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| EX-99.1 - Ally Financial Inc. | v192171_ex99-1.htm |
Ally Financial Inc.
2Q10 Earnings Review
August 3, 2010
Contact Ally Investor Relations at (866) 710-4623 or investor.relations@ally.com
Forward-Looking Statements and Additional Information
The following should be read in conjunction with the financial statements, notes and other information contained in the Company’s 2009 Annual
Report on Form 10-K, Quarterly Reports on Form 10-Q, and Current
Reports on Form 8-K.
This information is preliminary and based on company data available at the time of the presentation
In the presentation that follows and related comments by Ally Financial Inc. (“Ally”) management, the use of the words “expect,” “anticipate,”
“estimate,” “forecast,”
“initiative,” “objective,” “plan,” “goal,” “project,” “outlook,” “priorities,” “target,” “intend,” “evaluate,” “pursue,” “seek,” “may,”
“would,” “could,” “should,” “believe,” “potential,” “continue,” or 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 Ally’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 Ally, each of which may be revised or supplemented in subsequent reports on SEC Forms 10-Q and 8-
K. Such factors include, among others, the following: our inability to 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; uncertainty of Ally's ability to enter into transactions or execute strategic
alternatives to realize the value of its Residential
Capital, LLC (“ResCap”) operations; 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 Ally and
Chrysler; securing low cost funding for Ally and ResCap and maintaining the mutually beneficial
relationship between Ally and GM, and Ally 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 Ally’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, Ally, 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
(including as a result of the recently enacted financial regulatory reform bill). Investors are cautioned not to place undue reliance on
forward-
looking statements. Ally 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 Ally’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 Ally’s purchase,
acquisition or direct origination of various “loan” products.
2
Second Quarter Highlights
Ally earned core pre-tax income(1) of $738 million and net income of $565 million in the
second quarter
Premier Auto
Finance
Provider
Capital Markets
Mortgage Risk
Cost Structure
Deposits
Bank Holding
Company
Strong auto franchise is the #1 provider of new car financing in the U.S.(2)
Significant growth in consumer auto originations, increasing over 30% quarter-over-quarter
Continued to increase penetration of GM and Chrysler retail originations with less than half
due to subvented business
Completed over $25 billion of secured and unsecured funding transactions year-to-date
Continued liquidation of legacy assets at gains; International sale to Fortress imminent
ResCap, LLC was profitable and required no additional capital or liquidity support in 2Q
Strategic review in progress
Expense reduction efforts on track, with quarterly controllable expenses down $124
million year-over-year and over $100 million ahead of plan
Bank deposits grew $2.3 billion with strong CD retention rates
Cost of funds has declined over 100 bps since becoming a bank holding company
Continued progress implementing policies and procedures
(1) Core pre-tax income is a non-GAAP financial measure. Please refer to slide 9 for further details
(2) Source: AutoCount
3
Auto Franchise Momentum
Ally will continue to leverage competitive advantages to evolve as a leading market driven competitor
Uniquely positioned with long-standing dealer relationships and over 90 years of industry experience
Leading provider across a full spectrum of products for dealers and their customers
Robust infrastructure integrated with dealers and OEMs
Focus on competitive rates and high quality service provided to dealers and their customers
Bank holding company structure provides added stability and cost-efficient funding
Vehicle
Service
Contracts
Full Service Platform
Finance Products
Insurance Products
Retail
Loans
Retail
Leases
Floorplan
Financing
Working
Capital
Loans
Smart-
Auction
Floorplan
Insurance
GAP
Protection
U.S. Consumer Auto Originations and Manufacturer Penetration
($ billions)
$0
$1
$2
$3
$4
$5
$6
$7
$8
$9
$10
2Q 08
3Q 08
4Q 08
1Q 09
2Q 09
3Q 09
4Q 09
1Q 10
2Q 10
0%
10%
20%
30%
40%
50%
60%
U.S. Consumer Originations
GM Penetration
Chrysler Penetration
4
-39%
22.5%
14.4%
13.8%
- Next 5 Largest Competitors
-44%
7.8%
4.8%
4.4%
- Next Largest Competitor
% of GM/Chrysler Consumer Sales
Financed by:
124%
17.0%
27.7%
38.1%
% of GM/Chrysler Consumer Sales
Financed by Ally
107%
189,767
314,541
392,484
# of New GM/Chrysler Vehicles Financed
for Consumers by Ally
42%
59%
81%
84%
% of GM/Chrysler Sales Through Dealers
Financed (Wholesale Penetration)
4%
504,441
485,983
525,307
Outstanding # of New Vehicles Financed
for Dealers by Ally (Period End)
0.4%
5,043
5,411
5,061
# of Dealers Financed by Ally
(Floorplan) (1)(2)
1H 2010
2H 2009
1H 2009
1H10 vs. 1H09
Growth (%)
(1) Total number of dealers financed by Ally calculated by taking average of the number of dealers financed at the end of each of the two quarters that comprise each respective period
(2) While total number of dealers declined from 2H09, Ally’s percentage of active dealers remains consistent
Source: Internal Ally data and AutoCount
Ally has Fulfilled its Mission of Supporting U.S. Auto Industry
5
Auto Finance Products
Given its broad market presence, Ally is a top
four player in the new car subprime space
Ally has placed more emphasis on the higher
end of the subprime spectrum
No
#1
13% of Ally’s U.S. originations have
a credit score of less than 660
Approximately 2% are less
than 620
Nonprime
#1
#1
#1
#1
#1
Position with
GM / Chrysler
Ally wins and retains a significant portion of GM
and Chrysler dealer floorplan based on long-
standing relationships, superior platform and
service quality
No
Ally provides U.S. floorplan
financing for approximately 84% of
GM dealer stock and 75% of
Chrysler dealer stock
Floorplan
Loans
Ally competes against all other auto finance
companies for this business
Used car market seen as growth opportunity
No
Currently a majority of Ally’s retail
auto originations
Non-
Incentivized
Retail Loans
Ally competes against all other insurance
protection providers
Chrysler vehicle service contracts seen as a
growth opportunity
No
#1 provider of vehicle service
contracts for GM
#1 provider for wholesale insurance
for GM and Chrysler
Insurance
Products
Ally continues to explore opportunities to
expand the leasing business in a prudent
manner
No
Ally has expanded its leasing
programs to comprise over 10% of
new U.S. originations
Retail Lease
GM can only offer incentivized retail loan
programs through third parties under certain
specified circumstances through 2010
GM can gradually introduce programs through
third parties(1) over the next three years
on a
non-exclusive side-by-side basis with Ally
Chrysler can offer a portion of incentivized retail
to third parties
Yes
41% of Ally’s new retail auto loans
originated
Incentivized
Retail Loans
Comment
Exclusive
Rights?
