8-K
2020-10-16 false 0000040729 0000040729 2020-10-16 2020-10-16 0000040729 us-gaap:CommonStockMember 2020-10-16 2020-10-16 0000040729 us-gaap:AuctionRatePreferredSecuritiesMember 2020-10-16 2020-10-16

 

 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

 

FORM 8-K

 

 

CURRENT REPORT

Pursuant to Section 13 or 15(d)

of the Securities Exchange Act of 1934

October 16, 2020

(Date of report; date of

earliest event reported)

October 16, 2020

Commission file number: 1-3754

 

 

ALLY FINANCIAL INC.

(Exact name of registrant as specified in its charter)

 

 

 

Delaware   38-0572512

(State or other jurisdiction of

incorporation or organization)

 

(I.R.S. Employer

Identification No.)

Ally Detroit Center

500 Woodward Ave.

Floor 10, Detroit, Michigan

48226

(Address of principal executive offices)

(Zip Code)

(866) 710-4623

(Registrant’s telephone number, including area code)

 

 

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):

 

Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

 

Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

 

Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

 

Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act (all listed on the New York Stock Exchange):

 

Title of each class

 

Trading

symbols

 

Name of each exchange

on which registered

Common Stock, par value $0.01 per share   ALLY   NYSE
8.125% Fixed Rate/Floating Rate Trust Preferred Securities, Series 2 of GMAC Capital Trust I   ALLY PRA   NYSE

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

Emerging growth company  

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.  ☐

 

 

 


Item 2.02

Results of Operation and Financial Condition.

On October 16, 2020, Ally Financial Inc. issued a press release announcing preliminary operating results for the third quarter ended September 30, 2020. The press release is attached hereto and incorporated by reference as Exhibit 99.1. Charts furnished to securities analysts are attached hereto and incorporated by reference as Exhibit 99.2. In addition, supplemental financial data furnished to securities analysts is attached hereto and incorporated by reference as Exhibit 99.3.

 

Item 9.01

Financial Statements and Exhibits.

 

Exhibit
No.

  

Description

99.1    Press Release, Dated October 16, 2020
99.2    Charts Furnished to Securities Analysts
99.3    Supplemental Financial Data Furnished to Securities Analysts
104    The cover page from this Current Report on Form 8-K, formatted in Inline XBRL


SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

 

      ALLY FINANCIAL INC.
      (Registrant)
Dated: October 16, 2020      

/s/ David J. DeBrunner

      David J. DeBrunner
      Vice President, Chief Accounting Officer and Controller
EX-99.1

Exhibit 99.1

 

LOGO

News release: IMMEDIATE RELEASE

Ally Financial Reports Third Quarter 2020 Financial Results

Net Income of $476 million, $1.26 EPS, $1.25 Adjusted EPS1

 

     Third Quarter Results    
 

 

PRE-TAX INCOME      RETURN ON EQUITY      COMMON SHAREHOLDER EQUITY
$632 million             13.6%             $37.78/share
         

CORE PRE-TAX INCOME1

$628 million

    

CORE ROTCE1

15.2%

     ADJUSTED TANGIBLE BOOK VALUE1 $34.56/share
         

TOTAL DEPOSITS

$134.9 billion

    

TOTAL LIQUIDITY2

$44.2 billion

    

COMMON EQUITY TIER 1 RATIO

10.4%

 

QUARTERLY

HIGHLIGHTS

  

  EPS of $1.26, up 30% YoY; Adjusted EPS1 of $1.25, up 24% YoY

 

  ROE of 13.6%, up 303 basis points (“bps”) YoY; Core ROTCE1 of 15.2%, up 296 bps YoY

 

  Total Net Revenue of $1.68 billion, up 5% YoY; Adjusted Total Net Revenue1 of $1.68 billion, up 4% YoY

 

  Consumer auto originations of $9.8 billion | Sourced from 3.2 million applications, consistent with prior year levels

 

  6.95% Estimated Retail Auto Originated Yield1 | Retail auto net charge-off rate of 0.64%, down 74 bps YoY

 

  Insurance written premiums of $333 million | Continued strong investment income trends

 

  Total deposits of $134.9 billion, up 13% YoY, and up $3.9 billion QoQ

 

  Retail deposits of $120.8 billion, up $5.0 billion QoQ and up 19% YoY – highest 3Q growth in retail balances

 

  Total retail deposit customers of 2.2 million, up 78 thousand QoQ and up 14% YoY | 40th consecutive quarter of retail customer growth

 

  Ally Home® direct-to-consumer mortgage originations of $1.3 billion | 5th consecutive quarter of improved revenue-per-loan

 

  Ally Invest self-directed accounts up 16% YoY to 400 thousand | $11.1 billion in total net brokerage customer assets, up 55% YoY

 

  Ally Lending gross originations of $167 million | Announced expansion into retail point-of-sale lending

 

  Corporate Finance held-for-investment portfolio of $5.9 billion, up 17% YoY | Stable credit, disciplined risk management approach

 

  Opportunistic liability management actions | $750 million unsecured issuance | Early paydown of $2.5 billion of FHLB borrowings

 

  Board of directors approved 4Q 2020 common dividend of $0.19 per share

 

 

Ally Chief Executive Officer Jeffrey Brown commented on the quarter:

 

“In the third quarter, Ally delivered financial and operational results that reinforce the long-term resiliency of our company. While macroeconomic conditions have been challenging and volatile, we remain guided by a consistent set of strategic priorities, which drove our results this quarter. The adaptability and innovation that define our leading businesses positioned us well for the accelerating digital trends and evolving consumer demands in auto.

 

“Ally’s financial results included $1.25 of Adjusted EPS1 and $1.7 billion of total net revenue, both of which were the highest metrics since becoming a publicly traded company. Our results reflect ongoing strength in credit performance, focused execution from our leading auto finance and deposits businesses, as well as ongoing momentum from our expanded consumer offerings.

 

“In auto finance, we originated $9.8 billion of consumer loans and leases, representing our highest quarterly volume in five years, while generating new originated yields1 of 6.95%. Importantly, we remained disciplined with our underwriting standards, with a retail auto net charge-off rate of 0.64%, our lowest quarterly rate since 2014. At the end of the quarter, nearly 99% of our 1.3 million auto customers that had a COVID-related deferral exited the program. Our ability to offer such comprehensive relief reflects our customer-first values and will drive loyalty and stronger credit performance over time.

 

“2020 has been a banner year for growth among our deposit and consumer products, and that momentum persisted in the third quarter. Retail deposits increased $5.0 billion to nearly $121 billion, and deposits now represent 82% of our total funding. As an early disruptor in online banking, our investments in the Ally Bank brand have steadily increased brand awareness and driven industry-leading loyalty, retention and satisfaction scores. Our scalable, customer-centric platform is positioned for sustained momentum across our digitally-based products, which will enhance future growth opportunities.

 

“Making a positive social impact in our communities has always been an integral part of our culture. In September, we announced the formation of the Ally Charitable Foundation with a commitment to invest $30 million over the next three years into communities we serve across the country, further enabling us to fulfill our promise to ‘Do It Right.’

 

“Our performance in third quarter provides ample reason for optimism and is a testament to our ability to deliver risk-adjusted returns throughout the economic cycle. We are mindful of the uncertainty associated with this pandemic and will remain focused and balanced in our approach as we continue to drive long-term value for our stakeholders.”

 

 

1 

The following are non-GAAP financial measures which Ally believes are important to the reader of the Consolidated Financial Statements, but which are supplemental to and not a substitute for GAAP measures: Adjusted Earnings per Share (Adjusted EPS), Adjusted Total Net Revenue, Core Pre-Tax Income, Core Net Income Attributable to Common Shareholders, Core OID, Core Return on Tangible Common Equity (Core ROTCE), Estimated Retail Auto Originated Yield, Tangible Common Equity, Net Financing Revenue (excluding Core OID) and Adjusted Tangible Book Value per Share (Adjusted TBVPS). These measures are used by management and we believe are useful to investors in assessing the company’s operating performance and capital. Refer to the Definitions of Non-GAAP Financial Measures and Other Key Terms, and Reconciliation to GAAP later in this press release.

2 

Total liquidity includes cash & cash equivalents, highly liquid securities and current committed unused borrowing capacity. See page 18 of the Financial Supplement for more details.


LOGO

 

    Discussion of Third Quarter Results    
 

 

Net income attributable to common shareholders was $476 million in the quarter, compared to net income attributable to common shareholders of $381 million in the third quarter of 2019, as lower provision for credit losses, higher other revenue and higher net financing revenue more than offset higher noninterest expense.

 

Net financing revenue was $1.2 billion, up $12 million year-over-year, driven by higher gains on off-lease vehicles, higher retail auto revenue and lower funding costs, partially offset by higher mortgage premium amortization and lower commercial auto portfolio balance and yield.

 

Other revenue increased $71 million year-over-year to $484 million, including a $13 million increase in the fair value of equity securities in the quarter, compared to an $11 million decrease in the fair value of equity securities in the prior year quarter. Other revenue, excluding the change in fair value of equity securitiesA, increased $46 million year-over-year to $471 million, primarily driven by higher realized investment gains and higher gain-on-sale revenue at Ally Home®.

 

Net interest margin (“NIM”) of 2.65%, including Core OIDB of 2 bps, decreased 5 bps year-over-year. Excluding Core OIDB, NIM was 2.67%, down 5 bps versus the prior year period, due to elevated liquidity levels and mortgage premium amortization more than offsetting higher gains on off-lease vehicles, retail auto portfolio yield expansion and lower funding costs.

 

Provision for credit losses decreased $116 million year-over-year to $147 million, primarily due to lower retail auto net charge-offs.

 

Noninterest expense increased $67 million year-over-year, driven primarily by increased staffing and investments in auto servicing and collections activities, higher weather-related losses, technology spend supporting business initiatives and the addition of Ally Lending in the fourth quarter of 2019.

A 

Adjusted other revenue is a non-GAAP financial measure. Effective 1/1/2018, ASU 2016-01 requires change in the fair value of equity securities to be recognized in current period net income as compared to prior periods in which such adjustments were recognized through other comprehensive income, a component of equity.

B 

Represents a non-GAAP financial measure. Refer to definitions of Non-GAAP Financial Measures and Other Key Terms and reconciliation to GAAP later in this press release.

 

     Third Quarter Financial Results    
 

 

                          Increase/(Decrease) vs.  
($ millions except per share data)    3Q 20      2Q 20      3Q 19      2Q 20      3Q 19  

Net Financing Revenue (excluding Core OID)1

   $ 1,209      $ 1,063      $ 1,195      $ 146      $ 14  

Core OID

     (9)        (9)        (7)        (0)        (2)  

(a) Net Financing Revenue (as reported)

     1,200        1,054        1,188        146        12  

Other Revenue (excluding Change in Fair Value of Equity Securities)2

     471        465        424        5        46  

Change in Fair Value of Equity Securities2

     13        90        (11)        (76)        25  

(b) Other Revenue (as reported)

     484        555        413        (71)        71  

(c) Provision for Credit Losses

     147        287        263        (140)        (116)  

(d) Noninterest Expense

     905        985        838        (80)        67  

Pre-Tax Income from Continuing Operations (a+b-c-d)

   $ 632      $ 337      $ 500      $ 295      $ 132  

Income Tax Expense

     156        95        119        61        37  

Income / (Loss) from Discontinued Operations, Net of Tax

     -        (1)        -        1        -  

Net Income

   $ 476      $ 241      $ 381      $ 235      $ 95  
                                                                   
     3Q 20      2Q 20      3Q 19      2Q 20      3Q 19  

GAAP EPS (diluted)

   $ 1.26      $ 0.64      $ 0.97      $ 0.62      $ 0.29  

Discontinued Operations, Net of Tax

     -        0.00        -        (0.00)        -  

Core OID, Net of Tax

     0.02        0.02        0.02        0.00        0.00  

Change in Fair Value of Equity Securities, Net of Tax

     (0.03)        (0.19)        0.02        0.16        (0.05)  

Repositioning and Other, Net of Tax3

     -        0.13        -        (0.13)        -  

Adjusted EPS4

   $ 1.25      $ 0.61      $ 1.01      $ 0.65      $ 0.25  

Core ROTCE4

     15.2%        7.6%        12.3%     

 

 

 

  

 

 

 

Adjusted Efficiency Ratio4

     47.3%        52.5%        45.3%     

 

 

 

  

 

 

 

Effective Tax Rate

     24.8%        28.2%        23.9%       

 

 

 

 

 

    

 

 

 

 

 

(1)

Represents a non-GAAP financial measure. Adjusted for Core OID. Refer to the Definitions of Non-GAAP Financial Measures and Other Key Terms and Reconciliation to GAAP later in this press release.

(2)

Represents a non-GAAP financial measure. Adjusted for change in the fair value of equity securities due to the implementation of ASU 2016-01 which requires change in the fair value of equity securities to be recognized in current period net income as compared to periods prior to 1/1/2018 in which such adjustments were recognized through other comprehensive income, a component of equity.

(3)

Repositioning and Other, Net of Tax in 2Q 2020 includes a $50 million goodwill impairment at Ally Invest.

(4)

Represents a non-GAAP financial measure. Refer to the Definitions of Non-GAAP Financial Measures and Other Key Terms and Reconciliation to GAAP later in this press release.

 

2


LOGO

 

     Pre-Tax Income by Segment    
 

 

                          Increase/(Decrease) vs.  
($ millions)    3Q 20      2Q 20      3Q 19      2Q 20      3Q 19  

Automotive Finance

   $ 566      $ 329      $ 429      $ 237      $ 137  

Insurance

     78        128        56        (50)        22  

Dealer Financial Services

   $ 644      $ 457      $ 485      $ 187      $ 159  

Corporate Finance

     60        32        44        28        16  

Mortgage Finance

     26        8        11        18        15  

Corporate and Other

     (98)        (160)        (40)        62        (58)  
           

Pre-Tax Income from Continuing Operations

   $ 632      $ 337      $ 500      $ 295      $ 132  

Core OID1

     9        9        7        0        2  

Change in Fair Value of Equity Securities2

     (13)        (90)        11        76        (25)  

Repositioning and Other3

     -        50        -        (50)        -  
           

Core Pre-Tax Income4

   $ 628      $ 306      $ 519      $ 322      $ 109  

 

 

(1)

Core OID for all periods shown is applied to the pre-tax income of the Corporate and Other segment. Refer to the Definitions of Non-GAAP Financial Measures and Other Key Terms and Reconciliation to GAAP later in this press release.

(2)

Change in fair value of equity securities impacts the Insurance and Corporate Finance segments. Reflects equity fair value adjustments related to ASU 2016-01 which requires change in the fair value of equity securities to be recognized in current period net income as compared to periods prior to 1/1/2018 in which such adjustments were recognized through other comprehensive income, a component of equity.

(3)

Repositioning and Other includes a $50 million goodwill impairment at Ally Invest in 2Q 2020.

(4)

Core Pre-Tax Income is a non-GAAP financial measure that adjusts pre-tax income from continuing operations for Core OID, equity fair value adjustments related to ASU 2016-01, and repositioning and other primarily related to a 2Q 2020 goodwill impairment at Ally Invest. 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. Refer to the Definitions of Non-GAAP Financial Measures and Other Key Terms later in this press release.

 

    Discussion of Segment Results    
 

 

 

Auto Finance

Pre-tax income of $566 million was up $137 million year-over-year, primarily due to lower provision for credit losses and higher net financing revenue, partially offset by higher noninterest expense.

 

Net financing revenue of $1.1 billion was $24 million higher year-over-year, driven by higher gains on off-lease vehicles and higher retail auto revenue, partially offset by lower commercial auto portfolio balance and yield. Ally’s retail auto portfolio yield increased 17 bps year-over-year to 6.83%, excluding the impact of hedges.

 

Provision for credit losses totaled $128 million, down $137 million year-over-year, primarily due to lower retail auto net charge-offs. The retail auto net charge-off rate was 0.64%, down 74 bps year-over-year.

 

Consumer auto originations increased to $9.8 billion from $9.3 billion in the prior year period, which included $5.4 billion of used retail volume, or 55% of total originations, $3.0 billion of new retail volume, and $1.4 billion of leases. Estimated retail auto originated yieldC in the quarter was 6.95%.

 

End-of-period auto earning assets decreased $10.1 billion year-over-year from $114.9 billion to $104.8 billion, as an increase in consumer auto earning assets was more than offset by a decline in commercial earning assets. End-of-period consumer auto earning assets were up $1.4 billion year-over-year, driven by growth in operating lease assets and retail loans. End-of-period commercial earning assets of $21.9 billion were $11.5 billion lower year-over-year, driven by industry-wide vehicle inventory declines.

 

Insurance

Pre-tax income of $78 million was up $22 million year-over-year, as higher weather losses and lower earned premiums were more than offset by higher realized investment gains and a $13 million increase in the fair value of equity securitiesD in the quarter compared to a $10 million decrease in the fair value of equity securitiesD in the prior year quarter. Core pre-tax incomeE was flat year-over-year at $65 million.

 

Written premiums were $333 million, down $24 million year-over-year, driven primarily by lower dealer inventory levels.

 

Total investment income was $54 million, up $25 million year-over-year, excluding a $13 million increase in the fair value of equity securities during the quarterD, driven by higher realized investment gains.

 

 

CRepresents a non-GAAP financial measure. Refer to the Definitions of Non-GAAP Financial Measures and Other Key Terms and Reconciliation to GAAP later in this press release.

DASU 2016-01 requires change in the fair value of equity securities to be recognized in current period net income as compared to periods prior to 1/1/2018 in which such adjustments were recognized through other comprehensive income, a component of equity.

ERepresents a non-GAAP financial measure. Excludes equity fair value adjustments related to ASU 2016-01 which requires change in the fair value of equity securities to be recognized in current period net income as compared to periods prior to 1/1/2018 in which such adjustments were recognized through other comprehensive income, a component of equity. Refer to the definitions of Non-GAAP Financial Measures and Other Key Terms and Reconciliation to GAAP later in this press release.

 

3


LOGO

 

Corporate Finance

Pre-tax income was $60 million in the quarter, up $16 million year-over-year, driven by higher net financing revenue.

 

Net financing revenue increased $15 million year-over-year to $75 million, driven by higher loan balances. Other revenue, excluding the change in fair value of equity securitiesF, declined $2 million year-over-year to $8 million.

 

Provision for credit losses totaled $1 million, down $2 million from the prior year period. The held-for-investment loan portfolio increased 17% year-over-year from $5.0 billion to $5.9 billion.

 

Mortgage Finance

Pre-tax income was $26 million in the quarter, up $15 million year-over-year, as higher other revenue more than offset lower net financing revenue and higher noninterest expense.

 

Net financing revenue was down $9 million year-over-year to $30 million, reflecting ongoing elevated prepayment activity and higher premium amortization. Other revenue increased $26 million year-over-year to $36 million, primarily driven by strong gain-on-sale activity. Direct-to-consumer originations totaled $1.3 billion in the quarter, up $0.5 billion year-over-year, demonstrating continued momentum in the Ally Home® business.

 

Existing Ally Bank customers accounted for 54% of the quarter’s direct-to-consumer origination volume.

 

  Capital, Liquidity & Deposits  
     

Capital

Ally paid a $0.19 per share quarterly common dividend in the third quarter. Ally’s Board of Directors approved a $0.19 per share common dividend for the fourth quarter of 2020.

 

Preliminary Common Equity Tier 1 (CET1) capital ratio increased from 10.1% to 10.4% quarter-over-quarter, primarily due to strong net income generation.

 

Liquidity & Funding

Consolidated liquid cash and cash equivalentsG totaled $19.3 billion at quarter-end, up $0.7 billion compared to the end of the second quarter. Total liquidityH was $44.2 billion at quarter-end.

 

Ally issued $750 million of unsecured debt during the quarter at a 1.45% coupon and paid down $2.5 billion of FHLB borrowings at a weighted average coupon of approximately 2.8%.

 

Deposits represented 82% of Ally’s funding portfolio at quarter-end, excluding Core OID balanceI, increasing from 74% a year ago.

 

Deposits

Retail deposits increased to $120.8 billion at quarter-end, up $19.5 billion year-over-year and up $5.0 billion for the quarter. Total deposits increased to $134.9 billion at quarter-end, up $15.7 billion year-over-year.

 

The average retail portfolio deposit rate was 1.26% for the quarter, down 88 bps year-over-year and down 38 bps quarter-over-quarter.

 

Ally’s retail deposit customer base grew 14% year-over-year, totaling 2.2 million customers at quarter-end, while adding 78 thousand customers during the quarter. Millennials continue to comprise the largest generation segment of new customers, accounting for 62% of new customers in the third quarter.

 

 

FASU 2016-01 requires change in the fair value of equity securities to be recognized in current period net income as compared to periods prior to 1/1/2018 in which such adjustments were recognized through other comprehensive income, a component of equity.

GCash & cash equivalents may include the restricted cash accumulation for retained notes maturing within the following 30 days and returned to Ally on the distribution date.

HTotal liquidity includes cash & cash equivalents, highly liquid securities and current committed unused borrowing capacity. See page 18 of the Financial Supplement for more details.

IRepresents a non-GAAP financial measure. Refer to the definitions of Non-GAAP Financial Measures and Other Key Terms and Reconciliation to GAAP later in this press release.

 

4


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     Definitions of Non-GAAP  Financial Measures and Other Key Terms     
 

Ally believes the non-GAAP financial measures defined here are important to the reader of the Consolidated Financial Statements, but these are supplemental to and not a substitute for GAAP measures.

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) excludes equity fair value adjustments (net of tax) related to ASU 2016-01 which requires change in the fair value of equity securities to be recognized in current period net income as compared to periods prior to 1/1/18 in which such adjustments were recognized through other comprehensive income, a component of equity, (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 (e.g., Series A and Series G) that have been taken by the company to normalize its capital structure, as applicable for respective periods.

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 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. In the denominator, total net revenue is adjusted for Core OID and Insurance segment revenue. See Reconciliation to GAAP on page 7 for calculation methodology and details.

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. See Reconciliation to GAAP on page 7 for calculation methodology and details.

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. See Reconciliation to GAAP on page 6 for calculation methodology and details.

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. See page 7 for calculation methodology and details.

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. See page 7 for calculation methodology and details.

Core Pre-Tax Income is a non-GAAP financial measure that adjusts pre-tax income from continuing operations by excluding (1) Core OID, and (2) equity fair value adjustments related to ASU 2016-01 which requires change in the fair value of equity securities to be recognized in current period net income as compared to periods prior to 1/1/18 in which such adjustments were recognized through other comprehensive income, a component of equity, 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. 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. See the Pre-Tax Income by Segment Table on page 3 for calculation methodology and details.

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, fair value adjustments (net of tax) related to ASU 2016-01 which requires change in the fair value of equity securities to be recognized in current period net income as compared to periods prior to 1/1/18 in which such adjustments were recognized through other comprehensive income, a component of equity, 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.

Corporate and Other primarily consists of activity related to centralized corporate treasury activities such as management of the cash and corporate investment securities and loan portfolios, short- and long-term debt, retail and brokered deposit liabilities, derivative instruments, the amortization of the discount associated with new debt issuances and bond exchanges, and the residual impacts of our corporate FTP and treasury ALM activities. Corporate and Other also includes certain equity investments, the management of our legacy mortgage portfolio, and reclassifications and eliminations between the reportable operating segments. Subsequent to June 1, 2016, the revenue and expense activity associated with Ally Invest was included within the Corporate and Other segment. Subsequent to October 1, 2019, the revenue and expense activity associated with Health Credit Services (rebranded Ally Lending) was included within the Corporate and Other segment.

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 extends through December 31, 2021. Beginning on January 1, 2022, we will be 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 plan to phase in the regulatory capital impacts of CECL based on this five-year transition period.

 

5


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Estimated Retail Auto Originated Yield is a forward-looking non-GAAP financial measure determined by calculating the estimated average annualized yield for loans originated during the period. At this time there currently is no comparable GAAP financial measure for Estimated Retail Auto Originated Yield and therefore this forecasted estimate of yield at the time of origination cannot be quantitatively reconciled to comparable GAAP information.

Net Charge-Off Ratios are calculated as annualized net charge-offs divided by average outstanding finance receivables and loans excluding loans measured at fair value and loans held-for-sale.

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. See page 6 for calculation methodology & details.

U.S. Consumer Auto Originations

 

    New Retail – standard and subvented rate new vehicle loans    Used Retail – used vehicle loans

    Growth – total originations from non-GM/Chrysler dealers and direct-to-consumer loans

   Lease – new vehicle lease originations

 

     Reconciliation to GAAP     
  

 

Adjusted Earnings per Share

                            
Numerator ($ millions)        3Q 20     2Q 20     3Q 19  

GAAP Net Income Attributable to Common Shareholders

     $ 476     $ 241     $ 381  

Discontinued Operations, Net of Tax

       -       1       -  

Core OID

       9       9       7  

Repositioning and Other

       -       50       -  

Change in the Fair Value of Equity Securities

       (13     (90     11  

Tax on: Core OID & Change in Fair Value of Equity Securities (21% starting 1Q18)

       1       17       (4

Core Net Income Attributable to Common Shareholders

 

[a]

   $ 473     $ 228     $ 396  

Denominator

        

Weighted-Average Common Shares Outstanding - (Diluted, thousands)

 

[b]

     377,011       375,762       392,604  

Adjusted EPS

 

[a] ÷ [b]

   $ 1.25     $ 0.61     $ 1.01  
                              
Core Return on Tangible Common Equity (ROTCE)                       
Numerator ($ millions)          3Q 20       2Q 20         3Q 19    

GAAP Net Income Attributable to Common Shareholders

     $ 476     $ 241     $ 381  

Discontinued Operations, Net of Tax

       -       1       -  

Core OID

       9       9       7  

Repositioning and Other

       -       50       -  

Change in Fair Value of Equity Securities

       (13     (90     11  

Tax on: Core OID & Change in Fair Value of Equity Securities (21% starting 1Q18)

       1       17       (4

Core Net Income Attributable to Common Shareholders

 

[a]

   $ 473     $ 228     $ 396  

Denominator (2-period average, $ billions)

        

GAAP Shareholder’s Equity

     $ 14.0     $ 13.7     $ 14.4  

Goodwill & Identifiable Intangibles, Net of Deferred Tax Liabilities (DTLs)

       (0.4     (0.4     (0.3

Tangible Common Equity

     $ 13.6     $ 13.3     $ 14.1  

Core OID Balance

       (1.0     (1.1     (1.1

Net Deferred Tax Asset (DTA)

       (0.1     (0.2     (0.1
Normalized Common Equity   [b]    $ 12.4     $ 12.0     $ 12.9  

Core Return on Tangible Common Equity

 

[a] ÷ [b]

     15.2     7.6     12.3

 

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Adjusted Tangible Book Value per Share

                            
    Numerator ($ billions)        3Q 20     2Q 20     3Q 19  

    GAAP Common Shareholder’s Equity

     $ 14.1     $ 13.8     $ 14.5  

Goodwill and Identifiable Intangible Assets, Net of DTLs

       (0.4     (0.4     (0.3

Tangible Common Equity

       13.7       13.4       14.2  

Tax-effected Core OID Balance (21% starting in 4Q17)

       (0.8     (0.8     (0.8

    Adjusted Tangible Book Value

 

[a]

   $ 12.9     $ 12.6     $ 13.3  

    Denominator

        
    Issued Shares Outstanding (period-end, thousands)   [b]    373,857     373,837     383,523  

    Metric

        

    GAAP Common Shareholder’s Equity per Share

     $ 37.8     $ 37.0     $ 37.7  

Goodwill and Identifiable Intangible Assets, Net of DTLs per Share

       (1.0     (1.0     (0.7

Tangible Common Equity per Share

     $ 36.7     $ 35.9     $ 37.0  

Tax-effected Core OID Balance (21% starting in 4Q17) per Share

       (2.2     (2.2     (2.2

    Adjusted Tangible Book Value per Share

 

[a] ÷ [b]

   $ 34.6     $ 33.7     $ 34.7  
        
Adjusted Efficiency Ratio

 

    Numerator ($ millions)        3Q 20     2Q 20     3Q 19  

    GAAP Noninterest Expense

     $ 905     $ 985     $ 838  

Rep and Warrant Expense

                   (0

Insurance Expense

       (268     (322     (247

Repositioning and Other

             (50      

    Adjusted Noninterest Expense for Adjusted Efficiency Ratio

 

[a]

   $ 637     $ 613     $ 591  
    Denominator ($ millions)                       

    Total Net Revenue

     $ 1,684     $ 1,609     $ 1,601  

Core OID

       9       9       7  

Insurance Revenue

       (346     (450     (303

    Adjusted Net Revenue for Adjusted Efficiency Ratio

 

[b]

   $ 1,347     $ 1,168     $ 1,305  

    Adjusted Efficiency Ratio

 

[a] ÷ [b]

     47.3     52.5     45.3
                        
Original Issue Discount Amortization Expense ($ millions)         3Q 20     2Q 20     3Q 19  

    Core Original Issue Discount (Core OID) Amortization Expense (excl. accelerated OID)

     $ 9     $ 9     $ 7  

Other OID

       3       4       3  

    GAAP Original Issue Discount Amortization Expense

       $ 12     $ 12     $ 11  
                        
         
Outstanding Original Issue Discount Balance ($ millions)        3Q 20     2Q 20     3Q 19  

    Core Outstanding Original Issue Discount Balance (Core OID Balance)

     $ (1,037   $ (1,046   $ (1,071

Other Outstanding OID Balance

       (48     (46     (40

    GAAP Outstanding Original Issue Discount Balance

       $ (1,084   $ (1,092   $ (1,111

 

7


LOGO

 

Net Financing Revenue (ex. Core OID)                                
    ($ millions)           3Q 20      2Q 20      3Q 19  

    GAAP Net Financing Revenue

      $ 1,200      $ 1,054      $ 1,188  

Core OID

        9        9        7  

    Net Financing Revenue (ex. Core OID)

     [a]      $ 1,209      $ 1,063      $ 1,195  
           
Adjusted Other Revenue                            
    ($ millions)           3Q 20      2Q 20      3Q 19  

    GAAP Other Revenue

      $ 484      $ 555      $ 413  

Change in Fair Value of Equity Securities

        (13)        (90)        11  

    Adjusted Other Revenue

     [b]      $ 471      $ 465      $ 424  
           
Adjusted Total Net Revenue                            
    ($ millions)           3Q 20      2Q 20      3Q 19  

    Adjusted Total Net Revenue

     [a] + [b]      $ 1,680      $ 1,528      $ 1,620  

1Non-GAAP line items walk to Core Pre-Tax Income, a non-GAAP financial measure that adjusts Pre-Tax Income.

