Attached files
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8-K - FORM 8-K - Ally Financial Inc. | v173082_8k.htm |
EX-99.2 - EXHIBIT 99.2 - Ally Financial Inc. | v173082_ex99-2.htm |
GMAC
Financial Services Reports Preliminary Fourth Quarter and Full-Year 2009
Financial Results
|
§
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Fourth
quarter net loss of $5.0 billion; full-year net loss of $10.3
billion
|
|
§
|
Fourth
quarter net loss from continuing operations of $3.9 billion; full-year net
loss from continuing operations of $8.0
billion
|
|
§
|
Strategic
actions expected to reduce further effects from the legacy mortgage
business
|
|
§
|
Strengthened
support of the domestic auto industry in 2009: originated $18.2 billion of
retail automotive credit in the U.S.; outstanding wholesale credit to
dealers totaled $19.1 billion in the U.S.; and completed formal
underwriting process for Chrysler dealers with 94 percent of applicants
approved
|
|
§
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GMAC
continued to meet well-capitalized requirements with Tier 1 capital ratio
of 14.1 percent
|
|
§
|
Ally
Bank and ResMor Trust deposits increased 56 percent during 2009 to $31.1
billion
|
NEW YORK (Feb. 4, 2010) – GMAC
Financial Services today reported a net loss of $5.0 billion for the fourth
quarter of 2009, compared to net income of $7.5 billion for the fourth quarter
of 2008. For the 2009 full year, GMAC reported a net loss of $10.3
billion, compared to net income of $1.9 billion in 2008. Results for
the 2009 fourth quarter and full year were largely affected by losses related to
legacy assets in the mortgage operations. Results for the 2008 fourth
quarter and full year benefited from an $11.4 billion after-tax gain from the
extinguishment of debt related to GMAC's bond exchange.
Results
in the quarter were adversely affected by several significant items,
including:
|
§
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$3.3
billion of losses related to strategic mortgage
actions;
|
|
§
|
$573
million mortgage repurchase reserve
expense;
|
|
§
|
$308
million original issue discount amortization expense related to the
December 2008 bond exchange;
|
|
§
|
$262
million provision related to legacy Nuvell subprime
assets;
|
|
§
|
$122
million of mortgage servicing rights (MSR) valuation adjustments;
and
|
|
§
|
$118
million of losses in international automotive operations related to
certain wind-down costs.
|
The
aggregate pre-tax impact of these significant items was $4.7
billion.
“GMAC has
undergone significant transformation in 2009 and as a result, is better
positioned to pursue business and market opportunities going forward,” said GMAC
Chief Executive Officer Michael A. Carpenter. “Key steps during the
year included: diversifying the profitable automotive finance business with the
addition of Chrysler; launching the Ally Bank brand, which is a key part of our
funding profile; strengthening our capital and liquidity positions; and
implementing major restructuring actions to minimize risk related to the legacy
mortgage business. We are encouraged with the progress, and the
recent upgrades of our credit ratings demonstrate that the steps we are taking
are appropriate and making an impact.”
During
the year, GMAC made the decision to sell certain businesses and has classified
them as discontinued operations. Excluding the results from these
businesses, net loss from continuing operations totaled $3.9 billion in the
fourth quarter of 2009, compared to net income from continuing operations of
$7.7 billion in the comparable prior year period. Net loss from
continuing operations for full-year 2009 totaled $8.0 billion, compared to net
income from continuing operations of $3.4 billion in the prior
year.
As of
Dec. 31, 2009, GMAC changed the presentation of and the business activities
comprising its operating segments and implemented a funds-transfer-pricing (FTP)
methodology to bring reporting in line with industry and bank holding company
best practices. The net impact of the FTP methodology is included within the
results of Corporate and Other. Prior period results have also
been restated.
Financial
Highlights: Income/(Loss) From Continuing Operations by Segment
($
in millions)
4Q 09
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4Q 08
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Change
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2009
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2008
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Change
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||
North
American Automotive Finance
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$369
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$(405)
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$774
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$1,752
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$(207)
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$1,959
|
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International
Automotive Finance
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(146)
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(74)
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(72)
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(101)
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140
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(241)
|
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Insurance
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86
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133
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(47)
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329
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499
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(170)
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Global
Automotive Services
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309
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(346)
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655
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1,980
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433
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1,547
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Mortgage
Operations
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(4,011)
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(790)
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(3,221)
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(7,301)
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(4,008)
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(3,293)
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Corporate and Other1
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(767)
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8,751
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(9,518)
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(2,617)
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6,951
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(9,568)
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Pre-tax
(loss) income from continuing operations
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(4,469)
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7,615
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(12,084)
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(7,938)
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3,376
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(11,314)
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Income
tax (benefit) expense from continuing operations
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(603)
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(90)
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(513)
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78
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(60)
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138
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Discontinued Operations2
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(1,087)
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(243)
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(844)
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(2,282)
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(1,568)
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(714)
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Net
Income (Loss)3
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$(4,953)
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$7,462
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$(12,415)
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$(10,298)
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$1,868
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$(12,166)
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1.
