SECOND QUARTER 2012

  

FINANCIAL SUPPLEMENT

 

 

 

ALLY FINANCIAL INC. 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 2011 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 ” 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 filed with the SEC. Such factors include, among others, the following: maintaining the mutually beneficial relationship between Ally and General Motors (“GM”), and Ally and Chrysler Group LLC (“Chrysler”); the profitability and financial condition of GM and Chrysler; bankruptcy court approval of the plan and settlement related to the bankruptcy filings by Residential Capital, LLC and certain of its subsidiaries; our ability to realize the anticipated benefits associated with being a bank holding company, and the increased regulation and restrictions that we are now subject to; the potential for deterioration in the residual value of off-lease vehicles; disruptions in the market in which we fund our 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 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 Dodd-Frank Act and Basel III).

 

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. Reconciliation of non-GAAP financial measures included within this presentation are provided in this presentation.

 

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.

 

ALLY FINANCIAL INC. TABLE OF CONTENTS

 

 

	Page(s)
Consolidated Results
Consolidated Financial Highlights	4
Consolidated Income Statement	5
Consolidated Period-End Balance Sheet	6
Consolidated Average Balance Sheet	7
Segment Detail
Segment Highlights	8
North American Automotive Finance	9-10
International Automotive Finance	11-12
Insurance	13
Mortgage Operations	14
Corporate and Other	15
Credit Related Information	16-18
Supplemental Detail
Capital	19
Liquidity	20
Deposits	21
Ally Bank Consumer Mortgage HFI Portfolio	22
Mortgage Repurchase Outstanding Claims	23
Ownership	24

 

ALLY FINANCIAL INC. CONSOLIDATED FINANCIAL HIGHLIGHTS

 

($ in millions)
	QUARTERLY TRENDS															CHANGE VS.
Selected Income Statement Data	2Q 12			1Q 12			4Q 11			3Q 11			2Q 11			1Q 12			2Q 11
Net financing revenue (ex. OID)	$	878	$		777	$		743		$	832	$		972	$		101	$		(94)
Total other revenue (ex. OID)		928			1,187			977			554			1,077			(259)			(149)
Total net revenue (ex. OID)		1,806			1,964			1,720			1,386			2,049			(158)			(243)
Provision for loan losses		29			140			6			50			50			(111)			(21)
Controllable expenses (1)		792			906			965			731			825			(114)			(33)
Other noninterest expenses		1,738			444			729			486			709			1,294			1,029
Core pre-tax (loss) income (2)	$	(753)	$		474	$		20		$	119	$		465	$		(1,226)	$		(1,217)
Core OID amortization expense (3) (4)		96			108			137			225			274			(11)			(177)
Income tax expense		15			64			73			93			83			(49)			(68)
(Loss) income from discontinued operations		(34)			8			(16)			(11)			5			(42)			(39)
Net (loss) income	$	(898)	$		310	$		(206)		$	(210)	$		113	$		(1,208)	$		(1,011)
Selected Balance Sheet Data (Period-End)
Total assets	$	178,560	$		186,350	$		184,059		$	181,956	$		178,889	$		(7,790)	$		(329)
Consumer loans (5)		77,959			78,004			74,287			70,815			70,093			(45)			7,866
Commercial loans (6)		41,954			41,814			40,468			37,897			40,632			140			1,322
Allowance balance		(1,427)			(1,546)			(1,503)			(1,621)			(1,739)			119			312
Deposits		47,992			47,206			45,050			44,326			42,262			786			5,730
Common equity (7)		11,423			12,727			12,431			12,792			13,483			(1,304)			(2,060)
Total equity		18,363			19,667			19,371			19,732			20,423			(1,304)			(2,060)
Select Financial Ratios
Net interest margin (8)		2.2%			1.9%			1.8%			2.1%			2.5%
Return on average total equity (annualized)		-18.9%			6.4%			-4.2%			-4.2%			2.2%
Return on average assets (annualized)		-1.9%			0.7%			-0.4%			-0.5%			0.3%
Capital Ratios
Tier 1 capital ratio		13.7%			13.5%			13.7%			14.3%			14.6%
Tier 1 common capital ratio (9)		7.3%			7.5%			7.6%			8.0%			8.4%
Total risk-based capital ratio		14.7%			14.5%			14.7%			15.5%			15.9%

 

 

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(1)

Includes employee related costs, consulting and legal fees, marketing, information technology, facility, portfolio servicing and restructuring expenses

(2)

Core pre-tax income (loss) is a non-GAAP financial measure. It is defined as income from continuing operations before taxes and primarily bond exchange original issue discount ("OID") amortization expense

(3)

Includes $20 million of accelerated OID amortization in 2Q11

(4)

Core OID excludes IO and 2010 issuances

(5)

These amounts exclude loans held-for-sale

(6)

Includes notes receivable from General Motors

(7)

Includes common stock and paid-in capital, accumulated deficit and accumulated other comprehensive income

(8)

Excludes OID amortization expense. The impact of historical financial statement restatements for discontinued operations are not reflected in prior periods

(9)

Tier 1 common capital ratio is a non-GAAP measurement. Refer to page 19 for additional details

 

ALLY FINANCIAL INC. CONSOLIDATED INCOME STATEMENT

 

($ in millions)
	QUARTERLY TRENDS															CHANGE VS.
	2Q 12			1Q 12			4Q 11			3Q 11			2Q 11			1Q 12			2Q 11
Financing revenue and other interest income
Interest and fees on finance receivables and loans (1)	$	1,691	$		1,678	$		1,659		$	1,680	$		1,675	$		13	$		16
Interest on loans held-for-sale		36			73			76			86			86			(37)			(50)
Interest on trading securities		2			11			9			4			3			(9)			(1)
Interest and dividends on available-for-sale investment securities		86			84			87			102			106			2			(20)
Interest-bearing cash		18			14			13			14			15			4			3
Operating leases		579			540			515			530			598			39			(19)
Total financing revenue and other interest income		2,412			2,400			2,359			2,416			2,483			12			(71)
Interest expense
Interest on deposits		184			186			184			179			171			(2)			13
Interest on short-term borrowings		60			75			74			61			87			(15)			(27)
Interest on long-term debt		1,068			1,177			1,179			1,293			1,331			(109)			(263)
Total interest expense		1,312			1,438			1,437			1,533			1,589			(126)			(277)
Depreciation expense on operating lease assets		318			293			316			276			176			25			142
Net financing revenue		782			669			606			607			718			113			64
Other revenue
Servicing fees		216			310			325			335			341			(94)			(125)
Servicing asset valuation and hedge activities, net		(73)			9			(126)			(471)			(105)			(82)			32
Total servicing income, net		143			319			199			(136)			236			(176)			(93)
Insurance premiums and service revenue earned		359			375			385			390			399			(16)			(40)
Gain on mortgage and automotive loans, net		134			126			169			95			116			8			18
Loss on extinguishment of debt		-			-			-			-			(25)			-			25
Other gain on investments, net		66			90			43			75			92			(24)			(26)
Other income, net of losses		226			277			181			130			239			(51)			(13)
Total other revenue		928			1,187			977			554			1,057			(259)			(129)
Total net revenue		1,710			1,856			1,583			1,161			1,775			(146)			(65)
Provision for loan losses		29			140			6			50			50			(111)			(21)
Noninterest expense
Compensation and benefits expense		389			475			442			293			415			(86)			(26)
Insurance losses and loss adjustment expenses		208			159			146			170			227			49			(19)
Other operating expenses		1,933			716			1,106			754			892			1,217			1,041
Total noninterest expense		2,530			1,350			1,694			1,217			1,534			1,180			996
(Loss) income from continuing operations before income tax expense (benefit)		(849)			366			(117)			(106)			191			(1,215)			(1,040)
Income tax expense from continuing operations		15			64			73			93			83			(49)			(68)
Net (loss) income from continuing operations		(864)			302			(190)			(199)			108			(1,166)			(972)
(Loss) income from discontinued operations, net of tax		(34)			8			(16)			(11)			5			(42)			(39)
Net (loss) income	$	(898)		$	310		$	(206)		$	(210)		$	113		$	(1,208)		$	(1,011)

