Attached files
file | filename |
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8-K - Ally Financial Inc. | v164643_8-k.htm |
EX-99.2 - Ally Financial Inc. | v164643_ex99-2.htm |
GMAC
Financial Services Reports Preliminary Third Quarter 2009 Financial
Results
|
§
|
Third
quarter net loss of $767 million
|
|
§
|
Net
loss from continuing operations of $671
million
|
|
§
|
Focus
remains on strengthening strategic operations and exiting non-strategic
assets
|
|
§
|
Originated
$7.7 billion and $15.9 billion of auto and mortgage loans,
respectively
|
|
§
|
Launched
dealer rewards program to promote growth in auto-related
operations
|
|
§
|
Re-entered
ABS market with TALF-eligible transactions and participated in the TLGP
with debt offering
|
|
§
|
Ally
Bank increased total deposits by $2.3
billion
|
|
§
|
Tier
1 capital ratio was 14.4 percent
|
NEW YORK – GMAC Financial
Services today reported a third quarter 2009 net loss of $767 million, compared
to a net loss of $2.5 billion in the third quarter of 2008. Results
in the quarter were adversely affected by losses related to legacy assets in the
mortgage operations.
During
the quarter, certain business lines were classified as discontinued
operations. These businesses, which include GMAC’s U.S. consumer
property and casualty insurance business and three international automotive
financing operations, have been removed from the company’s continuing
operations. Excluding these businesses, net loss from continuing
operations totaled $671 million in the third quarter of 2009, compared to $2.5
billion in the comparable prior year period. Continuing operations in
the quarter were affected by several significant items, including:
|
§
|
$515
million mortgage repurchase reserve
expense;
|
|
§
|
$161
million loss provision on resort finance
assets;
|
|
§
|
$309
million original issue discount amortization expense related to the
December 2008 bond exchange;
|
|
§
|
$79
million legacy mortgage provision
expense;
|
|
§
|
$292
million tax benefit on operating
losses;
|
|
§
|
$155
million mark-to-market gain on auto retained interests;
and
|
|
§
|
$23
million net recovery on commercial and international portfolio
marks/write-downs.
|
Excluding
these items, GMAC’s net loss from continuing operations in the third quarter was
$77 million.
Third Quarter Financial
Highlights
($
in millions)
Pre-tax Income/(Loss) From Continuing Operations by Segment
Increase/(Decrease)
vs.
|
||||||
3Q
09
|
2Q
09
|
3Q
08
|
2Q
09
|
3Q
08
|
||
Automotive
Finance – North America
|
$345
|
$302
|
$(323)
|
$43
|
$668
|
|
Automotive
Finance – International
|
50
|
45
|
(56)
|
5
|
106
|
|
Global
Automotive Finance
|
395
|
347
|
(379)
|
48
|
774
|
|
Insurance
|
81
|
95
|
73
|
(14)
|
8
|
|
Mortgage
Operations
|
(747)
|
(2,044)
|
(1,949)
|
1,297
|
1,202
|
|
Corporate
and Other1
|
(692)
|
(616)
|
(384)
|
(76)
|
(308)
|
|
Pre-tax
loss from continuing operations
|
(963)
|
(2,218)
|
(2,639)
|
1,255
|
1,676
|
|
Income
tax expense (benefit)
|
(292)
|
1,099
|
(101)
|
(1,391)
|
(191)
|
|
Discontinued
Operations2
|
(96)
|
(586)
|
15
|
490
|
(111)
|
|
Net
income (loss)
|
$(767)
|
$(3,903)
|
$(2,523)
|
$3,136
|
$1,756
|
1
Corporate and Other segment includes Commercial Finance, equity investments,
amortization of original issue discount from GMAC bond exchange, and other
corporate activities.
2
Discontinued Operations currently includes: U.S. consumer property and casualty
insurance (Insurance segment); Argentina operations, U.K. full-service leasing
and Italy full-service leasing from International Operations (Global Automotive
Finance segment). Other businesses may be included in discontinued
operations in the future.
“We
continue to work through solutions for certain legacy assets and that is still
weighing on GMAC’s financial performance,” said GMAC Chief Executive Officer
Alvaro G. de Molina. “Progress is being made toward the
transformation of the company as we shed non-strategic operations while at the
same time invest in structuring the company to be more competitive for the long
term.”
“Our
focus is on growing operations where we can leverage our strengths,” said de
Molina. “We have made major strides in bringing the Chrysler business
on line, we launched a competitive dealer program that leverages our full suite
of auto products, and Ally Bank continues to attract customers.”