Corporate and Other includes Commercial Finance, equity investments,
amortization of original issue discount from GMAC bond exchange and net impact
from asset liability management activities.
2.
During the fourth quarter of 2009, the following businesses were classified as
discontinued operations: the U.K. consumer property and casualty insurance
business; retail automotive finance operations in Ecuador and Poland; the
full-service leasing businesses in Australia, Belgium, France, Mexico, the
Netherlands, and Poland; mortgage operations in continental Europe; and the
Commercial Services division in Corporate and Other. In addition,
certain businesses were previously classified as discontinued operations in the
third quarter of 2009, including: U.S. consumer property and casualty insurance;
retail automotive finance operations in Argentina; and the full-service leasing
businesses in Italy and the U.K.
3.
Net loss in the fourth quarter of 2009 negatively impacted by $1.0 billion of
tax valuation allowance.
2
Liquidity
and Capital
GMAC’s
consolidated cash and cash equivalents were $14.8 billion as of Dec. 31, 2009,
up from $14.2 billion at Sept. 30, 2009. Included in the consolidated
cash and cash equivalents balance are: $765 million at Residential Capital, LLC
(ResCap); $4.9 billion at Ally Bank, which excludes certain intercompany
deposits; and $121 million at the insurance businesses. The increase
in consolidated cash reflects continued growth in retail deposits.
On Dec.
30, 2009, GMAC announced a series of capital actions including: a $3.79 billion
capital infusion from the U.S. Department of the Treasury; the conversion of
$3.0 billion of existing convertible preferred stock held by the U.S. Treasury
into GMAC common equity; and the exchange of all of the remaining preferred
stock held by the U.S. Treasury for $10.13 billion of newly issued mandatorily
convertible preferred securities (MCP). With these actions, GMAC
achieved the capital buffer required to meet the worse-than-expected economic
scenario under the Federal Reserve's Supervisory Capital Assessment Program
(SCAP). The $3.79 billion cash infusion was less than the $5.6
billion originally anticipated by the Federal Reserve in May 2009 due in large
part to lower-than-expected losses related to the General Motors bankruptcy
filing.
GMAC’s
total equity at Dec. 31, 2009 was $20.8 billion, down from $24.9 billion at
Sept. 30, 2009. The decrease in total equity was primarily due to the
net loss in the fourth quarter of 2009, partially offset by the sale of $1.25
billion of MCP to the U.S. Treasury, which constituted a portion of the $3.79
billion capital infusion. GMAC’s preliminary fourth quarter Tier 1
capital ratio was 14.1 percent, compared to 14.4 percent in the third
quarter. The Tier 1 capital ratio was lower on a sequential basis due
to the net loss in the quarter, partially offset by the $3.79 billion capital
infusion by the U.S. Treasury and lower total assets.
Ally Bank
and ResMor Trust continue to enhance GMAC’s funding flexibility through growth
in deposits. Ally Bank and ResMor Trust deposits, excluding certain
intercompany deposits, increased in the fourth quarter to $31.1 billion as of
Dec. 31, 2009, from $28.8 billion at Sept. 30, 2009. Retail deposits
at Ally Bank were $16.9 billion at quarter-end, compared to $15.9 billion at the
end of the third quarter of 2009. Brokered deposits at Ally Bank
increased to $10.1 billion at quarter-end, compared to $9.2 billion at the end
of the third quarter of 2009.
3
Global
Automotive Services
This
quarter GMAC changed the presentation of its reporting to reflect Global
Automotive Services, which consists of GMAC’s auto-centric businesses around the
world, including: North American Automotive Finance, International Automotive
Finance and Insurance. GMAC had previously reported Global Automotive
Finance and Insurance separately. The inclusion of Insurance is
consistent with GMAC’s strategic focus on dealer-related insurance
offerings.
Global
Automotive Services reported fourth quarter 2009 pre-tax income from continuing
operations of $309 million, compared to a pre-tax loss from continuing
operations of $346 million in the comparable prior year
period. Continuing operations in the segment were affected by
improved net financing revenue driven by strong remarketing gains, offset by
losses in international operations related to certain wind-down costs and a loss
provision expense related to the Nuvell subprime legacy
portfolio. The size of the Nuvell portfolio was approximately $4
billion at year-end 2009 and is expected to run off to approximately $2 billion
by year-end 2010.
Global automotive
originations, delinquencies and credit losses
Total
consumer financing originations, which includes the joint venture in China,
during the fourth quarter of 2009 were $8.2 billion. This included
$6.8 billion of new originations, $1.0 billion of used originations and
approximately $400 million of new leases. Fourth quarter 2008
consumer financing originations totaled $3.3 billion, which included $2.3
billion of new originations, approximately $600 million of used originations and
approximately $400 million of new leases. Consumer financing
originations totaled $25.7 billion for full-year 2009, compared to $46.8 billion
for 2008. Consumer origination levels have steadily trended upward on
a quarterly basis since the fourth quarter of 2008 and have more than doubled
since the first quarter of 2009.
