Attached files
| file | filename |
|---|---|
| 8-K - Ally Financial Inc. | v182846_8k.htm |
| EX-99.2 - Ally Financial Inc. | v182846_ex99-2.htm |
GMAC
Financial Services Reports Preliminary First Quarter 2010 Financial
Results
|
§
|
Reported first profitable
quarter since fourth quarter 2008; Fifth consecutive profitable quarter
from the core automotive
business
|
|
§
|
First quarter 2010 net income
of $162 million and core pre-tax income of $564
million
|
|
§
|
Announces intention to rebrand
GMAC Inc. to Ally Financial Inc. on May 10,
2010
|
NEW YORK (May 3, 2010) – GMAC
Financial Services today reported net income of $162 million for the first
quarter of 2010, compared to a net loss of $675 million for the first quarter of
2009. Core pre-tax income, which reflects income from continuing
operations before taxes and original issue discount (OID) amortization expense
from bond exchanges, totaled $564 million in the first quarter of 2010, compared
to a core pre-tax loss of $482 million in the comparable prior year
period.
Core
pre-tax income during the quarter was driven by: higher net interest margin;
gains on asset sales; improved servicing income; and significantly lower loan
loss provision expense, while coverage ratios remained strong. The
lower loan loss provision expense during the quarter was due to the strategic
actions related to the mortgage business taken at year-end 2009, stabilizing
auto credit trends, a strong used car market and the continued liquidation of
certain legacy portfolios.
“The
first quarter marks a key milestone in GMAC’s transformation, as the company
made significant strides toward achieving our strategic objectives,” said GMAC
Chief Executive Officer Michael A. Carpenter. “We achieved
profitability, our premier auto finance franchise continued to expand, the
capital markets reopened to GMAC debt, we have reduced expenses, and we took
several additional steps to contain and reduce risk in the mortgage
business.”
Income/(Loss)
From Continuing Operations by Segment
($
in millions)
|
Increase/(Decrease)
vs.
|
||||||
|
1Q
10
|
4Q
09
|
1Q
09
|
4Q
09
|
1Q
09
|
||
|
North
American Automotive Finance
|
$653
|
$369
|
$660
|
$284
|
$(8)
|
|
|
International
Automotive Finance
|
10
|
(146)
|
(36)
|
156
|
47
|
|
|
Insurance
|
183
|
86
|
36
|
97
|
147
|
|
|
Global
Automotive Services
|
846
|
309
|
660
|
537
|
186
|
|
|
Mortgage
Operations
|
175
|
(4,020)
|
(995)
|
4,195
|
1,170
|
|
|
Corporate
and Other (ex. OID)1
|
(456)
|
(443)
|
(148)
|
(13)
|
(308)
|
|
|
Core
pre-tax income (loss)2
|
564
|
(4,154)
|
(482)
|
4,718
|
1,046
|
|
|
OID
amortization expense3
|
397
|
315
|
257
|
81
|
139
|
|
|
Income
tax expense (benefit)
|
39
|
(603)
|
(126)
|
642
|
166
|
|
|
Income
(loss) from discontinued operations4
|
33
|
(1,087)
|
(61)
|
1,120
|
94
|
|
|
Net
income (loss)
|
$162
|
$(4,953)
|
$(675)
|
$5,115
|
$837
|
|
1.
Corporate and Other as presented includes Commercial Finance, certain equity
investments and net impact from treasury asset liability management
activities.
2.
Core pre-tax earnings is defined as income from continuing operations before
taxes and bond exchange OID amortization expense.
3.
Amortization of bond exchange OID. Includes $101 million of
accelerated amortization in the first quarter of 2010 from certain liability
management transactions.
4.
The following businesses are classified as discontinued operations: the U.S.
consumer property and casualty insurance business (sale completed during first
quarter 2010); the U.K. consumer property and casualty insurance business;
retail automotive finance operations in Argentina, Ecuador and Poland; the
full-service leasing businesses in Australia (sale completed in April 2010),
Belgium, France, Italy (sale completed during fourth quarter 2009), Mexico (sale
completed during fourth quarter 2009), the Netherlands (sale completed during
fourth quarter 2009), Poland (sale completed in April 2010) and the U.K.;
mortgage operations in Continental Europe; and the Commercial Services Division
(North America based factoring business) of the Commercial Finance Group in
Corporate and Other (sale completed in April 2010).