Liquidity
and Capital
GMAC’s
consolidated cash and cash equivalents were $14.2 billion as of Sept. 30, 2009,
down from $18.7 billion at June 30, 2009. Included in the
consolidated cash and cash equivalents balance are: $919 million at Residential
Capital, LLC (ResCap); $5.0 billion at Ally Bank, which excludes $5.2 billion of
intercompany overnight funds on deposit at Ally Bank; and $75 million at the
insurance business. The decrease in consolidated cash reflects
investment into high quality debt securities and the repayment of unsecured debt
maturities.
2
GMAC’s
total equity at Sept. 30, 2009 was $24.9 billion, down from $26.0 billion at
June 30, 2009. Total equity was marginally lower primarily due to the
net loss in the quarter and the payment of preferred
dividends. GMAC’s preliminary third quarter Tier 1 capital ratio was
14.4 percent, and the Tier 1 common capital ratio was 6.1
percent. The increase in the Tier 1 capital ratio is the result of
the company’s continued effort to de-risk and de-lever.
Ally Bank
and ResMor Trust continue to enhance GMAC’s funding flexibility through growth
in deposits. Ally Bank and ResMor Trust deposits, excluding $5.2
billion of certain intercompany amounts, increased in the third quarter to $28.8
billion as of Sept. 30, 2009, from $26.3 billion at June 30,
2009. Retail deposits at Ally Bank were $15.9 billion at quarter-end,
compared to $14.5 billion at the end of second quarter 2009. Brokered
deposits at Ally Bank increased to $9.5 billion at quarter-end, compared to $8.7
billion at the end of second quarter 2009.
In
September, GMAC re-entered the asset-backed securities (ABS) market with a $941
million Ally Bank auto securitization offering that was eligible for the Term
Asset-Backed Securities Loan Facility (TALF). This marked the first
time GMAC or Ally Bank sponsored a TALF-eligible security, and the first time
Ally Bank entered the ABS market with an auto transaction. This month
Ally Bank sponsored another similar auto securitization for $885
million. Ally Bank continues to be a key component of GMAC’s funding
strategy, as exemplified by these transactions and the deposit
growth.
Further
enhancing GMAC’s liquidity position, the company completed on Oct. 28, 2009 an
offering for $2.9 billion of senior fixed rate notes guaranteed by the Federal
Deposit Insurance Corporation (FDIC) pursuant to the FDIC Temporary Liquidity
Guarantee Program (TLGP).
3
Global
Automotive Finance
GMAC’s
global automotive finance business reported third quarter 2009 pre-tax income
from continuing operations of $395 million, compared to a pre-tax loss from
continuing operations of $379 million in the comparable prior year
period. Continuing operations in the segment excludes certain
discontinued operations, which consist of automotive finance operations in
Argentina and full-service leasing operations in the U.K. and
Italy. Continuing operations in the segment were driven by the
continued normalization of origination volumes, credit improvement and used
vehicle prices.
Total
consumer financing originations during the third quarter of 2009 were $7.7
billion, which included $6.8 billion of new originations, approximately $800
million of used originations and approximately $100 million of new
leases. Third quarter 2008 consumer financing originations totaled
$13.3 billion, which included $9.2 billion of new originations, $2.0 billion of
used originations and $2.1 billion of new leases/retail balloon
contracts. Originations were lower compared to the prior year
primarily due to a decrease in U.S. vehicle sales and lower leasing
levels. Consumer financing origination levels continued to trend
upward on a sequential basis as originations were up 26 percent from $6.1
billion in the second quarter of 2009. The increase from last quarter
includes improved pricing competitiveness, an increase in Chrysler originations
and the effect of the “cash-for-clunkers” program.
GMAC
continues to make significant progress in extending financing to Chrysler
dealers and customers. During third quarter 2009, the company
originated approximately $720 million of Chrysler retail loans, versus
approximately $200 million in the previous quarter. GMAC’s
penetration of U.S. retail sales for Chrysler improved to 21 percent for the
month of September, compared to 10 percent in June 2009. In addition,
GMAC’s outstanding balance for wholesale financing of Chrysler dealers was
approximately $3.3 billion at Sept. 30, 2009. Chrysler wholesale
penetration was 67 percent in the U.S. and 85 percent in Canada at Sept. 30,
2009.
On Oct.