 

 

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(1)

Includes other interest income, net

 

ALLY FINANCIAL INC. CONSOLIDATED PERIOD-END BALANCE SHEET

 

($ in millions)
	QUARTERLY TRENDS															CHANGE VS.
Assets	6/30/2012			3/31/2012			12/31/2011			9/30/2011			6/30/2011			3/31/2012			6/30/2011
Cash and cash equivalents
Noninterest-bearing	$	2,106	$		2,279	$		2,475		$	1,517	$		2,039	$		(173)	$		67
Interest-bearing		14,020			10,800			10,560			14,885			12,862			3,220			1,158
Total cash and cash equivalents		16,126			13,079			13,035			16,402			14,901			3,047			1,225
Trading assets		-			895			622			503			311			(895)			(311)
Investment securities		13,366			14,942			15,135			13,981			15,961			(1,576)			(2,595)
Loans held-for-sale, net		2,000			6,670			8,557			8,745			7,168			(4,670)			(5,168)
Finance receivables and loans, net
Finance receivables and loans, net		119,913			119,818			114,755			108,712			110,725			95			9,188
Allowance for loan losses		(1,427)			(1,546)			(1,503)			(1,621)			(1,739)			119			312
Total finance receivables and loans, net		118,486			118,272			113,252			107,091			108,986			214			9,500
Investment in operating leases, net		11,197			10,048			9,275			9,052			9,015			1,149			2,182
Mortgage servicing rights		1,105			2,595			2,519			2,663			3,701			(1,490)			(2,596)
Premiums receivables and other insurance assets		1,887			1,876			1,853			2,026			2,124			11			(237)
Other assets		14,010			16,965			18,741			21,540			16,770			(2,955)			(2,760)
Assets of operations held-for-sale		383			1,008			1,070			(47)			(48)			(625)			431
Total assets	$	178,560		$	186,350		$	184,059		$	181,956		$	178,889		$	(7,790)		$	(329)
Liabilities
Deposit liabilities
Noninterest-bearing	$	2,411	$		2,314	$		2,029		$	2,704	$		2,405	$		97	$		6
Interest-bearing		45,581			44,892			43,021			41,622			39,857			689			5,724
Total deposit liabilities		47,992			47,206			45,050			44,326			42,262			786			5,730
Short-term borrowings		6,010			7,203			7,680			5,933			7,130			(1,193)			(1,120)
Long-term debt		91,096			93,990			92,794			90,546			91,723			(2,894)			(627)
Interest payable		1,552			1,675			1,587			1,712			1,734			(123)			(182)
Unearned insurance premiums and service revenue		2,631			2,632			2,576			2,757			2,845			(1)			(214)
Reserves for insurance losses and loss adjustment expenses		477			565			580			690			782			(88)			(305)
Accrued expense and other liabilities		10,198			13,089			14,084			16,260			11,990			(2,891)			(1,792)
Liabilities of operations held-for-sale		241			323			337			-			-			(82)			241
Total liabilities	$	160,197	$		166,683	$		164,688		$	162,224	$		158,466	$		(6,486)	$		1,731
Equity
Common stock and paid-in capital	$	19,668			$19,668	$		19,668		$	19,668	$		19,668	$		0	$		(0)
Mandatorily convertible preferred stock held by U.S. Department of Treasury		5,685			5,685			5,685			5,685			5,685			-			-
Preferred stock		1,255			1,255			1,255			1,255			1,255			-			-
Accumulated deficit		(8,313)			(7,215)			(7,324)			(6,918)			(6,508)			(1,098)			(1,805)
Accumulated other comprehensive income		68			274			86			42			323			(206)			(255)
Total equity		18,363			19,667			19,371			19,732			20,423			(1,304)			(2,060)
Total liabilities and equity	$	178,560		$	186,350		$	184,059		$	181,956		$	178,889		$	(7,790)		$	(329)

 

ALLY FINANCIAL INC. CONSOLIDATED AVERAGE BALANCE SHEET (1)

 

($ in millions)
	QUARTERLY TRENDS															CHANGE VS.
Assets	6/30/2012			3/31/2012			12/31/2011			9/30/2011			6/30/2011			3/31/2012			6/30/2011
Interest-bearing cash and cash equivalents	$	12,589	$		10,641	$		11,187		$	13,373	$		11,910	$		1,948	$		679
Trading assets		114			990			647			351			146			(876)			(32)
Investment securities		13,239			13,704			15,487			13,814			14,311			(465)			(1,072)
Loans held-for-sale, net		4,310			7,754			10,588			9,654			8,320			(3,444)			(4,010)
Total finance receivables and loans, net (2)		121,834			117,482			114,069			112,478			111,543			4,352			10,291
Investment in operating leases, net		10,619			9,649			9,129			9,040			9,004			970			1,615
Total interest earning assets		162,705			160,220			161,107			158,710			155,234			2,485			7,471
Noninterest-bearing cash and cash equivalents		2,695			2,004			1,841			1,321			1,020			691			1,675
Other assets		20,678			23,796			23,350			27,565			23,966			(3,118)			(3,288)
Allowance for loan losses		(1,496)			(1,528)			(1,609)			(1,737)			(1,816)			32			320
Total assets	$	184,582		$	184,492		$	184,689		$	185,859		$	178,404		$	90		$	6,178
Liabilities
Interest-bearing deposit liabilities	$	45,329	$		44,796	$		43,823		$	42,131	$		40,386	$		533	$		4,943
Short-term borrowings		6,853			6,905			7,137			7,320			7,280			(52)			(427)
Long-term debt (3)		94,092			91,558			91,590			92,313			90,606			2,534			3,486
Total interest-bearing liabilities (3)		146,274			143,259			142,550			141,764			138,272			3,015			8,002
Noninterest-bearing deposit liabilities		2,279			2,141			2,374			2,509			2,170			138			109
Other liabilities		17,071			19,612			20,156			21,529			17,517			(2,541)			(446)
Total liabilities	$	165,624	$		165,012	$		165,080		$	165,802	$		157,959	$		612	$		7,665
Equity
Total equity	$	18,958		$	19,480	$		19,609		$	20,057		$	20,445		$	(522)		$	(1,487)
Total liabilities and equity	$	184,582		$	184,492		$	184,689		$	185,859		$	178,404		$	90		$	6,178