Metric
Product
(1) Subject to certain requirements
6
General Motors Relationship
General Motors and Ally maintain an important, mutually beneficial relationship
Ally and GM work together to develop attractive subvention programs for retail products
Ally remains committed to assisting GM in its mission to sell vehicles
Ally is the #1 provider for all retail and wholesale products for GM dealers and their customers
Twice the retail volume of next five competitors combined
Ally’s infrastructure and experience in floorplan lending provide significant competitive advantages in serving dealers:
Long-standing dealer relationships maintained throughout the market downturn as others exited
Ability to finance vehicles in-transit straight from the factory
VIN-based tracking to allow for constant portfolio monitoring and management
Well established risk management infrastructure and procedures
Working capital, floorplan insurance and other dealer financing solutions
Stated focus of AmeriCredit acquisition is subprime and lease products
Subprime: Ally and AmeriCredit tend to focus on different segments of the subprime market
Leasing: Ally balances prudent risk management with providing attractive value proposition for lease-oriented
consumers
2Q U.S. lease originations increased to $0.8 billion from $0.2 billion in 4Q09
Certain lease programs may be more suitable in a captive environment
Ally is uniquely positioned to serve GM, its dealers and customers
Combination of a national, captive-like infrastructure and experience, along with stability and cost of funds advantage
of bank funding model over captive model
Bank holding company with #1 strategic objective of serving the auto industry
7
Leasing Dynamics
Ally continues to be the #1 provider of leasing to GM and Chrysler
Lease payments are primarily driven by residual value expectations
Residual value expectations are set by third party lease guides, such as ALG
Monthly payments can be managed through contractual residual values and OEM subvention
Based on residual value expectations, Ally has limited ability to influence the customer lease payment
Finance company margins do not allow for taking excessive residual risk, which is more appropriate for an OEM
In the case of the Malibu in the example below, if the finance company were to assume a 5% higher or lower
residual than ALG, the payment would only increase/decrease by $13 per month, which hardly addresses
the
fundamental competitiveness gap
* Monthly lease payments calculated by Ally using the following assumptions:
Mid size car segment with $24,000 MSRP assumed in calculating all payment scenarios
0.50% OEM incentivized rate and no OEM incentive cash or residual support
ALG variance of 8
percentage points leads
to a payment difference
of $53 per month
Make
Model
Expected 36-mo
Residual % (ALG)
Estimated Monthly
Payment
Chevrolet
Malibu
49
$348
Honda
Accord
57
$295
Ford
Fusion
52
$328
Toyota
Camry
51
$334
Monthly Lease Payment Example*
8
Second Quarter 2010 Results
Key Statistics
($ millions)
2Q 10
1Q 10
2Q 09
1Q 10
2Q 09
Total net revenue (ex. OID)
2,392
$
2,251
$
1,535
$
141
$
857
$
Provision for loan losses
220
146
1,117
74
(897)
Controllable expenses
(1)
862
933
986
(71)
(124)
Other noninterest expenses
572
594
740
(22)
(168)
Total noninterest expense
1,434
1,527
1,726
(93)
(292)
Core pre-tax income (loss)
(2)
738
$
578
$
(1,308)
$
160
$
2,046
$
OID amortization expense
292
397
275
(104)
17
Income tax expense
33
36
1,096
(3)
(1,063)
Income (loss) from discontinued operations
152
17
(1,224)
135
1,376
Net income (loss)
565
$
162
$
(3,903)
$
403
$
4,468
$
Total assets
176,802
$
179,427
$
181,248
$
(2,625)
$
(4,446)
$
Allowance balance
2,377
$
2,480
$
3,301
$
(103)
$
(924)
$
Net interest margin
(3)
2.8%
3.0%
1.7%
Tier 1 capital ratio
15.3%
14.9%
13.6%
Total risk-based capital ratio
16.8%
16.4%
15.1%
(1) Includes employee related costs, consulting and legal fees, marketing, information technology, facility, portfolio servicing, restructuring expenses and FDIC fees
(2) Core pre-tax income is defined as income from continuing operations before taxes and bond exchange original issue discount ("OID") amortization expense
(3) Excludes OID amortization expense. The impact of historical financial statement restatements for discontinued operations is not reflected in prior period amounts
Increase/(Decrease) vs.
9
Results by Segment
All four operating segments were profitable for the second straight quarter
Global Automotive Services: Robust growth in retail originations and continued improvement in credit trends
Mortgage Operations: Strong margins and sales of legacy assets combined with favorable servicing revenue
(1) Ally Bank and ResCap, LLC legal entities were also profitable in 2Q
(2) Corporate and Other as presented includes Commercial Finance Group (“CFG”), certain equity investments and net impact from treasury asset liability
management
(“ALM”) activities
See slide 23 or a listing of businesses classified as discontinued operations
Treasury ALM: $(256)
CFG/Other: $ (79)
($ millions)
2Q 10
1Q 10
2Q 09
1Q 10
2Q 09
North American Automotive Finance
630
$
653
$
451
$
(23)
$
179
$
International Automotive Finance
105
42
33
63
72
Insurance
108
183
99
(75)
9
Global Automotive Services
843
878
583
(35)
260
Mortgage Operations
230
156
(1,335)
74
1,565
Corporate and Other (ex. OID)
(1)
(335)
(456)
(556)
121
221
Core pre-tax income (loss)
738
$
578
$
(1,308)
$
160
$
2,046
$
OID amortization expense
292
397
275
(104)
17
Income tax expense
33
36
1,096
(3)
(1,063)
Income (loss) from discontinued operations
(2)
152
17
(1,224)
135
1,376
Net income (loss)
565
$
162
$
(3,903)
$
403
$
4,468
$
Increase/(Decrease) vs.