1, 2009, GMAC introduced Ally Dealer Rewards, a program designed to drive
business volumes by providing benefits to dealers that consistently use the
company’s comprehensive suite of automotive products and services, including new
and used retail financing, wholesale financing, insurance products and
remarketing services. The program is currently only available to GM
and Chrysler dealers in the U.S., but there are plans to expand the program in
the future.
4
Credit
losses increased in the third quarter of 2009 to 3.29 percent of managed retail
assets, versus 1.56 percent in the third quarter of 2008. The
increase is primarily due to a standardization of the company’s charge-off
policy to conform to regulatory requirements, the effect of a smaller asset
base, and the underlying performance of certain subprime
portfolios. Lower loss severities in North America have partially
offset weak economic trends. Excluding the effect of the change in
the charge-off policy, credit losses would have been 2.19 percent of managed
retail assets in the third quarter of 2009.
Delinquencies,
defined as contracts more than 30-days past due, also increased to 3.76 percent
in the third quarter of 2009, compared to 2.77 percent in the third quarter of
2008 and 3.48 percent in the second quarter of 2009. Delinquency
trends have been negatively affected by higher unemployment and a smaller asset
portfolio in North America and Europe.
Insurance
GMAC’s
insurance business reported pre-tax income from continuing operations of $81
million in the third quarter of 2009, compared to $73 million in the prior year
period. Continuing operations in the segment excludes the U.S.
consumer property and casualty insurance business, which has been classified as
discontinued operations. The increase in pre-tax income from
continuing operations reflects higher investment income, partially offset by
lower premiums resulting from the sale of GMAC’s reinsurance unit in October
2008, lower volumes in dealer-related products due to lower automotive industry
sales, and lower volumes from our international business.
Following
a comprehensive strategic review of the insurance business, GMAC reached an
agreement to sell its U.S. consumer property and casualty insurance business to
American Capital Acquisition Corporation on Oct. 16, 2009. This
business includes GMAC’s U.S. automobile, commercial vehicle, motorcycle and
recreational vehicle insurance offerings. The dealer-related
insurance business, which includes extended service contracts and insurance for
auto dealer inventories, is not affected by this transaction and remains a
strategic component of GMAC’s automotive financial services
platform. The transaction is expected to close in the first quarter
of 2010, subject to regulatory approval and other customary closing
conditions.
5
The fair
value of the insurance investment portfolio was $5.2 billion at Sept. 30, 2009,
compared to $6.6 billion at Sept. 30, 2008, with the decrease being primarily
attributable to the sale of GMAC’s reinsurance unit.
Mortgage
Operations
Mortgage
operations, which includes ResCap and the mortgage activities of Ally Bank and
ResMor Trust, reported a pre-tax loss from continuing operations of $747 million
during third quarter 2009, versus a pre-tax loss from continuing operations of
$1.9 billion in the comparable prior year period. While credit
provisions have begun to moderate, segment results were negatively impacted by
an expense of $515 million during third quarter 2009 to increase repurchase
reserves. Losses were partially offset by stronger net revenue driven
by improved core business margins and higher net servicing revenue.
Mortgage
loan production in the third quarter of 2009 was $15.9 billion, compared to
$18.8 billion in the second quarter of 2009 and $11.9 billion in the third
quarter of 2008. Production for the quarter was driven by prime
conforming and government loans, with a limited amount of high quality jumbo
loans. Originations were down slightly from last quarter due to lower
industry refinancing volume.
As part
of its loss mitigation efforts, GMAC continues to participate in the Home
Affordable Modification Program (HAMP), which was created to assist struggling
homeowners. Through HAMP, the company had extended 31,720 trial plan offers to
its customers as of Sept. 30, 2009.
Corporate
and Other
GMAC’s
corporate and other segment reported a third quarter 2009 pre-tax loss from
continuing operations of $692 million, compared to a pre-tax loss from
continuing operations of $384 million in the comparable prior year
period. The main drivers of the loss in the quarter were an original
issue discount amortization expense related to the December 2008 bond exchange
and an additional loss provision on resort finance assets in the commercial
finance business.
6
Outlook
GMAC
continues to focus on finding solutions for certain legacy and non-strategic
assets that are no longer part of the long-term strategic vision and represent
barriers to restoring financial health.
Additionally,
the company continues to work toward reducing structural costs to optimize
returns. Key components of the cost reduction plan include
streamlining operations in line with business expectations and rationalizing
non-core and non-strategic activities. GMAC has begun to execute
plans toward this initiative, such as signing the agreement to sell the U.S.
consumer property and casualty insurance business and classifying certain
international automotive financing operations as discontinued
operations.