Year-to-Date
Highlights
|
§
|
Completed
the sale of the U.S. consumer property and casualty insurance business,
the North American factoring business of the Commercial Finance Group, the
auto finance retail credit portfolio in Australia, and the full-service
auto leasing businesses in Australia and
Poland.
|
|
§
|
Completed
the sale of the U.S. consumer property and casualty insurance business,
the North American factoring business of the Commercial Finance Group, and
the auto finance retail credit portfolio in
Australia.
|
|
§
|
Received
multi-notch ratings upgrades from four major rating
agencies.
|
|
§
|
Actively
accessed the global institutional secured and unsecured debt
markets.
|
|
|
–
|
Issued
more than 5 billion in U.S. dollar equivalent global unsecured debt to
date in 2010. This included a €1 billion transaction in April,
which was the company’s first institutional unsecured bond offering in
Europe since 2007.
|
|
|
–
|
Issued
more than $6 billion of auto asset-backed securities globally to date in
2010.
|
2
|
|
–
|
Established
a $7 billion secured credit facility at Ally
Bank.
|
|
§
|
Selected
as the global preferred source of wholesale and retail financing for
qualified Saab dealers and customers, and as the preferred source of
retail financing for Thor Industries, the world's largest manufacturer of
recreation vehicles.
|
|
§
|
Expanded retail auto financing reach, as GMAC was added to DealerTrack, a credit application network used by approximately 17,000 dealers across virtually all manufacturers in the U.S. and Canada. |
|
§
|
Retail
penetration rates for both GM and Chrysler continued to
improve.
|
|
§
|
Executed
key steps toward the company’s objective of reducing exposure from the
legacy mortgage operation.
|
|
|
–
|
Residential
Capital, LLC (ResCap) reached an agreement to sell its European mortgage
assets and businesses.
|
|
|
–
|
Sold
whole loan pools totaling $373 million of unpaid principal balance in the
U.S. and the U.K.
|
|
|
–
|
Reached
a settlement with one of our top three counterparties for representation
and warranty claims.
|
|
|
–
|
Issued
$508 million of servicer advance receivable-backed term notes at
ResCap.
|
|
§
|
Announced
the intention to transition the name of the corporation from GMAC Inc. to
Ally Financial Inc. on May 10, 2010 in a strategic decision to implement a
brand for the long-term where the trademark is
company-owned.
|
Liquidity
and Capital
GMAC’s
consolidated cash and cash equivalents were $14.7 billion as of March 31, 2010,
compared to $14.8 billion at Dec. 31, 2009. Included in the
consolidated cash and cash equivalents balance are: $725 million at ResCap; $4.4
billion at Ally Bank, which excludes certain intercompany deposits; and $626
million at the insurance businesses.
3
GMAC’s
total equity at March 31, 2010, was $20.5 billion, compared to $20.8 billion at
Dec. 31, 2009. The
marginal decrease in total equity was due to preferred dividend payments and
accruals, partially offset by first quarter net income. GMAC’s
preliminary first quarter 2010 tier 1 capital ratio was 14.9 percent, compared
to 14.1 percent in the prior quarter. GMAC’s tier 1 capital ratio
improved due to a reduction in risk-weighted assets resulting from asset sales
during the quarter.
Ally
Bank
Ally Bank
reported pre-tax income of $231 million in the first quarter of 2010, compared
to a pre-tax loss of $90 million in the corresponding prior year
period. Improved performance was driven by increased net revenue due
to higher auto originations and investment income, lower loan loss provision
expense related to mortgage, and improved cost of funds. Total assets
at Ally Bank were $55.2 billion at March 31, 2010, compared to $55.3 billion at
year-end 2009.
