Attached files
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| 8-K - Ally Financial Inc. | v182846_8k.htm |
| EX-99.1 - Ally Financial Inc. | v182846_ex99-1.htm |
Contact GMAC Investor Relations at (866) 710-4623 or investor.relations@gmacfs.com
Preliminary
2010
First Quarter
Results
May 3, 2010
10:00 AM EDT
Forward-Looking Statements
In the presentation that follows 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,” “explore,” “positions,”
“intend,” “evaluate,”
“pursue,” “seek,” “may,” “would,” “could,” “should,” “believe,” “potential,” “continue,” or similar expressions is intended
to identify forward-
looking statements. All statements herein and in related 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 except where expressly required by law. A reconciliation of certain non-
GAAP financial measures included within this presentation
is provided in the supplemental charts.
Use of the term “loans” describes products associated with direct and indirect lending activities of GMAC’s global operations. The specific
products include retail installment sales
contracts, loans, lines of credit, leases or other financing products. The term “originate” refers to
GMAC’s purchase, acquisition or direct origination of various “loan” products.
2
Progress Year-To-Date
Improved Financial Performance
Core pre-tax earnings(1) of $564 million in 1Q 10
Net income of $162 million
Improving credit trends
Expense reduction efforts producing results
Streamlined platforms and divested certain non-core
operations
Positive impact from 4Q 09 mortgage actions
Enhanced Market Access and Liquidity
Issued over $5 billion of unsecured debt globally
Issued over $6 billion of auto asset-backed securities
globally
Established $7 billion secured credit facility at Ally
Bank
Net bank deposits grew approximately $900 million
with strong CD retention rates
Achieved multi-notch ratings upgrades from four major
rating agencies
Expanding Premier Auto Finance Franchise
Increased penetration rates for both GM and Chrysler
Leasing activity is picking up
Added to DealerTrack credit application network,
expanding retail auto financing reach
Reached agreements to be the preferred financing
provider for Saab and Thor Industries
Executing on Mortgage Risk Containment Strategy
Signed definitive agreement to sell European
mortgage origination and servicing business
Reached important additional settlement for mortgage
rep and warranty claims
Initiated process of selling select whole loan pools with
additional sales in progress
Transactions thus far have validated 4Q 09 mortgage
marks and strategy
ResCap, LLC required no additional capital or liquidity
support in 1Q 10
(1) Core pre-tax earnings is a non-GAAP financial measure. Please refer to slide 6 for further details
3
Rebranding as Ally Financial
Transformation
GMAC Inc. to be rebranded as Ally Financial Inc. on
May 10, 2010
Investing in a brand that is company-owned
Supports efforts toward becoming more customer-
focused
4
Strategic Objectives
Become the premier global auto finance provider for dealers and consumers
Improve our cost structure and efficiency
Demonstrate consistent and diversified access to capital markets
Fully transition to a bank holding company model
Improve our liquidity position by building a stable deposit base at Ally Bank
Continue to de-risk our mortgage business and define a viable long-term strategy for our
mortgage origination and servicing business
Focusing on these key objectives will assist GMAC in achieving the necessary milestones for
timely repayment of the U.S. Treasury investments
5
First Quarter 2010 Review
GMAC Inc. earned core pre-tax income(1) of $564 million and net income of $162 million in
the first quarter
Total revenue increase driven by higher margins, gains on asset sales and servicing income
Provision expense down significantly while Allowance coverage ratios remain robust
Stabilizing auto credit trends, strong used car market and continued liquidation of legacy portfolios
4Q 09 included $2.4 billion of mortgage asset write-downs (through provision) and transfers to held-for-sale
Balance sheet growth reflects implementation of FAS 166/167, partially offset by asset sales
6
Key Statistics
($ millions)
1Q 10
4Q 09
1Q 09
4Q 09
1Q 09
Total net revenue (ex. OID)
2,254
$
1,820
$
1,998
$
434
$
257
$
Provision for loan losses
145
3,432
795
(3,287)
(650)
Controllable expenses
(2)
937
1,225
932
(288)
5
Other noninterest expenses
608
1,317
753
(709)
(145)
Total noninterest expense
1,545
2,542
1,685
(997)
(140)
Core pre-tax income (loss)
(1)
564
$
(4,154)
$
(482)
$
4,718
$
1,046
$
OID amortization expense
(3)
397
315
257
81
139
Income tax expense / (benefit)
39
(603)
(126)
642
166
Income (loss) from discontinued operations
33
(1,087)
(61)
1,120
94
Net income (loss)
162
$
(4,953)
$
(675)
$
5,115
$
837
$
Total assets
179,427
$
172,306
$
179,552
$
7,121
$
(125)
$
Tier 1 capital ratio (preliminary)
14.9%
14.1%
10.4%
Total risk-based capital ratio (preliminary)
16.4%
15.6%
11.8%
(1) Core pre-tax earnings is defined as income from continuing operations before taxes and bond exchange original issue discount ("OID") amortization expense
(2) Includes employee related costs, consulting and legal fees, marketing, information technology, facility, portfolio servicing, and restructuring expenses
(3) Amortization of bond exchange OID. Includes $101 million of accelerated amortization in 1Q 10 from certain liability management transactions
Increase/(Decrease) vs.
6
Results by Segment
(1) Corporate and Other as presented includes Commercial Finance, certain equity investments and net impact from treasury ALM activities
(2) See slide 19 for a listing of businesses classified as discontinued operations
All four operating segments were profitable
Global Automotive Services: Originations and credit trends continued to improve in both North
American and International segments
Mortgage Operations: Strong servicing revenue and stable value of legacy assets
Treasury ALM: $(267)
CFG/Other: $(189)
7
($ millions)
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)
564
$
(4,154)
$
(482)
$
4,718
$
1,046
$
OID amortization expense
397
315
257
81
139
Income tax expense (benefit)
39
(603)
(126)
642
166
Income (loss) from discontinued operations
(2)
33
(1,087)
(61)
1,120
94
Net income (loss)
162
$
(4,953)
$
(675)
$
5,115
$
837
$
Increase/(Decrease) vs.
