EX-99.3

EX-99.3 4 d816457dex993.htm EX-99.3 EX-99.3

Exhibit 99.3

LOGO

FIRST QUARTER 2024

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 financial and operating metrics, and 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, 2023, 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 U.S. 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. The term “partnerships” means business arrangements rather than partnerships as defined by law.


		2

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 Finance			12

Corporate Finance			13

Corporate and Other			14

Credit Related Information			15-16

Supplemental Detail

Capital			17

Liquidity and Deposits			18

Net Interest Margin			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


		3

ALLY FINANCIAL INC.

CONSOLIDATED FINANCIAL HIGHLIGHTS


($ in millions, shares in thousands)	QUARTERLY TRENDS															CHANGE VS.
Selected Income Statement Data	1Q 24			4Q 23			3Q 23			2Q 23			1Q 23			4Q 23			1Q 23

Net financing revenue	$	1,456		$	1,493		$	1,533		$	1,573		$	1,602		$	(37	)	$	(146	)

Core OID		13			13			12			12			11			1			2

Net financing revenue (excluding Core OID) ⁽¹⁾		1,469			1,506			1,545			1,585			1,613			(36	)		(144	)

Other revenue		530			574			435			506			498			(44	)		32

Change in fair value of equity securities ⁽²⁾		(11	)		(74	)		56			(25	)		(65	)		63			54

Adjusted other revenue ⁽¹⁾		519			500			491			481			433			19			86

Provision for credit losses		507			587			508			427			446			(80	)		61

Repositioning		—			16			—			—			—			(16	)		—

Adjusted provision for credit losses ⁽¹⁾		507			603			508			427			446			(96	)		61

Total noninterest expense ⁽³⁾		1,308			1,416			1,232			1,249			1,266			(108	)		42

Repositioning		(10	)		(187	)		(30	)		—			—			177			(10	)

Noninterest expense (ex. Repositioning) ⁽¹⁾		1,298			1,229			1,202			1,249			1,266			69			32


Pre-tax income from continuing operations		171			64			228			403			388			107			(217	)

Income tax expense (benefit)		14			(13	)		(68	)		74			68			27			(54	)

(Loss) from discontinued operations, net of tax		—			(1	)		—			—			(1	)		1			1


Net Income		157			76			296			329			319			81			(162	)

Preferred Dividends		28			27			27			28			28			1			—


Net income attributable to common shareholders	$	129		$	49		$	269		$	301		$	291		$	80		$	(162	)


Selected Balance Sheet Data (Period-End)

Total assets	$	192,877		$	196,392		$	195,704		$	197,241		$	196,165		$	(3,515	)	$	(3,288	)

Consumer loans		103,809			104,977			108,343			107,370			106,815			(1,168	)		(3,006	)

Commercial loans		34,151			34,462			31,917			31,079			29,489			(311	)		4,662

Allowance for loan losses		(3,550	)		(3,587	)		(3,837	)		(3,781	)		(3,751	)		37			201

Deposits		155,084			154,666			152,835			154,310			154,013			418			1,071

Total equity		13,657			13,766			12,825			13,532			13,378			(109	)		279

Common Share Count

Weighted average basic		306,003			304,506			304,134			303,684			302,657			1,497			3,345

Weighted average diluted		308,421			306,730			305,693			304,646			303,448			1,691			4,973

Issued shares outstanding (period-end)		303,978			302,459			301,630			301,619			300,821			1,519			3,157

Per Common Share Data

Earnings per share (basic)	$	0.42		$	0.16		$	0.88		$	0.99		$	0.96		$	0.26		$	(0.54	)

Earnings per share (diluted)		0.42			0.16			0.88			0.99			0.96			0.26			(0.54	)

Adjusted earnings per share ⁽¹⁾		0.45			0.45			0.83			0.96			0.82			0.00			(0.37	)

Book value per share		37.28			37.83			34.81			37.16			36.75			(0.55	)		0.54

Tangible book value per share		34.91			35.43			31.90			34.22			33.77			(0.51	)		1.14

Adjusted tangible book value per share ⁽¹⁾		32.89			33.36			29.79			32.08			31.59			(0.47	)		1.30

Select Financial Ratios

Net interest margin		3.13	%		3.17	%		3.24	%		3.38	%		3.51	%

Net interest margin (ex. Core OID) ⁽¹⁾		3.16	%		3.20	%		3.26	%		3.41	%		3.54	%

Cost of funds		4.44	%		4.35	%		4.21	%		3.89	%		3.44	%

Cost of funds (ex. Core OID)		4.38	%		4.29	%		4.15	%		3.84	%		3.39	%

Efficiency Ratio		65.9	%		68.5	%		62.6	%		60.1	%		60.3	%

Adjusted efficiency ratio ⁽¹⁾		60.2	%		55.7	%		52.1	%		51.7	%		55.8	%

Return on average assets		0.3	%		0.1	%		0.5	%		0.6	%		0.6	%

Return on average total equity		3.8	%		1.5	%		8.2	%		8.9	%		8.9	%

Return on average tangible common equity		4.8	%		1.9	%		10.8	%		11.8	%		11.8	%

Core ROTCE ⁽¹⁾		6.5	%		6.9	%		12.9	%		13.9	%		12.5	%

Capital Ratios⁽⁴⁾

Common Equity Tier 1 (CET1) capital ratio		9.4	%		9.4	%		9.3	%		9.3	%		9.2	%

Tier 1 capital ratio		10.8	%		10.8	%		10.7	%		10.7	%		10.7	%

Total capital ratio		12.5	%		12.4	%		12.5	%		12.5	%		12.5	%

Tier 1 leverage ratio		8.6	%		8.7	%		8.6	%		8.6	%		8.5	%

(1)

Represents a non-GAAP financial measure. For more details refer to pages 22-27.

(2)

For more details refer to pages 25-27.

(3)

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.

(4)

For more details on the final rules to address the impact of CECL on regulatory capital by allowing BHCs and banks, including Ally, to delay and subsequently phase-in its impact, see page 26.


		4

ALLY FINANCIAL INC.

CONSOLIDATED INCOME STATEMENT


	QUARTERLY TRENDS															CHANGE VS.
($ in millions)	1Q 24			4Q 23			3Q 23			2Q 23			1Q 23			4Q 23			1Q 23

Financing revenue and other interest income

Interest and fees on finance receivables and loans	$	2,827		$	2,887		$	2,837		$	2,721		$	2,575		$	(60	)	$	252

Interest on loans held-for-sale		36			5			7			7			15			31			21

Total interest and dividends on investment securities		255			260			256			238			226			(5	)		29

Interest-bearing cash		97			90			99			87			56			7			41

Other earning assets		11			10			11			9			12			1			(1	)

Operating leases		356			371			385			392			402			(15	)		(46	)


Total financing revenue and other interest income		3,582			3,623			3,595			3,454			3,286			(41	)		296

Interest expense

Interest on deposits		1,651			1,621			1,563			1,418			1,217			30			434

Interest on short-term borrowings		23			37			13			11			12			(14	)		11

Interest on long-term debt		248			248			274			252			227			—			21

Interest on other		—			2			—			—			2			(2	)		(2	)


Total interest expense		1,922			1,908			1,850			1,681			1,458			14			464

Depreciation expense on operating lease assets		204			222			212			200			226			(18	)		(22	)


Net financing revenue	$	1,456		$	1,493		$	1,533		$	1,573		$	1,602		$	(37	)	$	(146	)

Other revenue

Insurance premiums and service revenue earned		345			335			320			310			306			10			39

Gain on mortgage and automotive loans, net		6			3			4			5			4			3			2

Other gain / (loss) on investments, net		29			85			(41	)		26			74			(56	)		(45	)

Other income, net of losses		150			151			152			165			114			(1	)		36


Total other revenue		530			574			435			506			498			(44	)		32

Total net revenue		1,986			2,067			1,968			2,079			2,100			(81	)		(114	)

Provision for loan losses		507			587			508			427			446			(80	)		61

Noninterest expense

Compensation and benefits expense		519			453			463			448			537			66			(18	)

Insurance losses and loss adjustment expenses		112			93			107			134			88			19			24

Goodwill impairment		—			149			—			—			—			(149	)		—

Other operating expenses		677			721			662			667			641			(44	)		36


Total noninterest expense		1,308			1,416			1,232			1,249			1,266			(108	)		42

Pre-tax income from continuing operations	$	171		$	64		$	228		$	403		$	388		$	107		$	(217	)

Income tax expense from continuing operations		14			(13	)		(68	)		74			68			27			(54	)


Net income from continuing operations		157			77			296			329			320			80			(163	)

Loss from discontinued operations, net of tax		—			(1	)		—			—			(1	)		1			1


Net income	$	157		$	76		$	296		$	329		$	319		$	81		$	(162	)

Preferred Dividends		28			27			27			28			28			1			—


Net income available to common shareholders	$	129		$	49		$	269		$	301		$	291		$	80		$	(162	)


Core pre-tax Income walk

Net financing revenue	$	1,456		$	1,493		$	1,533		$	1,573		$	1,602		$	(37	)	$	(146	)

Other revenue		530			574			435			506			498			(44	)		32

Provision for credit losses		507			587			508			427			446			(80	)		61

Total noninterest expense		1,308			1,416			1,232			1,249			1,266			(108	)		42


Pre-tax income from continuing operations	$	171		$	64		$	228		$	403		$	388		$	107		$	(217	)

Core OID ⁽¹⁾		13			13			12			12			11			1			2

Change in the fair value of equity securities ⁽²⁾		(11	)		(74	)		56			(25	)		(65	)		63			54

Repositioning ⁽²⁾		10			172			30			—			—			(162	)		10


Core pre-tax income ⁽¹⁾	$	183		$	174		$	326		$	390		$	335		$	9		$	(151	)

(1)

Represents a non-GAAP financial measure. For more details refer to pages 25-27.

(2)

For more details refer to pages 25-27.


		5

ALLY FINANCIAL INC.

