FIRST QUARTER 2019
FINANCIAL SUPPLEMENT
ALLY FINANCIAL INC.
FORWARD-LOOKING STATEMENTS AND ADDITIONAL INFORMATION
This document 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 document 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 statements about the outlook for various financial and operating metrics and statements about future capital allocation and actions. 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, 2018, 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 document 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.
Unless the context otherwise requires, the following definitions apply. The term "loans" means the following consumer and commercial products associated with our direct and indirect financing activities: loans, retail installment sales contracts, lines of credit, and other financing products excluding operating leases. The term "operating leases" means consumer- and commercial-vehicle lease agreements where Ally is the lessor and the lessee is generally not obligated to acquire ownership of the vehicle at lease-end or compensate Ally for the vehicle's residual value. The terms "lend," "finance," and "originate" mean our direct extension or origination of loans, our purchase or acquisition of loans, or our purchase of operating leases as applicable. The term "consumer" means all consumer products associated with our loan and operating-lease activities and all commercial retail installment sales contracts. The term "commercial" means all commercial products associated with our loan activities, other than commercial retail installment sales contracts.
1Q 2019 Preliminary Results | 2 |
ALLY FINANCIAL INC.
TABLE OF CONTENTS
Consolidated Results | Page(s) |
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 Finance | 12 |
Corporate Finance | 13 |
Corporate and Other | 14 |
Credit Related Information | 15-16 |
Supplemental Detail | |
Capital | 17 |
Liquidity | 18 |
Net Interest Margin and Deposits | 19 |
Ally Bank Consumer Mortgage HFI Portfolios | 20 |
Earnings Per Share Related Information | 21 |
Adjusted Tangible Book Per Share Related Information | 22 |
Core ROTCE Related Information | 23 |
Adjusted Efficiency Ratio Related Information | 24 |
1Q 2019 Preliminary Results | 3 |
ALLY FINANCIAL INC
CONSOLIDATED FINANCIAL HIGHLIGHTS
($ in millions, shares in thousands) | QUARTERLY TRENDS | CHANGE VS. | ||||||||||||||||||
Selected Income Statement Data | 1Q 19 | 4Q 18 | 3Q 18 | 2Q 18 | 1Q 18 | 4Q 18 | 1Q 18 | |||||||||||||
Net financing revenue (ex. Core OID) (1) | $ | 1,139 | $ | 1,163 | $ | 1,129 | $ | 1,115 | $ | 1,069 | $ | (25) | $ | 70 | ||||||
Core OID | (7) | (23) | (22) | (21) | (20) | 17 | 13 | |||||||||||||
Net financing revenue (as reported) | 1,132 | 1,140 | 1,107 | 1,094 | 1,049 | (8) | 83 | |||||||||||||
Other revenue (ex. change in the fair value of equity securities) (2) | 396 | 393 | 392 | 356 | 394 | 3 | 2 | |||||||||||||
Change in the fair value of equity securities (3) | 70 | (95) | 6 | 8 | (40) | 165 | 110 | |||||||||||||
Other revenue (as reported) | 466 | 298 | 398 | 364 | 354 | 168 | 112 | |||||||||||||
Provision for loan losses | 282 | 266 | 233 | 158 | 261 | 16 | 21 | |||||||||||||
Total noninterest expense (4) | 830 | 804 | 807 | 839 | 814 | 26 | 16 | |||||||||||||
Pre-tax income from continuing operations | 486 | 368 | 465 | 461 | 328 | 118 | 158 | |||||||||||||