 

 

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Note: The impact of financial statement restatements for discontinued operations are not reflected in prior periods

(1)

Average balances are calculated using a combination of monthly and daily average methodologies

(2)

Nonperforming finance receivables and loans are included in the average balances net of unearned income, unamortized premiums and discounts, and deferred fees and costs

(3)

Average balance includes $1,960 million related to OID at June 30, 2012

 

ALLY FINANCIAL INC. SEGMENT HIGHLIGHTS

 

($ in millions)
	QUARTERLY TRENDS															CHANGE VS.
	2Q 12			1Q 12			4Q 11			3Q 11			2Q 11			1Q 12			2Q 11
North American Automotive Finance	$	631	$		442	$		478	$		551	$		559	$		189	$		72
International Automotive Finance		72			45			21			89			69			27			3
Insurance		43			124			93			111			72			(81)			(29)
Global Automotive Services		746			611			592			751			700			135			46
Mortgage Operations (1)		24			191			(258)			(409)			(125)			(167)			149
Corporate and Other (ex. OID) (2)		(1,523)			(328)			(314)			(223)			(110)			(1,195)			(1,413)
Core pre-tax income (3)		(753)			474			20			119			465			(1,227)			(1,218)
Core OID amortization expense (4)		96			108			137			225			274			(12)			(178)
Income tax expense		15			64			73			93			83			(49)			(68)
(Loss) income from discontinued operations		(34)			8			(16)			(11)			5			(42)			(39)
Net (loss) income	$	(898)		$	310		$	(206)		$	(210)		$	113		$	(1,208)		$	(1,011)

 

 

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(1)

Mortgage Operations includes ResCap results prior to the May 14, 2012 deconsolidation

(2)

Corporate and Other primarily consists of centralized corporate treasury and deposit gathering activities, such as management of the cash and corporate investment securities portfolios, short and long term debt, retail and brokered deposit liabilities, derivative instruments, the amortization of the discount associated with new debt issuances and bond exchanges, most notably from the December 2008 bond exchange, and the residual impacts of our corporate funds transfer pricing (FTP) and treasury asset liability management (ALM) activities. The segment also includes our Commercial Finance Group, certain equity investments and reclassifications and eliminations between the reportable operating segments. 2Q12 Corporate and Other includes the $1,192 million charge recorded for ResCap actions

(3)

Core pre-tax income is a non-GAAP financial measure. It is defined as income from continuing operations before taxes and primarily bond exchange OID amortization expense

(4)

Includes $20 million of accelerated OID amortization in 2Q11

 

ALLY FINANCIAL INC. NORTH AMERICAN AUTO - CONDENSED FINANCIAL STATEMENTS

 

($ in millions)
	QUARTERLY TRENDS															CHANGE VS.
Income Statement	2Q 12			1Q 12			4Q 11			3Q 11			2Q 11			1Q 12			2Q 11
Net financing revenue
Consumer	$	810	$		763	$		739		$	718	$		706	$		47	$		104
Commercial (1)		330			322			324			346			329			8			1
Loans held-for-sale		6			5			5			-			-			1			6
Operating leases		574			536			511			527			594			38			(20)
Other interest income		17			18			31			29			23			(1)			(6)
Total financing revenue and other interest income		1,737			1,644			1,610			1,620			1,652			93			85
Interest expense		585			578			591			590			604			7			(19)
Depreciation expense on operating lease assets		315			291			315			275			170			24			145
Net financing revenue		837			775			704			755			878			62			(41)
Other revenue
Servicing fees		30			30			35			39			42			-			(12)
Gain on automotive loans, net		39			-			-			33			15			39			24
Other income		45			49			49			54			57			(4)			(12)
Total other revenue		114			79			84			126			114			35			-
Total net revenue		951			854			788			881			992			97			(41)
Provision for loan losses		16			78			(33)			25			55			(62)			(39)
Noninterest expense
Compensation and benefits		108			119			115			92			111			(11)			(3)
Other operating expenses		196			215			228			213			267			(19)			(71)
Total noninterest expense		304			334			343			305			378			(30)			(74)
Income before income tax expense	$	631		$	442		$	478		$	551		$	559		$	189		$	72
Balance Sheet (Period-End)
Loans held-for-sale	$	623	$		623	$		425		$	464	$		-	$		-	$		623
Finance receivables and loans, net:
Consumer loans		58,310			57,075			54,076			50,507			48,925			1,235			9,385
Commercial loans		34,056			34,446			32,474			30,364			32,973			(390)			1,083
Allowance for loan losses		(713)			(756)			(736)			(838)			(897)			43			184
Total finance receivables and loans, net	$	91,653	$		90,765	$		85,814		$	80,033	$		81,001	$		888	$		10,652
Investment in operating leases, net		11,095			9,957			9,198			8,844			8,751			1,138			2,344
Other assets		1,556			1,549			1,534			1,191			1,191			7			365
Total assets	$	104,927		$	102,894		$	96,971		$	90,532		$	90,943		$	2,033		$	13,984

 

 

---

(1)

Includes interest on notes receivable from General Motors

 

ALLY FINANCIAL INC. NORTH AMERICAN AUTO - KEY STATISTICS

  