 

Insurance Non-GAAP Walk to Core Pre-Tax Income

 

     3Q 2020             3Q 2019          

    ($ millions)

 

    Insurance

     GAAP        Core OID       


 

Change in
the fair value
of equity
securities

 

 
 
 
 

 

   
Non-GAAP1
 
 
    GAAP        Core OID       


 

Change in
the fair value
of equity
securities

 

 
 
 
 

 

    
Non-GAAP1
 
 

Premiums, Service Revenue Earned and Other

   $ 279      $ -      $ -     $ 279     $ 283      $ -      $ -      $ 283  

Losses and Loss Adjustment Expenses

     85        -        -       85       74        -        -        74  

Acquisition and Underwriting Expenses

     183        -        -       183       173        -        -        173  

Investment Income and Other

     67        -        (13     54       20        -        10        30  

Pre-Tax Income from Continuing Operations

   $ 78      $ -      $ (13   $ 65     $ 56      $ -      $ 10      $ 66  

1Non-GAAP line items walk to Core Pre-Tax Income, a non-GAAP financial measure that adjusts Pre-Tax Income.

 

8


LOGO

 

     Additional Financial Information    
 

For additional financial information, the third quarter 2020 earnings presentation and financial supplement are available in the Events & Presentations section of Ally’s Investor Relations Website at http://www.ally.com/about/investor/events-presentations/.

About Ally Financial Inc.

Ally Financial Inc. (NYSE: ALLY) is a leading digital financial-services company with $185.3 billion in assets as of September 30, 2020. As a customer-centric company with passionate customer service and innovative financial solutions, we are relentlessly focused on “Doing it Right” and being a trusted financial-services provider to our consumer, commercial, and corporate customers. We are one of the largest full-service automotive-finance operations in the country and offer a wide range of financial services and insurance products to automotive dealerships and consumers. Our award-winning online bank (Ally Bank, Member FDIC and Equal Housing Lender) offers mortgage lending, personal lending, and a variety of deposit and other banking products, including savings, money-market, and checking accounts, certificates of deposit (CDs), and individual retirement accounts (IRAs). Additionally, we offer securities-brokerage and investment-advisory services through Ally Invest. Our robust corporate finance business offers capital for equity sponsors and middle-market companies.

For more information and disclosures about Ally, visit https://www.ally.com/#disclosures.

Forward-Looking Statements

This earnings release 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 release or related communication.

This earnings release 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 future effects of COVID-19 and our ability to navigate them, the outlook for financial and operating metrics and performance, 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, 2019, 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 earnings release and related communications contain specifically identified non-GAAP financial measures, which supplement the results that are reported according to generally accepted accounting principles (“GAAP”). These non-GAAP financial measures may be useful to investors but should not be viewed in isolation from, or as a substitute for, GAAP results. Differences between non-GAAP financial measures and comparable GAAP financial measures are reconciled in the release.

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.

 

Contacts:   
Daniel Eller    Jillian Palash
Ally Investor Relations    Ally Communications (Media)
704-444-5216    704-644-6201
daniel.eller@ally.com                    jillian.palash@ally.com

 

9

EX-99.2

Exhibit 99.2 Ally Financial Inc. 3Q 2020 Earnings Review October 16, 2020 Contact Ally Investor Relations at (866) 710-4623 or investor.relations@ally.com 3Q 2020 Preliminary Results 1Exhibit 99.2 Ally Financial Inc. 3Q 2020 Earnings Review October 16, 2020 Contact Ally Investor Relations at (866) 710-4623 or investor.relations@ally.com 3Q 2020 Preliminary Results 1


Forward-Looking Statements and Additional Information This presentation and related communications should be read in conjunction with the financial statements, notes, and other information contained in our Annual Reports on Form 10-K, Quarterly Reports on Form 10-Q, and Current Reports on Form 8-K. This information is preliminary and based on company and third-party data available at the time of the presentation or related communication. This presentation and related communications contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements can be identified by the fact that they do not relate strictly to historical or current facts—such as statements about future effects of COVID-19 and our ability to navigate them, the outlook for financial and operating metrics and performance, 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, 2019, our subsequent Quarterly Reports on Form 10-Q or Current Reports on Form 8-K, or other applicable documents that are filed or furnished with the U.S. Securities and Exchange Commission (collectively, our “SEC filings”). Any forward-looking statement made by us or on our behalf speaks only as of the date that it was made. We do not undertake to update any forward-looking statement to reflect the impact of events, circumstances, or results that arise after the date that the statement was made, except as required by applicable securities laws. You, however, should consult further disclosures (including disclosures of a forward-looking nature) that we may make in any subsequent SEC filings. This presentation and related communications contain specifically identified non-GAAP financial measures, which supplement the results that are reported according to 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. 3Q 2020 Preliminary Results 2Forward-Looking Statements and Additional Information This presentation and related communications should be read in conjunction with the financial statements, notes, and other information contained in our Annual Reports on Form 10-K, Quarterly Reports on Form 10-Q, and Current Reports on Form 8-K. This information is preliminary and based on company and third-party data available at the time of the presentation or related communication. This presentation and related communications contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements can be identified by the fact that they do not relate strictly to historical or current facts—such as statements about future effects of COVID-19 and our ability to navigate them, the outlook for financial and operating metrics and performance, 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, 2019, our subsequent Quarterly Reports on Form 10-Q or Current Reports on Form 8-K, or other applicable documents that are filed or furnished with the U.S. Securities and Exchange Commission (collectively, our “SEC filings”). Any forward-looking statement made by us or on our behalf speaks only as of the date that it was made. We do not undertake to update any forward-looking statement to reflect the impact of events, circumstances, or results that arise after the date that the statement was made, except as required by applicable securities laws. You, however, should consult further disclosures (including disclosures of a forward-looking nature) that we may make in any subsequent SEC filings. This presentation and related communications contain specifically identified non-GAAP financial measures, which supplement the results that are reported according to 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. 3Q 2020 Preliminary Results 2


GAAP and Core Results: Quarterly ($ millions except per share data) 3Q 20 2Q 20 1Q 20 4Q 19 3Q 19 GAAP net income (loss) attributable to common shareholders (NIAC) $ 476 $ 241 $ (319) $ 378 $ 381 (1)(2) Core net income (loss) attributable to common shareholders $ 473 $ 228 $ (166) $ 364 $ 396 GAAP earnings per common share (EPS) (basic or diluted as applicable, NIAC) $ 1.26 $ 0.64 $ (0.85) $ 0.99 $ 0.97 (1)(3) Adjusted EPS $ 1.25 $ 0.61 $ (0.44) $ 0.95 $ 1.01 Return (NIAC) on GAAP shareholder's equity 13.6% 7.1% -9.1% 10.5% 10.6% (1)(4) Core ROTCE 15.2% 7.6% -5.4% 11.2% 12.3% GAAP common shareholder's equity per share $ 37.8 $ 37.0 $ 36.2 $ 38.5 $ 37.7 (1)(5) Adjusted tangible book value per share (Adjusted TBVPS) $ 34.6 $ 33.7 $ 32.8 $ 35.1 $ 34.7 Efficiency Ratio 53.7% 61.2% 65.2% 53.6% 52.3% (1)(6) Adjusted Efficiency Ratio 47.3% 52.5% 52.3% 49.4% 45.3% GAAP total net revenue $ 1,684 $ 1,609 $ 1,412 $ 1,643 $ 1,601 (1)(7) Adjusted total net revenue $ 1,680 $ 1,528 $ 1,606 $ 1,622 $ 1,620 (1) The following are non-GAAP financial measures which Ally believes are important to the reader of the Consolidated Financial Statements, but which are supplemental to and not a substitute for GAAP measures: Adjusted earnings per share (Adjusted EPS), Core pre-tax income (loss), Core net income (loss) attributable to common shareholders, Core return on tangible common equity (Core ROTCE), Adjusted efficiency ratio, Adjusted total net revenue, Net financing revenue (excluding Core OID), Adjusted other revenue, Core original issue discount (Core OID) amortization expense, Core outstanding original issue discount balance (Core OID balance), and Adjusted tangible book value per share (Adjusted TBVPS). These measures are used by management and we believe are useful to investors in assessing the company’s operating performance and capital. Refer to the Definitions of Non-GAAP Financial Measures and Other Key Terms, and Reconciliation to GAAP later in this document. (2) Core net income (loss) attributable to common shareholders is a non-GAAP financial measure that serves as the numerator in the calculations of Adjusted EPS and Core ROTCE and that, like those measures, is believed by management to help the reader better understand the operating performance of the core businesses and their ability to generate earnings. See pages 30 and 32 for calculation methodology and details. (3) Adjusted earnings per share (Adjusted EPS) is a non-GAAP financial measure that adjusts GAAP EPS for revenue and expense items that are typically strategic in nature or that management otherwise does not view as reflecting the operating performance of the company. Management believes Adjusted EPS can help the reader better understand the operating performance of the core businesses and their ability to generate earnings. See page 32 for calculation methodology and details. (4) Core return on tangible common equity (Core ROTCE) is a non-GAAP financial measure that management believes is helpful for readers to better understand the ongoing ability of the company to generate returns on its equity base that supports core operations. For purposes of this calculation, tangible common equity is adjusted for Core OID balance and the net deferred tax asset. See page 34 for calculation methodology and details. (5) Adjusted tangible book value per share (Adjusted TBVPS) is a non-GAAP financial measure that reflects the book value of equity attributable to shareholders even if tax-effected Core OID balance were accelerated immediately through the financial statements. As a result, management believes Adjusted TBVPS provides the reader with an assessment of value that is more conservative than GAAP common shareholder’s equity per share. See page 33 for calculation methodology and details. (6) Adjusted efficiency ratio is a non-GAAP financial measure that management believes is helpful to readers in comparing the efficiency of its core banking and lending businesses with those of its peers. Adjusted efficiency ratio generally adjusts for Insurance segment revenue and expense, rep and warrant expense, Core OID, and repositioning and other. See page 35 for calculation methodology and details. (7) Adjusted total net revenue is a non-GAAP financial measure that adjusts GAAP total net revenue for Core OID and for change in the fair value of equity securities due to the implementation of ASU 2016-01 which requires change in the fair value of equity securities to be recognized in current period net income as compared to periods prior to 1/1/18 in which such adjustments were recognized through other comprehensive income, a component of equity. See page 37 for calculation methodology and details. 3Q 2020 Preliminary Results 3GAAP and Core Results: Quarterly ($ millions except per share data) 3Q 20 2Q 20 1Q 20 4Q 19 3Q 19 GAAP net income (loss) attributable to common shareholders (NIAC) $ 476 $ 241 $ (319) $ 378 $ 381 (1)(2) Core net income (loss) attributable to common shareholders $ 473 $ 228 $ (166) $ 364 $ 396 GAAP earnings per common share (EPS) (basic or diluted as applicable, NIAC) $ 1.26 $ 0.64 $ (0.85) $ 0.99 $ 0.97 (1)(3) Adjusted EPS $ 1.25 $ 0.61 $ (0.44) $ 0.95 $ 1.01 Return (NIAC) on GAAP shareholder's equity 13.6% 7.1% -9.1% 10.5% 10.6% (1)(4) Core ROTCE 15.2% 7.6% -5.4% 11.2% 12.3% GAAP common shareholder's equity per share $ 37.8 $ 37.0 $ 36.2 $ 38.5 $ 37.7 (1)(5) Adjusted tangible book value per share (Adjusted TBVPS) $ 34.6 $ 33.7 $ 32.8 $ 35.1 $ 34.7 Efficiency Ratio 53.7% 61.2% 65.2% 53.6% 52.3% (1)(6) Adjusted Efficiency Ratio 47.3% 52.5% 52.3% 49.4% 45.3% GAAP total net revenue $ 1,684 $ 1,609 $ 1,412 $ 1,643 $ 1,601 (1)(7) Adjusted total net revenue $ 1,680 $ 1,528 $ 1,606 $ 1,622 $ 1,620 (1) The following are non-GAAP financial measures which Ally believes are important to the reader of the Consolidated Financial Statements, but which are supplemental to and not a substitute for GAAP measures: Adjusted earnings per share (Adjusted EPS), Core pre-tax income (loss), Core net income (loss) attributable to common shareholders, Core return on tangible common equity (Core ROTCE), Adjusted efficiency ratio, Adjusted total net revenue, Net financing revenue (excluding Core OID), Adjusted other revenue, Core original issue discount (Core OID) amortization expense, Core outstanding original issue discount balance (Core OID balance), and Adjusted tangible book value per share (Adjusted TBVPS). These measures are used by management and we believe are useful to investors in assessing the company’s operating performance and capital. Refer to the Definitions of Non-GAAP Financial Measures and Other Key Terms, and Reconciliation to GAAP later in this document. (2) Core net income (loss) attributable to common shareholders is a non-GAAP financial measure that serves as the numerator in the calculations of Adjusted EPS and Core ROTCE and that, like those measures, is believed by management to help the reader better understand the operating performance of the core businesses and their ability to generate earnings. See pages 30 and 32 for calculation methodology and details. (3) Adjusted earnings per share (Adjusted EPS) is a non-GAAP financial measure that adjusts GAAP EPS for revenue and expense items that are typically strategic in nature or that management otherwise does not view as reflecting the operating performance of the company. Management believes Adjusted EPS can help the reader better understand the operating performance of the core businesses and their ability to generate earnings. See page 32 for calculation methodology and details. (4) Core return on tangible common equity (Core ROTCE) is a non-GAAP financial measure that management believes is helpful for readers to better understand the ongoing ability of the company to generate returns on its equity base that supports core operations. For purposes of this calculation, tangible common equity is adjusted for Core OID balance and the net deferred tax asset. See page 34 for calculation methodology and details. (5) Adjusted tangible book value per share (Adjusted TBVPS) is a non-GAAP financial measure that reflects the book value of equity attributable to shareholders even if tax-effected Core OID balance were accelerated immediately through the financial statements. As a result, management believes Adjusted TBVPS provides the reader with an assessment of value that is more conservative than GAAP common shareholder’s equity per share. See page 33 for calculation methodology and details. (6) Adjusted efficiency ratio is a non-GAAP financial measure that management believes is helpful to readers in comparing the efficiency of its core banking and lending businesses with those of its peers. Adjusted efficiency ratio generally adjusts for Insurance segment revenue and expense, rep and warrant expense, Core OID, and repositioning and other. See page 35 for calculation methodology and details. (7) Adjusted total net revenue is a non-GAAP financial measure that adjusts GAAP total net revenue for Core OID and for change in the fair value of equity securities due to the implementation of ASU 2016-01 which requires change in the fair value of equity securities to be recognized in current period net income as compared to periods prior to 1/1/18 in which such adjustments were recognized through other comprehensive income, a component of equity. See page 37 for calculation methodology and details. 3Q 2020 Preliminary Results 3


3Q 2020 Highlights Consistent prioritization of our employees, our customers and our communities (1) (1) > Adjusted EPS of $1.25 | Core ROTCE of 15.2% | Highest quarterly levels on record (1) ▪ Adjusted total net revenue of $1.68 billion, up 4% YoY | Solid asset quality performance across all portfolios > Ally’s balance sheet foundations remain strong and well-positioned ▪ Demonstrated by robust capital, funding, liquidity and reserve positions > Auto & Insurance results demonstrate accelerating progress across adaptable platforms ▪ Consumer auto originations of $9.8 billion | Sourced from 3.2 million applications, consistent with prior year levels (2) ▪ 6.95% estimated retail auto originated yield | 0.64% retail net charge-offs, down 74bps YoY ▪ Insurance written premiums of $333 million | Continued strong investment income trends > Digitally-based, direct bank momentum continued across consumer & commercial products th ▪ Total deposits of $134.9 billion, grew 13% YoY | 40 consecutive quarter of retail customer growth, ending at 2.2 million th ▪ Ally Home®: $1.3 billion direct-to-consumer originations | 5 consecutive quarter of improved revenue-per-loan ▪ Ally Invest: 400k self-directed accounts, up 16% YoY | Ally Lending: $167 million originations; expanded into Retail PoS ▪ Corporate Finance: $5.9 billion portfolio, up 17% YoY | Stable credit, disciplined risk management approach (1) Represents a non-GAAP financial measure. See pages 32 and 34 for calculation methodology and details. (2) Estimated Retail Auto Originated Yield is a forward-looking non-GAAP financial measure determined by calculating the estimated average annualized yield for loans originated during the period. See page 31 for details. 3Q 2020 Preliminary Results 43Q 2020 Highlights Consistent prioritization of our employees, our customers and our communities (1) (1) > Adjusted EPS of $1.25 | Core ROTCE of 15.2% | Highest quarterly levels on record (1) ▪ Adjusted total net revenue of $1.68 billion, up 4% YoY | Solid asset quality performance across all portfolios > Ally’s balance sheet foundations remain strong and well-positioned ▪ Demonstrated by robust capital, funding, liquidity and reserve positions > Auto & Insurance results demonstrate accelerating progress across adaptable platforms ▪ Consumer auto originations of $9.8 billion | Sourced from 3.2 million applications, consistent with prior year levels (2) ▪ 6.95% estimated retail auto originated yield | 0.64% retail net charge-offs, down 74bps YoY ▪ Insurance written premiums of $333 million | Continued strong investment income trends > Digitally-based, direct bank momentum continued across consumer & commercial products th ▪ Total deposits of $134.9 billion, grew 13% YoY | 40 consecutive quarter of retail customer growth, ending at 2.2 million th ▪ Ally Home®: $1.3 billion direct-to-consumer originations | 5 consecutive quarter of improved revenue-per-loan ▪ Ally Invest: 400k self-directed accounts, up 16% YoY | Ally Lending: $167 million originations; expanded into Retail PoS ▪ Corporate Finance: $5.9 billion portfolio, up 17% YoY | Stable credit, disciplined risk management approach (1) Represents a non-GAAP financial measure. See pages 32 and 34 for calculation methodology and details. (2) Estimated Retail Auto Originated Yield is a forward-looking non-GAAP financial measure determined by calculating the estimated average annualized yield for loans originated during the period. See page 31 for details. 3Q 2020 Preliminary Results 4


Ally’s Sustainable Competitive Advantage Auto & Insurance: Established, Market-leading Capabilities Tech, Digital Tools & Data Analytics Full-Market Reach Across Growing Dealer Base Established & Emerging Players | Franchised & Independent Modern Servicing System | Digital, Self-service Portals Full Product Suite + Real-time Market Insights Dynamic Underwriting + Disciplined Servicer Retail, Lease, Floorplan | Insurance | SmartAuction Full-Spectrum Credit Expertise | Customer-Focused Actions Strong Dealer-Partner + Differentiated Service Levels Proven Capabilities + Adaptable Model 100-years in Auto | Anticipating & Evolving with Market Enhanced Dealer Engagement | Experienced Field Reps & Teams Ally Bank: Early-Disruptor With Expanding Digital Consumer Platform Digitally-based, Frictionless Platforms Tech + Data-Driven Approach Leveraging Digital Model for Insights & Trends 0 Branches | Differentiated by Digital | Award-winning High Customer Growth + Low Cost to Acquire Diversified Consumer + Commercial Product Offerings 10-years of Growth | Millennial-driven Account Openings Save, Pay, Borrow & Invest | Ongoing Relationship Deepening Scalable Infrastructure + Strategically Partnered Award-winning Offerings + Leading Customer Service Positioned for Organic Growth | Enhancing-Partnerships Built for the Customer | Low Fees | Strong Loyalty & Satisfaction 3Q 2020 Preliminary Results 5Ally’s Sustainable Competitive Advantage Auto & Insurance: Established, Market-leading Capabilities Tech, Digital Tools & Data Analytics Full-Market Reach Across Growing Dealer Base Established & Emerging Players | Franchised & Independent Modern Servicing System | Digital, Self-service Portals Full Product Suite + Real-time Market Insights Dynamic Underwriting + Disciplined Servicer Retail, Lease, Floorplan | Insurance | SmartAuction Full-Spectrum Credit Expertise | Customer-Focused Actions Strong Dealer-Partner + Differentiated Service Levels Proven Capabilities + Adaptable Model 100-years in Auto | Anticipating & Evolving with Market Enhanced Dealer Engagement | Experienced Field Reps & Teams Ally Bank: Early-Disruptor With Expanding Digital Consumer Platform Digitally-based, Frictionless Platforms Tech + Data-Driven Approach Leveraging Digital Model for Insights & Trends 0 Branches | Differentiated by Digital | Award-winning High Customer Growth + Low Cost to Acquire Diversified Consumer + Commercial Product Offerings 10-years of Growth | Millennial-driven Account Openings Save, Pay, Borrow & Invest | Ongoing Relationship Deepening Scalable Infrastructure + Strategically Partnered Award-winning Offerings + Leading Customer Service Positioned for Organic Growth | Enhancing-Partnerships Built for the Customer | Low Fees | Strong Loyalty & Satisfaction 3Q 2020 Preliminary Results 5


Ally’s Customer Evolution 10-Years of Customer Growth Ally’s Growing Customer Base Ally Bank Customer Trends Retail Deposit Customers % Multi-Product Customers 8.5M+ 2.2M 2.0M customers 7% # of Customers 6% 1.2M 4.5M 0.8M Auto 0.4M <1% 2010 2013 2016 2019 3Q 2020 Note: Multi-product Customers represent Deposit Customers with an Ally Invest or Ally Home relationship. Insurance Ally Auto Dealer Relationship & Application Trends Active U.S. Dealer Relationships U.S. Consumer Applications 2.0M Retail Deposits 18.7K 18.3K 17.1K 14.9K 1.0M 12.6M 11.2M 12.4K 9.3M YTD 500k 7.8M Invest 3.7M 50K Home 2010 2013 2016 2019 3Q 2020 Note: Active U.S. Dealer Relationships include Ally active dealers, excluding RV Commercial and Consumer lines of business exited in 2Q 18. 3Q 2020 Preliminary Results 6Ally’s Customer Evolution 10-Years of Customer Growth Ally’s Growing Customer Base Ally Bank Customer Trends Retail Deposit Customers % Multi-Product Customers 8.5M+ 2.2M 2.0M customers 7% # of Customers 6% 1.2M 4.5M 0.8M Auto 0.4M <1% 2010 2013 2016 2019 3Q 2020 Note: Multi-product Customers represent Deposit Customers with an Ally Invest or Ally Home relationship. Insurance Ally Auto Dealer Relationship & Application Trends Active U.S. Dealer Relationships U.S. Consumer Applications 2.0M Retail Deposits 18.7K 18.3K 17.1K 14.9K 1.0M 12.6M 11.2M 12.4K 9.3M YTD 500k 7.8M Invest 3.7M 50K Home 2010 2013 2016 2019 3Q 2020 Note: Active U.S. Dealer Relationships include Ally active dealers, excluding RV Commercial and Consumer lines of business exited in 2Q 18. 3Q 2020 Preliminary Results 6


CECL Day 1 Impact: $2.7/share Core Metric Trends (1) (2) Adjusted Total Net Revenue Adjusted Earnings Per Share ($ millions) $1.25 $1,680 $1.01 $0.97 $0.95 $0.92 $0.91 $1,622 $1,620 $1,606 $0.83 $0.80 $1,556 $1,557 $1,535 $1,528 $0.70 $1,521 $471 $0.68 $0.65 $1,492 $1,480 $424 $0.61 $1,471 $458 $1,463 $451 $393 $393 $396 $392 $379 $465 $381 $356 $394 $1,209 $1,195 $1,163 $1,164 $1,164 $1,154 $1,139 $1,129 $1,113 $1,115 $1,099 $1,069 $1,063 3Q 17 4Q 17 1Q 18 2Q 18 3Q 18 4Q 18 1Q 19 2Q 19 3Q 19 4Q 19 1Q 20 2Q 20 3Q 20 ($0.44) 3Q 17 4Q 17 1Q 18 2Q 18 3Q 18 4Q 18 1Q 19 2Q 19 3Q 19 4Q 19 1Q 20 2Q 20 3Q 20 Net financing revenue (excluding Core OID) Other Revenue (adjusted) (1) Represents a non-GAAP financial measure. See page 32 for details. (2) Represents a non-GAAP financial measure. See page 37 for details. (3) Total Deposits Adjusted Tangible Book Value per Share ($ billions) $134.9 $35.1 $34.7 $131.0 $34.6 $33.7 $33.6 $120.8 $122.3 $119.2 $14.1 $32.8 $116.3 $15.2 $113.3 $31.4 $16.3 $106.2 $17.0 $17.9 $101.4 $98.7 $17.7 $97.4 $17.9 $29.9 $93.3 $90.1 $17.1 $16.8 $28.6 $15.8 $17.0 $28.2 $28.1 $28.1 $15.3 $27.4 $15.2 $120.8 $115.8 $106.1 $103.7 $101.3 $98.6 $95.4 $89.1 $84.6 $81.7 $81.7 $77.9 $74.9 3Q 17 4Q 17 1Q 18 2Q 18 3Q 18 4Q 18 1Q 19 2Q 19 3Q 19 4Q 19 1Q 20 2Q 20 3Q 20 3Q 17 4Q 17 1Q 18 2Q 18 3Q 18 4Q 18 1Q 19 2Q 19 3Q 19 4Q 19 1Q 20 2Q 20 3Q 20 Retail Deposits Brokered / Other (3) Represents a non-GAAP financial measure. See page 33 for details. Note: Brokered includes sweep deposits. Other includes mortgage escrow and other deposits. 3Q 2020 Preliminary Results 7CECL Day 1 Impact: $2.7/share Core Metric Trends (1) (2) Adjusted Total Net Revenue Adjusted Earnings Per Share ($ millions) $1.25 $1,680 $1.01 $0.97 $0.95 $0.92 $0.91 $1,622 $1,620 $1,606 $0.83 $0.80 $1,556 $1,557 $1,535 $1,528 $0.70 $1,521 $471 $0.68 $0.65 $1,492 $1,480 $424 $0.61 $1,471 $458 $1,463 $451 $393 $393 $396 $392 $379 $465 $381 $356 $394 $1,209 $1,195 $1,163 $1,164 $1,164 $1,154 $1,139 $1,129 $1,113 $1,115 $1,099 $1,069 $1,063 3Q 17 4Q 17 1Q 18 2Q 18 3Q 18 4Q 18 1Q 19 2Q 19 3Q 19 4Q 19 1Q 20 2Q 20 3Q 20 ($0.44) 3Q 17 4Q 17 1Q 18 2Q 18 3Q 18 4Q 18 1Q 19 2Q 19 3Q 19 4Q 19 1Q 20 2Q 20 3Q 20 Net financing revenue (excluding Core OID) Other Revenue (adjusted) (1) Represents a non-GAAP financial measure. See page 32 for details. (2) Represents a non-GAAP financial measure. See page 37 for details. (3) Total Deposits Adjusted Tangible Book Value per Share ($ billions) $134.9 $35.1 $34.7 $131.0 $34.6 $33.7 $33.6 $120.8 $122.3 $119.2 $14.1 $32.8 $116.3 $15.2 $113.3 $31.4 $16.3 $106.2 $17.0 $17.9 $101.4 $98.7 $17.7 $97.4 $17.9 $29.9 $93.3 $90.1 $17.1 $16.8 $28.6 $15.8 $17.0 $28.2 $28.1 $28.1 $15.3 $27.4 $15.2 $120.8 $115.8 $106.1 $103.7 $101.3 $98.6 $95.4 $89.1 $84.6 $81.7 $81.7 $77.9 $74.9 3Q 17 4Q 17 1Q 18 2Q 18 3Q 18 4Q 18 1Q 19 2Q 19 3Q 19 4Q 19 1Q 20 2Q 20 3Q 20 3Q 17 4Q 17 1Q 18 2Q 18 3Q 18 4Q 18 1Q 19 2Q 19 3Q 19 4Q 19 1Q 20 2Q 20 3Q 20 Retail Deposits Brokered / Other (3) Represents a non-GAAP financial measure. See page 33 for details. Note: Brokered includes sweep deposits. Other includes mortgage escrow and other deposits. 3Q 2020 Preliminary Results 7