CONSOLIDATED PERIOD-END BALANCE SHEET


($ in millions)	QUARTERLY TRENDS															CHANGE VS.
Assets	1Q 24			4Q 23			3Q 23			2Q 23			1Q 23			4Q 23			1Q 23

Cash and cash equivalents

Noninterest-bearing	$	589		$	638		$	603		$	536		$	554		$	(49	)	$	35

Interest-bearing		7,564			6,307			7,912			9,436			9,226			1,257			(1,662	)


Total cash and cash equivalents		8,153			6,945			8,515			9,972			9,780			1,208			(1,627	)

Investment securities ⁽¹⁾		29,127			29,905			28,532			30,453			31,215			(778	)		(2,088	)

Loans held-for-sale, net		358			400			289			297			524			(42	)		(166	)

Finance receivables and loans, net		137,960			139,439			140,260			138,449			136,304			(1,479	)		1,656

Allowance for loan losses		(3,550	)		(3,587	)		(3,837	)		(3,781	)		(3,751	)		37			201


Total finance receivables and loans, net		134,410			135,852			136,423			134,668			132,553			(1,442	)		1,857

Investment in operating leases, net		8,731			9,171			9,569			9,930			10,236			(440	)		(1,505	)

Premiums receivables and other insurance assets		2,750			2,749			2,775			2,768			2,713			1			37

Other assets		9,348			9,395			9,601			9,153			9,144			(47	)		204

Assets of operations held-for-sale ⁽²⁾		—			1,975			—			—			—			(1,975	)		—


Total assets	$	192,877		$	196,392		$	195,704		$	197,241		$	196,165		$	(3,515	)	$	(3,288	)


Liabilities

Deposit liabilities

Noninterest-bearing	$	137		$	139		$	188		$	160		$	174		$	(2	)	$	(37	)

Interest-bearing		154,947			154,527			152,647			154,150			153,839			420			1,108


Total deposit liabilities		155,084			154,666			152,835			154,310			154,013			418			1,071

Short-term borrowings		—			3,297			2,410			2,194			1,455			(3,297	)		(1,455	)

Long-term debt		17,011			17,570			20,096			20,141			20,480			(559	)		(3,469	)

Interest payable		1,118			858			1,437			955			759			260			359

Unearned insurance premiums and service revenue		3,480			3,492			3,494			3,478			3,455			(12	)		25

Accrued expense and other liabilities		2,527			2,726			2,607			2,631			2,625			(199	)		(98	)

Liabilities of operations held-for-sale		—			17			—			—			—			(17	)		—


Total liabilities	$	179,220		$	182,626		$	182,879		$	183,709		$	182,787		$	(3,406	)	$	(3,567	)

Equity

Common stock and paid-in capital ⁽³⁾	$	15,134		$	15,104		$	15,069		$	15,048		$	15,015		$	30		$	119

Preferred stock		2,324			2,324			2,324			2,324			2,324			—			—

Retained earnings / (accumulated deficit)		188			154			197			23			(185	)		34			373

Accumulated other comprehensive loss		(3,989	)		(3,816	)		(4,765	)		(3,863	)		(3,776	)		(173	)		(213	)


Total equity		13,657			13,766			12,825			13,532			13,378			(109	)		279


Total liabilities and equity	$	192,877		$	196,392		$	195,704		$	197,241		$	196,165		$	(3,515	)	$	(3,288	)

(1)

Includes Held-to-maturity securities.

(2)

Unsecured lending from point-of-sale financing. Moved to Assets of Operations Held-For-Sale (HFS) on 12/31/23. Sale of Ally Lending closed on 03/01/24.

(3)

Includes Treasury stock.


		6

ALLY FINANCIAL INC.

CONSOLIDATED AVERAGE BALANCE SHEET ⁽¹⁾


($ in millions)	QUARTERLY TRENDS															CHANGE VS.
Assets	1Q 24			4Q 23			3Q 23			2Q 23			1Q 23			4Q 23			1Q 23

Interest-bearing cash and cash equivalents	$	7,709		$	7,571		$	8,308		$	7,401		$	5,731		$	138		$	1,978

Investment securities and other earning assets		29,939			29,407			30,364			31,537			32,168			532			(2,229	)

Loans held-for-sale, net		382			237			278			422			738			145			(356	)

Total finance receivables and loans, net ^(2) (5)		139,945			140,326			139,153			137,185			135,819			(381	)		4,126

Investment in operating leases, net		8,955			9,415			9,817			10,110			10,435			(460	)		(1,480	)


Total interest earning assets		186,930			186,956			187,920			186,655			184,891			(26	)		2,039

Noninterest-bearing cash and cash equivalents		309			257			335			362			333			52			(24	)

Other assets		11,443			11,644			10,925			10,781			10,817			(201	)		626

Allowance for loan losses		(3,589	)		(3,801	)		(3,820	)		(3,777	)		(3,729	)		212			140


Total assets	$	195,093		$	195,056		$	195,360		$	194,021		$	192,312		$	37		$	2,781


Liabilities

Interest-bearing deposit liabilities

Retail deposit liabilities	$	143,491		$	140,117		$	139,372		$	138,285		$	138,071		$	3,374		$	5,420

Other interest-bearing deposit liabilities ⁽³⁾		11,712			13,391			13,973			13,935			14,503			(1,679	)		(2,791	)


Total Interest-bearing deposit liabilities		155,203			153,508			153,345			152,220			152,573			1,695			2,630

Short-term borrowings		1,726			2,714			948			833			1,024			(988	)		702

Long-term debt ⁽⁴⁾		17,309			17,933			20,315			20,256			18,389			(624	)		(1,080	)


Total interest-bearing liabilities ⁽⁴⁾		174,238			174,155			174,608			173,309			171,986			83			2,252

Noninterest-bearing deposit liabilities		149			164			181			162			179			(15	)		(30	)

Other liabilities		7,021			7,826			6,503			6,760			6,662			(805	)		359


Total liabilities	$	181,408		$	182,145		$	181,292		$	180,231		$	178,827		$	(737	)	$	2,581

Equity

Total equity	$	13,685		$	12,911		$	14,068		$	13,790		$	13,485		$	774		$	200


Total liabilities and equity	$	195,093		$	195,056		$	195,360		$	194,021		$	192,312		$	37		$	2,781

(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)

Includes brokered (inclusive of sweep deposits) and other deposits.

(4)

Includes average Core OID balance of $786 million in 1Q24, $799 million in 4Q23, $812 million in 3Q23, $824 million in 2Q23, and $835 million in 1Q23.

(5)

Includes the effects of finance receivables and loans, net that were transferred to loans held-for-sale, net and subsequently transferred to assets of operations held-for-sale as of December 31, 2023.


		7

ALLY FINANCIAL INC.

SEGMENT HIGHLIGHTS


($ in millions)
	QUARTERLY TRENDS															CHANGE VS.
Pre-tax Income / (Loss)	1Q 24			4Q 23			3Q 23			2Q 23			1Q 23			4Q 23			1Q 23

Automotive Finance	$	322		$	294		$	377		$	501		$	442		$	28		$	(120	)

Insurance		70			129			(16	)		8			92			(59	)		(22	)


Dealer Financial Services		392			423			361			509			534			(31	)		(142	)

Corporate Finance		90			79			84			72			72			11			18

Mortgage Finance		25			24			26			21			21			1			4

Corporate and Other ⁽¹⁾		(336	)		(462	)		(243	)		(199	)		(239	)		126			(97	)


Pre-tax income from continuing operations	$	171		$	64		$	228		$	403		$	388		$	107		$	(217	)

Core OID ^{(2) (4)}		13			13			12			12			11			1			2

Change in the fair value of equity securities ⁽³⁾		(11	)		(74	)		56			(25	)		(65	)		63			54

Repositioning ⁽⁴⁾		10			172			30			—			—			(162	)		10


Core pre-tax income ⁽⁴⁾	$	183		$	174		$	326		$	390		$	335		$	9		$	(151	)

(1)

Corporate and Other includes the impact of centralized asset and liability management, corporate overhead allocation activities, the legacy mortgage portfolio, Ally Invest activity, Ally Lending activity and the Credit Card portfolio.

(2)

Core OID for all periods shown are applied to the pre-tax income of the Corporate and Other segment.

(3)

For more details refer to pages 25-27.

(4)

Represents a non-GAAP measure. For more details refer to pages 25-27.


		8

ALLY FINANCIAL INC.

AUTOMOTIVE FINANCE - CONDENSED FINANCIAL STATEMENTS


($ in millions)
	QUARTERLY TRENDS															CHANGE VS.
Income Statement	1Q 24			4Q 23			3Q 23			2Q 23			1Q 23			4Q 23			1Q 23

Net financing revenue

Consumer	$	1,808		$	1,799		$	1,748		$	1,649		$	1,576		$	9		$	232

Commercial		411			394			364			335			299			17			112

Loans held-for-sale		1			1			2			1			3			—			(2	)

Operating leases		356			371			385			392			402			(15	)		(46	)


Total financing revenue and other interest income		2,576			2,565			2,499			2,377			2,280			11			296

Interest expense		1,058			1,013			927			828			732			45			326

Depreciation expense on operating lease assets:

Depreciation expense on operating lease assets (ex. remarketing)		249			260			268			271			272			(11	)		(23	)

Remarketing gains, net of repo valuation		(46	)		(37	)		(57	)		(70	)		(47	)		(8	)		1


Total depreciation expense on operating lease assets		204			222			212			200			226			(18	)		(22	)


Net financing revenue		1,314			1,330			1,360			1,349			1,322			(16	)		(8	)

Other revenue


Total other revenue		97			82			79			83			77			15			20


Total net revenue		1,411			1,412			1,439			1,432			1,399			(1	)		12

Provision for credit losses		448			492			444			331			351			(44	)		97

Noninterest expense

Compensation and benefits		178			163			164			160			181			15			(3	)

Other operating expenses		463			463			454			440			425			—			38


Total noninterest expense		641			626			618			600			606			15			35


Pre-tax Income	$	322		$	294		$	377		$	501		$	442		$	28		$	(120	)


Memo: Net lease revenue

Operating lease revenue	$	356		$	371		$	385		$	392		$	402		$	(15	)	$	(46	)

Depreciation expense on operating lease assets (ex. remarketing)		249			260			268			271			272			(11	)		(23	)

Remarketing gains, net of repo valuation		(46	)		(37	)		(57	)		(70	)		(47	)		(8	)		1


Total depreciation expense on operating lease assets		204			222			212			200			226			(18	)		(22	)


Net lease revenue	$	152		$	149		$	173		$	192		$	176		$	3		$	(24	)


Balance Sheet (Period-End)

Cash, trading and investment securities	$	—		$	—		$	—		$	—		$	—		$	—		$	—

Loans held-for-sale, net		5			13			21			10			19			(8	)		(14	)

Consumer loans		83,587			84,414			85,728			84,725			84,042			(827	)		(455	)

Commercial loans		23,765			23,334			21,057			20,732			19,266			431			4,499

Allowance for loan losses		(3,083	)		(3,117	)		(3,153	)		(3,103	)		(3,053	)		34			(30	)


Total finance receivables and loans, net		104,269			104,631			103,632			102,354			100,255			(362	)		4,014

Investment in operating leases, net		8,731			9,171			9,569			9,930			10,236			(440	)		(1,505	)

Other assets		1,608			1,572			1,520			1,463			1,450			36			158


Total assets	$	114,613		$	115,387		$	114,742		$	113,757		$	111,960		$	(774	)	$	2,653


		9

ALLY FINANCIAL INC.

