Exhibit 99.3

 

 

 

SECOND QUARTER 2015

 

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 Annual Reports 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,” “explore,” “positions,” “intend,” “evaluate,” “pursue,” “seek,” “may,” “would, ” “could, ” “should, ” “believe, ” “potential, ” “continue,” or the negative of these words, 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, and Ally and Chrysler, and our ability to further diversify our business; our ability to maintain relationships with automotive dealers; the significant regulation and restrictions that we are subject to as a bank holding company and financial holding company; 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 our credit ratings; 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, whether as a result of new information, future events or other such factors that affect the subject of these statements, except where expressly required by law. 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 operations. The specific products include retail installment sales contracts, 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
Automotive Finance	9-10
Insurance	11
Mortgage	12
Corporate and Other	13
Credit Related Information	14-15
Supplemental Detail
Capital	16
Liquidity	17
Deposits	18
Ally Bank Consumer Mortgage HFI Portfolio	19
Discontinued Operations	20
Per Share-Related Information	21
Supplemental Financial Data	22

 

  

ALLY FINANCIAL INC. CONSOLIDATED FINANCIAL HIGHLIGHTS

 

($ in millions, shares in thousands)

 

		QUARTERLY TRENDS																				CHANGE VS.
Selected Income Statement Data		2Q 15				1Q 15				4Q 14				3Q 14				2Q 14				1Q 15				2Q 14
Net financing revenue (ex. OID)		$	927			$	860			$	835			$	936			$	912			$	67			$	15
Total other revenue (ex. OID)			218				250				221				375				372				(32	)			(154	)
Total net revenue (ex. OID)			1,145				1,110				1,056				1,311				1,284				35				(140	)
Provision for loan losses			140				116				155				102				63				24				77
Controllable expenses (1)			452				469				479				469				455				(17	)			(3	)
Other noninterest expenses			272				226				193				273				366				46				(94	)
Core pre-tax income (2)		$	281			$	299			$	229			$	467			$	400			$	(18	)		$	(120	)
Core OID amortization expense (3)			18				17				42				47				53				1				(36	)
Income tax (benefit) expense			94				103				36				127				64				(9	)			30
Income (loss) from discontinued operations			13				397				26				130				40				(384	)			(27	)
Net income		$	182			$	576			$	177			$	423			$	323			$	(394	)		$	(141	)
Preferred stock dividends			1,251				67				68				67				65				1,184				1,186
Net income (loss) available to common shareholders		$	(1,069	)		$	509			$	109			$	356			$	258			$	(1,578	)		$	(1,327	)
Selected Balance Sheet Data (Period-End)
Total assets		$	156,472			$	153,524			$	151,828			$	149,195			$	149,937			$	2,948			$	6,535
Consumer loans			69,998				65,100				64,044				66,270				65,961				4,898				4,037
Commercial loans			35,175				34,757				35,904				33,248				34,817				418				358
Assets of discontinued operations held-for-sale			-				-				634				603				574				-				(574	)
Allowance for loan losses			(974	)			(933	)			(977	)			(1,113	)			(1,171	)			(41	)			197
Deposits			61,947				60,875				58,222				56,851				56,091				1,072				5,856
Common equity (4)			13,482				14,679				14,144				13,935				13,623				(1,197	)			(141	)
Total equity			14,295				15,934				15,399				15,190				14,878				(1,639	)			(583	)
Common Share Count
Weighted average basic (5)			482,847				482,248				481,861				481,611				481,350				599				1,497
Weighted average diluted (5)(6)			483,687				482,782				483,091				482,506				482,343				905				1,344
Issued shares outstanding (period-end)			481,750				481,503				480,095				479,818				479,773				247				1,977
Per Common Share Data
Earnings per share (basic) (5)		$	(2.22	)		$	1.06			$	0.23			$	0.74			$	0.54			$	(3.28	)		$	(2.76	)
Earnings per share (diluted) (5)(6)			(2.22	)			1.06				0.23				0.74				0.54				(3.28	)			(2.76	)
Adjusted earnings per share			0.46				0.52				0.40				0.53				0.42				(0.05	)			0.04
Book value per share			28.0				30.5				29.5				29.0				28.4				(2.5	)			(0.4	)
Tangible book value per share			27.9				30.4				29.4				29.0				28.3				(2.5	)			(0.4	)
Adjusted tangible book value per share (7)			23.7				23.7				22.7				22.2				21.5				(0.0	)			2.2
Select Financial Ratios
Net interest margin (8)			2.6	%			2.5	%			2.4	%			2.7	%			2.6	%
Cost of funds (incl. OID)			1.8	%			1.9	%			2.0	%			2.0	%			2.3	%
Cost of funds (excl. OID)			1.8	%			1.8	%			1.9	%			1.9	%			2.1	%
Adjusted efficiency ratio (9)			46	%			48	%			50	%			49	%			49	%
Return on average assets (10)			0.5	%			1.5	%			0.5	%			1.1	%			0.9	%
Return on average total equity (10)			4.8	%			14.9	%			4.6	%			11.2	%			8.8	%
Return on average tangible common equity (10)			n/m				14.2	%			3.1	%			10.3	%			7.7	%
Core ROTCE (9)(10)			8.2	%			9.1	%			7.1	%			9.1	%			8.4	%
Capital Ratios (11)
Common Equity Tier 1 (CET1) capital ratio (Tier 1 common prior to 1Q15) (12)			9.8	%			10.9	%			9.6	%			9.7	%			9.4	%
Tier 1 capital ratio			11.7	%			13.2	%			12.5	%			12.7	%			12.3	%
Total capital ratio			12.6	%			14.1	%			13.2	%			13.5	%			13.2	%

(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 income tax expense and primarily bond exchange original issue discount ("OID") amortization expense

 

(3) Core Original Issuance Discount (OID) is primarily related to bond exchange OID; excludes IO and post 2009 issuances

 

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

 

(5) Includes shares related to share-based compensation that have vested but not yet been issued as of June 30, 2015, March 31, 2015, December 31, 2014, September 30,2014 and June 30, 2014

 

(6) Due to antidilutive effect of the net loss from continuing operations attributable to common shareholders for the three months ended June 30, 2015, basic weighted-average common shares outstanding were used to calculate basic and diluted earnings per share

 

(7) For more details refer to page 21

 

(8) Continuing operations only. Excludes OID amortization expense

 

(9) For more details refer to page 22

 

(10) Return metrics are annualized

 

(11) Basel III rules became effective on January 1, 2015, subject to transition provisions primarily related to deductions and adjustments impacting CET1 capital and Tier 1 capital; all data prior to that date is based on Basel I rules

 

(12) Common Equity Tier 1 capital ratio is a non-GAAP measurement. Refer to page 16 for additional details      

 

  