10
Outlook
Ally expects to sustain positive core income going forward
Certain positive factors currently contributing to earnings may moderate over the coming quarters
Auto forward flow gain on sales ($66mm in 2Q; $113mm in 1Q)
Lease portfolio remarketing gains due to all-time high used car prices ($205mm in 2Q; $185mm
in 1Q)
Legacy mortgage loan sale gains ($73mm in 2Q; $58mm in 1Q)
Insurance investment portfolio gains ($63mm in 2Q; $110mm in 1Q)
Over the long term, Ally expects to improve profitability from near term run rate
Cost of funds advantage as deposits grow
Repositioning balance sheet as auto franchise expands
Migration to more profitable asset mix
OID expense decline
11
Asset Quality Summary
Credit quality continued its favorable trend QoQ
Nonperforming loans decreased driven by continued resolution of legacy portfolios and improving dealer
performance, partially offset by seasoning within the consumer mortgage portfolio
Accruing delinquencies remained stable benefitting from mortgage seasonality with net charge-offs down slightly
Allowance coverage remains strong relative to net charge-offs and NPLs
QoQ decline in net charge-offs due to improved auto severity and strong consumer recoveries
4Q09 driven by one-time mortgage charge-offs resulting from legacy mortgage asset transfers from HFI to HFS
Loan balances grew QoQ driven by strong auto originations as both industry sales and Ally’s penetration rates improved
Ally Financial Consolidated
(1)
($ millions)
2Q 10
1Q 10
4Q 09
3Q 09
2Q 09
Ending Loan Balance
90,371
$
86,468
$
76,310
$
86,284
$
88,748
$
30+ Accruing DPD
1,380
1,366
1,329
1,785
1,938
30+ Accruing DPD %
1.5%
1.6%
1.7%
2.1%
2.2%
Non-Performing Loans (NPLs)
2,294
2,443
2,699
5,953
5,672
Net Charge-Offs (NCOs)
307
316
3,866
1,034
1,620
Net Charge-Off Rate
(2)
1.4%
1.5%
18.2%
4.8%
7.0%
Provision Expense
220
146
3,069
680
1,117
Allowance Balance (ALLL)
2,377
2,480
2,445
2,974
3,301
ALLL as % of Loans
(3)
2.6%
2.9%
3.2%
3.4%
3.7%
ALLL as % of NPLs
(3)
103.6%
101.5%
90.6%
50.0%
58.2%
ALLL as % of NCOs
(3)
193.3%
196.1%
15.8%
71.9%
50.9%
(1) Loans within this table are classified as held-for-investment recorded at historical cost as these loans are included in our allowance for loan losses
(2) Net charge-off ratios are calculated as annualized net charge-offs divided by average outstanding finance receivables and loans excluding
loans measured at fair value, conditional repurchase loans and loans held-for-sale
(3) ALLL coverage ratios are based on the allowance for loan losses related to loans held-for-investment excluding those loans held at fair
value as a percentage of the unpaid principal balance, net of premiums and discounts
12
Global Automotive Services
Global Automotive Services earned $843 million of pre-tax income from continuing operations in 2Q
Sixth consecutive profitable quarter from core auto business
North American Operations continued to drive results and International Operations performance improved
Robust growth in total retail consumer originations in the quarter
General improvement in the auto market
GM and Chrysler gained market share while Ally increased penetration of both
Growth in used vehicle originations
Leasing volume remained consistent
Brazil and China continued to grow originations
$303
$878
$411
$583
$843
Pre-Tax Income from Continuing Operations
Global Consumer Auto Originations
($ millions)
($ billions)
Note: Includes North American and International Operations
$272
$369
$653
$630
$(152)
$42
$99
$108
$183
$451
$105
$33
$31
$108
$86
$(400)
$(200)
$-
$200
$400
$600
$800
2Q 09
3Q 09
4Q 09
1Q 10
2Q 10
North American
International
Insurance
$3.3
$3.7
$6.1
$7.7
$8.2
$8.2
$10.7
$0
$2
$4
$6
$8
$10
$12
4Q 08
1Q 09
2Q 09
3Q 09
4Q 09
1Q 10
2Q 10
New - Retail
New - Leases
Used
13
North American Automotive Finance
North American segment reported pre-tax income of
$630 million
Impacted by shrinking lease portfolio
Lower gain on sale revenue
Strong growth in originations, with consumer
penetration of both GM and Chrysler sales continuing
to increase
U.S. used vehicle originations increased over
20% to $1.2 billion in the quarter
Used vehicle values remained strong in the quarter,
setting new records in both April and May(a)
Continue to experience strong remarketing gains
(a) As tracked by the Manheim Used Vehicle Value Index since 1995
Sales Proceeds as % of ALG
(1)
(U.S. Lease Scheduled Terminations)
(1) Estimated remarketing proceeds at time of lease origination
75%
80%
85%
90%
95%
100%
105%
110%
115%
120%
Jan
Feb
Mar
Apr
May
Jun
Jul
Aug
Sep
Oct
Nov
Dec
2007
2008
2009
2010
Key Financials
($ millions)
2Q 10
1Q 10
2Q 09
Net financing revenue
889
$
913
$
729
$
Total other revenue
186
203
138
Total net revenue
1,075
1,116
867
Provision for loan losses
106
101
15
Noninterest expense
339
362
401
Pre-tax income from continuing ops
630
$
653
$
451
$
Total assets
74,146
$
74,786
$
64,040
$
Key Statistics
2Q 10
1Q 10
2Q 09
U.S. Market
SAAR
(units in millions)
11.3
11.0
9.6
Industry Light Vehicle Sales
(units in millions)
3.1
2.5
2.6
GM Market Share
19.7%
18.8%
20.8%
Chrysler Market Share
9.6%
9.2%
8.6%
U.S. Ally Consumer Penetration
GM
34.4%
33.5%
30.6%
Chrysler
52.5%
42.1%
4.0%
U.S. Ally Wholesale Penetration
(1)
GM
84.4%
87.7%
83.0%
Chrysler
74.9%
76.4%
10.9%
U.S. Ally Consumer Originations
($ billions)
GM
4.9
$
4.1
$
4.1
$
Chrysler
2.7
1.6
0.3
Other
0.4
0.3
0.1
Total
8.0
$
6.0
$
4.4
$
U.S. Consumer Lease Originations
0.8
$
0.7
$
-
$
U.S. Incentivized Originations
(2)
48.5%
47.2%
69.5%
U.S. Incentivized GM Originations
41.7%
46.0%
72.7%
(1) Penetration rates based on end of period dealer stocks
(2) Percent of GM and Chrysler new loans and leases
14
International Operations earned $105 million of pre-
tax income compared to $42 million in 1Q
Non-interest expense down due to foreign
exchange and release of local tax reserves
Provision expense down due to improving
asset quality
Another strong quarter of originations in China and
Brazil
Brazil up 95% year-over-year
China up 83% year-over-year
Significant progress made in restructuring
International footprint as six additional businesses
were sold in 2Q
Sold full service leasing businesses in
Australia, Belgium, France and Poland
Sold auto finance businesses in Australia and
Poland
A total of nine businesses sold since
restructuring began
International Automotive Finance
Key Financials
($ millions)
2Q 10
1Q 10
2Q 09
Net financing revenue
173
$
183
$
188
$
Total other revenue
92
98
99
Total net revenue
265
281
287
Provision for loan losses
11
23
58
Noninterest expense
149
216
196
Pre-tax income from continuing ops
105
$
42
$
33
$
Total assets
16,659
$
19,435
$
25,670
$
Consumer Originations
($ millions)
2Q 10
1Q 10
2Q 09
Germany
258
$
259
$
460
$
Brazil
331
295
170
U.K.