AUTOMOTIVE FINANCE - KEY STATISTICS


	QUARTERLY TRENDS										CHANGE VS.
U.S. Consumer Originations⁽¹⁾ *($ in billions)*	1Q 24		4Q 23		3Q 23		2Q 23		1Q 23		4Q 23			1Q 23

Retail standard - new vehicle GM	$	1.0	$	1.1	$	1.1	$	1.1	$	1.0	$	(0.1	)	$	0.0

Retail standard - new vehicle Stellantis		0.6		0.7		0.7		0.8		0.7		(0.1	)		(0.1	)

Retail standard - new vehicle Other		0.9		1.0		1.1		1.0		1.0		(0.1	)		(0.1	)

Used vehicle		6.6		6.2		6.9		6.6		6.1		0.4			0.5

Lease		0.7		0.6		0.7		0.8		0.8		0.1			(0.0	)

Retail subvented		—		—		—		0.0		0.0		—			(0.0	)


Total originations	$	9.8	$	9.6	$	10.6	$	10.4	$	9.5	$	0.2		$	0.2

U.S. Consumer Originations - FICO Score

Super prime (760-999)	$	2.4	$	2.4	$	2.5	$	2.4	$	1.8	$	0.0		$	0.7

High prime (720-759)		1.4		1.4		1.5		1.4		1.2		0.0			0.2

Prime (660-719)		2.8		2.7		3.1		3.1		2.8		0.1			(0.0	)

Prime/Near (620-659)		1.7		1.5		1.8		1.8		2.0		0.1			(0.3	)

Non-Prime (540-619)		0.7		0.6		0.7		0.7		0.8		0.1			(0.1	)

Sub-Prime (0-539)		0.2		0.2		0.2		0.2		0.1		(0.0	)		0.0

No FICO (Primarily CSG)		0.7		0.8		0.8		0.8		0.8		(0.1	)		(0.2	)


Total originations	$	9.8	$	9.6	$	10.6	$	10.4	$	9.5	$	0.2		$	0.2

U.S. Consumer Retail Originations - Average FICO

New vehicle		712		718		712		709		700		(6	)		12

Used vehicle		702		703		701		698		687		(1	)		15

Total retail originations		704		707		704		701		691		(3	)		13

U.S. Market

New light vehicle sales (SAAR - units in millions)		15.4		15.7		15.7		15.8		15.0		(0.4	)		0.4

New light vehicle sales (quarterly - units in millions)		3.8		3.9		4.0		4.1		3.5		(0.1	)		0.2

Dealer Engagement

Total Active DFS Dealers ⁽²⁾		21,787		21,829		22,323		22,171		22,136		(42	)		(349	)

Total Application Volume (000s)		3,762		3,322		3,674		3,517		3,319		441			444

Ally U.S. Commercial Outstandings EOP ($ in billions)

Floorplan outstandings	$	17.3	$	17.0	$	14.9	$	14.6	$	13.3	$	0.4		$	4.0

Dealer loans and other		6.4		6.3		6.1		6.1		5.9		0.1			0.5


Total Commercial outstandings	$	23.8	$	23.3	$	21.1	$	20.7	$	19.3	$	0.4		$	4.5

U.S. Off-Lease Remarketing

Off-lease vehicles terminated - on-balance sheet (# in units)		31,926		26,237		29,484		29,872		24,163		5,689			7,763

Average gain per vehicle	$	1,431	$	1,422	$	1,944	$	2,335	$	1,932	$	9		$	(501	)

Total gain ($ in millions)	$	46	$	37	$	57	$	70	$	47	$	8		$	(1	)

(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)

A dealer is considered to have an active relationship with us if we provided automotive financing, remarketing, or insurance services during the three months ended March 31, 2024.


		10

ALLY FINANCIAL INC.

INSURANCE - CONDENSED FINANCIAL STATEMENTS AND KEY STATISTICS


($ in millions)	QUARTERLY TRENDS															CHANGE VS.
Income Statement *(GAAP View)*	1Q 24			4Q 23			3Q 23			2Q 23			1Q 23			4Q 23			1Q 23

Net financing revenue

Total interest and fees on finance receivables and loans⁽¹⁾	$	3		$	3		$	2		$	3		$	2		$	—		$	1

Interest and dividends on investment securities		31			34			32			31			29			(3	)		2

Interest bearing cash		5			5			3			2			3			—			2


Total financing revenue and other interest revenue		39			42			37			36			34			(3	)		5

Interest expense		10			9			8			7			8			1			2


Net financing revenue		29			33			29			29			26			(4	)		3

Other revenue

Insurance premiums and service revenue earned		345			335			320			310			306			10			39

Other gain / (loss) on investments, net		35			78			(31	)		25			72			(43	)		(37	)

Other income, net of losses		4			4			4			2			3			—			1


Total other revenue		384			417			293			337			381			(33	)		3


Total net revenue		413			450			322			366			407			(37	)		6

Noninterest expense

Compensation and benefits expense		28			27			26			27			28			1			—

Insurance losses and loss adjustment expenses		112			93			107			134			88			19			24

Other operating expenses		203			201			205			197			199			2			4


Total noninterest expense		343			321			338			358			315			22			28


Pre-tax income (loss)	$	70		$	129		$	(16	)	$	8		$	92		$	(59	)	$	(22	)


Memo: Income Statement (Managerial View)

Insurance premiums and other income

Insurance premiums and service revenue earned	$	345		$	335		$	320		$	310		$	306		$	10		$	39

Investment income and other (adjusted) ⁽²⁾		47			44			44			30			33			3			14

Other income		4			4			4			2			3			—			1


Total insurance premiums and other income		396			383			368			342			342			13			54

Expense

Insurance losses and loss adjustment expenses		112			93			107			134			88			19			24

Acquisition and underwriting expenses

Compensation and benefit expense		28			27			26			27			28			1			—

Insurance commission expense		161			161			160			158			157			0			4

Other expense		42			40			45			39			42			2			(0	)


Total acquistion and underwriting expense		231			228			231			224			227			3			4


Total expense		343			321			338			358			315			22			28


Core pre-tax (loss) / income ⁽²⁾		53			62			30			(16	)		27			(9	)		26

Change in the fair value of equity securities ⁽³⁾		17			67			(46	)		24			65			(50	)		(48	)


Income (loss) before income tax expense	$	70		$	129		$	(16	)	$	8		$	92		$	(59	)	$	(22	)


Balance Sheet (Period-End)

Cash and investment securities	$	5,285		$	5,333		$	5,086		$	5,280		$	5,331		$	(48	)	$	(46	)

Intercompany loans⁽¹⁾		719			619			547			510			523			100			196

Premiums receivable and other insurance assets		2,768			2,767			2,791			2,783			2,728			1			40

Other assets		328			362			312			317			285			(34	)		43


Total assets	$	9,100		$	9,081		$	8,736		$	8,890		$	8,867		$	19		$	233


Key Statistics

Total written premiums and revenue ⁽⁴⁾	$	354		$	333		$	335		$	299		$	307		$	21		$	47

Loss ratio ⁽⁵⁾		32.2	%		27.6	%		33.0	%		43.0	%		28.3	%

Underwriting expense ratio ⁽⁶⁾		66.4	%		67.2	%		71.3	%		71.5	%		73.7	%


Combined ratio		98.6	%		94.8	%		104.3	%		114.6	%		102.0	%

(1)

Intercompany activity represents excess liquidity placed with corporate segment.

(2)

Represents a non-GAAP financial measure. For more details refer to pages 25-27.

(3)

For more details refer to pages 25-27.

(4)

Written premiums are net of ceded premium for reinsurance.

(5)

Loss ratio is calculated as Insurance losses and loss adjustment expenses divided by Insurance premiums and service revenue earned and Other Income, net of losses.

(6)

Underwriting expense ratio is calculated as Compensation and benefits expense and Other operating expenses divided by Insurance premiums and service revenue earned and Other income, net of losses.


		11

ALLY FINANCIAL INC.

MORTGAGE FINANCE - CONDENSED FINANCIAL STATEMENTS


($ in millions)
	QUARTERLY TRENDS															CHANGE VS.
Income Statement	1Q 24			4Q 23			3Q 23			2Q 23			1Q 23			4Q 23			1Q 23

Net financing revenue

Total financing revenue and other interest income	$	146		$	147		$	149		$	151		$	153		$	(1	)	$	(7	)

Interest expense		94			96			96			98			99			(2	)		(5	)


Net financing revenue		52			51			53			53			54			1			(2	)

Gain on mortgage loans, net		6			3			4			5			4			3			2

Total other revenue		6			3			4			5			4			3			2


Total net revenue		58			54			57			58			58			4			—


Provision for loan losses		—			—			(2	)		—			(1	)		—			1

Noninterest expense

Compensation and benefits expense		5			4			5			5			6			1			(1	)

Other operating expense		28			26			28			32			32			2			(4	)


Total noninterest expense		33			30			33			37			38			3			(5	)


Pre-tax Income	$	25		$	24		$	26		$	21		$	21		$	1		$	4


Balance Sheet (Period-End)

Finance receivables and loans, net:

Consumer loans	$	18,227		$	18,442		$	18,657		$	18,894		$	19,189		$	(215	)	$	(962	)

Allowance for loan losses		(18	)		(18	)		(19	)		(20	)		(20	)		—			2


Total finance receivables and loans, net		18,209			18,424			18,638			18,874			19,169			(215	)		(960	)

Loans held for sale, net	$	27			25			29			36			24			2			3

Other assets	$	67			63			78			87			97			4			(30	)


Total assets	$	18,303		$	18,512		$	18,745		$	18,997		$	19,290		$	(209	)	$	(987	)


		12

ALLY FINANCIAL INC.