	QUARTERLY TRENDS															CHANGE VS.
U.S. Market	2Q 12			1Q 12			4Q 11			3Q 11			2Q 11			1Q 12			2Q 11
SAAR (units in millions)		14.0			14.5			13.4			12.6			12.1			(0.4)			1.9
Industry light vehicle sales (units in millions)		3.8			3.5			3.2			3.2			3.3			0.3			0.5
GM market share		18.7%			17.6%			18.5%			20.2%			20.5%
Chrysler market share		11.5%			11.5%			11.1%			11.6%			10.8%
NAO Total Consumer Originations by Type ($ in billions)
New	$	7.0	$		6.2	$		6.5	$		7.1	$		6.0	$		0.8	$		1.0
Lease		2.1			1.6			1.3			1.7			2.1			0.4			(0.0)
Used		2.6			2.7			2.3			2.4			2.2			(0.1)			0.4
Total NAO	$	11.7	$		10.5	$		10.1	$		11.1	$		10.3	$		1.1	$		1.4
NAO Ally Consumer Penetration
GM		32.7%			31.7%			33.6%			32.7%			35.4%
Chrysler		26.1%			25.9%			25.6%			32.4%			27.2%
U.S. Ally Consumer Penetration
GM		31.6%			30.7%			31.8%			31.6%			36.5%
Chrysler		28.4%			28.0%			27.2%			35.2%			30.3%
U.S. Ally Consumer Originations (1) ($ in billions)
GM new retail subvented	$	1.9	$		1.7	$		2.0	$		1.5	$		1.4	$		0.2	$		0.5
GM new retail standard		1.5			1.6			1.7			1.9			2.1			(0.1)			(0.6)
Chrysler new retail subvented		0.7			0.5			0.5			0.9			0.5			0.2			0.2
Chrysler new retail standard		1.1			1.1			1.0			1.2			0.9			0.1			0.3
Diversified new		0.6			0.5			0.4			0.4			0.4			0.1			0.2
Lease (2)		2.1			1.6			1.3			1.7			2.1			0.5			0.0
Used		2.6			2.6			2.3			2.3			2.1			(0.1)			0.4
Total U.S. originations	$	10.5	$		9.7	$		9.2	$		10.0	$		9.5	$		0.8	$		1.1
NAO Ally Consumer Originations ($ in billions)
Total U.S. originations	$	10.5	$		9.7	$		9.2	$		10.0	$		9.5	$		0.8	$		1.1
Total Canada originations		1.1			0.8			1.0			1.1			0.8			0.3			0.3
Total NAO originations	$	11.7	$		10.5	$		10.1	$		11.1	$		10.3	$		1.1	$		1.4
U.S. Ally Consumer Originations - Additional Data
Number of contracts originated (# in thousands)		398			376			338			379			367			22			32
GM subvented (% based on # of new GM units originated) (3)		64%			59%			58%			54%			52%
Chrysler subvented (% based on # of new Chrysler units originated) (3)		53%			48%			48%			53%			54%
Average original term in months		68			67			66			66			65			1			3
U.S. Ally Floorplan (4)
GM penetration		71.2%			72.2%			73.9%			75.1%			79.3%
Chrysler penetration		60.5%			62.0%			63.3%			66.0%			68.1%
Floorplan outstandings (avg. $ in billions)	$	27.3	$		26.0	$		24.9	$		24.3	$		25.1	$		1.3	$		2.1
NAO Ally Commercial ($ in billions) (4)
Floorplan outstandings	$	31.0	$		29.6	$		28.7	$		28.6	$		29.9	$		1.4	$		1.1
Other dealer loans		3.2			3.1			2.9			2.8			2.7			0.1			0.5
Total commercial outstandings	$	34.1	$		32.7	$		31.5	$		31.3	$		32.5	$		1.5	$		1.6
U.S. Off-Lease Remarketing(5)
Sales proceeds on scheduled lease terminations (36-month) per vehicle - On-balance sheet		NM			NM	$		23,365	$		20,608	$		20,356			NM			NM
Off-lease vehicles terminated - On-balance sheet (# in units)		12,846			15,180			27,733			55,416			74,109			(2,334)			(61,263)

 

 

---

(1)

Some standard rate loan originations contain manufacturer sponsored cash back rebate incentives. Some lease originations contain rate subvention. While Ally may jointly develop marketing programs for these originations, Ally does not have exclusive rights to such originations under operating agreements with manufacturers

(2)

Includes GM and Chrysler lease originations

(3)

Represents subvented originations inclusive of leases not subject to exclusivity agreements

(4)

Penetration rates and commercial outstandings are based on the trailing four month average end of period dealer stocks

(5)

U.S. off-lease remarketing sales proceeds for 36 month leases are not meaningful (NM) as originations of this lease type were immaterial in 1Q 09 & 2Q 09

 

ALLY FINANCIAL INC. INTERNATIONAL AUTO - CONDENSED FINANCIAL STATEMENTS

 

($ in millions)
	QUARTERLY TRENDS															CHANGE VS.
Income Statement	2Q 12			1Q 12			4Q 11			3Q 11			2Q 11			1Q 12			2Q 11
Net financing revenue
Consumer	$	298	$		304	$		291	$		301	$		314	$		(6)	$		(16)
Commercial (1)		90			93			96			111			111			(3)			(21)
Operating leases		5			4			4			3			4			1			1
Other interest income (2)		15			17			20			23			23			(2)			(8)
Total financing revenue and other interest income		408			418			411			438			452			(10)			(44)
Interest expense		234			252			253			270			274			(18)			(40)
Depreciation expense on operating lease assets		3			2			1			1			6			1			(3)
Net financing revenue		171			164			157			167			172			7			(1)
Other revenue
Other income		59			66			64			61			56			(7)			3
Total other revenue		59			66			64			61			56			(7)			3
Total net revenue		230			230			221			228			228			-			2
Provision for loan losses		15			47			23			(2)			7			(32)			8
Noninterest expense
Compensation and benefits		43			44			40			44			44			(1)			(1)
Other operating expenses		100			94			137			97			108			6			(8)
Total noninterest expense		143			138			177			141			152			5			(9)
Income from cont. ops before income tax expense (benefit)	$	72		$	45		$	21		$	89		$	69		$	27		$	3
Balance Sheet (Period-End)
Cash, trading and investment securities	$	22	$		21	$		25	$		176	$		192	$		1	$		(170)
Finance receivables and loans, net:
Consumer loans		9,826			10,139			9,383			9,198			9,810			(313)			16
Commercial loans (3)		4,368			4,778			4,912			4,778			5,214			(410)			(846)
Allowance for loan losses		(193)			(220)			(182)			(174)			(207)			27			14
Total finance receivables and loans, net	$	14,001	$		14,697	$		14,113	$		13,802	$		14,817	$		(696)	$		(816)
Other assets		1,444			1,336			1,367			1,336			1,573			108			(129)
Total assets	$	15,467		$	16,054		$	15,505		$	15,314		$	16,582		$	(587)		$	(1,115)

 

 

---

(1)

Includes interest on notes receivable from General Motors and intercompany

(2)

Includes interest-bearing cash

(3)

Includes notes receivable from General Motors and intercompany

 

ALLY FINANCIAL INC. INTERNATIONAL AUTO - KEY STATISTICS

 

($ in millions)
	QUARTERLY TRENDS															CHANGE VS.
Consumer Originations	2Q 12			1Q 12			4Q 11			3Q 11			2Q 11			1Q 12			2Q 11
Germany	$	458	$		351	$		385		$	512	$		489	$		107	$		(30)
Brazil		513			525			573			535			481			(12)			32
U.K.		201			394			300			341			159			(193)			42
Mexico		145			158			154			158			140			(14)			5
China (1)		666			558			880			835			716			108			(50)
Other		323			307			333			257			282			16			40
Total Continuing International Operations	$	2,306	$		2,294	$		2,624		$	2,638	$		2,267	$		12	$		39
Consumer Origination Statistics (Continuing Operations)
Number of contracts originated (# thousands)		172			156			186			174			150			16			22
Dollar amount of contracts originated	$	2,306	$		2,294	$		2,624		$	2,638	$		2,267	$		12	$		39
Dollar amount of retail contracts outstanding at end of period (2)	$	9,826	$		10,139	$		9,383		$	9,198	$		9,810	$		(313)	$		16
GM subvented (% based on # of GM units originated) (3)		55%			57%			53%			59%			50%
Mix of retail & lease contract originations (% based on # of units)
New		93%			93%			95%			94%			93%
Used		7%			6%			5%			6%			7%