Income tax expense | 111 | 79 | 91 | 113 | 76 | 32 | 35 | |||||||||||||
Income / (loss) from discontinued operations, net of tax | (1) | 1 | - | 1 | (2) | (2) | 1 | |||||||||||||
Net income attributable to common shareholders | $ | 374 | $ | 290 | $ | 374 | $ | 349 | $ | 250 | $ | 84 | $ | 124 | ||||||
Selected Balance Sheet Data (Period-End) | ||||||||||||||||||||
Total assets | $ | 180,117 | $ | 178,869 | $ | 173,101 | $ | 171,345 | $ | 170,021 | $ | 1,248 | $ | 10,096 | ||||||
Consumer loans | 89,211 | 87,240 | 86,501 | 85,604 | 84,002 | 1,971 | 5,209 | |||||||||||||
Commercial loans | 40,844 | 42,686 | 40,104 | 39,940 | 41,325 | (1,842) | (481) | |||||||||||||
Allowance for loan losses | (1,288) | (1,242) | (1,248) | (1,257) | (1,278) | (46) | (10) | |||||||||||||
Deposits | 113,299 | 106,178 | 101,379 | 98,734 | 97,446 | 7,121 | 15,853 | |||||||||||||
Total equity | 13,699 | 13,268 | 13,085 | 13,139 | 13,082 | 431 | 617 | |||||||||||||
Common Share Count | ||||||||||||||||||||
Weighted average basic (5) | 404,129 | 411,931 | 422,187 | 430,628 | 436,213 | (7,802) | (32,084) | |||||||||||||
Weighted average diluted (5) | 405,959 | 414,750 | 424,784 | 432,554 | 438,931 | (8,791) | (32,972) | |||||||||||||
Issued shares outstanding (period-end) | 399,761 | 404,900 | 416,591 | 425,752 | 432,691 | (5,139) | (32,930) | |||||||||||||
Per Common Share Data | ||||||||||||||||||||
Earnings per share (basic) (5) | $ | 0.93 | $ | 0.70 | $ | 0.89 | $ | 0.81 | $ | 0.57 | $ | 0.22 | $ | 0.35 | ||||||
Earnings per share (diluted) (5) | 0.92 | 0.70 | 0.88 | 0.81 | 0.57 | 0.22 | 0.35 | |||||||||||||
Adjusted earnings per share (6) | 0.80 | 0.92 | 0.91 | 0.83 | 0.68 | (0.12) | 0.12 | |||||||||||||
Book value per share | 34.3 | 32.8 | 31.4 | 30.9 | 30.2 | 1.5 | 4.0 | |||||||||||||
Tangible book value per share (7) | 33.6 | 32.1 | 30.7 | 30.2 | 29.6 | 1.5 | 4.0 | |||||||||||||
Adjusted tangible book value per share (7) | 31.4 | 29.9 | 28.6 | 28.1 | 27.4 | 1.5 | 4.0 | |||||||||||||
Select Financial Ratios | ||||||||||||||||||||
Net interest margin (as reported) | 2.67% | 2.66% | 2.67% | 2.68% | 2.64% | |||||||||||||||
Net interest margin (ex. Core OID) (8) | 2.69% | 2.72% | 2.72% | 2.74% | 2.69% | |||||||||||||||
Cost of funds | 2.70% | 2.60% | 2.45% | 2.30% | 2.16% | |||||||||||||||
Cost of funds (ex. Core OID) (8) | 2.66% | 2.52% | 2.38% | 2.23% | 2.09% | |||||||||||||||
Efficiency Ratio (9) | 51.9% | 55.9% | 53.6% | 57.5% | 58.0% | |||||||||||||||
Adjusted efficiency ratio (8)(9) | 48.9% | 46.9% | 46.0% | 47.7% | 50.1% | |||||||||||||||
Return on average assets (10) | 0.8% | 0.7% | 0.9% | 0.8% | 0.6% | |||||||||||||||
Return on average total equity (10) | 11.1% | 8.8% | 11.4% | 10.6% | 7.5% | |||||||||||||||
Return on average tangible common equity (10) | 11.3% | 9.0% | 11.7% | 10.9% | 7.7% | |||||||||||||||
Core ROTCE (11) | 10.9% | 13.4% | 13.7% | 12.8% | 10.6% | |||||||||||||||
Capital Ratios (12) | ||||||||||||||||||||
Common Equity Tier 1 (CET1) capital ratio | 9.3% | 9.1% | 9.4% | 9.4% | 9.3% | |||||||||||||||
Tier 1 capital ratio | 11.0% | 10.8% | 11.1% | 11.1% | 11.0% | |||||||||||||||
Total capital ratio | 12.5% | 12.3% | 12.7% | 12.7% | 12.6% | |||||||||||||||
Tier 1 leverage ratio | 9.0% | 9.0% | 9.2% | 9.2% | 9.3% |
(1)Represents a non-GAAP financial measure. Excludes Core OID. For more details refer to page 21.
