Exhibit 99.3

 

 

 

THIRD 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
Net Interest Margin and 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			3Q 15				2Q 15				1Q 15				4Q 14				3Q 14				2Q 15				3Q 14
Net financing revenue (ex. OID)		$	981			$	927			$	860			$	835			$	936			$	55			$	46
Total other revenue (ex. OID)			332				218				250				221				375				114				(43	)
Total net revenue (ex. OID)			1,313				1,145				1,110				1,056				1,311				169				3
Provision for loan losses			211				140				116				155				102				71				109
Controllable expenses (1)			452				452				469				479				469				(0	)			(18	)
Other noninterest expenses			222				272				226				193				273				(50	)			(50	)
Core pre-tax income (2)		$	428			$	281			$	299			$	229			$	467			$	148			$	(38	)
Core OID amortization expense (3)			11				18				17				42				47				(6	)			(35	)
Income tax (benefit) expense			144				94				103				36				127				50				17
Income (loss) from discontinued operations			(5	)			13				397				26				130				(18	)			(135	)
Net income		$	268			$	182			$	576			$	177			$	423			$	86			$	(155	)
Preferred stock dividends			38				1,251				67				68				67				(1,213	)			(29	)
Net income (loss) available to common shareholders		$	230			$	(1,069	)		$	509			$	109			$	356			$	1,299			$	(126	)
Selected Balance Sheet Data (Period-End)
Total assets		$	156,105			$	156,472			$	153,524			$	151,828			$	149,195			$	(367	)		$	6,910
Consumer loans			73,380				69,998				65,100				64,044				66,270				3,382				7,110
Commercial loans			34,611				35,175				34,757				35,904				33,248				(564	)			1,363
Assets of discontinued operations held-for-sale			-				-				-				634				603				-				(603	)
Allowance for loan losses			(1,018	)			(974	)			(933	)			(977	)			(1,113	)			(44	)			95
Deposits			64,041				61,947				60,875				58,222				56,851				2,094				7,190
Common equity (4)			13,786				13,482				14,679				14,144				13,935				304				(149	)
Total equity			14,599				14,295				15,934				15,399				15,190				304				(591	)
Common Share Count
Weighted average basic (5)			483,073				482,847				482,248				481,861				481,611				226				1,462
Weighted average diluted (5)(6)			484,399				483,687				482,782				483,091				482,506				712				1,893
Issued shares outstanding (period-end)			481,750				481,750				481,503				480,095				479,818				(0	)			1,932
Per Common Share Data
Earnings per share (basic) (5)		$	0.48			$	(2.22	)		$	1.06			$	0.23			$	0.74			$	2.70			$	(0.26	)
Earnings per share (diluted) (5)(6)			0.47				(2.22	)			1.06				0.23				0.74				2.69				(0.27	)
Adjusted earnings per share			0.51				0.46				0.52				0.40				0.53				0.04				(0.03	)
Book value per share			30.3				29.7				33.1				32.1				31.7				0.6				(1.4	)
Tangible book value per share			28.6				27.9				30.4				29.4				29.0				0.6				(0.4	)
Adjusted tangible book value per share (7)			24.3				23.7				23.7				22.7				22.2				0.6				2.1
Select Financial Ratios
Net interest margin (8)			2.7	%			2.6	%			2.5	%			2.4	%			2.7	%
Cost of funds (incl. OID)			1.8	%			1.8	%			1.9	%			2.0	%			2.0	%
Cost of funds (excl. OID)			1.7	%			1.8	%			1.9	%			1.9	%			1.9	%
Adjusted efficiency ratio (9)			44	%			46	%			48	%			50	%			49	%
Return on average assets (10)			0.7	%			0.5	%			1.5	%			0.5	%			1.1	%
Return on average total equity (10)			7.4	%			4.8	%			14.9	%			4.6	%			11.2	%
Return on average tangible common equity (10)			6.8	%			n/m				14.2	%			3.1	%			10.3	%
Core ROTCE (9)(10)			9.2	%			8.2	%			9.1	%			7.1	%			9.1	%
Capital Ratios (11)
Common Equity Tier 1 (CET1) capital ratio (Tier 1 common prior to 1Q15) (12)			10.0	%			9.8	%			10.9	%			9.6	%			9.7	%
Tier 1 capital ratio			12.0	%			11.7	%			13.2	%			12.5	%			12.7	%
Total capital ratio			12.9	%			12.6	%			14.1	%			13.2	%			13.5	%

(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, treasury stock, accumulated deficit and accumulated other comprehensive income

(5) Includes shares related to share-based compensation that vested but were not yet issued

(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.
		3Q 15				2Q 15				1Q 15				4Q 14				3Q 14				2Q 15				3Q 14
Financing revenue and other interest income
Interest and fees on finance receivables and loans (1)		$	1,166			$	1,118			$	1,074			$	1,112			$	1,114			$	48			$	52
Interest on loans held-for-sale			2				14				24				-				-				(12	)			2
Interest and dividends on available-for-sale investment securities			102				93				88				85				94				9				8
Interest-bearing cash			2				2				2				2				2				-				-
Operating leases			830				860				896				905				899				(30	)			(69	)
Total financing revenue and other interest income			2,102				2,087				2,084				2,104				2,109				15				(7	)
Interest expense
Interest on deposits			181				177				172				169				166				4				15
Interest on short-term borrowings			13				12				11				12				12				1				1
Interest on long-term debt			410				419				429				491				493				(9	)			(83	)
Total interest expense			604				608				612				672				671				(4	)			(67	)
Depreciation expense on operating lease assets			528				563				622				633				549				(35	)			(21	)
Net financing revenue			970				916				850				799				889				54				81
Other revenue
Servicing fees			12				10				10				9				6				2				6
Insurance premiums and service revenue earned			236				237				233				243				246				(1	)			(10	)
Gain on mortgage and automotive loans, net			(2	)			1				46				1				-				(3	)			(2	)
Loss on extinguishment of debt			-				(156	)			(198	)			(156	)			-				156				-
Other gain on investments, net			6				45				55				52				45				(39	)			(39	)
Other income, net of losses			80				74				97				66				78				6				2
Total other revenue			332				211				243				215				375				121				(43	)
Total net revenue			1,302				1,127				1,093				1,014				1,264				175				38
Provision for loan losses			211				140				116				155				102				71				109
Noninterest expense
Compensation and benefits expense			235				236				255				237				241				(1	)			(6	)
Insurance losses and loss adjustment expenses			61				122				56				57				97				(61	)			(36	)
Other operating expenses			378				366				384				378				404				12				(26	)
Total noninterest expense			674				724				695				672				742				(50	)			(68	)
Income (loss) from continuing operations before income tax expense			417				263				282				187				420				154				(3	)
Income tax (benefit) expense from continuing operations			144				94				103				36				127				50				17
Net income from continuing operations			273				169				179				151				293				104				(20	)
Income (loss) from discontinued operations, net of tax			(5	)			13				397				26				130				(18	)			(135	)
Net income (loss)		$	268			$	182			$	576			$	177			$	423			$	86			$	(155	)