7
Global Automotive Services
Global Automotive Services earned $846 million of pre-tax income from continuing operations compared to
$309 million in the fourth quarter of 2009
Fifth consecutive profitable quarter from core auto business
North American Operations key driver of results, with International Operations and Insurance also
profitable for the quarter
Total consumer originations were flat to 4Q 09
Increase in lease originations helped to offset weaker auto sales in January and February
Added to the DealerTrack network of over 17,000 dealers to expand the reach of retail auto finance
business
Provides GMAC with access to essentially all U.S. and Canadian dealers across all manufacturers
Reached agreement to become the preferred financing provider for Saab and Thor Industries
$309
$846
$660
(1)
$420
$591
Pre-Tax Income from Continuing Operations
Global Consumer Originations
($ millions)
($ billions)
(1) Included retail balloon loans until 3Q 08
Note: Includes North American and International Operations (auto loans and leases)
$451
$272
$369
$653
$40
$(146)
$10
$36
$99
$86
$183
$660
$41
$(36)
$108
$(400)
$(200)
$-
$200
$400
$600
$800
1Q 09
2Q 09
3Q 09
4Q 09
1Q 10
North American
International
Insurance
$14.9
$13.3
$3.3
$3.7
$6.1
$7.7
$8.2
$8.2
$0
$5
$10
$15
$20
2Q 08
3Q 08
4Q 08
1Q 09
2Q 09
3Q 09
4Q 09
1Q 10
New - Retail
New - Leases
Used
Total
8
North American Automotive Finance
North American segment reported pre-tax
income of $653 million driven by lower provision
expense and strong gains on loan sales
GMAC’s retail penetration of both GM and
Chrysler sales increased in the quarter
Offering leases on select models
Less than half of retail originations were
driven by incentive programs
Used vehicle values rose in the quarter, hitting a
record high in March(a)
Strong remarketing gains
Positive impact to recovery rates resulted
in lower provision expense
(a) As tracked by the Manheim Used Vehicle Value Index since 1995
Sales Proceeds as % of ALG
(1)
(U.S. Lease Scheduled Terminations)
(1) Estimated remarketing proceeds at time of lease origination
75%
80%
85%
90%
95%
100%
105%
110%
115%
Jan
Feb
Mar
Apr
May
Jun
Jul
Aug
Sep
Oct
Nov
Dec
2007
2008
2009
2010
Key Financials
($ millions)
1Q 10
4Q 09
1Q 09
Net financing revenue
913
$
830
$
860
$
Total other revenue
203
231
310
Total net revenue
1,116
1,061
1,170
Provision for loan losses
101
340
134
Noninterest expense
362
352
376
Pre-tax income from continuing ops
653
$
369
$
660
$
Total assets
(1)
74,786
$
68,282
$
68,331
$
Key Statistics
1Q 10
4Q 09
1Q 09
U.S. Market
SAAR
(units in millions)
11.0
10.8
9.5
Industry Light Vehicle Sales
(units in millions)
2.5
2.6
2.2
GM Market Share
18.8%
20.6%
18.8%
Chrysler Market Share
9.2%
8.3%
11.3%
U.S. GMAC Retail Penetration
GM
33.5%
30.3%
18.6%
Chrysler
42.1%
25.5%
0.1%
U.S. GMAC Wholesale Penetration
(2)
GM
87.7%
90.9%
80.1%
Chrysler
76.4%
77.3%
3.9%
U.S. GMAC Retail Originations
($ billions)
GM
4.1
$
4.7
$
2.3
$
Chrysler
1.6
1.0
0.0
Other
0.3
0.2
0.0
Total
6.0
$
5.9
$
2.3
$
Leases as a % of Originations
11.8%
3.9%
0.0%
U.S. Incentivized Originations
(% of new units)
47.2%
51.9%
78.7%
(1) Total assets increased by approx $7 billion as of 1/1/10 due to implementation of FAS 166/167
(2) Penetration rates based on end of period dealer stocks
9
International Automotive Finance
International Operations earned $10 million of
pre-tax income compared to a loss of $146
million in 4Q 09
Provision expense declined driven by
lower charge-off levels and improving
recovery performance in Europe and Latin
America
Noninterest expense improved as wind-
down costs are moderating
Other revenue impacted by $41 million
loss due to movement of Australian
portfolio to held-for-sale
Segment streamlined with 85% of new
originations coming from five main countries
China and Brazil continue to provide strong
originations
Liquidity continues to improve in local
jurisdictions
Executed first-ever public retail
securitization in Mexico
Additional bank capacity received
Key Financials
($ millions)
1Q 10
4Q 09
1Q 09
Net financing revenue
192
$
222
$
152
$
Total other revenue
59
45
76
Total net revenue
251
267
228
Provision for loan losses
22
95
54
Noninterest expense
219
318
210
Pre-tax income (loss) from continuing ops
10
$
(146)
$
(36)
$
Total assets
19,435
$
21,860
$
25,705
$
Consumer Originations
($ millions)
1Q 10
4Q 09
1Q 09
Germany
259
$
306
$
403
$
Brazil
295
300
123
U.K.