4
Annualized
credit losses from continuing operations increased in the fourth quarter of 2009
to 3.57 percent of average managed retail contract assets, versus 2.12 percent
in the fourth quarter of 2008. Credit losses in the quarter reflect
weak economic conditions, slightly higher loss severity, and continued stress in
the legacy subprime Nuvell portfolio.
Delinquencies,
defined as the dollar amount of managed retail contracts more than 30-days past
due as a percent of total outstanding managed retail contracts, from continuing
operations were 3.48 percent in the fourth quarter of 2009, compared to 3.46
percent in the third quarter of 2009, and 3.31 percent in the fourth quarter of
2008. While the Nuvell subprime portfolio continues to have a
negative impact on delinquency levels, overall delinquency trends in the auto
portfolio have stabilized throughout the year.
North American Automotive
Finance
North
American Automotive Finance, which includes results for the U.S. and Canada,
reported pre-tax income from continuing operations of $369 million in the fourth
quarter of 2009, compared to a pre-tax loss from continuing operations of $405
million in the comparable prior year period. Results were driven by
stronger net financing revenue due to improved remarketing gains, offset by loss
provisions related to the Nuvell subprime legacy portfolio.
North
American consumer financing originations in the fourth quarter of 2009 were $6.6
billion, which included $5.9 billion in the U.S. Fourth quarter 2008
consumer financing originations in North America were $1.4 billion, which
included approximately $800 million from the U.S.
GMAC
remains focused on its core strength of providing automotive financing to GM and
Chrysler dealers and customers. At Dec. 31, 2009, GMAC’s U.S.
wholesale penetration for General Motors dealer stock was 90.9 percent, compared
to 85.2 percent at year-end 2008. U.S. retail penetration for GM was
30.3 percent, up significantly from 4.7 percent in the fourth quarter of 2008,
when the company had restricted its retail lending as a result of challenges in
the credit and capital markets.
5
The
company also continued to make significant progress in expanding its financing
footprint to Chrysler dealers and customers. At year end, GMAC had
completed the formal underwriting process for 1,474 U.S. Chrysler dealers that
applied for standard wholesale credit lines and approved 94 percent of those
dealers. GMAC’s U.S. wholesale penetration for Chrysler dealer stock
increased to 77.3 percent at Dec. 31, 2009, up from 67.3 percent at Sept. 30,
2009. During the fourth quarter of 2009, GMAC originated $894
million of new Chrysler retail loans, compared to $721 million in the prior
quarter. GMAC’s U.S. retail penetration for Chrysler during the
fourth quarter improved to 25.5 percent, compared to 13.3 percent in the third
quarter.
International Automotive
Finance
International
Automotive Finance reported a pre-tax loss from continuing operations of $146
million in the fourth quarter of 2009 versus a $74 million pre-tax loss from
continuing operations in the same period last year. Results were
affected by losses related to certain wind-down costs, including: selected
portfolio movement from held-for-investment (HFI) to held-for-sale (HFS),
restructuring charges, and foreign exchange related to the repatriation of funds
from Venezuela.
During
the fourth quarter, eight additional international automotive operations were
classified as discontinued operations in line with GMAC’s strategy to focus on
its core international operations in Europe and Latin America, centered around
Germany, U.K., Brazil, and Mexico, as well as China. International
consumer originations, which include the joint venture in China, were $1.56
billion during the fourth quarter of 2009, compared to $1.89 billion in the
fourth quarter of 2008. Approximately 85 percent of GMAC’s fourth
quarter international consumer originations came from its five core
markets.
Insurance
GMAC’s
insurance business reported pre-tax income from continuing operations of $86
million in the fourth quarter of 2009, compared to $133 million in the prior
year period. These results reflect lower earned premiums
on extended service contracts written in current and prior periods, and lower
dealer inventory levels. GMAC continues to streamline its insurance segment to
focus primarily on dealer-centric products, such as extended service contracts
and dealer inventory insurance.
6
The fair
value of the insurance investment portfolio was $4.7 billion at Dec. 31, 2009,
compared to $5.1 billion at Dec. 31, 2008, with the decrease being primarily
attributable to the reclassification of the U.S. and U.K. consumer property and
casualty insurance businesses to discontinued operations.
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 $4.0 billion
during the fourth quarter of 2009, versus a pre-tax loss from continuing
operations of $790 million in the comparable prior year
period. Results from continuing operations in the fourth quarter of
2009 were driven by the recent strategic actions taken by GMAC to sell certain
legacy mortgage assets resulting in the reclassification from HFI to HFS, which
resulted in a $2.6 billion loss. The segment also reported a mortgage
repurchase reserve expense for the fourth quarter of $573 million.
These
actions, inclusive of estimated operating losses for the period, required a
total capital contribution to ResCap of approximately $2.8 billion in the form
of mortgage loans acquired by GMAC from Ally Bank, GMAC debt forgiveness and
cash. With the capital contribution, ResCap's net worth complies with the
minimum level required to meet certain covenants. As previously
stated, these strategic actions are expected to minimize further effects from
the legacy mortgage business and will better position GMAC to explore strategic
alternatives with respect to its mortgage operations.