209
120
131
Mexico
112
141
102
China
(1)
507
456
277
Other
224
216
232
Total Continuing International Operations
1,640
$
1,487
$
1,372
$
(1) Originations in China part of a joint-venture in which Ally owns a minority interest
15
Global Auto Finance – Consumer Credit Trends
Delinquency trends remained relatively stable in
the second quarter
Reflective of improved collection processes,
more stable economic conditions and
increased quality of newer vintages
Excluding the Nuvell portfolio, delinquencies
continued to fall in the quarter
Nuvell delinquencies elevated due to a
change in nonaccrual policy
Both the core auto portfolio and Nuvell subprime
portfolio experienced significant declines in losses
Results driven by used car market strength,
lower frequency of loss, post loss recoveries
and stronger performance on newer vintages
Continued focus on Nuvell portfolio with
losses declining over 500 bps in the quarter
Nuvell portfolio balance declined by
$400 million to $3.1 billion
Global Delinquencies - Managed
Retail Contract Amount
$ Amount of Accruing Contracts Greater than 30 Days Past Due (millions)
2.16%
2.22%
2.62%
2.80%
2.91%
2.66%
2.82%
3.27%
3.46%
3.48%
2.87%
2.93%
$0
$500
$1,000
$1,500
$2,000
$2,500
1Q 09
2Q 09
3Q 09
4Q 09
1Q 10
2Q 10
0.00%
0.50%
1.00%
1.50%
2.00%
2.50%
3.00%
3.50%
Nuvell Delinquent Contract $
Delinquent Contract $ (excluding Nuvell)
% of Retail Contract $ Outstanding
% of Retail Contract $ Outstanding (excluding Nuvell)
Global Annualized Credit Losses - Managed Retail Contracts
($ millions)
(1) 3Q and 4Q 2009 elevated due to change in charge-off policy
1.84%
1.80%
2.39%
2.48%
1.30%
0.77%
1.05%
2.04%
3.57%
3.29%
2.29%
2.43%
$0
$100
$200
$300
$400
$500
1Q 09
2Q 09
3Q 09
4Q 09
1Q 10
2Q 10
0.00%
0.50%
1.00%
1.50%
2.00%
2.50%
3.00%
3.50%
4.00%
Nuvell Credit Losses
Credit Losses (excluding Nuvell)
% of Avg. Managed Assets
% of Avg. Managed Assets (excluding Nuvell)
(1)
(1)
16
Global Auto Finance - Credit Allowance Coverage Ratios
North American consumer coverage ratio decreased in the second quarter
Decrease primarily driven by a change in the asset mix as a result of continued runoff of our liquidating
portfolios and improved credit quality trends
Coverage ratio remains strong relative to charge off levels
Commercial coverage decline driven by improved dealer credit quality
North American Auto
Consumer
($ millions)
2Q 10
1Q 10
2Q 09
1Q 10
2Q 09
Allowance balance
959
$
942
$
894
$
17
$
65
$
Total consumer loans
32,813
$
28,341
$
19,972
$
4,472
$
12,841
$
Coverage ratio
2.9%
3.3%
4.5%
-0.4%
-1.6%
Commercial
2Q 10
1Q 10
2Q 09
1Q 10
2Q 09
Allowance balance
142
$
161
$
164
$
(19)
$
(22)
$
Total commercial loans
28,382
$
28,546
$
20,111
$
(164)
$
8,271
$
Coverage ratio
0.5%
0.6%
0.8%
-0.1%
-0.3%
International Auto
Consumer
($ millions)
2Q 10
1Q 10
2Q 09
1Q 10
2Q 09
Allowance balance
161
$
178
$
279
$
(16)
$
(118)
$
Total consumer loans
8,900
$
9,773
$
13,951
$
(873)
$
(5,050)
$
Coverage ratio
1.8%
1.8%
2.0%
0.0%
-0.2%
Commercial
2Q 10
1Q 10
2Q 09
1Q 10
2Q 09
Allowance balance
37
$
44
$
55
$
(7)
$
(18)
$
Total commercial loans
4,164
$
4,035
$
5,804
$
129
$
(1,640)
$
Coverage ratio
0.9%
1.1%
1.0%
-0.2%
-0.1%
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.
17
Insurance
Segment streamlined to focus primarily on
dealer-centric products
Dealer Products and Services (“DP&S”):
Offers extended service contracts
and
dealer inventory insurance
International: Includes the ABA Seguros
(“ABA”) and CarCare Plan (“CCP”)
businesses
Written premiums up in DP&S driven by
increase in auto finance originations and
increased used vehicle service contracts
International written premiums elevated
in 1Q driven by fleet contracts in Latin
America
Continued favorable investment income but
with lower capital gains in 2Q
Loss ratio increased due to typical seasonal
weather related losses
Key Financials
($ millions)
2Q 10
1Q 10
2Q 09
Insurance premiums and service revenue earned
469
$
460
$
484
$
Investment income
86
141
88
Other income
18
20
13
Total insurance premiums and other income
573
621
585
Insurance losses and loss adjustment expenses
224
196
224
Acquisition and underwriting expenses
241
242
262
Total expense
465
438
486
Pre-tax income from continuing ops
108
$
183
$
99
$
Total assets
8,552
$
9,083
$
11,588
$
Key Statistics
2Q 10
1Q 10
2Q 09
Written Premiums
($ millions)
Dealer Products & Services
251
$
226
$
211
$
International
164
197
140
Total
415
$
423
$
351
$
Loss ratio
46%
41%
45%
Underwriting expense ratio
50%
50%
53%
Combined ratio
96%
91%
98%
18
Mortgage Operations
Mortgage Operations reported pre-tax income
from continuing operations of $230 million in the
second quarter
Second quarter production was $13.5 billion, up
slightly from 1Q
Gain on sale from originations was $134
million, up from $86 million in 1Q as
margins continue to remain favorable
Strong servicing revenue
Continued progress of liquidating legacy assets
at gains
Domestic non-core: UPB of $510 million
and cash proceeds of $308 million at a
gain to book value of $73 million
International: UPB of $723 million and
cash proceeds of $447 million at a gain to
book
value of $93 million(1)
Continue to closely monitor new
repurchase requests
Repurchase reserve expense of $97
million with claims largely in line with
expectations
(1) Revenue reported in discontinued operations
Key Financials
($ millions)
2Q 10
1Q 10
2Q 09
Net financing revenue
154
$
182
$
137
$
Total other revenue
531
369
(84)
Total net revenue
685
551
53
Provision for loan losses
92
7
871
Noninterest expense
363
388
517
Pre-tax income (loss) from continuing ops
230
$
156
$
(1,335)
$
Total assets
46,043
$
44,536
$
44,401
$
Key Statistics
($ billions)
2Q 10
1Q 10
2Q 09
Mortgage Loan Production
Prime Conforming
9.1
$
9.5
$
10.5
$
Prime Non-Conforming
0.5
0.4
0.3
Government
3.6
3.1
7.6
Other