120
131
135
Mexico
141
110
120
China
(1)
456
480
200
Other
216
230
274
Total International Operations
1,487
$
1,557
$
1,255
$
(1) Originations in China part of a joint-venture in which GMAC owns a minority interest
10
Delinquency trends in core auto portfolio declined in the first quarter
Decline attributed to better vintage performance, improved collection processes and seasonal trends
Collection efforts focused on Nuvell subprime portfolio, combined with seasonality, beginning to make
headway as delinquent dollars declined by approximately $160 million in the first quarter
Global Automotive Finance: Consumer Delinquency Trends
Global Delinquencies - Managed
Retail Contract Amount
$ Amount of Contracts Greater than 30 Days Past Due (millions)
2.22%
2.62%
2.80%
2.91%
2.66%
2.96%
3.31%
2.82%
3.27%
3.46%
3.48%
2.87%
$0
$500
$1,000
$1,500
$2,000
$2,500
4Q 08
1Q 09
2Q 09
3Q 09
4Q 09
1Q 10
0.00%
0.50%
1.00%
1.50%
2.00%
2.50%
3.00%
3.50%
4.00%
4.50%
Nuvell Delinquent Contract $
Delinquent Contract $ (excluding Nuvell)
% of Retail Contract $ Outstanding
% of Retail Contract $ Outstanding (excluding Nuvell)
Loans > 30 Days Past Due
North
America
Europe
Asia
Pacific
Latin
America
Global
1Q 10
3.07%
0.98%
1.07%
4.70%
2.87%
4Q 09
3.92%
1.02%
1.03%
4.68%
3.48%
Quarter-over-Quarter Change
-85 bps
-4 bps
+4 bps
+2 bps
-61 bps
11
Global Automotive Finance: Consumer Loss Trends
Losses down significantly in both core auto portfolio and Nuvell subprime portfolio
Results reflect impact from improved underwriting policies
Strong recoveries due to healthy used car market and improved collection/recovery processes and
efforts
3Q 09 and 4Q 09 elevated due to change in charge-off policy
Global Annualized Credit Losses - Managed Retail Contracts
North American Loss Per Vehicle (Serviced Basis)
($ millions)
(1) 3Q and 4Q 2009 elevated due to change in charge-off policy
1.56%
1.84%
1.80%
2.39%
2.48%
1.30%
2.04%
3.57%
3.29%
2.29%
2.43%
2.12%
$0
$100
$200
$300
$400
$500
4Q 08
1Q 09
2Q 09
3Q 09
4Q 09
1Q 10
0.00%
0.50%
1.00%
1.50%
2.00%
2.50%
3.00%
3.50%
4.00%
Nuvell Credit Losses
Credit Losses (excluding Nuvell)
% of Avg. Managed Assets
% of Avg. Managed Assets (excluding Nuvell)
Delinquent
Contracts
Delinquencies
as a % of
Managed
Contracts
$12,747
$11,246
$10,398
$9,288
$9,635
$8,951
$6,000
$8,000
$10,000
$12,000
$14,000
4Q 08
1Q 09
2Q 09
3Q 09
4Q 09
1Q 10
(1)
(1)
Net Retail Losses (% Avg Assets)
North
America
Europe
Asia
Pacific
Latin
America
Global
1Q 10
2.30%
0.57%
0.25%
2.72%
2.04%
4Q 09
4.01%
1.95%
1.17%
3.49%
3.57%
Quarter-over-Quarter Change
-171 bps
-138 bps
-93 bps
-77 bps
-153 bps
12
Global Automotive Finance: Credit Allowance Coverage Ratios
North American consumer coverage ratios decreased in the first quarter
Decrease primarily driven by continued runoff of our liquidating portfolios and by the inclusion of FAS
166/167 assets (approximately $7 billion as of 1/1/10) that are near or past peak loss projections
Commercial coverage down slightly as impact of higher balances offset by improved dealer credit quality
North American Auto
Consumer
($ millions)
1Q 10
4Q 09
1Q 09
4Q 09
1Q 09
Allowance balance
942
$
822
$
1,041
$
120
$
(99)
$
Total consumer loans
28,341
$
18,604
$
20,842
$
9,737
$
7,499
$
Coverage ratio
3.3%
4.4%
5.0%
-1.1%
-1.7%
Commercial
1Q 10
4Q 09
1Q 09
4Q 09
1Q 09
Allowance balance
161
$
162
$
183
$
(1)
$
(22)
$
Total commercial loans
28,546
$
25,048
$
21,915
$
3,498
$
6,632
$
Coverage ratio
0.56%
0.65%
0.83%
-0.08%
-0.27%
International Auto
Consumer
($ millions)
1Q 10
4Q 09
1Q 09
4Q 09
1Q 09
Allowance balance
178
$
202
$
256
$
(24)
$
(78)
$
Total consumer loans
9,773
$
11,641
$
13,728
$
(1,868)
$
(3,955)
$
Coverage ratio
1.8%
1.7%
1.9%
0.1%
0.0%
Commercial
1Q 10
4Q 09
1Q 09
4Q 09
1Q 09
Allowance balance
44
$
49
$
48
$
(5)
$
(4)
$
Total commercial loans
4,035
$
4,587
$
6,195
$
(552)
$
(2,160)
$
Coverage ratio
1.10%
1.07%
0.78%
0.03%
0.32%
Note: Coverage ratio defined as allowance for loan losses as a percentage of end of period assets
Increase/(Decrease) vs.
Increase/(Decrease) vs.
Increase/(Decrease) vs.
Increase/(Decrease) vs.