(1) Includes other interest income, net

 

 

ALLY FINANCIAL INC. CONSOLIDATED PERIOD-END BALANCE SHEET

 

($ in millions)

 

		QUARTERLY TRENDS																				CHANGE VS.
Assets		9/30/2015				6/30/2015				3/31/2015				12/31/2014				9/30/2014				6/30/2015				9/30/2014
Cash and cash equivalents
Noninterest-bearing		$	1,666			$	1,739			$	1,552			$	1,348			$	1,318			$	(73	)		$	348
Interest-bearing			3,561				4,119				6,084				4,228				4,381				(558	)			(820	)
Total cash and cash equivalents			5,227				5,858				7,636				5,576				5,699				(631	)			(472	)
Federal funds sold and securities purchased under resale agreements			-				-				50				-				-				-				-
Investment securities			18,758				19,142				17,829				16,137				16,714				(384	)			2,044
Loans held-for-sale, net			37				1,438				1,559				2,003				3				(1,401	)			34
Finance receivables and loans, net
Finance receivables and loans, net			107,991				105,173				99,857				99,948				99,518				2,818				8,473
Allowance for loan losses			(1,018	)			(974	)			(933	)			(977	)			(1,113	)			(44	)			95
Total finance receivables and loans, net			106,973				104,199				98,924				98,971				98,405				2,774				8,568
Investment in operating leases, net			17,292				17,950				19,021				19,510				19,341				(658	)			(2,049	)
Premiums receivables and other insurance assets			1,794				1,759				1,722				1,695				1,678				35				116
Other assets			6,024				6,126				6,783				7,302				6,752				(102	)			(728	)
Assets of operations held-for-sale			-				-				-				634				603				-				(603	)
Total assets		$	156,105			$	156,472			$	153,524			$	151,828			$	149,195			$	(367	)		$	6,910
Liabilities
Deposit liabilities
Noninterest-bearing		$	91			$	89			$	79			$	64			$	73			$	2			$	18
Interest-bearing			63,950				61,858				60,796				58,158				56,778				2,092				7,172
Total deposit liabilities			64,041				61,947				60,875				58,222				56,851				2,094				7,190
Short-term borrowings			5,378				10,013				6,447				7,062				5,255				(4,635	)			123
Long-term debt			67,461				65,852				65,760				66,558				67,299				1,609				162
Interest payable			437				418				440				477				542				19				(105	)
Unearned insurance premiums and service revenue			2,438				2,417				2,374				2,375				2,369				21				69
Accrued expense and other liabilities			1,751				1,530				1,694				1,735				1,689				221				62
Total liabilities		$	141,506			$	142,177			$	137,590			$	136,429			$	134,005			$	(671	)		$	7,501
Equity
Common stock and paid-in capital (1)		$	21,066			$	21,053			$	21,033			$	21,038			$	21,022			$	13			$	44
Preferred stock			813				813				1,255				1,255				1,255				-				(442	)
Accumulated deficit			(7,158	)			(7,388	)			(6,319	)			(6,828	)			(6,937	)			230				(221	)
Accumulated other comprehensive (loss) income			(122	)			(183	)			(35	)			(66	)			(150	)			61				28
Total equity			14,599				14,295				15,934				15,399				15,190				304				(591	)
Total liabilities and equity		$	156,105			$	156,472			$	153,524			$	151,828			$	149,195			$	(367	)		$	6,910

(1) Includes Treasury stock

 

 

ALLY FINANCIAL INC. CONSOLIDATED AVERAGE BALANCE SHEET (1)

 

($ in millions)

 

		QUARTERLY TRENDS																				CHANGE VS.
Assets		9/30/2015				6/30/2015				3/31/2015				12/31/2014				9/30/2014				6/30/2015				9/30/2014
Interest-bearing cash and cash equivalents		$	3,667			$	4,013			$	4,402			$	4,293			$	3,867			$	(346	)		$	(200	)
Federal funds sold and securities purchased under resale agreements			-				1				7				-				-				(1	)			-
Investment securities			17,745				17,078				15,904				15,439				16,182				667				1,563
Loans held-for-sale, net			111				1,493				1,947				25				3				(1,382	)			108
Total finance receivables and loans, net (2)			105,604				101,962				98,843				101,272				100,089				3,642				5,515
Investment in operating leases, net			17,519				18,520				19,405				19,479				19,114				(1,001	)			(1,595	)
Total interest earning assets			144,646				143,067				140,508				140,508				139,255				1,579				5,391
Noninterest-bearing cash and cash equivalents			1,563				1,337				1,825				1,757				1,688				226				(125	)
Other assets (3)			9,855				9,670				9,793				10,078				10,323				185				(468	)
Allowance for loan losses			(988	)			(953	)			(969	)			(1,113	)			(1,174	)			(35	)			186
Total assets		$	155,076			$	153,121			$	151,157			$	151,230			$	150,092			$	1,955			$	4,984
Liabilities
Interest-bearing deposit liabilities		$	62,810			$	61,242			$	59,391			$	57,332			$	56,301			$	1,568			$	6,509
Short-term borrowings			6,745				6,057				6,280				6,258				6,187				688				558
Long-term debt (4)			67,028				66,551				65,168				67,884				67,687				477				(659	)
Total interest-bearing liabilities (4)			136,583				133,850				130,839				131,474				130,175				2,733				6,408
Noninterest-bearing deposit liabilities			91				81				73				68				75				10				16
Other liabilities (3)			3,971				4,538				4,548				4,432				4,856				(567	)			(885	)
Total liabilities		$	140,645			$	138,469			$	135,460			$	135,974			$	135,106			$	2,176			$	5,539
Equity
Total equity		$	14,431			$	14,652			$	15,697			$	15,256			$	14,986			$	(221	)		$	(555	)
Total liabilities and equity		$	155,076			$	153,121			$	151,157			$	151,230			$	150,092			$	1,955			$	4,984