Ally Bank
has taken steps to diversify its liquidity sources. In April, Ally
Bank announced that it had entered into a $7 billion secured revolving credit
facility with a syndicate of lenders. The new credit facility will
provide incremental liquidity to support dealer floorplan financing and consumer
auto financing and leases. This facility is the first of its kind at
Ally Bank and further strengthens and diversifies its liquidity
sources. In addition, the company has completed three Ally Bank
sponsored automotive asset-backed securitizations totaling more than $2 billion
to date in 2010. The bank also expanded its U.S. online product
portfolio with the introduction of an interest checking account, as Ally Bank
continues to focus on growing deposits.
Deposits
Ally Bank
and ResMor Trust continue to contribute to GMAC’s funding flexibility through
deposit growth. Ally Bank and ResMor Trust deposits, excluding
certain intercompany deposits, increased in the first quarter to $32.0 billion,
from $31.1 billion at Dec. 31, 2009. Retail deposits at Ally Bank
were $17.7 billion at March 31, 2010, compared to $16.9 billion at year-end
2009. Retail deposits also continue to grow as a proportionately
larger contributor to the company’s overall deposit base. As of March
31, 2010, retail deposits at Ally Bank accounted for approximately 60 percent of
total deposits, compared to 37 percent at year-end 2008. Brokered
deposits at Ally Bank totaled $9.8 billion at quarter-end, compared to $10.1
billion at year-end 2009.
4
Global
Automotive Services
Global
Automotive Services consists of GMAC’s auto-centric businesses around the world,
including: North American Automotive Finance, International Automotive Finance
and Insurance. Global Automotive Services reported first
quarter 2010 pre-tax income from continuing operations of $846 million, compared
to $660 million in the comparable prior year period. This represents
the fifth consecutive profitable quarter from the core automotive
business.
North
American Automotive Finance, which includes results for the U.S. and Canada,
reported pre-tax income from continuing operations of $653 million in the first
quarter of 2010, compared to $660 million in the comparable prior year
period. Results were driven by strong originations supported by
improved penetration, remarketing gains due to favorable used vehicle prices,
and a lower loan loss provision expense resulting from improved performance in
both the core automotive portfolio and the Nuvell subprime legacy
portfolio.
International
Automotive Finance reported pre-tax income from continuing operations of $10
million in the first quarter of 2010, compared to a $36 million pre-tax loss
from continuing operations in the same period last year. Results in
the quarter were favorably affected by lower funding costs in line with a lower
asset base and a lower loan loss provision due to improving credit
performance. This improvement was partially offset by lower financing
revenue due to the wind-down of operations in several countries and a loss
related to the reclassification of the Australian loan portfolio to
held-for-sale.
GMAC’s
insurance business reported pre-tax income from continuing operations of $183
million in the first quarter of 2010, compared to $36 million in the prior year
period. Results were primarily driven by strong investment income and
improved underwriting income driven by lower expenses. GMAC remains
focused on streamlining its insurance segment to focus primarily on
dealer-centric products, such as extended service contracts and dealer inventory
insurance.
5
Automotive originations and
penetration
Total
consumer financing originations during the first quarter of 2010 were $8.2
billion. This included $6.2 billion of new originations, $1.2 billion
of used originations and approximately $800 million of new
leases. First quarter 2009 consumer financing originations totaled
$3.7 billion, which included $3.2 billion of new originations, approximately
$400 million of used originations and approximately $150 million of new
leases.
North
American consumer financing originations in the first quarter of 2010 were $6.7
billion, which included $6.0 billion in the U.S. First quarter 2009
consumer financing originations in North America were $2.4 billion, which
included approximately $2.3 billion from the U.S.
International
consumer originations, which include the joint venture in China, were $1.5
billion during the first quarter of 2010, compared to $1.3 billion in the first
quarter of 2009. Approximately 85 percent of GMAC’s first quarter
international consumer originations came from its five primary international
markets: Germany, U.K., Brazil, Mexico and China.
GMAC also
remains focused on its core strength of providing automotive financing to GM and
Chrysler dealers and customers. At March 31, 2010, GMAC’s U.S.
wholesale penetration for GM dealer stock was 87.7 percent, compared to 90.9
percent at year-end 2009 and 80.1 percent at March 31, 2009. U.S.
retail penetration for GM was 33.5 percent during the first quarter of 2010,
compared to 30.3 percent in the prior quarter and 18.6 percent in the first
quarter of 2009.
