Ally Financial : Fourth Quarter 2018 Financial Presentation

Ally Financial Inc.

4Q 2018 Earnings Review

January 30, 2019

Forward-Looking Statements and Additional Information

This presentation and related communications should be read in conjunction with the financial statements, notes, and other information contained in our 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 and third-party data available at the time of the presentation or related communication.

This presentation and related communications contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements can be identified by the fact that they do not relate strictly to historical or current facts-such as our statements about targets and expectations for various financial and operating metrics. Forward-looking statements often use words such as "believe," "expect," "anticipate," "intend," "pursue," "seek," "continue," "estimate," "project," "outlook," "forecast," "potential," "target," "objective," "trend," "plan," "goal," "initiative," "priorities," or other words of comparable meaning or future-tense or conditional verbs such as "may," "will," "should,"

"would," or "could." Forward-looking statements convey our expectations, intentions, or forecasts about future events, circumstances, or results. All forward-looking statements, by their nature, are subject to assumptions, risks, and uncertainties, which may change over time and many of which are beyond our control. You should not rely on any forward-looking statement as a prediction or guarantee about the future. Actual future objectives, strategies, plans, prospects, performance, conditions, or results may differ materially from those set forth in any forward-looking statement. Some of the factors that may cause actual results or other future events or circumstances to differ from those in forward-looking statements are described in our Annual Report on Form 10-K for the year ended December 31, 2017, our subsequent Quarterly Reports on Form 10-Q or Current Reports on Form 8-K, or other applicable documents that are filed or furnished with the U.S. Securities and Exchange Commission (collectively, our "SEC filings"). Any forward-looking statement made by us or on our behalf speaks only as of the date that it was made. We do not undertake to update any forward-looking statement to reflect the impact of events, circumstances, or results that arise after the date that the statement was made, except as required by applicable securities laws. You, however, should consult further disclosures (including disclosures of a forward-looking nature) that we may make in any subsequent SEC filings.

This presentation and related communications contain specifically identified non-GAAP financial measures, which supplement the results that are reported according to generally accepted accounting principles ("GAAP"). These non-GAAP financial measures may be useful to investors but

should not be viewed in isolation from, or as a substitute for, GAAP results. Differences between non-GAAP financial measures and comparable GAAP financial measures are reconciled in the presentation.

Our use of the term "loans" describes all of the products associated with our direct and indirect lending activities. The specific products include loans, retail installment sales contracts, lines of credit, leases, and other financing products. The term "lend" or "originate" refers to our direct

origination of loans or our purchase or acquisition of loans.

GAAP and Core Results - Annual

($ millions except per share data)

2018

2017

2016

2015

2014

GAAP net income (loss) attributable to common shareholders ("NIAC")

Core net income attributable to common shareholders (1)(2)

GAAP earnings per common share ("EPS") (diluted, NIAC)

Adjusted EPS (1)(3)

$ $ $ $

1,263 1,427

• $ 929

• $ 1,091

$ $

1,037 1,043

• $ (1,282)

  • $ 882

• $ 967

• $ 812

Return (net income) on GAAP shareholder's equity

Core ROTCE (1)(4)

2.95 3.34 9.4% 12.3%

$ $

2.04 2.39 6.9% 9.8%

$ $

2.15 2.16 8.0% 10.0%

• $ (2.66)

  • $ 1.83

• $ 2.00

• $ 1.68

8.9% 7.8%

9.4% 7.9%

GAAP common shareholder's equity per share

Adjusted tangible book value per share (1)(5)

$ $

32.8

29.9

$ $

30.9

28.1

$ $

28.5

26.2

$ $

26.4

• $ 29.5

  24.6

• $ 22.7

Efficiency Ratio

Adjusted Efficiency Ratio (1)(6)

56.2% 47.6%

53.9% 45.8%

54.1% 45.4%

56.8% 63.4%

45.3% 50.8%

GAAP total net revenue

Adjusted total net revenue (1)(7)

$ $

5,804 6,011

$ $

5,765 5,836

$ $

5,437 5,498

$ $

4,861 5,262

• $ 4,651

• $ 4,985

• (1) The following are non-GAAP financial measures which Ally believes are important to the reader of the Consolidated Financial Statements, but which are supplemental to and not a substitute for GAAP measures: Adjusted Earnings per Share (Adjusted EPS), Core Pre-Tax Income, Core Net Income Attributable to Common Shareholders, Core Return on Tangible Common Equity (Core ROTCE), Adjusted Efficiency Ratio, fully phased-in Common Equity Tier 1 (CET1) capital, Adjusted Total Net Revenue, Net Financing Revenue, excluding Core OID, Adjusted Other Revenue, Core original issue discount (Core OID) amortization expense, Core outstanding original issue discount balance (Core OID balance), and Adjusted Tangible Book Value per Share (Adjusted TBVPS). These measures are used by management and we believe are useful to investors in assessing the company's operating performance and capital. Refer to the Definitions of Non-GAAP Financial Measures and Other Key Terms, and Reconciliation to GAAP later in this document.