CORPORATE FINANCE - CONDENSED FINANCIAL STATEMENTS


($ in millions)
	QUARTERLY TRENDS															CHANGE VS.
Income Statement	1Q 24			4Q 23			3Q 23			2Q 23			1Q 23			4Q 23			1Q 23

Net financing revenue

Total financing revenue and other interest income	$	269		$	264		$	248		$	234		$	234		$	5		$	35

Interest expense		158			159			151			142			131			(1	)		27


Net financing revenue		111			105			97			92			103			6			8

Total other revenue		23			23			24			28			29			—			(6	)


Total net revenue		134			128			121			120			132			6			2

Provision for loan losses		(1	)		17			5			15			15			(18	)		(16	)

Noninterest expense

Compensation and benefits expense		27			17			16			17			28			10			(1	)

Other operating expense		18			15			16			16			17			3			1


Total noninterest expense		45			32			32			33			45			13			—


Pre-tax income	$	90		$	79		$	84		$	72		$	72		$	11		$	18


Change in the fair value of equity securities ⁽¹⁾		0			0			(0	)		(1	)		0			0			0


Core pre-tax income ⁽²⁾	$	90		$	79		$	84		$	71		$	72		$	11		$	18


Balance Sheet (Period-End)

Equity securities	$	5		$	6		$	6		$	6		$	5		$	(1	)	$	—

Loans held for sale, net		213			253			81			48			266			(40	)		(53	)

Commercial loans		10,144			10,905			10,637			10,132			10,003			(761	)		141

Allowance for loan losses		(152	)		(153	)		(185	)		(176	)		(217	)		1			65


Total finance receivables and loans, net		9,992			10,752			10,452			9,956			9,786			(760	)		206

Other assets		200			201			210			180			169			(1	)		31


Total assets	$	10,410		$	11,212		$	10,749		$	10,190		$	10,226		$	(802	)	$	184

(1)

For more details refer to pages 25-27.

(2)

Represents a non-GAAP financial measure. For more details refer to pages 25-27.


		13

ALLY FINANCIAL INC.

CORPORATE AND OTHER - CONDENSED FINANCIAL STATEMENTS


($ in millions)	QUARTERLY TRENDS															CHANGE VS.
Income Statement	1Q 24			4Q 23			3Q 23			2Q 23			1Q 23			4Q 23			1Q 23

Net financing revenue

Total financing revenue and other interest income	$	552		$	605		$	662		$	656		$	585		$	(53	)	$	(33	)

Interest expense		602			631			668			606			488			(29	)		114


Net financing revenue		(50	)		(26	)		(6	)		50			97			(24	)		(147	)

Other revenue

Other gain/(loss) on investments, net		(6	)		8			(11	)		—			3			(14	)		(9	)

Other income, net of losses ⁽¹⁾		26			41			46			53			4			(15	)		22


Total other revenue		20			49			35			53			7			(29	)		13


Total net revenue		(30	)		23			29			103			104			(53	)		(134	)

Provision for loan losses		60			78			61			81			81			(18	)		(21	)

Noninterest expense

Compensation and benefits expense		281			242			252			239			294			39			(13	)

Goodwill impairment		—			149			—			—			—			(149	)		—

Other operating expense ⁽²⁾		(35	)		16			(41	)		(18	)		(32	)		(51	)		(3	)


Total noninterest expense		246			407			211			221			262			(161	)		(16	)


Pre-tax (loss) income	$	(336	)	$	(462	)	$	(243	)	$	(199	)	$	(239	)	$	126		$	(97	)


Change in the fair value of equity securities ⁽³⁾		6			(7	)		10			—			—			13			6

Core OID ⁽⁴⁾		13			13			12			12			11			1			2

Repositioning ⁽³⁾		10			172			30			—			—			(162	)		10


Core pre-tax (loss) income ⁽⁴⁾	$	(307	)	$	(284	)	$	(191	)	$	(187	)	$	(228	)	$	(23	)	$	(79	)


Balance Sheet (Period-End)

Cash, trading and investment securities	$	31,990		$	31,511		$	31,955		$	35,139		$	35,659		$	479		$	(3,669	)

Loans held-for-sale, net		113			109			158			203			215			4			(102	)

Consumer loans		1,995			2,121			3,958			3,751			3,584			(126	)		(1,589	)

Commercial loans		242			223			223			215			220			19			22

Intercompany loans⁽⁵⁾		(719	)		(619	)		(547	)		(510	)		(523	)		(100	)		(196	)

Allowance for loan losses		(297	)		(299	)		(480	)		(482	)		(461	)		2			164


Total finance receivables and loans, net		1,221			1,426			3,154			2,974			2,820			(205	)		(1,599	)

Other assets		7,127			7,179			7,465			7,091			7,128			(52	)		(1	)

Assets of operations held-for-sale ⁽⁶⁾		—			1,975			—			—			—			(1,975	)		—

Total assets	$	40,451		$	42,200		$	42,732		$	45,407		$	45,822		$	(1,749	)	$	(5,371	)


Core OID Amortization Schedule ⁽⁴⁾	2024			2025			2026			2027			2028 & After

Remaining Core OID amortization expense	$	43		$	66		$	77		$	89		Avg = $	126/yr

(1) Includes the impact of centralized asset and liability management, corporate overhead allocation activities, the legacy mortgage portfolio, Ally Invest activity, and Ally Lending activity.

(2) Other operating expenses includes corporate overhead allocated to the other business segments. Amounts of corporate overhead allocated were $346 million for 1Q24, $342 million for 4Q23, $348 million for 3Q23, $331 million for 2Q23, and $334 million for 1Q23. The receiving business segment records the allocation of corporate overhead expense within other operating expenses.

(3) For more details refer to pages 25-27.

(4) Represents a non-GAAP financial measure. For more details refer to pages 25-27.

(5) Intercompany loans related to activity between Insurance and Corporate and Other for liquidity purposes.

(6) Unsecured lending from point-of-sale financing. Moved to Assets of Operations Held-For-Sale (HFS) on 12/31/23. Sale of Ally Lending closed on 03/01/24.


		14

ALLY FINANCIAL INC.

CREDIT RELATED INFORMATION


($ in millions)
	QUARTERLY TRENDS															CHANGE VS.
Asset Quality - Consolidated ⁽¹⁾	1Q 24			4Q 23			3Q 23			2Q 23			1Q 23			4Q 23			1Q 23

Ending loan balance	$	137,960		$	139,439		$	140,260		$	138,449		$	136,302		$	(1,479	)	$	1,658

30+ Accruing DPD	$	3,347		$	3,856		$	3,459		$	3,169		$	2,834		$	(509	)	$	513

30+ Accruing DPD %		2.43	%		2.76	%		2.47	%		2.29	%		2.08	%

60+ Accruing DPD	$	948		$	1,077		$	934		$	841		$	707		$	(129	)	$	241

60+ Accruing DPD %		0.69	%		0.77	%		0.67	%		0.61	%		0.52	%

Non-performing loans (NPLs)	$	1,252		$	1,394		$	1,500		$	1,404		$	1,384		$	(142	)	$	(132	)

Net charge-offs (NCOs)	$	539		$	623		$	456		$	399		$	409		$	(84	)	$	130

Net charge-off rate ⁽²⁾		1.55	%		1.77	%		1.31	%		1.16	%		1.20	%

Provision for loan losses	$	507		$	587		$	508		$	427		$	446		$	(80	)	$	61

Allowance for loan losses (ALLL)	$	3,550		$	3,587		$	3,837		$	3,781		$	3,751		$	(37	)	$	(201	)

ALLL as % of Loans ^{(3) (4)}		2.57	%		2.57	%		2.73	%		2.72	%		2.74	%

ALLL as % of NPLs ⁽³⁾		284	%		257	%		256	%		269	%		271	%

ALLL as % of NCOs ⁽³⁾		165	%		144	%		211	%		237	%		230	%

US Auto Delinquencies - HFI Retail Contract $‘s

30+ Delinquent contract $	$	3,239		$	3,730		$	3,290		$	3,032		$	2,714		$	(491	)	$	525

% of retail contract $ outstanding		3.88	%		4.42	%		3.85	%		3.60	%		3.24	%

60+ Delinquent contract $	$	915		$	1,037		$	878		$	796		$	666		$	(122	)	$	249

% of retail contract $ outstanding		1.10	%		1.23	%		1.03	%		0.94	%		0.80	%

U.S. Auto Annualized Net Charge-Offs - HFI Retail Contract $‘s

Net charge-offs	$	477		$	470		$	393		$	277		$	351		$	7		$	126

% of avg. HFI assets ⁽²⁾		2.27	%		2.21	%		1.85	%		1.32	%		1.68	%

U.S. Auto Annualized Net Charge-Offs - HFI Commercial Contract $‘s

Net charge-offs	$	1		$	19		$	(0	)	$	4		$	(0	)	$	(18	)	$	1

% of avg. HFI assets ⁽²⁾		0.02	%		0.34	%		—	%		0.09	%		—	%

(1) Loans within this table are classified as held-for-investment recorded at amortized 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 recievables and loans excluding loans measured at fair value, conditional repurchase loans and loans held-for-sale during the year for each loan category.

(3) Excludes provision for credit losses related to our reserve for unfunded commitments.

(4) 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.


		15

ALLY FINANCIAL INC.

CREDIT RELATED INFORMATION, CONTINUED


($ in millions)
Automotive Finance ⁽¹⁾	QUARTERLY TRENDS															CHANGE VS.