13
Insurance
Segment streamlined to focus primarily on
dealer-centric products
Extended service contracts
Dealer inventory insurance
Executed sale of U.S. property and
casualty business
Written premiums up in the first quarter
Increase in vehicle service contracts
Increase in government related
contracts in Latin America
Strong investment income driven by
market conditions and portfolio
performance
Favorability in combined ratio due to
expense reductions and lower weather
related losses
Key Financials
($ millions)
1Q 10
4Q 09
1Q 09
Insurance premiums and service revenue earned
460
$
465
$
483
$
Investment income
141
88
5
Other income
20
17
23
Total insurance premiums and other income
621
570
511
Insurance losses and loss adjustment expenses
196
212
220
Acquisition and underwriting expenses
242
272
255
Total expense
438
484
475
Pre-tax income from continuing ops
183
$
86
$
36
$
Total assets
9,083
$
10,614
$
12,156
$
Key Statistics
1Q 10
4Q 09
1Q 09
Written Premiums
($ millions)
Dealer Products & Services
226
$
192
$
202
$
International
197
151
150
Total
423
$
343
$
352
$
Loss ratio
41%
44%
44%
Underwriting expense ratio
50%
56%
51%
Combined ratio
91%
100%
94%
14
Mortgage Operations
Mortgage Operations reported pre-tax
income of $175 million in the first quarter
ResCap, LLC legal entity earned net
income of $110 million
Progress made towards minimizing the risk
of legacy mortgage business
Signed agreement to sell European
mortgage operations
Executed whole loan sales that have
thus far validated 4Q 09 marks
UPB of $373 million sold with
cash proceeds of $220 million at
a gain to book value of $58
million
Reached important mortgage
repurchase settlement
Repurchase reserve expense
declined to $50 million
Excluding the 4Q strategic actions,
provision expense declined $512 million
from 4Q 09
Originations were $13.3 billion in the first
quarter driven by lower market volumes
and seasonal patterns
Key Financials
($ millions)
1Q 10
4Q 09
1Q 09
Net financing revenue
160
$
62
$
122
$
Total other revenue
424
(24)
68
Total net revenue
584
38
190
Provision for loan losses
(1)
6
2,874
607
Noninterest expense
403
1,184
578
Pre-tax income (loss) from continuing ops
175
$
(4,020)
$
(995)
$
Total assets
(2)
44,536
$
38,894
$
45,163
$
Key Statistics
($ billions)
1Q 10
4Q 09
1Q 09
Mortgage Loan Production
Prime Conforming
9.5
$
10.7
$
8.5
$
Prime Non-Conforming
0.4
0.3
0.0
Government
3.1
6.7
4.7
Other
0.3
0.5
0.2
Total
13.3
$
18.1
$
13.4
$
Primary Servicing - Period End
379
$
376
$
386
$
($ millions)
1Q 10
4Q 09
1Q 09
Servicing fees
326
$
314
$
341
$
Servicing asset valuation, net of hedge
(133)
(417)
(352)
Net servicing revenue
193
$
(103)
$
(11)
$
Repurchase reserve expense
50
$
573
$
176
$
Repurchase reserve balance
890
$
1,263
$
324
$
(1) 4Q 09 provision included $2,356 million from strategic actions
(2) Total assets increased by approx $12 billion as of 1/1/10 due to implementation of FAS 166/167
15
ResCap, LLC: Update
ResCap, LLC made further progress towards addressing legacy asset risk and standalone liquidity needs
Agreement to sell European mortgage operations
Select whole-loan sales
Restructured servicer advance funding facility and sold $508 million of term ABS notes
GMAC engaged two advisors to assist in exploring further strategic alternatives
$10.2 billion of
assets related to
1/1/10 adoption of
FAS 166/167, net
of adjustments
12/31/2009
Quarterly
Activity
3/31/2010
Pending
European
Actions
Pro-Forma
Cash and Cash Equivalents
0.8
$
(0.0)
$
0.7
$
0.7
$
Accounts Receivable (Servicing Advances, etc)
2.5
0.2
2.8
2.8
Securitized Assets
(1)
5.8
10.0
15.8
(10.8)
5.0
Derivatives and Derivative Collateral
1.6
(0.1)
1.5
1.5
Restricted Cash
0.7
0.0
0.7
0.7
Other Assets
0.6
(0.3)
0.3
0.3
Cash, accounting and other less value sensitive assets
12.0
$
9.8
$
21.8
$
(10.8)
$
11.0
$
Mortgage Servicing Rights
2.5
(0.1)
2.4
2.4
Real Estate Owned
0.2
(0.0)
0.1
0.1
AFS and Trading Securities
0.2
(0.1)
0.1
0.1
Certain International Lending Receivables and Securities
0.2
(0.0)
0.2
0.2
Certain Domestic Lending Receivables and Other Assets
(2)
0.2
(0.1)
0.1
0.1
Assets of International Operations Held-for-Sale
0.5
(0.0)
0.5
(0.5)
-
Mortgage Loans Held-for-Sale
(3)
3.5
(0.3)
3.2
(0.4)
2.8
Assets carried at fair or net realizable value
7.2
$
(0.6)
$
6.6
$
(0.9)
$
5.7
$
Total ResCap, LLC Assets
19.3
$
9.2
$
28.4
$
(11.7)
$
16.7
$
ResCap, LLC Balance Sheet Analysis
(1) Includes (a) $1.7 billion of securitized assets classified as HFI and carried at a significant discount accounted for under the Fair Value Option, (b) $2.0 billion of HFS assets related to off-
balance sheet securitizations where ResCap has the option, but not the obligation, to repurchase certain loans, (c) $1.8 billion of securitized international assets that have been classified under
FAS 144 to assets of operations held for sale (d) $10.2B of assets related to 1/1/10 adoption of SFAS 166 / 167, net of adjustments
(3) Includes domestic loans and $0.4B of performing UK HFS loans
(2) Includes construction loans, model home loans and other assets
16
Mortgage Operations: Credit Allowance Coverage Ratios
Consumer coverage relatively flat from the prior quarter as portfolio continues to perform in line with
expectations
Significant decrease from prior year primarily related to strategic actions taken during 4Q 09
Commercial coverage down relative to prior periods as certain distressed legacy assets have been
resolved or charged-off
Remaining commercial loans consist primarily of correspondent warehouse lines
Held For Investment Portfolio
Consumer
($ millions)
1Q 10
4Q 09
1Q 09
4Q 09
1Q 09
Allowance balance
635
$
640
$
1,462
$
(5)
$
(827)
$
Total consumer loans
11,243
11,220
22,464
23
(11,221)
Coverage ratio
5.6%
5.7%
6.5%
-0.1%
-0.9%
Non-performing loans
444
$
430
$
4,618
$
14
$
(4,174)
$
Allowance as a % of NPLs
143.0%
148.9%
31.6%
-5.8%
111.3%
Commercial
1Q 10
4Q 09
1Q 09
4Q 09
1Q 09
Allowance balance
82
$
137
$
587
$
(55)
$
(505)
$
Total commercial loans
1,542
1,951
4,058
(409)
(2,516)
Coverage ratio
5.3%
7.0%
14.5%
-1.7%
-9.2%
Non-performing loans
237
$
269
$
1,160
$
(32)
$
(923)
$
Allowance as a % of NPLs
34.5%
50.7%
50.6%
-16.3%
-16.1%
(1) Significant amount of riskier loans moved from HFI to HFS
Note: Coverage ratio defined as allowance for loan losses as a percentage of end of period assets (excluding loans held at fair value)
Increase/(Decrease) vs.