GMAC’s
U.S. wholesale penetration for Chrysler dealer stock was 76.4 percent at March
31, 2010, compared to 77.3 percent at Dec. 31, 2009. GMAC’s U.S.
retail penetration for Chrysler during the first quarter of 2010 improved
significantly to 42.1 percent, compared to 25.5 percent in the fourth quarter of
2009. This was the result of increased originations due to the
on-boarding of the Chrysler automotive finance business.
Global automotive
delinquencies and credit losses
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 2.87 percent in the first quarter of 2010, compared to 3.48
percent in the fourth quarter of 2009 and 2.82 percent in the first quarter of
2009. The decline from the prior quarter was due to better vintage
performance, improving collection processes and seasonality.
6
Annualized credit losses from continuing
operations declined in the first quarter of 2010 to 2.04 percent of average
managed retail contract assets, versus 3.57 percent in the prior quarter and
2.43 percent in the first quarter of 2009. The decline from the prior
quarter was the result of significantly lower losses in both the core auto
portfolio and the Nuvell subprime legacy portfolio due to improving collection processes and
seasonality. The core auto portfolio credit losses also benefited from
improved underwriting policies. During the quarter, there were strong
recoveries due to a favorable used vehicle market and the company’s improving collection and recovery
processes.
Mortgage
Operations
Mortgage
Operations, which includes ResCap and the mortgage activities of Ally Bank and
ResMor Trust, reported pre-tax income from continuing operations of $175 million
during the first quarter of 2010, versus a pre-tax loss from continuing
operations of $995 million in the comparable prior year
period. Results in the first quarter of 2010 were driven by strong
net servicing revenue, lower loan loss provision expense and lower repurchase
reserve expense. The improved financial performance in the segment is
directly related to the strategic actions taken by GMAC in the fourth quarter of
2009. The ResCap legal entity reported first quarter 2010 net income
of $110 million, compared to net income of $229,000 in the comparable prior year
period. ResCap’s results in the first quarter of 2009 were primarily
driven by gains on the extinguishment of debt.
Global
mortgage loan production in the first quarter of 2010 was $13.3 billion,
compared to $18.1 billion in the fourth quarter of 2009 and $13.4 billion in the
first quarter of 2009. First quarter 2010 production was primarily
driven by prime conforming and government loans. Production was down
compared to the prior quarter due to lower mortgage market volumes and seasonal
patterns.
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 March 31, 2010, GMAC had executed more
than 17,000 HAMP permanent loan modifications and had started more than 40,000
HAMP trial modifications. GMAC’s active modifications as a percentage
of estimated eligible 60+ day delinquencies leads all other
servicers.
7
Corporate
and Other
Corporate
and Other reported a first quarter 2010 core pre-tax loss of $456 million,
compared to a core pre-tax loss of $148 million in the first quarter of
2009. Including OID, Corporate and Other reported a pre-tax loss from
continuing operations of $853 million in the first quarter of 2010, compared to
a pre-tax loss from continuing operations of $405 million in the comparable
prior year period. The main drivers of the loss in the first quarter
of 2010 were treasury asset liability management activities, which include
corporate interest expense, and a $397 million expense related to the
amortization of bond exchange OID, which includes a $101 million negative impact
related to the acceleration of OID resulting from certain liability management
transactions.
Strategic
Direction
GMAC has
taken a number of strategic actions designed to put the company on a path toward
improved performance and a more defined strategic direction centered around six
key priorities:
|
|
§
|
Become
the premier global auto finance provider for dealers and
consumers.
|
|
|
§
|
Improve
our cost structure and efficiency.
|
|
|
§
|
Improve
our access to the capital markets, our debt ratings and cost of
funds.
|
|
|
§
|
Fully
transition to a bank holding company
model.
|
|
|
§
|
Improve
our liquidity position by building deposits at Ally
Bank.
|
|
|
§
|
Continue
to de-risk our mortgage business and define a viable long-term strategy
for our mortgage origination and servicing
business.
|
The
company made substantial progress on its priorities in the first quarter of 2010
and remains focused on achieving additional results and working toward the
timely repayment of the U.S. Treasury investments.
