EX-99.2 3 d851491dex992.htm EX-99.2 EX-99.2

Exhibit 99.2

 

 

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SECOND QUARTER 2024

FINANCIAL SUPPLEMENT


ALLY FINANCIAL INC.

FORWARD-LOOKING STATEMENTS AND ADDITIONAL INFORMATION

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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.

 

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ALLY FINANCIAL INC.

TABLE OF CONTENTS

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     Page(s)

Consolidated Results

  

Consolidated Income Statement

     4  

Consolidated Period-End Balance Sheet

     5  

Consolidated Average Balance Sheet

     6  

 

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ALLY FINANCIAL INC.

CONSOLIDATED INCOME STATEMENT

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

Financing revenue and other interest income

                

Interest and fees on finance receivables and loans

    $ 2,845      $ 2,827       $ 2,887      $ 2,837      $ 2,721       $ 18      $ 124  

Interest on loans held-for-sale

     7       36        5       7       7        (29     -  

Total interest and dividends on investment securities

     255       255        260       256       238        -       17  

Interest-bearing cash

     88       97        90       99       87        (9     1  

Other earning assets

     10       11        10       11       9        (1     1  

Operating leases

     333       356        371       385       392        (23     (59
  

 

 

 

 

 

 

 

  

 

 

 

 

 

 

 

 

 

 

 

  

 

 

 

 

 

 

 

Total financing revenue and other interest income

     3,538       3,582        3,623       3,595       3,454        (44     84  

Interest expense

                

Interest on deposits

     1,594       1,651        1,621       1,563       1,418        (57     176  

Interest on short-term borrowings

     27       23        37       13       11        4       16  

Interest on long-term debt

     244       248        248       274       252        (4     (8

Interest on other

     1       -        2       -       -        1       1  
  

 

 

 

 

 

 

 

  

 

 

 

 

 

 

 

 

 

 

 

  

 

 

 

 

 

 

 

Total interest expense

     1,866       1,922        1,908       1,850       1,681        (56     185  

Depreciation expense on operating lease assets

     177       204        222       212       200        (27     (23
  

 

 

 

 

 

 

 

  

 

 

 

 

 

 

 

 

 

 

 

  

 

 

 

 

 

 

 

Net financing revenue

    $ 1,495      $ 1,456       $ 1,493      $ 1,533      $ 1,573       $ 39      $ (78

Other revenue

                

Insurance premiums and service revenue earned

     341       345        335       320       310        (4     31  

Gain on mortgage and automotive loans, net

     6       6        3       4       5        -       1  

Other gain / (loss) on investments, net

     (7     29        85       (41     26        (36     (33

Other income, net of losses

     165       150        151       152       165        15       -  
  

 

 

 

 

 

 

 

  

 

 

 

 

 

 

 

 

 

 

 

  

 

 

 

 

 

 

 

Total other revenue

     505       530        574       435       506        (25     (1

Total net revenue

     2,000       1,986        2,067       1,968       2,079        14       (79

Provision for loan losses

     457       507        587       508       427        (50     30  

Noninterest expense

                

Compensation and benefits expense

     442       519        453       463       448        (77     (6

Insurance losses and loss adjustment expenses

     181       112        93       107       134        69       47  

Goodwill impairment

     -       -        149       -       -        -       -  

Other operating expenses

     663       677        721       662       667        (14     (4
  

 

 

 

 

 

 

 

  

 

 

 

 

 

 

 

 

 

 

 

  

 

 

 

 

 

 

 

Total noninterest expense

     1,286       1,308        1,416       1,232       1,249        (22     37  

Pre-tax income from continuing operations

    $ 257      $ 171       $ 64      $ 228      $ 403       $ 86      $ (146

Income tax (benefit) / expense from continuing operations

     (37     14        (13     (68     74        (51     (111
  

 

 

 

 

 

 

 

  

 

 

 

 

 

 

 

 

 

 

 

  

 

 

 

 

 

 

 

Net income from continuing operations

     294       157        77       296       329        137       (35

Loss from discontinued operations, net of tax

     -       -        (1     -       -        -       -  
  

 

 

 

 

 

 

 

  

 

 

 

 

 

 

 

 

 

 

 

  

 

 

 

 

 

 

 

Net income

    $ 294      $ 157       $ 76      $ 296      $ 329       $ 137      $ (35

Preferred Dividends

     28       28        27       27       28        -       -  
  

 

 

 

 

 

 

 

  

 

 

 

 

 

 

 

 

 

 

 

  

 

 

 

 

 

 

 

Net income available to common shareholders

    $ 266      $ 129       $ 49      $ 269      $ 301       $ 137      $ (35
  

 

 

 

 

 

 

 

  

 

 

 

 

 

 

 

 

 

 

 

  

 

 

 

 

 

 

 

Note: Numbers may not foot due to rounding

 

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ALLY FINANCIAL INC.