• (2) Core net income attributable to common shareholders is a non-GAAP financial measure that serves as the numerator in the calculations of Adjusted EPS and Core ROTCE and that, like those measures, is believed by management to help the reader better understand the operating performance of the core businesses and their ability to generate earnings. See pages 31 and 32 for calculation methodology and details.

• (3) Adjusted earnings per share (Adjusted EPS) is a non-GAAP financial measure that adjusts GAAP EPS for revenue and expense items that are typically strategic in nature or that management otherwise does not view as reflecting the operating performance of the company. Management believes Adjusted EPS can help the reader better understand the operating performance of the core businesses and their ability to generate earnings. See page 32 for calculation methodology and details.

• (4) Core return on tangible common equity (Core ROTCE) is a non-GAAP financial measure that management believes is helpful for readers to better understand the ongoing ability of the company to generate returns on its equity base that supports core operations. For purposes of this calculation, tangible common equity is adjusted for Core OID balance and the net deferred tax asset. See page 36 for calculation methodology and details.

• (5) Adjusted tangible book value per share (Adjusted TBVPS) is a non-GAAP financial measure that reflects the book value of equity attributable to shareholders even if tax-effected Core OID balance were accelerated immediately through the financial statements. As a result, management believes Adjusted TBVPS provides the reader with an assessment of value that is more conservative than GAAP common shareholder's equity per share. See page 34 for calculation methodology and details.

• (6) Adjusted efficiency ratio is a non-GAAP financial measure that management believes is helpful to readers in comparing the efficiency of its core banking and lending businesses with those of its peers. Adjusted efficiency ratio generally adjusts for Insurance segment revenue and expense, rep and warrant expense and Core OID. See page 38 for calculation methodology and details.

• (7) Adjusted total net revenue is a non-GAAP financial measure that adjusts GAAP total net revenue for Core OID and for change in the fair value of equity securities due to the implementation of ASU 2016-01, effective 1/1/18, which requires change in the fair value of equity securities to be recognized in current period net income as compared to prior periods in which such adjustments were recognized through other comprehensive income, a component of equity. See page 45 for calculation methodology and details.

GAAP and Core Results - Quarterly

($ millions except per share data)

4Q 18

3Q 18

2Q 18

1Q 18

4Q 17

GAAP net income attributable to common shareholders ("NIAC")

Core net income attributable to common shareholders (1)(2)

GAAP earnings per common share ("EPS") (diluted, NIAC)

Adjusted EPS (1)(3)

$ $ $ $

Return (net income) on GAAP shareholder's equity

Core ROTCE (1)(4)

290 382 0.70 0.92 8.8% 13.4%

$ $ $ $

374 386 0.88 0.91

$ $ $ $

349 358 0.81 0.83

$ $ $ $

250 300 0.57 0.68

• $ 181

• $ 310

• $ 0.41

• $ 0.70

11.4% 13.7%

10.6% 12.8%

7.5% 5.3%

10.6% 10.8%

GAAP common shareholder's equity per share

Adjusted tangible book value per share (1)(5)

$ $

32.8

29.9

$ $

31.4

28.6

$ $

30.9

28.1

$ $

30.2

• $ 30.9

  27.4

• $ 28.1

Efficiency Ratio

Adjusted Efficiency Ratio (1)(6)

55.9% 46.9%

53.6% 46.0%

57.5% 47.7%

58.0% 52.2%

50.1% 46.4%

GAAP total net revenue

Adjusted total net revenue (1)(7)