Global
mortgage loan production in the fourth quarter of 2009 was $18.1 billion,
compared to $15.9 billion in the third quarter of 2009, and $8.5 billion in the
fourth quarter of 2008. Production for the quarter was driven by
prime conforming and government loans.
As part
of its loss mitigation efforts, GMAC continues to participate in the Home
Affordable Modification Program (HAMP), which was created by the U.S. government
to assist struggling homeowners. As of Dec. 31, 2009, GMAC had executed more
than 9,800 permanent loan modifications, more than any other servicer, and had
started more than 32,000 trial modifications.
7
Corporate
and Other
Corporate
and Other reported a fourth quarter 2009 pre-tax loss from continuing operations
of $767 million, compared to pre-tax income from continuing operations of $8.8
billion 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, losses related to the Commercial Finance
business and the net impact of funds-transfer-pricing
allocations. Fourth quarter 2008 results were largely driven by a
$10.7 billion pre-tax gain from the extinguishment of debt related to the
December 2008 bond exchange.
Outlook
The
progress made in 2009 and the capital and strategic actions taken by GMAC at the
end of the year have strengthened its capital base and better-positioned the
company for improved financial performance. These actions are
expected to improve GMAC’s access to the capital markets over time and minimize
further effects from the legacy mortgage business. Additionally,
these actions position GMAC to explore strategic alternatives for ResCap and the
mortgage business and are expected to accelerate the repayment of the U.S.
government's investment.
Looking
ahead, GMAC is focused on achieving the following key strategic
objectives:
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§
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Capitalize
on opportunities in the auto finance
business
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§
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Demonstrate
improved access to the capital
markets
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§
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Continue
to build deposit base at Ally Bank
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§
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Drive
critical focus on profitability
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§
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Explore
strategic alternatives to maximize value of mortgage operations and
further limit risk
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§
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Transition
fully to bank holding company
model
|
8
About
GMAC Financial Services
GMAC is a
bank holding company with 15 million customers worldwide. As a global
financial services institution, GMAC’s business operations include automotive
finance, mortgage operations, insurance and commercial finance. The
company also offers retail banking products through its online bank, Ally
Bank. As of Dec. 31, 2009, GMAC had approximately $172 billion in
assets. Visit the GMAC media site at http://media.gmacfs.com
for more information.
# #
#
Forward-Looking
Statements
In
this earnings release and comments by GMAC Inc. (“GMAC”) management, the use of
the words “expect,” “anticipate,” “estimate,” “forecast,” “initiative,”
“objective,” “plan,” “goal,” “project,” “outlook,” “priorities,” “target,”
“explore,” “positions,” “intend,” “evaluate,” “pursue,” “seek,” “may,” “would,”
“could,” “should,” “believe,” “potential,” “continue,” or the negative of 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 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, 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: uncertainty of GMAC's ability to enter into transactions
or execute strategic alternatives to realize the value of its Residential
Capital, LLC (“ResCap”) operations; our inability to repay our outstanding
obligations to the U.S. Department of the Treasury, or to do so in a timely
fashion and without disruption to our business; 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 related to Chrysler’s and GM’s recent exits
from bankruptcy;
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 now 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, Chrysler
or GM; changes in economic conditions, currency exchange rates or political
stability in the markets in which we operate; and changes in the existing or the
adoption of new laws, regulations, policies or other activities of governments,
agencies and similar organizations.
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.