*Consumer*	1Q 24			4Q 23			3Q 23			2Q 23			1Q 23			4Q 23			1Q 23
Allowance for loan losses	$	3,050		$	3,083		$	3,104		$	3,064		$	3,022		$	(33	)	$	28

Total consumer loans ⁽²⁾	$	83,406		$	84,320		$	85,370		$	84,294		$	83,640		$	(914	)	$	(234	)

Coverage ratio ⁽³⁾		3.65	%		3.65	%		3.62	%		3.62	%		3.60	%

Commercial

Allowance for loan losses	$	33		$	34		$	49		$	39		$	31		$	(1	)	$	2

Total commercial loans	$	23,765		$	23,334		$	21,057		$	20,732		$	19,266		$	431		$	4,499

Coverage ratio		0.14	%		0.15	%		0.23	%		0.19	%		0.16	%

Mortgage ⁽¹⁾

*Consumer*

Mortgage Finance

Allowance for loan losses	$	18		$	18		$	19		$	20		$	20		$	—		$	(2	)

Total consumer loans	$	18,227		$	18,442		$	18,657		$	18,894		$	19,189		$	(215	)	$	(962	)

Coverage ratio		0.10	%		0.10	%		0.10	%		0.10	%		0.11	%

Mortgage - Legacy

Allowance for loan losses	$	3		$	3		$	3		$	3		$	3		$	—		$	—

Total consumer loans	$	214		$	225		$	238		$	255		$	272		$	(11	)	$	(58	)

Coverage ratio		1.26	%		1.32	%		1.29	%		1.28	%		1.11	%

Total Mortgage

Allowance for loan losses	$	21		$	21		$	22		$	23		$	23		$	—		$	(2	)

Total consumer loans	$	18,441		$	18,667		$	18,895		$	19,149		$	19,461		$	(226	)	$	(1,020	)

Coverage ratio		0.11	%		0.11	%		0.11	%		0.12	%		0.12	%

Consumer Other - Ally Lending ^(1) (4)

Allowance for loan losses	$	—		$	—		$	202		$	210		$	213		$	—		$	(213	)

Total consumer loans	$	—		$	—		$	2,206		$	2,170		$	2,072		$	—		$	(2,072	)

Coverage ratio		—	%		—	%		9.16	%		9.68	%		10.29	%

Consumer Other - Ally Credit Card ⁽¹⁾

Allowance for loan losses	$	291		$	293		$	272		$	266			242		$	(2	)	$	49

Total consumer loans	$	1,962		$	1,990		$	1,872		$	1,757			1,640		$	(28	)	$	322

Coverage ratio		14.85	%		14.72	%		14.55	%		15.14	%		14.74	%

Corporate Finance ⁽¹⁾

Allowance for loan losses	$	152		$	153		$	185		$	176		$	217		$	(1	)	$	(65	)

Total commercial loans	$	10,144		$	10,905		$	10,636		$	10,132		$	10,003		$	(761	)	$	141

Coverage ratio		1.50	%		1.40	%		1.74	%		1.74	%		2.17	%

Corporate and Other ⁽¹⁾

Allowance for loan losses	$	3		$	3		$	3		$	3		$	3		$	—		$	—

Total commercial loans	$	242		$	223		$	224		$	215		$	220		$	19		$	22

Coverage ratio		1.36	%		1.36	%		1.36	%		1.36	%		1.36	%

(1) ALLL coverage ratios are based on the domestic allowance as a percentage of finance receivables and loans reported at their gross carrying value, which includes the principal amount outstanding, net of unearned income, unamortized deferred fees reduced by costs on originated loans, unamortized premiums and discounts on purchased loans, unamortized basis adjustments arising from the designation of finance receivables and loans as the hedged item in qualifying fair value hedge relationships, and cumulative principal charge-offs. Excludes loans held at fair value.

(2) Includes ($181M) of fair value adjustment for loans in hedge accounting relationships in 1Q24, ($93M) in 4Q23, ($358M) in 3Q23, ($432M) in 2Q23 and ($402M) in 1Q23.

(3) Excludes ($181M) of fair value adjustment for loans in hedge accounting relationships in 1Q24, ($93M) in 4Q23, ($358M) in 3Q23, ($432M) in 2Q23 and ($402M) in 1Q23.

(4) Unsecured consumer lending from point-of-sale financing.


		16

ALLY FINANCIAL INC.

CAPITAL


($ in billions)	QUARTERLY TRENDS															CHANGE VS.

Capital	1Q 24			4Q 23			3Q 23			2Q 23			1Q 23			4Q 23			1Q 23
Risk-weighted assets	$	158.5		$	161.6		$	161.1		$	159.2		$	157.6		$	(3.1	)	$	0.9
Common Equity Tier 1 (CET1) capital ratio		9.4	%		9.4	%		9.3	%		9.3	%		9.2	%
Tier 1 capital ratio		10.8	%		10.8	%		10.7	%		10.7	%		10.7	%
Total capital ratio		12.5	%		12.4	%		12.5	%		12.5	%		12.5	%
Tangible common equity / Tangible assets ⁽¹⁾⁽²⁾		5.5	%		5.5	%		4.9	%		5.3	%		5.2	%
Tangible common equity / Risk-weighted assets ⁽¹⁾		6.7	%		6.6	%		6.0	%		6.5	%		6.4	%
Shareholders’ equity	$	13.7		$	13.8		$	12.8		$	13.5		$	13.4		$	(0.1	)	$	0.3
add: CECL phase-in adjustment		0.3			0.6			0.6			0.6			0.6			(0.3	)		(0.3	)
less: Certain AOCI items and other adjustments		3.3			3.1			3.9			3.0			2.9			0.2			0.4
Preferred equity		(2.3	)		(2.3	)		(2.3	)		(2.3	)		(2.3	)		—			—

Common Equity Tier 1 capital	$	14.9		$	15.1		$	15.0		$	14.8		$	14.5		$	(0.2	)	$	0.4


Common Equity Tier 1 capital	$	14.9		$	15.1		$	15.0		$	14.8		$	14.5		$	(0.2	)	$	0.4
add: Preferred equity		2.3			2.3			2.3			2.3			2.3			—			—
less: Other adjustments		(0.1	)		(0.1	)		(0.1	)		(0.1	)		(0.1	)		—			—

Tier 1 capital	$	17.2		$	17.4		$	17.3		$	17.1		$	16.8		$	(0.2	)	$	0.4


Tier 1 capital	$	17.2		$	17.4		$	17.3		$	17.1		$	16.8		$	(0.2	)	$	0.4
add: Qualifying subordinated debt		0.7			0.7			0.9			0.9			0.9			—			(0.2	)
Allowance for loan and lease losses includible in Tier 2 capital and other adjustments		1.9			2.0			2.0			1.9			1.9			(0.1	)		—

Total capital	$	19.8		$	20.1		$	20.1		$	19.9		$	19.6		$	(0.3	)	$	0.2

Total shareholders’ equity	$	13.7		$	13.8		$	12.8		$	13.5		$	13.4		$	(0.1	)	$	0.3
less: Preferred equity		(2.3	)		(2.3	)		(2.3	)		(2.3	)		(2.3	)		—			—
Goodwill and intangible assets, net of deferred tax liabilities		(0.7	)		(0.7	)		(0.9	)		(0.9	)		(0.9	)		—			0.2

Tangible common equity ⁽¹⁾	$	10.6		$	10.7		$	9.6		$	10.3		$	10.2		$	(0.1	)	$	0.4

Total assets	$	192.9		$	196.4		$	195.7		$	197.2		$	196.2		$	(3.5	)	$	(3.3	)
less: Goodwill and intangible assets, net of deferred tax liabilities		(0.7	)		(0.7	)		(0.9	)		(0.9	)		(0.9	)		—			0.2

Tangible assets ⁽²⁾	$	192.2		$	195.7		$	194.8		$	196.4		$	195.3		$	(3.5	)	$	(3.1	)

Note: Numbers may not foot due to rounding

(1) Represents a non-GAAP financial measure. For more details refer to pages 25-27.

(2) Ally defines tangible assets as total assets less goodwill and intangible assets, net of deferred tax liabilities.

For more details on the final rules to address the impact of CECL on regulatory capital by allowing BHCs and banks, including Ally, to delay and subsequently phase-in its impact, see page 26.


		17

ALLY FINANCIAL INC.

LIQUIDITY AND DEPOSITS


	QUARTERLY TRENDS															CHANGE VS.
Consolidated Available Liquidity ($ in billions)	1Q 24			4Q 23			3Q 23			2Q 23			1Q 23			4Q 23			1Q 23

Liquid cash and cash equivalents ⁽¹⁾	$	7.4		$	6.5		$	8.0		$	9.5		$	9.3		$	1.0		$	(1.8	)

Highly liquid securities ⁽²⁾		20.9			20.6			19.6			20.7			21.5			0.2			(0.6	)


Subtotal	$	28.3		$	27.1		$	27.6		$	30.2		$	30.8		$	1.2		$	(2.5	)


FHLB Unused Pledged Borrowing Capacity		13.8			10.3			11.0			12.3			12.2			3.5			1.6

FRB Discount Window Unused Pledged Capacity		26.3			26.0			25.6			2.1			2.1			0.3			24.2


Total unused pledged capacity	$	40.0		$	36.4		$	36.6		$	14.4		$	14.3		$	3.7		$	25.8


Total current available liquidity	$	68.3		$	63.5		$	64.1		$	44.6		$	45.0		$	4.9		$	23.3

Unsecured Long-Term Debt Maturity Profile	2024			2025			2026			2027			2028			2029 & After
Unsecured Long-Term Debt Maturity Profile	2024			2025			2026			2027			2028			2029 & After

Consolidated remaining maturities ⁽³⁾	$	1.5		$	2.3		$	—		$	1.5		$	0.8		$	4.6

Ally Bank Deposits

Key Deposit Statistics

Average retail CD maturity (months)		18.6			19.0			19.1			16.2			18.7			(0.4	)		(0.1	)

Average retail deposit rate		4.25	%		4.15	%		4.00	%		3.68	%		3.16	%

End of Period Deposit Levels ($ in millions)

Retail	$	145,147		$	142,265		$	140,100		$	138,983		$	138,497		$	2,882		$	6,650

Brokered & other		9,937			12,401			12,735			15,327			15,516			(2,464	)		(5,579	)


Total deposits	$	155,084		$	154,666		$	152,835		$	154,310		$	154,013		$	418		$	1,071


Deposit Mix

Retail CD		27	%		29	%		28	%		27	%		25	%

MMA/OSA/Checking		67	%		63	%		64	%		63	%		65	%

Brokered & other		6	%		8	%		8	%		10	%		10	%

(1)

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

(2)

Includes unencumbered UST, Agency MBS, and highly liquid Corporates

(3)

Excludes retail notes; as of 3/31/2024. Reflects notional value of outstanding bond. Excludes total GAAP OID and capitalized transaction costs.