In
evaluating the strategic direction of the company, GMAC’s board of directors and
management team determined that the company should implement a brand that could
be leveraged for the longer-term. The company currently has an
agreement to license the “GMAC” trademark from General Motors, and the license
expires in 2016. As a result, effective May 10, 2010, GMAC Inc. (or
GMAC Financial Services) will transition the name of the corporation to Ally
Financial Inc. (Ally). This transition will enable the company to
leverage a brand that currently exists in the portfolio to support its efforts
toward becoming more customer-focused.
8
The Ally
brand was first introduced at Ally Bank in May 2009 and will now be adopted at
the parent company. The transition to the Ally brand will be limited to
the corporate entity and there will be no change to the branding of the
company’s operating units at this time. Options to potentially use
the Ally brand more broadly within the company are currently being evaluated;
however, decisions have not been finalized.
About
GMAC Financial Services
GMAC
Financial Services is one of the world’s largest automotive financial services
companies. As the official preferred source of financing for General
Motors, Chrysler, Saab, Suzuki and Thor Industries vehicles, GMAC offers a full
suite of automotive financing products and services in key markets around the
world. GMAC’s other business units include mortgage operations and
commercial finance, and the company offers retail banking products through its
online bank, Ally Bank. With more than $179 billion in assets as of
March 31, 2010, GMAC operates as a bank holding company. For more
information, visit the GMAC media site at http://media.gmacfs.com.
# #
#
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.
9
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
Jim
Olecki
212-884-7955
james.olecki@gmacfs.com
10
GMAC Financial Services Preliminary
Unaudited First Quarter 2010 Financial Highlights
($ in millions)
|
1Q
|
1Q
|
||||||
|
Summary
Statement of Income
|
Note
|
2010
|
2009
|
||||
|
Revenue
|
|||||||
|
Finance
receivables and loans
|
|||||||
|
Consumer
|
$1,162
|
$1,292
|
|||||
|
Commercial
|
436
|
426
|
|||||
|
Notes
receivable from General Motors
|
55
|
42
|
|||||
|
Total
finance receivables and loans
|
1,653
|
1,760
|
|||||
|
Loans
held-for-sale
|
224
|
94
|
|||||
|
Interest
on trading securities
|
1
|
23
|
|||||
|
Interest
and dividends on available-for-sale investment securities
|
100
|
57
|
|||||
|
Interest
bearing cash
|
15
|
44
|
|||||
|
Other
interest income
|
4
|
29
|
|||||
|
Operating
leases
|
1,163
|
1,603
|
|||||
|
Total
financing revenue and other interest income
|
3,160
|
3,610
|
|||||
|
Interest
expense
|
|||||||
|
Interest
on deposits
|
158
|
177
|
|||||
|
Interest
on short-term borrowings
|
117
|
161
|
|||||
|
Interest
on long-term debt
|
1,485
|
1,738
|
|||||
|
Total
interest expense
|
1,760
|
2,076
|
|||||
|
Depreciation
expense on operating lease assets
|
656
|
1,057
|
|||||
|
Net
financing revenue
|
744
|
477
|
|||||
|
Other
revenue
|
|||||||
|
Servicing
fees
|
387
|
408
|
|||||
|
Servicing
asset valuation and hedge activities, net
|
(133)
|
(352)
|
|||||
|
Total
servicing income, net
|
254
|
56
|
|||||
|
Insurance
premiums and service revenue earned