9
Contacts:
Gina
Proia
646-781-2692
gina.proia@gmacfs.com
Jim
Olecki
212-884-7955
james.olecki@gmacfs.com
10
GMAC Financial Services Preliminary
Unaudited Fourth Quarter 2009 Financial Highlights
($
in millions)
|
||||||||||||||||||||
4Q | 4Q |
FY
|
FY
|
|||||||||||||||||
Summary
Statement of Income
|
Note
|
2009
|
2008
|
2009
|
2008
|
|||||||||||||||
Revenue
|
||||||||||||||||||||
Finance
receivables and loans
|
||||||||||||||||||||
Consumer
|
$ | 1,076 | $ | 1,417 | $ | 4,774 | $ | 6,524 | ||||||||||||
Commercial
|
440 | 490 | 1,715 | 2,287 | ||||||||||||||||
Notes
receivable from General Motors
|
79 | 102 | 298 | 394 | ||||||||||||||||
Total
finance receivables and loans
|
$ | 1,595 | $ | 2,009 | $ | 6,787 | $ | 9,205 | ||||||||||||
Loans
held-for-sale
|
206 | 169 | 633 | 1,054 | ||||||||||||||||
Trading
securities
|
14 | 29 | 134 | 130 | ||||||||||||||||
Interest
and dividends on available-for-sale investment securities
|
73 | 34 | 233 | 385 | ||||||||||||||||
Interest
bearing cash
|
- | 56 | (7 | ) | 353 | |||||||||||||||
Other
interest income
|
(4 | ) | 61 | (76 | ) | 347 | ||||||||||||||
Operating
leases
|
1,224 | 1,720 | 5,715 | 7,582 | ||||||||||||||||
Total
financing revenue and other interest income
|
3,108 | 4,078 | 13,419 | 19,056 | ||||||||||||||||
Interest
expense
|
||||||||||||||||||||
Interest
on deposits
|
168 | 179 | 703 | 711 | ||||||||||||||||
Interest
on short-term borrowings
|
103 | 259 | 477 | 1,698 | ||||||||||||||||
Interest
on long-term debt
|
1,636 | 1,970 | 6,555 | 8,381 | ||||||||||||||||
Other
interest expense
|
(143 | ) | 344 | (76 | ) | 507 | ||||||||||||||
Total
interest expense
|
1,764 | 2,752 | 7,659 | 11,297 | ||||||||||||||||
Depreciation
expense on operating lease assets
|
741 | 1,343 | 3,748 | 5,478 | ||||||||||||||||
Impairment
of investment in operating leases
|
- | 409 | - | 1,218 | ||||||||||||||||
Net
financing revenue
|
603 | (426 | ) | 2,012 | 1,063 | |||||||||||||||
Other
revenue
|
||||||||||||||||||||
Servicing
fees
|
371 | 405 | 1,559 | 1,779 | ||||||||||||||||
Servicing
asset valuation and hedge activities, net
|
(417 | ) | (241 | ) | (1,104 | ) | (263 | ) | ||||||||||||
Total
servicing income, net
|
(46 | ) | 164 | 455 | 1,516 | |||||||||||||||
Insurance
premiums and service revenue earned
|
477 | 579 | 1,977 | 2,710 | ||||||||||||||||
Gain
(loss) on mortgage and automotive loans, net
|
146 | 139 | 596 | (605 | ) | |||||||||||||||
(Loss)
gain on extinguishment of debt
|
(3 | ) | 11,464 | 665 | 12,628 | |||||||||||||||
Other
gain (loss) on investments, net
|
35 | (263 | ) | 331 | (1,095 | ) | ||||||||||||||
Other
income, net of losses
|
293 | (800 | ) | 225 | (782 | ) | ||||||||||||||
Total
other revenue
|
902 | 11,283 | 4,249 | 14,372 | ||||||||||||||||
Total
net revenue
|
1,505 | 10,857 | 6,261 | 15,435 | ||||||||||||||||
Provision
for loan losses
|
3,432 | 1,251 | 6,043 | 3,410 | ||||||||||||||||
Noninterest
expense
|
||||||||||||||||||||
Compensation
and benefits expense
|
419 | 365 | 1,608 | 1,979 | ||||||||||||||||
Insurance
losses and loss adjustment expenses
|
242 | 266 | 1,042 | 1,402 | ||||||||||||||||
Other
operating expenses
|
1,881 | 1,360 | 5,506 | 5,252 | ||||||||||||||||
Impairment
of goodwill
|
- | - | - | 16 | ||||||||||||||||
Total
noninterest expense
|
2,542 | 1,991 | 8,156 | 8,649 | ||||||||||||||||
(Loss)
income from continuing operations before income tax (benefit)
expense
|
(4,469 | ) | 7,615 | (7,938 | ) | 3,376 | ||||||||||||||
Income
tax (benefit) expense from continuing operations
|
(603 | ) | (90 | ) | 78 | (60 | ) | |||||||||||||
Net
(loss) income from continuing operations
|
(3,866 | ) | 7,705 | (8,016 | ) | 3,436 | ||||||||||||||
Loss
from discontinued operations, net of tax
|
(1,087 | ) | (243 | ) | (2,282 | ) | (1,568 | ) | ||||||||||||
Net
(loss) income
|
$ | (4,953 | ) | $ | 7,462 | $ | (10,298 | ) | $ | 1,868 | ||||||||||
Dec
31,
|
Dec
31,
|
|||||||||||||||||||
Select
Balance Sheet Data
|
2009
|
2008
|
||||||||||||||||||
Cash
and cash equivalents
|
$ | 14,788 | $ | 15,151 | ||||||||||||||||
Loans