Increase/(Decrease) vs.
(1)
17
Corporate and Other
Results continue to be impacted by
amortization of OID from bond exchanges
OID amortization impacted by
acceleration of expense resulting
from certain liability management
transactions in the first quarter
OID amortization expense will
moderate significantly after 2011
Provision declined due to stable
performance of the Resort Finance
portfolio
Key Financials
($ millions)
1Q 10
4Q 09
1Q 09
Net financing loss (ex. OID)
(1)
(256)
$
(245)
$
(450)
$
Total other revenue
(2)
(56)
138
352
Total net revenue
(312)
(107)
(98)
Provision for loan losses
15
123
-
Noninterest expense
129
213
50
Core pre-tax income (loss)
(456)
$
(443)
$
(148)
$
OID Amortization
(397)
(315)
(257)
Pre-tax income (loss) from continuing ops
(853)
$
(758)
$
(405)
$
Total Assets
31,644
$
32,714
$
28,244
$
(1) OID amortization expense of $296 million in 1Q 10
(2) Excludes $101 million of accelerated OID amortization in 1Q 10 from certain liability
management transactions
OID Amortization Schedule
($ billions)
As of 3/31/2010
$0.9
$1.0
$0.3
$0.2
$0.1
Avg = $0.1 / yr
$0.3
$-
$0.2
$0.4
$0.6
$0.8
$1.0
$1.2
$1.4
Remaining
2010
2011
2012
2013
2014
2015
2016 and
thereafter
18
Discontinued Operations
GMAC continues to streamline operations and divest non-core operations
Closed sale of U.S. property and casualty insurance business, North American factoring business and
full service leasing businesses in Australia and Poland
Reached agreement to sell the Continental European mortgage business
No new operations classified as discontinued in 1Q 10
19
Impact of Discontinued Operations, net of tax
($ millions)
1Q 10
4Q 09
International Automotive Finance
36
$
(174)
$
Insurance
(1)
(191)
Global Automotive Services
35
(365)
Mortgage Operations
(6)
(704)
Corporate and Other
4
(18)
Consolidated net income (loss)
33
$
(1,087)
$
Retail Auto
Insurance
Mortgage
Corporate and Other
Businesses classified as
Discontinued Operations as
of 3/31/2010
Argentina
Ecuador
Poland
Belgium
France
United Kingdom
Australia
(1)
Poland
(1)
U.K. P&C
Continental Europe
(2)
Commercial Services
(1)
(North American Factoring)
(1) Sale closed in April
(2) Definitive agreement signed in April. Sale expected to close summer 2010
Full Service Leasing
19
Liquidity
GMAC’s current funding strategy is designed to support stable capital and liquidity during all economic cycles
1)Expanded use of cost efficient funding at Ally Bank results in less reliance on wholesale funding
Over 60% of new auto originations were funded at the bank level
Net deposits grew by approximately $900 million
Recently added $7 billion secured credit facility
Repurchase agreements
2) Consistent and diversified access to the capital markets
Issued over $5 billion of unsecured debt year-to-date
Issued over $6 billion of auto related ABS globally
Issued $508 million of term ABS notes collateralized by ResCap servicer advances
Available Liquidity to Support Asset Generation
(1)
($ billions)
Parent
(2)
Ally Bank
Parent
(2)
Ally Bank
Cash and Cash Equivalents
(3)
9.1
$
4.3
$
9.1
$
4.8
$
Unencumbered Securities
0.3
5.6
0.6
4.2
Current Secured Committed Unused Capacity
3.9
1.0
3.0
0.0
Current Unsecured Committed Unused Capacity
0.1
0.0
0.1
0.0
Total Current Available Liquidity
13.4
10.9
12.8
9.0
Potential Secured Committed Unused Capacity
(4)
3.8
8.1
5.5
2.9
Whole Loan Forward Flow Agreements
4.5
0.0
9.4
0.0
Total Available Liquidity
21.6
$
19.0
$
27.7
$
11.8
$
(1) Includes Pro-Forma available liquidity view inclusive of $7B Ally facility settled in early April
(2) Parent defined as GMAC Consolidated less Ally, ResMor, ResCap & Insurance
(3) Includes overnight funds placed at Ally Bank at quarter end
(4) Includes Shared Capacity of $1.1B (3/31) and $2.9B (12/31). Capacity is subject to availability of incremental collateral
3/31/2010
12/31/2009
20
Ally and ResMor total deposits increased to
$32.0 billion (excluding certain intercompany
deposits) as of 3/31/2010
Retail deposits at Ally Bank expanded to 60%
of total deposits in 1Q 10 from 37% in 2008
Focus on building stable deposit base driven by
compelling brand and strong value proposition