Recent Trends: Auto Consumer Auto: Decisioned Applications Consumer Auto: Originations Consumer Auto Originations ($B) New Apps: YoY change Used Apps: YoY change $4.0 25% 10% $3.0 (5%) $2.0 (20%) $1.0 (35%) (50%) $- Jan Feb Mar Apr May Jun Jul Aug Sep Jan Feb Mar Apr May Jun Jul Aug Sep Note: Consumer Auto Decisioned Applications and Consumer Auto Originations reflect 2020 monthly data. Lease Average Gain / (Loss) per Vehicle Commercial Auto Balances & Industry Inventories ($ billions, end-of-period balances) 2019 2020 2019 2020 YoY Industry Vehicle Inventories $3.0k $36 $35 $35 $35 $34 $34 $33 $33 $33 $31 $2.0k $30 $30 $29 $24 $22 $22 $21 $21 $1.0k (13%) $0.0k (27%) (33%) ($1.0k) Jan Feb Mar Apr May Jun Jul Aug Sep Jan Feb Mar Apr May Jun Jul Aug Sep Sources: Ally Economics 3Q 2020 Preliminary Results 8 ThousandsRecent Trends: Auto Consumer Auto: Decisioned Applications Consumer Auto: Originations Consumer Auto Originations ($B) New Apps: YoY change Used Apps: YoY change $4.0 25% 10% $3.0 (5%) $2.0 (20%) $1.0 (35%) (50%) $- Jan Feb Mar Apr May Jun Jul Aug Sep Jan Feb Mar Apr May Jun Jul Aug Sep Note: Consumer Auto Decisioned Applications and Consumer Auto Originations reflect 2020 monthly data. Lease Average Gain / (Loss) per Vehicle Commercial Auto Balances & Industry Inventories ($ billions, end-of-period balances) 2019 2020 2019 2020 YoY Industry Vehicle Inventories $3.0k $36 $35 $35 $35 $34 $34 $33 $33 $33 $31 $2.0k $30 $30 $29 $24 $22 $22 $21 $21 $1.0k (13%) $0.0k (27%) (33%) ($1.0k) Jan Feb Mar Apr May Jun Jul Aug Sep Jan Feb Mar Apr May Jun Jul Aug Sep Sources: Ally Economics 3Q 2020 Preliminary Results 8 Thousands


Recent Trends: Deposit & Consumer Offerings Retail Deposit Growth Retail Deposit Customers (# thousands) ($ billions) 2,211 $4.0 $3.0 $2.0 1,992 $1.0 $0.0 Jan Feb Mar Apr May Jun Jul Aug Sep 1Q'20 Apr May Jun Jul Aug Sep Ally Home: Direct-to-Consumer Originations Ally Invest Customer Cash Customer Securities ($ billions) ($ millions) Funded Accounts $500 $15 $11.1 $400 $10 400k $7.9 $300 350k $5 $200 $- $100 Jan Feb Mar Apr May Jun Jul Aug Sep $0 Avg. Trades / Day Jan Feb Mar Apr May Jun Jul Aug Sep 30.4k 38.2k 61.8k 58.3k 58.9k 64.5k 57.7k 58.6k 59.6k Note: Ally Invest Brokerage Customer Cash and Brokerage Customer Securities are gross figures and may not foot to the total due to minimal margin activity. Note: All data reflects 2020 monthly data. 3Q 2020 Preliminary Results 9Recent Trends: Deposit & Consumer Offerings Retail Deposit Growth Retail Deposit Customers (# thousands) ($ billions) 2,211 $4.0 $3.0 $2.0 1,992 $1.0 $0.0 Jan Feb Mar Apr May Jun Jul Aug Sep 1Q'20 Apr May Jun Jul Aug Sep Ally Home: Direct-to-Consumer Originations Ally Invest Customer Cash Customer Securities ($ billions) ($ millions) Funded Accounts $500 $15 $11.1 $400 $10 400k $7.9 $300 350k $5 $200 $- $100 Jan Feb Mar Apr May Jun Jul Aug Sep $0 Avg. Trades / Day Jan Feb Mar Apr May Jun Jul Aug Sep 30.4k 38.2k 61.8k 58.3k 58.9k 64.5k 57.7k 58.6k 59.6k Note: Ally Invest Brokerage Customer Cash and Brokerage Customer Securities are gross figures and may not foot to the total due to minimal margin activity. Note: All data reflects 2020 monthly data. 3Q 2020 Preliminary Results 9


Strong Balance Sheet Foundation Funding Liquidity ($ billions) (1) (2) Deposits Secured Debt FHLB / Other Unsecured Debt Highly Liquid Securities Cash & Equivalents Unused Capacity 8% 7% 9% 13% 15% $44.2 7% 12% 4% 14% 9% 13% $1.4 6% 12% 13% 22% $28.6 $19.3 $21.8 $2.0 $21.1 $3.2 $17.1 82% $2.4 74% $5.1 $3.3 65% 61% $3.5 $4.2 54% $3.8 $23.5 $23.5 $15.5 $12.4 $9.9 3Q 16 3Q 17 3Q 18 3Q 19 3Q 20 3Q 16 3Q 17 3Q 18 3Q 19 3Q 20 (2) Highly liquid securities includes unencumbered UST, Agency debt and Agency MBS. (1) Represents a non-GAAP financial measure. Excludes Core OID balance. See page 37 for details. Common Equity Tier 1 (CET1) Allowance for Loan Losses Reserve - $ Reserve - % ($ billions) ($ billions) 4.5% Reg Min. CET1 > 4.5% Reg. Min. CET1 % 2.87% 10.4% 9.7% 2.03% 9.6% 9.5% 9.4% $14.3 $14.0 $13.4 $13.2 $12.9 3Q’20 $3.3B $3.4 excess 1.08% $7.4 $8.1 0.99% 0.99% 0.99% $2.6 $7.0 $7.1 above 8% $6.8 (Reg Min + SCB) $1.3 $1.2 $1.3 $1.1 $6.4 $6.6 $6.1 $6.2 $6.1 3Q 16 3Q 17 3Q 18 3Q 19 CECL 3Q 20 Day 1 3Q 16 3Q 17 3Q 18 3Q 19 3Q 20 Note: For more details on the final rule to address the impact of CECL on regulatory capital by allowing BHCs and banks, including Ally, to delay and subsequently phase-in its impact, see page 31 for definition. 3Q 2020 Preliminary Results 10Strong Balance Sheet Foundation Funding Liquidity ($ billions) (1) (2) Deposits Secured Debt FHLB / Other Unsecured Debt Highly Liquid Securities Cash & Equivalents Unused Capacity 8% 7% 9% 13% 15% $44.2 7% 12% 4% 14% 9% 13% $1.4 6% 12% 13% 22% $28.6 $19.3 $21.8 $2.0 $21.1 $3.2 $17.1 82% $2.4 74% $5.1 $3.3 65% 61% $3.5 $4.2 54% $3.8 $23.5 $23.5 $15.5 $12.4 $9.9 3Q 16 3Q 17 3Q 18 3Q 19 3Q 20 3Q 16 3Q 17 3Q 18 3Q 19 3Q 20 (2) Highly liquid securities includes unencumbered UST, Agency debt and Agency MBS. (1) Represents a non-GAAP financial measure. Excludes Core OID balance. See page 37 for details. Common Equity Tier 1 (CET1) Allowance for Loan Losses Reserve - $ Reserve - % ($ billions) ($ billions) 4.5% Reg Min. CET1 > 4.5% Reg. Min. CET1 % 2.87% 10.4% 9.7% 2.03% 9.6% 9.5% 9.4% $14.3 $14.0 $13.4 $13.2 $12.9 3Q’20 $3.3B $3.4 excess 1.08% $7.4 $8.1 0.99% 0.99% 0.99% $2.6 $7.0 $7.1 above 8% $6.8 (Reg Min + SCB) $1.3 $1.2 $1.3 $1.1 $6.4 $6.6 $6.1 $6.2 $6.1 3Q 16 3Q 17 3Q 18 3Q 19 CECL 3Q 20 Day 1 3Q 16 3Q 17 3Q 18 3Q 19 3Q 20 Note: For more details on the final rule 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 31 for definition. 3Q 2020 Preliminary Results 10


3Q 2020 Financial Results ($ millions; except per share data) Increase / (Decrease) vs. 3Q 20 2Q 20 3Q 19 2Q 20 3Q 19 (1) $ 1,209 $ 1,063 $ 1,195 $ 146 $ 14 Net financing revenue (excluding Core OID) Core OID (9 ) (9) (7 ) (0) (2) Net financing revenue (as reported) $ 1,200 $ 1,054 $ 1,188 $ 146 $ 12 (2) 471 465 424 5 46 Other revenue (excluding change in fair value of equity securities) (2) 13 90 (1 1) (76) 25 Change in fair value of equity securities Other revenue (as reported) 484 555 413 (71) 71 Provision for credit losses 147 287 263 (140) (116) Noninterest expense 905 985 838 (80) 67 Pre-tax income from continuing operations $ 632 $ 337 $ 500 $ 295 $ 132 Income tax expense 156 95 119 61 37 (Loss) income from discontinued operations, net of tax - (1) - 1 - Net income $ 476 $ 241 $ 381 $ 235 $ 95 3Q 20 2Q 20 3Q 19 2Q 20 3Q 19 GAAP EPS (diluted) $ 1.26 $ 0 .64 $ 0 .97 $ 0.62 $ 0.29 Core OID, net of tax 0.02 0.02 0 .02 0 .00 0.00 Change in fair value of equity securities, net of tax (0.03) (0.19) 0.02 0 .16 (0.05) (3) - 0 .14 - (0 .14) - Repositioning, discontinued ops., and other, net of tax (4) $ 1 .25 $ 0.61 $ 1.01 $ 0.65 $ 0.25 Adjusted EPS (4) Core ROTCE 15.2% 7.6% 12.3% (4) 47.3% 52.5% 45.3% Adjusted Efficiency Ratio Effective Tax Rate 24.8% 28.2% 23.9% (1) Represents a non-GAAP financial measure. Adjusted for Core OID. See page 37 for calculation methodology and details. (2) Represents a non-GAAP financial measure. Adjusted for change in the fair value of equity securities due to the implementation of ASU 2016-01, which requires change in the fair value of equity securities to be recognized in current period net income as compared to periods prior to 1/1/18 in which such adjustments were recognized through other comprehensive income, a component of equity. For Non-GAAP calculation methodology and details see pages 36 and 37. (3) Repositioning and other, net of tax (as applicable) in 2Q 20 includes a $50 million Goodwill impairment at Ally Invest. See page 36 for calculation methodology and details. (4) Represents a non-GAAP financial measure. For Non-GAAP calculation methodology and details see pages 32 , 34 and 35. 3Q 2020 Preliminary Results 113Q 2020 Financial Results ($ millions; except per share data) Increase / (Decrease) vs. 3Q 20 2Q 20 3Q 19 2Q 20 3Q 19 (1) $ 1,209 $ 1,063 $ 1,195 $ 146 $ 14 Net financing revenue (excluding Core OID) Core OID (9 ) (9) (7 ) (0) (2) Net financing revenue (as reported) $ 1,200 $ 1,054 $ 1,188 $ 146 $ 12 (2) 471 465 424 5 46 Other revenue (excluding change in fair value of equity securities) (2) 13 90 (1 1) (76) 25 Change in fair value of equity securities Other revenue (as reported) 484 555 413 (71) 71 Provision for credit losses 147 287 263 (140) (116) Noninterest expense 905 985 838 (80) 67 Pre-tax income from continuing operations $ 632 $ 337 $ 500 $ 295 $ 132 Income tax expense 156 95 119 61 37 (Loss) income from discontinued operations, net of tax - (1) - 1 - Net income $ 476 $ 241 $ 381 $ 235 $ 95 3Q 20 2Q 20 3Q 19 2Q 20 3Q 19 GAAP EPS (diluted) $ 1.26 $ 0 .64 $ 0 .97 $ 0.62 $ 0.29 Core OID, net of tax 0.02 0.02 0 .02 0 .00 0.00 Change in fair value of equity securities, net of tax (0.03) (0.19) 0.02 0 .16 (0.05) (3) - 0 .14 - (0 .14) - Repositioning, discontinued ops., and other, net of tax (4) $ 1 .25 $ 0.61 $ 1.01 $ 0.65 $ 0.25 Adjusted EPS (4) Core ROTCE 15.2% 7.6% 12.3% (4) 47.3% 52.5% 45.3% Adjusted Efficiency Ratio Effective Tax Rate 24.8% 28.2% 23.9% (1) Represents a non-GAAP financial measure. Adjusted for Core OID. See page 37 for calculation methodology and details. (2) Represents a non-GAAP financial measure. Adjusted for change in the fair value of equity securities due to the implementation of ASU 2016-01, which requires change in the fair value of equity securities to be recognized in current period net income as compared to periods prior to 1/1/18 in which such adjustments were recognized through other comprehensive income, a component of equity. For Non-GAAP calculation methodology and details see pages 36 and 37. (3) Repositioning and other, net of tax (as applicable) in 2Q 20 includes a $50 million Goodwill impairment at Ally Invest. See page 36 for calculation methodology and details. (4) Represents a non-GAAP financial measure. For Non-GAAP calculation methodology and details see pages 32 , 34 and 35. 3Q 2020 Preliminary Results 11


Balance Sheet & Net Interest Margin 3Q 20 2Q 20 3Q 19 ($ millions) Average Average Average Balance Yield Balance Yield Balance Yield Retail Auto Loan $ 72,999 6.56% $ 72,262 6.48% $ 73,162 6.66% Retail Auto Loan (excl. hedge impact) 6.83% 6.77% 6.66% Auto Lease (net of depreciation) 9,317 7.89% 9,068 4.10% 8,525 6.24% Commercial Auto 21,265 3.30% 26,106 3.55% 33,273 4.59% Corporate Finance 6,188 5.40% 6,580 5.64% 5,166 7.14% (1) Mortgage 17,096 3.00% 17,422 3.15% 17,723 3.51% (2) 53,248 1.43% 45,092 1.87% 36,467 2.82% Cash, Securities and Other Total Earning Assets $ 1 80,113 4.35% $ 176,530 4.39% $ 1 74,316 5.14% (3)(6) Unsecured Debt $ 12,315 5.74% $ 11,627 6.11% $ 13,164 6.15% Secured Debt 6,154 2.94% 8,122 2.64% 9,860 3.02% (4) Deposits 132,964 1.35% 127,014 1.72% 117,638 2.22% (5) 14,427 2.36% 16,567 2.25% 19,996 2.48% Other Borrowings (3) $ 1 65,860 1.82% $ 163,330 2.13% $ 160,658 2.62% Total Funding Sources (3) 2.67% 2.42% 2.72% NIM (excluding Core OID) NIM (as reported) 2.65% 2.40% 2.70% (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 & Other segment. (2) ‘Other’ includes Ally Lending held-for-investment consumer loans. (3) Represents a non-GAAP financial measure. Excludes Core OID and Core OID balance. See page 37 for calculation methodology and details. (4) Includes retail, brokered (inclusive of sweep deposits) and other deposits (inclusive of mortgage escrow and other deposits). (5) Includes Demand Notes, FHLB borrowings and Repurchase Agreements. (6) Includes trust preferred securities. 3Q 2020 Preliminary Results 12Balance Sheet & Net Interest Margin 3Q 20 2Q 20 3Q 19 ($ millions) Average Average Average Balance Yield Balance Yield Balance Yield Retail Auto Loan $ 72,999 6.56% $ 72,262 6.48% $ 73,162 6.66% Retail Auto Loan (excl. hedge impact) 6.83% 6.77% 6.66% Auto Lease (net of depreciation) 9,317 7.89% 9,068 4.10% 8,525 6.24% Commercial Auto 21,265 3.30% 26,106 3.55% 33,273 4.59% Corporate Finance 6,188 5.40% 6,580 5.64% 5,166 7.14% (1) Mortgage 17,096 3.00% 17,422 3.15% 17,723 3.51% (2) 53,248 1.43% 45,092 1.87% 36,467 2.82% Cash, Securities and Other Total Earning Assets $ 1 80,113 4.35% $ 176,530 4.39% $ 1 74,316 5.14% (3)(6) Unsecured Debt $ 12,315 5.74% $ 11,627 6.11% $ 13,164 6.15% Secured Debt 6,154 2.94% 8,122 2.64% 9,860 3.02% (4) Deposits 132,964 1.35% 127,014 1.72% 117,638 2.22% (5) 14,427 2.36% 16,567 2.25% 19,996 2.48% Other Borrowings (3) $ 1 65,860 1.82% $ 163,330 2.13% $ 160,658 2.62% Total Funding Sources (3) 2.67% 2.42% 2.72% NIM (excluding Core OID) NIM (as reported) 2.65% 2.40% 2.70% (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 & Other segment. (2) ‘Other’ includes Ally Lending held-for-investment consumer loans. (3) Represents a non-GAAP financial measure. Excludes Core OID and Core OID balance. See page 37 for calculation methodology and details. (4) Includes retail, brokered (inclusive of sweep deposits) and other deposits (inclusive of mortgage escrow and other deposits). (5) Includes Demand Notes, FHLB borrowings and Repurchase Agreements. (6) Includes trust preferred securities. 3Q 2020 Preliminary Results 12


Deposits • Deposits of $134.9 billion, up $15.7 billion or 13% YoY Retail Deposit Balances – Retail deposits of $120.8 billion, up $5.0 billion QoQ, rd ($ billions, EoP) highest 3 quarter growth Retail Brokered / Other Customer Retention Rate – Steady customer retention rate of 96% $134.9 $131.0 $122.3 $120.8 $119.2 • 2.2 million retail deposit customers, up 14% YoY $14.1 $15.2 $16.3 $17.0 $17.9 th – 40 consecutive quarter of customer growth 96% 96% 96% 96% 96% – 78 thousand new customers added in 3Q $120.8 $115.8 $103.7 $106.1 $101.3 rd – Ally’s highest 3 quarter growth • Strong adoption among ‘Smart Savings Tools’ with 29% of OSA customers enrolling at time of account 3Q 19 4Q 19 1Q 20 2Q 20 3Q 20 opening Note: Brokered includes sweep deposits. Other includes mortgage escrow and other deposits. See page 30 for Customer Retention Rate definition. Deposit Mix & Retail Portfolio Rate Retail Deposit Customers (thousands) Brokered / Other Retail CD MMA/OSA/Checking Avg. Retail Portfolio Interest Rate 2,211 78 94 71 30 56% 72 53% 49% 49% 49% 100 120 2.14% 2.02% 72 1.88% 57 41 1.64% 59 41 1.26% 52 36% 37% 49 38% 56 36% 28 1,105 34% 41 43 15% 14% 13% 11% 10% 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 2016 2017 2018 2019 2020 3Q 19 4Q 19 1Q 20 2Q 20 3Q 20 Note: Brokered includes sweep deposits. Other includes mortgage escrow and other deposits. 3Q 2020 Preliminary Results 13Deposits • Deposits of $134.9 billion, up $15.7 billion or 13% YoY Retail Deposit Balances – Retail deposits of $120.8 billion, up $5.0 billion QoQ, rd ($ billions, EoP) highest 3 quarter growth Retail Brokered / Other Customer Retention Rate – Steady customer retention rate of 96% $134.9 $131.0 $122.3 $120.8 $119.2 • 2.2 million retail deposit customers, up 14% YoY $14.1 $15.2 $16.3 $17.0 $17.9 th – 40 consecutive quarter of customer growth 96% 96% 96% 96% 96% – 78 thousand new customers added in 3Q $120.8 $115.8 $103.7 $106.1 $101.3 rd – Ally’s highest 3 quarter growth • Strong adoption among ‘Smart Savings Tools’ with 29% of OSA customers enrolling at time of account 3Q 19 4Q 19 1Q 20 2Q 20 3Q 20 opening Note: Brokered includes sweep deposits. Other includes mortgage escrow and other deposits. See page 30 for Customer Retention Rate definition. Deposit Mix & Retail Portfolio Rate Retail Deposit Customers (thousands) Brokered / Other Retail CD MMA/OSA/Checking Avg. Retail Portfolio Interest Rate 2,211 78 94 71 30 56% 72 53% 49% 49% 49% 100 120 2.14% 2.02% 72 1.88% 57 41 1.64% 59 41 1.26% 52 36% 37% 49 38% 56 36% 28 1,105 34% 41 43 15% 14% 13% 11% 10% 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 2016 2017 2018 2019 2020 3Q 19 4Q 19 1Q 20 2Q 20 3Q 20 Note: Brokered includes sweep deposits. Other includes mortgage escrow and other deposits. 3Q 2020 Preliminary Results 13


$0.19 $0.19 $0.19 $0.17 $0.17 $0.17 $0.17 $0.15 $0.15 $0.13 $0.13 $0.12 $0.12 $0.08 $0.08 $0.08 $0.08 $- 374 374 373 374 384 393 400 405 417 426 433 437 444 452 462 467 475 484 Capital Ratios & Shareholder Distributions • Preliminary 3Q 2020 CET1 ratio of 10.4% Capital Ratios and Risk-Weighted Assets – Elevated capital position reflects higher earnings, lower commercial floorplan balances and suspension of share 14.1% 13.8% repurchase program 12.8% 12.8% 12.8% 12.1% 11.9% 11.2% 11.2% 10.9% 10.4% 10.1% 9.6% 9.5% • Ally’s Board of Directors approved a $0.19 per share 9.3% common dividend for 4Q 2020 $146 $145 $146 $137 $138 • CCAR 2020 capital plan resubmission on track for early-November 3Q 19 4Q 19 1Q 20 2Q 20 3Q 20 • Ally is subject to Federal Reserve guidance for banks Risk-Weighted Assets ($B) Total Capital Ratio Tier 1 Ratio CET1 Ratio >$100B in size regarding suspension of share Note: For more details on the final rule to address the impact of CECL on regulatory capital by allowing buybacks & dividend restrictions through 12/31/20 BHCs and banks, including Ally, to delay and subsequently phase-in its impact, see page 31 for definition. Capital Deployment Actions Outstanding Shares (# millions) Dividend Per Share 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 2016 2017 2018 2019 2020 2016 2017 2018 2019 2020 3Q 2020 Preliminary Results 14$0.19 $0.19 $0.19 $0.17 $0.17 $0.17 $0.17 $0.15 $0.15 $0.13 $0.13 $0.12 $0.12 $0.08 $0.08 $0.08 $0.08 $- 374 374 373 374 384 393 400 405 417 426 433 437 444 452 462 467 475 484 Capital Ratios & Shareholder Distributions • Preliminary 3Q 2020 CET1 ratio of 10.4% Capital Ratios and Risk-Weighted Assets – Elevated capital position reflects higher earnings, lower commercial floorplan balances and suspension of share 14.1% 13.8% repurchase program 12.8% 12.8% 12.8% 12.1% 11.9% 11.2% 11.2% 10.9% 10.4% 10.1% 9.6% 9.5% • Ally’s Board of Directors approved a $0.19 per share 9.3% common dividend for 4Q 2020 $146 $145 $146 $137 $138 • CCAR 2020 capital plan resubmission on track for early-November 3Q 19 4Q 19 1Q 20 2Q 20 3Q 20 • Ally is subject to Federal Reserve guidance for banks Risk-Weighted Assets ($B) Total Capital Ratio Tier 1 Ratio CET1 Ratio >$100B in size regarding suspension of share Note: For more details on the final rule to address the impact of CECL on regulatory capital by allowing buybacks & dividend restrictions through 12/31/20 BHCs and banks, including Ally, to delay and subsequently phase-in its impact, see page 31 for definition. Capital Deployment Actions Outstanding Shares (# millions) Dividend Per Share 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 2016 2017 2018 2019 2020 2016 2017 2018 2019 2020 3Q 2020 Preliminary Results 14


Asset Quality: Key Metrics Consolidated Net Charge-Offs Net Charge-Off Activity Allowance as % of Annualized NCOs Annualized NCO Rate ($ millions) Variance 550% 500% Net Charge-Offs 2Q 19 3Q 19 4Q 19 1Q 20 2Q 20 3Q 20 450% Retail Auto $ 172 $ 253 $ 271 $ 262 $ 137 $ 117 0.91% 400% 0.85% 0.84% 0.83% 350% Commercial Auto 1 1 10 2 1 4 0.73% 691% 300% 0.58% Mortgage Finance - - - - - 1 250% 0.56% 471% 200% Corporate Finance 11 15 6 - 38 - 0.41% 150% 305% Ally Lending - - 5 4 4 2 100% 176% 136% (1) 119% 115% 109% 50% Corp/Other (2) (2) (2) (2) (2) (2) 0% Total $ 182 $ 267 $ 290 $ 266 $ 178 $ 122 4Q 18 1Q 19 2Q 19 3Q 19 4Q 19 1Q 20 2Q 20 3Q 20 (1) Corp/Other includes legacy Mortgage HFI portfolio. Note: Above loans are classified as held-for-investment and recorded at gross carrying value. Retail Auto Delinquencies Retail Auto Net Charge-Offs (60+ DPD) 1.00% $500 $480 $460 $440 $420 0.75% $400 0.70% $380 0.66% 0.66% $360 1.49% $340 1.48% 1.44% 0.56% $320 1.38% 0.50% $300 0.48% 0.47% 1.32% 0.47% $280 $540 $260 $495 $240 $480 $478 $271 $220 $262 $259 $405 $253 $200 $234 $345 $350 $341 $180 0.95% $160 $140 0.76% $172 $120 0.00% $100 0.64% $137 $80 4Q 18 1Q 19 2Q 19 3Q 19 4Q 19 1Q 20 2Q 20 3Q 20 $60 $117 $40 $20 $0 Delinquent Contracts ($M) Delinquency Rate 4Q 18 1Q 19 2Q 19 3Q 19 4Q 19 1Q 20 2Q 20 3Q 20 30+ DPD ($M and %) Net Charge-Offs ($M) Annualized NCO Rate 3.55% 2.56% 2.90% 3.32% 3.61% 3.19% 2.20% 2.25% $2,501 $1,833 $2,113 $2,428 $2,616 $2,322 $1,599 $1,658 Note: Includes accruing contracts only. Days-past-due (“DPD”) Note: See page 30 for definition. 3Q 2020 Preliminary Results 15Asset Quality: Key Metrics Consolidated Net Charge-Offs Net Charge-Off Activity Allowance as % of Annualized NCOs Annualized NCO Rate ($ millions) Variance 550% 500% Net Charge-Offs 2Q 19 3Q 19 4Q 19 1Q 20 2Q 20 3Q 20 450% Retail Auto $ 172 $ 253 $ 271 $ 262 $ 137 $ 117 0.91% 400% 0.85% 0.84% 0.83% 350% Commercial Auto 1 1 10 2 1 4 0.73% 691% 300% 0.58% Mortgage Finance - - - - - 1 250% 0.56% 471% 200% Corporate Finance 11 15 6 - 38 - 0.41% 150% 305% Ally Lending - - 5 4 4 2 100% 176% 136% (1) 119% 115% 109% 50% Corp/Other (2) (2) (2) (2) (2) (2) 0% Total $ 182 $ 267 $ 290 $ 266 $ 178 $ 122 4Q 18 1Q 19 2Q 19 3Q 19 4Q 19 1Q 20 2Q 20 3Q 20 (1) Corp/Other includes legacy Mortgage HFI portfolio. Note: Above loans are classified as held-for-investment and recorded at gross carrying value. Retail Auto Delinquencies Retail Auto Net Charge-Offs (60+ DPD) 1.00% $500 $480 $460 $440 $420 0.75% $400 0.70% $380 0.66% 0.66% $360 1.49% $340 1.48% 1.44% 0.56% $320 1.38% 0.50% $300 0.48% 0.47% 1.32% 0.47% $280 $540 $260 $495 $240 $480 $478 $271 $220 $262 $259 $405 $253 $200 $234 $345 $350 $341 $180 0.95% $160 $140 0.76% $172 $120 0.00% $100 0.64% $137 $80 4Q 18 1Q 19 2Q 19 3Q 19 4Q 19 1Q 20 2Q 20 3Q 20 $60 $117 $40 $20 $0 Delinquent Contracts ($M) Delinquency Rate 4Q 18 1Q 19 2Q 19 3Q 19 4Q 19 1Q 20 2Q 20 3Q 20 30+ DPD ($M and %) Net Charge-Offs ($M) Annualized NCO Rate 3.55% 2.56% 2.90% 3.32% 3.61% 3.19% 2.20% 2.25% $2,501 $1,833 $2,113 $2,428 $2,616 $2,322 $1,599 $1,658 Note: Includes accruing contracts only. Days-past-due (“DPD”) Note: See page 30 for definition. 3Q 2020 Preliminary Results 15