CONSOLIDATED PERIOD-END BALANCE SHEET

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

Assets

             

Cash and cash equivalents

             

Noninterest-bearing

   $ 536      $ 589      $ 638      $ 603      $ 536      $ (53    $ -  

Interest-bearing

    6,833       7,564       6,307       7,912       9,436       (731     (2,603
 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total cash and cash equivalents

    7,369       8,153       6,945       8,515       9,972       (784     (2,603

Investment securities (1)

    28,602       29,127       29,905       28,532       30,453       (525     (1,851

Loans held-for-sale, net

    316       358       400       289       297       (42     19  

Finance receivables and loans, net

    138,783       137,960       139,439       140,260       138,449       823       334  

Allowance for loan losses

    (3,572     (3,550     (3,587     (3,837     (3,781     (22     209  
 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total finance receivables and loans, net

    135,211       134,410       135,852       136,423       134,668       801       543  

Investment in operating leases, net

    8,374       8,731       9,171       9,569       9,930       (357     (1,556

Premiums receivables and other insurance assets

    2,806       2,750       2,749       2,775       2,768       56       38  

Other assets

    9,853       9,348       9,395       9,601       9,153       505       700  

Assets of operations held-for-sale (2)

    -       -       1,975       -       -       -       -  
 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total assets

   $ 192,531      $ 192,877      $ 196,392      $ 195,704      $ 197,241      $ (346    $ (4,710
 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Liabilities

             

Deposit liabilities

             

Noninterest-bearing

   $ 156      $ 137      $ 139      $ 188     $ 160      $ 19      $ (4

Interest-bearing

    151,998       154,947       154,527       152,647       154,150       (2,949     (2,152
 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total deposit liabilities

    152,154       155,084       154,666       152,835       154,310       (2,930     (2,156

Short-term borrowings

    3,122       -       3,297       2,410       2,194       3,122       928  

Long-term debt

    15,979       17,011       17,570       20,096       20,141       (1,032     (4,162

Interest payable

    1,148       1,118       858       1,437       955       30       193  

Unearned insurance premiums and service revenue

    3,496       3,480       3,492       3,494       3,478       16       18  

Accrued expense and other liabilities

    2,781       2,527       2,726       2,607       2,631       254       150  

Liabilities of operations held-for-sale

    -       -       17       -       -       -       -  
 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total liabilities

   $ 178,680      $ 179,220      $ 182,626      $ 182,879      $ 183,709      $ (540    $ (5,029

Equity

             

Common stock and paid-in capital (3)

   $ 15,176      $ 15,134      $ 15,104      $ 15,069      $ 15,048      $ 42      $ 128  

Preferred stock

    2,324       2,324       2,324       2,324       2,324       -       -  

Retained earnings

    360       188       154       197       23       172       337  

Accumulated other comprehensive loss

    (4,009     (3,989     (3,816     (4,765     (3,863     (20     (146
 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total equity

    13,851       13,657       13,766       12,825       13,532       194       319  
 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total liabilities and equity

   $ 192,531      $ 192,877      $ 196,392      $ 195,704      $ 197,241      $ (346    $ (4,710
 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(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.

Note: Numbers may not foot due to rounding

 

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ALLY FINANCIAL INC.

CONSOLIDATED AVERAGE BALANCE SHEET (1)

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

Assets

              

Interest-bearing cash and cash equivalents

    $ 7,311      $ 7,709      $ 7,571      $ 8,308      $ 7,401      $ (398)      $ (90

Investment securities and other earning assets

     29,233       29,939       29,407       30,364       31,537       (706     (2,304

Loans held-for-sale, net

     220       382       237       278       422       (162     (202

Total finance receivables and loans, net (2) (5)

     138,322       139,945       140,326       139,153       137,185       (1,623     1,137  

Investment in operating leases, net

     8,619       8,955       9,415       9,817       10,110       (336     (1,491
  

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total interest earning assets

     183,705       186,930       186,956       187,920       186,655       (3,225     (2,950

Noninterest-bearing cash and cash equivalents

     360       309       257       335       362       51       (2

Other assets

     11,587       11,443       11,644       10,925       10,781       144       806  

Allowance for loan losses

     (3,557     (3,589     (3,801     (3,820     (3,777     32       220  
  

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total assets

    $ 192,095      $ 195,093      $ 195,056      $ 195,360      $ 194,021      $ (2,998)      $ (1,926
  

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Liabilities

              

Interest-bearing deposit liabilities

              

Retail deposit liabilities

    $ 142,949      $ 143,491      $ 140,117      $ 139,372      $ 138,285      $ (542    $ 4,664  

Other interest-bearing deposit liabilities (3)

     9,316       11,712       13,391       13,973       13,935       (2,396     (4,619
  

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total Interest-bearing deposit liabilities

     152,265       155,203       153,508       153,345       152,220       (2,938     45  

Short-term borrowings

     2,254       1,726       2,714       948       833       528       1,421  

Long-term debt (4)

     16,367       17,309       17,933       20,315       20,256       (942     (3,889
  

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total interest-bearing liabilities (4)

     170,886       174,238       174,155       174,608       173,309       (3,352     (2,423

Noninterest-bearing deposit liabilities

     147       149       164       181       162       (2     (15

Other liabilities

     7,231       7,021       7,826       6,503       6,760       210       471  
  

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total liabilities

    $ 178,264      $ 181,408      $ 182,145      $ 181,292      $ 180,231      $ (3,144)      $ (1,967

Equity

              

Total equity

    $ 13,831      $ 13,685      $ 12,911      $ 14,068      $ 13,790      $ 146      $ 41  
  

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total liabilities and equity

    $ 192,095      $ 195,093      $ 195,056      $ 195,360      $ 194,021      $ (2,998)      $ (1,926
  

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(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 $773 million in 2Q24, $786 million in 1Q24, $799 million in 4Q23, $812 million in 3Q23, and $824 million in 2Q23.

(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.

Note: Numbers may not foot due to rounding

 

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