Going
forward, GMAC will continue to focus on its core competencies, including
automotive-related products and services. The company is working to
increase competitiveness in these areas and offer value to its
customers.
GMAC also
continues to execute its five core strategies:
|
§
|
Transition
to and meet all bank holding company
requirements
|
|
§
|
Strengthen
liquidity and capital position by shifting largely to a deposit-funded
institution
|
|
§
|
Build
a world-class organization
|
|
§
|
Expand
and diversify customer-focused revenue
opportunities
|
|
§
|
Drive
returns by repositioning risk profile and maximizing
efficiencies
|
About
GMAC Financial Services
GMAC is a
bank holding company with 15 million customers worldwide. As a
global, independent financial services institution, GMAC’s diversified business
operations include automotive finance, mortgage operations, insurance,
commercial finance and online banking. As of Sept. 30, 2009, the
company had approximately $178 billion in assets. Visit the GMAC media site at
http://media.gmacfs.com
for more information.
# #
#
7
Forward-Looking
Statements
In
this earnings release and related comments by GMAC Inc. (“GMAC”) management, the
use of the words “expect,” “anticipate,” “estimate,” “forecast,” “initiative,”
“objective,” “plan,” “goal,” “project,” “outlook,” “priorities,” “target,”
“intend,” “evaluate,” “pursue,” “seek,” “may,” “would,” “could,” “should,”
“believe,” “potential,” “continue,” or the negative of any of those words or
similar expressions is intended to identify forward-looking statements. All
statements herein and in related charts and management comments, other than
statements of historical fact, including without limitation, statements about
future events and financial performance, are forward-looking statements that
involve certain risks and uncertainties. While these statements represent our
current judgment on what the future may hold, and we believe these judgments are
reasonable, these statements are not guarantees of any events or financial
results, and GMAC’s and Residential Capital, LLC’s (“ResCap”) actual results may
differ materially due to numerous important factors that are described in the
most recent reports on SEC Forms 10-K and 10-Q for GMAC and ResCap, each of
which may be revised or supplemented in subsequent reports on SEC Forms 10-Q and
8-K. Such factors include, among others, the following: our inability to
successfully accommodate the additional risk exposure relating to providing
wholesale and retail financing to Chrysler dealers and customers and the
resulting impact to our financial stability; uncertainty regarding GM’s and
Chrysler’s recent emergence from bankruptcy protection; uncertainty related to
the new financing arrangement between GMAC and Chrysler; securing low cost
funding for GMAC and ResCap and maintaining the mutually beneficial relationship
between GMAC and GM, and GMAC and Chrysler; our ability to maintain an
appropriate level of debt and capital; the profitability and financial condition
of GM and Chrysler; our ability to realize the anticipated benefits associated
with our recent conversion to a bank holding company, and the increased
regulation and restrictions that we are subject to; continued challenges in the
residential mortgage and capital markets; the potential for deterioration in the
residual value of off-lease vehicles; the continuing negative impact
on ResCap of the decline in the U.S. housing market; changes in U.S.
government-sponsored mortgage programs or disruptions in the markets in which
our mortgage subsidiaries operate; disruptions in the market in which we fund
GMAC’s and ResCap’s operations, with resulting negative impact on our liquidity;
changes in our accounting assumptions that may require or that result from
changes in the accounting rules or their application, which could result in an
impact on earnings; changes in the credit ratings of ResCap, GMAC, GM or
Chrysler; changes in economic conditions, currency exchange rates or political
stability in the markets in which we operate; and changes in the existing or the
adoption of new laws, regulations, policies or other activities of governments,
agencies and similar organizations. Investors are cautioned not to place
undue reliance on forward-looking statements. GMAC undertakes no obligation to
update publicly or otherwise revise any forward-looking statements, whether as a
result of new information, future events or other such factors that affect the
subject of these statements, except where expressly required by
law.