ALLY FINANCIAL INC. CONSOLIDATED INCOME STATEMENT

 

($ in millions)

 

		QUARTERLY TRENDS																				CHANGE VS.
		2Q 15				1Q 15				4Q 14				3Q 14				2Q 14				1Q 15				2Q 14
Financing revenue and other interest income
Interest and fees on finance receivables and loans (1)		$	1,118			$	1,074			$	1,112			$	1,114			$	1,124			$	44			$	(6	)
Interest on loans held-for-sale			14				24				-				-				1				(10	)			13
Interest and dividends on available-for-sale investment securities			93				88				85				94				93				5				-
Interest-bearing cash			2				2				2				2				1				-				1
Operating leases			860				896				905				899				884				(36	)			(24	)
Total financing revenue and other interest income			2,087				2,084				2,104				2,109				2,103				3				(16	)
Interest expense
Interest on deposits			177				172				169				166				166				5				11
Interest on short-term borrowings			12				11				12				12				13				1				(1	)
Interest on long-term debt			419				429				491				493				549				(10	)			(130	)
Total interest expense			608				612				672				671				728				(4	)			(120	)
Depreciation expense on operating lease assets			563				622				633				549				509				(59	)			54
Net financing revenue			916				850				799				889				866				66				50
Other revenue
Servicing fees			10				10				9				6				7				-				3
Insurance premiums and service revenue earned			237				233				243				246				249				4				(12	)
Gain on mortgage and automotive loans, net			1				46				1				-				6				(45	)			(5	)
Loss on extinguishment of debt			(156	)			(198	)			(156	)			-				(7	)			42				(149	)
Other gain on investments, net			45				55				52				45				41				(10	)			4
Other income, net of losses			74				97				66				78				69				(23	)			5
Total other revenue			211				243				215				375				365				(32	)			(154	)
Total net revenue			1,127				1,093				1,014				1,264				1,231				34				(104	)
Provision for loan losses			140				116				155				102				63				24				77
Noninterest expense
Compensation and benefits expense			236				255				237				241				215				(19	)			21
Insurance losses and loss adjustment expenses			122				56				57				97				188				66				(66	)
Other operating expenses			366				384				378				404				418				(18	)			(52	)
Total noninterest expense			724				695				672				742				821				29				(97	)
Income (loss) from continuing operations before income tax expense			263				282				187				420				347				(19	)			(84	)
Income tax (benefit) expense from continuing operations			94				103				36				127				64				(9	)			30
Net income from continuing operations			169				179				151				293				283				(10	)			(114	)
Income (loss) from discontinued operations, net of tax			13				397				26				130				40				(384	)			(27	)
Net income (loss)		$	182			$	576			$	177			$	423			$	323			$	(394	)		$	(141	)

(1) Includes other interest income, net

 

  

ALLY FINANCIAL INC. CONSOLIDATED PERIOD-END BALANCE SHEET

 

($ in millions)

 

		QUARTERLY TRENDS																				CHANGE VS.
Assets		6/30/2015				3/31/2015				12/31/2014				9/30/2014				6/30/2014				3/31/2015				6/30/2014
Cash and cash equivalents
Noninterest-bearing		$	1,739			$	1,552			$	1,348			$	1,318			$	1,373			$	187			$	366
Interest-bearing			4,119				6,084				4,228				4,381				4,404				(1,965	)			(285	)
Total cash and cash equivalents			5,858				7,636				5,576				5,699				5,777				(1,778	)			81
Federal funds sold and securities purchased under resale agreements			-				50				-				-				-				(50	)			-
Investment securities			19,142				17,829				16,137				16,714				16,748				1,313				2,394
Loans held-for-sale, net			1,438				1,559				2,003				3				3				(121	)			1,435
Finance receivables and loans, net
Finance receivables and loans, net			105,173				99,857				99,948				99,518				100,778				5,316				4,395
Allowance for loan losses			(974	)			(933	)			(977	)			(1,113	)			(1,171	)			(41	)			197
Total finance receivables and loans, net			104,199				98,924				98,971				98,405				99,607				5,275				4,592
Investment in operating leases, net			17,950				19,021				19,510				19,341				18,814				(1,071	)			(864	)
Premiums receivables and other insurance assets			1,759				1,722				1,695				1,678				1,656				37				103
Other assets			6,126				6,783				7,302				6,752				6,758				(657	)			(632	)
Assets of operations held-for-sale			-				-				634				603				574				-				(574	)
Total assets		$	156,472			$	153,524			$	151,828			$	149,195			$	149,937			$	2,948			$	6,535
Liabilities
Deposit liabilities
Noninterest-bearing		$	89			$	79			$	64			$	73			$	75			$	10			$	14
Interest-bearing			61,858				60,796				58,158				56,778				56,016				1,062				5,842
Total deposit liabilities			61,947				60,875				58,222				56,851				56,091				1,072				5,856
Short-term borrowings			10,013				6,447				7,062				5,255				6,369				3,566				3,644
Long-term debt			65,852				65,760				66,558				67,299				67,913				92				(2,061	)
Interest payable			418				440				477				542				528				(22	)			(110	)
Unearned insurance premiums and service revenue			2,417				2,374				2,375				2,369				2,349				43				68
Accrued expense and other liabilities			1,530				1,694				1,735				1,689				1,809				(164	)			(279	)
Total liabilities		$	142,177			$	137,590			$	136,429			$	134,005			$	135,059			$	4,587			$	7,118
Equity
Common stock and paid-in capital		$	21,053			$	21,032			$	21,038			$	21,022			$	21,011			$	21			$	42
Preferred stock			813				1,255				1,255				1,255				1,255				(442	)			(442	)
Accumulated deficit			(7,388	)			(6,318	)			(6,828	)			(6,937	)			(7,293	)			(1,070	)			(95	)
Accumulated other comprehensive (loss) income			(183	)			(36	)			(66	)			(150	)			(95	)			(147	)			(88	)
Total equity			14,295				15,934				15,399				15,190				14,878				(1,639	)			(583	)
Total liabilities and equity		$	156,472			$	153,524			$	151,828			$	149,195			$	149,937			$	2,948			$	6,535

 

  

ALLY FINANCIAL INC. CONSOLIDATED AVERAGE BALANCE SHEET (1)

 

($ in millions)

 