|
468
|
495
|
|||||
|
Gain
on mortgage and automotive loans, net
|
282
|
295
|
|||||
|
(Loss)
gain on extinguishment of debt
|
(118)
|
644
|
|||||
|
Other
gain (loss) on investments, net
|
140
|
(16)
|
|||||
|
Other
income, net of losses
|
88
|
(211)
|
|||||
|
Total
other revenue
|
1,114
|
1,263
|
|||||
|
Total
net revenue
|
1,858
|
1,740
|
|||||
|
Provision
for loan losses
|
145
|
795
|
|||||
|
Noninterest
expense
|
|||||||
|
Compensation
and benefits expense
|
430
|
371
|
|||||
|
Insurance
losses and loss adjustment expenses
|
211
|
285
|
|||||
|
Other
operating expenses
|
904
|
1,029
|
|||||
|
Total
noninterest expense
|
1,545
|
1,685
|
|||||
|
Income
(loss) from continuing operations before income tax expense
(benefit)
|
168
|
(740)
|
|||||
|
Income
tax expense (benefit) from continuing operations
|
39
|
(126)
|
|||||
|
Net
income (loss) from continuing operations
|
129
|
(614)
|
|||||
|
Income
(loss) from discontinued operations, net of tax
|
33
|
(61)
|
|||||
|
Net
income (loss)
|
$162
|
($675)
|
|||||
|
Mar
31,
|
Mar
31,
|
Dec
31,
|
||||||
|
Select
Balance Sheet Data
|
2010
|
2009
|
2009
|
|||||
|
Cash
and cash equivalents
|
$14,670
|
$13,333
|
$14,788
|
|||||
|
Loans
held-for-sale
|
13,998
|
10,357
|
20,625
|
|||||
|
Finance
receivables and loans, net
|
1
|
|||||||
|
Consumer
|
51,928
|
60,062
|
42,849
|
|||||
|
Commercial
|
36,293
|
35,940
|
33,941
|
|||||
|
Notes
receivable from General Motors
|
819
|
1,169
|
911
|
|||||
|
Investments
in operating leases, net
|
2
|
14,003
|
23,527
|
15,995
|
||||
|
Total
assets
|
179,427
|
179,552
|
172,306
|
|||||
|
Total
debt
|
3
|
97,885
|
113,424
|
98,313
|
||||
|
First
Quarter
|
|||||||
|
Operating
Statistics
|
2010
|
2009
|
|||||
|
GMAC's
Worldwide Cost of Borrowing
|
4
|
5.18%
|
5.95%
|
||||
|
Tier
1 Capital
|
$22,088
|
$20,548
|
|||||
|
Tier
1 Common Capital
|
7,368
|
14,261
|
|||||
|
Total
Risk-Based Capital
|
24,372
|
23,410
|
|||||
|
Tangible
Common Equity
|
7,846
|
14,327
|
|||||
|
Tangible
Assets
|
$178,893
|
$178,145
|
|||||
|
Risk-Weighted
Assets
|
5
|
$148,409
|
$198,452
|
||||
|
Tier
1 Capital Ratio
|
14.9%
|
10.4%
|
|||||
|
Tier
1 Common Capital Ratio
|
5.0%
|
7.2%
|
|||||
|
Total
Risk-Based Capital Ratio
|
16.4%
|
11.8%
|
|||||
|
Tangible
Common Equity / Tangible Assets
|
4.4%
|
8.0%
|
|||||
|
Tangible
Common Equity / Risk-Weighted Assets
|
5.3%
|
7.2%
|
|||||
(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)
Calculated by dividing total average interest expense including discontinued
operations by total average interest bearing liabilities including discontinued
operations
(5) 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 March 2010 preliminary
risk-weighted assets reflect estimated on-balance sheet risk weighted assets of
$140B and derivative and off-balance sheet risk-weighted assets of
$8B
Numbers
may not foot due to rounding
GMAC Financial Services Preliminary
Unaudited First Quarter 2010 Financial Highlights
($ in
millions)
|
Note
|
First
Quarter
|
|||||
|
GMAC
Automotive Finance Operations
|
2010
|
2009
|
||||
|
NAO
|
Income
from continuing operations before income tax expense
|
$653
|
$660
|
|||
|
Income
tax expense from continuing operations
|
257
|
44
|
||||
|
Net
income from continuing operations
|
$396
|
$616
|
||||
|
IO
|
Income
(loss) from continuing operations before income tax