Contacts:
Gina
Proia
646-781-2692
gina.proia@gmacfs.com
Christopher
McNamee
917-369-2389
christopher.mcnamee@gmacfs.com
8
GMAC Financial Services Preliminary
Unaudited Third Quarter 2009 Financial Highlights
($ in
millions)
3Q
|
3Q
|
YTD
|
YTD
|
|||||||
Summary Statement of Income
|
Note
|
2009
|
2008
|
2009
|
2008
|
|||||
Revenue
|
||||||||||
Consumer
|
$1,211
|
$1,687
|
$3,803
|
$5,267
|
||||||
Commercial
|
424
|
597
|
1,317
|
1,853
|
||||||
Loans
held-for-sale
|
160
|
246
|
441
|
918
|
||||||
Operating
leases
|
1,454
|
2,027
|
4,690
|
6,097
|
||||||
Interest
and dividends on investment securities
|
113
|
125
|
287
|
486
|
||||||
Other interest income
|
55
|
269
|
175
|
923
|
||||||
Total financing revenue and other interest income
|
3,417
|
4,951
|
10,713
|
15,544
|
||||||
Interest
expense
|
||||||||||
Deposits
|
178
|
179
|
535
|
533
|
||||||
Short-term
borrowings
|
104
|
425
|
386
|
1,522
|
||||||
Long-term
debt
|
1,555
|
2,084
|
5,025
|
6,487
|
||||||
Other
|
62
|
192
|
179
|
338
|
||||||
Total interest expense
|
1,899
|
2,880
|
6,125
|
8,880
|
||||||
Depreciation
expense on operating lease assets
|
944
|
1,472
|
3,154
|
4,307
|
||||||
Impairment of investment in operating
leases
|
0
|
93
|
0
|
808
|
||||||
Net financing revenue
|
574
|
506
|
1,434
|
1,549
|
||||||
Other
revenue
|
||||||||||
Servicing
fees
|
384
|
441
|
1,191
|
1,377
|
||||||
Servicing asset valuation and hedge activities,
net
|
(110)
|
(261)
|
(710)
|
(36)
|
||||||
Net loan servicing income
|
274
|
180
|
481
|
1,341
|
||||||
Insurance
premiums and service revenue earned
|
582
|
791
|
1,697
|
2,352
|
||||||
Gain
(loss) on mortgage and automotive loans, net
|
194
|
25
|
128
|
(1,674)
|
||||||
Gain
on extinguishment of debt
|
10
|
59
|
667
|
1,164
|
||||||
Other
gain (loss) on investments, net
|
216
|
(396)
|
297
|
(846)
|
||||||
Other income, net of losses
|
259
|
35
|
67
|
64
|
||||||
Total other revenue
|
1,535
|
694
|
3,337
|
2,401
|
||||||
Total
net revenue
|
2,109
|
1,200
|
4,771
|
3,950
|
||||||
Provision
for loan losses
|
704
|
1,099
|
2,708
|
2,345
|
||||||
Noninterest
expense
|
||||||||||
Compensation
and benefits expense
|
441
|
573
|
1,248
|
1,699
|
||||||
Insurance
losses and loss adjustment expenses
|
335
|
423
|
984
|
1,310
|
||||||
Other
operating expenses
|
1,592
|
1,728
|
3,830
|
4,149
|
||||||
Impairment of goodwill
|
0
|
16
|
0
|
16
|
||||||
Total noninterest expense
|
2,368
|
2,740
|
6,062
|
7,174
|
||||||
Loss
from continuing operations before income tax expense
|
(963)
|
(2,639)
|
(3,999)
|
(5,569)
|
||||||
Income tax (benefit) expense from continuing
operations
|
(292)
|
(101)
|
681
|
72
|
||||||
Net
loss from continuing operations
|
(671)
|
(2,538)
|
(4,680)
|
(5,641)
|
||||||
Net (loss) income from discontinued operations,
net of tax
|
(96)
|
15
|
(665)
|
47
|
||||||
Net loss
|
($767)
|
($2,523)
|
($5,345)
|
($5,594)
|
||||||
Sep
30,
|
Dec
31,
|
Sep
30,
|
||||||||
Select Balance Sheet Data
|
2009
|
2008
|
2008
|
|||||||
Cash
and cash equivalents
|
$14,225
|
$15,151
|
$13,534
|
|||||||
Loans
held-for-sale
|
14,963
|
7,919
|
11,979
|
|||||||
Finance
receivables and loans, net
|
1
|
|||||||||
Consumer
|
53,845
|
63,963
|
72,925
|
|||||||
Commercial
|
33,607
|
36,110
|
39,497
|
|||||||
Investments
in operating leases, net
|
2
|
18,867
|
26,390
|
30,628
|
||||||
Total
assets
|
178,254
|
189,476
|
211,327
|
|||||||
Total debt
|
3
|
102,041
|
126,321