		QUARTERLY TRENDS																				CHANGE VS.
Assets		6/30/2015				3/31/2015				12/31/2014				9/30/2014				6/30/2014				3/31/2015				6/30/2014
Interest-bearing cash and cash equivalents		$	4,013			$	4,402			$	4,293			$	3,867			$	3,863			$	(389	)		$	150
Federal funds sold and securities purchased under resale agreements			1				7				-				-				-				(6	)			1
Investment securities			17,078				15,904				15,439				16,182				15,578				1,174				1,500
Loans held-for-sale, net			1,493				1,947				25				3				26				(454	)			1,467
Total finance receivables and loans, net (2)			101,962				98,843				101,272				100,089				100,159				3,119				1,803
Investment in operating leases, net			18,520				19,405				19,479				19,114				18,544				(885	)			(24	)
Total interest earning assets			143,067				140,508				140,508				139,255				138,170				2,559				4,897
Noninterest-bearing cash and cash equivalents			1,337				1,825				1,757				1,688				1,550				(488	)			(213	)
Other assets (3)			9,670				9,793				10,078				10,323				11,306				(123	)			(1,636	)
Allowance for loan losses			(953	)			(969	)			(1,113	)			(1,174	)			(1,201	)			16				248
Total assets		$	153,121			$	151,157			$	151,230			$	150,092			$	149,825			$	1,964			$	3,296
Liabilities
Interest-bearing deposit liabilities		$	61,242			$	59,391			$	57,332			$	56,301			$	55,556			$	1,851			$	5,686
Short-term borrowings			6,057				6,280				6,258				6,187				6,149				(223	)			(92	)
Long-term debt (4)			66,551				65,168				67,884				67,687				67,727				1,383				(1,176	)
Total interest-bearing liabilities (4)			133,850				130,839				131,474				130,175				129,432				3,011				4,418
Noninterest-bearing deposit liabilities			81				73				68				75				70				8				11
Other liabilities (3)			4,538				4,548				4,432				4,856				5,661				(10	)			(1,123	)
Total liabilities		$	138,469			$	135,460			$	135,974			$	135,106			$	135,163			$	3,009			$	3,306
Equity
Total equity		$	14,652			$	15,697			$	15,256			$	14,986			$	14,662			$	(1,045	)		$	(10	)
Total liabilities and equity		$	153,121			$	151,157			$	151,230			$	150,092			$	149,825			$	1,964			$	3,296

(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) Assets and liabilities of discontinued operations are classified as other assets and other liabilities, respectively, in all periods

 

(4) QTD: Average balance includes $1,334 million and $1,463 million related to original issue discount at June 2015 and June 2014, respectively

 

  

ALLY FINANCIAL INC. SEGMENT HIGHLIGHTS

 

($ in millions)

 

		QUARTERLY TRENDS																				CHANGE VS.
		2Q 15				1Q 15				4Q 14				3Q 14				2Q 14				1Q 15				2Q 14
Automotive Finance		$	401			$	331			$	310			$	415			$	461			$	70			$	(60	)
Insurance			15				78				86				60				(23	)			(63	)			38
Dealer Financial Services			416				409				396				475				438				7				(22	)
Mortgage			8				69				21				(3	)			27				(61	)			(19	)
Corporate and Other (ex. OID) (1)			(143	)			(179	)			(188	)			(5	)			(65	)			36				(79	)
Core pre-tax income (2)		$	281			$	299			$	229			$	467			$	400			$	(18	)		$	(120	)
Core OID amortization expense (3)			18				17				42				47				53				1				(36	)
Income tax expense			94				103				36				127				64				(9	)			30
Income from discontinued operations			13				397				26				130				40				(384	)			(27	)
Net income		$	182			$	576			$	177			$	423			$	323			$	(394	)		$	(141	)

(1) Corporate and Other primarily consists of Ally’s centralized treasury activities, the residual impacts of the company’s corporate funds transfer pricing and asset liability management activities, and the amortization of the discount associated with debt issuances and bond exchanges. Corporate and Other also includes the Ally Corporate Finance business, certain equity investments and reclassifications, eliminations between the reportable operating segments, and overhead previously allocated to operations that have since been sold or discontinued

 

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

 

(3) Includes accelerated OID expense of $7 million in 2Q15, $7 million in 1Q15, $6 million in 4Q14 and $7 million in 2Q14 due to debt redemption

 

  

ALLY FINANCIAL INC. AUTOMOTIVE FINANCE - CONDENSED FINANCIAL STATEMENTS

 

($ in millions)

 

		QUARTERLY TRENDS																				CHANGE VS.
Income Statement		2Q 15				1Q 15				4Q 14				3Q 14				2Q 14				1Q 15				2Q 14
Net financing revenue
Consumer		$	785			$	745			$	770			$	774			$	763			$	40			$	22
Commercial			235				238				252				246				262				(3	)			(27	)
Loans held-for-sale			14				19				-				-				-				(5	)			14
Operating leases			860				896				905				899				884				(36	)			(24	)
Other interest income			2				2				2				3				2				-				-
Total financing revenue and other interest income			1,896				1,900				1,929				1,922				1,911				(4	)			(15	)
Interest expense			483				469				529				523				518				14				(35	)
Depreciation expense on operating lease assets:
Depreciation expense on operating lease assets (ex. remarketing)			671				691				683				654				677				(20	)			(6	)
Remarketing gains			(108	)			(69	)			(50	)			(105	)			(168	)			(39	)			60
Total depreciation expense on operating lease assets			563				622				633				549				509				(59	)			54
Net financing revenue			850				809				767				850				884				41				(34	)
Other revenue
Servicing fees			10				10				9				6				7				-				3
Gain on automotive loans, net			(6	)			(15	)			4				6				-				9				(6	)
Other income			51				57				56				57				55				(6	)			(4	)
Total other revenue			55				52				69				69				62				3				(7	)
Total net revenue			905				861				836				919				946				44				(41	)
Provision for loan losses			132				127				175				109				99				5				33
Noninterest expense
Compensation and benefits			123				126				113				112				106				(3	)			17
Other operating expenses			249				277				238				283				280				(28	)			(31	)
Total noninterest expense			372				403				351				395				386				(31	)			(14	)
Income before income tax expense		$	401			$	331			$	310			$	415			$	461			$	70			$	(60	)
Memo: Net lease revenue
Operating lease revenue		$	860			$	896			$	905			$	899			$	884			$	(36	)		$	(24	)
Depreciation expense on operating lease assets (ex. remarketing)			671				691				683				654				677				(20	)			(6	)
Remarketing gains			(108	)			(69	)			(50	)			(105	)			(168	)			(39	)			60
Total depreciation expense on operating lease assets			563				622				633				549				509				(59	)			54
Net lease revenue		$	297			$	274			$	272			$	350			$	375			$	23			$	(78	)
Balance Sheet (Period-End)
Cash, trading and investment securities		$	33			$	34			$	32			$	34			$	34			$	(1	)		$	(1	)
Loans held-for-sale			1,356				1,500				1,515				-				-				(144	)			1,356
Finance receivables and loans, net:
Consumer loans			60,717				57,379				56,535				58,659				58,084				3,338				2,633
Commercial loans (1)			33,044				32,770				34,039				31,510				33,070				274				(26	)
Allowance for loan losses			(815	)			(778	)			(783	)			(783	)			(822	)			(37	)			7
Total finance receivables and loans, net			92,946				89,371				89,791				89,386				90,332				3,575				2,614
Investment in operating leases, net			17,950				19,021				19,510				19,341				18,814				(1,071	)			(864	)
Other assets			1,322				1,223				1,706				1,573				1,580				99				(258	)
Assets of operations held-for-sale			-				-				634				603				574				-				(574	)
Total assets		$	113,607			$	111,149			$	113,188			$	110,937			$	111,334			$	2,458			$	2,273