Asset Quality: Coverage & Reserves • Expect full-year 2020 retail auto net-charge-offs < 1.2% Consolidated Coverage Ratio Retail Auto Coverage Ratio ($ billions) Reserve - $ Reserve - % ($ billions) Reserve - $ Reserve - % 4.09% 4.06% 3.91% 2.87% 2.85% 2.54% 3.34% 2.03% 0.99% 0.99% $3.0 $3.0 $2.8 $3.4B $3.4B $3.2B 1.50% 1.49% $2.4 $2.6B $1.1 $1.1 $1.3B $1.3B 3Q 19 4Q 19 CECL 1Q 20 2Q 20 3Q 20 3Q 19 4Q 19 CECL 1Q 20 2Q 20 3Q 20 Day 1 Day 1 Consolidated QoQ Reserve Walk ($ millions) 2Q‘20 3Q‘20 Net charge-off’s ∆ in portfolio All other incl. 1 2 3 replenished Size macroeconomic Reserve Reserve $3,379 $3,354 $122 $59 ($34) 3Q 2020 Preliminary Results 16Asset Quality: Coverage & Reserves • Expect full-year 2020 retail auto net-charge-offs < 1.2% Consolidated Coverage Ratio Retail Auto Coverage Ratio ($ billions) Reserve - $ Reserve - % ($ billions) Reserve - $ Reserve - % 4.09% 4.06% 3.91% 2.87% 2.85% 2.54% 3.34% 2.03% 0.99% 0.99% $3.0 $3.0 $2.8 $3.4B $3.4B $3.2B 1.50% 1.49% $2.4 $2.6B $1.1 $1.1 $1.3B $1.3B 3Q 19 4Q 19 CECL 1Q 20 2Q 20 3Q 20 3Q 19 4Q 19 CECL 1Q 20 2Q 20 3Q 20 Day 1 Day 1 Consolidated QoQ Reserve Walk ($ millions) 2Q‘20 3Q‘20 Net charge-off’s ∆ in portfolio All other incl. 1 2 3 replenished Size macroeconomic Reserve Reserve $3,379 $3,354 $122 $59 ($34) 3Q 2020 Preliminary Results 16


Auto: COVID-19 Deferral Program Update • Ally provided COVID-19 assistance to ~30% or ~1.3M consumer auto accounts | ~99% expired as of 9/30/20 • Customer Engagement: Rolled out enhanced digital portal & new communication technology during 3Q • Preparedness: Ongoing utilization of scalable staffing model & resource capabilities Ally Deferral Population Trends Deferral Population % of Consumer Auto Accounts by Status @ 9/30/2020 30% 1.0% Expired: Re-extended 3% 2.4% Expired: 30+ Delinquent 8% or Charged-off 25% 20% 15% (1) Expired: Current or 89% 26.6% Paid-in-full 10% 5% 0% Mar'20 Apr'20 May'20 Jun'20 Jul'20 Aug'20 Sep'20 Note: Consumer Auto deferral program data as of 9/30/2020. (1) Current accounts are < 30 days past due. 3Q 2020 Preliminary Results 17Auto: COVID-19 Deferral Program Update • Ally provided COVID-19 assistance to ~30% or ~1.3M consumer auto accounts | ~99% expired as of 9/30/20 • Customer Engagement: Rolled out enhanced digital portal & new communication technology during 3Q • Preparedness: Ongoing utilization of scalable staffing model & resource capabilities Ally Deferral Population Trends Deferral Population % of Consumer Auto Accounts by Status @ 9/30/2020 30% 1.0% Expired: Re-extended 3% 2.4% Expired: 30+ Delinquent 8% or Charged-off 25% 20% 15% (1) Expired: Current or 89% 26.6% Paid-in-full 10% 5% 0% Mar'20 Apr'20 May'20 Jun'20 Jul'20 Aug'20 Sep'20 Note: Consumer Auto deferral program data as of 9/30/2020. (1) Current accounts are < 30 days past due. 3Q 2020 Preliminary Results 17


Auto Finance • Pre-tax income of $566 million, up $137 million YoY Increase/(Decrease) vs. and up $237 million QoQ Key Financials ($ millions) 3Q 20 2Q 20 3Q 19 Net financing revenue $ 1,102 $ 113 $ 24 – Net financing revenue up YoY and QoQ due to higher gains Total other revenue 61 21 2 on off-lease vehicles and increased retail revenue Total net revenue 1,163 134 26 Provision for credit losses 128 (128) ( 137) (1) Noninterest expense 469 25 26 – Provision expense reflects lower net charge-off activity Pre-tax income $ 566 $ 237 $ 137 U.S. auto earning assets (EOP) $ 1 04,792 $ 1,618 $ (10,085) – Noninterest expense reflects staffing and investments in servicing and collections activities Key Statistics Remarketing gains ($ millions) $ 81 $ 42 $ 70 • Earning assets of $104.8 billion, down $10.1 billion YoY Average gain per vehicle $ 2,437 $ 2,858 $ 1,494 and up $1.6 billion QoQ Off-lease vehicles terminated 28,917 2 ,132 (1,068) (On-balance sheet - # in units) Application Volume (# thousands) 3,240 142 6 – Commercial balances bottomed in July, with modest growth in August and September (1) Noninterest expense includes corporate allocations of $190 million in 3Q 2020, $197 million in 2Q 2020, and $184 million in 3Q 2019. – Consumer balances up modestly YoY and QoQ Retail Auto Trends (2) • Market-leading, adaptable franchise continuing to Portfolio Yield (ex. hedge) Est. Retail Auto Originated Yield Retail Auto NCO % deliver innovative solutions for dealers and customers 7.59% 7.55% 7.53% 7.50% – Application volume and origination flow remained robust, 7.33% 7.25% 7.07% 7.10% 6.95% including strong consumer demand for Used 6.83% 6.77% 6.74% 6.66% 6.66% 6.57% 6.46% 6.34% – All participating dealers who deferred wholesale charges as 6.17% part of the COVID-19 Dealer Assistance Plan are current 1.48% 1.49% 1.44% 1.38% 1.32% 1.32% 0.95% ▪ Remittance payments remain ahead of schedule 0.76% 0.64% 3Q 18 4Q 18 1Q 19 2Q 19 3Q 19 4Q 19 1Q 20 2Q 20 3Q 20 (2) Estimated Retail Auto Originated Yield is a forward-looking non-GAAP financial measure determined by calculating the estimated average annualized yield for loans originated during the period. See page 31 for details. 3Q 2020 Preliminary Results 18Auto Finance • Pre-tax income of $566 million, up $137 million YoY Increase/(Decrease) vs. and up $237 million QoQ Key Financials ($ millions) 3Q 20 2Q 20 3Q 19 Net financing revenue $ 1,102 $ 113 $ 24 – Net financing revenue up YoY and QoQ due to higher gains Total other revenue 61 21 2 on off-lease vehicles and increased retail revenue Total net revenue 1,163 134 26 Provision for credit losses 128 (128) ( 137) (1) Noninterest expense 469 25 26 – Provision expense reflects lower net charge-off activity Pre-tax income $ 566 $ 237 $ 137 U.S. auto earning assets (EOP) $ 1 04,792 $ 1,618 $ (10,085) – Noninterest expense reflects staffing and investments in servicing and collections activities Key Statistics Remarketing gains ($ millions) $ 81 $ 42 $ 70 • Earning assets of $104.8 billion, down $10.1 billion YoY Average gain per vehicle $ 2,437 $ 2,858 $ 1,494 and up $1.6 billion QoQ Off-lease vehicles terminated 28,917 2 ,132 (1,068) (On-balance sheet - # in units) Application Volume (# thousands) 3,240 142 6 – Commercial balances bottomed in July, with modest growth in August and September (1) Noninterest expense includes corporate allocations of $190 million in 3Q 2020, $197 million in 2Q 2020, and $184 million in 3Q 2019. – Consumer balances up modestly YoY and QoQ Retail Auto Trends (2) • Market-leading, adaptable franchise continuing to Portfolio Yield (ex. hedge) Est. Retail Auto Originated Yield Retail Auto NCO % deliver innovative solutions for dealers and customers 7.59% 7.55% 7.53% 7.50% – Application volume and origination flow remained robust, 7.33% 7.25% 7.07% 7.10% 6.95% including strong consumer demand for Used 6.83% 6.77% 6.74% 6.66% 6.66% 6.57% 6.46% 6.34% – All participating dealers who deferred wholesale charges as 6.17% part of the COVID-19 Dealer Assistance Plan are current 1.48% 1.49% 1.44% 1.38% 1.32% 1.32% 0.95% ▪ Remittance payments remain ahead of schedule 0.76% 0.64% 3Q 18 4Q 18 1Q 19 2Q 19 3Q 19 4Q 19 1Q 20 2Q 20 3Q 20 (2) Estimated Retail Auto Originated Yield is a forward-looking non-GAAP financial measure determined by calculating the estimated average annualized yield for loans originated during the period. See page 31 for details. 3Q 2020 Preliminary Results 18


Auto Finance Key Metrics Consumer Originations Consumer Origination Mix ($ billions; % of $ originations) (% of $ originations) 688 691 685 686 685 687 $9.7 $9.3 $9.8 49% 50% $9.1 54% 55% 55% 60% $8.1 $7.2 50% 46% 50% 50% 44% 14% 14% 11% 50% 13% 14% 12% 25% 28% 29% 36% 37% 29% 26% 35% 31% 32% 28% 28% 12% 12% 11% 12% 11% 12% 25% 26% 27% 24% 21% 22% 2Q 19 3Q 19 4Q 19 1Q 20 2Q 20 3Q 20 2Q 19 3Q 19 4Q 19 1Q 20 2Q 20 3Q 20 New Retail Lease Used Nonprime % of Total Retail GM Chrysler Growth Retail Auto - Weighted average FICO Note: See page 30 for definition. Note: See page 30 for definition. Consumer Assets Commercial Assets (Average balance, $ billions) (End of period, $ billions) $82.9 $81.5 $81.5 $81.5 $81.2 $81.1 $34.8 $33.3 $31.9 $30.5 $9.5 $8.4 $8.7 $8.9 $9.1 $9.1 $5.7 $5.8 $26.1 $5.6 $5.3 $21.3 $5.9 $5.9 $73.5 $72.7 $72.9 $72.3 $72.5 $72.4 $29.0 $27.5 $26.3 $25.1 $20.2 $15.4 2Q 19 3Q 19 4Q 19 1Q 20 2Q 20 3Q 20 2Q 19 3Q 19 4Q 19 1Q 20 2Q 20 3Q 20 Retail Lease Dealer Floorplan Other Dealer Loans Note: Held-for-investment (HFI) asset balances reflect the average daily balance for the quarter. 3Q 2020 Preliminary Results 19Auto Finance Key Metrics Consumer Originations Consumer Origination Mix ($ billions; % of $ originations) (% of $ originations) 688 691 685 686 685 687 $9.7 $9.3 $9.8 49% 50% $9.1 54% 55% 55% 60% $8.1 $7.2 50% 46% 50% 50% 44% 14% 14% 11% 50% 13% 14% 12% 25% 28% 29% 36% 37% 29% 26% 35% 31% 32% 28% 28% 12% 12% 11% 12% 11% 12% 25% 26% 27% 24% 21% 22% 2Q 19 3Q 19 4Q 19 1Q 20 2Q 20 3Q 20 2Q 19 3Q 19 4Q 19 1Q 20 2Q 20 3Q 20 New Retail Lease Used Nonprime % of Total Retail GM Chrysler Growth Retail Auto - Weighted average FICO Note: See page 30 for definition. Note: See page 30 for definition. Consumer Assets Commercial Assets (Average balance, $ billions) (End of period, $ billions) $82.9 $81.5 $81.5 $81.5 $81.2 $81.1 $34.8 $33.3 $31.9 $30.5 $9.5 $8.4 $8.7 $8.9 $9.1 $9.1 $5.7 $5.8 $26.1 $5.6 $5.3 $21.3 $5.9 $5.9 $73.5 $72.7 $72.9 $72.3 $72.5 $72.4 $29.0 $27.5 $26.3 $25.1 $20.2 $15.4 2Q 19 3Q 19 4Q 19 1Q 20 2Q 20 3Q 20 2Q 19 3Q 19 4Q 19 1Q 20 2Q 20 3Q 20 Retail Lease Dealer Floorplan Other Dealer Loans Note: Held-for-investment (HFI) asset balances reflect the average daily balance for the quarter. 3Q 2020 Preliminary Results 19


Insurance • Pre-tax income of $78 million, up $22 million YoY Increase/(Decrease) vs. and down $50 million QoQ Key Financials ($ millions) 3Q 20 2Q 20 3Q 19 Premiums, service revenue earned and other $ 279 $ 13 $ (4) – Results positively impacted by realized and unrealized Losses and loss adjustment expenses 85 (57) 11 gains on equity securities YoY, negative impact QoQ (2) Acquisition and underwriting expenses 183 3 10 (1) • Core pre-tax income of $65 million, flat YoY and up Total underwriting income (loss) 11 67 (25) $26 million QoQ (1) Investment income and other (adjusted) 54 (41) 25 (1) – Earned premiums down YoY reflecting lower dealer Core pre-tax income $ 65 $ 26 $ (0) (1) inventories Change in fair value of equity securities 13 (76) 22 Pre-tax income $ 78 $ ( 50) $ 22 – Weather losses higher YoY reflecting active storm season and seasonally lower QoQ Total assets (EOP) $ 8,944 $ 204 $ 466 – Investment income driven by higher realized gains YoY Key Statistics - Insurance Ratios 3Q 20 2Q 20 3Q 19 and lower realized gains QoQ Loss ratio 30.3% 53.4% 26.1% Underwriting expense ratio 65.8% 67.4% 61.4% • Written premiums of $333 million in 3Q 2020 Combined ratio 96.1% 120.9% 87.5% – Reflects YoY COVID-19 impact on lower vehicle (1) Represents a non-GAAP financial measure. Excludes equity fair value adjustments related to ASU inventories, experienced increased retail activity QoQ 2016-01 which requires change in the fair value of equity securities to be recognized in current period net income as compared to periods prior to 1/1/18 in which such adjustments were recognized through other comprehensive income, a component of equity. See page 36 for details. • AM Best affirmed the Financial Strength Rating of A- (2) Noninterest expense includes corporate allocations of $17 million in 3Q 2020, $17 million in 2Q for Ally Insurance 2020, and $14 million in 3Q 2019. Insurance Losses Insurance Written Premiums $142 ($ millions) ($ millions) $357 $127 $335 $333 $323 $317 $314 $28 $305 $298 $278 $25 $267 $85 $74 $74 $61 $59 $25 $86 $69 $24 $27 $24 $23 $26 $17 $15 $6 $6 $31 $30 $33 $33 $32 $28 $34 1Q 19 2Q 19 3Q 19 4Q 19 1Q 20 2Q 20 3Q 20 2Q 18 3Q 18 4Q 18 1Q 19 2Q 19 3Q 19 4Q 19 1Q 20 2Q 20 3Q 20 VSC Losses Weather Losses Other Losses 3Q 2020 Preliminary Results 20Insurance • Pre-tax income of $78 million, up $22 million YoY Increase/(Decrease) vs. and down $50 million QoQ Key Financials ($ millions) 3Q 20 2Q 20 3Q 19 Premiums, service revenue earned and other $ 279 $ 13 $ (4) – Results positively impacted by realized and unrealized Losses and loss adjustment expenses 85 (57) 11 gains on equity securities YoY, negative impact QoQ (2) Acquisition and underwriting expenses 183 3 10 (1) • Core pre-tax income of $65 million, flat YoY and up Total underwriting income (loss) 11 67 (25) $26 million QoQ (1) Investment income and other (adjusted) 54 (41) 25 (1) – Earned premiums down YoY reflecting lower dealer Core pre-tax income $ 65 $ 26 $ (0) (1) inventories Change in fair value of equity securities 13 (76) 22 Pre-tax income $ 78 $ ( 50) $ 22 – Weather losses higher YoY reflecting active storm season and seasonally lower QoQ Total assets (EOP) $ 8,944 $ 204 $ 466 – Investment income driven by higher realized gains YoY Key Statistics - Insurance Ratios 3Q 20 2Q 20 3Q 19 and lower realized gains QoQ Loss ratio 30.3% 53.4% 26.1% Underwriting expense ratio 65.8% 67.4% 61.4% • Written premiums of $333 million in 3Q 2020 Combined ratio 96.1% 120.9% 87.5% – Reflects YoY COVID-19 impact on lower vehicle (1) Represents a non-GAAP financial measure. Excludes equity fair value adjustments related to ASU inventories, experienced increased retail activity QoQ 2016-01 which requires change in the fair value of equity securities to be recognized in current period net income as compared to periods prior to 1/1/18 in which such adjustments were recognized through other comprehensive income, a component of equity. See page 36 for details. • AM Best affirmed the Financial Strength Rating of A- (2) Noninterest expense includes corporate allocations of $17 million in 3Q 2020, $17 million in 2Q for Ally Insurance 2020, and $14 million in 3Q 2019. Insurance Losses Insurance Written Premiums $142 ($ millions) ($ millions) $357 $127 $335 $333 $323 $317 $314 $28 $305 $298 $278 $25 $267 $85 $74 $74 $61 $59 $25 $86 $69 $24 $27 $24 $23 $26 $17 $15 $6 $6 $31 $30 $33 $33 $32 $28 $34 1Q 19 2Q 19 3Q 19 4Q 19 1Q 20 2Q 20 3Q 20 2Q 18 3Q 18 4Q 18 1Q 19 2Q 19 3Q 19 4Q 19 1Q 20 2Q 20 3Q 20 VSC Losses Weather Losses Other Losses 3Q 2020 Preliminary Results 20


Corporate Finance • Pre-tax income of $60 million, up $16 million YoY and Increase/(Decrease) vs. up $28 million QoQ Key Financials ($ millions) 3Q 20 2Q 20 3Q 19 Net financing revenue $ 75 $ (2) $ 15 (1) – Net financing revenue increase YoY reflects higher loan Adjusted total other revenue 8 3 (2) (1) Adjusted total net revenue 83 1 13 balances Provision for credit losses 1 (24) (2) (2) Noninterest expense 23 (3) 1 • $5.9 billion held-for-investment portfolio, up 17% YoY (1) Core pre-tax income $ 59 $ 28 $ 14 (1) Change in fair value of equity securities 1 0 2 – Credit continues to perform well despite current economic Pre-tax income $ 60 $ 28 $ 16 backdrop – risk management activities remain disciplined Total assets (EOP) $ 5,995 $ (211) $ 720 (1) Represents a non-GAAP financial measure. Excludes equity fair value adjustments related to ASU 2016-01 which requires change in the fair value of equity securities to be recognized in current – Growth in commitments reflects focused, steady origination period net income as compared to periods prior to 1/1/18 in which such adjustments were activities – utilization levels remain low recognized through other comprehensive income, a component of equity. See page 36 for details. (2) Noninterest expense includes corporate allocations of $8 million in 3Q 2020, $8 million in 2Q 2020, and $7 million in 3Q 2019. Key Corporate Finance HFI Loans and Unfunded Commitments % % % ~65 47 0 (end of period balances, $ billions) Portfolio Asset Based Portfolio w/ Direct Gas & Oil (3) Lending LIBOR Floor Exposure Metrics Corporate Finance Outstandings Loan Portfolio by Industry - 9/30/2020 Chemicals & Construction Wholesale $3.8 $2.5 $3.5 Paper Printing & Services Metals 1% 3% Other Publishing $2.6 4% 4% 1% $2.3 Other Manufactured Prod. Food And 3% Beverages 3% Machinery. Equip. Manufacturing Elect. $6.5 $6.0 $5.9 $5.7 7% Financial Services $5.0 19% Auto & Transportation 11% Other Retail Trade 3Q 19 4Q 19 1Q 20 2Q 20 3Q 20 1% Health Services 22% Held-for-investment loans Unfunded Commitments Other Services 21% (3) As of 9/30/2020 3Q 2020 Preliminary Results 21Corporate Finance • Pre-tax income of $60 million, up $16 million YoY and Increase/(Decrease) vs. up $28 million QoQ Key Financials ($ millions) 3Q 20 2Q 20 3Q 19 Net financing revenue $ 75 $ (2) $ 15 (1) – Net financing revenue increase YoY reflects higher loan Adjusted total other revenue 8 3 (2) (1) Adjusted total net revenue 83 1 13 balances Provision for credit losses 1 (24) (2) (2) Noninterest expense 23 (3) 1 • $5.9 billion held-for-investment portfolio, up 17% YoY (1) Core pre-tax income $ 59 $ 28 $ 14 (1) Change in fair value of equity securities 1 0 2 – Credit continues to perform well despite current economic Pre-tax income $ 60 $ 28 $ 16 backdrop – risk management activities remain disciplined Total assets (EOP) $ 5,995 $ (211) $ 720 (1) Represents a non-GAAP financial measure. Excludes equity fair value adjustments related to ASU 2016-01 which requires change in the fair value of equity securities to be recognized in current – Growth in commitments reflects focused, steady origination period net income as compared to periods prior to 1/1/18 in which such adjustments were activities – utilization levels remain low recognized through other comprehensive income, a component of equity. See page 36 for details. (2) Noninterest expense includes corporate allocations of $8 million in 3Q 2020, $8 million in 2Q 2020, and $7 million in 3Q 2019. Key Corporate Finance HFI Loans and Unfunded Commitments % % % ~65 47 0 (end of period balances, $ billions) Portfolio Asset Based Portfolio w/ Direct Gas & Oil (3) Lending LIBOR Floor Exposure Metrics Corporate Finance Outstandings Loan Portfolio by Industry - 9/30/2020 Chemicals & Construction Wholesale $3.8 $2.5 $3.5 Paper Printing & Services Metals 1% 3% Other Publishing $2.6 4% 4% 1% $2.3 Other Manufactured Prod. Food And 3% Beverages 3% Machinery. Equip. Manufacturing Elect. $6.5 $6.0 $5.9 $5.7 7% Financial Services $5.0 19% Auto & Transportation 11% Other Retail Trade 3Q 19 4Q 19 1Q 20 2Q 20 3Q 20 1% Health Services 22% Held-for-investment loans Unfunded Commitments Other Services 21% (3) As of 9/30/2020 3Q 2020 Preliminary Results 21


Mortgage Finance • Pre-tax income of $26 million, up $15 million YoY Increase/(Decrease) vs. and up $18 million QoQ Key Financials ($ millions) 3Q 20 2Q 20 3Q 19 Net financing revenue $ 30 $ - $ (9) – Net financing revenue declined YoY reflecting ongoing Total other revenue 36 17 26 elevated prepayment activity Total net revenue $ 66 $ 17 $ 17 – Other revenue up YoY and QoQ reflecting strong Provision for credit losses - (3) - (1) gain-on-sale activity Noninterest expense 40 2 2 Pre-tax income $ 26 $ 18 $ 15 • Direct-to-consumer originations of $1.3 billion in 3Q Total assets (EOP) $ 15,503 $ (1,166) $ (1,080) – demonstrates continued momentum Mortgage Finance HFI Portfolio 3Q 20 2Q 20 3Q 19 – 54% of 3Q originations from Ally customers Net Carry Value ($ billions) $ 15.1 $ 16.4 $ 15.8 (2) – 63% of originations from refinance activity 60.3% 60.4% 60.7% Wtd. Avg. LTV/CLTV Refreshed FICO 776 774 774 • COVID-19 deferral program (1) Noninterest expense includes corporate allocations of $19 million in 3Q 2020, $20 million in 2Q – 1.9% of HFI portfolio remains in COVID-19 forbearance 2020, and $20 million in 3Q 2019. (3) (2) 1st lien only. Updated home values derived using a combination of appraisals, Broker price opinion program (BPOs), Automated Valuation Models (AVMs) and Metropolitan Statistical Area (MSA) level house price indices. Mortgage Finance Direct-to-Consumer (DTC) Originations Mortgage Finance Held-for-Investment Assets ($ billions) ($ billions) $1.3 $1.2 Bulk Purchase Activity $1.0 $0.8 $0.7 $0.5 $1.9 $0.7 $0.8 $0.7 55% 27% 66% 28% $16.4 $16.2 41% $15.8 $15.9 $15.2 73% 72% 45% 59% 34% 3Q 19 4Q 19 1Q 20 2Q 20 3Q 20 HFI HFS 3Q 19 4Q 19 1Q 20 2Q 20 3Q 20 (3) As of 9/30/2020 for the Mortgage Finance HFI portfolio. 3Q 2020 Preliminary Results 22Mortgage Finance • Pre-tax income of $26 million, up $15 million YoY Increase/(Decrease) vs. and up $18 million QoQ Key Financials ($ millions) 3Q 20 2Q 20 3Q 19 Net financing revenue $ 30 $ - $ (9) – Net financing revenue declined YoY reflecting ongoing Total other revenue 36 17 26 elevated prepayment activity Total net revenue $ 66 $ 17 $ 17 – Other revenue up YoY and QoQ reflecting strong Provision for credit losses - (3) - (1) gain-on-sale activity Noninterest expense 40 2 2 Pre-tax income $ 26 $ 18 $ 15 • Direct-to-consumer originations of $1.3 billion in 3Q Total assets (EOP) $ 15,503 $ (1,166) $ (1,080) – demonstrates continued momentum Mortgage Finance HFI Portfolio 3Q 20 2Q 20 3Q 19 – 54% of 3Q originations from Ally customers Net Carry Value ($ billions) $ 15.1 $ 16.4 $ 15.8 (2) – 63% of originations from refinance activity 60.3% 60.4% 60.7% Wtd. Avg. LTV/CLTV Refreshed FICO 776 774 774 • COVID-19 deferral program (1) Noninterest expense includes corporate allocations of $19 million in 3Q 2020, $20 million in 2Q – 1.9% of HFI portfolio remains in COVID-19 forbearance 2020, and $20 million in 3Q 2019. (3) (2) 1st lien only. Updated home values derived using a combination of appraisals, Broker price opinion program (BPOs), Automated Valuation Models (AVMs) and Metropolitan Statistical Area (MSA) level house price indices. Mortgage Finance Direct-to-Consumer (DTC) Originations Mortgage Finance Held-for-Investment Assets ($ billions) ($ billions) $1.3 $1.2 Bulk Purchase Activity $1.0 $0.8 $0.7 $0.5 $1.9 $0.7 $0.8 $0.7 55% 27% 66% 28% $16.4 $16.2 41% $15.8 $15.9 $15.2 73% 72% 45% 59% 34% 3Q 19 4Q 19 1Q 20 2Q 20 3Q 20 HFI HFS 3Q 19 4Q 19 1Q 20 2Q 20 3Q 20 (3) As of 9/30/2020 for the Mortgage Finance HFI portfolio. 3Q 2020 Preliminary Results 22