 

 

---

(1)

Originations in China are part of a joint-venture in which Ally owns a minority interest

(2)

Excludes China JV receivables

(3)

Represents subvented originations inclusive of leases not subject to exclusivity agreements

 

ALLY FINANCIAL INC. INSURANCE - CONDENSED FINANCIAL STATEMENTS AND KEY STATISTICS

 

($ in millions)
	QUARTERLY TRENDS															CHANGE VS.
Income Statement	2Q 12			1Q 12			4Q 11			3Q 11			2Q 11			1Q 12			2Q 11
Insurance premiums and other income
Insurance premiums and service revenue earned	$	359	$		371	$		381	$		387	$		395	$		(12)	$		(36)
Investment income		47			82			59			44			70			(35)			(23)
Other income		25			15			12			16			18			10			7
Total insurance premiums and other income		431			468			452			447			483			(37)			(52)
Expense
Insurance losses and loss adjustment expenses		205			155			142			162			221			50			(16)
Acquisition and underwriting expenses
Compensation and benefit expense		24			25			23			19			24			(1)			-
Insurance commission expense		111			116			135			120			122			(5)			(11)
Other expense		48			48			59			35			44			-			4
Total acquisition and underwriting expense		183			189			217			174			190			(6)			(7)
Total expense		388			344			359			336			411			44			(23)
Income from cont. ops before income tax expense	$	43		$	124		$	93		$	111		$	72		$	(81)		$	(29)
Balance Sheet (Period-End)
Cash, trading and investment securities	$	5,489	$		5,587	$		5,267	$		5,494	$		5,688	$		(98)	$		(199)
Finance receivables and loans, net		5			5			5			5			5			-			-
Premiums receivable and other insurance assets		2,019			2,010			1,970			2,141			2,239			9			(220)
Other assets		724			792			794			575			601			(68)			123
Total assets	$	8,237		$	8,394		$	8,036		$	8,215		$	8,533		$	(157)		$	(296)
Key Statistics (Continuing Operations)
Written Premiums
Dealer Products & Services	$	283	$		250	$		232	$		280	$		277	$		33	$		6
International(1)		103			123			104			100			120			(21)			(17)
Total written premiums and revenue (2)	$	386	$		373	$		335	$		380	$		397	$		13	$		(11)
Loss ratio		54.4%			40.5%			36.3%			40.6%			54.5%
Underwriting expense ratio		48.8%			49.2%			55.8%			43.5%			47.3%
Combined ratio		103.2%			89.7%			92.1%			84.1%			101.7%

 

 

---

(1)

Includes written premiums held at Corporate

(2)

Excludes discontinued operations

 

ALLY FINANCIAL INC. MORTGAGE OPERATIONS (1) - CONDENSED FINANCIAL STATEMENTS AND KEY STATISTICS

 

($ in millions)
	QUARTERLY TRENDS															CHANGE VS.
Income Statement	2Q 12			1Q 12			4Q 11			3Q 11			2Q 11			1Q 12			2Q 11
Net financing revenue
Total financing revenue and other interest income	$	181	$		259	$		269		$	289	$		291	$		(78)	$		(110)
Interest expense		148			202			214			214			222			(54)			(74)
Net financing revenue		33			57			55			75			69			(24)			(36)
Servicing fees		186			280			291			296			300			(94)			(114)
Servicing asset valuation and hedge activities, net		(73)			9			(126)			(471)			(105)			(82)			32
Total servicing income, net		113			289			165			(175)			195			(176)			(82)
Gain on mortgage loans, net		128			131			150			57			97			(3)			31
Other income, net of losses		127			127			69			19			30			-			97
Total other revenue		368			547			384			(99)			322			(179)			46
Total net revenue		401			604			439			(24)			391			(203)			10
Provision for loan losses		21			27			35			31			37			(6)			(16)
Noninterest expense
Compensation and benefits expense		75			124			112			87			100			(49)			(25)
Representation and warranty expense		16			19			44			69			184			(3)			(169)
Other operating expense		265			243			506			198			195			22			71
Total noninterest expense		356			386			662			354			479			(30)			(123)
Income (loss) from cont. ops before income tax expense	$	24		$	191		$	(258)		$	(409)		$	(125)		$	(167)		$	149
Balance Sheet (Period-End)
Cash, trading and investment securities	$	-	$		685	$		652		$	673	$		730	$		(685)	$		(730)
Loans held-for-sale		1,377			6,047			8,112			8,254			7,168			(4,670)			(5,791)
Finance receivables and loans, net:
Consumer loans		9,823			10,790			10,828			11,109			11,358			(967)			(1,535)
Commercial loans		1,146			1,418			1,925			1,642			1,254			(272)			(108)
Allowance for loan losses		(473)			(518)			(532)			(542)			(566)			45			93
Total finance receivables and loans, net	$	10,496	$		11,690	$		12,221		$	12,209	$		12,046	$		(1,194)	$		(1,550)
Mortgage servicing rights		1,105			2,595			2,519			2,663			3,701			(1,490)			(2,596)
Other assets		4,168			9,062			10,402			11,703			7,678			(4,894)			(3,510)
Total assets	$	17,146		$	30,079		$	33,906		$	35,502		$	31,323		$	(12,933)		$	(14,177)
Key Statistics ($ in billions)
Mortgage loan production
Prime conforming	$	4.9	$		6.6	$		13.7		$	13.3	$		10.6	$		(1.7)	$		(5.7)
Prime non-conforming		0.6			0.5			0.5			0.5			0.3			0.1			0.3
Government		0.5			1.5			2.3			1.8			1.5			(1.0)			(1.0)
Total mortgage loan production	$	5.9	$		8.6	$		16.5		$	15.6	$		12.3	$		(2.6)	$		(6.4)

 

 

---

(1)

Mortgage Operations includes ResCap results prior to the May 14, 2012 deconsolidation

 

ALLY FINANCIAL INC. CORPORATE AND OTHER - CONDENSED FINANCIAL STATEMENTS

 