(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 $1,322 million and $1,411 million related to original issue discount at September 2015 and September 2014, respectively

 

 

ALLY FINANCIAL INC. SEGMENT HIGHLIGHTS

 

($ in millions)

 

		QUARTERLY TRENDS																				CHANGE VS.
		3Q 15				2Q 15				1Q 15				4Q 14				3Q 14				2Q 15				3Q 14
Automotive Finance		$	347			$	401			$	331			$	310			$	415			$	(54	)		$	(68	)
Insurance			40				15				78				86				60				25				(20	)
Dealer Financial Services			387				416				409				396				475				(29	)			(88	)
Mortgage			7				8				69				21				(3	)			(1	)			10
Corporate and Other (ex. OID) (1)			34				(143	)			(179	)			(188	)			(5	)			178				40
Core pre-tax income (2)		$	428			$	281			$	299			$	229			$	467			$	148			$	(38	)
Core OID amortization expense (3)			11				18				17				42				47				(6	)			(35	)
Income tax expense			144				94				103				36				127				50				17
Income from discontinued operations			(5	)			13				397				26				130				(18	)			(135	)
Net income		$	268			$	182			$	576			$	177			$	423			$	86			$	(155	)

(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 and $6 million in 4Q14 due to debt redemption

 

 

ALLY FINANCIAL INC. AUTOMOTIVE FINANCE - CONDENSED FINANCIAL STATEMENTS

 

($ in millions)

 

		QUARTERLY TRENDS																				CHANGE VS.
Income Statement		3Q 15				2Q 15				1Q 15				4Q 14				3Q 14				2Q 15				3Q 14
Net financing revenue
Consumer		$	833			$	785			$	745			$	770			$	774			$	48			$	59
Commercial			228				235				238				252				246				(7	)			(18	)
Loans held-for-sale			2				14				19				-				-				(12	)			2
Operating leases			830				860				896				905				899				(30	)			(69	)
Other interest income			2				2				2				2				3				-				(1	)
Total financing revenue and other interest income			1,895				1,896				1,900				1,929				1,922				(1	)			(27	)
Interest expense			497				483				469				529				523				14				(26	)
Depreciation expense on operating lease assets:
Depreciation expense on operating lease assets (ex. remarketing)			633				671				691				683				654				(39	)			(21	)
Remarketing gains			(105	)			(108	)			(69	)			(50	)			(105	)			3				(0	)
Total depreciation expense on operating lease assets			528				563				622				633				549				(35	)			(21	)
Net financing revenue			870				850				809				767				850				20				20
Other revenue
Servicing fees			12				10				10				9				6				2				6
Gain/(loss) on automotive loans, net			(2	)			(6	)			(15	)			4				6				4				(8	)
Other income			53				51				57				56				57				2				(4	)
Total other revenue			63				55				52				69				69				8				(6	)
Total net revenue			933				905				861				836				919				28				14
Provision for loan losses			201				132				127				175				109				69				92
Noninterest expense
Compensation and benefits			121				123				126				113				112				(2	)			9
Other operating expenses			264				249				277				238				283				15				(19	)
Total noninterest expense			385				372				403				351				395				13				(10	)
Income before income tax expense		$	347			$	401			$	331			$	310			$	415			$	(54	)		$	(68	)
Memo: Net lease revenue
Operating lease revenue		$	830			$	860			$	896			$	905			$	899			$	(30	)		$	(69	)
Depreciation expense on operating lease assets (ex. remarketing)			633				671				691				683				654				(38	)			(21	)
Remarketing gains			(105	)			(108	)			(69	)			(50	)			(105	)			3				(0	)
Total depreciation expense on operating lease assets			528				563				622				633				549				(35	)			(21	)
Net lease revenue		$	302			$	297			$	274			$	272			$	350			$	5			$	(48	)
Balance Sheet (Period-End)
Cash, trading and investment securities		$	32			$	33			$	34			$	32			$	34			$	(1	)		$	(2	)
Loans held-for-sale			-				1,356				1,500				1,515				-				(1,356	)			-
Finance receivables and loans, net:
Consumer loans			63,503				60,717				57,379				56,535				58,659				2,786				4,844
Commercial loans (1)			32,345				33,044				32,770				34,039				31,510				(699	)			835
Allowance for loan losses			(852	)			(815	)			(778	)			(783	)			(783	)			(37	)			(69	)
Total finance receivables and loans, net			94,996				92,946				89,371				89,791				89,386				2,050				5,610
Investment in operating leases, net			17,292				17,950				19,021				19,510				19,341				(658	)			(2,049	)
Other assets			1,523				1,322				1,223				1,706				1,573				201				(50	)
Assets of operations held-for-sale			-				-				-				634				603				-				(603	)
Total assets		$	113,843			$	113,607			$	111,149			$	113,188			$	110,937			$	236			$	2,906

(1) Includes intercompany

 

 

ALLY FINANCIAL INC. AUTOMOTIVE FINANCE - KEY STATISTICS

 