0.3
0.3
0.3
Total
13.5
$
13.3
$
18.8
$
Primary Servicing - Period End
371
$
379
$
381
$
($ millions)
2Q 10
1Q 10
2Q 09
Servicing fees
328
$
324
$
334
$
Servicing asset valuation, net of hedge
(21)
(133)
(225)
Net servicing revenue
307
$
191
$
109
$
Repurchase reserve expense
97
$
49
$
237
$
Repurchase reserve balance
855
$
890
$
463
$
19
Mortgage Operations Asset Roll Forward
Continued streamlining to focus on the origination and servicing business with the resolution of legacy assets
3/31/2010
Quarterly
Activity
6/30/2010
Pending
European
Actions
Pro-Forma
ResCap, LLC Assets
Cash and Cash Equivalents
0.7
$
(0.1)
$
0.6
$
0.6
$
Accounts Receivable (Servicing Advances, etc)
2.8
(0.2)
2.6
2.6
Securitized Assets
(1)
16.3
(0.9)
15.5
(10.4)
5.1
Derivatives and Derivative Collateral
1.5
2.2
3.6
3.6
Restricted Cash and Other Assets
1.0
0.1
1.1
1.1
Cash, accounting and other less value sensitive assets
22.3
$
1.1
$
23.4
$
(10.4)
$
13.0
$
Mortgage Servicing Rights
2.4
(0.5)
2.0
2.0
Other Assets
(2)
0.6
(0.2)
0.4
0.4
Assets of International Operations Held-for-Sale
(0.0)
0.5
0.5
(0.5)
0.0
Mortgage Loans Held-for-Sale
3.2
(0.9)
2.3
2.3
Assets carried at fair or net realizable value
6.1
$
(1.0)
$
5.2
$
(0.5)
$
4.7
$
Total ResCap, LLC Assets
28.4
$
0.1
$
28.6
$
(10.8)
$
17.7
$
Ally Bank HFI - Prime Jumbo
1.2
$
0.4
$
1.7
$
1.7
$
Ally Bank HFI - Legacy Portfolio
(3)
8.5
(0.4)
8.2
8.2
Ally Bank HFS
3.3
0.8
4.2
4.2
Ally Bank Warehouse Lines
1.2
0.6
1.8
1.8
Ally Bank MSR
1.1
(0.1)
1.0
1.0
Other Non-ResCap Assets
(4)
0.7
0.0
0.7
-
0.7
Total Mortgage Operations Assets
44.5
$
1.5
$
46.0
$
(10.8)
$
35.2
$
(3) Loans originated prior to 1/1/2009
(4) Includes Ally Bank Cash, Accounts Receivables and Other Assets, as well as ResMor Trust and intercompany eliminations
Mortgage Operations Balance Sheet Analysis
(1) Includes (a) $1.8 billion of securitized assets classified as HFI and carried at a significant discount accounted for under the Fair Value Option, (b) $2.1 billion of HFS assets
related to off-balance sheet securitizations where ResCap has the option, but not the obligation to repurchase loans
(2) Includes REO, AFS and trading securities, warehouse loans, model homes and other assets
20
Mortgage Operations - Credit Allowance Coverage Ratios
Allowance balance and HFI portfolio down from prior year driven by strategic actions taken in 2009
Consumer coverage up slightly as HFI portfolio seasons and performs in line with expectations
Commercial coverage down relative to prior periods as certain distressed legacy assets have been resolved or
charged-off
Remaining commercial loans consist primarily of high quality correspondent warehouse lines at Ally Bank
Held For Investment Portfolio
Consumer
($ millions)
2Q 10
1Q 10
2Q 09
1Q 10
2Q 09
Allowance balance
659
$
635
$
1,133
$
24
$
(474)
$
Total consumer loans
11,286
11,243
20,917
43
(9,631)
Coverage ratio
5.8%
5.6%
5.4%
0.2%
0.4%
Non-performing loans
624
$
446
$
2,052
$
178
$
(1,428)
$
Allowance as a % of NPLs
105.6%
142.3%
55.2%
-36.7%
50.4%
Commercial
2Q 10
1Q 10
2Q 09
1Q 10
2Q 09
Allowance balance
70
$
82
$
536
$
(12)
$
(466)
$
Total commercial loans
2,002
1,542
3,412
460
(1,410)
Coverage ratio
3.5%
5.3%
15.7%
-1.8%
-12.2%
Non-performing loans
167
$
237
$
1,047
$
(70)
$
(880)
$
Allowance as a % of NPLs
41.9%
34.5%
51.2%
7.5%
-9.3%
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.
21
Corporate and Other
Results in the segment reflect amortization of
OID from bond exchanges
Approximately $600 million of OID
amortization expense remains for 2010,
with expense moderating significantly after
2011
Favorability from prior quarter driven by
Mark-to-market on deferred purchase price
asset related to auto forward flow
commitments
Lower restructuring charges
Hedge favorability
Additional OID amortization expense in 1Q
Key Financials
($ millions)
2Q 10
1Q 10
2Q 09
Net financing loss (ex. OID)
(1)
(237)
$
(256)
$
(439)
$
Total other revenue
(2)
36
(56)
188
Total net revenue
(201)
(312)
(251)
Provision for loan losses
11
15
173
Noninterest expense
123
129
132
Core pre-tax loss
(335)
$
(456)
$
(556)
$
OID Amortization
(292)
(397)
(275)
Pre-tax loss from continuing ops
(627)
$
(853)
$
(831)
$
Total Assets
31,465
$
31,644
$
35,622
$
(1) OID amortization expense of $296 million in 1Q10
(2) Excludes $101 million of accelerated OID amortization expense in 1Q10
OID Amortization Schedule
($ billions)
As of 6/30/2010
$0.6
$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
22
Discontinued Operations
Continued streamlining operations with seven additional businesses sold in 2Q
Asset sales generating gains driven by improved market conditions
Sale of U.K. mortgage assets generated net gain of $93 million
Sale of European mortgage business expected to close in 3Q10
Impact of Discontinued Operations, net of tax
($ millions)
2Q 10
1Q 10
International Automotive Finance
44
$
2
$
Insurance
(4)
(1)
Global Automotive Services
40
1
Mortgage Operations
98
12
Corporate and Other
14
4
Consolidated net income (loss)
152
$
17
$
Insurance
Mortgage
Corporate and Other
Discontinued Operations
sold in 2Q
Australia
Poland
Australia
Belgium
France
Poland
Commercial Services
(North American Factoring)
Businesses classified as
Discontinued Operations
as of 6/30/2010
Argentina
Ecuador
Russia
U.K. P&C
U.K. and Continental
Europe
(1)
(1) Definitive agreement signed in April. Sale expected to close in 3Q 2010
Auto Finance
United Kingdom
Full Service Leasing
23
Liquidity
1) Ally utilizes a two-pronged funding strategy designed to support
stable liquidity and diversify funding sources
Cost efficient funding at Ally Bank
Over 65% of new auto originations were funded at
the bank level
2) Net bank deposits grew by $2.3 billion with strong CD
retention rates
Consistent and diversified access to the capital markets