($ in millions)
	QUARTERLY TRENDS															CHANGE VS.
Income Statement	2Q 12			1Q 12			4Q 11			3Q 11			2Q 11			1Q 12			2Q 11
Net financing loss
Total financing revenue and other interest income	$	43	$		38	$		24		$	26	$		41	$		5	$		2
Interest expense
Core original issue discount amortization		96			108			137			225			254			(11)			(158)
Other interest expense		229			277			222			212			213			(49)			16
Total interest expense		325			385			359			437			467			(60)			(142)
Net financing loss		(282)			(347)			(335)			(411)			(426)			65			144
Other revenue
Loss on extinguishment of debt (1)		-			-			-			-			(25)			-			25
Other gain on investments, net		36			24			6			48			40			12			(4)
Other income, net of losses		(57)			23			12			(8)			92			(80)			(149)
Total other (expense) revenue		(21)			47			18			40			107			(68)			(128)
Total net expense		(303)			(300)			(317)			(371)			(319)			(3)			16
Provision for loan losses		(23)			(12)			(19)			(4)			(49)			(11)			26
Noninterest expense
Compensation and benefits expense		139			163			152			51			136			(24)			3
Other operating expense (2)		1,200			(15)			1			30			(22)			1,215			1,222
Total noninterest expense		1,339			148			153			81			114			1,191			1,225
Loss from cont. ops before income tax (benefit) expense	$	(1,619)		$	(436)		$	(451)		$	(448)		$	(384)		$	(1,183)		$	(1,235)
Balance Sheet (Period-End)
Cash, trading and investment securities	$	23,981	$		22,623	$		22,847		$	24,544	$		24,563	$		1,358	$		(582)
Loans held-for-sale		-			-			20			27			-			-			-
Finance receivables and loans, net
Consumer loans		-			-			-			1			-			-			-
Commercial loans (3)		2,379			1,167			1,152			1,108			1,186			1,212			1,193
Allowance for loan losses		(48)			(52)			(53)			(67)			(69)			4			21
Total finance receivables and loans, net		2,331			1,115			1,099			1,042			1,117			1,216			1,214
Other assets		6,471			5,191			5,675			6,780			5,828			1,280			643
Total assets	$	32,783		$	28,929		$	29,641		$	32,393		$	31,508		$	3,854		$	1,275
OID Amortization Schedule	2012			2013			2014			2015 and After
Remaining Core OID Amortization (as of 6/30/2012)	$	132	$		249	$		176		Avg / Yr = $52

 

 

---

(1)

Includes $20 million of accelerated OID amortization in 2Q11

(2)

Includes a reduction of $173 million and $386 million, for the three months and six months ended June 30, 2012, and $208 million and $408 million for the three months and six months ended June 30, 2011, related to the allocation of corporate overhead expenses to other segments. The receiving segments record their allocation of corporate overhead expense within other operating expense. 2Q12 other operating expense includes the $1,192 million charge recorded for ResCap actions

(3)

Includes Intercompany

 

ALLY FINANCIAL INC. CREDIT RELATED INFORMATION

 

($ in millions)
	QUARTERLY TRENDS															CHANGE VS.
Asset Quality - Consolidated (1)	2Q 12			1Q 12			4Q 11			3Q 11			2Q 11			1Q 12			2Q 11
Ending loan balance	$	119,913	$		118,986	$		113,920	$		107,871	$		109,779	$		927	$		10,134
30+ Accruing DPD	$	932	$		802	$		1,038	$		972	$		979	$		130	$		(48)
30+ Accruing DPD %		0.8%			0.7%			0.9%			0.9%			0.9%
Non-performing loans (NPLs)	$	995	$		845	$		906	$		977	$		1,191	$		150	$		(196)
Net charge-offs (NCOs)	$	88	$		107	$		120	$		123	$		121	$		(19)	$		(33)
Net charge-off rate (2)		0.29%			0.37%			0.43%			0.45%			0.45%
Provision for loan losses	$	29	$		140	$		6	$		50	$		50	$		(111)	$		(21)
Allowance for loan losses (ALLL)	$	1,427	$		1,546	$		1,503	$		1,621	$		1,739	$		(119)	$		(312)
ALLL as % of Loans (3)		1.2%			1.3%			1.3%			1.5%			1.6%
ALLL as % of NPLs (3)		143.4%			182.9%			166.0%			165.8%			146.0%
ALLL as % of NCOs (3)		405.2%			361.2%			313.8%			329.3%			358.0%

 

 

---

(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 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

 

ALLY FINANCIAL INC. CREDIT RELATED INFORMATION, CONTINUED

 

($ in millions)
North American Auto	QUARTERLY TRENDS															CHANGE VS.
Consumer	2Q 12			1Q 12			4Q 11			3Q 11			2Q 11			1Q 12			2Q 11
Allowance for loan losses	$	611	$		654	$		628	$		724	$		763	$		(43)	$		(151)
Total consumer loans	$	58,310	$		57,075	$		54,076	$		50,507	$		48,925	$		1,236	$		9,385
Coverage ratio		1.0%			1.1%			1.2%			1.4%			1.6%
Commercial
Allowance for loan losses	$	102	$		102	$		108	$		114	$		134	$		(0)	$		(33)
Total commercial loans	$	34,056	$		34,446	$		32,475	$		30,395	$		32,994	$		(390)	$		1,062
Coverage ratio		0.3%			0.3%			0.3%			0.4%			0.4%
International Auto
Consumer
Allowance for loan losses	$	167	$		178	$		138	$		127	$		148	$		(11)	$		19
Total consumer loans	$	9,826	$		10,139	$		9,383	$		9,198	$		9,810	$		(313)	$		16
Coverage ratio		1.7%			1.8%			1.5%			1.4%			1.5%
Commercial
Allowance for loan losses	$	26	$		42	$		44	$		47	$		58	$		(15)	$		(32)
Total commercial loans	$	4,282	$		4,656	$		4,795	$		4,318	$		4,717	$		(375)	$		(436)
Coverage ratio		0.6%			0.9%			0.9%			1.1%			1.2%
Mortgage HFI (1)
Consumer
Allowance for loan losses	$	472	$		501	$		516	$		532	$		558	$		(29)	$		(85)
Total consumer loans	$	9,823	$		9,958	$		9,993	$		10,269	$		10,412	$		(135)	$		(589)
Coverage ratio		4.8%			5.0%			5.2%			5.2%			5.4%
Non-performing loans	$	411	$		298	$		339	$		365	$		398	$		113	$		13
Allowance as a % of NPLs		114.8%			168.2%			152.1%			145.7%			140.0%
Commercial
Allowance for loan losses	$	1	$		17	$		16	$		10	$		8	$		(17)	$		(8)
Total commercial loans	$	1,146	$		1,418	$		1,925	$		1,642	$		1,254	$		(272)	$		(107)
Coverage ratio		0.1%			1.2%			0.8%			0.6%			0.7%
Non-performing loans	$	0	$		41	$		13	$		48	$		67	$		(41)	$		(67)
Allowance as a % of NPLs		NM			41.8%			126.1%			21.0%			12.3%

 

 

---

(1)

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. Includes ResCap results prior to the May 14, 2012 deconsolidation

 

ALLY FINANCIAL INC. CREDIT RELATED INFORMATION, CONTINUED

 