(1) Includes intercompany

 

  

ALLY FINANCIAL INC. AUTOMOTIVE FINANCE - KEY STATISTICS

 

		QUARTERLY TRENDS																				CHANGE VS.
U.S. Market		2Q 15				1Q 15				4Q 14				3Q 14				2Q 14				1Q 15				2Q 14
Light vehicle sales (SAAR - units in millions)			17.1				16.6				16.7				16.7				16.5				0.5				0.6
Light vehicle sales (quarterly - units in millions)			4.5				3.9				4.1				4.2				4.4				0.6				0.1
GM market share			18.1	%			17.4	%			17.9	%			17.7	%			18.3	%
Chrysler market share			12.7	%			12.8	%			13.1	%			12.6	%			12.4	%
U.S. Consumer Originations (1) ($ in billions)
GM new retail subvented		$	0.7			$	0.5			$	0.5			$	1.8			$	0.9			$	0.2			$	(0.2	)
GM new retail standard			2.6				2.0				1.9				1.9				1.9				0.5				0.6
Chrysler new retail subvented			0.0				0.0				0.0				0.0				-				(0.0	)			0.0
Chrysler new retail standard			1.3				1.0				0.8				1.0				1.0				0.3				0.3
New growth			1.3				1.0				0.7				0.9				0.8				0.3				0.5
Lease			1.0				1.6				2.4				3.0				3.2				(0.7	)			(2.2	)
Used			4.0				3.6				2.7				3.2				3.1				0.4				0.9
Total originations		$	10.8			$	9.8			$	9.0			$	11.8			$	10.9			$	1.0			$	(0.1	)
U.S. Consumer Penetration
GM			16.4	%			20.7	%			22.9	%			30.9	%			28.5	%
Chrysler			13.7	%			11.3	%			10.6	%			11.3	%			10.9	%
U.S. Commercial Outstandings EOP ($ in billions)
Floorplan outstandings, net		$	28.3			$	28.3			$	29.7			$	27.3			$	29.0			$	0.0			$	(0.7	)
Other dealer loans			4.7				4.5				4.3				4.2				4.0				0.2				0.7
Total Commercial outstandings		$	33.0			$	32.8			$	34.0			$	31.5			$	33.0			$	0.3			$	(0.0	)
U.S. Floorplan Penetration (2)
GM penetration			63.2	%			63.2	%			63.8	%			63.4	%			64.7	%
Chrysler penetration			44.3	%			44.5	%			44.1	%			43.8	%			44.8	%
U.S. Off-Lease Remarketing
Off-lease vehicles terminated - On-balance sheet (# in units)			64,123				65,060				70,969				79,280				85,143				(937	)			(21,020	)
Average gain per vehicle		$	1,686			$	1,067			$	705			$	1,327			$	1,978			$	619			$	(292	)
Total gains ($ in millions)		$	108			$	69			$	50			$	105			$	168			$	39			$	(60	)

(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) Penetration rates are based on the trailing four month average for the quarter

 

 

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

 

($ in millions)

 

		QUARTERLY TRENDS																				CHANGE VS.
Income Statement		2Q 15				1Q 15				4Q 14				3Q 14				2Q 14				1Q 15				2Q 14
Net financing revenue
Interest and dividends on investment securities		$	25			$	23			$	21			$	28			$	28			$	2			$	(3	)
Interest bearing cash			2				2				1				2				1				-				1
Total financing revenue and other interest revenue			27				25				22				30				29				2				(2	)
Interest expense			13				13				13				14				13				-				-
Net financing revenue			14				12				9				16				16				2				(2	)
Other revenue
Insurance premiums and service revenue earned			237				233				243				246				249				4				(12	)
Other gain/(loss) on investments, net			29				33				36				39				39				(4	)			(10	)
Other income, net of losses			2				2				1				2				2				-				-
Total other revenue			268				268				280				287				290				-				(22	)
Total net revenue			282				280				289				303				306				2				(24	)
Noninterest expense
Compensation and benefits expense			16				19				17				15				15				(3	)			1
Insurance losses and loss adjustment expenses			122				56				57				97				188				66				(66	)
Other operating expenses			129				127				129				131				126				2				3
Total noninterest expense			267				202				203				243				329				65				(62	)
Income (loss) from cont. ops before income tax expense		$	15			$	78			$	86			$	60			$	(23	)		$	(63	)		$	38
Memo: Income Statement (Underwriting View)
Insurance premiums and other income
Insurance premiums and service revenue earned		$	237			$	233			$	243			$	246			$	249			$	4			$	(12	)
Investment income			41				43				44				53				54				(2	)			(13	)
Other income			4				4				2				4				3				-				1
Total insurance premiums and other income			282				280				289				303				306				2				(24	)
Expense
Insurance losses and loss adjustment expenses			122				56				57				97				188				66				(66	)
Acquisition and underwriting expenses
Compensation and benefit expense			16				19				17				15				15				(3	)			1
Insurance commission expense			95				93				95				95				94				2				1
Other expense			34				34				34				36				32				0				2
Total acquisition and underwriting expense			145				146				146				146				141				(1	)			4
Total expense			267				202				203				243				329				65				(62	)
Income (loss) from cont. ops before income tax expense		$	15			$	78			$	86			$	60			$	(23	)		$	(63	)		$	38
Balance Sheet (Period-End)
Cash, trading and investment securities		$	5,312			$	5,327			$	5,313			$	5,296			$	5,368			$	(15	)		$	(56	)
Premiums receivable and other insurance assets			1,769				1,732				1,706				1,688				1,666				37				103
Other assets			179				183				171				194				198				(4	)			(19	)
Total assets		$	7,260			$	7,242			$	7,190			$	7,178			$	7,232			$	18			$	28
Key Statistics (Continuing Operations)
Written Premiums
Dealer Products & Services (1)		$	263			$	239			$	248			$	265			$	267			$	24			$	(4	)
Corporate			0				0				0				0				0				(0	)			0
Total written premiums and revenue (1)		$	263			$	239			$	248			$	265			$	267			$	24			$	(4	)
Loss ratio			51.2	%			23.8	%			23.1	%			39.3	%			75.1	%
Underwriting expense ratio			61.0	%			62.1	%			59.9	%			59.1	%			55.7	%
Combined ratio			112.2	%			85.9	%			83.0	%			98.4	%			130.9	%