		QUARTERLY TRENDS																				CHANGE VS.
U.S. Market		3Q 15				2Q 15				1Q 15				4Q 14				3Q 14				2Q 15				3Q 14
Light vehicle sales (SAAR - units in millions)			17.8				17.1				16.7				16.8				16.7				0.7				1.1
Light vehicle sales (quarterly - units in millions)			4.5				4.5				3.9				4.1				4.2				(0.0	)			0.3
GM market share			17.6	%			18.1	%			17.4	%			17.9	%			17.7	%
Chrysler market share			12.7	%			12.7	%			12.8	%			13.1	%			12.6	%
U.S. Consumer Originations (1) ($ in billions)
GM new retail subvented		$	0.7			$	0.7			$	0.5			$	0.5			$	1.8			$	0.0			$	(1.1	)
GM new retail standard			2.8				2.6				2.0				1.9				1.9				0.2				0.9
Chrysler new retail			1.3				1.3				1.0				0.8				1.0				(0.0	)			0.3
New growth			1.3				1.3				1.0				0.7				0.9				0.0				0.4
Lease			1.0				1.0				1.6				2.4				3.0				0.1				(2.0	)
Used			3.9				4.0				3.6				2.7				3.2				(0.1	)			0.7
Total originations		$	11.1			$	10.8			$	9.8			$	9.0			$	11.8			$	0.3			$	(0.7	)
U.S. Consumer Penetration
GM			16.3	%			16.4	%			20.7	%			22.9	%			30.9	%
Chrysler			13.9	%			13.7	%			11.3	%			10.6	%			11.3	%
U.S. Commercial Outstandings EOP ($ in billions)
Floorplan outstandings, net		$	27.5			$	28.3			$	28.3			$	29.7			$	27.3			$	(0.8	)		$	0.2
Other dealer loans			4.8				4.7				4.5				4.3				4.2				0.1				0.6
Total Commercial outstandings		$	32.3			$	33.0			$	32.8			$	34.0			$	31.5			$	(0.7	)		$	0.8
U.S. Floorplan Penetration (2)
GM penetration			62.5	%			63.2	%			63.2	%			63.8	%			63.4	%
Chrysler penetration			43.1	%			44.3	%			44.5	%			44.1	%			43.8	%
U.S. Off-Lease Remarketing
Off-lease vehicles terminated - On-balance sheet (# in units)			65,363				64,123				65,060				70,969				79,280				1,240				(13,917	)
Average gain per vehicle		$	1,611			$	1,686			$	1,067			$	705			$	1,327			$	(75	)		$	284
Total gains ($ in millions)		$	105			$	108			$	69			$	50			$	105			$	(3	)		$	0

(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 (GAAP View)		3Q 15				2Q 15				1Q 15				4Q 14				3Q 14				2Q 15				3Q 14
Net financing revenue
Interest and dividends on investment securities		$	26			$	25			$	23			$	21			$	28			$	1			$	(2	)
Interest bearing cash			2				2				2				1				2				-				-
Total financing revenue and other interest revenue			28				27				25				22				30				1				(2	)
Interest expense			12				13				13				13				14				(1	)			(2	)
Net financing revenue			16				14				12				9				16				2				-
Other revenue
Insurance premiums and service revenue earned			236				237				233				243				246				(1	)			(10	)
Other gain/(loss) on investments, net			(5	)			29				33				36				39				(34	)			(44	)
Other income, net of losses			2				2				2				1				2				-				-
Total other revenue			233				268				268				280				287				(35	)			(54	)
Total net revenue			249				282				280				289				303				(33	)			(54	)
Noninterest expense
Compensation and benefits expense			18				16				19				17				15				2				3
Insurance losses and loss adjustment expenses			61				122				56				57				97				(61	)			(36	)
Other operating expenses			130				129				127				129				131				1				(1	)
Total noninterest expense			209				267				202				203				243				(58	)			(34	)
Income (loss) from cont. ops before income tax expense		$	40			$	15			$	78			$	86			$	60			$	25			$	(20	)
Memo: Income Statement (Managerial View)
Insurance premiums and other income
Insurance premiums and service revenue earned		$	236			$	237			$	233			$	243			$	246			$	(1	)		$	(10	)
Investment income			9				41				43				44				53				(32	)			(44	)
Other income			4				4				4				2				4				-				-
Total insurance premiums and other income			249				282				280				289				303				(33	)			(54	)
Expense
Insurance losses and loss adjustment expenses			61				122				56				57				97				(61	)			(36	)
Acquisition and underwriting expenses
Compensation and benefit expense			18				16				19				17				15				2				3
Insurance commission expense			95				95				93				95				95				0				0
Other expense			35				34				34				34				36				1				(1	)
Total acquisition and underwriting expense			148				145				146				146				146				3				2
Total expense			209				267				202				203				243				(58	)			(34	)
Income (loss) from cont. ops before income tax expense		$	40			$	15			$	78			$	86			$	60			$	25			$	(20	)
Balance Sheet (Period-End)
Cash, trading and investment securities		$	4,991			$	5,312			$	5,327			$	5,313			$	5,296			$	(321	)		$	(305	)
Premiums receivable and other insurance assets			1,805				1,769				1,732				1,706				1,688				36				117
Other assets			201				179				183				171				194				22				7
Total assets		$	6,997			$	7,260			$	7,242			$	7,190			$	7,178			$	(263	)		$	(181	)
Key Statistics (Continuing Operations)
Written Premiums
Dealer Products & Services (1)		$	254			$	263			$	239			$	248			$	265			$	(9	)		$	(11	)
Corporate			0				0				0				0				0				0				(0	)
Total written premiums and revenue (1)		$	254			$	263			$	239			$	248			$	265			$	(9	)		$	(11	)
Loss ratio			25.7	%			51.2	%			23.8	%			23.1	%			39.3	%
Underwriting expense ratio			62.0	%			61.0	%			62.1	%			59.9	%			59.1	%
Combined ratio			87.7	%			112.2	%			85.9	%			83.0	%			98.4	%

(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		3Q 15				2Q 15				1Q 15				4Q 14				3Q 14				2Q 15				3Q 14
Net financing revenue
Total financing revenue and other interest income		$	81			$	70			$	70			$	65			$	68			$	11			$	13
Interest expense			61				55				55				57				59				6				2
Net financing revenue			20				15				15				8				9				5				11
Gain on mortgage loans, net			9				4				66				-				-				5				9
Other income, net of losses			1				2				2				4				-				(1	)			1
Total other revenue			10				6				68				4				-				4				10
Total net revenue			30				21				83				12				9				9				21
Provision for loan losses			6				3				(5	)			(14	)			(7	)			3				13
Noninterest expense
Compensation and benefits expense			3				2				3				2				3				1				-
Representation and warranty expense			(3	)			(9	)			-				(11	)			-				6				(3	)
Other operating expense			17				17				16				14				16				0				1
Total noninterest expense			17				10				19				5				19				7				(2	)
Income (loss) from cont. ops before income tax expense		$	7			$	8			$	69			$	21			$	(3	)		$	(1	)		$	10
Balance Sheet (Period-End)
Loans held-for-sale		$	-			$	46			$	42			$	452			$	3			$	(46	)		$	(3	)
Finance receivables and loans, net:
Consumer loans			9,770				9,212				7,653				7,474				7,595				558				2,175
Allowance for loan losses			(119	)			(119	)			(119	)			(152	)			(283	)			-				164
Total finance receivables and loans, net			9,651				9,093				7,534				7,322				7,312				558				2,339
Other assets (1)			121				110				118				110				87				11				34
Total assets		$	9,772			$	9,249			$	7,694			$	7,884			$	7,402			$	523			$	2,370