		18

ALLY FINANCIAL INC.

NET INTEREST MARGIN


($ in millions)
	QUARTERLY TRENDS															CHANGE VS.
Average Balance Details	1Q 24			4Q 23			3Q 23			2Q 23			1Q 23			4Q 23			1Q 23

Retail Auto Loans	$	84,056		$	84,711		$	85,131		$	84,097		$	83,615		$	(655	)	$	441

Auto Lease (net of dep)		8,955			9,415			9,817			10,110			10,435			(460	)		(1,480	)

Dealer Floorplan		16,833			15,693			14,507			13,764			12,893			1,140			3,940

Other Dealer Loans		6,339			6,115			6,023			5,945			5,756			224			583

Corporate Finance		10,937			10,787			10,309			10,240			10,606			150			331

Mortgage⁽¹⁾		18,578			18,788			19,028			19,325			19,621			(210	)		(1,043	)

Consumer Other - Ally Lending ⁽²⁾		1,274			2,167			2,201			2,114			2,037			(893	)		(763	)

Consumer Other - Ally Credit Card		1,975			1,925			1,826			1,701			1,618			50			357

Cash and Cash equivalents		7,709			7,571			8,308			7,401			5,731			138			1,978

Investment Securities and Other		30,274			29,784			30,769			31,958			32,578			490			(2,304	)


Total Earning Assets	$	186,930		$	186,956		$	187,920		$	186,655		$	184,891		$	(26	)	$	2,039

Interest Revenue		3,378			3,401			3,383			3,254			3,060			(23	)		318

Unsecured Debt (ex. Core OID balance) ⁽³⁾	$	11,290		$	10,595		$	11,590		$	11,442		$	11,193		$	695		$	97

Secured Debt		1,409			2,279			3,120			2,879			2,552			(870	)		(1,143	)

Deposits ⁽⁴⁾		155,352			153,672			153,526			152,382			152,752			1,680			2,600

Other Borrowings		7,122			8,572			7,365			7,592			6,503			(1,450	)		619


Total Funding Sources (ex. Core OID balance) ⁽³⁾	$	175,173		$	175,118		$	175,601		$	174,295		$	173,000		$	55		$	2,173

Interest Expense (ex. Core OID) ⁽³⁾		1,909			1,895			1,838			1,669			1,447			14			462

Net Financing Revenue (ex. Core OID) ⁽³⁾	$	1,469		$	1,506		$	1,545		$	1,585		$	1,613		$	(37	)	$	(144	)

Net Interest Margin (yield details)

Retail Auto Loan		9.07	%		8.98	%		8.90	%		8.81	%		8.49	%		0.09	%		0.58	%

Retail Auto Loan (excl. hedge impact)		8.65	%		8.43	%		8.16	%		7.87	%		7.66	%		0.22	%		0.99	%

Auto Lease (net of dep)		6.85	%		6.24	%		7.00	%		7.60	%		6.84	%		0.61	%		0.01	%

Dealer Floorplan		7.69	%		7.84	%		7.88	%		7.71	%		7.29	%		(0.15	)%		0.40	%

Other Dealer Loans		5.61	%		5.35	%		5.25	%		5.16	%		5.04	%		0.26	%		0.57	%

Corporate Finance		9.88	%		9.70	%		9.54	%		9.15	%		8.96	%		0.18	%		0.92	%

Mortgage		3.25	%		3.21	%		3.20	%		3.22	%		3.25	%		0.04	%		—	%

Consumer Other - Ally Lending		8.77	%		9.86	%		9.94	%		9.99	%		9.97	%		(1.09	)%		(1.20	)%

Consumer Other - Ally Credit Card		21.61	%		22.02	%		22.39	%		21.88	%		21.84	%		(0.41	)%		(0.23	)%

Cash and Cash Equivalents		5.04	%		4.72	%		4.73	%		4.70	%		3.95	%		0.32	%		1.09	%

Investment Securities and Other		3.60	%		3.66	%		3.53	%		3.17	%		3.04	%		(0.06	)%		0.56	%


Total Earning Assets		7.27	%		7.22	%		7.14	%		6.99	%		6.71	%		0.05	%		0.56	%

Unsecured Debt (ex. Core OID & Core OID balance) ⁽³⁾		6.19	%		6.08	%		5.55	%		5.40	%		5.34	%		0.11	%		0.85	%

Secured Debt		5.74	%		5.15	%		6.81	%		5.61	%		6.04	%		0.59	%		(0.30	)%

Deposits ⁽⁴⁾		4.28	%		4.19	%		4.04	%		3.74	%		3.23	%		0.09	%		1.05	%

Other Borrowings ⁽⁵⁾		3.63	%		3.79	%		3.23	%		3.00	%		2.74	%		(0.16	)%		0.89	%


Total Funding Sources (ex. Core OID & Core OID balance) ⁽³⁾		4.38	%		4.29	%		4.15	%		3.84	%		3.39	%		0.09	%		0.99	%

NIM (as reported)		3.13	%		3.17	%		3.24	%		3.38	%		3.51	%		(0.04	)%		(0.38	)%

NIM (ex. Core OID & Core OID balance) ⁽³⁾		3.16	%		3.20	%		3.26	%		3.41	%		3.54	%		(0.04	)%		(0.38	)%

(1)

Mortgage includes held-for-investment (HFI) loans from the Mortgage Finance segment and the HFI legacy mortgage portfolio in run-off at the Corporate and Other segment.

(2)

Unsecured lending from point-of-sale financing. Sale of Ally Lending closed on 03/01/24.

(3)

Represents a non-GAAP financial measure. Excludes Core OID from interest expense and Core OID balance from Unsecured Debt. For more details refer to pages 25-27.

(4)

Includes retail, brokered, and other deposits. Other includes sweep deposits and other deposits.

(5)

Includes FHLB Borrowings, Repurchase Agreements and other.


		19

ALLY FINANCIAL INC.

ALLY BANK CONSUMER MORTGAGE HFI PORTFOLIOS (PERIOD-END)


($ in billions)	QUARTERLY TRENDS
Mortgage Finance HFI Portfolio	1Q 24			4Q 23			3Q 23			2Q 23			1Q 23
Loan Value

Gross carry value	$	18.2		$	18.4		$	18.7		$	18.9		$	19.2

Net carry value	$	18.2		$	18.4		$	18.6		$	18.9		$	19.2

Estimated Pool Characteristics

% Second lien		0.0	%		0.0	%		0.0	%		0.0	%		0.0	%

% Interest only		0.0	%		0.0	%		0.0	%		0.0	%		0.0	%

% 30+ Day delinquent⁽¹⁾⁽²⁾		0.4	%		0.5	%		0.5	%		0.4	%		0.4	%

% Low/No documentation		0.0	%		0.0	%		0.0	%		0.0	%		0.0	%

% Non-primary residence		4.1	%		4.1	%		4.1	%		4.1	%		4.1	%

Refreshed FICO⁽³⁾		781			782			782			782			781

Wtd. Avg. LTV/CLTV ⁽⁴⁾		50.7	%		52.2	%		53.1	%		54.5	%		55.0	%

Corporate Other Legacy Mortgage HFI Portfolio
Loan Value

Gross carry value	$	0.2		$	0.2		$	0.2		$	0.3		$	0.3

Net carry value	$	0.2		$	0.2		$	0.2		$	0.3		$	0.3

Estimated Pool Characteristics

% Second lien		12.5	%		12.5	%		12.4	%		12.5	%		12.9	%

% Interest only		0.2	%		0.2	%		0.2	%		0.0	%		0.0	%

% 30+ Day delinquent⁽¹⁾⁽²⁾		7.0	%		7.0	%		6.7	%		6.6	%		6.5	%

% Low/No documentation		25.8	%		25.5	%		25.2	%		24.8	%		24.2	%

% Non-primary residence		3.1	%		3.1	%		3.2	%		3.4	%		3.3	%

Refreshed FICO⁽³⁾		739			742			743			742			741

Wtd. Avg. LTV/CLTV ⁽⁴⁾		45.0	%		46.9	%		47.3	%		48.1	%		48.1	%

1)	MBA Delinquency buckets were used for First Lien products and OTS Delinquency buckets were used for all others.

2)	%30+Day Delinquency bucket excludes loans which are current but are in bankruptcy.

3)	Refreshed FICO includes the entire Bank HFI portfolio, inclusive of SBO. Previously, SBO loans had been excluded from our reporting.

4)	1st lien only. Updated home values derived using a combination of appraisals, BPOs, AVMs and MSA level house price indices.


		20

ALLY FINANCIAL INC.