Ally’s CD retention rate at 69% is well above
the industry average
Voted “Best Savings Account”
by Money
Magazine
Deposits
Ally Bank - 1Q 2010 External Funding Sources
TAF
2%
Securitization
12%
Brokered CDs
26%
Retail Deposits
47%
FHLB
Borrowings
13%
GMAC Inc. - Bank Deposit Levels
(1)
($ billions)
(1) Excludes certain GMAC deposits
$20.0
$23.1
$26.3
$28.8
$31.1
$32.0
$0.0
$5.0
$10.0
$15.0
$20.0
$25.0
$30.0
$35.0
$40.0
4Q 08
1Q 09
2Q 09
3Q 09
4Q 09
1Q10
Ally Bank Retail
Ally Bank Brokered
Ally Bank Other
ResMor
Retail CD Balance Retention
(1)
($ billions)
(1) Retention includes balances retained in any Ally Bank product
69%
63%
65%
69%
73%
$0.0
$0.4
$0.8
$1.2
$1.6
$2.0
$2.4
$2.8
$3.2
1Q 09
2Q 09
3Q 09
4Q 09
1Q 10
25%
30%
35%
40%
45%
50%
55%
60%
65%
70%
75%
CD Balances Up for Renewal
CD Balances Retained
Retention Rate
21
Capital Ratios
See slide 32 for further details on capital numbers stated above
Implementation of FAS 166/167 resulted in an increase of GAAP assets of approximately $7 billion and
$12 billion in auto and mortgage assets, respectively, as of January 1, 2010
GMAC has elected the regulatory agency deferral option, therefore phase-in of regulatory capital
impact of implementation of FAS 166/167 will begin in
3Q & 4Q 2010
FAS 166/167 expected to decrease capital ratios by 0-15 bps by the end of 2010 reflective of expected
disposition of international mortgage assets in summer 2010
22
($ billions)
3/31/2010
Preliminary
12/31/2009
Tier 1 Capital
22.1
$
22.4
$
Tier 1 Common Capital
7.4
$
7.7
$
Total Risk-Based Capital
24.4
$
24.6
$
Tangible Common Equity
7.8
$
8.1
$
Tangible Assets
178.9
$
171.8
$
Risk-Weighted Assets
148.4
$
158.3
$
Tier 1 Capital Ratio
14.9%
14.1%
Tier 1 Common Capital Ratio
5.0%
4.8%
Total Risk-Based Capital Ratio
16.4%
15.6%
Tangible Common Equity / Tangible Assets
4.4%
4.7%
Tangible Common Equity / Risk-Weighted Assets
5.3%
5.1%
22
Summary
All four operating segments were profitable
Improving credit trends
Expanded auto finance franchise
Re-entered unsecured market
Reached several important agreements to further contain legacy mortgage risk
Significant Progress in First Quarter
Continued Focus on Strategic Objectives
Become the premier global auto finance provider for dealers and consumers
Improve our cost structure and efficiency
Demonstrate consistent and diversified access to capital markets
Fully transition to a bank holding company model
Improve our liquidity position by building stable deposit base at Ally Bank
Continue to de-risk our mortgage business and define a viable long-term strategy for our mortgage
origination and servicing business
23
Supplemental Charts
24
GMAC: Preliminary Consolidated Condensed Income Statement
Supplemental
($ millions)
1Q 10
4Q 09
1Q 09
4Q 09
1Q 09
Total financing revenue and other interest income
3,160
$
3,106
$
3,610
$
54
$
(450)
$
Interest expense
1,760
1,760
2,076
-
(316)
Depreciation expense on operating lease assets
656
741
1,057
(85)
(401)
Net financing revenue
744
605
477
139
267
Servicing fees
387
371
408
16
(21)
Servicing asset valuation and hedge activities, net
(133)
(417)
(352)
284
219
Insurance premiums and service revenue earned
468
477
495
(9)
(27)
Gain on mortgage and automotive loans, net
282
146
295
136
(13)
(Loss) gain on extinguishment of debt
(118)
(3)
644
(115)
(762)
Other gain (loss) on investments, net
140
33
(16)
107
156
Other income, net of losses
88
293
(211)
(205)
299
Total other revenue
1,114
900
1,263
214
(149)
Total net revenue
1,858
1,505
1,740
353
118
Provision for loan losses
145
3,432
795
(3,287)
(650)
Insurance losses and loss adjustment expenses
211
242
285
(31)
(74)
Other operating expenses
1,334
2,300
1,400
(966)
(66)
Total noninterest expense
1,545
2,542
1,685
(997)
(140)
Income (loss) from cont. ops before income tax expense (benefit)
168
(4,469)
(740)
4,637
908
Income tax expense (benefit) from continuing operations
39
(603)
(126)
642
165
Net income (loss) from continuing operations
129
(3,866)
(614)
3,995
743
Income (loss) from discontinued ops, net of tax
33
(1,087)
(61)
1,120
94
Net income (loss)
162
$
(4,953)
$
(675)
$
5,115
$
837
$
Increase/(Decrease) vs.
