which are primarily related to the extinguishment of high cost legacy debt, strategic activities and significant other one-time items, (4) excludes change in fair value of equity securities, (5) excludes significant discrete tax items that do not relate to the operating performance of the core businesses, and adjusts for preferred stock capital actions that have been taken by the company to normalize its capital structure, as applicable for respective periods.
3) 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.
(1) In the numerator of Adjusted efficiency ratio, total noninterest expense is adjusted for Rep and warrant expense, Insurance segment expense, and repositioning and other which are primarily related to the extinguishment of high-cost legacy debt, strategic activities and significant other one-time items, as applicable for respective periods.
(2) In the denominator, total net revenue is adjusted for Core OID and Insurance segment revenue.
4) Adjusted noninterest expense is a non-GAAP financial measure that adjusts GAAP noninterest expense for repositioning items. Management believes adjusted noninterest expense is a helpful financial metric because it enables the reader better understand the business’ expenses excluding nonrecurring items.
5) Adjusted other revenue is a non-GAAP financial measure that adjusts GAAP other revenue for OID expenses, repositioning, and change in fair value of equity securities.
Management believes adjusted other revenue is a helpful financial metric because it enables the reader to better understand the business’ ability to generate other revenue.
6) Adjusted Provision for Credit Lossesis a non-GAAP financial measure that adjusts GAAP provision for credit losses for repositioning items. Management believes adjusted provision for credit losses is a helpful financial metric because it enables the reader better understand the business’s expenses excluding nonrecurring items.
7) Adjusted tangible book value per share (AdjustedTBVPS) is a non-GAAP financial measure that reflects the book value of equity attributable to shareholders even if Core OID balance 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: (1) goodwill and identifiable intangibles, net of DTLs, (2) tax-effected Core OID balance to reduce tangible common equity in the event the corresponding discounted bonds are redeemed/tendered, and (3) Series G discount which reduces tangible common equity as the company has normalized its capital structure, as applicable for respective periods. Note: In December 2017, tax-effected Core OID balance was adjusted from a statutory U.S. Federal tax rate of 35% to 21% (“rate”) as a result of changes to U.S. tax law. The adjustment conservatively increased the tax-effected Core OID balance and consequently reduced Adjusted TBVPS as any acceleration of the non-cash charge in future periods would flow through the financial statements at a 21% rate versus a previously modeled 35% rate.
8) Adjusted total net revenue is a non-GAAP financial measure that management believes is helpful for readers to understand the ongoing ability of the company to generate revenue. For purposes of this calculation, GAAP net financing revenue is adjusted by excluding Core OID to calculate net financing revenue ex. core OID. GAAP other revenue is adjusted for OID expenses, repositioning, and change in fair value of equity securities to calculate adjusted other revenue. Adjusted total net revenue is calculated by adding net financing revenue ex. core OID to adjusted other revenue.
9) Change in fair value of equity securities impacts the Insurance, Corporate Finance and Corporate and Other segments. The change reflects fair value adjustments to equity securities that are reported at fair value. Management believes the change in fair value of equity securities should be removed from select financial measures because it enables the reader to better understand the business’ ongoing ability to generate revenue and income.
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| ALLY FINANCIAL INC. |
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The following are non-GAAP financial measures which Ally believes are important to the reader of theConsolidated Financial Statements, but which are supplemental to and not a substitute for GAAP measures: Accelerated issuance expense (Accelerated OID), Adjusted earnings per share (Adjusted EPS), Adjusted efficiency ratio, Adjusted noninterest expense, Adjusted other revenue, Adjusted tangible book value per share (Adjusted TBVPS), Adjusted total net revenue, Core net income attributable to common shareholders, Core original issue discount (Core OID) amortizationexpense, Core outstanding original issue discount balance (Core OID balance), Core pre-tax income, Core return on tangible common equity (Core ROTCE), Investment income and other (adjusted), Net financing revenue (excluding Core OID), Netinterest margin (excluding Core OID), and Tangible Common Equity. These measures are used by management and we believe are useful to investors in assessing the company’s operating performance and capital.
10) Core net income attributable to common shareholders 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 attributable to common shareholders adjusts GAAP net income attributable to common shareholders for discontinued operations net of tax, tax-effected Core OID expense, tax-effected repositioning and other primarily related to the extinguishment of high-cost legacy debt and strategic activities and significant other, preferred stock capital actions, significant discrete tax items and tax-effected changes in equity investments measured at fair value, as applicable for respective periods.
11) Core original issue discount (Core OID) amortization expense is a non-GAAP financial measure for OID and is believed by management to help the reader better understand the activity removed from: Core pre-tax income (loss), Core net income (loss) attributable to common shareholders, Adjusted EPS, Core ROTCE, Adjusted efficiency ratio, Adjusted total net revenue, and Net financing revenue (excluding Core OID). Core OID is primarily related to bond exchange OID which excludes international operations and future issuances. Core OID for all periods shown is applied to the pre-tax income of the Corporate and Other segment.
12) Core outstanding original issue discount balance (Core OID balance) is a non-GAAP financial measure for outstanding OID and is believed by management to help the reader better understand the balance removed from Core ROTCE and Adjusted TBVPS. Core OID balance is primarily related to bond exchange OID which excludes international operations and future issuances.