(1) Excludes Canadian Personal Lines business, which is in runoff

 

  

ALLY FINANCIAL INC. MORTGAGE - CONDENSED FINANCIAL STATEMENTS AND KEY STATISTICS
($ in millions)

 

		QUARTERLY TRENDS																				CHANGE VS.
Income Statement		2Q 15				1Q 15				4Q 14				3Q 14				2Q 14				1Q 15				2Q 14
Net financing revenue
Total financing revenue and other interest income		$	70			$	70			$	65			$	68			$	73			$	-			$	(3	)
Interest expense			55				55				57				59				61				-				(6	)
Net financing revenue			15				15				8				9				12				-				3
Gain on mortgage loans, net			4				66				-				-				6				(62	)			(2	)
Other income, net of losses			2				2				4				-				3				-				(1	)
Total other revenue			6				68				4				-				9				(62	)			(3	)
Total net revenue			21				83				12				9				21				(62	)			-
Provision for loan losses			3				(5	)			(14	)			(7	)			(25	)			8				28
Noninterest expense
Compensation and benefits expense			2				3				2				3				2				(1	)			-
Representation and warranty expense			(9	)			-				(11	)			-				0				(9	)			(9	)
Other operating expense			17				16				14				16				17				1				(0	)
Total noninterest expense			10				19				5				19				19				(9	)			(9	)
Income (loss) from cont. ops before income tax expense		$	8			$	69			$	21			$	(3	)		$	27			$	(61	)		$	(19	)
Balance Sheet (Period-End)
Loans held-for-sale		$	46			$	42			$	452			$	3			$	3			$	4			$	43
Finance receivables and loans, net:
Consumer loans			9,212				7,653				7,474				7,595				7,847				1,559				1,365
Allowance for loan losses			(119	)			(119	)			(152	)			(283	)			(302	)			-				183
Total finance receivables and loans, net			9,093				7,534				7,322				7,312				7,545				1,559				1,548
Other assets (1)			110				118				110				87				92				(8	)			18
Total assets		$	9,249			$	7,694			$	7,884			$	7,402			$	7,640			$	1,555			$	1,609

(1) Includes derivative assets which are reflected on a gross basis on the balance sheet, assets of discontinued operations held-for-sale and other assets

 

 

ALLY FINANCIAL INC. CORPORATE AND OTHER - CONDENSED FINANCIAL STATEMENTS
($ in millions)

 

		QUARTERLY TRENDS																				CHANGE VS.
Income Statement		2Q 15				1Q 15				4Q 14				3Q 14				2Q 14				1Q 15				2Q 14
Net financing revenue
Total financing revenue and other interest income		$	94			$	89			$	88			$	89			$	90			$	5			$	4
Interest expense
Core original issue discount amortization (1)			11				10				36				47				46				1				(35	)
Other interest expense			46				65				37				28				90				(19	)			(44	)
Total interest expense			57				75				73				75				136				(18	)			(79	)
Net financing revenue			37				14				15				14				(46	)			23				83
Other revenue
Loss on extinguishment of debt			(156	)			(198	)			(156	)			-				(7	)			42				(149	)
Other gain on investments, net			16				22				16				6				2				(6	)			14
Other income, net of losses (2)			22				31				2				13				9				(9	)			13
Total other (loss) revenue			(118	)			(145	)			(138	)			19				4				27				(122	)
Total net revenue			(81	)			(131	)			(123	)			33				(42	)			50				(39	)
Provision for loan losses			5				(6	)			(6	)			-				(11	)			11				16
Noninterest expense
Compensation and benefits expense			95				107				105				111				92				(12	)			3
Other operating expense (3)			(20	)			(36	)			8				(26	)			(5	)			16				(15	)
Total noninterest expense			75				71				113				85				87				4				(12	)
Loss from cont. ops before income tax expense		$	(161	)		$	(196	)		$	(230	)		$	(52	)		$	(118	)		$	35			$	(43	)
Balance Sheet (Period-End)
Cash, trading and investment securities		$	19,655			$	20,154			$	16,368			$	17,083			$	17,123			$	(499	)		$	2,532
Loans held-for-sale			36				17				36				-				-				19				36
Finance receivables and loans, net
Consumer loans			69				68				35				16				30				1				39
Commercial loans (4)			2,131				1,987				1,865				1,738				1,747				144				384
Allowance for loan losses			(40	)			(36	)			(42	)			(47	)			(47	)			(4	)			7
Total finance receivables and loans, net			2,160				2,019				1,858				1,707				1,730				141				430
Other assets			4,505				5,249				5,304				4,888				4,878				(744	)			(373	)
Total assets		$	26,356			$	27,439			$	23,566			$	23,678			$	23,731			$	(1,083	)		$	2,625
OID Amortization Schedule (5)							2015				2016				2017 and After
Remaining Core OID Amortization (as of 6/30/2015)						$	24			$	55				Avg = $52/yr

(1) Does not include accelerated OID expense of $7 million in 2Q15, $7 million in 1Q15, $6 million in 4Q14 and $7 million in 2Q14, which is reflected in other revenue

 

(2) Includes gain/(loss) on mortgage and automotive loans

 

(3) Other operating expenses includes (i) certain unallocated expenses primarily associated with operations that have been sold or discontinued and (ii) corporate overhead allocated to the other business segments. Amounts of corporate overhead allocated were $161 million for 2Q15, $181 million for 1Q15, $167 million for 4Q14, $172 million in 3Q14, and $161 million for 2Q14. The receiving business segment records the allocation of corporate overhead expense within other operating expenses.