(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		3Q 15				2Q 15				1Q 15				4Q 14				3Q 14				2Q 15				3Q 14
Net financing revenue
Total financing revenue and other interest income		$	98			$	94			$	89			$	88			$	89			$	4			$	9
Interest expense
Core original issue discount amortization (1)			11				11				10				36				47				1				(35	)
Other interest expense			23				46				65				37				28				(24	)			(6	)
Total interest expense			34				57				75				73				75				(23	)			(41	)
Net financing revenue			64				37				14				15				14				27				50
Other revenue
Loss on extinguishment of debt			-				(156	)			(198	)			(156	)			-				156				-
Other gain on investments, net			11				16				22				16				6				(5	)			5
Other income, net of losses (2)			15				22				31				2				13				(7	)			2
Total other (loss) revenue			26				(118	)			(145	)			(138	)			19				144				7
Total net revenue			90				(81	)			(131	)			(123	)			33				171				57
Provision for loan losses			4				5				(6	)			(6	)			-				(1	)			4
Noninterest expense
Compensation and benefits expense			93				95				107				105				111				(2	)			(18	)
Other operating expense (3)			(30	)			(20	)			(36	)			8				(26	)			(10	)			(4	)
Total noninterest expense			63				75				71				113				85				(12	)			(22	)
Loss from cont. ops before income tax expense		$	23			$	(161	)		$	(196	)		$	(230	)		$	(52	)		$	184			$	75
Balance Sheet (Period-End)
Cash, trading and investment securities		$	18,962			$	19,655			$	20,154			$	16,368			$	17,083			$	(693	)		$	1,879
Loans held-for-sale			37				36				17				36				-				1				37
Finance receivables and loans, net
Consumer loans			107				69				68				35				16				38				91
Commercial loans (4)			2,266				2,131				1,987				1,865				1,738				135				528
Allowance for loan losses			(47	)			(40	)			(36	)			(42	)			(47	)			(7	)			-
Total finance receivables and loans, net			2,326				2,160				2,019				1,858				1,707				166				619
Other assets			4,168				4,505				5,249				5,304				4,888				(337	)			(720	)
Total assets		$	25,493			$	26,356			$	27,439			$	23,566			$	23,678			$	(863	)		$	1,815
OID Amortization Schedule (5)						2015				2016				2017 and After
Remaining Core OID Amortization (as of 9/30/2015)						$	12			$	55			Avg = $52/yr

(1) Does not include accelerated OID expense of $7 million in 2Q15, $7 million in 1Q15 and $6 million in 4Q14, 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 $168 million for 3Q15, $161 million for 2Q15, $181 million for 1Q15, $167 million for 4Q14, and $172 million in 3Q14. 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)		3Q 15				2Q 15				1Q 15				4Q 14				3Q 14				2Q 15				3Q 14
Ending loan balance		$	107,990			$	105,172			$	99,856			$	99,947			$	99,517			$	2,818			$	8,473
30+ Accruing DPD		$	1,754			$	1,474			$	1,157			$	1,607			$	1,452			$	280			$	301
30+ Accruing DPD %			1.6	%			1.4	%			1.2	%			1.6	%			1.5	%
Non-performing loans (NPLs)		$	637			$	642			$	593			$	645			$	621			$	(6	)		$	16
Net charge-offs (NCOs)		$	161			$	100			$	150			$	170			$	149			$	61			$	12
Net charge-off rate (2)			0.6	%			0.4	%			0.6	%			0.7	%			0.6	%
Provision for loan losses		$	211			$	140			$	116			$	155			$	102			$	71			$	109
Allowance for loan losses (ALLL)		$	1,018			$	974			$	933			$	977			$	1,113			$	44			$	(95	)
ALLL as % of Loans (3)			0.9	%			0.9	%			0.9	%			1.0	%			1.1	%
ALLL as % of NPLs (3)			159.9	%			151.6	%			157.5	%			151.5	%			179.2	%
ALLL as % of NCOs (3)			158.2	%			243.8	%			155.0	%			143.5	%			186.8	%
U.S. Auto Delinquencies - HFI Retail Contract Amount (4)
Delinquent contract $		$	1,656			$	1,389			$	1,076			$	1,543			$	1,338			$	267			$	318
% of retail contract $ outstanding			2.60	%			2.29	%			1.87	%			2.73	%			2.28	%
U.S. Auto Annualized Net Charge-Offs - HFI Retail Contract Amount
Net charge-offs		$	156			$	96			$	132			$	160			$	137			$	61			$	19
% of avg. HFI assets			1.01	%			0.65	%			0.93	%			1.10	%			0.93	%
U.S. Auto Annualized Net Charge-Offs - HFI Commercial Contract Amount
Net charge-offs		$	0			$	1			$	(1	)		$	(0	)		$	0			$	(1	)		$	(0	)
% of avg. HFI assets			0.00	%			0.01	%			-0.01	%			0.00	%			0.00	%