Over $25 billion YTD of funding in the U.S. and
abroad
Ally Financial Funding Transactions - 2Q 2010
($ billions)
ABS - Public / 144A
(1)
2.7
$
ABS - Private / Other
1.1
Revolving Bank Facilities
(2)
8.6
Unsecured Issuances
1.4
Total 2Q Funding Transactions
13.8
$
(1) Includes $674 million at ResCap
(2) Includes $600 million at ResCap
Available Liquidity
6/30/2010
3/31/2010
($ billions)
Parent
(1)(2)
Ally Bank
Parent
(1)(2)
Ally Bank
Cash and Cash Equivalents
10.3
$
2.6
$
9.0
$
4.3
$
Unencumbered Securities
(3)
1.1
3.8
0.3
3.4
Secured Committed Unused Capacity
(4)
10.5
6.9
12.7
1.6
Unsecured Committed Unused Capacity
0.1
-
0.1
-
Total Current Available Liquidity
22.0
$
13.3
$
22.1
$
9.3
$
Whole Loan Forward Flow Agreements
1.5
-
4.5
-
Total Available Liquidity
23.5
$
13.3
$
26.6
$
9.3
$
(1)
Parent defined as Ally Consolidated less Ally Bank, ResCap (not shown) and Insurance (not shown)
(2)
Includes overnight funds placed at Ally Bank at quarter-end
(3)
Includes UST, Agency debt and Agency MBS
(4)
Includes equal allocation of shared capacity totaling $3.0 billion in 2Q and $2.1 billion in 1Q that can be used by Ally Bank or the parent company
24
Deposits
Average CD Maturity and Rate
Retail CD Balance Retention
(1)
(months)
($ billions)
(1) Retention includes balances retained in any Ally Bank product
25.5
24.2
12.8
11.3
12.0
12.1
1.82%
2.00%
2.34%
2.59%
2.96%
3.41%
0.0
5.0
10.0
15.0
20.0
25.0
30.0
1Q 09
2Q 09
3Q 09
4Q 09
1Q 10
2Q 10
0.00%
1.00%
2.00%
3.00%
4.00%
5.00%
Avg. Maturity of Newly Originated CDs
Avg Retail Deposit Rate
82%
73%
69%
65%
63%
69%
$0.0
$0.5
$1.0
$1.5
$2.0
$2.5
$3.0
$3.5
1Q 09
2Q 09
3Q 09
4Q 09
1Q 10
2Q 10
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
CD Balances Up for Renewal
CD Balances Retained
Retention Rate
Bank Deposit Levels
(1)
($ billions)
(1) Excludes certain parent company deposits
$34.3
$32.0
$31.1
$28.8
$26.3
$23.1
$0.0
$5.0
$10.0
$15.0
$20.0
$25.0
$30.0
$35.0
$40.0
1Q 09
2Q 09
3Q 09
4Q 09
1Q10
2Q10
Ally Bank Retail
Ally Bank Brokered
Ally Bank Other
ResMor
Ally Bank - 2Q 2010 External Funding Sources
FHLB
Borrowings
11%
Retail Deposits
44%
Brokered CDs
23%
Securitization
22%
25
Cost of Funds
Ally’s total deposits as a percent of total interest bearing liabilities has increased from 13% in 4Q08 to 26% in 2Q10,
driving cost of funds improvement
Historical Portfolio Cost of Funds
(1)
(1) Reported amounts represent quarterly interest expense (excluding OID expense) divided by average debt
for continuing operations in each period. The impact of historical financial statement restatements for
discontinued operations is not reflected in prior period cost of funds.
(2) Including OID expense, stated cost of funds would be 5.2%
4.2%
4.4%
4.4%
4.8%
5.3%
5.3%
3.0%
4.0%
5.0%
6.0%
1Q 09
2Q 09
3Q 09
4Q 09
1Q 10
2Q 10
Cost of Funds
Cost of Funds
(2)
26
Capital Ratios
See slide 39 for further details on capital numbers stated above
Capital levels up in 2Q driven by positive net income and reduction of risk weighted assets (“RWA”)
RWA declined due to whole loan sales and continued amortization of the lease book, partially offset by increased
auto originations
Net income more than offset dividends on our preferred stock that have been paid or declared
2Q dividends lower as certain preferred dividends were accelerated to 1Q
($ billions)
6/30/2010
3/31/2010
Tier 1 Capital
22.4
$
22.1
$
Tier 1 Common Capital
7.7
$
7.4
$
Total Risk-Based Capital
24.6
$
24.4
$
Tangible Common Equity
8.1
$
7.8
$
Tangible Assets
176.3
$
178.9
$
Risk-Weighted Assets
146.3
$
148.4
$
Tier 1 Capital Ratio
15.3%
14.9%
Tier 1 Common Capital Ratio
5.2%
5.0%
Total Risk-Based Capital Ratio
16.8%
16.4%
Tangible Common Equity / Tangible Assets
4.6%
4.4%
Tangible Common Equity / Risk-Weighted Assets
5.5%
5.3%
27
Summary
All four operating segments were profitable, along with Ally Bank and ResCap legal entities
Credit trends continued to improve
Continued progress reducing legacy mortgage risk
Liquidity significantly strengthened
Cost of funds advantage of deposit base materializing
Second Quarter Progress
Continued Focus on Strategic Objectives
Become the premier global auto finance provider for dealers and consumers
Demonstrate consistent and diversified access to capital markets
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
Improve our cost structure and efficiency
Fully transition to a bank holding company model
28
Supplemental Charts
Condensed Consolidated Income Statement
Supplemental
($ millions)
2Q 10
1Q 10
2Q 09
1Q 10
2Q 09
Total financing revenue and other interest income
2,902
$
3,117
$
3,389
$
(215)
$
(487)
$
Interest expense
1,664
1,705
1,940
(41)
(276)
Depreciation expense on operating lease assets
526
656
1,056
(130)
(530)
Net financing revenue
712
756
393
(44)
319
Servicing fees
384
385
393
(1)
(9)
Servicing asset valuation and hedge activities, net
(21)
(133)
(225)
112
204
Insurance premiums and service revenue earned
477
468
496
9
(19)
Gain on mortgage and automotive loans, net
266
271
206
(5)
60
(Loss) gain on extinguishment of debt
(3)
(118)
13
115
(16)
Other gain on investments, net
95
140
97
(45)
(2)
Other income, net of losses
190
85
(113)
105
303
Total other revenue
1,388
1,098
867
290
521
Total net revenue
2,100
1,854
1,260
246
840
Provision for loan losses
220
146
1,117
74
(897)
Insurance losses and loss adjustment expenses
224
211
261
13
(37)
Other operating expenses
1,210
1,316
1,465
(106)
(255)
Total noninterest expense
1,434
1,527
1,726
(93)
(292)
Income (loss) from cont. ops before income tax benefit
446
181
(1,583)
265
2,029
Income tax expense from continuing operations
33
36
1,096
(3)
(1,063)
Net income (loss) from continuing operations
413
145
(2,679)
268
3,092
Income (loss) from discontinued ops, net of tax
152
17
(1,224)
135
1,376
Net income (loss)
565
$
162
$
(3,903)
$
403
$
4,468
$
Increase/(Decrease) vs.