 

(4) Includes intercompany

 

(5) Primarily represents bond exchange OID amortization expense used for calculating core pre-tax income

 

 

ALLY FINANCIAL INC. CREDIT RELATED INFORMATION
($ in millions)

 

		QUARTERLY TRENDS																				CHANGE VS.
Asset Quality - Consolidated (1)		2Q 15				1Q 15				4Q 14				3Q 14				2Q 14				1Q 15				2Q 14
Ending loan balance		$	105,172			$	99,856			$	99,947			$	99,517			$	100,777			$	5,316			$	4,395
30+ Accruing DPD		$	1,474			$	1,157			$	1,607			$	1,452			$	1,245			$	317			$	229
30+ Accruing DPD %			1.4	%			1.2	%			1.6	%			1.5	%			1.2	%
Non-performing loans (NPLs)		$	642			$	593			$	645			$	621			$	611			$	50			$	32
Net charge-offs (NCOs)		$	100			$	150			$	170			$	149			$	85			$	(51	)		$	15
Net charge-off rate (2)			0.4	%			0.6	%			0.7	%			0.6	%			0.3	%
Provision for loan losses		$	140			$	116			$	155			$	102			$	63			$	24			$	77
Allowance for loan losses (ALLL)		$	974			$	933			$	977			$	1,113			$	1,171			$	41			$	(197	)
ALLL as % of Loans (3)			0.9	%			0.9	%			1.0	%			1.1	%			1.2	%
ALLL as % of NPLs (3)			151.6	%			157.5	%			151.5	%			179.2	%			191.8	%
ALLL as % of NCOs (3)			243.8	%			155.0	%			143.5	%			186.8	%			344.2	%
U.S. Auto Delinquencies - HFI Retail Contract Amount (4)
Delinquent contract $		$	1,389			$	1,076			$	1,543			$	1,338			$	1,174			$	313			$	215
% of retail contract $ outstanding			2.29	%			1.87	%			2.73	%			2.28	%			2.02	%
U.S. Auto Annualized Net Charge-Offs - HFI Retail Contract Amount
Net charge-offs		$	96			$	132			$	160			$	137			$	83			$	(36	)		$	12
% of avg. HFI assets			0.65	%			0.93	%			1.10	%			0.93	%			0.58	%
U.S. Auto Annualized Net Charge-Offs - HFI Commercial Contract Amount
Net charge-offs		$	1			$	(1	)		$	(0	)		$	0			$	1			$	1			$	0
% of avg. HFI assets			0.01	%			-0.01	%			0.00	%			0.00	%			0.01	%

(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

 

(4) Dollar amount of accruing contracts greater than 30 days past due

 

 

ALLY FINANCIAL INC. CREDIT RELATED INFORMATION, CONTINUED

 

($ in millions)
CONTINUING OPERATIONS

 

Automotive Finance (1)		QUARTERLY TRENDS																				CHANGE VS.
Consumer		2Q 15				1Q 15				4Q 14				3Q 14				2Q 14				1Q 15				2Q 14
Allowance for loan losses		$	767			$	711			$	685			$	693			$	729			$	56			$	38
Total consumer loans (2)		$	60,786			$	57,447			$	56,570			$	58,675			$	58,114			$	3,340			$	2,673
Coverage ratio			1.3	%			1.2	%			1.2	%			1.2	%			1.3	%
Commercial
Allowance for loan losses		$	48			$	67			$	98			$	90			$	93			$	(19	)		$	(46	)
Total commercial loans		$	33,026			$	32,753			$	34,022			$	31,492			$	33,041			$	273			$	(15	)
Coverage ratio			0.1	%			0.2	%			0.3	%			0.3	%			0.3	%
Mortgage (1)
Consumer
Allowance for loan losses		$	119			$	119			$	152			$	283			$	302			$	(0	)		$	(183	)
Total consumer loans		$	9,211			$	7,652			$	7,473			$	7,594			$	7,846			$	1,559			$	1,365
Coverage ratio			1.3	%			1.6	%			2.0	%			3.7	%			3.9	%
Corporate and Other (1)(3)
Allowance for loan losses		$	40			$	36			$	42			$	47			$	47			$	4			$	(6	)
Total commercial loans		$	2,149			$	2,004			$	1,882			$	1,756			$	1,776			$	145			$	373
Coverage ratio			1.9	%			1.8	%			2.2	%			2.7	%			2.6	%

(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

 

(2) Includes $69 million Corp. Treasury hedging activity related to domestic consumer auto outstandings in 2Q15, $68 million in 1Q15, $35 million in 4Q14, $16 million in 3Q14, and $30 million in 2Q14

 

(3) Includes Insurance

 

 

ALLY FINANCIAL INC. CAPITAL
($ in billions)

 

		QUARTERLY TRENDS																				CHANGE VS.
		Basel III Transition								Basel I
Capital (1)		2Q 15				1Q 15				4Q 14				3Q 14				2Q 14				1Q 15				2Q 14
Risk-weighted assets		$	134.0			$	130.1			$	130.6			$	128.2			$	129.2			$	3.9			$	4.8
Common Equity Tier 1 (CET1) capital ratio (Tier 1 common prior to 1Q15)			9.8	%			10.9	%			9.6	%			9.7	%			9.4	%
Tier 1 capital ratio			11.7	%			13.2	%			12.5	%			12.7	%			12.3	%
Total capital ratio			12.6	%			14.1	%			13.2	%			13.5	%			13.2	%
Tangible common equity / Tangible assets			8.6	%			9.5	%			9.3	%			9.3	%			9.1	%
Tangible common equity / Risk-weighted assets			10.0	%			11.3	%			10.8	%			10.8	%			10.5	%
Shareholders’ equity		$	14.3			$	15.9			$	15.4			$	15.2			$	14.9			$	(1.6	)		$	(0.6	)
less:  Preferred equity			(0.8	)			(1.3	)			(1.3	)			(1.3	)			(1.3	)			0.5				0.5
Disallowed DTA			(0.4	)			(0.5	)			(1.3	)			(1.4	)			(1.3	)			0.1				0.9
Certain AOCI items and other adjustments			0.1				-				(0.2	)			(0.1	)			(0.2	)			0.1				0.3
Common Equity Tier 1 capital (2)		$	13.2			$	14.2			$	12.6			$	12.4			$	12.1			$	(1.0	)		$	1.1
Common Equity Tier 1 capital		$	13.2			$	14.2			$	12.6			$	12.4			$	12.1			$	(1.0	)		$	1.1
add:  Preferred equity			0.7				1.1				1.3				1.3				1.3				(0.4	)			(0.6	)
Trust preferred securities			2.5				2.5				2.5				2.5				2.5				-				-
less: Other adjustments			(0.7	)			(0.7	)			-				-				-				-				(0.7	)
Tier 1 capital		$	15.7			$	17.1			$	16.4			$	16.2			$	15.9			$	(1.4	)		$	(0.2	)
Tier 1 capital		$	15.7			$	17.1			$	16.4			$	16.2			$	15.9			$	(1.4	)		$	(0.2	)
add:  Qualifying subordinated debt and redeemable preferred stock			0.3				0.4				0.2				0.2				0.2				(0.1	)			0.1
Allowance for loan and lease losses includible in Tier 2 capital and other adjustments			0.9				0.9				0.7				0.8				0.9				-				-
Total capital		$	16.9			$	18.4			$	17.3			$	17.3			$	17.1			$	(1.5	)		$	(0.2	)
Total shareholders' equity		$	14.3			$	15.9			$	15.4			$	15.2			$	14.9			$	(1.6	)		$	(0.6	)
less:  Preferred equity			(0.8	)			(1.3	)			(1.3	)			(1.3	)			(1.3	)			0.5				0.5
Goodwill and intangible assets			-				-				-				-				-				-				-
Tangible common equity (3)		$	13.5			$	14.7			$	14.1			$	13.9			$	13.6			$	(1.2	)		$	(0.1	)
Total assets		$	156.5			$	153.5			$	151.8			$	149.2			$	149.9			$	3.0			$	6.6
less: Goodwill and intangible assets			-				-				-				-				-				-				-
Tangible assets		$	156.4			$	153.5			$	151.8			$	149.2			$	149.9			$	2.9			$	6.5

Note: Numbers may not foot due to rounding

 

(1) Basel III rules became effective on January 1, 2015, subject to transition provisions primarily related to deductions and adjustments impacting CET1 capital and Tier 1 capital; all data prior to that date is based on Basel I rules.