($ in millions)
	QUARTERLY TRENDS															CHANGE VS.
Global Auto Delinquencies - Managed Retail Contract Amount (1)	2Q 12			1Q 12			4Q 11			3Q 11			2Q 11			1Q 12			2Q 11
Nuvell delinquent contract $	$	77		$	68		$	131		$	126		$	149		$	9		$	(71)
Delinquent contract $ (excluding Nuvell)	$	768		$	637		$	806		$	735		$	722		$	131		$	46
% of retail contract $ outstanding		1.23%			1.04%			1.47%			1.43%			1.48%
% of retail contract $ outstanding (excluding Nuvell)		1.13%			0.95%			1.29%			1.25%			1.27%
Global Auto Annualized Credit Losses - Managed Retail Contract Amount
Nuvell credit losses	$	5		$	10		$	16		$	17		$	14		$	(5)		$	(9)
Credit losses (excluding Nuvell)	$	66		$	63		$	63		$	55		$	46		$	2		$	20
% of avg. managed assets		0.41%			0.44%			0.51%			0.48%			0.41%
% of avg. managed assets (excluding Nuvell)		0.39%			0.39%			0.41%			0.37%			0.33%
North American Auto
Annualized consumer net charge-offs as a % of on-balance sheet assets		0.31%			0.41%			0.51%			0.45%			0.39%
Managed retail contracts over 30 days delinquent		1.21%			0.99%			1.51%			1.41%			1.45%
Repossessions as a % of average number of managed retail contracts outstanding		1.03%			1.30%			1.42%			1.54%			1.36%
Severity of loss per unit sold - Retail
New	$	7,156		$	7,374		$	7,957		$	7,584		$	7,631		$	(218)		$	(474)
Used	$	5,548		$	5,752		$	6,129		$	6,144		$	6,260		$	(204)		$	(712)
Lease residual value (sales proceeds as % of ALG)		138%			137%			128%			128%			127%
International Auto
Annualized consumer net charge-offs as a % of on-balance sheet assets		1.01%			0.66%			0.46%			0.60%			0.50%
Managed retail contracts over 30 days delinquent		1.35%			1.34%			1.24%			1.57%			1.64%
Repossessions as a % of average number of managed retail contracts outstanding		0.49%			0.49%			0.48%			0.51%			0.64%

 

 

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(1)

$ Amount of accruing contracts greater than 30 days past due

 

ALLY FINANCIAL INC. CAPITAL

 

($ in billions)
	QUARTERLY TRENDS															CHANGE VS.
Cost of Funds	2Q 12			1Q 12			4Q 11			3Q 11			2Q 11			1Q 12			2Q 11
Ally Financial's worldwide cost of borrowing (incl. OID)		3.6%			4.0%			3.9%			4.2%			4.6%
Ally Financial's worldwide cost of borrowing (excl. OID)		3.2%			3.6%			3.5%			3.6%			3.8%
Capital
Risk-weighted assets	$	147.9	$		158.5	$		154.3		$	149.7	$		151.0	$		(10.6)	$		(3.1)
Tier 1 capital ratio		13.7%			13.5%			13.7%			14.3%			14.6%
Tier 1 common capital ratio		7.3%			7.5%			7.6%			8.0%			8.4%
Total risk-based capital ratio		14.7%			14.5%			14.7%			15.5%			15.9%
Tangible common equity / Tangible assets		6.1%			6.6%			6.5%			6.8%			7.3%
Tangible common equity / Risk-weighted assets		7.4%			7.7%			7.7%			8.2%			8.6%
Shareholders’ equity	$	18.4	$		19.7	$		19.4		$	19.7	$		20.4	$		(1.3)	$		(2.0)
less: Goodwill and certain other intangibles		(0.5)			(0.5)			(0.5)			(0.5)			(0.5)			-			-
Unrealized (gains) losses and other adjustments		(0.2)			(0.3)			(0.3)			(0.3)			(0.3)			0.1			0.1
Trust preferred securities		2.5			2.5			2.5			2.5			2.5			-			-
Tier 1 capital	$	20.2		$	21.4		$	21.2		$	21.5		$	22.1		$	(1.2)		$	(1.9)
Tier 1 capital	$	20.2	$		21.4	$		21.2		$	21.5	$		22.1	$		(1.2)	$		(1.9)
less: Preferred equity		(6.9)			(6.9)			(6.9)			(6.9)			(6.9)			-			-
Trust preferred securities		(2.5)			(2.5)			(2.5)			(2.5)			(2.5)			-			-
Tier 1 common capital (1)	$	10.8		$	11.9		$	11.7		$	12.0		$	12.6		$	(1.1)		$	(1.8)
Tier 1 capital	$	20.2	$		21.4	$		21.2		$	21.5	$		22.1	$		(1.2)	$		(1.9)
add: Qualifying subordinated debt and redeemable preferred stock		0.2			0.2			0.2			0.2			0.2			-			-
Allowance for loan and lease losses includible in Tier 2 capital and other adjustments		1.3			1.4			1.4			1.5			1.6			(0.1)			(0.3)
Total risk-based capital	$	21.7		$	23.0		$	22.8		$	23.2		$	24.0		$	(1.3)		$	(2.3)
Total shareholders' equity	$	18.4	$		19.7	$		19.4		$	19.7	$		20.4	$		(1.3)	$		(2.0)
less: Preferred equity		(6.9)			(6.9)			(6.9)			(6.9)			(6.9)			-			-
Goodwill and intangible assets		(0.5)			(0.5)			(0.5)			(0.5)			(0.5)			-			-
Tangible common equity (2)	$	10.9		$	12.2		$	11.9		$	12.3		$	13.0		$	(1.3)		$	(2.1)
Total assets	$	178.6	$		186.4	$		184.1		$	182.0	$		178.9	$		(7.8)	$		(0.3)
less: Goodwill and intangible assets		(0.5)			(0.5)			(0.5)			(0.5)			(0.5)			-			-
Tangible assets	$	178.1		$	185.9		$	183.6		$	181.4		$	178.4		$	(7.8)		$	(0.3)

 

 

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Note: Numbers may not foot due to rounding

(1)

We define Tier 1 common as Tier 1 capital less noncommon elements including qualified perpetual preferred stock qualifying minority interest in subsidiaries, and qualifying trust preferred securities. Ally considers various measures when evaluating capital utilization and adequacy, including the Tier 1 common equity ratio, in addition to capital ratios defined by banking regulators. This calculation is intended to complement the capital ratios defined by banking regulators for both absolute and comparative purposes. Because GAAP does not include capital ratio measures, Ally believes there are no comparable GAAP financial measures to these ratios. Tier 1 common equity is not formally defined by GAAP or codified in the federal banking regulations and, therefore, is considered to be a non-GAAP financial measure. Ally believes the Tier 1 common equity ratio is important because we believe analysts and banking regulators may assess our capital adequacy using this ratio. Additionally, presentation of this measure allows readers to compare certain aspects of our capital adequacy on the same basis to other companies in the industry.

(2)

We define tangible common equity as common stockholders’ equity less goodwill and identifiable intangible assets (other than mortgage servicing rights), net of deferred tax liabilities. Ally considers various measures when evaluating capital adequacy, including tangible common equity. Tangible common equity is not formally defined by GAAP or codified in the federal banking regulations and, therefore, is considered to be a non-GAAP financial measure. Ally believes that tangible common equity is important because we believe analysts and banking regulators may assess our capital adequacy using this measure. Additionally, presentation of this measure allows readers to compare certain aspects of our capital adequacy on the same basis to other companies in the industry.