(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		3Q 15				2Q 15				1Q 15				4Q 14				3Q 14				2Q 15				3Q 14
Allowance for loan losses		$	804			$	767			$	711			$	685			$	693			$	37			$	111
Total consumer loans (2)		$	63,610			$	60,786			$	57,447			$	56,570			$	58,675			$	2,824			$	4,936
Coverage ratio			1.3	%			1.3	%			1.2	%			1.2	%			1.2	%
Commercial
Allowance for loan losses		$	48			$	48			$	67			$	98			$	90			$	0			$	(42	)
Total commercial loans		$	32,322			$	33,026			$	32,753			$	34,022			$	31,492			$	(704	)		$	830
Coverage ratio			0.1	%			0.1	%			0.2	%			0.3	%			0.3	%
Mortgage (1)
Consumer
Allowance for loan losses		$	119			$	119			$	119			$	152			$	283			$	0			$	(164	)
Total consumer loans		$	9,769			$	9,211			$	7,652			$	7,473			$	7,594			$	558			$	2,175
Coverage ratio			1.2	%			1.3	%			1.6	%			2.0	%			3.7	%
Corporate and Other (1)(3)
Allowance for loan losses		$	47			$	40			$	36			$	42			$	47			$	6			$	(0	)
Total commercial loans		$	2,289			$	2,149			$	2,004			$	1,882			$	1,756			$	140			$	533
Coverage ratio			2.0	%			1.9	%			1.8	%			2.2	%			2.7	%

(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 $107 million Corp. Treasury hedging activity related to domestic consumer auto outstandings in 3Q15, $69 million in 2Q15, $68 million in 1Q15, $35 million in 4Q14, and $16 million in 3Q14

(3) Includes Insurance

 

 

ALLY FINANCIAL INC. CAPITAL

 

($ in billions)

 

		QUARTERLY TRENDS																				CHANGE VS.
		Basel III Transition												Basel I
Capital (1)		3Q 15				2Q 15				1Q 15				4Q 14				3Q 14				2Q 15				3Q 14
Risk-weighted assets		$	133.8			$	134.0			$	130.1			$	130.6			$	128.2			$	(0.2	)		$	5.6
Common Equity Tier 1 (CET1) capital ratio (Tier 1 common prior to 1Q15)			10.0	%			9.8	%			10.9	%			9.6	%			9.7	%
Tier 1 capital ratio			12.0	%			11.7	%			13.2	%			12.5	%			12.7	%
Total capital ratio			12.9	%			12.6	%			14.1	%			13.2	%			13.5	%
Tangible common equity / Tangible assets			8.8	%			8.6	%			9.5	%			9.3	%			9.3	%
Tangible common equity / Risk-weighted assets			10.3	%			10.0	%			11.3	%			10.8	%			10.8	%
Shareholders’ equity		$	14.6			$	14.3			$	15.9			$	15.4			$	15.2			$	0.3			$	(0.6	)
less: Preferred equity			(0.8	)			(0.8	)			(1.3	)			(1.3	)			(1.3	)			-				0.5
Disallowed DTA			(0.4	)			(0.4	)			(0.5	)			(1.3	)			(1.4	)			-				1.0
Certain AOCI items and other adjustments			-				0.1				-				(0.2	)			(0.1	)			(0.1	)			0.1
Common Equity Tier 1 capital (2)		$	13.4			$	13.2			$	14.2			$	12.6			$	12.4			$	0.2			$	1.0
Common Equity Tier 1 capital		$	13.4			$	13.2			$	14.2			$	12.6			$	12.4			$	0.2			$	1.0
add: Preferred equity			0.7				0.7				1.1				1.3				1.3				-				(0.6	)
Trust preferred securities			2.5				2.5				2.5				2.5				2.5				-				-
less: Other adjustments			(0.6	)			(0.7	)			(0.7	)			-				-				0.1				(0.6	)
Tier 1 capital		$	16.1			$	15.7			$	17.1			$	16.4			$	16.2			$	0.4			$	(0.1	)
Tier 1 capital		$	16.1			$	15.7			$	17.1			$	16.4			$	16.2			$	0.4			$	(0.1	)
add: Qualifying subordinated debt and redeemable preferred stock			0.3				0.3				0.4				0.2				0.2				-				0.1
Allowance for loan and lease losses includible in Tier 2 capital and other adjustments			1.0				0.9				0.9				0.7				0.8				0.1				0.2
Total capital		$	17.3			$	16.9			$	18.4			$	17.3			$	17.3			$	0.4			$	-
Total shareholders' equity		$	14.6			$	14.3			$	15.9			$	15.4			$	15.2			$	0.3			$	(0.6	)
less: Preferred equity			(0.8	)			(0.8	)			(1.3	)			(1.3	)			(1.3	)			-				0.5
Goodwill and intangible assets			-				-				-				-				-				-				-
Tangible common equity (3)		$	13.8			$	13.5			$	14.7			$	14.1			$	13.9			$	0.3			$	(0.1	)
Total assets		$	156.1			$	156.5			$	153.5			$	151.8			$	149.2			$	(0.4	)		$	6.9
less: Goodwill and intangible assets			-				-				-				-				-				-				-
Tangible assets		$	156.1			$	156.4			$	153.5			$	151.8			$	149.2			$	(0.3	)		$	6.9

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)

 

		9/30/2015								6/30/2015								9/30/2014
Available Liquidity		Parent (1)				Ally Bank				Parent (1)				Ally Bank				Parent (1)				Ally Bank
Cash and cash equivalents (2)		$	2.5			$	2.4			$	2.6			$	2.8			$	2.9			$	2.2
Highly liquid securities (3)			1.8				6.6				1.4				6.9				2.7				6.1
Current committed unused capacity			1.3				0.2				1.1				0.2				4.5				0.5
Subtotal		$	5.6			$	9.2			$	5.1			$	9.9			$	10.1			$	8.8
Ally Bank intercompany loan (4)			-				-				-				-				1.3				(1.3	)
Total Current Available Liquidity		$	5.6			$	9.2			$	5.1			$	9.9			$	11.4			$	7.5

 

Unsecured Long-Term Debt Maturity Profile		2015				2016				2017				2018				2019				2020 and After
Consolidated remaining maturities (5)		$	0.0			$	1.9			$	4.4			$	3.0			$	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 unencumbered 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

(5) Excludes OID

 

 

ALLY FINANCIAL INC. NET INTEREST MARGIN AND DEPOSITS

 

($ in millions)

 