Strategic Priorities Relentless Customer Focus and ‘Do It Right’ Culture Leading, adaptable Auto & Insurance businesses Lending and digitally-based Ally Bank platform Consumer & Commercial Ongoing customer growth & relationship Savings & deepening across scalable platforms Insurance Checking Accelerated growth in expanded product offerings Servicing Efficient & disciplined risk management and & Customer Investing capital deployment Solutions Focus on long-term execution & sustainable Payments returns across all products Steady execution in current environment | Delivering on long-term strategic objectives 3Q 2020 Preliminary Results 23Strategic Priorities Relentless Customer Focus and ‘Do It Right’ Culture Leading, adaptable Auto & Insurance businesses Lending and digitally-based Ally Bank platform Consumer & Commercial Ongoing customer growth & relationship Savings & deepening across scalable platforms Insurance Checking Accelerated growth in expanded product offerings Servicing Efficient & disciplined risk management and & Customer Investing capital deployment Solutions Focus on long-term execution & sustainable Payments returns across all products Steady execution in current environment | Delivering on long-term strategic objectives 3Q 2020 Preliminary Results 23


Supplemental 3Q 2020 Preliminary Results 24Supplemental 3Q 2020 Preliminary Results 24


Supplemental Results by Segment Pre-Tax Income ($ millions) 3Q 20 2Q 20 3Q 19 Automotive Finance $ 566 $ 329 $ 429 Insurance 78 128 56 Dealer Financial Services $ 644 $ 457 $ 485 Corporate Finance 60 32 44 Mortgage Finance 26 8 11 Corporate and Other (9 8) (160) (4 0) Pre-tax income from continuing operations $ 632 $ 337 $ 500 (1) 9 9 7 Core OID (2) (1 3) (90) 11 Change in fair value of equity securities (3) - 50 - Repositioning and other (4) $ 628 $ 306 $ 519 Core pre-tax income (1) Core OID for all periods shown is applied to the pre-tax income of the Corporate and Other segment. (2) Change in fair value of equity securities impacts the Insurance and Corporate Finance segments. Reflects equity fair value adjustments related to ASU 2016-01 which requires change in the fair value of equity securities to be recognized in current period net income as compared to periods prior to 1/1/18 in which such adjustments were recognized through other comprehensive income, a component of equity. See pages 36 for details. (3) Repositioning and other include a $50 million Goodwill impairment at Ally Invest in 2Q 20. (4) Core pre-tax income is a non-GAAP financial measure that adjusts pre-tax income from continuing operations for Core OID, equity fair value adjustments related to ASU 2016-01, and, repositioning and other which are primarily related to the extinguishment of high cost legacy debt, strategic activities and significant other one- time items. Management believes core pre-tax income can help the reader better understand the operating performance of the core businesses and their ability to generate earnings. See page 36 for calculation methodology and details. 3Q 2020 Preliminary Results 25Supplemental Results by Segment Pre-Tax Income ($ millions) 3Q 20 2Q 20 3Q 19 Automotive Finance $ 566 $ 329 $ 429 Insurance 78 128 56 Dealer Financial Services $ 644 $ 457 $ 485 Corporate Finance 60 32 44 Mortgage Finance 26 8 11 Corporate and Other (9 8) (160) (4 0) Pre-tax income from continuing operations $ 632 $ 337 $ 500 (1) 9 9 7 Core OID (2) (1 3) (90) 11 Change in fair value of equity securities (3) - 50 - Repositioning and other (4) $ 628 $ 306 $ 519 Core pre-tax income (1) Core OID for all periods shown is applied to the pre-tax income of the Corporate and Other segment. (2) Change in fair value of equity securities impacts the Insurance and Corporate Finance segments. Reflects equity fair value adjustments related to ASU 2016-01 which requires change in the fair value of equity securities to be recognized in current period net income as compared to periods prior to 1/1/18 in which such adjustments were recognized through other comprehensive income, a component of equity. See pages 36 for details. (3) Repositioning and other include a $50 million Goodwill impairment at Ally Invest in 2Q 20. (4) Core pre-tax income is a non-GAAP financial measure that adjusts pre-tax income from continuing operations for Core OID, equity fair value adjustments related to ASU 2016-01, and, repositioning and other which are primarily related to the extinguishment of high cost legacy debt, strategic activities and significant other one- time items. 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. See page 36 for calculation methodology and details. 3Q 2020 Preliminary Results 25


Supplemental Funding • Ally’s deposit portfolio growth has consistently Ally Financial Ratings Details reduced reliance on wholesale funding markets LT Debt ST Debt Outlook Date – In Sep-20, Ally paid down $2.5 billion of fixed rate FHLB Fitch BBB- F3 Negative 8/12/2020 borrowings at a weighted average coupon of ~2.8% Moody's Ba1 Not Prime Stable 5/12/2020 • Wide array of funding sources, expect to maintain S&P BBB- A-3 Negative 5/4/2020 access to wholesale funding markets DBRS BBB (Low) R-3 Negative 4/21/2020 Note: Ratings and Outlook as of 9/30/2020. Our borrowing costs and access to the capital markets could be negatively impacted if our credit ratings are downgraded or otherwise fail to meet investor – During September 2020, Ally issued $750 million of expectations or demands. 1.45% senior unsecured notes due October 2, 2023 (1) Unsecured Long-Term Debt Maturities Wholesale Funding Issuance Term ABS and Term Unsecured Issuance Principal Amount (2) ($ billions) AART (Ally Bank - Retail Auto) AMOT (Ally Bank - Floorplan) Maturity Date Coupon Outstanding AFIN (AFI-Retail Auto) AART-SN (Ally Bank - Lease) ($ billions) $7.9 $7.3 $0.8 9/15/2020 7.50 $0.46 $6.5 $1.8 $0.5 $4.9 4/15/2021 4.25 $0.60 $1.4 $4.0 $2.6 $3.5 $2.5 2022 4.32 $1.05 $1.3 $4.6 $3.5 (3) $3.0 2023+ 5.47 $7.79 $2.4 $1.8 (1) Excludes retail notes, demand notes and trust preferred securities; as of 9/30/2020. 2015 2016 2017 2018 2019 2020 (2) Reflects notional value of outstanding bond. Excludes total GAAP OID and capitalized transaction costs. (3) Weighted average coupon based on notional value and corresponding coupon for all unsecured bonds Term Unsecured Issuance as of January 1st of the respective year. Does not reflect weighted average interest expense for the $5.4 $0.9 $0.0 $0.0 $0.8 $2.3 respective year. 2023+ excludes ~$2.6 billion Trust Preferred securities (excluding OID/issuance costs). Note: Term ABS shown includes funding amounts (notes sold) at new issue, and does not include private offerings sold at a later date. 3Q 2020 Preliminary Results 26Supplemental Funding • Ally’s deposit portfolio growth has consistently Ally Financial Ratings Details reduced reliance on wholesale funding markets LT Debt ST Debt Outlook Date – In Sep-20, Ally paid down $2.5 billion of fixed rate FHLB Fitch BBB- F3 Negative 8/12/2020 borrowings at a weighted average coupon of ~2.8% Moody's Ba1 Not Prime Stable 5/12/2020 • Wide array of funding sources, expect to maintain S&P BBB- A-3 Negative 5/4/2020 access to wholesale funding markets DBRS BBB (Low) R-3 Negative 4/21/2020 Note: Ratings and Outlook as of 9/30/2020. Our borrowing costs and access to the capital markets could be negatively impacted if our credit ratings are downgraded or otherwise fail to meet investor – During September 2020, Ally issued $750 million of expectations or demands. 1.45% senior unsecured notes due October 2, 2023 (1) Unsecured Long-Term Debt Maturities Wholesale Funding Issuance Term ABS and Term Unsecured Issuance Principal Amount (2) ($ billions) AART (Ally Bank - Retail Auto) AMOT (Ally Bank - Floorplan) Maturity Date Coupon Outstanding AFIN (AFI-Retail Auto) AART-SN (Ally Bank - Lease) ($ billions) $7.9 $7.3 $0.8 9/15/2020 7.50 $0.46 $6.5 $1.8 $0.5 $4.9 4/15/2021 4.25 $0.60 $1.4 $4.0 $2.6 $3.5 $2.5 2022 4.32 $1.05 $1.3 $4.6 $3.5 (3) $3.0 2023+ 5.47 $7.79 $2.4 $1.8 (1) Excludes retail notes, demand notes and trust preferred securities; as of 9/30/2020. 2015 2016 2017 2018 2019 2020 (2) Reflects notional value of outstanding bond. Excludes total GAAP OID and capitalized transaction costs. (3) Weighted average coupon based on notional value and corresponding coupon for all unsecured bonds Term Unsecured Issuance as of January 1st of the respective year. Does not reflect weighted average interest expense for the $5.4 $0.9 $0.0 $0.0 $0.8 $2.3 respective year. 2023+ excludes ~$2.6 billion Trust Preferred securities (excluding OID/issuance costs). Note: Term ABS shown includes funding amounts (notes sold) at new issue, and does not include private offerings sold at a later date. 3Q 2020 Preliminary Results 26


Supplemental Corporate and Other • Corporate and Other includes impact of Increase/(Decrease) vs. Key Financials ($ millions) 3Q 20 2Q 20 3Q 19 centralized asset & liability management, Net financing (loss) $ (15) $ 39 $ (12) corporate allocation activities, legacy mortgage Total other revenue 40 (12) (6) portfolio, Ally Invest and Ally Lending activities Total net revenue $ 25 $ 27 $ ( 18) Provision for credit losses 18 15 23 • Pre-tax loss of $98 million, down $58 million YoY Noninterest expense 105 (50) 17 and up $62 million QoQ Pre-tax (loss) $ ( 98) $ 62 $ (58) (1) Core OID 9 0 2 (2) – Net financing loss down YoY due to lower benchmark Repositioning and other - (50) - - - (2) rates and higher cash balances Core pre-tax (loss) $ (89) $ 12 $ (56) Cash & securities $ 45,775 $ 1,364 $ 15,330 – Total other revenue down QoQ and YoY driven by loss (3) Held-for-investment loans, net 1,552 (65) 11 on early paydown of certain FHLB borrowings Other 4,135 ( 267) 68 Total assets $ 51,462 $ 1,032 $ 15,409 – Provision expense increased YoY driven by higher originations at Ally Lending (1) Represents a non-GAAP financial measure. See page 37 for details. (2) Represents a non-GAAP financial measure. See page 36 for calculation methodology and details. (3) HFI legacy mortgage portfolio and HFI Ally Lending portfolio – Noninterest expense up YoY primarily driven by the addition of Ally Lending in 4Q’19, down QoQ due to Goodwill impairment at Ally Invest in 3Q’20 Ally Invest Details (brokerage) 3Q 20 2Q 20 3Q 19 Net Funded Accounts (thousands) 399.8 388.3 346.0 • Total assets of $51.5 billion, up $15.4 billion YoY, Average Customer Trades Per Day (thousands) 58.7 60.7 17.7 driven by elevated cash balances Total Customer Cash Balances ($ millions) $ 1,882 $ 1,891 $ 1,272 Total Net Customer Assets ($ millions) $ 11,061 $ 9,603 $ 7,151 • COVID-19 Relief Program includes 120-day payment deferral for customers at Ally Lending (4) – <1% of total accounts still active (4) As of 9/30/2020. 3Q 2020 Preliminary Results 27Supplemental Corporate and Other • Corporate and Other includes impact of Increase/(Decrease) vs. Key Financials ($ millions) 3Q 20 2Q 20 3Q 19 centralized asset & liability management, Net financing (loss) $ (15) $ 39 $ (12) corporate allocation activities, legacy mortgage Total other revenue 40 (12) (6) portfolio, Ally Invest and Ally Lending activities Total net revenue $ 25 $ 27 $ ( 18) Provision for credit losses 18 15 23 • Pre-tax loss of $98 million, down $58 million YoY Noninterest expense 105 (50) 17 and up $62 million QoQ Pre-tax (loss) $ ( 98) $ 62 $ (58) (1) Core OID 9 0 2 (2) – Net financing loss down YoY due to lower benchmark Repositioning and other - (50) - - - (2) rates and higher cash balances Core pre-tax (loss) $ (89) $ 12 $ (56) Cash & securities $ 45,775 $ 1,364 $ 15,330 – Total other revenue down QoQ and YoY driven by loss (3) Held-for-investment loans, net 1,552 (65) 11 on early paydown of certain FHLB borrowings Other 4,135 ( 267) 68 Total assets $ 51,462 $ 1,032 $ 15,409 – Provision expense increased YoY driven by higher originations at Ally Lending (1) Represents a non-GAAP financial measure. See page 37 for details. (2) Represents a non-GAAP financial measure. See page 36 for calculation methodology and details. (3) HFI legacy mortgage portfolio and HFI Ally Lending portfolio – Noninterest expense up YoY primarily driven by the addition of Ally Lending in 4Q’19, down QoQ due to Goodwill impairment at Ally Invest in 3Q’20 Ally Invest Details (brokerage) 3Q 20 2Q 20 3Q 19 Net Funded Accounts (thousands) 399.8 388.3 346.0 • Total assets of $51.5 billion, up $15.4 billion YoY, Average Customer Trades Per Day (thousands) 58.7 60.7 17.7 driven by elevated cash balances Total Customer Cash Balances ($ millions) $ 1,882 $ 1,891 $ 1,272 Total Net Customer Assets ($ millions) $ 11,061 $ 9,603 $ 7,151 • COVID-19 Relief Program includes 120-day payment deferral for customers at Ally Lending (4) – <1% of total accounts still active (4) As of 9/30/2020. 3Q 2020 Preliminary Results 27


Supplemental Interest Rate Sensitivity (1) Net Financing Revenue Impacts : Baseline vs. Forward Curve 3Q 20 2Q 20 (2) (2) ($ millions) Gradual Instantaneous Gradual Instantaneous (3) -25 bps $ (1) $ ( 36) n/a n/a +100 bps $ 88 $ 181 $ 66 $ 98 Stable rate environment n/m $ 3 n/m $ (3) (1) Net financing revenue impacts reflect a rolling 12-month view. See page 30 for additional details. (2) Gradual changes in interest rates are recognized over 12 months. (3) The -100bps shock has been replaced with a -25bps shock, given low interest rate environment. 3Q 2020 Preliminary Results 28Supplemental Interest Rate Sensitivity (1) Net Financing Revenue Impacts : Baseline vs. Forward Curve 3Q 20 2Q 20 (2) (2) ($ millions) Gradual Instantaneous Gradual Instantaneous (3) -25 bps $ (1) $ ( 36) n/a n/a +100 bps $ 88 $ 181 $ 66 $ 98 Stable rate environment n/m $ 3 n/m $ (3) (1) Net financing revenue impacts reflect a rolling 12-month view. See page 30 for additional details. (2) Gradual changes in interest rates are recognized over 12 months. (3) The -100bps shock has been replaced with a -25bps shock, given low interest rate environment. 3Q 2020 Preliminary Results 28


Supplemental Deferred Tax Asset (1) (1) Deferred Tax Asset / (Liability) 3Q 20 2Q 20 Gross DTA/(DTL) Valuation Net DTA/(DTL) Net DTA/(DTL) ($ millions) Balance Allowance Balance Balance Net Operating Loss (Federal) $ 7 $ - $ 7 $ 7 Tax Credit Carryforwards 1,835 (750) 1,085 956 State/Local Tax Carryforwards 149 ( 107) 42 36 (2) Other Deferred Tax Liabilities, net ( 1,057) - (1,057) (862) Net Deferred Tax Asset / (Liability) $ 934 $ (857) $ 77 $ 137 (1) GAAP does not prescribe a method for calculating individual elements of deferred taxes for interim periods; therefore, these balances are estimates. (2) Primarily book / tax timing differences, including loan loss reserves impact of ~$0.3 billion related to CECL implementation. Deferred Tax Asset / (Liability) Utilization ($ millions) Net GAAP DTA / (DTL) Balance Disallowed DTA $215 $137 $77 $48 $39 $25 $20 $18 $17 -$9 3Q 19 4Q 19 1Q 20 2Q 20 3Q 20 3Q 2020 Preliminary Results 29Supplemental Deferred Tax Asset (1) (1) Deferred Tax Asset / (Liability) 3Q 20 2Q 20 Gross DTA/(DTL) Valuation Net DTA/(DTL) Net DTA/(DTL) ($ millions) Balance Allowance Balance Balance Net Operating Loss (Federal) $ 7 $ - $ 7 $ 7 Tax Credit Carryforwards 1,835 (750) 1,085 956 State/Local Tax Carryforwards 149 ( 107) 42 36 (2) Other Deferred Tax Liabilities, net ( 1,057) - (1,057) (862) Net Deferred Tax Asset / (Liability) $ 934 $ (857) $ 77 $ 137 (1) GAAP does not prescribe a method for calculating individual elements of deferred taxes for interim periods; therefore, these balances are estimates. (2) Primarily book / tax timing differences, including loan loss reserves impact of ~$0.3 billion related to CECL implementation. Deferred Tax Asset / (Liability) Utilization ($ millions) Net GAAP DTA / (DTL) Balance Disallowed DTA $215 $137 $77 $48 $39 $25 $20 $18 $17 -$9 3Q 19 4Q 19 1Q 20 2Q 20 3Q 20 3Q 2020 Preliminary Results 29


Supplemental Notes on Non-GAAP and Other Financial Measures The following are non-GAAP financial measures which Ally believes are important to the reader of the Consolidated Financial Statements, but which are supplemental to, and not a substitute for, GAAP measures: Adjusted Earnings per Share (Adjusted EPS), Core pre-tax income, Core net income attributable to common shareholders, Core return on tangible common equity (Core ROTCE), Adjusted efficiency ratio, Adjusted total net revenue, Adjusted other revenue, Core original issue discount (Core OID) amortization expense and Core outstanding original issue discount balance (Core OID balance), Net financing revenue (excluding Core OID), and Adjusted tangible book value per share (Adjusted TBVPS). These measures are used by management and we believe are useful to investors in assessing the company’s operating performance and capital. Refer to the Definitions of Non-GAAP Financial Measures and Other Key Terms, and Reconciliation to GAAP later in this document. 1) Core pre-tax income is a non-GAAP financial measure that adjusts pre-tax income from continuing operations by excluding (1) Core OID, and (2) equity fair value adjustments related to ASU 2016-01 which requires change in the fair value of equity securities to be recognized in current period net income as compared to periods prior to 1/1/18 in which such adjustments were recognized through other comprehensive income, a component of equity, 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. 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. See page 36 for calculation methodology and details. 2) Core net income attributable to common shareholders is a non-GAAP financial measure that serves as the numerator in the calculations of Adjusted EPS and Core ROTCE and that, like those measures, is believed by management to help the reader better understand the operating performance of the core businesses and their ability to generate earnings. 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. See page 32 for calculation methodology and details. 3) 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. See page 37 for calculation methodology and details. 4) 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. See page 37 for calculation methodology and details 5) Accelerated issuance expense (Accelerated OID) is the recognition of issuance expenses related to calls of redeemable debt. 6) Interest rate risk modeling – We prepare our forward-looking baseline forecasts of net financing revenue taking into consideration anticipated future business growth, asset/liability positioning, and interest rates based on the implied forward curve. The analysis is highly dependent upon a variety of assumptions including the repricing characteristics of retail deposits with both contractual and non-contractual maturities. We continually monitor industry and competitive repricing activity along with other market factors when contemplating deposit pricing actions. Please see the 10-Q for more details. 7) Net charge-off ratios are calculated as annualized net charge-offs divided by average outstanding finance receivables and loans excluding loans measured at fair value and loans held-for-sale. 8) 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. See page 33 for more details. 9) U.S. consumer auto originations ▪ New Retail – standard and subvented rate new vehicle loans ▪ Lease – new vehicle lease originations ▪ Used – used vehicle loans ▪ Growth – total originations from non-GM/Chrysler dealers and direct-to-consumer loans ▪ Nonprime – originations with a FICO® score of less than 620 10) Customer retention rate is the annualized 3-month rolling average of 1 minus the monthly attrition rate; excludes non-recurring escheatment. 3Q 2020 Preliminary Results 30Supplemental Notes on Non-GAAP and Other Financial Measures The following are non-GAAP financial measures which Ally believes are important to the reader of the Consolidated Financial Statements, but which are supplemental to, and not a substitute for, GAAP measures: Adjusted Earnings per Share (Adjusted EPS), Core pre-tax income, Core net income attributable to common shareholders, Core return on tangible common equity (Core ROTCE), Adjusted efficiency ratio, Adjusted total net revenue, Adjusted other revenue, Core original issue discount (Core OID) amortization expense and Core outstanding original issue discount balance (Core OID balance), Net financing revenue (excluding Core OID), and Adjusted tangible book value per share (Adjusted TBVPS). These measures are used by management and we believe are useful to investors in assessing the company’s operating performance and capital. Refer to the Definitions of Non-GAAP Financial Measures and Other Key Terms, and Reconciliation to GAAP later in this document. 1) Core pre-tax income is a non-GAAP financial measure that adjusts pre-tax income from continuing operations by excluding (1) Core OID, and (2) equity fair value adjustments related to ASU 2016-01 which requires change in the fair value of equity securities to be recognized in current period net income as compared to periods prior to 1/1/18 in which such adjustments were recognized through other comprehensive income, a component of equity, 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. 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. See page 36 for calculation methodology and details. 2) Core net income attributable to common shareholders is a non-GAAP financial measure that serves as the numerator in the calculations of Adjusted EPS and Core ROTCE and that, like those measures, is believed by management to help the reader better understand the operating performance of the core businesses and their ability to generate earnings. 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. See page 32 for calculation methodology and details. 3) 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. See page 37 for calculation methodology and details. 4) 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. See page 37 for calculation methodology and details 5) Accelerated issuance expense (Accelerated OID) is the recognition of issuance expenses related to calls of redeemable debt. 6) Interest rate risk modeling – We prepare our forward-looking baseline forecasts of net financing revenue taking into consideration anticipated future business growth, asset/liability positioning, and interest rates based on the implied forward curve. The analysis is highly dependent upon a variety of assumptions including the repricing characteristics of retail deposits with both contractual and non-contractual maturities. We continually monitor industry and competitive repricing activity along with other market factors when contemplating deposit pricing actions. Please see the 10-Q for more details. 7) Net charge-off ratios are calculated as annualized net charge-offs divided by average outstanding finance receivables and loans excluding loans measured at fair value and loans held-for-sale. 8) 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. See page 33 for more details. 9) U.S. consumer auto originations ▪ New Retail – standard and subvented rate new vehicle loans ▪ Lease – new vehicle lease originations ▪ Used – used vehicle loans ▪ Growth – total originations from non-GM/Chrysler dealers and direct-to-consumer loans ▪ Nonprime – originations with a FICO® score of less than 620 10) Customer retention rate is the annualized 3-month rolling average of 1 minus the monthly attrition rate; excludes non-recurring escheatment. 3Q 2020 Preliminary Results 30


Supplemental Notes on Non-GAAP and Other Financial Measures 11) Estimated Retail Auto Originated Yield is a forward-looking non-GAAP financial measure determined by calculating the estimated average annualized yield for loans originated during the period. At this time there currently is no comparable GAAP financial measure for Estimated Retail Auto Originated Yield and therefore this forecasted estimate of yield at the time of origination cannot be quantitatively reconciled to comparable GAAP information. 12) 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 extends through December 31, 2021. Beginning on January 1, 2022, we will be 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 plan to phase in the regulatory capital impacts of CECL based on this five-year transition period. 3Q 2020 Preliminary Results 31Supplemental Notes on Non-GAAP and Other Financial Measures 11) Estimated Retail Auto Originated Yield is a forward-looking non-GAAP financial measure determined by calculating the estimated average annualized yield for loans originated during the period. At this time there currently is no comparable GAAP financial measure for Estimated Retail Auto Originated Yield and therefore this forecasted estimate of yield at the time of origination cannot be quantitatively reconciled to comparable GAAP information. 12) 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 extends through December 31, 2021. Beginning on January 1, 2022, we will be 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 plan to phase in the regulatory capital impacts of CECL based on this five-year transition period. 3Q 2020 Preliminary Results 31


Supplemental GAAP to Core Results: Adjusted EPS - Quarterly Adjusted Earnings per Share ( Adjusted EPS ) QUARTERLY TREND 3Q 20 2Q 20 1Q 20 4Q 19 3Q 19 2Q 19 1Q 19 4Q 18 3Q 18 2Q 18 1Q 18 4Q 17 3Q 17 Numerator ($ millions) GAAP net income (loss) attributable to common shareholders $ 476 $ 241 $ (319) $ 378 $ 381 $ 582 $ 374 $ 290 $ 374 $ 349 $ 250 $ 181 $ 282 Discontinued operations, net of tax - 1 - 3 - 2 1 (1) - (1) 2 (2) (2) Core OID 9 9 8 8 7 7 7 23 22 21 20 19 18 Repositioning items - 50 - - - - - - - - - - - Change in the fair value of equity securities (13) (90) 185 (29) 11 (2) (70) 95 (6) (8) 40 - - Tax on Core OID, repositioning items, & change in the fair value of equity securities 1 17 (41) 4 (4) (1) 13 (25) (3) (3) (13) (7) (6) (assumes 21% tax rate starting in 1Q18, 35% prior) Significant discrete tax items - - - - - (201) - - - - - 119 - Core net income (loss) attributable to common shareholders [a] $ 473 $ 228 $ (166) $ 364 $ 396 $ 387 $ 325 $ 382 $ 386 $ 358 $ 300 $ 310 $ 292 Denominator Weighted-average common shares outstanding - (Diluted, thousands) [b] 377,011 375,762 375,723 383,391 392,604 399,916 405,959 414,750 424,784 432,554 438,931 444,985 451,078 0 Metric GAAP EPS $ 1.26 $ 0.64 $ (0.85) $ 0.99 $ 0.97 $ 1.46 $ 0.92 $ 0.70 $ 0.88 $ 0.81 $ 0.57 $ 0.41 $ 0.63 Discontinued operations, net of tax - 0 .00 - 0.01 - 0 .01 0.00 ( 0.00) - ( 0.00) 0 .00 (0.00) (0.00) Core OID 0 .02 0.02 0.02 0 .02 0.02 0.02 0 .02 0.06 0.05 0.05 0.05 0.04 0.04 Repositioning items - 0 .13 - - - - - - - - - - - Change in the fair value of equity securities ( 0.04) (0.24) 0.49 (0.08) 0 .03 ( 0.01) (0.17) 0.23 ( 0.01) (0.02) 0 .09 - - Tax on Core OID, repositioning items, & change in the fair value of equity securities 0.00 0.05 ( 0.11) 0.01 (0.01) (0.00) 0 .03 ( 0.06) (0.01) (0.01) ( 0.03) (0.02) ( 0.01) (assumes 21% tax rate starting in 1Q18, 35% prior) Significant discrete tax items - - - - - (0.50) - - - - - 0 .27 - Adjusted EPS [a] / [b] $ 1.25 $ 0.61 $ (0.44) $ 0.95 $ 1.01 $ 0.97 $ 0.80 $ 0.92 $ 0.91 $ 0.83 $ 0.68 $ 0.70 $ 0.65 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) excludes equity fair value adjustments (net of tax) related to ASU 2016-01 which requires change in the fair value of equity securities to be recognized in current period net income as compared to periods prior to 1/1/18 in which such adjustments were recognized through other comprehensive income, a component of equity, (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 (e.g., Series A and Series G) that have been taken by the company to normalize its capital structure, as applicable for respective periods. 3Q 2020 Preliminary Results 32Supplemental GAAP to Core Results: Adjusted EPS - Quarterly Adjusted Earnings per Share ( Adjusted EPS ) QUARTERLY TREND 3Q 20 2Q 20 1Q 20 4Q 19 3Q 19 2Q 19 1Q 19 4Q 18 3Q 18 2Q 18 1Q 18 4Q 17 3Q 17 Numerator ($ millions) GAAP net income (loss) attributable to common shareholders $ 476 $ 241 $ (319) $ 378 $ 381 $ 582 $ 374 $ 290 $ 374 $ 349 $ 250 $ 181 $ 282 Discontinued operations, net of tax - 1 - 3 - 2 1 (1) - (1) 2 (2) (2) Core OID 9 9 8 8 7 7 7 23 22 21 20 19 18 Repositioning items - 50 - - - - - - - - - - - Change in the fair value of equity securities (13) (90) 185 (29) 11 (2) (70) 95 (6) (8) 40 - - Tax on Core OID, repositioning items, & change in the fair value of equity securities 1 17 (41) 4 (4) (1) 13 (25) (3) (3) (13) (7) (6) (assumes 21% tax rate starting in 1Q18, 35% prior) Significant discrete tax items - - - - - (201) - - - - - 119 - Core net income (loss) attributable to common shareholders [a] $ 473 $ 228 $ (166) $ 364 $ 396 $ 387 $ 325 $ 382 $ 386 $ 358 $ 300 $ 310 $ 292 Denominator Weighted-average common shares outstanding - (Diluted, thousands) [b] 377,011 375,762 375,723 383,391 392,604 399,916 405,959 414,750 424,784 432,554 438,931 444,985 451,078 0 Metric GAAP EPS $ 1.26 $ 0.64 $ (0.85) $ 0.99 $ 0.97 $ 1.46 $ 0.92 $ 0.70 $ 0.88 $ 0.81 $ 0.57 $ 0.41 $ 0.63 Discontinued operations, net of tax - 0 .00 - 0.01 - 0 .01 0.00 ( 0.00) - ( 0.00) 0 .00 (0.00) (0.00) Core OID 0 .02 0.02 0.02 0 .02 0.02 0.02 0 .02 0.06 0.05 0.05 0.05 0.04 0.04 Repositioning items - 0 .13 - - - - - - - - - - - Change in the fair value of equity securities ( 0.04) (0.24) 0.49 (0.08) 0 .03 ( 0.01) (0.17) 0.23 ( 0.01) (0.02) 0 .09 - - Tax on Core OID, repositioning items, & change in the fair value of equity securities 0.00 0.05 ( 0.11) 0.01 (0.01) (0.00) 0 .03 ( 0.06) (0.01) (0.01) ( 0.03) (0.02) ( 0.01) (assumes 21% tax rate starting in 1Q18, 35% prior) Significant discrete tax items - - - - - (0.50) - - - - - 0 .27 - Adjusted EPS [a] / [b] $ 1.25 $ 0.61 $ (0.44) $ 0.95 $ 1.01 $ 0.97 $ 0.80 $ 0.92 $ 0.91 $ 0.83 $ 0.68 $ 0.70 $ 0.65 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) excludes equity fair value adjustments (net of tax) related to ASU 2016-01 which requires change in the fair value of equity securities to be recognized in current period net income as compared to periods prior to 1/1/18 in which such adjustments were recognized through other comprehensive income, a component of equity, (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 (e.g., Series A and Series G) that have been taken by the company to normalize its capital structure, as applicable for respective periods. 3Q 2020 Preliminary Results 32