|
160,631
|
||||||
Third Quarter
|
Nine Months
|
|||||||||
Operating Statistics
|
2009
|
2008
|
2009
|
2008
|
||||||
GMAC's
Worldwide Cost of Borrowing
|
4
|
5.90%
|
6.01%
|
6.17%
|
5.99%
|
|||||
Tier
1 Capital
|
5
|
$23,795
|
N/A
|
|||||||
Tier
1 Common Capital
|
5
|
10,008
|
N/A
|
|||||||
Total
Risk-Based Capital
|
5
|
26,127
|
N/A
|
|||||||
Tangible
Common Equity
|
5
|
10,468
|
N/A
|
|||||||
Tangible
Assets
|
5
|
177,568
|
N/A
|
|||||||
Risk-Weighted
Assets
|
5,6
|
165,181
|
N/A
|
|||||||
Tier
1 Capital Ratio
|
5
|
14.41%
|
N/A
|
|||||||
Tier
1 Common Capital Ratio
|
5
|
6.06%
|
N/A
|
|||||||
Total
Risk-Based Capital Ratio
|
5
|
15.82%
|
N/A
|
|||||||
Tangible
Common Equity / Tangible Assets
|
5
|
5.90%
|
N/A
|
|||||||
Tangible Common Equity / Risk-Weighted
Assets
|
5
|
6.34%
|
N/A
|
(1)
Finance receivables and loans are net of unearned income
(2) Net of
accumulated depreciation
(3)
Represents both secured and unsecured on-balance sheet debt such as commercial
paper, medium-term notes and long-term debt
(4)
Improvements in the calculation have been made to more accurately reflect the
cost of borrowings ... Calculated by dividing average interest expense by total
average interest bearing liabilities
(5) GMAC
was not a bank holding company in the third quarter of 2008 and therefore was
not subject to the related capital requirements
(6)
Risk-weighted assets are determined by allocating assets and specified
off-balance sheet financial instruments into six weighted categories, with
higher levels of capital being required for the categories perceived as
representing greater risk. The company's Sept. 30, 2009 preliminary
risk-weighted assets reflect estimated on-balance sheet risk-weighted assets of
$146 billion and derivative and off-balance sheet risk-weighted assets of $19
billion
Numbers
may not foot due to rounding
9
GMAC Financial Services Preliminary
Unaudited Third Quarter 2009 Financial Highlights
(Continued)
($ in
millions)
Note
|
Third
Quarter
|
Nine
Months
|
||||||||
GMAC
Automotive Finance Operations
|
2009
|
2008
|
2009
|
2008
|
||||||
NAO
|
Income
(loss) from continuing operations before income tax
expense
|
$345
|
($323)
|
$892
|
($1,036)
|
|||||
Income
tax expense (benefit) from continuing operations
|
$31
|
($73)
|
$942
|
($86)
|
||||||
Net
income (loss) from continuing operations
|
$314
|
($250)
|
($50)
|
($950)
|
||||||
IO
|
Income
(loss) from continuing operations before income tax
expense
|
$50
|
($56)
|
$64
|
$243
|
|||||
Income
tax expense (benefit) from continuing operations
|
$33
|
($24)
|
$174
|
$29
|
||||||
Net
income (loss) from continuing operations
|
$17
|
($32)
|
($110)
|
$214
|
||||||
Consumer
Portfolio Statistics
|
||||||||||
NAO
|
Number
of contracts originated (# thousands)
|
229
|
393
|
479
|
1,268
|
|||||
Dollar
amount of contracts originated
|
$6,185
|
$10,581
|
$13,176
|
$34,029
|
||||||
Dollar
amount of contracts outstanding at end of period
|
7
|
$43,906
|
$59,176
|
|||||||
Share
of new GM retail sales
|
32%
|
42%
|
26%
|
45%
|
||||||
Share
of new Chrysler retail sales
|
17%
|
N/A
|
N/A
|
N/A
|
||||||
Dollar
amount of GM wholesale outstanding at end of period
|
$10,892
|
$19,662
|
||||||||
GM
wholesale penetration at end of period
|
74%
|
81%
|
||||||||
Dollar
amount of Chrysler wholesale outstanding at end of period
|
$3,347
|
$534
|
||||||||
Chrysler
wholesale penetration at end of period
|
70%
|