held-for-sale
|
20,625 | 7,919 | ||||||||||||||||||
Finance
receivables and loans, net
|
1
|
|||||||||||||||||||
Consumer
|
42,849 | 63,963 | ||||||||||||||||||
Commercial
|
33,941 | 36,110 | ||||||||||||||||||
Notes
receivable from General Motors
|
911 | 1,655 | ||||||||||||||||||
Investments
in operating leases, net
|
2
|
15,995 | 26,390 | |||||||||||||||||
Total
assets
|
172,306 | 189,476 | ||||||||||||||||||
Total
debt
|
3
|
98,313 | 126,321 | |||||||||||||||||
Fourth
Quarter
|
Twelve
Months
|
|||||||||||||||||||
Operating
Statistics
|
2009
|
2008
|
2009
|
2008
|
||||||||||||||||
GMAC's
Worldwide Cost of Borrowing
|
4
|
6.35 | % | 6.14 | % | 6.29 | % | 6.13 | % | |||||||||||
Tier
1 Capital
|
5
|
$ | 22,398 | N/A | ||||||||||||||||
Tier
1 Common Capital
|
5
|
7,678 | N/A | |||||||||||||||||
Total
Risk-Based Capital
|
5
|
24,624 | N/A | |||||||||||||||||
Tangible
Common Equity
|
5
|
8,125 | N/A | |||||||||||||||||
Tangible
Assets
|
5
|
171,772 | N/A | |||||||||||||||||
Risk-Weighted
Assets
|
5,6
|
158,358 | N/A | |||||||||||||||||
Tier
1 Capital Ratio
|
5
|
14.1 | % | N/A | ||||||||||||||||
Tier
1 Common Capital Ratio
|
5
|
4.8 | % | N/A | ||||||||||||||||
Total
Risk-Based Capital Ratio
|
5
|
15.5 | % | N/A | ||||||||||||||||
Tangible
Common Equity / Tangible Assets
|
5
|
4.7 | % | N/A | ||||||||||||||||
Tangible
Common Equity / Risk-Weighted Assets
|
5
|
5.1 | % | 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 fourth quarter of 2008 and therefore
was not subject to the related capital
requirements
|
(6)
|
The
risk-weighted assets are determined by allocating assets and specified
off-balance sheet financial instruments in several broad risk categories,
with higher levels of capital being required for the categories perceived
as representing greater risk. The company’s December 2009
preliminary risk-weighted assets reflect estimated on-balance sheet risk
weighted assets of $140 billion and derivative and off-balance sheet
risk-weighted assets of $18 billion
|
Numbers
may not foot due to rounding
GMAC Confidential
GMAC Financial Services
Preliminary Unaudited Fourth Quarter 2009 Financial
Highlights
($
in millions)
|
|||||||||||||||||||||
Note
|
Fourth
Quarter
|
Twelve
Months
|
|||||||||||||||||||
GMAC
Automotive Finance Operations
|
2009
|
2008
|
2009
|
2008
|
|||||||||||||||||
NAO
|
Income
(loss) from continuing operations before income tax
expense
|
$ | 369 | $ | (405 | ) | $ | 1,752 | $ | (207 | ) | ||||||||||
Income
tax expense (benefit) from continuing operations
|
216 | (36 | ) | 1,206 | 88 | ||||||||||||||||
Net
income (loss) from continuing operations
|
$ | 153 | $ | (369 | ) | $ | 546 | $ | (295 | ) | |||||||||||
IO
|
Income
(loss) from continuing operations before income tax
expense
|
$ | (146 | ) | $ | (74 | ) | $ | (101 | ) | $ | 140 | |||||||||
Income
tax expense (benefit) from continuing operations
|
(53 | ) | (2 | ) | 115 | 22 | |||||||||||||||
Net
income (loss) from continuing operations
|
$ | (93 | ) | $ | (72 | ) | $ | (216 | ) | $ | 118 | ||||||||||
Consumer
Portfolio Statistics
|
|||||||||||||||||||||
NAO
|
Number
of contracts originated (# thousands)
|
224 | 58 | 705 | 1,328 | ||||||||||||||||
Dollar
amount of contracts originated
|
$ | 6,600 | $ | 1,364 | $ | 19,791 | $ | 35,392 | |||||||||||||
Dollar
amount of contracts outstanding at end of period
|
7
|
$ | 43,139 | $ | 50,232 | ||||||||||||||||
Share
of new GM retail sales
|
31 | % | 8 | % | 27 | % | 38 | % | |||||||||||||
Share
of new Chrysler retail sales
|
22 | % | N/A | 8 | % | N/A | |||||||||||||||
Dollar
amount of new GM wholesale outstanding at end of period
|
$ | 11,928 | $ | 23,461 | |||||||||||||||||
GM
wholesale penetration at end of period
|
86 | % | 83 | % | |||||||||||||||||
Dollar
amount of new Chrysler wholesale outstanding at end of
period
|
$ | 4,808 | $ | 526 | |||||||||||||||||
Chrysler
wholesale penetration at end of period
|
76 | % | N/A | ||||||||||||||||||
Mix
of retail & lease contract originations (% based on # of
units):
|
|||||||||||||||||||||
New
|
77 | % | 63 | % | 80 | % | 74 | % | |||||||||||||