Supplemental GAAP to Core Results: Adjusted TBVPS - Quarterly Adjusted Tangible Book Value per Share ( Adjusted TBVPS ) QUARTERLY TREND 3Q 20 2Q 20 1Q 20 4Q 19 3Q 19 2Q 19 1Q 19 4Q 18 3Q 18 2Q 18 1Q 18 4Q 17 3Q 17 Numerator ($ billions) GAAP common shareholder's equity $ 14.1 $ 13.8 $ 13.5 $ 14.4 $ 14.5 $ 14.3 $ 13.7 $ 13.3 $ 13.1 $ 13.1 $ 13.1 $ 13.5 $ 13.6 Goodwill and identifiable intangibles, net of DTLs (0.4) (0.4) (0.4) (0.5) (0.3) (0.3) (0.3) (0.3) (0.3) (0.3) (0.3) (0.3) (0.3) Tangible common equity 13.7 1 3.4 1 3.1 1 4.0 14.2 1 4.0 13.4 13.0 12.8 1 2.8 1 2.8 13.2 1 3.3 Tax-effected Core OID balance (assumes 21% tax rate starting in 4Q17, 35% prior) (0.8) (0.8) (0.8) (0.8) (0.8) (0.9) (0.9) (0.9) (0.9) (0.9) (0.9) (0.9) (0.8) Adjusted tangible book value [a] $ 12.9 $ 12.6 $ 12.2 $ 13.1 $ 13.3 $ 13.2 $ 12.6 $ 12.1 $ 11.9 $ 12.0 $ 11.9 $ 12.3 $ 12.5 Denominator Issued shares outstanding (period-end, thousands) [b] 373,857 373,837 373,155 374,332 383,523 392,775 399,761 404,900 416,591 425,752 432,691 437,054 443,796 Metric GAAP common shareholder's equity per share $ 37.8 $ 37.0 $ 36.2 $ 38.5 $ 37.7 $ 36.4 $ 34.3 $ 32.8 $ 31.4 $ 30.9 $ 30.2 $ 30.9 $ 30.6 Goodwill and identifiable intangibles, net of DTLs per share (1.0) (1.0) (1.2) (1.2) (0.7) (0.7) (0.7) (0.7) (0.7) (0.7) (0.7) (0.7) (0.6) Tangible common equity per share 3 6.7 3 5.9 3 5.0 3 7.3 3 7.0 3 5.7 3 3.6 3 2.1 30.7 30.2 2 9.6 3 0.2 29.9 Tax-effected Core OID balance (assumes 21% tax rate starting in 4Q17, 35% prior) per share (2.2) (2.2) (2.2) (2.2) (2.2) (2.2) (2.1) (2.1) (2.1) (2.1) (2.1) (2.1) (1.8) Adjusted tangible book value per share [a] / [b] $ 34.6 $ 33.7 $ 32.8 $ 35.1 $ 34.7 $ 33.6 $ 31.4 $ 29.9 $ 28.6 $ 28.1 $ 27.4 $ 28.1 $ 28.2 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, (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. Calculated Impact to Adjusted TBVPS from CECL Day-1 1Q 20 Numerator ($ billions) Adjusted tangible book value $ 12.2 CECL Day-1 impact to retained earnings, net of tax 1.0 Adjusted tangible book value less CECL Day-1 impact [a] $ 13.3 Denominator Issued shares outstanding (period-end, thousands) [b] 373,155 Metric Adjusted TBVPS $ 32.8 CECL Day-1 impact to retained earnings, net of tax per share 2.7 Adjusted tangible book value, less CECL Day-1 impact per share [a] / [b] $ 35.5 Ally adopted CECL on January 1, 2020. Upon implementation of CECL Ally recognized a reduction to our opening retained earnings balance of approximately $1.0 billion, net of income tax, which reflects a pre-tax increase to the allowance for loan losses of approximately $1.3 billion. This increase is almost exclusively driven by our consumer automotive loan portfolio. 3Q 2020 Preliminary Results 33Supplemental GAAP to Core Results: Adjusted TBVPS - Quarterly Adjusted Tangible Book Value per Share ( Adjusted TBVPS ) QUARTERLY TREND 3Q 20 2Q 20 1Q 20 4Q 19 3Q 19 2Q 19 1Q 19 4Q 18 3Q 18 2Q 18 1Q 18 4Q 17 3Q 17 Numerator ($ billions) GAAP common shareholder's equity $ 14.1 $ 13.8 $ 13.5 $ 14.4 $ 14.5 $ 14.3 $ 13.7 $ 13.3 $ 13.1 $ 13.1 $ 13.1 $ 13.5 $ 13.6 Goodwill and identifiable intangibles, net of DTLs (0.4) (0.4) (0.4) (0.5) (0.3) (0.3) (0.3) (0.3) (0.3) (0.3) (0.3) (0.3) (0.3) Tangible common equity 13.7 1 3.4 1 3.1 1 4.0 14.2 1 4.0 13.4 13.0 12.8 1 2.8 1 2.8 13.2 1 3.3 Tax-effected Core OID balance (assumes 21% tax rate starting in 4Q17, 35% prior) (0.8) (0.8) (0.8) (0.8) (0.8) (0.9) (0.9) (0.9) (0.9) (0.9) (0.9) (0.9) (0.8) Adjusted tangible book value [a] $ 12.9 $ 12.6 $ 12.2 $ 13.1 $ 13.3 $ 13.2 $ 12.6 $ 12.1 $ 11.9 $ 12.0 $ 11.9 $ 12.3 $ 12.5 Denominator Issued shares outstanding (period-end, thousands) [b] 373,857 373,837 373,155 374,332 383,523 392,775 399,761 404,900 416,591 425,752 432,691 437,054 443,796 Metric GAAP common shareholder's equity per share $ 37.8 $ 37.0 $ 36.2 $ 38.5 $ 37.7 $ 36.4 $ 34.3 $ 32.8 $ 31.4 $ 30.9 $ 30.2 $ 30.9 $ 30.6 Goodwill and identifiable intangibles, net of DTLs per share (1.0) (1.0) (1.2) (1.2) (0.7) (0.7) (0.7) (0.7) (0.7) (0.7) (0.7) (0.7) (0.6) Tangible common equity per share 3 6.7 3 5.9 3 5.0 3 7.3 3 7.0 3 5.7 3 3.6 3 2.1 30.7 30.2 2 9.6 3 0.2 29.9 Tax-effected Core OID balance (assumes 21% tax rate starting in 4Q17, 35% prior) per share (2.2) (2.2) (2.2) (2.2) (2.2) (2.2) (2.1) (2.1) (2.1) (2.1) (2.1) (2.1) (1.8) Adjusted tangible book value per share [a] / [b] $ 34.6 $ 33.7 $ 32.8 $ 35.1 $ 34.7 $ 33.6 $ 31.4 $ 29.9 $ 28.6 $ 28.1 $ 27.4 $ 28.1 $ 28.2 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, (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. Calculated Impact to Adjusted TBVPS from CECL Day-1 1Q 20 Numerator ($ billions) Adjusted tangible book value $ 12.2 CECL Day-1 impact to retained earnings, net of tax 1.0 Adjusted tangible book value less CECL Day-1 impact [a] $ 13.3 Denominator Issued shares outstanding (period-end, thousands) [b] 373,155 Metric Adjusted TBVPS $ 32.8 CECL Day-1 impact to retained earnings, net of tax per share 2.7 Adjusted tangible book value, less CECL Day-1 impact per share [a] / [b] $ 35.5 Ally adopted CECL on January 1, 2020. Upon implementation of CECL Ally recognized a reduction to our opening retained earnings balance of approximately $1.0 billion, net of income tax, which reflects a pre-tax increase to the allowance for loan losses of approximately $1.3 billion. This increase is almost exclusively driven by our consumer automotive loan portfolio. 3Q 2020 Preliminary Results 33


Supplemental GAAP to Core Results: Core ROTCE - Quarterly Core Return on Tangible Common Equity ( Core ROTCE ) QUARTERLY TREND 3Q 20 2Q 20 1Q 20 4Q 19 3Q 19 Numerator ($ millions) GAAP net income (loss) attributable to common shareholders $ 476 $ 241 $ (319) $ 378 $ 381 Discontinued operations, net of tax - 1 - 3 - Core OID 9 9 8 8 7 Repositioning Items - 50 - - - Change in the fair value of equity securities (13) (90) 185 (29) 11 Tax on Core OID & change in the fair value of equity securities (assumes 21% tax rate) 1 17 (41) 4 (4) Significant discrete tax items & other - - - - - Core net income (loss) attributable to common shareholders [a] $ 473 $ 228 $ (166) $ 364 $ 396 Denominator (2-period average, $ billions) GAAP shareholder's equity $ 14.0 $ 13.7 $ 14.0 $ 14.4 $ 14.4 Goodwill & identifiable intangibles, net of deferred tax liabilities ( DTLs ) (0.4) (0.4) (0.4) (0.4) (0.3) Tangible common equity $ 13.6 $ 13.3 $ 13.5 $ 14.1 $ 14.1 Core OID balance (1.0) (1.1) (1.1) (1.1) (1.1) Net deferred tax asset ( DTA ) (0.1) (0.2) (0.1) (0.0) (0.1) Normalized common equity [b] $ 12.4 $ 12.0 $ 12.3 $ 13.0 $ 12.9 Core Return on Tangible Common Equity [a] / [b] 15.2% 7.6% -5.4% 11.2% 12.3% 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, fair value adjustments (net of tax) related to ASU 2016-01 which requires change in the fair value of equity securities to be recognized in current period net income as compared to periods prior to 1/1/18 in which such adjustments were recognized through other comprehensive income, a component of equity, 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. 3Q 2020 Preliminary Results 34Supplemental GAAP to Core Results: Core ROTCE - Quarterly Core Return on Tangible Common Equity ( Core ROTCE ) QUARTERLY TREND 3Q 20 2Q 20 1Q 20 4Q 19 3Q 19 Numerator ($ millions) GAAP net income (loss) attributable to common shareholders $ 476 $ 241 $ (319) $ 378 $ 381 Discontinued operations, net of tax - 1 - 3 - Core OID 9 9 8 8 7 Repositioning Items - 50 - - - Change in the fair value of equity securities (13) (90) 185 (29) 11 Tax on Core OID & change in the fair value of equity securities (assumes 21% tax rate) 1 17 (41) 4 (4) Significant discrete tax items & other - - - - - Core net income (loss) attributable to common shareholders [a] $ 473 $ 228 $ (166) $ 364 $ 396 Denominator (2-period average, $ billions) GAAP shareholder's equity $ 14.0 $ 13.7 $ 14.0 $ 14.4 $ 14.4 Goodwill & identifiable intangibles, net of deferred tax liabilities ( DTLs ) (0.4) (0.4) (0.4) (0.4) (0.3) Tangible common equity $ 13.6 $ 13.3 $ 13.5 $ 14.1 $ 14.1 Core OID balance (1.0) (1.1) (1.1) (1.1) (1.1) Net deferred tax asset ( DTA ) (0.1) (0.2) (0.1) (0.0) (0.1) Normalized common equity [b] $ 12.4 $ 12.0 $ 12.3 $ 13.0 $ 12.9 Core Return on Tangible Common Equity [a] / [b] 15.2% 7.6% -5.4% 11.2% 12.3% 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, fair value adjustments (net of tax) related to ASU 2016-01 which requires change in the fair value of equity securities to be recognized in current period net income as compared to periods prior to 1/1/18 in which such adjustments were recognized through other comprehensive income, a component of equity, 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. 3Q 2020 Preliminary Results 34


Supplemental GAAP to Core Results: Adjusted Efficiency Ratio - Quarterly Adjusted Efficiency Ratio QUARTERLY TREND 3Q 20 2Q 20 1Q 20 4Q 19 3Q 19 Numerator ($ millions) GAAP noninterest expense $ 905 $ 985 $ 920 $ 880 $ 838 Insurance expense ( 268) (322) ( 256) ( 238) (247) Repositioning items - (50) - - - Adjusted noninterest expense for the efficiency ratio [a] $ 637 $ 613 $ 664 $ 642 $ 591 Denominator ($ millions) Total net revenue $ 1,684 $ 1,609 $ 1,412 $ 1,643 $ 1,601 Core OID 9 9 8 8 7 Insurance revenue ( 346) ( 450) ( 151) (352) (303) Adjusted net revenue for the efficiency ratio [b] $ 1,347 $ 1,168 $ 1,269 $ 1,299 $ 1,305 Adjusted Efficiency Ratio [a] / [b] 47.3% 52.5% 52.3% 49.4% 45.3% 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. See page 20 for the combined ratio for the Insurance segment which management uses as a primary measure of underwriting profitability for the Insurance segment. 3Q 2020 Preliminary Results 35Supplemental GAAP to Core Results: Adjusted Efficiency Ratio - Quarterly Adjusted Efficiency Ratio QUARTERLY TREND 3Q 20 2Q 20 1Q 20 4Q 19 3Q 19 Numerator ($ millions) GAAP noninterest expense $ 905 $ 985 $ 920 $ 880 $ 838 Insurance expense ( 268) (322) ( 256) ( 238) (247) Repositioning items - (50) - - - Adjusted noninterest expense for the efficiency ratio [a] $ 637 $ 613 $ 664 $ 642 $ 591 Denominator ($ millions) Total net revenue $ 1,684 $ 1,609 $ 1,412 $ 1,643 $ 1,601 Core OID 9 9 8 8 7 Insurance revenue ( 346) ( 450) ( 151) (352) (303) Adjusted net revenue for the efficiency ratio [b] $ 1,347 $ 1,168 $ 1,269 $ 1,299 $ 1,305 Adjusted Efficiency Ratio [a] / [b] 47.3% 52.5% 52.3% 49.4% 45.3% 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. See page 20 for the combined ratio for the Insurance segment which management uses as a primary measure of underwriting profitability for the Insurance segment. 3Q 2020 Preliminary Results 35


Supplemental Notes on Non-GAAP and Other Financial Measures ($ millions) 3Q 20 2Q 20 3Q 19 Change in the Change in the Change in the fair value of fair value of fair value of (1) (1) (1) GAAP Core OID Repositioning Non-GAAP GAAP Core OID Repositioning Non-GAAP GAAP Core OID Repositioning Non-GAAP equity equity equity securities securities securities Consolidated Ally Net financing revenue $ 1,200 $ 9 $ - $ - 1,209 $ 1,054 $ 9 $ - $ - $ 1,063 $ 1,188 $ 7 $ - $ - $ 1,195 Total other revenue 484 - ( 13) - 471 555 - (90) - 465 413 - 11 - 424 Provision for credit losses 147 - - - 147 287 - - - 287 263 - - - 263 Noninterest expense 905 - - - 905 985 - - (50) 935 838 - - - 838 Pre-tax income (loss) from continuing operations $ 632 $ 9 $ (13) $ - $ 628 $ 337 $ 9 $ (90) $ 50 $ 306 $ 500 $ 7 $ 11 $ - $ 519 Corporate / Other Net financing revenue $ (15) $ 9 $ - $ - $ (6) $ (54) $ 9 $ - $ - $ (45) $ (3) $ 7 $ - $ - $ 4 Total other revenue 40 - - - 40 52 - - - 52 46 - - - 46 Provision for credit losses 18 - - - 18 3 - - - 3 (5) - - - (5) Noninterest expense 105 - - - 105 155 - - (50) 105 88 - - - 88 Pre-tax income (loss) from continuing operations $ (98) $ 9 $ - $ - $ (89) $ ( 160) $ 9 $ - $ 50 $ ( 101) $ (40) $ 7 $ - $ - $ (33) Insurance Premiums, service revenue earned and other $ 279 $ - $ - $ - $ 279 $ 266 $ - $ - $ - $ 266 $ 283 $ - $ - $ - $ 283 Losses and loss adjustment expenses 85 - - - 85 142 - - - 142 74 - - - 74 Acquisition and underwriting expenses 183 - - - 183 180 - - - 180 173 - - - 173 Investment income and other 67 - (13) - 54 184 - (89) - 95 20 - 10 - 30 Pre-tax income (loss) from continuing operations $ 78 $ - $ (13) $ - $ 65 $ 128 $ - $ (89) $ - $ 39 $ 56 $ - $ 10 $ - $ 66 Corporate Finance Net financing revenue $ 75 $ - $ - $ - $ 75 $ 77 $ - $ - $ - $ 77 $ 60 $ - $ - $ - $ 60 Total other revenue 9 - (1) - 8 6 - ( 1) - 5 9 - 1 - 10 Provision for credit losses 1 - - - 1 25 - - - 25 3 - - - 3 Noninterest expense 23 - - - 23 26 - - - 26 22 - - - 22 Pre-tax income (loss) from continuing operations $ 60 $ - $ (1) $ - $ 59 $ 32 $ - $ (1) $ - $ 31 $ 44 $ - $ 1 $ - $ 45 (1) Non-GAAP line items walk to Core pre-tax income, a non-GAAP financial measure that adjusts pre-tax income. See page 30 for definitions. 3Q 2020 Preliminary Results 36Supplemental Notes on Non-GAAP and Other Financial Measures ($ millions) 3Q 20 2Q 20 3Q 19 Change in the Change in the Change in the fair value of fair value of fair value of (1) (1) (1) GAAP Core OID Repositioning Non-GAAP GAAP Core OID Repositioning Non-GAAP GAAP Core OID Repositioning Non-GAAP equity equity equity securities securities securities Consolidated Ally Net financing revenue $ 1,200 $ 9 $ - $ - 1,209 $ 1,054 $ 9 $ - $ - $ 1,063 $ 1,188 $ 7 $ - $ - $ 1,195 Total other revenue 484 - ( 13) - 471 555 - (90) - 465 413 - 11 - 424 Provision for credit losses 147 - - - 147 287 - - - 287 263 - - - 263 Noninterest expense 905 - - - 905 985 - - (50) 935 838 - - - 838 Pre-tax income (loss) from continuing operations $ 632 $ 9 $ (13) $ - $ 628 $ 337 $ 9 $ (90) $ 50 $ 306 $ 500 $ 7 $ 11 $ - $ 519 Corporate / Other Net financing revenue $ (15) $ 9 $ - $ - $ (6) $ (54) $ 9 $ - $ - $ (45) $ (3) $ 7 $ - $ - $ 4 Total other revenue 40 - - - 40 52 - - - 52 46 - - - 46 Provision for credit losses 18 - - - 18 3 - - - 3 (5) - - - (5) Noninterest expense 105 - - - 105 155 - - (50) 105 88 - - - 88 Pre-tax income (loss) from continuing operations $ (98) $ 9 $ - $ - $ (89) $ ( 160) $ 9 $ - $ 50 $ ( 101) $ (40) $ 7 $ - $ - $ (33) Insurance Premiums, service revenue earned and other $ 279 $ - $ - $ - $ 279 $ 266 $ - $ - $ - $ 266 $ 283 $ - $ - $ - $ 283 Losses and loss adjustment expenses 85 - - - 85 142 - - - 142 74 - - - 74 Acquisition and underwriting expenses 183 - - - 183 180 - - - 180 173 - - - 173 Investment income and other 67 - (13) - 54 184 - (89) - 95 20 - 10 - 30 Pre-tax income (loss) from continuing operations $ 78 $ - $ (13) $ - $ 65 $ 128 $ - $ (89) $ - $ 39 $ 56 $ - $ 10 $ - $ 66 Corporate Finance Net financing revenue $ 75 $ - $ - $ - $ 75 $ 77 $ - $ - $ - $ 77 $ 60 $ - $ - $ - $ 60 Total other revenue 9 - (1) - 8 6 - ( 1) - 5 9 - 1 - 10 Provision for credit losses 1 - - - 1 25 - - - 25 3 - - - 3 Noninterest expense 23 - - - 23 26 - - - 26 22 - - - 22 Pre-tax income (loss) from continuing operations $ 60 $ - $ (1) $ - $ 59 $ 32 $ - $ (1) $ - $ 31 $ 44 $ - $ 1 $ - $ 45 (1) Non-GAAP line items walk to Core pre-tax income, a non-GAAP financial measure that adjusts pre-tax income. See page 30 for definitions. 3Q 2020 Preliminary Results 36


Supplemental Notes on Non-GAAP and Other Financial Measures Net Financing Revenue (ex. Core OID) QUARTERLY TREND ($ millions) 3Q 20 2Q 20 1Q 20 4Q 19 3Q 19 2Q 19 1Q 19 4Q 18 3Q 18 2Q 18 1Q 18 4Q 17 3Q 17 GAAP Net Financing Revenue $ 1 ,200 $ 1 ,054 $ 1,146 $ 1,156 $ 1 ,188 $ 1 ,157 $ 1,132 $ 1 ,140 $ 1,107 $ 1 ,094 $ 1 ,049 $ 1,094 $ 1,081 Core OID 9 9 8 8 7 7 7 23 22 21 20 19 18 Net Financing Revenue (ex. Core OID) [a] $ 1 ,209 $ 1 ,063 $ 1,154 $ 1,164 $ 1 ,195 $ 1 ,164 $ 1,139 $ 1,163 $ 1 ,129 $ 1 ,115 $ 1 ,069 $ 1,113 $ 1 ,099 Adjusted Other Revenue QUARTERLY TREND ($ millions) 3Q 20 2Q 20 1Q 20 4Q 19 3Q 19 2Q 19 1Q 19 4Q 18 3Q 18 2Q 18 1Q 18 4Q 17 3Q 17 GAAP Other Revenue $ 484 $ 555 $ 266 $ 487 $ 413 $ 395 $ 466 $ 298 $ 398 $ 364 $ 354 $ 379 $ 381 Accelerated OID & repositioning items - - - - - - - - - - - - - Change in the fair value of equity securities (13) (90) 185 (29) 11 (2) (70) 95 (6) (8) 40 - - Adjusted Other Revenue [b] $ 471 $ 465 $ 451 $ 458 $ 424 $ 393 $ 396 $ 393 $ 392 $ 356 $ 394 $ 379 $ 381 Adjusted Total Net Revenue ($ millions) Adjusted Total Net Revenue [a]+[b] $ 1,680 $ 1,528 $ 1,606 $ 1,622 $ 1,620 $ 1 ,557 $ 1,535 $ 1,556 $ 1 ,521 $ 1,471 $ 1,463 $ 1 ,492 $ 1,480 Adjusted NIE (ex. Impairment) QUARTERLY TREND ($ millions) 3Q 20 2Q 20 1Q 20 4Q 19 3Q 19 2Q 19 1Q 19 4Q 18 3Q 18 2Q 18 1Q 18 4Q 17 3Q 17 GAAP Noninterest Expense $ 905 $ 985 $ 920 $ 880 $ 838 $ 881 $ 830 $ 804 $ 807 $ 839 $ 814 $ 769 $ 753 Impairment - (50) - - - - - - - - - - - Adjusted NIE (ex. Impairment) [c] $ 905 $ 935 $ 920 $ 880 $ 838 $ 881 $ 830 $ 804 $ 807 $ 839 $ 814 $ 769 $ 753 Original issue discount amortization expense QUARTERLY TREND ($ millions) 3Q 20 2Q 20 1Q 20 4Q 19 3Q 19 2Q 19 1Q 19 4Q 18 3Q 18 2Q 18 1Q 18 4Q 17 3Q 17 (1) Core original issue discount (Core OID) amortization expense $ 9 $ 9 $ 8 $ 8 $ 7 $ 7 $ 7 $ 23 $ 22 $ 21 $ 20 $ 19 $ 18 Other OID 3 4 3 3 3 3 3 2 4 4 4 5 5 GAAP original issue discount amortization expense $ 12 $ 12 $ 11 $ 11 $ 11 $ 10 $ 10 $ 26 $ 25 $ 25 $ 24 $ 24 $ 23 Outstanding original issue discount balance QUARTERLY TREND ($ millions) 3Q 20 2Q 20 1Q 20 4Q 19 3Q 19 2Q 19 4Q 18 3Q 18 2Q 18 1Q 18 4Q 17 3Q 17 2Q 17 Core outstanding original issue discount balance (Core OID balance) $ (1,037) $ ( 1,046) $ ( 1,055) $ ( 1,063) $ ( 1,071) $ ( 1,078) $ (1,085) $ (1,092) $ (1,115) $ (1,137) $ (1,158) $ (1,178) $ (1,197) Other outstanding OID balance (48) (46) (34) (37) (40) (44) (39) (43) (46) (49) (53) (57) (62) GAAP outstanding original issue discount balance $ (1,084) $ (1,092) $ ( 1,089) $ (1,100) $ ( 1,111) $ (1,122) $ ( 1,125) $ ( 1,135) $ (1,161) $ ( 1,187) $ (1,211) $ (1,235) $ ( 1,259) (1) Excludes accelerated OID. See page 30 for definitions. Note: Equity fair value adjustments related to ASU 2016-01 requires change in the fair value of equity securities to be recognized in current period net income as compared to periods prior to 1/1/18 in which such adjustments were recognized through other comprehensive income, a component of equity. Repositioning and other which are primarily related to the extinguishment of high cost legacy debt, strategic activities and significant other one-time items. See page 30 for definitions. 3Q 2020 Preliminary Results 37Supplemental Notes on Non-GAAP and Other Financial Measures Net Financing Revenue (ex. Core OID) QUARTERLY TREND ($ millions) 3Q 20 2Q 20 1Q 20 4Q 19 3Q 19 2Q 19 1Q 19 4Q 18 3Q 18 2Q 18 1Q 18 4Q 17 3Q 17 GAAP Net Financing Revenue $ 1 ,200 $ 1 ,054 $ 1,146 $ 1,156 $ 1 ,188 $ 1 ,157 $ 1,132 $ 1 ,140 $ 1,107 $ 1 ,094 $ 1 ,049 $ 1,094 $ 1,081 Core OID 9 9 8 8 7 7 7 23 22 21 20 19 18 Net Financing Revenue (ex. Core OID) [a] $ 1 ,209 $ 1 ,063 $ 1,154 $ 1,164 $ 1 ,195 $ 1 ,164 $ 1,139 $ 1,163 $ 1 ,129 $ 1 ,115 $ 1 ,069 $ 1,113 $ 1 ,099 Adjusted Other Revenue QUARTERLY TREND ($ millions) 3Q 20 2Q 20 1Q 20 4Q 19 3Q 19 2Q 19 1Q 19 4Q 18 3Q 18 2Q 18 1Q 18 4Q 17 3Q 17 GAAP Other Revenue $ 484 $ 555 $ 266 $ 487 $ 413 $ 395 $ 466 $ 298 $ 398 $ 364 $ 354 $ 379 $ 381 Accelerated OID & repositioning items - - - - - - - - - - - - - Change in the fair value of equity securities (13) (90) 185 (29) 11 (2) (70) 95 (6) (8) 40 - - Adjusted Other Revenue [b] $ 471 $ 465 $ 451 $ 458 $ 424 $ 393 $ 396 $ 393 $ 392 $ 356 $ 394 $ 379 $ 381 Adjusted Total Net Revenue ($ millions) Adjusted Total Net Revenue [a]+[b] $ 1,680 $ 1,528 $ 1,606 $ 1,622 $ 1,620 $ 1 ,557 $ 1,535 $ 1,556 $ 1 ,521 $ 1,471 $ 1,463 $ 1 ,492 $ 1,480 Adjusted NIE (ex. Impairment) QUARTERLY TREND ($ millions) 3Q 20 2Q 20 1Q 20 4Q 19 3Q 19 2Q 19 1Q 19 4Q 18 3Q 18 2Q 18 1Q 18 4Q 17 3Q 17 GAAP Noninterest Expense $ 905 $ 985 $ 920 $ 880 $ 838 $ 881 $ 830 $ 804 $ 807 $ 839 $ 814 $ 769 $ 753 Impairment - (50) - - - - - - - - - - - Adjusted NIE (ex. Impairment) [c] $ 905 $ 935 $ 920 $ 880 $ 838 $ 881 $ 830 $ 804 $ 807 $ 839 $ 814 $ 769 $ 753 Original issue discount amortization expense QUARTERLY TREND ($ millions) 3Q 20 2Q 20 1Q 20 4Q 19 3Q 19 2Q 19 1Q 19 4Q 18 3Q 18 2Q 18 1Q 18 4Q 17 3Q 17 (1) Core original issue discount (Core OID) amortization expense $ 9 $ 9 $ 8 $ 8 $ 7 $ 7 $ 7 $ 23 $ 22 $ 21 $ 20 $ 19 $ 18 Other OID 3 4 3 3 3 3 3 2 4 4 4 5 5 GAAP original issue discount amortization expense $ 12 $ 12 $ 11 $ 11 $ 11 $ 10 $ 10 $ 26 $ 25 $ 25 $ 24 $ 24 $ 23 Outstanding original issue discount balance QUARTERLY TREND ($ millions) 3Q 20 2Q 20 1Q 20 4Q 19 3Q 19 2Q 19 4Q 18 3Q 18 2Q 18 1Q 18 4Q 17 3Q 17 2Q 17 Core outstanding original issue discount balance (Core OID balance) $ (1,037) $ ( 1,046) $ ( 1,055) $ ( 1,063) $ ( 1,071) $ ( 1,078) $ (1,085) $ (1,092) $ (1,115) $ (1,137) $ (1,158) $ (1,178) $ (1,197) Other outstanding OID balance (48) (46) (34) (37) (40) (44) (39) (43) (46) (49) (53) (57) (62) GAAP outstanding original issue discount balance $ (1,084) $ (1,092) $ ( 1,089) $ (1,100) $ ( 1,111) $ (1,122) $ ( 1,125) $ ( 1,135) $ (1,161) $ ( 1,187) $ (1,211) $ (1,235) $ ( 1,259) (1) Excludes accelerated OID. See page 30 for definitions. Note: Equity fair value adjustments related to ASU 2016-01 requires change in the fair value of equity securities to be recognized in current period net income as compared to periods prior to 1/1/18 in which such adjustments were recognized through other comprehensive income, a component of equity. Repositioning and other which are primarily related to the extinguishment of high cost legacy debt, strategic activities and significant other one-time items. See page 30 for definitions. 3Q 2020 Preliminary Results 37