N/A
|
||||||||
Mix
of retail & lease contract originations (% based on # of
units):
|
||||||||||
New
|
82%
|
75%
|
81%
|
75%
|
||||||
Used
|
18%
|
25%
|
19%
|
25%
|
||||||
GM
subvented (% based on # of new units)
|
69%
|
86%
|
72%
|
80%
|
||||||
Chrysler
subvented (% based on # of new units)
|
38%
|
N/A
|
34%
|
N/A
|
||||||
Average
original term in months (U.S. retail only)
|
66
|
65
|
64
|
63
|
||||||
Off-lease
remarketing (U.S. only)
|
||||||||||
Sales
proceeds on scheduled lease terminations (36-month) per vehicle -
Serviced
|
8,9
|
$17,701
|
$13,207
|
$15,720
|
$13,712
|
|||||
Off-lease
vehicles terminated - Serviced (# units)
|
9
|
86,683
|
108,063
|
285,138
|
328,438
|
|||||
Sales
proceeds on scheduled lease terminations (36-month) per vehicle -
On-balance sheet
|
8
|
$18,115
|
$13,108
|
$15,994
|
$13,648
|
|||||
Off-lease
vehicles terminated - On-balance sheet (# units)
|
10
|
60,016
|
59,238
|
186,372
|
161,996
|
|||||
IO
|
Number
of contracts originated (# thousands)
|
107
|
161
|
304
|
543
|
|||||
Dollar
amount of contracts originated
|
$1,519
|
$2,755
|
$4,323
|
$9,502
|
||||||
Dollar
amount of contracts outstanding at end of period
|
11
|
$13,388
|
$18,306
|
|||||||
Mix
of retail & lease contract originations (% based on # of
units):
|
||||||||||
New
|
95%
|
86%
|
94%
|
86%
|
||||||
Used
|
5%
|
14%
|
6%
|
14%
|
||||||
GM
subvented (% based on # of units)
|
48%
|
37%
|
57%
|
40%
|
||||||
Asset
Quality Statistics
|
||||||||||
NAO
|
Annualized
net retail charge-offs as a % of managed assets
|
12
|
3.31%
|
1.90%
|
2.93%
|
1.71%
|
||||
Managed
retail contracts over 30 days delinquent
|
12,13
|
4.36%
|
2.90%
|
|||||||
Serviced
retail contracts over 30 days delinquent
|
13,14
|
4.08%
|
2.85%
|
|||||||
IO
|
Annualized
net charge-offs as a % of managed assets
|
12
|
3.24%
|
0.70%
|
1.90%
|
0.72%
|
||||
Managed
retail contracts over 30 days delinquent
|
12,13
|
2.85%
|
2.57%
|
|||||||
Operating
Statistics
|
||||||||||
NAO
|
Allowance
as a % of related on-balance sheet consumer receivables at end of
period
|
4.16%
|
4.37%
|
|||||||
Repossessions
as a % of average number of managed retail contracts
outstanding
|
12
|
3.61%
|
2.65%
|
3.50%
|
2.57%
|
|||||
Severity
of loss per unit serviced - Retail
|
14
|
|||||||||
New
|
$9,288
|
$11,760
|
$10,387
|
$10,919
|
||||||
Used
|
$8,058
|
$9,269
|
$8,719
|
$8,710
|
||||||
IO
|
Allowance
as a % of related on-balance sheet consumer receivables at end of
period
|
1.64%
|
1.61%
|
|||||||
Repossessions
as a % of average number of contracts outstanding
|
0.74%
|
0.69%
|
0.84%
|
0.69%
|
||||||
(7)
Represents on-balance sheet assets, which includes $17.2 billion of lease assets
and $8.5 billion of retail loans held for sale in 2009
(8) Prior
period amounts based on current vehicle mix, in order to be
comparable
(9)
Serviced assets represent operating leases where GMAC continues to service the
underlying asset
(10)
GMAC-owned portfolio reflects lease assets on GMAC's books after distribution to
GM of automotive leases in connection with the sale transaction which occurred
in November 2006
(11)
Represents on-balance sheet assets including retail leases
(12)
Managed assets represent on and off-balance sheet finance receivables and loans
where GMAC continues to be exposed to credit and/or interest rate
risk
(13)
Represents percentage of average number of contracts outstanding. Excludes
accounts in bankruptcy.