30
North American Auto - Condensed Income Statement
Supplemental
($ millions)
2Q 10
1Q 10
2Q 09
1Q 10
2Q 09
Total financing revenue and other interest income
1,943
$
2,095
$
2,292
$
(152)
$
(349)
$
Interest expense
568
575
573
(7)
(5)
Depreciation expense on operating lease assets
(1)
486
607
990
(121)
(504)
Net financing revenue
889
913
729
(24)
160
Servicing fees
55
60
58
(5)
(3)
Gain on automotive loans, net
66
113
46
(47)
20
Other income
65
30
34
35
31
Total other revenue
186
203
138
(17)
48
Total net revenue
1,075
1,116
867
(41)
208
Provision for loan losses
106
101
15
5
91
Noninterest expense
339
362
401
(23)
(62)
Income from cont. ops before income tax expense
630
653
451
(23)
179
Income tax expense from continuing operations
(2)
176
257
972
(81)
(796)
Net income (loss) from continuing operations
454
$
396
$
(521)
$
58
$
975
$
Notable Items - Pre-Tax
($ millions)
2Q 10
1Q 10
2Q 09
1Q 10
2Q 09
(1) Remarketing gain (loss)
205
$
185
$
134
$
20
$
71
$
(2) Tax impact of incorporation
-
-
(1,051)
-
1,051
Increase/(Decrease) vs.
Increase/(Decrease) vs.
31
International Auto - Condensed Income Statement
Supplemental
($ millions)
2Q 10
1Q 10
2Q 09
1Q 10
2Q 09
Total financing revenue and other interest income
422
$
465
$
565
$
(43)
$
(143)
$
Interest expense
209
234
311
(25)
(102)
Depreciation expense on operating lease assets
40
48
66
(8)
(26)
Net financing revenue
173
183
188
(10)
(15)
Gain (loss) on automotive loans, net
3
7
(2)
(4)
5
Other income
89
91
101
(2)
(12)
Total other revenue
92
98
99
(6)
(7)
Total net revenue
265
281
287
(16)
(22)
Provision for loan losses
11
23
58
(12)
(47)
Noninterest expense
(1) (2)
149
216
196
(67)
(47)
Income from cont. ops before income tax expense
105
42
33
63
72
Income tax expense (benefit) from continuing operations
4
(13)
145
17
(141)
Net income (loss) from continuing operations
101
$
55
$
(112)
$
46
$
213
$
Notable Items - Pre-Tax
($ millions)
2Q 10
1Q 10
2Q 09
1Q 10
2Q 09
(1) Realized exchange gain (loss)
16
$
(6)
$
8
$
22
$
8
$
(2) Other non-controllable expense - tax reserve release
8
-
-
8
8
Increase/(Decrease) vs.
Increase/(Decrease) vs.
32
Mortgage Operations - Condensed Income Statement
Supplemental
($ millions)
2Q 10
1Q 10
2Q 09
1Q 10
2Q 09
Total financing revenue and other interest income
456
$
482
$
510
$
(26)
$
(54)
$
Interest expense
302
300
373
2
(71)
Net financing revenue
154
182
137
(28)
17
Servicing fees
(1)
328
324
334
4
(6)
Servicing asset valuation & hedge activities, net
(1)
(21)
(133)
(225)
112
204
Gain on mortgage loans, net
197
151
167
46
30
Other income (loss), net of losses
27
27
(360)
-
387
Total other revenue (expense)
531
369
(84)
162
615
Total net revenue
685
551
53
134
632
Provision for loan losses
(2)
92
7
871
85
(779)
Noninterest expense
(3)
363
388
517
(25)
(154)
Income (loss) from cont. ops before income tax (benefit) expense
230
156
(1,335)
74
1,565
Income tax (benefit) expense from continuing operations
(2)
8
(183)
(10)
181
Net income (loss) from continuing operations
232
$
148
$
(1,152)
$
84
$
1,384
$
Notable Items - Pre-Tax
($ millions)
2Q 10
1Q 10
2Q 09
1Q 10
2Q 09
(1) Net servicing
307
$
191
$
109
$
116
$
198
$
(2) Ally Bank provision expense
(87)
(15)
(412)
(72)
325
(3) Mortgage repurchase reserve expense
(97)
(49)
(237)
(48)
140
Increase/(Decrease) vs.
Increase/(Decrease) vs.
33
Corporate and Other - Condensed Income Statement
Supplemental
($ millions)
2Q 10
1Q 10
2Q 09
1Q 10
2Q 09
Net financing loss
(1)(4)
(529)
$
(552)
$
(714)
$
23
$
185
$
Gain (loss) on mortgage and automotive loans, net
-
-
(5)
-
5
(Loss) gain on extinguishment of debt
(2)
(3)
(118)
13
115
(16)
Other income, net of losses
(5)
39
(39)
180
78
(141)
Total other revenue (expense)
36
(157)
188
193
(152)
Total net loss
(493)
(709)
(526)
216
33
Provision for loan losses
(3)
11
15
173
(4)
(162)
Noninterest expense
(6)
123
129
132
(6)
(9)
Loss from cont. ops before income tax (benefit)
(627)
(853)
(831)
226
204
Income tax (benefit) expense from cont. ops
(167)
(277)
134
110
(301)
Net loss from continuing operations
(460)
$
(576)
$
(965)
$
116
$
505
$
Notable Items - Pre-Tax
($ millions)
2Q 10
1Q 10
2Q 09
1Q 10
2Q 09
(1) Amortization of bond exchange discount
(292)
$
(296)
$
(275)
$
4
$
(17)
$
(2) Accelerated OID from 1Q 10
-
(101)
-
101
-
(3) Resort finance provision
(13)
(10)
(105)
(3)
92
(4) Net Impact of FTP Allocations
(256)
(267)
(470)
11
214
(5) MTM and hedging activity
(9)
(72)
59
63
(68)
(6) Restructuring expense
(21)
(35)
-
14
(21)
Increase/(Decrease) vs.
Increase/(Decrease) vs.