EX-99.3

Exhibit 99.3

 

LOGO

THIRD QUARTER 2020

FINANCIAL SUPPLEMENT


ALLY FINANCIAL INC.

FORWARD-LOOKING STATEMENTS AND ADDITIONAL INFORMATION

   LOGO

 

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 future effects of COVID-19, 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, 2019, 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.

 

3Q 2020 Preliminary Results    2


ALLY FINANCIAL INC.

TABLE OF CONTENTS

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     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

     18  

Net Interest Margin and Deposits

     19  

Ally Bank Consumer Mortgage HFI Portfolios

     20  

Earnings Per Share Related Information

     21  

Adjusted Tangible Book Per Share Related Information

     22  

Core ROTCE Related Information

     23  

Adjusted Efficiency Ratio Related Information

     24  

 

3Q 2020 Preliminary Results    3


ALLY FINANCIAL INC.

CONSOLIDATED FINANCIAL HIGHLIGHTS

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($ in millions, shares in thousands)

                                                                                                                                                         
     QUARTERLY TRENDS   CHANGE VS.

Selected Income Statement Data

   3Q 20   2Q 20   1Q 20   4Q 19   3Q 19   2Q 20   3Q 19

Net financing revenue (excluding Core OID) (1)

     $ 1,209       $ 1,063       $ 1,154       $ 1,164       $ 1,195       $ 146       $ 14  

Core OID

     (9     (9     (8     (8     (7     0       (2

Net financing revenue (as reported)

     1,200       1,054       1,146       1,156       1,188       146       12  

Other revenue (excluding change in fair value of equity securities) (2)

     471       465       451       458       424       5       46  

Change in fair value of equity securities (3)

     13       90       (185     29       (11     (76     25  

Other revenue (as reported)

     484       555       266       487       413       (71     71  

Provision for loan losses

     147       287       903       276       263       (140     (116

Total noninterest expense (4)

     905       985       920       880       838       (80     67  
  

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Pre-tax income (loss) from continuing operations

     632       337       (411     487       500       295       132  

Income tax expense / (benefit)

     156       95       (92     106       119       61       37  

(Loss) / income from discontinued operations, net of tax

     -       (1     -       (3     -       1       -  
  

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income / (loss) attributable to common shareholders

     $ 476       $ 241       $ (319     $ 378       $ 381       $ 235       $ 95  

Selected Balance Sheet Data (Period-End)

              

Total assets

     $  185,270       $ 184,061       $ 182,527       $ 180,644       $ 181,485       $ 1,209       $ 3,785  

Consumer loans

     90,160       90,365       90,066       89,924       90,081       (205     79  

Commercial loans

     27,868       27,869       38,073       38,307       38,528       (1     (10,660

Allowance for loan losses

     (3,379     (3,354     (3,245     (1,263     (1,277     (25     (2,102

Deposits

     134,938       131,036       122,324       120,752       119,230       3,902       15,708  

Total equity

     14,126       13,826       13,519       14,416       14,450       300       (324

Common Share Count

              

Weighted average basic (5)

     375,658       375,051       375,723       380,793       390,205       606       (14,548

Weighted average diluted (5)

     377,011       375,762       375,723       383,391       392,604       1,250       (15,593

Issued shares outstanding (period-end)

     373,857       373,837       373,155       374,332       383,523       20       (9,666

Per Common Share Data

              

Earnings per share (basic) (5)

     $ 1.27       $ 0.64       $ (0.85     $ 0.99       $ 0.98       $ 0.62       $ 0.29  

Earnings per share (diluted) (5)

     1.26       0.64       (0.85     0.99       0.97       0.62       0.29  

Adjusted earnings per share (6)

     1.25       0.61       (0.44     0.95       1.01       0.65       0.25  

Book value per share

     37.8       37.0       36.2       38.5       37.7       0.8       0.1  

Tangible book value per share (7)

     36.7       35.9       35.0       37.3       37.0       0.8       (0.2

Adjusted tangible book value per share (7)

     34.6       33.7       32.8       35.1       34.7       0.8       (0.2

Select Financial Ratios

              

Net interest margin (as reported)

     2.65%       2.40%       2.66%       2.64%       2.70%      

Net interest margin (ex. Core OID) (8)

     2.67%       2.42%       2.68%       2.66%       2.72%      

Cost of funds

     1.86%       2.16%       2.43%       2.55%       2.66%      

Cost of funds (ex. Core OID) (8)

     1.82%       2.13%       2.39%       2.51%       2.62%      

Efficiency Ratio (9)

     53.7%       61.2%       65.2%       53.6%       52.3%      

Adjusted efficiency ratio (8)(9)

     47.3%       52.5%       52.3%       49.4%       45.3%      

Return on average assets (10)

     1.0%       0.5%       (0.7)%       0.8%       0.8%      

Return on average total equity (10)

     13.6%       7.1%       (9.1)%       10.5%       10.6%      

Return on average tangible common equity (10)

     14.0%       7.3%       (9.4)%       10.7%       10.8%      

Core ROTCE (11)

     15.2%       7.6%       (5.4)%       11.2%       12.3%      

Capital Ratios (12)

              

Common Equity Tier 1 (CET1) capital ratio

     10.4%       10.1%       9.3%       9.5%       9.6%      

Tier 1 capital ratio

     12.1%       11.9%       10.9%       11.2%       11.2%      

Total capital ratio

     14.1%       13.8%       12.8%       12.8%       12.8%      

Tier 1 leverage ratio

     9.0%       8.9%       8.9%       9.1%       9.1%      

 

(1) Represents a non-GAAP financial measure. Excludes Core OID. For more details refer to page 21.

(2) Represents a non-GAAP financial measure. Adjusted for change in the fair value of equity securities due to the implementation of ASU 2016-01, which requires change in the fair value of equity securities to be recognized in current period net income as compared to periods prior to 1/1/2018 in which such adjustments were recognized through other comprehensive income, a component of equity. For Non-GAAP calculation methodology and details see page 21.

(3) Change in fair value of equity securities impacts the Insurance and Corporate Finance segments. Excludes equity fair value adjustments related to ASU 2016-01, which requires change in the fair value of equity securities to be recognized in current period net income as compared to periods prior to 1/1/2018 in which such adjustments were recognized through other comprehensive income, a component of equity.

(4) Including but not limited to employee related expenses, commissions and provision for losses and loss adjustment expense related to the insurance business, information technology expenses, servicing expenses, facilities expenses, marketing expenses, and other professional and legal expenses.

(5) Due to antidilutive effect of the net loss from pre-tax loss from continuing operations attributable to common shareholders for the first quarter 2020, basic weighted average common shares outstanding were used to calculate diluted earnings per share.

(6) Represents a non-GAAP financial measure. For more details refer to page 21.

(7) Represents a non-GAAP financial measure. For more details refer to page 22.

(8) Represents a non-GAAP financial measure. Excludes Core OID. For more details refer to page 21.

(9) Represents a non-GAAP financial measure. For more details refer to page 24.

(10) Return metrics are annualized.

(11) Return metrics are annualized. Represents a non-GAAP financial measure. For more details refer to page 23.

(12) For more details on final rules to address the impact of CECL on regulatory capital by allowing BHCs and banks, including Ally, see page 17.

 

3Q 2020 Preliminary Results    4


ALLY FINANCIAL INC.

CONSOLIDATED INCOME STATEMENT

   LOGO

 

($ in millions)

                                                                                                                                                         
     QUARTERLY TRENDS   CHANGE VS.
     3Q 20   2Q 20   1Q 20   4Q 19   3Q 19   2Q 20   3Q 19

Financing revenue and other interest income

              

Interest and fees on finance receivables and loans

     $ 1,602       $ 1,630       $ 1,742       $ 1,811       $ 1,859       $ (28     $ (257

Interest on loans held-for-sale

     5       4       2       4       8       1       (3

Total interest and dividends on investment securities

     162       187       213       217       221       (25     (59

Interest-bearing cash

     5       4       14       15       19       1       (14

Other earning assets

     11       10       13       17       16       1       (5

Operating leases

     360       343       367       378       368       17       (8
  

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total financing revenue and other interest income

     2,145       2,178       2,351       2,442       2,491       (33     (346

Interest expense

              

Interest on deposits

     452       541       592       637       658       (89     (206

Interest on short-term borrowings

     9       13       17       21       33       (4     (24

Interest on long-term debt

     309       318       348       366       378       (9     (69
  

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total interest expense

     770       872       957       1,024       1,069       (102     (299

Depreciation expense on operating lease assets

     175       252       248       262       234       (77     (59
  

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net financing revenue (as reported)

     $ 1,200       $ 1,054       $ 1,146       $ 1,156       $ 1,188       $ 146       $ 12  

Other revenue

              

Servicing fees

     2       3       3       3       4       (0     (2

Insurance premiums and service revenue earned

     276       263       277       285       280       13       (4

Gain on mortgage and automotive loans, net

     33       14       (12     6       10       19       23  

Loss on extinguishment of debt

     (49     -       -       -       -       (49     (49

Other gain/loss on investments, net

     64       188       (79     69       27       (124     37  

Other income, net of losses

     157       89       77       125       92       68       65  
  

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total other revenue

     484       555       266       487       413       (71     71  

Total net revenue

     1,684       1,609       1,412       1,643       1,601       75       83  

Provision for loan losses

     147       287       903       276       263       (140     (116

Noninterest expense

              

Compensation and benefits expense

     342       334       360       312       296       8       46  

Insurance losses and loss adjustment expenses

     85       142       74       61       74       (57     11  

Goodwill impairment

     -       50       -       -       -       (50     -  

Other operating expenses

     478       459       486       507       468       19       10  

Total noninterest expense

     905       985       920       880       838       (80     67  

Pre-tax income (loss) from continuing operations

     $ 632       $ 337       $ (411     $ 487       $ 500       $ 295       $ 132  

Income tax expense / (benefit) from continuing operations

     156       95       (92     106       119       61       37  
  

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income (loss) from continuing operations

     476       242       (319     381       381       234       95  

Income / (Loss) from discontinued operations, net of tax

     -       (1     -       (3     -       1       -  
  

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income (loss)

     $ 476       $ 241       $ (319     $ 378       $ 381       $ 235       $ 95  
  

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Core Pre-Tax Income Walk

              

Net financing revenue (ex. OID) (1)

     $ 1,209       $ 1,063       $ 1,154       $ 1,164       $ 1,195       $ 146       $ 14  

Adjusted other revenue (2)

     471       465       451       458       424       5       46  

Provision for credit losses

     147       287       903       276       263       (140     (116

Adjusted noninterest expense (3)

     905       935       920       880       838       (30     67  
  

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Core pre-tax income (loss) (4)

     $ 628       $ 306       $ (217     $ 466       $ 519       $ 322       $ 109  

Core OID

     (9     (9     (8     (8     (7     0       (2

Change in the fair value of equity securities (5)

     13       90       (185     29       (11     (76     25  

Repositioning and other (6)

     -       (50     -       -       -       50       -  
  

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Pre-tax income (loss) from continuing operations

     $ 632       $ 337       $ (411     $ 487       $ 500       $ 295       $ 132  
  

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(1) Represents a non-GAAP financial measure. Excludes Core OID. For more details refer to page 21.

(2) Represents a non-GAAP financial measure. Excludes equity fair value adjustments related to ASU 2016-01, which requires change in the fair value of equity securities to be recognized in current period net income as compared to periods prior to 1/1/2018 in which such adjustments were recognized through other comprehensive income, a component of equity. For more details refer to page 21.

(3) Represents a non-GAAP financial measure. Excludes Goodwill impairment at Ally Invest in 2Q 20. For more details refer to page 21.

(4) Core pre-tax income is a non-GAAP financial measure that adjusts pre-tax income from continuing operations by excluding (1) Core OID, (2) equity fair value adjustments related to ASU 2016-01, which requires change in the fair value of equity securities to be recognized in current period net income as compared to periods prior to 1/1/2018 in which such adjustments were recognized through other comprehensive income, a component of equity and (3) 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. 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.

(5) Change in fair value of equity securities impacts the Insurance and Corporate Finance segments. Excludes equity fair value adjustments related to ASU 2016-01, which requires change in the fair value of equity securities to be recognized in current period net income as compared to periods prior to 1/1/2018 in which such adjustments were recognized through other comprehensive income, a component of equity.

(6) Repositioning and other includes a $50 million Goodwill impairment at Ally Invest in 2Q 20

 

3Q 2020 Preliminary Results    5


ALLY FINANCIAL INC.

CONSOLIDATED PERIOD-END BALANCE SHEET

   LOGO

 

($ in millions)

                                                                                                                                                         
    QUARTERLY TRENDS   CHANGE VS.
    3Q 20   2Q 20   1Q 20   4Q 19   3Q 19   2Q 20   3Q 19

Assets

             

Cash and cash equivalents

             

Noninterest-bearing

    $ 719       $ 609       $ 453       $ 619       $ 723       $ 110       $ (4

Interest-bearing

    19,220       18,522       5,708       2,936       2,894       698       16,326  
 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total cash and cash equivalents

    19,939       19,131       6,161       3,555       3,617       808       16,322  

Investment securities (1)

    31,871       31,228       31,619       32,468       32,572       643       (701

Loans held-for-sale, net

    441       404       235       158       1,000       37       (559

Finance receivables and loans, net

    118,028       118,234       128,139       128,231       128,609       (206     (10,581

Allowance for loan losses

    (3,379     (3,354     (3,245     (1,263     (1,277     (25     (2,102
 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total finance receivables and loans, net

    114,649       114,880       124,894       126,968       127,332       (231     (12,683

Investment in operating leases, net

    9,454       9,088       9,064       8,864       8,653       366       801  

Premiums receivables and other insurance assets

    2,662       2,609       2,576       2,558       2,521       53       141  

Other assets

    6,254       6,721       7,978       6,073       5,790       (467     464  
 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total assets

    $  185,270       $ 184,061       $ 182,527       $ 180,644       $ 181,485       $ 1,209       $ 3,785  
 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Liabilities

             

Deposit liabilities

             

Noninterest-bearing

    $ 159       $ 134       $ 139       $ 119       $ 156       $ 25       $ 3  

Interest-bearing

    134,779       130,902       122,185       120,633       119,074       3,877       15,705  
 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total deposit liabilities

    134,938       131,036       122,324       120,752       119,230       3,902       15,708  

Short-term borrowings

    3,032       3,689       9,493       5,531       5,335       (657     (2,303

Long-term debt

    25,704       29,176       31,066       34,027       35,730       (3,472     (10,026

Interest payable

    748       697       710       641       894       51       (146

Unearned insurance premiums and service revenue

    3,401       3,338       3,305       3,305       3,246       63       155  

Accrued expense and other liabilities

    3,321       2,299       2,110       1,972       2,600       1,022       721  
 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total liabilities

    $ 171,144       $ 170,235       $ 169,008       $ 166,228       $ 167,035       $ 909       $ 4,109  

Equity

             

Common stock and paid-in capital (2)

    $ 18,324       $ 18,307       $ 18,278       $ 18,350       $ 18,628       $ 17       $ (304

Accumulated deficit

    (4,893     (5,296     (5,465     (4,057     (4,368     403       (525

Accumulated other comprehensive income / (loss)

    695       815       706       123       190       (120     505  
 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total equity

    14,126       13,826       13,519       14,416       14,450       300       (324
 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total liabilities and equity

    $ 185,270       $ 184,061       $ 182,527       $ 180,644       $ 181,485       $ 1,209       $ 3,785  
 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(1) Includes held-to-maturity securities.

(2) Includes Treasury stock.

 

3Q 2020 Preliminary Results    6


ALLY FINANCIAL INC.

CONSOLIDATED AVERAGE BALANCE SHEET (1)

   LOGO

 

($ in millions)

                                                                                                                                                         
     QUARTERLY TRENDS   CHANGE VS.
     3Q 20   2Q 20   1Q 20   4Q 19   3Q 19   2Q 20   3Q 19

Assets

              

Interest-bearing cash and cash equivalents

     $ 20,719       $ 12,496       $ 4,853       $ 3,811       $ 3,539       $ 8,223       $ 17,180  

Investment securities and other earning assets

     32,059       32,201       32,694       33,680       32,708       (142     (649

Loans held-for-sale, net

     472       337       150       405       745       135       (273

Total finance receivables and loans, net (2)

     117,546       122,428       126,646       127,184       128,799       (4,882     (11,253

Investment in operating leases, net

     9,317       9,068       9,078       8,749       8,525       249       792  
  

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total interest earning assets

     180,113       176,530       173,420       173,829       174,316       3,583       5,797  

Noninterest-bearing cash and cash equivalents

     536       432       418       297       391       104       145  

Other assets

     8,137       8,250       7,583       7,232       7,012       (113     1,125  

Allowance for loan losses

     (3,371     (3,227     (2,629     (1,277     (1,287     (144     (2,084
  

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total assets

     $  185,415       $ 181,985       $ 178,792       $ 180,081       $ 180,432       $ 3,430       $ 4,983  
  

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Liabilities

              

Interest-bearing deposit liabilities

              

Retail deposit liabilities

     $ 118,307       $ 111,152       $ 104,483       $ 102,362       $ 99,874       $ 7,154       $ 18,432  

Other interest-bearing deposit liabilities (3)

     14,500       15,726       16,593       17,553       17,615       (1,226     (3,115
  

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total Interest-bearing deposit liabilities

     132,807       126,878       121,076       119,915       117,489       5,929       15,318  

Short-term borrowings

     3,343       4,712       4,496       4,283       5,550       (1,369     (2,207

Long-term debt (4)

     28,512       30,554       33,122       34,954       36,395       (2,042     (7,883
  

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total interest-bearing liabilities (4)

     164,662       162,144       158,694       159,152       159,434       2,518       5,228  

Noninterest-bearing deposit liabilities

     157       136       141       142       149       21       8  

Other liabilities

     6,472       5,343       6,137       6,352       6,468       1,129       4  
  

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total liabilities

     $ 171,291       $ 167,623       $ 164,972       $ 165,646       $ 166,051       $ 3,668       $ 5,240  

Equity

              

Total equity

   $ 14,124     $ 14,362     $ 13,820     $ 14,435     $ 14,381     $ (238   $ (257
  

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total liabilities and equity

     $ 185,415       $ 181,985       $ 178,792       $ 180,081       $ 180,432       $ 3,430       $ 4,983  
  

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(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 (inclusive of mortgage escrow, and other deposits).

(4) Includes average Core OID balance of $1,041 million in 3Q 20, $1,050 million in 2Q 20, $1,059 million in 1Q 20, $1,067 million in 4Q 19, and $1,075 million in 3Q 19.

 

3Q 2020 Preliminary Results    7


ALLY FINANCIAL INC.

SEGMENT HIGHLIGHTS

   LOGO

 

($ in millions)

                                                                                                                                                         
     QUARTERLY TRENDS   CHANGE VS.
     3Q 20   2Q 20   1Q 20   4Q 19   3Q 19   2Q 20   3Q 19

Pre-tax Income / (Loss)

              

Automotive Finance

     $ 566       $ 329       $ (173     $ 401       $ 429       $ 237       $ 137  

Insurance

     78       128       (105     114       56       (50     22  
  

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Dealer Financial Services

     644       457       (278     515       485       187       159  

Corporate Finance

     60       32       (68     50       44       28       16  

Mortgage Finance

     26       8       12       2       11       18       15  

Corporate and Other (1)

     (98     (160     (77     (80     (40     62       (58
  

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Pre-tax income from continuing operations

     $ 632       $ 337       $ (411     $ 487       $ 500       $ 295       $ 132  

Core OID (2)

     9       9       8       8       7       0       2  

Change in the fair value of equity securities (3)

     (13     (90     185       (29     11       76       (25

Repositioning and other (4)

     -       50       -       -       -       (50     -  
  

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Core pre-tax income (loss) (5)

     $ 628       $ 306       $ (217     $ 466       $ 519       $ 322       $ 109  
  

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

(3) Change in fair value of equity securities impacts the Insurance and Corporate Finance segments. Excludes equity fair value adjustments related to ASU 2016-01, which requires change in the fair value of equity securities to be recognized in current period net income as compared to periods prior to 1/1/2018 in which such adjustments were recognized through other comprehensive income, a component of equity.

(4) Repositioning and other includes a $50 million Goodwill impairment at Ally Invest in 2Q 20

(5) Core pre-tax income is a non-GAAP financial measure that adjusts pre-tax income from continuing operations by excluding (1) Core OID, (2) equity fair value adjustments related to ASU 2016-01, which requires change in the fair value of equity securities to be recognized in current period net income as compared to periods prior to 1/1/2018 in which such adjustments were recognized through other comprehensive income, a component of equity and (3) 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. 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.

 

3Q 2020 Preliminary Results    8


ALLY FINANCIAL INC.

AUTOMOTIVE FINANCE - CONDENSED FINANCIAL STATEMENTS

   LOGO

 

($ in millions)

                                                                                                                                                         
    QUARTERLY TRENDS   CHANGE VS.

Income Statement

  3Q 20   2Q 20   1Q 20   4Q 19   3Q 19   2Q 20   3Q 19

Net financing revenue

             

Consumer

    $ 1,253       $ 1,215       $ 1,202       $ 1,234       $ 1,227       $ 38       $ 26  

Commercial

    153       210       307       342       385       (57     (232

Loans held-for-sale

    -       -       -       (1     -       -       -  

Operating leases

    360       343       367       378       368       17       (8

Other interest income

    1       2       1       1       3       (1     (2
 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total financing revenue and other interest income

    1,767       1,770       1,877       1,954       1,983       (3     (216

Interest expense

    490       529       589       631       671       (39     (181

Depreciation expense on operating lease assets:

             

Depreciation expense on operating lease assets (ex. remarketing)

    245       240       251       265       262       5       (17

Remarketing gains / (losses)

    71       (11     2       3       28       82       42  
 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total depreciation expense on operating lease assets

    175       252       248       262       234       (77     (59
 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net financing revenue

    1,102       989       1,040       1,061       1,078       113       24  

Other revenue

             

Servicing fees

    2       2       1       2       3       -       (1

Other income

    58       39       46       58       57       19       1  
 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total other revenue

    61       40       47       61       59       21       2  
 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total net revenue

    1,163       1,029       1,087       1,122       1,137       134       26  

Provision for credit losses

    128       256       766       255       265       (128     (137

Noninterest expense

             

Compensation and benefits

    134       133       148       133       128       1       6  

Other operating expenses

    335       311       346       333       315       24       20  
 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total noninterest expense

    469       444       494       466       443       25       26  
 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Pre-tax Income / (loss)

    $ 566       $ 329       $ (173     $ 401       $ 429       $ 237       $ 137  
 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Memo: Net lease revenue

             

Operating lease revenue

    $ 360       $ 343       $ 367       $ 378       $ 368       $ 17       $ (8

Depreciation expense on operating lease assets (ex. remarketing)

    245       240       251       265       262       5       (17

Remarketing gains (losses), net of repo valuation

    71       (11     2       3       28       82       42  
 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total depreciation expense on operating lease assets

    175       252       248       262       234       (77     (59
 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net lease revenue

    $ 185       $ 91       $ 119       $ 116       $ 134       $ 94       $ 51  
 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Balance Sheet (Period-End)

             

Cash, trading and investment securities

    $ 23       $ 23       $ 23       $ 23       $ 23       $ -       $ -  

Consumer loans

    73,484       72,378       72,463       72,254       72,894       1,106       590  

Commercial loans

    21,854       21,708       31,390       32,490       33,330       146       (11,476

Allowance for loan losses

    (3,092     (3,084     (2,968     (1,130     (1,156     (8     (1,936
 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total finance receivables and loans, net

    92,246       91,002       100,885       103,614       105,068       1,244       (12,822

Investment in operating leases, net

    9,454       9,088       9,064       8,864       8,653       366       801  

Other assets

    1,643       1,903       1,582       1,362       1,352       (260     291  
 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total assets

    $  103,366       $ 102,016       $ 111,554       $ 113,863       $ 115,096       $ 1,350       $ (11,730
 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

3Q 2020 Preliminary Results    9


ALLY FINANCIAL INC.