(14)
Serviced assets represent on and off-balance sheet finance receivables and loans
where GMAC continues to service the underlying asset
Numbers
may not foot due to rounding
10
GMAC Financial Services Preliminary
Unaudited Third Quarter 2009 Financial Highlights (Continued)
($ in
millions)
Note
|
Third Quarter
|
Nine Months
|
||||||||
Mortgage
Operations
|
2009
|
2008
|
2009
|
2008
|
||||||
Loss
from continuing operations before income tax expense
|
($747)
|
($1,949)
|
($3,929)
|
($4,615)
|
||||||
Income
tax (benefit) expense from continuing operations
|
($154)
|
($18)
|
($480)
|
$65
|
||||||
Net
loss from continuing operations
|
($593)
|
($1,931)
|
($3,449)
|
($4,680)
|
||||||
Gain
(loss) on mortgage loans, net
|
||||||||||
Domestic
|
$209
|
$32
|
$561
|
($213)
|
||||||
International
|
18
|
(170)
|
(542)
|
(1,735)
|
||||||
Total
gain (loss) on mortgage loans, net
|
$227
|
($138)
|
$19
|
($1,948)
|
||||||
Portfolio
Statistics
|
||||||||||
Mortgage
loan production
|
||||||||||
Prime
conforming
|
$7,963
|
$6,766
|
$26,976
|
$34,391
|
||||||
Prime
non-conforming
|
363
|
250
|
706
|
1,838
|
||||||
Government
|
7,099
|
4,138
|
19,419
|
9,873
|
||||||
Nonprime
|
0
|
0
|
0
|
3
|
||||||
Prime
second-lien
|
0
|
86
|
0
|
872
|
||||||
Total
Domestic
|
15,425
|
11,240
|
47,101
|
46,977
|
||||||
International
|
426
|
627
|
952
|
3,867
|
||||||
Total
Mortgage production
|
$15,851
|
$11,867
|
$48,053
|
$50,844
|
||||||
Mortgage
loan servicing rights at end of period
|
$3,243
|
$4,725
|
||||||||
Loan
servicing at end of period
|
||||||||||
Domestic
|
$ 353,252
|
$391,945
|
||||||||
International
|
26,774
|
34,079
|
||||||||
Total
Loan servicing
|
$380,026
|
$426,024
|
||||||||
Asset
Quality Statistics - Mortgage Consolidated
|
||||||||||
Provision
for credit losses by product
|
||||||||||
Mortgage
loans held for investment
|
$407
|
$533
|
$1,597
|
$1,158
|
||||||
Lending
receivables
|
(58)
|
118
|
319
|
256
|
||||||
Total
Provision for credit losses
|
$349
|
$652
|
$1,915
|
$1,414
|
||||||
Allowance
by product at end of period
|
||||||||||
Mortgage
loans held for investment
|
$1,132
|
$975
|
||||||||
Lending
receivables
|
256
|
564
|
||||||||
Total
Allowance by product
|
$1,388
|
$1,539
|
||||||||
Allowance
as a % of related receivables at end of period
|
||||||||||
Mortgage
loans held for investment
|
15
|
5.59%
|
3.66%
|
|||||||
Lending
receivables
|
12.17%
|
12.95%
|
||||||||
Total
Allowance as a % of related receivables
|
15
|
6.21%
|
4.96%
|
|||||||
Nonaccrual
loans at end of period
|
15
|
$4,369
|
$5,747
|
|||||||
Nonaccrual
loans as a % of related receivables at end of period
|
15
|
19.55%
|
18.53%
|
|||||||
Total
nonperforming assets
|
16
|
$7,004
|
$8,493
|
|||||||
Third Quarter
|
Nine Months
|
|||||||||
GMAC
Insurance Operations
|
2009
|
2008
|
2009
|
2008
|
||||||
Income
from continuing operations before income tax expense
|
$81
|
$73
|
$206
|
$382
|
||||||
Income
tax expense from continuing operations
|
$56
|
$2
|
$88
|
$81
|
||||||
Net
income from continuing operations
|
$25
|
$71
|
$118
|
$301
|
||||||
Premiums
and service revenue written
|
$451
|
$714
|
$1,275
|
$2,241
|
||||||
Premiums
and service revenue earned
|
572
|
782
|
1,663
|
2,319
|
||||||
Combined
ratio
|
17
|
101.6%
|
89.2%
|
99.0%
|
93.4%
|
|||||
Investment
portfolio fair value at end of period
|
$5,244
|
$6,639
|
||||||||
Memo:
After-tax at end of period
|
||||||||||
Unrealized gains
|
$156
|
$104
|
||||||||
Unrealized
losses
|
(49)
|
(172)
|
||||||||
Net
unrealized gains (losses)
|
$107
|
($68)
|
||||||||
(15)
Excludes SFAS 159 & SFAS 140 assets
(16)
Includes SFAS 159 assets
(17)
Combined ratio represents the sum of all incurred losses and expenses (excluding
interest and income tax expense) divided by the total of premiums and service
revenues earned and other income
Numbers
may not foot due to rounding
11