Used
|
23 | % | 37 | % | 20 | % | 26 | % | |||||||||||||
GM
subvented (% based on # of new units)
|
60 | % | 74 | % | 69 | % | 79 | % | |||||||||||||
Chrysler
subvented (% based on # of new units)
|
44 | % | N/A | 39 | % | N/A | |||||||||||||||
Average
original term in months (U.S. retail only)
|
67 | 58 | 65 | 61 | |||||||||||||||||
Off-lease
remarketing (U.S. only)
|
|||||||||||||||||||||
Sales
proceeds on scheduled lease terminations (36-month) per vehicle -
Serviced
|
8,9
|
$ | 19,228 | $ | 12,122 | $ | 16,281 | $ | 13,454 | ||||||||||||
Off-lease
vehicles terminated - Serviced (# units)
|
9
|
84,845 | 97,129 | 369,981 | 425,567 | ||||||||||||||||
Sales
proceeds on scheduled lease terminations (36-month) per vehicle -
On-balance sheet
|
8
|
$ | 19,280 | $ | 12,369 | $ | 17,286 | $ | 13,435 | ||||||||||||
Off-lease
vehicles terminated - On-balance sheet (# units)
|
10
|
70,106 | 61,926 | 256,476 | 223,922 | ||||||||||||||||
IO
|
Number
of contracts originated (# thousands)
|
110 | 137 | 414 | 678 | ||||||||||||||||
Dollar
amount of contracts originated
|
$ | 1,557 | $ | 1,893 | $ | 5,880 | $ | 11,395 | |||||||||||||
Dollar
amount of contracts outstanding at end of period
|
11
|
$ | 11,641 | $ | 15,381 | ||||||||||||||||
Mix
of retail & lease contract originations (% based on # of
units):
|
|||||||||||||||||||||
New
|
95 | % | 87 | % | 94 | % | 85 | % | |||||||||||||
Used
|
5 | % | 13 | % | 6 | % | 15 | % | |||||||||||||
GM
subvented (% based on # of units)
|
40 | % | 37 | % | 52 | % | 40 | % | |||||||||||||
Asset
Quality Statistics
|
|||||||||||||||||||||
NAO
|
Annualized
net retail charge-offs as a % of managed assets
|
12
|
4.01 | % | 2.51 | % | 3.20 | % | 1.90 | % | |||||||||||
Managed
retail contracts over 30 days delinquent
|
12,13
|
3.92 | % | 3.77 | % | ||||||||||||||||
IO
|
Annualized
net charge-offs as a % of managed assets
|
12
|
2.35 | % | 1.06 | % | 2.05 | % | 0.82 | % | |||||||||||
Managed
retail contracts over 30 days delinquent
|
12,13
|
2.26 | % | 2.15 | % | ||||||||||||||||
Operating
Statistics
|
|||||||||||||||||||||
NAO
|
Allowance
as a % of related on-balance sheet consumer receivables at end of
period
|
4.42 | % | 5.00 | % | ||||||||||||||||
Repossessions
as a % of average number of managed retail contracts
outstanding
|
12
|
3.69 | % | 3.15 | % | 3.54 | % | 2.71 | % | ||||||||||||
Severity
of loss per unit serviced - Retail
|
14
|
||||||||||||||||||||
New
|
$ | 9,635 | $ | 12,747 | $ | 10,214 | $ | 11,404 | |||||||||||||
Used
|
$ | 8,203 | $ | 10,180 | $ | 8,593 | $ | 9,113 | |||||||||||||
IO
|
Allowance
as a % of related on-balance sheet consumer receivables at end of
period
|
1.74 | % | 1.71 | % | ||||||||||||||||
Repossessions
as a % of average number of contracts outstanding
|
0.74 | % | 0.75 | % | 0.83 | % | 0.70 | % | |||||||||||||
(7)
|
Represents
on-balance sheet assets, which includes $17.2 billion of lease assets and
$8.5 billion of retail loans held for sale in
2009
|
(8)
|
Prior
period amounts based on current vehicle mix, in order to be
comparable
|
(9)
|
Serviced
assets represent operating leases where GMAC continues to service the
underlying asset
|
(10)
|
GMAC-owned
portfolio reflects lease assets on GMAC's books after distribution to GM
of automotive leases in connection with the sale transaction which
occurred in November 2006
|
(11)
|
Represents
on-balance sheet assets including retail
leases
|
(12)
|
Managed
assets represent on- and off-balance sheet finance receivables and loans
where GMAC continues to be exposed to credit and/or interest rate
risk
|
(13)
|
Represents
percentage of managed retail amount outstanding inclusive of bankruptcies
and still accruing
|
(14)
|
Serviced
assets represent on- and off-balance sheet finance receivables and loans
where GMAC continues to service the underlying
asset
|
Numbers
may not foot due to rounding
GMAC Confidential
GMAC Financial Services Preliminary Unaudited Fourth Quarter 2009 Financial Highlights |
(Continued)
|
($
in millions)
|
||||||||||||||||||||
Note
|
Fourth
Quarter
|
Twelve
Months