$ $

1,438 1,556

$ $

1,505 1,521

$ $

1,458 1,471

$ $

1,403 1,463

• $ 1,473

• $ 1,492

• (1) The following are non-GAAP financial measures which Ally believes are important to the reader of the Consolidated Financial Statements, but which are supplemental to and not a substitute for GAAP measures: Adjusted Earnings per Share (Adjusted EPS), Core Pre-Tax Income, Core Net Income Attributable to Common Shareholders, Core Return on Tangible Common Equity (Core ROTCE), Adjusted Efficiency Ratio, fully phased-in Common Equity Tier 1 (CET1) capital, Adjusted Total Net Revenue, Net Financing Revenue, excluding Core OID, Adjusted Other Revenue, Core original issue discount (Core OID) amortization expense, Core outstanding original issue discount balance (Core OID balance), and Adjusted Tangible Book Value per Share (Adjusted TBVPS). These measures are used by management and we believe are useful to investors in assessing the company's operating performance and capital. Refer to the Definitions of Non-GAAP Financial Measures and Other Key Terms, and Reconciliation to GAAP later in this document.

• (2) Core net income attributable to common shareholders is a non-GAAP financial measure that serves as the numerator in the calculations of Adjusted EPS and Core ROTCE and that, like those measures, is believed by management to help the reader better understand the operating performance of the core businesses and their ability to generate earnings. See pages 31 and 33 for calculation methodology and details.

• (3) Adjusted earnings per share (Adjusted EPS) is a non-GAAP financial measure that adjusts GAAP EPS for revenue and expense items that are typically strategic in nature or that management otherwise does not view as reflecting the operating performance of the company. Management believes Adjusted EPS can help the reader better understand the operating performance of the core businesses and their ability to generate earnings. See page 33 for calculation methodology and details.

• (4) Core return on tangible common equity (Core ROTCE) is a non-GAAP financial measure that management believes is helpful for readers to better understand the ongoing ability of the company to generate returns on its equity base that supports core operations. For purposes of this calculation, tangible common equity is adjusted for Core OID balance and the net deferred tax asset. See page 37 for calculation methodology and details.

• (5) Adjusted tangible book value per share (Adjusted TBVPS) is a non-GAAP financial measure that reflects the book value of equity attributable to shareholders even if tax-effected Core OID balance were accelerated immediately through the financial statements. As a result, management believes Adjusted TBVPS provides the reader with an assessment of value that is more conservative than GAAP common shareholder's equity per share. See page 35 for calculation methodology and details.

• (6) Adjusted efficiency ratio is a non-GAAP financial measure that management believes is helpful to readers in comparing the efficiency of its core banking and lending businesses with those of its peers. Adjusted efficiency ratio generally adjusts for Insurance segment revenue and expense, rep and warrant expense and Core OID. See page 39 for calculation methodology and details.

• (7) Adjusted total net revenue is a non-GAAP financial measure that adjusts GAAP total net revenue for Core OID and for change in the fair value of equity securities due to the implementation of ASU 2016-01, effective 1/1/18, which requires change in the fair value of equity securities to be recognized in current period net income as compared to prior periods in which such adjustments were recognized through other comprehensive income, a component of equity. See page 45 for calculation methodology and details.

2018 Highlights

Solid business fundamentals underpinning strong earnings growth

P2018 Adjusted EPS(1) of $3.34 (+39% YoY) | Core ROTCE(1) of 12.3% (+256 bps YoY)

• ▪ Adjusted Total Net Revenue(1) of $6.0 billion, up $175 million YoY

P Auto optimization reflected in improved risk-adjusted returns

• ▪ 2018 consumer auto originations of $35.4 billion - 2018 estimated retail auto originated yield(2) of 7.07%

• ▪ Maintained consistent credit profile - 2018 retail auto net charge-off rate of 1.33%

• ▪ Insurance written premiums of $1.17 billion, up 18% YoY

PTotal deposits grew $12.9 billion YoY - ending at $106.2 billion

• ▪ 1.65 million retail deposit customers at year-end - increased 230k in 2018 (+16% YoY)

• ▪ 4Q 2018 retail deposit growth of $4.5 billion - highest quarterly growth ever

P Ongoing momentum in growth businesses and digital product offerings

• ▪ Corporate Finance pre-tax income up 26% YoY and held-for-investment loans up 19%

• ▪ Continued momentum in Ally Invest and Ally Home®

P2018 common shareholder distributions increased to $1.2 billion, up 26% YoY

• (1) Represents a non-GAAP financial measure. See pages 32, 36 and 45 for details.

• (2) Estimated Retail Auto Originated Yield is a forward-looking non-GAAP financial measure determined by calculating the estimated average annualized yield for loans originated during the period.