 

(2) Tier 1 Common and Common Equity Tier 1 are non-GAAP financial measures. We define Tier 1 Common and Common Equity Tier 1 as Tier 1 capital less non-common 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 ratio and Common Equity Tier 1 ratio, in addition to other 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. Ally believes the Tier 1 Common ratio and Common Equity Tier 1 ratio are important because 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.

 

(3) 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)

 

		6/30/2015								3/31/2015								6/30/2014
Available Liquidity		Parent (1)				Ally Bank				Parent (1)				Ally Bank				Parent (1)				Ally Bank
Cash and cash equivalents (2)		$	2.6			$	2.8			$	3.0			$	4.3			$	2.9			$	2.2
Highly liquid securities (3)			1.4				6.9				2.1				5.7				2.5				6.6
Current committed unused capacity			1.1				0.2				2.9				1.5				3.6				1.0
Subtotal		$	5.1			$	9.9			$	8.0			$	11.5			$	9.0			$	9.8
Ally Bank intercompany loan (4)			-				-				0.7				(0.7	)			1.7				(1.7	)
Total Current Available Liquidity		$	5.1			$	9.9			$	8.7			$	10.8			$	10.7			$	8.1
Unsecured Long-Term Debt Maturity Profile			2015				2016				2017				2018				2019				2020 and After
Consolidated remaining maturities		$	0.0			$	1.9			$	4.4			$	2.9			$	1.6			$	9.7

(1) Parent company liquidity is defined as our consolidated operations less Ally Bank and the regulated subsidiaries of Ally Insurance's holding company

 

(2) May include the restricted cash accumulation for retained notes maturing within the following 30 days and returned to Ally on the distribution date

 

(3) Includes UST, Agency debt and Agency MBS

 

(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

 

 

ALLY FINANCIAL INC. DEPOSITS
($ in millions)

 

		QUARTERLY TRENDS																				CHANGE VS.
Key Statistics		2Q 15				1Q 15				4Q 14				3Q 14				2Q 14				1Q 15				2Q 14
Average retail CD maturity (months)			32.1				31.6				31.6				31.3				31.1				0.5				1.0
Average retail deposit rate			1.15	%			1.17	%			1.16	%			1.16	%			1.17	%
Ally Financial Deposits Levels
Ally Bank retail		$	51,750			$	50,633			$	47,954			$	46,718			$	45,934			$	1,117			$	5,816
Ally Bank brokered			9,861				9,853				9,885				9,692				9,684				8				177
Other			336				389				384				441				473				(54	)			(137	)
Total deposits		$	61,947			$	60,875			$	58,222			$	56,851			$	56,091			$	1,072			$	5,856
Ally Bank Deposit Mix
Retail CD			36.3	%			37.9	%			40.1	%			41.4	%			42.5	%
MMA/OSA/Checking			47.7	%			45.8	%			42.8	%			41.5	%			40.1	%
Brokered			16.0	%			16.3	%			17.1	%			17.2	%			17.4	%

 

 

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

 

		HISTORICAL QUARTERLY TRENDS
Loan Value		2Q 15				1Q 15				4Q 14				3Q 14				2Q 14
Gross carry value		$	9.2			$	7.7			$	7.5			$	7.6			$	7.8
Net carry value		$	9.1			$	7.5			$	7.3			$	7.3			$	7.5
Estimated Pool Characteristics
Ongoing (post 1/1/2009)			60.7	%			50.9	%			46.9	%			38.7	%			38.7	%
Legacy (pre 1/1/2009)			39.3	%			49.1	%			53.1	%			61.3	%			61.3	%
% Second lien			7.7	%			9.8	%			10.5	%			10.8	%			11.0	%
% Interest only			9.1	%			11.1	%			12.5	%			13.4	%			13.5	%
% 30+ Day delinquent (1)			2.2	%			2.8	%			3.0	%			3.8	%			2.7	%
% Low/No documentation			8.8	%			11.1	%			12.1	%			14.3	%			14.2	%
% Non-primary residence			4.9	%			3.8	%			3.7	%			3.8	%			3.8	%
Refreshed FICO			751				748				734				726				726
Wtd. Avg. LTV/CLTV (2)			67.7	%			68.6	%			71.5	%			73.1	%			76.6	%
Higher risk geographies (3)			42.7	%			41.5	%			41.1	%			40.5	%			40.4	%

(1) 3Q14 delinquency rates temporarily impacted by sub-servicing transfer

 

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

 

(3) Includes CA, FL, MI and AZ

 

 

ALLY FINANCIAL INC. DISCONTINUED OPERATIONS
($ in millions)

 

		QUARTERLY TRENDS																				CHANGE VS.
Impact of Discontinued Operations (1)		2Q 15				1Q 15				4Q 14				3Q 14				2Q 14				1Q 15				2Q 14
Auto Finance		$	(4	)		$	454			$	23			$	29			$	22			$	(457	)		$	(26	)
Insurance			3				-				0				6				1				3				2
Corporate and Other			14				6				6				16				25				8				(11	)
Consolidated pretax income		$	14			$	460			$	29			$	51			$	48			$	(446	)		$	(34	)
Tax expense (benefit)			(0	)			63				2				(78	)			7				(63	)			(7	)
Consolidated net income		$	13			$	397			$	26			$	130			$	40			$	(384	)		$	(27	)
Assets of discontinued operations held-for-sale		$	-			$	-			$	634			$	603			$	574			$	-			$	(574	)

(1) Disc ops activity reflects several actions including divestitures of international businesses and other mortgage related charges in addition to certain discrete tax items

 

 

ALLY FINANCIAL INC. PER SHARE-RELATED INFORMATION
($ in millions, shares in thousands)

 