25
NAO: Condensed Income Statement
Supplemental
($ millions)
1Q 10
4Q 09
1Q 09
4Q 09
1Q 09
Total financing revenue and other interest income
2,095
$
2,064
$
2,400
$
31
$
(305)
$
Interest expense
575
534
572
41
3
Depreciation expense on operating lease assets
(1)
607
700
968
(93)
(361)
Net financing revenue
913
830
860
83
53
Servicing fees
60
55
67
5
(7)
Gain on automotive loans, net
113
83
105
30
8
Other income
30
93
138
(63)
(108)
Total other revenue
203
231
310
(28)
(107)
Total net revenue
1,116
1,061
1,170
55
(54)
Provision for loan losses
(2)
101
340
134
(239)
(33)
Noninterest expense
362
352
376
10
(14)
Income from cont. ops before income tax expense
653
369
660
284
(7)
Income tax expense from continuing operations
257
216
44
41
213
Net income from continuing operations
396
$
153
$
616
$
243
$
(220)
$
Notable Items - Pre-Tax
($ millions)
1Q 10
4Q 09
1Q 09
4Q 09
1Q 09
(1) Remarketing gain (loss)
185
$
191
$
35
$
(6)
$
150
$
(2) Nuvell provision
(38)
(262)
(106)
224
68
Increase/(Decrease) vs.
Increase/(Decrease) vs.
26
IO: Condensed Income Statement
Supplemental
($ millions)
1Q 10
4Q 09
1Q 09
4Q 09
1Q 09
Total financing revenue and other interest income
487
$
557
$
608
$
(70)
$
(121)
$
Interest expense
246
295
367
(49)
(121)
Depreciation expense on operating lease assets
49
40
89
9
(40)
Net financing revenue
192
222
152
(30)
40
Loss on automotive loans, net
(1)
(33)
(56)
-
23
(33)
Other income
92
101
76
(9)
16
Total other revenue
59
45
76
14
(17)
Total net revenue
251
267
228
(16)
23
Provision for loan losses
22
95
54
(73)
(32)
Noninterest expense
(2)
219
318
210
(99)
9
Income (loss) from cont. ops before income tax benefit
10
(146)
(36)
156
46
Income tax benefit from continuing operations
(11)
(53)
(6)
42
(5)
Net income (loss) from continuing operations
21
$
(93)
$
(30)
$
114
$
51
$
Notable Items - Pre-Tax
($ millions)
1Q 10
4Q 09
1Q 09
4Q 09
1Q 09
(1) Movement from HFI to HFS
(34)
$
(55)
$
-
$
21
$
(34)
$
(2) Restructuring charges
(3)
(36)
-
33
(3)
Increase/(Decrease) vs.
Increase/(Decrease) vs.
27
Mortgage Operations: Condensed Income Statement
Supplemental
($ millions)
1Q 10
4Q 09
1Q 09
4Q 09
1Q 09
Total financing revenue and other interest income
503
$
464
$
551
$
39
$
(48)
$
Interest expense
343
402
429
(59)
(86)
Net financing revenue
160
62
122
98
38
Servicing fees
(1)
326
314
341
12
(15)
Servicing asset valuation & hedge activities, net
(1)
(133)
(417)
(352)
284
219
Gain on mortgage loans, net
(2)
202
111
193
91
9
Gain on extinguishment of debt
-
0
5
-
(5)
Other income, net of losses
(2)
29
(32)
(119)
61
148
Total other revenue (expense)
424
(24)
68
448
356
Total net revenue
584
38
190
546
394
Provision for loan losses
(2)
6
2,874
607
(2,868)
(601)
Noninterest expense
(2)(3)
403
1,184
578
(781)
(175)
Income (loss) from cont. ops before income tax expense (benefit)
175
(4,020)
(995)
4,195
1,170
Income tax expense (benefit) from continuing operations
9
197
(90)
(188)
99
Net income (loss) from continuing operations
166
$
(4,217)
$
(905)
$
4,383
$
1,071
$
Notable Items - Pre-Tax
($ millions)
1Q 10
4Q 09
1Q 09
4Q 09
1Q 09
(1) Net servicing
193
$
(103)
$
(11)
$
296
$
204
$
(2) Gain (loss) related to strategic mortgage actions
(a)
58
(2,582)
-
2,640
58
(3) Mortgage repurchase reserve expense
(50)
(573)
(176)
523
126
(a) Excludes $700 million of marks on assets classified as discontinued operations in 4Q 09
Increase/(Decrease) vs.
Increase/(Decrease) vs.
28
Corporate and Other: Condensed Income Statement
Supplemental
29
($ millions)
1Q 10
4Q 09
1Q 09
4Q 09
1Q 09
Net financing loss
(1)(4)
(552)
$
(560)
$
(707)
$
8
$
155
$
Gain (loss) on mortgage and automotive loans, net
-
8
(3)
(8)
3
(Loss) gain on extinguishment of debt
(2) (5)
(118)
(3)
639
(115)
(757)
Other income, net of losses
(6)
(39)
133
(284)
(172)
245
Total other revenue
(157)
138
352
(295)
(509)
Total net loss
(709)
(422)
(355)
(287)
(354)
Provision for loan losses
(3)
15
123
0
(108)
15
Noninterest expense
129
213
50
(84)
79
Loss from cont. ops before income tax benefit
(853)
(758)
(405)
(95)
(448)
Income tax benefit from cont. ops
(277)
(927)
(80)
650
(197)
Net (loss) income from continuing operations
(576)
$
169
$
(325)
$
(745)
$
(251)
$
Notable Items - Pre-Tax
($ millions)
1Q 10
4Q 09
1Q 09
4Q 09
1Q 09
(1) Amortization of bond exchange discount
(296)
$
(315)
$
(257)
$
19
$
(39)
$
(2) Accelerated OID from 1Q 10 debt exchange
(101)
-
-
(101)
(101)
(3) Commercial Finance provision
(15)
(123)
-
108
(15)
(4) Net impact of treasury ALM activities
(267)
(243)
(505)
(24)
238
(5) 1Q 09 debt exchange
-
-
634
-
(634)
(6) Resort Finance MTM
-
-
(87)
-
87
Increase/(Decrease) vs.