13) Core pre-tax income is a non-GAAP financial measure that adjusts pre-tax income from continuing operations by excluding (1) Core OID, and (2) change in fair value of equity securities (change in fair value of equity securities impacts the Insurance and Corporate Finance segments), and (3) Repositioning and other which are primarily related to the extinguishment of high cost legacy debt, strategic activities and significant other one-time items, as applicable for respective periods or businesses. 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.
14) 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. For purposes of this calculation, tangible common equity is adjusted for Core OID balance and net DTA. Ally’s Core net income attributable to common shareholders for purposes of calculating Core ROTCE is based on the actual effective tax rate for the period adjusted for significant discrete tax items including tax reserve releases, which aligns with the methodology used in calculating adjusted earnings per share.
(1) In the numerator of Core ROTCE, GAAP net income attributable to common shareholders is adjusted for discontinued operations net of tax, tax-effected Core OID, tax-effected repositioning and other which are primarily related to the extinguishment of high-cost legacy debt, strategic activities and significant other one-time items, change in fair value of equity securities, significant discrete tax items, and preferred stock capital actions, as applicable for respective periods.
(2) In the denominator, GAAP shareholder’s equity is adjusted for goodwill and identifiable intangibles net of DTL, Core OID balance, and net DTA.
15) Estimated impact of CECL on regulatory capital per final rule issued by U.S. banking agencies - In December 2018, the FRB and other U.S. banking agencies approved a final rule to address the impact of CECL on regulatory capital by allowing BHCs and banks, including Ally, the option to phase in the day-one impact of CECL over a three-year period. In March 2020, the FRB and other U.S. banking agencies issued an interim final rule that became effective on March 31, 2020 and provided an alternative option for banks to temporarily delay the impacts of CECL, relative to the incurred loss methodology for estimating the allowance for loan losses, on regulatory capital. A final rule that was largely unchanged from the March 2020 interim final rule was issued by the FRB and other U.S. banking agencies in August 2020, and became effective in September 2020. For regulatory capital purposes, these rules permitted us to delay recognizing the estimated impact of CECL on regulatory capital until after a two-year deferral period, which for us extended through December 31, 2021. Beginning on January 1, 2022, we are required to phase in 25% of the previously deferred estimated capital impact of CECL, with an additional 25% to be phased in at the beginning of each subsequent year until fully phased in by the first quarter of 2025. Under these rules, firms that adopt CECL and elect the five-year transition will calculate the estimated impact of CECL on regulatory capital as the day-one impact of adoption plus 25% of the subsequent change in allowance during the two-year deferral period, which according to the final rule approximates the impact of CECL relative to an incurred loss model. We adopted this transition option during the first quarter of 2020, and phased in the regulatory capital impacts of CECL from January 1, 2022, to January 1, 2025, in accordance with the five-year transition period.
16) Investment income and other (adjusted) is a non-GAAP financial measure that adjusts GAAP investment income and other for repositioning, and the change in fair value of equity securities. Management believes investment income and other (adjusted) is a helpful financial metric because it enables the reader to better understand the business' ability to generate investment income.
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| ALLY FINANCIAL INC. |
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The following are non-GAAP financial measures which Ally believes are important to the reader of theConsolidated Financial Statements, but which are supplemental to and not a substitute for GAAP measures: Accelerated issuance expense (Accelerated OID), Adjusted earnings per share (Adjusted EPS), Adjusted efficiency ratio, Adjusted noninterest expense, Adjusted other revenue, Adjusted tangible book value per share (Adjusted TBVPS), Adjusted total net revenue, Core net income attributable to common shareholders, Core original issue discount (Core OID) amortizationexpense, Core outstanding original issue discount balance (Core OID balance), Core pre-tax income, Core return on tangible common equity (Core ROTCE), Investment income and other (adjusted), Net financing revenue (excluding Core OID), Netinterest margin (excluding Core OID), and Tangible Common Equity. These measures are used by management and we believe are useful to investors in assessing the company’s operating performance and capital.
17) Net financing revenue excluding core OID is calculated using a non-GAAP measure that adjusts net financing revenue by excluding Core OID. The Core OID balance is primarily related to bond exchange OID which excludes international operations and future issuances. Management believes net financing revenue ex. Core OID is a helpful financial metric because it enables the reader to better understand the business' ability to generate revenue.
18) Net interest margin excluding core OID is calculated using a non-GAAP measure that adjusts net interest margin by excluding Core OID. The Core OID balance is primarily related to bond exchange OID which excludes international operations and future issuances. Management believes net interest margin ex. Core OID is a helpful financial metric because it enables the reader to better understand the business' profitability and margins.
19) Repositioning is primarily related to the extinguishment of high-cost legacy debt, strategic activities, restructuring, amounts related to nonrecurring business transactions or pending transactions, and significant other one-time items.
20) Tangible Common Equity is a non-GAAP financial measure that is defined 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. Ally believes that tangible common equity is important because we believe readers 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. For purposes of calculating Core return on tangible common equity (Core ROTCE), tangible common equity is further adjusted for Core OID balance and net deferred tax asset.
25