		QUARTERLY TRENDS																				CHANGE VS.
Average Balance Details		3Q 15				2Q 15				1Q 15				4Q 14				3Q 14				2Q 15				3Q 14
Retail Auto Loan		$	62,115			$	60,436			$	58,373			$	58,544			$	59,275			$	1,679			$	2,840
Auto Lease (net of dep)			17,519				18,520				19,405				19,479				19,114				(1,001	)			(1,595	)
Commercial Auto			31,726				32,547				32,429				33,218				31,367				(821	)			359
Corporate Finance			2,309				2,114				1,995				1,864				1,721				195				588
Mortgage			9,564				8,363				8,006				7,670				7,728				1,201				1,836
Cash, Securities and Other			21,413				21,087				20,300				19,733				20,050				326				1,363
Total Earning Assets		$	144,646			$	143,067			$	140,508			$	140,508			$	139,255			$	1,579			$	5,391
Interest Revenue		$	1,567			$	1,517			$	1,457			$	1,469			$	1,554			$	50			$	13
LT Unsecured Debt		$	21,013			$	22,701			$	22,969			$	24,602			$	24,586			$	(1,688	)		$	(3,573	)
Secured Debt			42,193				42,230				40,608				41,311				41,528				(37	)			665
Deposits			62,901				61,323				59,464				57,400				56,376				1,578				6,525
Other Borrowings (2)			11,889				9,011				9,216				9,595				9,171				2,878				2,718
Total Funding Sources (1)		$	137,996			$	135,265			$	132,257			$	132,908			$	131,661			$	2,731			$	6,335
Interest Expense		$	593			$	597			$	602			$	636			$	624			$	(4	)		$	(31	)
Net Financing Revenue (3)		$	974			$	920			$	855			$	833			$	930			$	54			$	44
Net Interest Margin (yield details)
Retail Auto Loan			5.2	%			5.3	%			5.3	%			5.2	%			5.2	%
Auto Lease (net of dep)			6.8	%			6.4	%			5.7	%			5.5	%			7.3	%
Commercial Auto			2.9	%			2.9	%			3.0	%			3.0	%			3.1	%
Corporate Finance			6.2	%			6.6	%			6.9	%			6.4	%			6.5	%
Mortgage			3.4	%			3.4	%			3.5	%			3.4	%			3.4	%
Cash, Securities and Other			1.8	%			1.7	%			1.7	%			1.7	%			1.8	%
Total Earning Assets			4.3	%			4.3	%			4.2	%			4.1	%			4.4	%
LT Unsecured Debt			4.9	%			5.0	%			5.2	%			5.3	%			5.2	%
Secured Debt			1.2	%			1.2	%			1.2	%			1.2	%			1.2	%
Deposits			1.1	%			1.2	%			1.2	%			1.2	%			1.2	%
Other Borrowings (2)			0.8	%			0.7	%			0.7	%			0.7	%			0.7	%
Total Funding Sources (1)			1.7	%			1.8	%			1.9	%			1.9	%			1.9	%
NIM (1)			2.7	%			2.6	%			2.5	%			2.4	%			2.7	%
Key Deposit Statistics
Average retail CD maturity (months)			32.0				32.1				31.6				31.6				31.3				(0.1	)			0.7
Average retail deposit rate			1.14	%			1.15	%			1.17	%			1.16	%			1.16	%
Ally Financial Deposits Levels
Ally Bank retail		$	53,501			$	51,750			$	50,633			$	47,954			$	46,718			$	1,751			$	6,783
Ally Bank brokered			10,201				9,861				9,853				9,885				9,692				339				508
Other			339				336				389				384				441				4				(102	)
Total deposits		$	64,041			$	61,947			$	60,875			$	58,222			$	56,851			$	2,094			$	7,190
Ally Bank Deposit Mix
Retail CD			34.0	%			36.3	%			37.9	%			40.1	%			41.4	%
MMA/OSA/Checking			50.0	%			47.7	%			45.8	%			42.8	%			41.5	%
Brokered			16.0	%			16.0	%			16.3	%			17.1	%			17.2	%

(1) Excludes OID

(2) Includes Demand Notes, FHLB and Repurchase Agreements

(3) Excludes dividend income from equity investments

 

 

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

 

($ in billions)

 

		HISTORICAL QUARTERLY TRENDS
Loan Value		3Q 15				2Q 15				1Q 15				4Q 14				3Q 14
Gross carry value		$	9.8			$	9.2			$	7.7			$	7.5			$	7.6
Net carry value		$	9.7			$	9.1			$	7.5			$	7.3			$	7.3
Estimated Pool Characteristics
Ongoing (post 1/1/2009)			64.4	%			60.7	%			50.9	%			46.9	%			38.7	%
Legacy (pre 1/1/2009)			35.6	%			39.3	%			49.1	%			53.1	%			61.3	%
% Second lien			6.8	%			7.7	%			9.8	%			10.5	%			10.8	%
% Interest only			7.3	%			9.1	%			11.1	%			12.5	%			13.4	%
% 30+ Day delinquent (1)			2.1	%			2.2	%			2.8	%			3.0	%			3.8	%
% Low/No documentation			8.0	%			8.8	%			11.1	%			12.1	%			14.3	%
% Non-primary residence			4.8	%			4.9	%			3.8	%			3.7	%			3.8	%
Refreshed FICO			753				751				748				734				726
Wtd. Avg. LTV/CLTV (2)			66.5	%			67.7	%			68.6	%			71.5	%			73.1	%
Higher risk geographies (3)			43.0	%			42.7	%			41.5	%			41.1	%			40.5	%

(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; calculation only includes first liens

(3) Includes CA, FL, MI and AZ

 

 

ALLY FINANCIAL INC. DISCONTINUED OPERATIONS

 

($ in millions)

 

		QUARTERLY TRENDS																				CHANGE VS.
Impact of Discontinued Operations (1)		3Q 15				2Q 15				1Q 15				4Q 14				3Q 14				2Q 15				3Q 14
Auto Finance		$	(4	)		$	(4	)		$	454			$	23			$	29			$	(0	)		$	(33	)
Insurance			-				3				-				0				6				(3	)			(6	)
Corporate and Other			2				14				6				6				16				(13	)			(14	)
Consolidated pretax income		$	(2	)		$	14			$	460			$	29			$	51			$	(16	)		$	(53	)
Tax expense (benefit)			4				(0	)			63				2				(78	)			4				82
Consolidated net income		$	(5	)		$	13			$	397			$	26			$	130			$	(18	)		$	(135	)
Assets of discontinued operations held-for-sale		$	-			$	-			$	-			$	634			$	603			$	-			$	(603	)