Increase/(Decrease) vs.
29
GMAC: Preliminary Consolidated Condensed Balance Sheet
Supplemental
30
($ millions)
3/31/10
12/31/09
3/31/09
12/31/09
3/31/09
Cash and cash equivalents
14,670
$
14,788
$
13,333
$
(118)
$
1,337
$
Trading securities
144
739
816
(595)
(672)
Investment securities
11,651
12,158
6,776
(507)
4,875
Loans held-for-sale
13,998
20,625
10,357
(6,627)
3,641
Finance receivables and loans, net of unearned Income
89,040
77,701
97,171
11,339
(8,131)
Allowance for loan losses
(2,480)
(2,445)
(3,645)
(35)
1,165
Total finance receivables and loans, net
86,560
75,256
93,526
11,304
(6,966)
Investment in operating leases, net
14,003
15,995
23,527
(1,992)
(9,524)
Other assets
25,162
26,161
$31,217
(999)
(6,055)
Assets of operations held-for-sale
13,239
6,584
-
6,655
13,239
Total assets
179,427
$
172,306
$
179,552
$
7,121
$
(125)
$
-
-
Noninterest bearing
1,927
1,755
1,935
172
(8)
Interest bearing
30,933
30,001
21,235
932
9,698
Total deposit liabilities
32,860
31,756
23,170
1,104
9,690
Short-term borrowings
7,609
10,292
8,027
(2,683)
(418)
Long-term debt
90,276
88,021
105,397
2,255
(15,121)
Total debt
97,885
98,313
113,424
(428)
(15,539)
Other liabilities
15,925
16,500
20,937
(575)
(5,012)
Liabilities of operations held-for-sale
12,209
4,898
-
7,311
12,209
Total liabilities
158,879
151,467
157,531
7,412
1,348
-
-
Equity
20,548
20,839
22,021
(291)
(1,473)
Total liabilities and equity
179,427
$
172,306
$
179,552
$
7,121
$
(125)
$
Increase/(Decrease) vs.
30
ResCap, LLC: Key Financial Information
ResCap, LLC met its covenants with tangible net worth of $426 million at the end of the first quarter
(1) For the purpose of ResCap’s tangible net worth covenants, consolidated tangible net worth is defined as
the company’s consolidated equity, excluding intangible assets and any equity in Ally
Bank to the extent
included in ResCap’s consolidated balance sheet
Supplemental
($ millions)
1Q 10
4Q 09
Net income (loss)
110
$
(3,054)
$
Net income (loss) excluding gain on debt extinguishment
110
$
(3,072)
$
($ millions)
3/31/2010
12/31/2009
Cash & cash equivalents
725
$
765
$
Mortgage loans held-for-sale
5,131
5,310
Mortgage loans held-for-investment, net
3,008
1,835
Mortgage servicing rights
2,413
2,540
Other assets
17,166
8,849
Total assets
28,442
$
19,299
$
Total liabilities
28,017
$
19,024
$
Tangible net worth
(1)
426
$
275
$
31
Capital Measures
Supplemental
Capital
3/31/2010
Preliminary
12/31/2009
Shareholders’ Equity
20.5
$
20.8
$
Less:
Goodwill and certain other intangibles
(0.5)
(0.5)
Unrealized (gain) loss and other adjustments
(0.5)
(0.4)
Trust Preferred Securities
2.5
2.5
Total Tier 1 Capital
22.1
22.4
Total Tier 1 Capital
22.1
22.4
Less:
Senior preferred
(10.9)
(10.9)
Trust Preferred Securities
(2.5)
(2.5)
Preferred interest
(1.3)
(1.3)
Tier 1 Common
7.4
7.7
Total Tier 1 Capital
22.1
22.4
Add:
Qualifying subordinated debt and redeemable preferred stock
0.2
0.2
Allowance for loan and lease losses includible in Tier 2 Capital
2.1
2.0
Total Risk-Based Capital
24.4
24.6
Total Equity
20.5
20.8
Less:
Preferred equity
(12.2)
(12.2)
Goodwill and intangible assets
(0.5)
(0.5)
Tangible Common Equity
7.8
8.1
Total Assets
179.4
172.3
Less:
Goodwill and intangible assets
(0.5)
(0.5)
Tangible Assets
178.9
$
171.8
$
Note: Numbers may not foot due to rounding
($ billions)
32
GMAC Unsecured Long-Term Debt Maturity Profile
Supplemental
Note: Scheduled maturities of ResCap unsecured long-term debt are as follows: $1,284 million in 2010; $209 million in 2011;
$357 million in 2012; $527 million in 2013; $96 million in 2014; and
$112 million in 2015 and thereafter. These maturities
exclude ResCap debt held by GMAC. As of 3/31/2010
GMAC Consolidated Unsecured Long-Term Debt Maturity Profile
($ billions)
$4
$9
$12
$2
$2
$20
$-
$5
$10
$15
$20
$25
$30
Remaining 2010
2011
2012
2013
2014
2015 and
thereafter
33
Ownership Structure
Supplemental
Common Ownership as of 3/31/2010
US Treasury
56.3%
Cerberus
14.9%
3rd Party
Investors
12.2%
GM
Trust
9.9%
GM
6.7%
($ millions)
Series
Owner
Liquidation
Preference
Book Value
Trust Preferred Securities
(1)
U.S. Treasury
$2,667.0
$2,540.0
Series F-2 Mandatory Convertible Preferred
(1)
U.S. Treasury
$11,437.5
$10,892.9
Series G Perpetual Preferred
Investors
$2,576.6
$234.3
Series A Perpetual Preferred
GM Company
$1,021.8
$1,052.4
(1) Includes exercised warrants
Other Tier 1 Capital as of 3/31/2010
34