expense
|
$10
|
($36)
|
|||
|
Income
tax (benefit) expense from continuing operations
|
(11)
|
(6)
|
||||
|
Net
income (loss) from continuing operations
|
$21
|
($30)
|
||||
|
Consumer
Portfolio Statistics
|
||||||
|
NAO
|
Number
of contracts originated (# thousands)
|
246
|
88
|
|||
|
Dollar
amount of contracts originated
|
$6,678
|
$2,407
|
||||
|
Dollar
amount of contracts outstanding at end of period
|
$46,041
|
$46,289
|
||||
|
Share
of new GM retail sales
|
34%
|
17%
|
||||
|
Share
of new Chrysler retail sales
|
36%
|
0%
|
||||
|
Dollar
amount of new GM wholesale outstanding at end of period
|
6
|
$14,654
|
$20,440
|
|||
|
GM
wholesale penetration at end of period
|
6
|
89%
|
83%
|
|||
|
Dollar
amount of new Chrysler wholesale outstanding at end of
period
|
$5,924
|
$380
|
||||
|
Chrysler
wholesale penetration at end of period
|
75%
|
3%
|
||||
|
Mix
of retail & lease contract originations (% based on # of
units):
|
||||||
|
New
|
76%
|
77%
|
||||
|
Used
|
24%
|
23%
|
||||
|
GM
subvented (% based on # of new units)
|
52%
|
79%
|
||||
|
Chrysler
subvented (% based on # of new units)
|
53%
|
0%
|
||||
|
Average
original term in months (U.S. retail only)
|
65
|
63
|
||||
|
Off-lease
remarketing (U.S. only)
|
||||||
|
Sales
proceeds on scheduled lease terminations (36-month) per vehicle -
Serviced
|
7,8
|
19,059
|
14,180
|
|||
|
Off-lease
vehicles terminated - Serviced (# units)
|
8
|
96,056
|
97,648
|
|||
|
Sales
proceeds on scheduled lease terminations (36-month) per vehicle -
On-balance sheet
|
7
|
19,036
|
14,468
|
|||
|
Off-lease
vehicles terminated - On-balance sheet (# units)
|
9
|
84,722
|
63,734
|
|||
|
IO
|
Number
of contracts originated (# thousands)
|
104
|
99
|
|||
|
Dollar
amount of contracts originated
|
10
|
$1,487
|
$1,255
|
|||
|
Dollar
amount of contracts outstanding at end of period
|
11
|
$11,470
|
$16,012
|
|||
|
Mix
of retail & lease contract originations (% based on # of
units):
|
||||||
|
New
|
95%
|
93%
|
||||
|
Used
|
5%
|
7%
|
||||
|
GM
subvented (% based on # of units)
|
34%
|
66%
|
||||
|
Asset
Quality Statistics
|
||||||
|
NAO
|
Annualized
net retail charge-offs as a % of managed assets
|
2.30%
|
2.91%
|
|||
|
Managed
retail contracts over 30 days delinquent
|
3.07%
|
2.93%
|
||||
|
IO
|
Annualized
net charge-offs as a % of managed assets
|
10
|
1.24%
|
1.12%
|
||
|
Managed
retail contracts over 30 days delinquent
|
10
|
2.25%
|
2.53%
|
|||
|
Operating
Statistics
|
||||||
|
NAO
|
Allowance
as a % of related on-balance sheet consumer receivables at end of
period
|
3.32%
|
4.99%
|
|||
|
Repossessions
as a % of average number of managed retail contracts
outstanding
|
3.46%
|
3.62%
|
||||
|
Severity
of loss per unit serviced - Retail
|
12
|
|||||
|
New
|
$8,951
|
$11,246
|
||||
|
Used
|
$7,504
|
$9,284
|
||||
|
IO
|
Allowance
as a % of related on-balance sheet consumer receivables at end of
period
|
1.82%
|
1.86%
|
|||
|
Repossessions
as a % of average number of contracts outstanding
|
0.70%
|
0.86%
|
||||
(6)
Dealer inventories include in-transit vehicles
(7) Prior
period amounts based on current vehicle mix, in order to be
comparable
(8)
Serviced assets represent operating leases where GMAC continues to service the
underlying asset
(9)
GMAC-owned portfolio reflects lease assets on GMAC's books after distribution to