EARNINGS PER SHARE RELATED INFORMATION


($ in millions, shares in thousands)		QUARTERLY TRENDS										CHANGE VS.
Earnings Per Share Data		1Q 24		4Q 23		3Q 23		2Q 23		1Q 23		4Q 23		1Q 23

GAAP net income attributable to common shareholders		$	129	$	49	$	269	$	301	$	291	$	80	$	(162)

Weighted-average common shares outstanding - basic			306,003		304,506		304,134		303,684		302,657		1,497		3,345

Weighted-average common shares outstanding - diluted			308,421		306,730		305,693		304,646		303,448		1,691		4,973

Issued shares outstanding (period-end)			303,978		302,459		301,630		301,619		300,821		1,519		3,157


Net income per share - basic		$	0.42	$	0.16	$	0.88	$	0.99	$	0.96	$	0.26	$	(0.54)


Net income per share - diluted		$	0.42	$	0.16	$	0.88	$	0.99	$	0.96	$	0.26	$	(0.54)


Adjusted Earnings per Share (“Adjusted EPS”) ⁽²⁾

Numerator

GAAP net income attributable to common shareholders		$	129	$	49	$	269	$	301	$	291	$	80	$	(162)

Discontinued operations, net of tax			—		1		—		—		1		(1)		(1)

Core OID			13		13		12		12		11		1		2

Change in the fair value of equity securities ⁽³⁾			(11)		(74)		56		(25)		(65)		63		54

Core OID, repositioning & change in the fair value of equity securities tax (tax rate 21%)			(3)		(23)		(21)		3		11		21		(14)

Repositioning ⁽³⁾			10		172		30		—		—		(162)		10

Significant discrete tax items			—		—		(94)		—		—		—		—


Core net income attributable to common shareholders ⁽¹⁾		$	139	$	137	$	252	$	291	$	250	$	1	$	(111)

Denominator

Weighted-average common shares outstanding - diluted			308,421		306,730		305,693		304,646		303,448		1,691		4,973

Adjusted EPS ⁽²⁾		$	0.45	$	0.45	$	0.83	$	0.96	$	0.82	$	0.00	$	(0.37)

GAAP original issue discount amortization expense		$	17	$	16	$	15	$	15	$	15	$	1	$	2

Other OID			(3)		(3)		(3)		(3)		(3)		(0)		(0)


Core original issue discount (Core OID) amortization expense ⁽¹⁾		$	13	$	13	$	12	$	12	$	11	$	1	$	2


GAAP outstanding original issue discount balance		$	(815)	$	(831)	$	(847)	$	(863)	$	(878)	$	17	$	63

Other outstanding OID balance			35		39		42		45		48		(3)		(13)


Core outstanding original issue discount balance (Core OID balance) ⁽¹⁾		$	(779)	$	(793)	$	(806)	$	(818)	$	(830)	$	13	$	50


GAAP Net Financing Revenue	[A]	$	1,456	$	1,493	$	1,533	$	1,573	$	1,602	$	(37)	$	(146)

Core OID			13		13		12		12		11		1		2


Net Financing Revenue (ex. Core OID) ⁽¹⁾	[B]	$	1,469	$	1,506	$	1,545	$	1,585	$	1,613	$	(36)	$	(144)


GAAP Other Revenue	[C]	$	530	$	574	$	435	$	506	$	498	$	(44)	$	32

Change in the fair value of equity securities ⁽³⁾			(11)		(74)		56		(25)		(65)		63		54


Adjusted Other Revenue ⁽¹⁾	[D]	$	519	$	500	$	491	$	481	$	433	$	19	$	86


GAAP Provision Expense		$	507	$	587	$	508	$	427	$	446	$	(80)	$	61

Repositioning			—		16		—		—		—		(16)		—


Adjusted Provision (ex. Repositioning) ⁽¹⁾		$	507	$	603	$	508	$	427	$	446	$	(96)	$	61


GAAP Noninterest expense	[E]	$	1,308	$	1,416	$	1,232	$	1,249	$	1,266	$	(108)	$	42

Repositioning and other			(10)		(187)		(30)		—		—		177		(10)


Adjusted Noninterest Expense ⁽¹⁾	[F]	$	1,298	$	1,229	$	1,202	$	1,249	$	1,266	$	69	$	32

(1) Represents a non-GAAP financial measure. For more details refer to pages 25-27.

(2) 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. In the numerator of Adjusted EPS, GAAP net income attributable to common shareholders is adjusted for the following items: (1) excludes discontinued operations, net of tax, as Ally is primarily a domestic company and sales of international businesses and other discontinued operations in the past have significantly impacted GAAP EPS, (2) adds back the tax-effected non-cash Core OID, (3) adjusts for tax-effected repositioning and other which are primarily related to the extinguishment of high cost legacy debt, strategic activities and significant other one-time items, (4) change in fair value of equity securities, (5) excludes significant discrete tax items that do not relate to the operating performance of the core businesses, and adjusts for preferred stock capital actions that have been taken by the company to normalize its capital structure, as applicable for respective periods. See pages 25-27 for details.

(3) For more details refer to pages 25-27.


		21

ALLY FINANCIAL INC.

ADJUSTED TANGIBLE BOOK PER SHARE RELATED INFORMATION


($ in millions, shares in thousands)	QUARTERLY TRENDS										CHANGE VS.

Adjusted Tangible Book Value Per Share (“Adjusted TBVPS”) Information	1Q 24		4Q 23		3Q 23		2Q 23		1Q 23		4Q 23		1Q 23

Numerator

GAAP shareholder’s equity	$	13,657	$	13,766	$	12,825	$	13,532	$	13,378	$	(109)	$	279

Preferred equity		(2,324)		(2,324)		(2,324)		(2,324)		(2,324)		—		—


GAAP common shareholder’s equity	$	11,333	$	11,442	$	10,501	$	11,208	$	11,054	$	(109)	$	279

Goodwill and identifiable intangibles, net of DTLs		(720)		(727)		(879)		(887)		(895)		7		175


Tangible common equity ⁽¹⁾		10,613		10,715		9,622		10,321		10,159		(102)		454

Tax-effected Core OID balance (21% tax rate)⁽¹⁾		(616)		(626)		(636)		(646)		(656)		11		40

Adjusted tangible book value ⁽²⁾	$	9,997	$	10,089	$	8,986	$	9,675	$	9,504	$	(91)	$	494


Denominator

Issued shares outstanding (period-end, thousands)		303,978		302,459		301,630		301,619		300,821		1,519		3,157

GAAP shareholder’s equity per share	$	44.93	$	45.51	$	42.52	$	44.86	$	44.47	$	(0.59)	$	0.46

Preferred equity per share		(7.65)		(7.68)		(7.70)		(7.71)		(7.73)		0.04		0.08

GAAP common shareholder’s equity per share	$	37.28	$	37.83	$	34.81	$	37.16	$	36.75	$	(0.55)	$	0.54

Goodwill and identifiable intangibles, net of DTLs per share		(2.37)		(2.40)		(2.91)		(2.94)		(2.97)		0.04		0.61


Tangible common equity per share ⁽¹⁾		34.91		35.43		31.90		34.22		33.77		(0.51)		1.14

Tax-effected Core OID balance (21% tax rate) per share ⁽¹⁾		(2.03)		(2.07)		(2.11)		(2.14)		(2.18)		0.04		0.15


Adjusted tangible book value per share ⁽²⁾	$	32.89	$	33.36	$	29.79	$	32.08	$	31.59	$	(0.47)	$	1.30

(1) Represents a non-GAAP financial measure. For more details refer to pages 25-27.

(2) 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 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. Adjusted TBVPS generally adjusts common equity for (1) goodwill and identifiable intangibles, net of DTLs, and (2) tax-effected Core OID balance to reduce tangible common equity in the event the corresponding discounted bonds are redeemed/tendered and (3) Series G discount which reduces tangible common equity as the company has normalized its capital structure, as applicable for respective periods.


		22

ALLY FINANCIAL INC.

CORE ROTCE RELATED INFORMATION


($ in millions) unless noted otherwise	QUARTERLY TRENDS															CHANGE VS.

Core Return on Tangible Common Equity (“Core ROTCE”)	1Q 24			4Q 23			3Q 23			2Q 23			1Q 23			4Q 23			1Q 23

Numerator

GAAP net income attributable to common shareholders	$	129		$	49		$	269		$	301		$	291		$	80		$	(162	)

Discontinued operations, net of tax		—			1			—			—			1			(1	)		(1	)

Core OID ⁽²⁾		13			13			12			12			11			1			2

Change in the fair value of equity securities		(11	)		(74	)		56			(25	)		(65	)		63			54

Core OID, repositioning & change in the fair value of equity securities tax (tax rate 21%)		(3	)		(23	)		(21	)		3			11			21			(14	)

Repositioning ⁽²⁾		10			172			30			—			—			(162	)		10

Significant discrete tax items		—			—			(94	)		—			—			—			—


Core net income attributable to common shareholders ⁽¹⁾	$	139		$	137		$	252		$	291		$	250		$	1		$	(111	)

Denominator (average, $ millions)

GAAP shareholder’s equity	$	13,712		$	13,296		$	13,179		$	13,455		$	13,119		$	416		$	593

Preferred equity		(2,324	)		(2,324	)		(2,324	)		(2,324	)		(2,324	)		—			—

Goodwill & identifiable intangibles, net of deferred tax liabilities (“DTLs”)		(723	)		(803	)		(883	)		(891	)		(898	)		79			175


Tangible common equity ⁽¹⁾	$	10,664		$	10,169		$	9,972		$	10,240		$	9,896		$	495		$	768

Core OID balance		(786	)		(799	)		(812	)		(824	)		(835	)		13			49

Net deferred tax asset (“DTA”)		(1,278	)		(1,378	)		(1,310	)		(1,060	)		(1,059	)		100			(220	)


Normalized common equity	$	8,600		$	7,992		$	7,850		$	8,357		$	8,002		$	608		$	598

Core Return on Tangible Common Equity ⁽³⁾		6.5	%		6.9	%		12.9	%		13.9	%		12.5	%

(1) Represents a non-GAAP measure. See pages 25-27 for methodology and detail.

(2) For more details see pages 25-27.

(3) 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 net DTA. Ally’s Core net income attributable to common shareholders for purposes of calculating Core ROTCE is based on the actual effective tax rate for the period adjusted for significant discrete tax items including tax reserve releases, which aligns with the methodology used in calculating adjusted earnings per share.

(1) In the numerator of Core ROTCE, GAAP net income attributable to common shareholders is adjusted for discontinued operations net of tax, tax-effected Core OID, tax-effected repositioning and other which are primarily related to the extinguishment of high-cost legacy debt, strategic activities and significant other one-time items, change in fair value of equity securities, significant discrete tax items, and preferred stock capital actions, as applicable for respective periods.

(2) In the denominator, GAAP shareholder’s equity is adjusted for goodwill and identifiable intangibles net of DTL, Core OID balance, and net DTA.


		23

ALLY FINANCIAL INC.