		QUARTERLY TRENDS																				CHANGE VS.
Earnings Per Share Data		2Q 15				1Q 15				4Q 14				3Q 14				2Q 14				1Q 15				2Q 14
Net income (loss)		$	182			$	576			$	177			$	423			$	323			$	(394	)		$	(141	)
less: Preferred stock dividends			1,251				67				68				67				65				1,184				1,186
Net income (loss) available to common shareholders		$	(1,069	)		$	509			$	109			$	356			$	258			$	(1,578	)		$	(1,327	)
Weighted-average shares outstanding - basic (1)			482,847				482,248				481,861				481,611				481,350				599				1,497
Weighted-average shares outstanding - diluted (1)(2)			483,687				482,782				483,091				482,506				482,343				905				1,344
Net income (loss) per share - basic (1)		$	(2.22	)		$	1.06			$	0.23			$	0.74			$	0.54			$	(3.28	)		$	2.76
Net income (loss) per share - diluted (1)(2)		$	(2.22	)		$	1.06			$	0.23			$	0.74			$	0.54			$	(3.28	)		$	(2.76	)
Adjusted Tangible Book Value(3) ($ billions)
GAAP shareholder's equity		$	14.3			$	15.9			$	15.4			$	15.2			$	14.9			$	(1.6	)		$	(0.6	)
Preferred equity and goodwill			(0.8	)			(1.3	)			(1.3	)			(1.3	)			(1.3	)			0.4				0.4
Tangible common equity			13.5				14.7				14.1				13.9				13.6				(1.2	)			(0.1	)
Tax-effected bond OID (4)			(0.9	)			(0.9	)			(0.9	)			(0.9	)			(0.9	)			0.0				0.1
Series G discount			(1.2	)			(2.3	)			(2.3	)			(2.3	)			(2.3	)			1.2				1.2
Adjusted tangible book value		$	11.4			$	11.4			$	10.9			$	10.6			$	10.3			$	(0.0	)		$	1.1
Adjusted Tangible Book Value Per Share(3)
GAAP shareholder's equity		$	29.7			$	33.1			$	32.1			$	31.7			$	31.0			$	(3.4	)		$	(1.3	)
Preferred equity and goodwill			(1.7	)			(2.7	)			(2.7	)			(2.7	)			(2.7	)			0.9				0.9
Tangible common equity			27.9				30.4				29.4				29.0				28.3				(2.5	)			(0.4	)
Tax-effected bond OID (4)			(1.8	)			(1.8	)			(1.9	)			(1.9	)			(2.0	)			0.0				0.2
Series G discount			(2.4	)			(4.9	)			(4.9	)			(4.9	)			(4.9	)			2.4				2.5
Adjusted tangible book value per share		$	23.7			$	23.7			$	22.7			$	22.2			$	21.5			$	(0.0	)		$	2.2

(1) Includes shares related to share-based compensation that have vested but not yet been issued as of June 30, 2015, March 31, 2015, December 31, 2014, September 30,2014 and June 30, 2014

 

(2) Due to antidilutive effect of the net loss from continuing operations attributable to common shareholders for the three months ended June 30, 2015, basic weighted-average common shares outstanding were used to calculate basic and diluted earnings per share

 

(3) Represents a non-GAAP Financial measure

 

(4) Assumes 34% tax rate

 

 

ALLY FINANCIAL INC. SUPPLEMENTAL FINANCIAL DATA
($ in millions)

 

		QUARTERLY TRENDS																				CHANGE VS.
Core ROTCE Calculation		2Q 15				1Q 15				4Q 14				3Q 14				2Q 14				1Q 15				2Q 14
Pre-tax income (loss) from continuing operations		$	263			$	282			$	187			$	420			$	347			$	(19	)		$	(84	)
add:  Core original issue discount expense			18				17				42				47				53				1				(36	)
Repositioning items			154				190				167				-				16				(37	)			137
Core pre-tax income (ex. repositioning)		$	435			$	490			$	396			$	467			$	417			$	(55	)		$	18
Normalized income tax expense at 34%			148				166				135				159				142				(19	)			6
Core net income			287				323				262				308				275				(36	)			12
Preferred dividends (Series A & G)			58				67				68				67				65				(9	)			(7	)
Operating net income available to common shareholders (1)		$	229			$	256			$	194			$	241			$	210			$	(28	)		$	18
Tangible common equity (2)		$	14,053			$	14,384			$	14,012			$	13,752			$	13,386			$	(331	)		$	667
less: Unamortized core original issue discount			1,333				1,345				1,369				1,411				1,461				(12	)			(128	)
Net deferred tax asset			1,632				1,725				1,800				1,806				1,872				(93	)			(239	)
Normalized common equity (1)(3)		$	11,087			$	11,314			$	10,843			$	10,534			$	10,053			$	(227	)		$	1,034
Core ROTCE (1)			8.2	%			9.1	%			7.1	%			9.1	%			8.4	%
Adjusted Efficiency Ratio Calculation
Total noninterest expense		$	724			$	695			$	672			$	742			$	821			$	29			$	(97	)
less:  Rep and warrant expense			(9	)			-				(11	)			-				0				(9	)			(9	)
Insurance expense			267				202				203				243				329				65				(62	)
Repositioning items			4				-				19				-				16				4				(13	)
Numerator		$	462			$	493			$	461			$	499			$	475			$	(31	)		$	(14	)
Total net revenue		$	1,127			$	1,093			$	1,014			$	1,264			$	1,231			$	34			$	(104	)
add:  Original issue discount			18				17				42				47				53				1				(36	)
Repositioning			150				190				148				-				-				(40	)			150
less:  Insurance revenue			282				280				289				303				306				2				(24	)
Denominator		$	1,013			$	1,021			$	916			$	1,008			$	978			$	(8	)		$	34
Adjusted Efficiency Ratio (1)			46	%			48	%			50	%			49	%			49	%
Noninterest Expense
Compensation and benefits		$	236			$	255			$	237			$	241			$	216			$	(19	)		$	20
Technology and communications			64				69				79				77				93				(4	)			(29	)
Professional services			25				20				26				21				25				5				(0	)
Servicing expenses (4)			50				48				52				54				53				3				(2	)
Advertising and marketing			23				31				30				27				25				(8	)			(2	)
Other controllable expenses (5)			50				47				52				50				47				3				3
Controllable Expense		$	448			$	469			$	478			$	469			$	458			$	(21	)		$	(10	)
Other Noninterest Expense			272				226				176				273				347				46				(75	)
Total Noninterest Expense (ex. repositioning)		$	720			$	695			$	653			$	742			$	805			$	25			$	(84	)
Repositioning expenses			4				-				19				-				16				4				(13	)
Total Noninterest Expense		$	724			$	695			$	672			$	742			$	821			$	29			$	(97	)

(1) Represents a non-GAAP financial measure

 

(2) See page 16 for details

 

(3) Normalized common equity calculated using 2 period average

 

(4) Includes lease and loan administration expenses and vehicle remarketing and repossession expenses

 

(5) Includes occupancy and premises and equipment depreciation