GM of automotive leases in connection with the sale transaction which occurred
in November 2006
(10)
Continuing Operations only
(11)
Represents on-balance sheet assets including retail leases
(12)
Serviced assets represent on-balance sheet finance receivables and loans where
GMAC continues to service the underlying asset
Numbers
may not foot due to rounding
GMAC Financial Services Preliminary
Unaudited First Quarter
2010 Financial Highlights
($ in
millions)
|
Note
|
First
Quarter
|
|||||
|
GMAC
Insurance Operations
|
2010
|
2009
|
||||
|
Income
from continuing operations before income tax expense
|
$183
|
$36
|
||||
|
Income
tax expense from continuing operations
|
61
|
6
|
||||
|
Net
income from continuing operations
|
$122
|
$30
|
||||
|
Premiums
and service revenue written
|
423
|
352
|
||||
|
Premiums
and service revenue earned
|
460
|
483
|
||||
|
Combined
ratio
|
13
|
91.3%
|
94.2%
|
|||
|
Investment
portfolio fair value at end of period
|
$4,483
|
$4,992
|
||||
|
Memo:
After-tax at end of period
|
||||||
|
Unrealized
gains
|
154
|
177
|
||||
|
Unrealized
losses
|
(19)
|
(290)
|
||||
|
Net
unrealized gains (losses)
|
$135
|
($113)
|
||||
|
First
Quarter
|
||||||
|
GMAC
Mortgage Operations
|
2010
|
2009
|
||||
|
Income
(loss) from continuing operations before income tax
expense
|
$175
|
($995)
|
||||
|
Income
tax expense (benefit) from continuing operations
|
9
|
(90)
|
||||
|
Net
income (loss) from continuing operations
|
$166
|
($905)
|
||||
|
Gain
on mortgage loans, net
|
||||||
|
Domestic
|
$149
|
$186
|
||||
|
International
|
53
|
7
|
||||
|
Total
gain on mortgage loans, net
|
$202
|
$193
|
||||
|
Portfolio
Statistics
|
||||||
|
Mortgage
loan production
|
||||||
|
Prime
conforming
|
$9,476
|
$8,506
|
||||
|
Prime
non-conforming
|
370
|
17
|
||||
|
Government
|
3,121
|
4,672
|
||||
|
Nonprime
|
-
|
-
|
||||
|
Prime
second-lien
|
-
|
-
|
||||
|
Total
Domestic
|
12,968
|
13,196
|
||||
|
International
|
292
|
202
|
||||
|
Total
Mortgage production
|
$13,260
|
$13,397
|
||||
|
Mortgage
loan servicing rights at end of period
|
$3,543
|
$2,587
|
||||
|
Loan
servicing at end of period
|
||||||
|
Domestic
|
$349,032
|
$359,257
|
||||
|
International
|
29,870
|
26,594
|
||||
|
Total
Loan servicing
|
$378,902
|
$385,851
|
||||
|
Asset
Quality Statistics
|
||||||
|
Provision
for loan losses by product
|
||||||
|
Mortgage
loans held for investment
|
$17
|
$461
|
||||
|
Lending
receivables
|
($10)
|
$145
|
||||
|
Total
Provision for loan losses
|
$6
|
$607
|
||||
|
Allowance
by product at end of period
|
||||||
|
Mortgage
loans held for investment
|
$635
|
$1,462
|
||||
|
Lending
receivables
|
82
|
587
|
||||
|
Total
Allowance by product
|
$717
|
$2,049
|
||||
|
Allowance
as a % of related receivables at end of period
|
||||||
|
Mortgage
loans held for investment
|
14
|
5.65%
|
6.51%
|
|||
|
Lending
receivables
|
5.30%
|
14.48%
|
||||
|
Total
Allowance as a % of related receivables
|
14
|
5.60%
|
7.73%
|
|||
|
Nonaccrual
loans at end of period
|
14
|
$681
|
$5,778
|
|||
|
Nonaccrual
loans as a % of related receivables at end of period
|
14
|
5.33%
|
21.78%
|
|||
(13)
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
(14)
Gross carry value before allowance, excludes SFAS 159 & SFAS 140
assets
Numbers
may not foot due to rounding