34
Condensed Consolidated Balance Sheet
Supplemental
($ millions)
6/30/10
3/31/10
6/30/09
3/31/10
6/30/09
Cash and cash equivalents
14,348
$
14,670
$
18,655
$
(322)
$
(4,307)
$
Trading securities
209
144
783
65
(574)
Investment securities
12,710
11,651
9,209
1,059
3,501
Loans held-for-sale
10,382
13,998
11,440
(3,616)
(1,058)
Finance receivables and loans, net of unearned Income
92,716
89,040
91,892
3,676
824
Allowance for loan losses
(2,377)
(2,480)
(3,301)
103
924
Total finance receivables and loans, net
90,339
86,560
88,591
3,779
1,748
Investment in operating leases, net
11,895
14,003
21,597
(2,108)
(9,702)
Other assets
24,880
25,162
30,973
(282)
(6,093)
Assets of operations held-for-sale
12,039
13,239
-
(1,200)
12,039
Total assets
176,802
$
179,427
$
181,248
$
(2,625)
$
(4,446)
$
Noninterest bearing
2,276
$
1,927
$
2,178
$
349
$
98
$
Interest bearing
32,938
30,933
23,974
2,005
8,964
Total deposit liabilities
35,214
32,860
26,152
2,354
9,062
Short-term borrowings
7,054
7,609
8,384
(555)
(1,330)
Long-term debt
85,205
90,276
96,791
(5,071)
(11,586)
Total debt
92,259
97,885
105,175
(5,626)
(12,916)
Other liabilities
17,219
15,925
23,875
1,294
(6,656)
Liabilities of operations held-for-sale
11,337
12,209
-
(872)
11,337
Total liabilities
156,029
$
158,879
$
155,202
$
(2,850)
$
827
$
Equity
20,773
$
20,548
$
26,046
$
225
$
(5,273)
$
Total liabilities and equity
176,802
$
179,427
$
181,248
$
(2,625)
$
(4,446)
$
Increase/(Decrease) vs.
35
Supplemental Consumer Auto Credit Quality Data
Supplemental
North American Loss Per Vehicle (Serviced Basis)
$11,246
$10,398
$9,288
$9,635
$8,951
$8,495
$6,000
$8,000
$10,000
$12,000
1Q 09
2Q 09
3Q 09
4Q 09
1Q 10
2Q 10
Managed Loans > 30 Days Past Due
North
America
Europe
Latin
America
Global
2Q 10
3.14%
0.87%
4.10%
2.93%
1Q 10
3.07%
0.98%
4.70%
2.87%
Quarter-over-Quarter Change
+7 bps
-10 bps
-60 bps
+6 bps
Net Retail Losses (% Avg Managed Loans)
North
America
Europe
Latin
America
Global
2Q 10
1.03%
0.41%
2.16%
1.05%
1Q 10
2.30%
0.57%
2.72%
2.04%
Quarter-over-Quarter Change
-127 bps
-16 bps
-56 bps
-99 bps
36
Ally Bank HFI Portfolio
In conjunction with strategic actions taken in 4Q09, higher risk loans at Ally Bank were reclassified as held for sale,
marked to a market based level, purchased by Ally Financial and contributed to ResCap
As a result, the credit quality of Ally Bank’s remaining HFI portfolio was improved as measured across several metrics
such as:
Reduced percentage of low documentation loans
Higher average FICO score
Lower average LTV
Delinquencies on this portfolio are progressing in line with expectations
Supplemental
($ billions)
6/30/2010
3/31/2010
12/31/2009
9/30/2009
UPB
10.4
$
10.3
$
10.3
$
13.7
$
Carry Value
9.8
$
9.8
$
9.7
$
13.1
$
Estimated Pool Characteristics:
% Prime Jumbo (> 1/1/2009)
16.1%
12.4%
9.2%
4.9%
% Second Lien
17.0%
17.9%
18.7%
21.3%
% Interest Only
57.0%
58.3%
59.2%
58.3%
% 30+ Day Delinquent
4.4%
4.4%
3.0%
10.0%
% Low/No Documentation
18.9%
19.7%
20.4%
27.7%
% Non-primary Residence
4.6%
4.8%
4.9%
5.5%
% Option Arm
0.3%
0.3%
0.3%
0.4%
Refreshed FICO
725
723
725
705
Wtd. Avg. LTV/CLTV
(1)
94%
95%
96%
106%
Higher Risk Geographies
(2)
39%
39%
39%
43%
(1) Updated home values derived from MSA level adjustments based on Case-Shiller and other industry data
(2) Includes CA, FL, MI and AZ
Mortgage Pool Characteristics - Ally Bank HFI Portfolio
Bank HFI as of
37
ResCap, LLC - Key Financial Information
ResCap, LLC met its covenants with tangible net worth of $793 million at the end of the second quarter
(1) For the purpose of ResCap’s tangible net worth covenants, consolidated tangible net worth is defined as
the company’s consolidated equity, excluding intangible assets and any equity in Ally
Bank to the extent
included in ResCap’s consolidated balance sheet
Supplemental
($ millions)
2Q 10
1Q 10
Net income
364
$
110
$
($ millions)
6/30/2010
3/31/2010
Cash & cash equivalents
621
$
725
$
Mortgage loans held-for-sale
4,613
5,131
Mortgage loans held-for-investment, net
2,759
3,008
Mortgage servicing rights
1,950
2,413
Other assets
18,611
17,166
Total assets
28,554
$
28,442
$
Total liabilities
27,760
$
28,017
$
Tangible net worth
(1)
793
$
426
$
38
Capital Measures
Supplemental
Capital
6/30/2010
3/31/2010
Shareholders’ Equity
20.8
$
20.5
$
Less:
Goodwill and certain other intangibles
(0.5)
(0.5)
Unrealized (gain) loss and other adjustments
(0.4)
(0.5)
Add:
Trust Preferred Securities
2.5
2.5
Total Tier 1 Capital
22.4
22.1
Total Tier 1 Capital
22.4
22.1
Less:
Preferred Securities
(12.2)
(12.2)
Trust Preferred Securities
(2.5)
(2.5)
Total Tier 1 Common Capital
7.7
7.4
Total Tier 1 Capital
22.4
22.1
Add:
Qualifying subordinated debt and redeemable preferred stock
0.2
0.2
Allowance for loan and lease losses includible in Tier 2 Capital
2.0
2.1
Total Risk-Based Capital
24.6
24.4
Total Equity
20.8
20.5
Less:
Preferred equity
(12.2)
(12.2)
Goodwill and intangible assets
(0.5)
(0.5)
Tangible Common Equity
8.1
7.8
Total Assets
176.8
179.4
Less:
Goodwill and intangible assets
(0.5)
(0.5)
Tangible Assets
176.3
$
178.9
$
Note: Numbers may not foot due to rounding
($ billions)
39
Unsecured Long-Term Debt Maturity Profile
Note: Scheduled maturities of ResCap unsecured long-term debt are as follows: $419 million in 2010; $208 million in 2011; $340
million in 2012; $529 million in 2013; $97 million in 2014; and $112
million in 2015 and thereafter. These maturities exclude
ResCap debt held by Ally Financial. As of 6/30/2010
Supplemental
Ally Financial Inc. Consolidated Unsecured Long-Term Debt Maturity Profile
($ billions)
$2
$9
$13
$2
$2
$21
$-
$5
$10
$15
$20
$25
$30
Remaining 2010
2011
2012
2013
2014
2015 and
thereafter
40
Ownership Structure
Supplemental
Common Ownership as of 6/30/2010
GM
6.7%
GM
Trust
9.9%
3rd Party
Investors
12.2%
Cerberus
14.9%
US Treasury
56.3%
($ 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 6/30/2010
41