 

ALLY FINANCIAL INC. LIQUIDITY

 

($ in billions)
	2Q 12						1Q 12							CHANGE
Available Liquidity	Parent (1)			Ally Bank			Parent (1)				Ally Bank			Parent (1)			Ally Bank
Cash and cash equivalents	$	11.4	$		3.4	$		6.8	$			4.4	$		4.6	$		(1.0)
Highly liquid securities (2)		-			5.0			0.2				5.4			(0.2)			(0.4)
Current committed unused capacity (3)		10.0			7.5			12.0				6.7			(2.0)			0.8
Subtotal	$	21.4	$		15.9	$		19.0	$			16.5	$		2.4	$		(0.6)
Ally Bank intercompany loan (4)		2.4			(2.4)			3.0				(3.0)			(0.6)			0.6
Total Current Available Liquidity	$	23.8	$		13.5	$		22.0	$			13.5	$		1.8	$		0.0
Forward commited unused capacity (5)		2.0			-			2.5				-			(0.5)			-
Total Available Liquidity	$	25.8		$	13.5		$	24.5			$	13.5		$	1.3		$	0.0
																	2017 and
Unsecured Long-Term Debt Maturity Profile	2012			2013			2014				2015			2016			After
Consolidated remaining maturities (6)	$	9.9	$		2.3	$		5.8	$			4.5	$		1.5	$		20.4

 

 

---

(1)

Parent defined as Ally Consolidated less Ally Bank, ResCap (deconsolidated as of 05/14/12) and Insurance (not shown)

(2)

Includes UST, Agency debt and Agency MBS

(3)

Includes equal allocation of shared unused capacity totaling $3.8 billion in 2Q 2012 and $3.8 billion in 1Q 2012 which can be used by Ally Bank or the Parent (including a Mexican subsidiary)

(4)

To optimize use of cash and secured facility capacity between entities, Ally Financial lends cash to Ally Bank from time to time under an intercompany loan agreement. Amounts outstanding on this loan are repayable to Ally Financial at any time, subject to 5 days notice

(5)

Represents capacity from certain foward purchase commitments and committed secured facilites that are generally reliant upon the origination of future automotive receivables over the next 12 months

(6)

Excludes OID amortization

 

ALLY FINANCIAL INC. DEPOSITS

 

($ in millions)
	QUARTERLY TRENDS															CHANGE VS.
Key Statistics	2Q 12			1Q 12			4Q 11			3Q 11			2Q 11			1Q 12			2Q 11
Average retail CD maturity (months)		28.8			28.2			27.2			26.1			25.3			0.6			3.5
Average retail deposit rate		1.41%			1.46%			1.52%			1.57%			1.58%
CD balances up for renewal	$	3,176	$		2,702	$		1,896	$		1,538	$		2,239	$		474	$		937
CD balances retained (1)		2,858			2,457			1,746			1,403			1,972			401			886
Retention rate		90%			91%			92%			91%			88%
Ally Financial Deposits Levels
Ally Bank retail	$	30,404	$		29,323	$		27,685	$		26,254	$		24,562	$		1,081	$		5,842
Ally Bank brokered		9,905			9,884			9,890			9,911			9,903			21			2
ResMor		3,491			3,519			3,367			3,327			3,359			(28)			132
Other		4,191			4,480			4,108			4,834			4,438			(289)			(247)
Total deposits	$	47,991		$	47,206		$	45,050		$	44,326		$	42,262		$	785		$	5,729

 

 

---

(1)

Retention includes balances retained in any Ally Bank product

 

ALLY FINANCIAL INC. ALLY BANK CONSUMER MORTGAGE HFI PORTFOLIO (PERIOD-END)

 

($ in billions)

 

	HISTORICAL QUARTERLY TRENDS
Loan Value	2Q 12			1Q 12			4Q 11			3Q 11			2Q 11
Gross carry value	$	9.8	$		9.7	$		9.7	$		9.8	$		9.9
Net carry value	$	9.3	$		9.3	$		9.3	$		9.3	$		9.4
Estimated Pool Characteristics
% Prime jumbo (> 1/1/2009)		34.5%			31.2%			29.1%			27.0%			24.9%
% Second lien		12.8%			13.4%			13.9%			14.5%			14.9%
% Interest only		25.9%			29.1%			30.3%			31.5%			33.2%
% 30+ Day delinquent		3.2%			3.3%			3.3%			3.3%			3.4%
% Low/No documentation		14.9%			15.6%			16.0%			16.5%			17.0%
% Non-primary residence		3.9%			3.9%			4.0%			4.0%			4.1%
Refreshed FICO		730			728			730			730			730
Wtd. Avg. LTV/CLTV (1)		90.4%			91.8%			90.7%			91.2%			91.9%
Higher risk geographies (2)		39.2%			38.6%			38.2%			38.2%			38.4%

 

 

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(1)

Updated home values derived using a combination of appraisals, BPOs, AVMs and MSA level house price indices

(2)

Includes CA, FL, MI and AZ

 

ALLY FINANCIAL INC. MORTGAGE REPURCHASE OUTSTANDING CLAIMS

 

($ in millions)
Mortgage Repurchase Outstanding Claims (1) (2) (3)	2Q 11			3Q 11			4Q 11			1Q 12			2Q 12
Beginning balance	$	73	$		67	$		68	$		46	$		55
New claims (4)		105			97			66			87			107
Rescinded claims		(60)			(58)			(31)			(40)			(31)
Paid claims		(52)			(27)			(58)			(39)			(49)
Adjustments		1			(11)			1			(0)			1
Ending balance	$	67	$		68	$		46	$		55	$		82

 

 

---

(1)

Includes demands that Ally has requested to be rescinded but which have not been agreed to by the investor

(2)

Represents original UPB of loans and make-whole amounts related to unresolved claims and does not represent expected losses

(3)

Presented on a pro-forma basis to reflect claims against Ally Bank serviced loans that were previously the economic obligation of Rescap due to swap arrangement between ResCap and Ally Bank. Ally Bank did not begin recognizing the obligation for paid claims until swap agreement was terminated on May 1, 2012. Actual 2Q original UPB for paid claims by Ally Bank was $28 million

(4)

The GSEs implemented a process change in 1Q12 whereby a greater percentage of information requests are submitted as repurchase claims

 

ALLY FINANCIAL INC. OWNERSHIP

 

($ in millions)

 

Common Ownership as of 2Q 12

 

 

 

Other Tier 1 Capital as of 2Q 12

		Liquidation			Book
Series	Owner	Preference			Value
Trust Preferred Securities (1)	Investors	$	2,667	$	2,543
Series F-2 Mandatory Convertible Preferred (1)	U.S. Treasury	$	5,938	$	5,685
Series G Perpetual Preferred	Investors	$	2,577	$	234
Series A Perpetual Preferred	Investors	$	1,022	$	1,021

 

(1)

Includes exercised warrants