|
||||||||||||||||||
GMAC
Insurance Operations
|
2009
|
2008
|
2009
|
2008
|
||||||||||||||||
Income
from continuing operations before income tax expense
|
$ | 86 | $ | 133 | $ | 329 | $ | 499 | ||||||||||||
Income
tax expense from continuing operations
|
(36 | ) | 37 | 57 | 112 | |||||||||||||||
Net
income from continuing operations
|
$ | 122 | $ | 96 | $ | 272 | $ | 387 | ||||||||||||
Premiums
and service revenue written
|
$ | 343 | $ | 187 | $ | 1,436 | $ | 2,158 | ||||||||||||
Premiums
and service revenue earned
|
$ | 465 | $ | 568 | $ | 1,933 | $ | 2,666 | ||||||||||||
Combined
ratio
|
15
|
100.2 | % | 79.3 | % | 97.0 | % | 89.1 | % | |||||||||||
Investment
portfolio fair value at end of period
|
$ | 4,654 | $ | 5,131 | ||||||||||||||||
Memo:
After-tax at end of period
|
||||||||||||||||||||
Unrealized
gains
|
$ | 119 | $ | 124 | ||||||||||||||||
Unrealized
losses
|
(18 | ) | (189 | ) | ||||||||||||||||
Net
unrealized gains (losses)
|
$ | 101 | $ | (65 | ) | |||||||||||||||
Fourth
Quarter
|
Twelve
Months
|
|||||||||||||||||||
GMAC
Mortgage Operations
|
2009
|
2008
|
2009
|
2008
|
||||||||||||||||
Loss
from continuing operations before income tax expense
|
$ | (4,011 | ) | $ | (790 | ) | $ | (7,301 | ) | $ | (4,008 | ) | ||||||||
Income
tax (benefit) expense from continuing operations
|
197 | (63 | ) | (228 | ) | (7 | ) | |||||||||||||
Net
loss from continuing operations
|
$ | (4,208 | ) | $ | (727 | ) | $ | (7,073 | ) | $ | (4,001 | ) | ||||||||
Gain
(loss) on mortgage loans, net
|
||||||||||||||||||||
Domestic
|
$ | 106 | $ | 14 | $ | 668 | $ | (199 | ) | |||||||||||
International
|
5 | (44 | ) | (215 | ) | (849 | ) | |||||||||||||
Total
gain (loss) on mortgage loans, net
|
$ | 111 | $ | (30 | ) | $ | 453 | $ | (1,048 | ) | ||||||||||
Portfolio
Statistics
|
||||||||||||||||||||
Mortgage
loan production
|
||||||||||||||||||||
Prime
conforming
|
$ | 10,676 | $ | 5,169 | $ | 37,651 | $ | 39,560 | ||||||||||||
Prime
non-conforming
|
286 | 45 | 992 | 1,884 | ||||||||||||||||
Government
|
6,668 | 2,950 | 26,087 | 12,822 | ||||||||||||||||
Nonprime
|
- | - | - | 3 | ||||||||||||||||
Prime
second-lien
|
- | 1 | - | 873 | ||||||||||||||||
Total
Domestic
|
17,630 | 8,165 | 64,731 | 55,141 | ||||||||||||||||
International
|
453 | 371 | 1,405 | 4,238 | ||||||||||||||||
Total
Mortgage production
|
$ | 18,083 | $ | 8,536 | $ | 66,136 | $ | 59,379 | ||||||||||||
Mortgage
loan servicing rights at end of period
|
$ | 3,554 | $ | 2,848 | ||||||||||||||||
Loan
servicing at end of period
|
||||||||||||||||||||
Domestic
|
$ | 349,813 | $ | 365,033 | ||||||||||||||||
International
|
25,941 | 28,754 | ||||||||||||||||||
Total
Loan servicing
|
$ | 375,754 | $ | 393,787 | ||||||||||||||||
Asset
Quality Statistics - Mortgage Consolidated
|
||||||||||||||||||||
Provision
for credit losses by product
|
||||||||||||||||||||
Mortgage
loans held for investment
|
$ | 2,870 | $ | 427 | $ | 4,381 | $ | 1,427 | ||||||||||||
Lending
receivables
|
3 | 301 | 321 | 557 | ||||||||||||||||
Total
Provision for credit losses
|
$ | 2,873 | $ | 728 | $ | 4,702 | $ | 1,984 | ||||||||||||
Allowance
by product at end of period
|
||||||||||||||||||||
Mortgage
loans held for investment
|
$ | 640 | $ | 1,142 | ||||||||||||||||
Lending
receivables
|
137 | 599 | ||||||||||||||||||
Total
Allowance by product
|
$ | 777 | $ | 1,741 | ||||||||||||||||
Allowance
as a % of related receivables at end of period
|
||||||||||||||||||||
Mortgage
loans held for investment
|
16
|
5.75 | % | 4.99 | % | |||||||||||||||
Lending
receivables
|
7.00 | % | 15.87 | % | ||||||||||||||||
Total
Allowance as a % of related receivables
|
16
|
5.93 | % | 6.53 | % | |||||||||||||||
Nonaccrual
loans at end of period
|
16
|
$ | 699 | $ | 4,043 | |||||||||||||||
Nonaccrual
loans as a % of related receivables at end of period
|
16
|
5.34 | % | 15.15 | % | |||||||||||||||
(15)
|
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
|
(16)
|
Gross
carry value before allowance, excludes SFAS 159 & SFAS 140
assets
|
Numbers
may not foot due to rounding
GMAC Confidential