(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		3Q 15				2Q 15				1Q 15				4Q 14				3Q 14				2Q 15				3Q 14
Net income (loss)		$	268			$	182			$	576			$	177			$	423			$	86			$	(155	)
less: Preferred stock dividends			38				1,251				67				68				67				(1,213	)			(29	)
Net income (loss) available to common shareholders		$	230			$	(1,069	)		$	509			$	109			$	356			$	1,299			$	(126	)
Weighted-average shares outstanding - basic (1)			483,073				482,847				482,248				481,861				481,611				226				1,462
Weighted-average shares outstanding - diluted (1)(2)			484,399				483,687				482,782				483,091				482,506				712				1,893
Net income (loss) per share - basic (1)		$	0.48			$	(2.22	)		$	1.06			$	0.23			$	0.74			$	(3.28	)		$	2.76
Net income (loss) per share - diluted (1)(2)		$	0.47			$	(2.22	)		$	1.06			$	0.23			$	0.74			$	2.69			$	(0.27	)
Adjusted Tangible Book Value(3) ($ billions)
GAAP shareholder's equity		$	14.6			$	14.3			$	15.9			$	15.4			$	15.2			$	0.3			$	(0.6	)
Preferred equity and goodwill			(0.8	)			(0.8	)			(1.3	)			(1.3	)			(1.3	)			-				0.4
Tangible common equity			13.8				13.5				14.7				14.1				13.9				0.3				(0.1	)
Tax-effected bond OID (4)			(0.9	)			(0.9	)			(0.9	)			(0.9	)			(0.9	)			0.0				0.0
Series G discount			(1.2	)			(1.2	)			(2.3	)			(2.3	)			(2.3	)			-				1.2
Adjusted tangible book value		$	11.7			$	11.4			$	11.4			$	10.9			$	10.6			$	0.3			$	1.1
Adjusted Tangible Book Value Per Share(3)
GAAP shareholder's equity		$	30.3			$	29.7			$	33.1			$	32.1			$	31.7			$	0.6			$	(1.4	)
Preferred equity and goodwill			(1.7	)			(1.7	)			(2.7	)			(2.7	)			(2.7	)			(0.0	)			0.9
Tangible common equity			28.6				27.9				30.4				29.4				29.0				0.6				(0.4	)
Tax-effected bond OID (4)			(1.8	)			(1.8	)			(1.8	)			(1.9	)			(1.9	)			0.0				0.1
Series G discount			(2.4	)			(2.4	)			(4.9	)			(4.9	)			(4.9	)			(0.0	)			2.5
Adjusted tangible book value per share		$	24.3			$	23.7			$	23.7			$	22.7			$	22.2			$	0.6			$	2.1

(1) Includes shares related to share-based compensation that vested but were not yet issued

(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		3Q 15				2Q 15				1Q 15				4Q 14				3Q 14				2Q 15				3Q 14
Pre-tax income (loss) from continuing operations		$	417			$	263			$	282			$	187			$	420			$	154			$	(3	)
add: Core original issue discount expense			11				18				17				42				47				(6	)			(35	)
Repositioning items			2				154				190				167				-				(152	)			2
Core pre-tax income (ex. repositioning)		$	431			$	435			$	490			$	396			$	467			$	(4	)		$	(36	)
Normalized income tax expense at 34%			146				148				166				135				159				(1	)			(12	)
Core net income			284				287				323				262				308				(3	)			(24	)
Preferred dividends (Series A & G)			38				58				67				68				67				(20	)			(29	)
Operating net income available to common shareholders (1)		$	246			$	229			$	256			$	194			$	241			$	18			$	6
Tangible common equity (2)		$	13,606			$	14,053			$	14,384			$	14,012			$	13,752			$	(447	)		$	(146	)
less: Unamortized core original issue discount			1,322				1,333				1,345				1,369				1,411				(12	)			(90	)
Net deferred tax asset			1,540				1,632				1,720				1,797				1,806				(92	)			(266	)
Normalized common equity (1)(3)		$	10,745			$	11,087			$	11,319			$	10,846			$	10,534			$	(342	)		$	210
Core ROTCE (1)			9.2	%			8.2	%			9.1	%			7.1	%			9.1	%
Adjusted Efficiency Ratio Calculation
Total noninterest expense		$	674			$	724			$	695			$	672			$	742			$	(50	)		$	(68	)
less: Rep and warrant expense			(3	)			(9	)			-				(11	)			-				6				(3	)
Insurance expense			209				267				202				203				243				(58	)			(34	)
Repositioning items			2				4				-				19				-				(2	)			2
Numerator		$	465			$	462			$	493			$	461			$	499			$	4			$	(33	)
Total net revenue		$	1,302			$	1,127			$	1,093			$	1,014			$	1,264			$	175			$	38
add: Original issue discount			11				18				17				42				47				(6	)			(35	)
Repositioning			-				150				190				148				-				(150	)			-
less: Insurance revenue			249				282				280				289				303				(33	)			(54	)
Denominator		$	1,064			$	1,013			$	1,021			$	916			$	1,008			$	52			$	57
Adjusted Efficiency Ratio (1)			44	%			46	%			48	%			50	%			49	%
Noninterest Expense
Compensation and benefits		$	235			$	236			$	255			$	237			$	241			$	(1	)		$	(6	)
Technology and communications			65				64				69				79				77				1				(12	)
Professional services			24				25				20				26				21				(1	)			3
Servicing expenses (4)			51				50				48				52				54				0				(4	)
Advertising and marketing			26				23				31				30				27				3				(1	)
Other controllable expenses (5)			50				50				47				52				50				0				1
Controllable Expense		$	449			$	448			$	469			$	478			$	469			$	1			$	(20	)
Other Noninterest Expense			222				272				226				176				273				(50	)			(50	)
Total Noninterest Expense (ex. repositioning)		$	672			$	720			$	695			$	653			$	742			$	(48	)		$	(70	)
Repositioning expenses			2				4				-				19				-				(2	)			2
Total Noninterest Expense		$	674			$	724			$	695			$	672			$	742			$	(50	)		$	(68	)

(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