ADJUSTED EFFICIENCY RATIO RELATED INFORMATION


($ in millions)	QUARTERLY TREND															CHANGE VS.
Adjusted Efficiency Ratio Calculation	1Q 24			4Q 23			3Q 23			2Q 23			1Q 23			4Q 23			1Q 23

Numerator

GAAP Noninterest expense	$	1,308		$	1,416		$	1,232		$	1,249		$	1,266		$	(108	)	$	42

Insurance expense		(343	)		(321	)		(338	)		(358	)		(315	)		(22	)		(28	)

Repositioning ⁽²⁾		(10	)		(187	)		(30	)		—			—			177			(10	)


Adjusted noninterest expense for the efficiency ratio	$	955		$	908		$	864		$	891		$	951		$	47		$	4

Denominator
Total net revenue	$	1,986		$	2,067		$	1,968		$	2,079		$	2,100		$	(81	)	$	(114	)

Core OID ⁽²⁾		13			13			12			12			11			1			2

Insurance revenue		(413	)		(450	)		(322	)		(366	)		(407	)		37			(6	)


Adjusted net revenue for the efficiency ratio	$	1,586		$	1,630		$	1,658		$	1,725		$	1,704		$	(43	)	$	(118	)

Adjusted Efficiency Ratio ⁽¹⁾		60.2	%		55.7	%		52.1	%		51.7	%		55.8	%

(1) 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. In the numerator of Adjusted efficiency ratio, total noninterest expense is adjusted for Insurance segment expense, Rep and warrant expense, and repositioning and other which is primarily related to the extinguishment of high cost legacy debt, strategic activities and significant one-time items, as applicable for respective periods. In the denominator, total net revenue is adjusted for Insurance segment revenue and Core OID. See page 11 for the combined ratio for the Insurance segment which management uses as a primary measure of underwriting profitability for the Insurance business.

(2) For more details see pages 25-27.


		24

ALLY FINANCIAL INC.

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: Accelerated issuance expense (Accelerated OID), Adjusted earnings per share (Adjusted EPS), Adjusted efficiency ratio, Adjusted noninterest expense, Adjusted other revenue, Adjusted tangible book value per share (Adjusted TBVPS), Adjusted total net revenue, Core net income attributable to common shareholders, Core original issue discount (Core OID) amortization expense, Core outstanding original issue discount balance (Core OID balance), Core pre-tax income, Core return on tangible common equity (Core ROTCE), Investment income and other (adjusted), Net financing revenue (excluding Core OID), Net interest margin (excluding Core OID), and Tangible Common Equity. These measures are used by management and we believe are useful to investors in assessing the company’s operating performance and capital.

1) Accelerated issuance expense (Accelerated OID) is the recognition of issuance expenses related to calls of redeemable debt.

2) 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. In the numerator of Adjusted EPS, GAAP net income attributable to common shareholders is adjusted for the following items: (1) excludes discontinued operations, net of tax, as Ally is primarily a domestic company and sales of international businesses and other discontinued operations in the past have significantly impacted GAAP EPS, (2) adds back the tax-effected non-cash Core OID, (3) adjusts for tax-effected repositioning and other which are primarily related to the extinguishment of high cost legacy debt, strategic activities and significant other one-time items, (4) change in fair value of equity securities, (5) excludes significant discrete tax items that do not relate to the operating performance of the core businesses, and adjusts for preferred stock capital actions that have been taken by the company to normalize its capital structure, as applicable for respective periods.

3) 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.

(1) In the numerator of Adjusted efficiency ratio, total noninterest expense is adjusted for Rep and warrant expense, Insurance segment expense, and repositioning and other which are primarily related to the extinguishment of high-cost legacy debt, strategic activities and significant other one-time items, as applicable for respective periods.

(2) In the denominator, total net revenue is adjusted for Core OID and Insurance segment revenue.

4) Adjusted noninterest expense is a non-GAAP financial measure that adjusts GAAP noninterest expense for repositioning items. Management believes adjusted noninterest expense is a helpful financial metric because it enables the reader better understand the business’ expenses excluding nonrecurring items.

5) Adjusted other revenue is a non-GAAP financial measure that adjusts GAAP other revenue for OID expenses, repositioning, and change in fair value of equity securities. Management believes adjusted other revenue is a helpful financial metric because it enables the reader to better understand the business’ ability to generate other revenue.

6) Adjusted Provision for Credit Losses is a non-GAAP financial measure that adjusts GAAP provision for credit losses for repositioning items. Management believes adjusted provision for credit losses is a helpful financial metric because it enables the reader better understand the business’s expenses excluding nonrecurring items.

7) 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 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. Adjusted TBVPS generally adjusts common equity for: (1) goodwill and identifiable intangibles, net of DTLs, (2) tax-effected Core OID balance to reduce tangible common equity in the event the corresponding discounted bonds are redeemed/tendered, and (3) Series G discount which reduces tangible common equity as the company has normalized its capital structure, as applicable for respective periods. Note: In December 2017, tax-effected Core OID balance was adjusted from a statutory U.S. Federal tax rate of 35% to 21% (“rate”) as a result of changes to U.S. tax law. The adjustment conservatively increased the tax-effected Core OID balance and consequently reduced Adjusted TBVPS as any acceleration of the non-cash charge in future periods would flow through the financial statements at a 21% rate versus a previously modeled 35% rate.

8) Adjusted total net revenue is a non-GAAP financial measure that management believes is helpful for readers to understand the ongoing ability of the company to generate revenue. For purposes of this calculation, GAAP net financing revenue is adjusted by excluding Core OID to calculate net financing revenue ex. core OID. GAAP other revenue is adjusted for OID expenses, repositioning, and change in fair value of equity securities to calculate adjusted other revenue. Adjusted total net revenue is calculated by adding net financing revenue ex. core OID to adjusted other revenue.

9) Change in fair value of equity securities impacts the Insurance, Corporate Finance and Corporate and Other segments. The change reflects fair value adjustments to equity securities that are reported at fair value. Management believes the change in fair value of equity securities should be removed from select financial measures because it enables the reader to better understand the business’ ongoing ability to generate revenue and income.


		25

ALLY FINANCIAL INC.

10) 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. Core net income attributable to common shareholders adjusts GAAP net income attributable to common shareholders for discontinued operations net of tax, tax-effected Core OID expense, tax-effected repositioning and other primarily related to the extinguishment of high-cost legacy debt and strategic activities and significant other, preferred stock capital actions, significant discrete tax items and tax-effected changes in equity investments measured at fair value, as applicable for respective periods.

11) Core original issue discount (Core OID) amortization expense is a non-GAAP financial measure for OID and is believed by management to help the reader better understand the activity removed from: Core pre-tax income (loss), Core net income (loss) attributable to common shareholders, Adjusted EPS, Core ROTCE, Adjusted efficiency ratio, Adjusted total net revenue, and Net financing revenue (excluding Core OID). Core OID is primarily related to bond exchange OID which excludes international operations and future issuances. Core OID for all periods shown is applied to the pre-tax income of the Corporate and Other segment.

12) Core outstanding original issue discount balance (Core OID balance) is a non-GAAP financial measure for outstanding OID and is believed by management to help the reader better understand the balance removed from Core ROTCE and Adjusted TBVPS. Core OID balance is primarily related to bond exchange OID which excludes international operations and future issuances.

13) 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) change in fair value of equity securities (change in fair value of equity securities impacts the Insurance and Corporate Finance segments), and (3) Repositioning and other which are primarily related to the extinguishment of high cost legacy debt, strategic activities and significant other one-time items, as applicable for respective periods or businesses. 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.

14) 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 net DTA. Ally’s Core net income attributable to common shareholders for purposes of calculating Core ROTCE is based on the actual effective tax rate for the period adjusted for significant discrete tax items including tax reserve releases, which aligns with the methodology used in calculating adjusted earnings per share.

(2) In the denominator, GAAP shareholder’s equity is adjusted for goodwill and identifiable intangibles net of DTL, Core OID balance, and net DTA.

15) Estimated impact of CECL on regulatory capital per final rule issued by U.S. banking agencies - In December 2018, the FRB and other U.S. banking agencies approved a final rule to address the impact of CECL on regulatory capital by allowing BHCs and banks, including Ally, the option to phase in the day-one impact of CECL over a three-year period. In March 2020, the FRB and other U.S. banking agencies issued an interim final rule that became effective on March 31, 2020 and provided an alternative option for banks to temporarily delay the impacts of CECL, relative to the incurred loss methodology for estimating the allowance for loan losses, on regulatory capital. A final rule that was largely unchanged from the March 2020 interim final rule was issued by the FRB and other U.S. banking agencies in August 2020, and became effective in September 2020. For regulatory capital purposes, these rules permitted us to delay recognizing the estimated impact of CECL on regulatory capital until after a two-year deferral period, which for us extended through December 31, 2021. Beginning on January 1, 2022, we are required to phase in 25% of the previously deferred estimated capital impact of CECL, with an additional 25% to be phased in at the beginning of each subsequent year until fully phased in by the first quarter of 2025. Under these rules, firms that adopt CECL and elect the five-year transition will calculate the estimated impact of CECL on regulatory capital as the day-one impact of adoption plus 25% of the subsequent change in allowance during the two-year deferral period, which according to the final rule approximates the impact of CECL relative to an incurred loss model. We adopted this transition option during the first quarter of 2020, and beginning January 1, 2022, are phasing in the regulatory capital impacts of CECL based on this five-year transition period.

16) Investment income and other (adjusted) is a non-GAAP financial measure that adjusts GAAP investment income and other for repositioning, and the change in fair value of equity securities. Management believes investment income and other (adjusted) is a helpful financial metric because it enables the reader to better understand the business’ ability to generate investment income.


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ALLY FINANCIAL INC.

17) Net financing revenue excluding core OID is calculated using a non-GAAP measure that adjusts net financing revenue by excluding Core OID. The Core OID balance is primarily related to bond exchange OID which excludes international operations and future issuances. Management believes net financing revenue ex. Core OID is a helpful financial metric because it enables the reader to better understand the business’ ability to generate revenue.

18) Net interest margin excluding core OID is calculated using a non-GAAP measure that adjusts net interest margin by excluding Core OID. The Core OID balance is primarily related to bond exchange OID which excludes international operations and future issuances. Management believes net interest margin ex. Core OID is a helpful financial metric because it enables the reader to better understand the business’ profitability and margins.

19) Repositioning is primarily related to the extinguishment of high-cost legacy debt, strategic activities, restructuring, amounts related to nonrecurring business transactions or pending transactions, and significant other one-time items.

20) Tangible Common Equity is a non-GAAP financial measure that is defined as common stockholders’ equity less goodwill and identifiable intangible assets, net of deferred tax liabilities. Ally considers various measures when evaluating capital adequacy, including tangible common equity. Ally believes that tangible common equity is important because we believe readers 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. For purposes of calculating Core return on tangible common equity (Core ROTCE), tangible common equity is further adjusted for Core OID balance and net deferred tax asset.


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