(2)Represents a non-GAAP financial measure. Adjusted for change in the fair value of equity securities due to the implementation of ASU 2016-01, which requires change in the fair value of equity securities to be recognized in current period net income as compared to periods prior to 1/1/2018 in which such adjustments were recognized through other comprehensive income, a component of equity. For Non-GAAP calculation methodology and details see page 21.
(3)Change in fair value of equity securities impacts the Insurance and Corporate Finance segments. Excludes equity fair value adjustments related to ASU 2016-01, which requires change in the fair value of equity securities to be recognized in current period net income as compared to periods prior to 1/1/2018 in which such adjustments were recognized through other comprehensive income, a component of equity.
(4)Including but not limited to employee related expenses, commissions and provision for losses and loss adjustment expense related to the insurance business, information technology expenses, servicing expenses, facilities expenses, marketing expenses, and other professional and legal expenses.
(5)Includes shares related to share-based compensation that vested but were not yet issued.
(6)Represents a non-GAAP financial measure. For more details refer to page 21.
(7)Represents a non-GAAP financial measure. For more details refer to page 22.
(8)Represents a non-GAAP financial measure. Excludes Core OID. For more details refer to page 21.
(9)Represents a non-GAAP financial measure. For more details refer to page 24.
(10)Return metrics are annualized.
(11)Return metrics are annualized. Represents a non-GAAP financial measure. For more details refer to page 23.
(12)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.
1Q 2019 Preliminary Results | 4 |
ALLY FINANCIAL INC.
CONSOLIDATED INCOME STATEMENT
($ in millions) | QUARTERLY TRENDS | CHANGE VS. | ||||||||||||||||||
Financing revenue and other interest income | 1Q 19 | 4Q 18 | 3Q 18 | 2Q 18 | 1Q 18 | 4Q 18 | 1Q 18 | |||||||||||||
Interest and fees on finance receivables and loans | $ | 1,807 | $ | 1,790 | $ | 1,708 | $ | 1,647 | $ | 1,543 | $ | 17 | $ | 264 | ||||||
Interest on loans held-for-sale | 2 | 5 | 4 | 6 | - | (3) | 2 | |||||||||||||
Total interest and dividends on investment securities | 222 | 211 | 182 | 173 | 163 | 11 | 59 | |||||||||||||
Interest-bearing cash | 23 | 22 | 18 | 17 | 15 | 1 | 8 | |||||||||||||
Other earning assets | 18 | 15 | 16 | 15 | 13 | 3 | 5 | |||||||||||||
Operating leases | 361 | 365 | 368 | 374 | 382 | (4) | (21) | |||||||||||||
Total financing revenue and other interest income | 2,433 | 2,408 | 2,296 | 2,232 | 2,116 | 25 | 317 | |||||||||||||
Interest expense | ||||||||||||||||||||
Interest on deposits | 592 | 523 | 462 | 399 | 351 | 69 | 241 | |||||||||||||
Interest on short-term borrowings | 44 | 48 | 29 | 40 | 32 | (4) | 12 | |||||||||||||
Interest on long-term debt | 419 | 457 | 451 | 434 | 411 | (38) | 8 | |||||||||||||
Total interest expense | 1,055 | 1,028 | 942 | 873 | 794 | 27 | 261 | |||||||||||||
Depreciation expense on operating lease assets | 246 | 240 | 247 | 265 | 273 | 6 | (27) | |||||||||||||
Net financing revenue (as reported) | $ | 1,132 | $ | 1,140 | $ | 1,107 | $ | 1,094 | $ | 1,049 | $ | (8) | $ | 83 | ||||||
Other revenue | ||||||||||||||||||||
Servicing fees | 6 | 6 | 6 | 7 | 8 | (1) | (3) | |||||||||||||
Insurance premiums and service revenue earned | 261 | 269 | 258 | 239 | 256 | (8) | 5 | |||||||||||||
Gain on mortgage and automotive loans, net | 10 | 6 | 17 | 1 | 1 | 4 | 9 | |||||||||||||
Other gain/loss on investments, net | 108 | (87) | 22 | 27 | (12) | 195 | 120 | |||||||||||||
Other income, net of losses | 81 | 104 | 95 | 91 | 100 | (23) | (19) | |||||||||||||
Total other revenue | 466 | 298 | 398 | 364 | 354 | 168 | 112 | |||||||||||||
Total net revenue | 1,598 | 1,438 | 1,505 | 1,458 | 1,403 | 160 | 195 | |||||||||||||
Provision for loan losses | 282 | 266 | 233 | 158 | 261 | 16 | 21 | |||||||||||||
Noninterest expense | ||||||||||||||||||||
Compensation and benefits expense | 318 | 283 | 274 | 292 | 306 | 35 | 12 | |||||||||||||
Insurance losses and loss adjustment expenses | 59 | 54 | 77 | 101 | 63 | 5 | (4) | |||||||||||||
Other operating expenses | 453 | 467 | 456 | 446 | 445 | (14) | 8 | |||||||||||||
Total noninterest expense | 830 | 804 | 807 | 839 | 814 | 26 | 16 | |||||||||||||
Pre-tax income from continuing operations | $ | 486 | $ | 368 | $ | 465 | $ | 461 | $ | 328 | $ | 118 | $ | 158 | ||||||
Income tax expense from continuing operations | 111 | 79 | 91 | 113 | 76 | 32 | 35 | |||||||||||||
Net income from continuing operations | 375 | 289 | 374 | 348 | 252 | 86 | 123 | |||||||||||||
(Loss) / income from discontinued operations, net of tax | (1) | 1 | - | 1 | (2) | (2) | 1 | |||||||||||||
Net income | $ | 374 | $ | 290 | $ | 374 | $ | 349 | $ | 250 | $ | 84 | $ | 124 | ||||||
Core Pre-Tax Income Walk | ||||||||||||||||||||
Net financing revenue (ex. Core OID) (1) | $ | 1,139 | $ | 1,163 | $ | 1,129 | $ | 1,115 | $ | 1,069 | $ | (25) | $ | 70 | ||||||
Adjusted other revenue (2) | 396 | 393 | 392 | 356 | 394 | 3 | 2 | |||||||||||||
Provision for loan losses | 282 | 266 | 233 | 158 | 261 | 16 | 21 | |||||||||||||
Noninterest expense | 830 | 804 | 807 | 839 | 814 | 26 | 16 | |||||||||||||
Core pre-tax income (3) | $ | 423 | $ | 486 | $ | 481 | $ | 474 | $ | 388 | $ | (63) | $ | 35 | ||||||
Core OID | 7 | 23 | 22 | 21 | 20 | (17) | (13) | |||||||||||||
Change in the fair value of equity securities (4) | (70) | 95 | (6) | (8) | 40 | (165) | (110) | |||||||||||||
Pre-tax income from continuing operations | $ | 486 | $ | 368 | $ | 465 | $ | 461 | $ | 328 | $ | 118 | $ | 158 |
(1)Represents a non-GAAP financial measure. Excludes Core OID. For more details refer to page 21.
(2)Represents a non-GAAP financial measure. Excludes equity fair value adjustments related to ASU 2016-01, which requires change in the fair value of equity securities to be recognized in current period net income as compared to periods prior to 1/1/2018 in which such adjustments were recognized through other comprehensive income, a component of equity. For more details refer to page 21.
(3)Core pre-tax income is a non-GAAP financial measure that adjusts pre-tax income from continuing operations by excluding (1) Core OID and (2) equity fair value adjustments related to ASU 2016-01, which requires change in the fair value of equity securities to be recognized in current period net income as compared to periods prior to 1/1/2018 in which such adjustments were recognized through other comprehensive income, a component of equity. Management believes core pre-tax income can help the reader better understand the operating performance of the core businesses and their ability to generate earnings.
(4)Change in fair value of equity securities impacts the Insurance and Corporate Finance segments. Excludes equity fair value adjustments related to ASU 2016-01, which requires change in the fair value of equity securities to be recognized in current period net income as compared to periods prior to 1/1/2018 in which such adjustments were recognized through other comprehensive income, a component of equity.
1Q 2019 Preliminary Results | 5 |
Attachments
- Original document
- Permalink
Disclaimer
Ally Financial Inc. published this content on 18 April 2019 and is solely responsible for the information contained herein. Distributed by Public, unedited and unaltered, on 18 April 2019 11:37:06 UTC