AUTOMOTIVE FINANCE - KEY STATISTICS

   LOGO

 

                                                                                                                                                         
    QUARTERLY TRENDS   CHANGE VS.
    3Q 20   2Q 20   1Q 20   4Q 19   3Q 19   2Q 20   3Q 19

U.S. Consumer Originations (1) ($ in billions)

             

Retail standard - new vehicle GM

    $ 1.0       $ 0.7       $ 1.0       $ 1.2       $ 1.3       $ 0.3       $ (0.3

Retail standard - new vehicle Chrysler

    1.0       0.7       0.8       0.8       0.9       0.3       0.1  

Retail standard - new vehicle Growth

    1.0       0.6       1.1       1.0       1.2       0.4       (0.2

Used vehicle

    5.4       4.3       5.0       3.9       4.6       1.1       0.8  

Lease

    1.4       0.9       1.2       1.2       1.3       0.5       0.1  

Retail subvented

    0.0       0.0       0.0       0.0       0.1       0.0       (0.0
 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total originations

    $ 9.8       $ 7.2       $ 9.1       $ 8.1       $ 9.3       $ 2.6       $ 0.5  

U.S. Consumer Originations - FICO Score

             

Super Prime (740+)

    $ 2.3       $ 1.6       $ 2.1       $ 2.1       $ 2.2       $ 0.7       $ 0.1  

Prime (660-739)

    3.9       2.9       3.4       2.9       3.4       1.0       0.4  

Prime/Near (620-659)

    2.0       1.6       1.9       1.6       2.0       0.5       0.1  

Non Prime (540-619)

    0.8       0.6       0.9       0.8       0.9       0.2       (0.1

Sub Prime (0-539)

    0.2       0.1       0.1       0.1       0.1       0.0       0.1  

Commercial Services Group (2)

    0.5       0.4       0.6       0.7       0.7       0.2       (0.1
 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total originations

    $ 9.8       $ 7.2       $ 9.1       $ 8.1       $ 9.3       $ 2.6       $ 0.5  

U.S. Market

             

Light vehicle sales (SAAR - units in millions)

    15.6       11.6       15.4       17.3       17.2       4.0       (1.6

Light vehicle sales (quarterly - units in millions)

    3.9       3.0       3.5       4.3       4.3       0.9       (0.4

GM market share

    16.9%       16.5%       17.7%       17.3%       17.2%      

Chrysler market share

    13.0%       12.4%       12.8%       12.7%       13.1%      

Ally U.S. Consumer Penetration

             

GM

    4.4%       4.0%       6.2%       5.6%       5.7%      

Chrysler

    12.8%       10.4%       13.2%       12.5%       12.1%      

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

             

Floorplan outstandings

    $ 16.0       $ 15.8       $ 26.1       $ 27.0       $ 27.7       $ 0.2       $ (11.7

Dealer loans and other

    5.8       5.9       5.3       5.5       5.6       (0.0     0.2  
 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total Commercial outstandings

    $ 21.9       $ 21.7       $ 31.4       $ 32.5       $ 33.3       $ 0.1       $ (11.5

U.S. Off-Lease Remarketing

             

Off-lease vehicles terminated - on-balance sheet (# in units)

    28,917       26,785       20,419       27,832       29,985       2,132       (1,068

Average gain / (loss) per vehicle

    $ 2,437       $ (421     $ 121       $ 99       $ 944       $ 2,858       $ 1,494  

Total gain / (loss) ($ in millions)

    $ 71       $ (11     $ 2       $ 3       $ 28       $ 82       $ 42  

 

(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) Commercial Services Group (CSG) are business customers. Average annualized credit losses of 40-45 bps on CSG loans from 2016 through 3Q20

 

3Q 2020 Preliminary Results    10


ALLY FINANCIAL INC.

INSURANCE - CONDENSED FINANCIAL STATEMENTS AND KEY STATISTICS

   LOGO

 

($ in millions)

                                                                                                                                                         
    QUARTERLY TRENDS   CHANGE VS.

Income Statement (GAAP View)

  3Q 20   2Q 20   1Q 20   4Q 19   3Q 19   2Q 20   3Q 19

Net financing revenue

             

Interest and dividends on investment securities

    $ 25       $ 27       $ 29       $ 29       $ 28       $ (2     $ (3

Interest bearing cash

    4       4       5       5       6       -       (2
 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total financing revenue and other interest revenue

    29       31       34       34       34       (2     (5

Interest expense

    21       19       20       21       20       2       1  
 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net financing revenue

    8       12       14       13       14       (4     (6

Other revenue

             

Insurance premiums and service revenue earned

    276       263       277       285       280       13       (4

Other gain / (loss) on investments, net

    59       172       (142     51       6       (113     53  

Other income, net of losses

    3       3       2       3       3       -       -  
 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total other revenue

    338       438       137       339       289       (100     49  
 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total net revenue

    346       450       151       352       303       (104     43  

Noninterest expense

             

Compensation and benefits expense

    21       20       21       20       19       1       2  

Insurance losses and loss adjustment expenses

    85       142       74       61       74       (57     11  

Other operating expenses

    162       160       161       157       154       2       8  
 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total noninterest expense

    268       322       256       238       247       (54     21  
 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Pre-tax Income / (Loss)

    $ 78       $ 128       $ (105     $ 114       $ 56       $ (50     $ 22  
 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Memo: Income Statement (Managerial View)

             

Insurance premiums and other income

             

Insurance premiums and service revenue earned

    $ 276       $ 263       $ 277       $ 285       $ 280       $ 13       $ (4

Investment income (adjusted) (1)

    54       95       54       36       30       (41     25  

Other income

    3       3       2       3       3       -       -  
 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total insurance premiums and other income

    333       361       333       324       313       (28     21  

Expense

             

Insurance losses and loss adjustment expenses

    85       142       74       61       74       (57     11  

Acquisition and underwriting expenses

             

Compensation and benefit expense

    21       20       21       20       19       1       2  

Insurance commission expense

    130       127       126       123       120       3       10  

Other expense

    32       33       35       34       34       (1     (2
 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total acquisition and underwriting expense

    183       180       182       177       173       3       10  
 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total expense

    268       322       256       238       247       (54     21  
 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Core pre-tax income / (loss) (1)

    65       39       77       86       66       26       (0

Change in the fair value of equity securities (1)

    13       89       (182     28       (10     (76     22  
 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income / (Loss) before income tax expense

    $ 78       $ 128       $ (105     $ 114       $ 56       $ (50     $ 22  
 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Balance Sheet (Period-End)

             

Cash, trading and investment securities

    $ 6,006       $ 5,920       $ 5,193       $ 5,742       $ 5,713       $ 86       $ 293  

Premiums receivable and other insurance assets

    2,674       2,621       2,594       2,576       2,539       53       135  

Other assets

    264       199       633       229       226       65       38  
 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total assets

    $ 8,944       $ 8,740       $ 8,420       $ 8,547       $ 8,478       $ 204       $ 466  
 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Key Statistics

             

Total written premiums and revenue (2)

    $ 333       $ 267       $ 317       $ 335       $ 357       $ 66       $ (24

Loss ratio (3)

    30.3%       53.4%       26.5%       21.2%       26.1%      

Underwriting expense ratio (4)

    65.8%       67.4%       65.1%       61.5%       61.4%      
 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

   

Combined ratio

    96.1%       120.9%       91.6%       82.7%       87.5%      

 

(1) Represents a non-GAAP financial measure. Excludes equity fair value adjustments related to ASU 2016-01, which requires change in the fair value of equity securities to be recognized in current period net income as compared to periods prior to 1/1/2018 in which such adjustments were recognized through other comprehensive income, a component of equity.

(2) Written premiums are net of ceded premium for reinsurance.

(3) 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.

(4) 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.

 

3Q 2020 Preliminary Results    11


ALLY FINANCIAL INC.

MORTGAGE FINANCE - CONDENSED FINANCIAL STATEMENTS

   LOGO

 

($ in millions)

                                                                                                                                                         
    QUARTERLY TRENDS   CHANGE VS.

Income Statement

  3Q 20   2Q 20   1Q 20   4Q 19   3Q 19   2Q 20   3Q 19

Net financing revenue

             

Total financing revenue and other interest income

    $ 121       $ 127       $ 138       $ 137       $ 144       $ (6     $ (23

Interest expense

    91       97       100       101       105       (6     (14
 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net financing revenue

    30       30       38       36       39       -       (9

Gain on mortgage loans, net

    34       17       9       6       10       17       24  

Other income, net of losses

    2       2       1       -       -       -       2  
 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total other revenue

    36       19       10       6       10       17       26  
 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total net revenue

    66       49       48       42       49       17       17  
 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Provision for loan losses

    -       3       1       3       -       (3     -  

Noninterest expense

             

Compensation and benefits expense

    6       5       6       7       7       1       (1

Other operating expense

    34       33       29       30       31       1       3  
 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total noninterest expense

    40       38       35       37       38       2       2  
 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Pre-tax Income

    $ 26       $ 8       $ 12       $ 2       $ 11       $ 18       $ 15  
 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Balance Sheet (Period-End)

             

Finance receivables and loans, net:

             

Consumer loans

    $ 15,168       $ 16,429       $ 15,949       $ 16,181       $ 15,782       $  (1,261     $ (614

Allowance for loan losses

    (20     (21     (18     (19     (17     1       (3
 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total finance receivables and loans, net

    15,148       16,408       15,931       16,162       15,765       (1,260     (617

Other assets

    355       261       204       117       818       94       (463
 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total assets

    $  15,503       $ 16,669       $ 16,135       $ 16,279       $ 16,583       $  (1,166     $ (1,080
 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

3Q 2020 Preliminary Results    12


ALLY FINANCIAL INC.

CORPORATE FINANCE - CONDENSED FINANCIAL STATEMENTS

   LOGO

 

($ in millions)

                                                                                                                                                         
    QUARTERLY TRENDS   CHANGE VS.

Income Statement

  3Q 20   2Q 20   1Q 20   4Q 19   3Q 19   2Q 20   3Q 19

Net financing revenue

             

Total financing revenue and other interest income

    $ 84       $ 92       $ 95       $ 93       $ 93       $ (8     $ (9

Interest expense

    9       15       27       29       33       (6     (24
 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net financing revenue

    75       77       68       64       60       (2     15  

Total other revenue (adjusted) (1)

    8       5       17       15       10       3       (2
 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total net revenue

    83       82       85       79       70       1       13  

Provision for loan losses

    1       25       114       7       3       (24     (2

Noninterest expense

             

Compensation and benefits expense

    13       14       21       13       13       (1     -  

Other operating expense

    10       12       14       9       9       (2     1  
 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total noninterest expense

    23       26       35       22       22       (3     1  

Core pre-tax income (1)

    59       31       (64     50       45       28       14  
 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Change in the fair value of equity securities (2)

    1       1       (4     -       (1     0       2  
 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Pre-tax Income / (loss)

    $ 60       $ 32       $ (68     $ 50       $ 44       $ 28       $ 16  
 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Balance Sheet (Period-End)

             

Non-marketable equity securities

    $ 6       $ 5       $ 4       $ 8       $ 8       $ 1       $ (2

Loans held for sale

    207       265       133       100       240       (58     (33

Commercial loans

    5,883       6,031       6,549       5,688       5,033       (148     850  

Allowance for loan losses

    (180     (178     (191     (77     (75     (2     (105
 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total finance receivables and loans, net

    5,703       5,853       6,358       5,611       4,958       (150     745  

Other assets

    79       83       77       68       69       (4     10  
 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total assets

    $ 5,995       $ 6,206       $ 6,572       $ 5,787       $ 5,275       $ (211     $ 720  
 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(1) Represents a non-GAAP financial measure. Excludes equity fair value adjustments related to ASU 2016-01, which requires change in the fair value of equity securities to be recognized in current period net income as compared to periods prior to 1/1/2018 in which such adjustments were recognized through other comprehensive income, a component of equity. See page 21 for more details.

(2) Excludes equity fair value adjustments related to ASU 2016-01, which requires change in the fair value of equity securities to be recognized in current period net income as compared to periods prior to 1/1/2018 in which such adjustments were recognized through other comprehensive income, a component of equity.

 

3Q 2020 Preliminary Results    13


ALLY FINANCIAL INC.

CORPORATE AND OTHER - CONDENSED FINANCIAL STATEMENTS

   LOGO

 

($ in millions)

                                                                                                                                                         
     QUARTERLY TRENDS   CHANGE VS.

Income Statement

   3Q 20   2Q 20   1Q 20   4Q 19   3Q 19   2Q 20   3Q 19

Net financing revenue

              

Total financing revenue and other interest income

     $ 144       $ 158       $ 207       $ 224       $ 237       $ (14     $ (93

Interest expense

              

Core original issue discount amortization

     9       9       8       8       7       0       2  

Other interest expense

     150       203       213       234       233       (53     (83
  

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total interest expense

     159       212       221       242       240       (53     (81
  

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net financing (loss) / revenue

     (15     (54     (14     (18     (3     39       (12

Other revenue

              

Loss on extinguishment of debt

     (49     -       -       -       -       (49     (49

Other gain on investments, net

     5       15       67       18       22       (10     (17

Other income, net of losses (1)

     84       37       (8     48       24       47       60  
  

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total other revenue

     40       52       59       66       46       (12     (6
  

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total net revenue

     25       (2     45       48       43       27       (18

Provision for loan losses

     18       3       22       11       (5     15       23  

Noninterest expense

              

Compensation and benefits expense

     168       162       164       139       129       6       39  

Goodwill impairment

     -       50       -       -       -       (50     -  

Other operating expense (2)

     (63     (57     (64     (22     (41     (6     (22
  

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total noninterest expense

     105       155       100       117       88       (50     17  
  

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Pre-tax (loss) income

     $ (98     $ (160     $ (77     $ (80     $ (40     $ 62       $ (58
  

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Balance Sheet (Period-End)

              

Cash, trading and investment securities

     $  45,775       $ 44,411       $ 32,560       $ 30,250       $ 30,445       $ 1,364       $ 15,330  

Loans held-for-sale

     78       48       34       30       67       30       11  

Consumer loans

     1,508       1,558       1,654       1,489       1,405       (50     103  

Commercial loans (3)

     131       130       134       129       165       1       (34

Allowance for loan losses

     (87     (71     (68     (37     (29     (16     (58
  

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total finance receivables and loans, net

     1,552       1,617       1,720       1,581       1,541       (65     11  

Other assets

     4,057       4,354       5,532       4,307       4,000       (297     57  
  

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total assets

     $ 51,462       $ 50,430       $ 39,846       $ 36,168       $ 36,053       $ 1,032       $ 15,409  
  

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Core OID Amortization Schedule (4)

   2020   2021   2022   2023   2024 & After        

Remaining Core OID amortization expense

     $ 9       $ 41       $ 47       $ 54       Avg = $52/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 $234 million for 3Q20, $242 million for 2Q20, $256 million for 1Q20, $225 million for 4Q19 and $225 million for 3Q19. The receiving business segment records the allocation of corporate overhead expense within other operating expenses.

(3) Includes intercompany.

(4) Represents a non-GAAP financial measure. For more details refer to page 21.

 

3Q 2020 Preliminary Results    14


ALLY FINANCIAL INC.

CREDIT RELATED INFORMATION

   LOGO

 

($ in millions)

                                                                                                                                                         
     QUARTERLY TRENDS    CHANGE VS.

Asset Quality - Consolidated (1)

   3Q 20    2Q 20    1Q 20    4Q 19    3Q 19    2Q 20   3Q 19

Ending Loan Balance

     $  118,020        $  118,226        $  128,129        $ 128,220        $  128,609        $  (206     $  (10,589

30+ Accruing DPD

     $ 1,840        $ 1,695        $ 2,416        $ 2,709        $ 2,561        $ 145       $ (721

30+ Accruing DPD %

     1.56%        1.43%        1.89%        2.11%        1.99%       

Non-Performing Loans (NPLs)

     $ 1,493        $ 1,532        $ 1,396        $ 1,036        $ 929        $ (39     $ 564  

Net Charge-Offs (NCOs)

     $ 122        $ 178        $ 266        $ 290        $ 267        $ (56     $ (145

Net Charge-Off Rate (2)

     0.41%        0.58%        0.84%        0.91%        0.83%       

Provision for credit losses

     $ 147        $ 287        $ 903        $ 276        $ 263        $  (140     $ (116

Allowance for loan losses (ALLL)

     $ 3,379        $ 3,354        $ 3,245        $ 1,263        $ 1,277        $ 25       $ 2,102  

ALLL as % of Loans (3)(4)

     2.87%        2.85%        2.54%        0.99%        0.99%       

ALLL as % of NPLs (3)

     226%        219%        232%        122%        137%       

ALLL as % of NCOs (3)

     691%        471%        305%        109%        119%       

US Auto Delinquencies-HFI Retail Contract $‘s (5)

                   

Delinquent contract $

     $ 1,658        $ 1,599        $ 2,322        $ 2,616        $ 2,428        $ 59       $ (770

% of retail contract $ outstanding

     2.25%        2.20%        3.19%        3.61%        3.32%       

US Auto Annualized Net Charge - Offs-HFI Retail Contract $‘s

                   

Net Charge-offs

     $ 117        $ 137        $ 262        $ 271        $ 253        $ (20     $ (136

% of avg. HFI assets (2)

     0.64%        0.76%        1.44%        1.49%        1.38%       

US Auto Annualized Net Charge- Offs-HFI Commercial Contract $‘s

                   

Net Charge-offs

     $ 4        $ 1        $ 2        $ 10        $ 1        $ 3       $ 3  

% of avg. HFI assets (2)

     0.07%        0.02%        0.03%        0.12%        0.02%       

 

(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 receivables and loans excluding loans measured at fair value, conditional repurchase loans and loans held-for-sale during the year for each loan category.

(3) ALLL coverage ratios are based on the allowance for loan losses related to loans held-for-investment excluding those loans held at fair value as a percentage of the unpaid principal balance, net of premiums and discounts.

(4) Excludes $277 million of fair value adjustment for loans in hedge accounting relationships in 3Q20, $334 million in 2Q20, $370 million in 1Q20, $135 million in 4Q19 and $176 million in 3Q19.

(5) Dollar amount of accruing contracts greater than 30 days past due

 

3Q 2020 Preliminary Results    15


ALLY FINANCIAL INC.

CREDIT RELATED INFORMATION, CONTINUED

   LOGO

 

($ in millions)

CONTINUING OPERATIONS

                                                                                                                                                         

Automotive Finance (1)

   QUARTERLY TRENDS    CHANGE VS.
Consumer    3Q 20    2Q 20    1Q 20    4Q 19    3Q 19    2Q 20   3Q 19

Allowance for loan losses

     $ 2,982        $ 2,963        $ 2,833        $ 1,075        $ 1,090        $ 19       $ 1,892  

Total consumer loans (2)

     $ 73,761        $ 72,712        $ 72,832        $ 72,390        $ 73,071        $ 1,049       $ 690  

Coverage ratio (3)

     4.06%        4.09%        3.91%        1.49%        1.50%       

Commercial

                   

Allowance for loan losses

     $ 110        $ 121        $ 135        $ 55        $ 66        $ (11     $ 44  

Total commercial loans

     $ 21,854        $ 21,708        $ 31,390        $ 32,490        $ 33,330        $ 146       $ (11,476

Coverage ratio

     0.51%        0.56%        0.43%        0.17%        0.20%       

Mortgage (1)

                   

Consumer

                   

Mortgage Finance

                   

Allowance for loan losses

     $ 20        $ 21        $ 18        $ 19        $ 17        $ (1)       $ 3  

Total consumer loans

     $ 15,168        $ 16,429        $ 15,949        $ 16,181        $ 15,782        $ (1,261     $ (614)  

Coverage ratio

     0.13%        0.13%        0.11%        0.12%        0.11%       

Mortgage-Legacy

                   

Allowance for loan losses

     $ 19        $ 21        $ 21        $ 27        $ 27        $ (2)       $ (8)  

Total consumer loans

     $ 904        $ 984        $ 1,061        $ 1,141        $ 1,228        $ (80)       $ (324)  

Coverage ratio

     2.09%        2.08%        1.99%        2.35%        2.23%       

Total Mortgage

                   

Allowance for loan losses

     $ 39        $ 42        $ 39        $ 46        $ 44        $ (3     $ (5

Total consumer loans

     $ 16,072        $ 17,413        $ 17,010        $ 17,322        $ 17,010        $ (1,341     $ (938

Coverage ratio

     0.24%        0.24%        0.23%        0.27%        0.26%       

Consumer Other (1)(4)

                   

Allowance for loan losses

     $ 67        $ 49        $ 45        $ 9        $ -        $ 18       $ 67  

Total consumer loans

     $ 319        $ 232        $ 214        $ 201        $ -        $ 87       $ 319  

Coverage ratio

     20.93%        21.06%        21.23%        4.65%        -%       

Corporate Finance (1)

                   

Allowance for loan losses

     $ 180        $ 178        $ 191        $ 77        $ 75        $ 2       $ 105  

Total commercial loans

     $ 5,883        $ 6,031        $ 6,549        $ 5,688        $ 5,033        $ (148     $ 850  

Coverage ratio

     3.05%        2.95%        2.92%        1.35%        1.50%       

Corporate and Other (1)

                   

Allowance for loan losses

     $ 1        $ 1        $ 2        $ 1        $ 2        $ 0       $ (1

Total commercial loans

     $ 131        $ 130        $ 134        $ 129        $ 165        $ 1       $ (34

Coverage ratio

     1.13%        1.13%        1.36%        0.69%        0.93%       

 

(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 chargeoffs. Excludes loans held at fair value.

(2) Includes $277 million of fair value adjustment for loans in hedge accounting relationships in 3Q20, $334 million in 2Q20, $370 million in 1Q20, $135 million in 4Q19 and $176 million in 3Q19.

(3) Excludes $277 million of fair value adjustment for loans in hedge accounting relationships in 3Q20, $334 million in 2Q20, $370 million in 1Q20, $135 million in 4Q19 and $176 million in 3Q19.

(4) Represents Health Credit Services (HCS) which Ally acquired in 4Q19 (now Ally Lending).

 

3Q 2020 Preliminary Results    16


ALLY FINANCIAL INC.

CAPITAL

   LOGO

 

($ in billions)

                                                                                                                                                         
     QUARTERLY TRENDS   CHANGE VS.

Capital

   3Q 20   2Q 20   1Q 20   4Q 19   3Q 19   2Q 20    3Q 19

Risk-weighted assets

     $ 137.6       $ 137.0       $ 146.1       $ 145.1       $ 146.1       $ 0.6        $ (8.5

Common Equity Tier 1 (CET1) capital ratio

     10.4%       10.1%       9.3%       9.5%       9.6%       

Tier 1 capital ratio

     12.1%       11.9%       10.9%       11.2%       11.2%       

Total capital ratio

     14.1%       13.8%       12.8%       12.8%       12.8%       

Tangible common equity / Tangible assets (1)(2)

     7.4%       7.3%       7.2%       7.8%       7.8%       

Tangible common equity / Risk-weighted assets (1)

     10.0%       9.8%       9.0%       9.6%       9.7%       

Shareholders’ equity

     $ 14.1       $ 13.8       $ 13.5       $ 14.4       $ 14.5       $ 0.3        $ (0.4

add: CECL phase-in adjustment

     1.2       1.2       $ 1.2       -       -       0.0        -  

less:   Certain AOCI items and other adjustments

     (1.1     (1.2     (1.1     (0.6     (0.5     0.1        (0.6
  

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

  

 

 

 

Common Equity Tier 1 capital

     $ 14.3       $ 13.8       $ 13.5       $ 13.8       $ 14.0       $ 0.5        $ 0.3  
  

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

  

 

 

 

Common Equity Tier 1 capital

     $ 14.3       $ 13.8       $ 13.5       $ 13.8       $ 14.0       $ 0.5        $ 0.3  

add: Trust preferred securities

     2.5       2.5       2.5       2.5       2.5       0.0        0.0  

less:   Other adjustments

     (0.1     (0.1     (0.1     (0.1     (0.1     0.0        0.0  
  

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

  

 

 

 

Tier 1 capital

     $ 16.7       $ 16.2       $ 16.0       $ 16.3       $ 16.4       $ 0.5        $ 0.3  
  

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

  

 

 

 

Tier 1 capital

     $ 16.7       $ 16.2       $ 16.0       $ 16.3       $ 16.4       $ 0.5        $ 0.3  

add: Qualifying subordinated debt

     1.0       1.0       1.0       1.0       1.0       0.0        0.0  

add: Allowance for loan and lease losses includible in Tier 2 capital and other adjustments

     1.6       1.6       1.7       1.2       1.2       0.0        0.4  
  

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

  

 

 

 

Total capital

     $ 19.3       $ 18.9       $ 18.6       $ 18.5       $ 18.6       $ 0.4        $ 0.7  
  

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

  

 

 

 

Total shareholders’ equity

     $ 14.1       $ 13.8       $ 13.5       $ 14.4       $ 14.5       $ 0.3        $ (0.4

Goodwill and intangible assets, net of deferred tax liabilities

     (0.4     (0.4     (0.4     (0.5     (0.3     0.0        (0.1
  

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

  

 

 

 

Tangible common equity (1)

     $ 13.7       $ 13.4       $ 13.1       $ 14.0       $ 14.2       $ 0.3        $ (0.5
  

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

  

 

 

 

Total assets

     $ 185.3       $ 184.1       $ 182.5       $ 180.6       $ 181.5       $ 1.2        $ 3.8  

less:   Goodwill and intangible assets, net of deferred tax liabilities

     (0.4     (0.4     (0.4     (0.5     (0.3     0.0        (0.1
  

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

  

 

 

 

Tangible assets (2)

     $ 184.9       $ 183.7       $ 182.1       $ 180.2       $ 181.2       $ 1.2        $ 3.7  
  

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

  

 

 

 

 

Note: Numbers may not foot due to rounding

(1) Represents a non-GAAP financial measure. 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 tax-effected Core OID balance and net deferred tax asset.

(2) Represents a non-GAAP financial measure. Ally defines tangible assets as total assets less goodwill and intangible assets, net of deferred tax liabilities.

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 funal 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 extends through December 31, 2021. Beginning on January 1, 2022, we will be 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 plan to phase in the regulatory capital impacts of CECL based on this five-year transition period.

 

3Q 2020 Preliminary Results    17


ALLY FINANCIAL INC.

LIQUIDITY

   LOGO

 

($ in billions)

                                                                                                                                                         
     QUARTERLY TRENDS    CHANGE VS.

Consolidated Available Liquidity

   3Q 20    2Q 20    1Q 20    4Q 19    3Q 19    2Q 20   3Q 19

Liquid cash and cash equivalents (1)

     $ 19.3        $ 18.6        $ 5.7        $ 3.1        $ 3.2        $ 0.7       $ 16.1  

Highly liquid securities (2)

     23.5        23.4        24.0        24.7        23.5        0.1       0.0  

Current committed unused capacity

     1.4        1.6        0.4        2.1        2.0        (0.2     (0.6
  

 

 

 

  

 

 

 

  

 

 

 

  

 

 

 

  

 

 

 

  

 

 

 

 

 

 

 

Total current available liquidity

     $ 44.2        $ 43.5        $ 30.1        $ 29.9        $ 28.6        $ 0.7       $ 15.6  
  

 

 

 

  

 

 

 

  

 

 

 

  

 

 

 

  

 

 

 

  

 

 

 

 

 

 

 

Unsecured Long-Term Debt Maturity Profile

   2020    2021    2022    2023    2024    2025 & After    

Consolidated remaining maturities

     $ -        $ 0.6        $ 1.1        $ 1.6        $ 1.5        $ 6.6    

 

(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 debt and Agency MBS

 

3Q 2020 Preliminary Results    18


ALLY FINANCIAL INC.

NET INTEREST MARGIN AND DEPOSITS

   LOGO

 

($ in millions)

                                                                                                                                                         
     QUARTERLY TRENDS    CHANGE VS.

Average Balance Details

   3Q 20    2Q 20    1Q 20    4Q 19    3Q 19    2Q 20    3Q 19

Retail Auto Loans

     $ 72,999        $ 72,262        $ 72,550        $ 72,626        $ 73,162        $ 737        $ (163)  

Auto Lease (net of dep)

     9,317        9,068        9,078        8,749        8,525        249        792  

Commercial Auto

     21,265        26,106        30,472        31,921        33,273        (4,841)        (12,008)  

Commercial Finance

     6,188        6,580        6,088        5,526        5,166        (392)        1,022  

Mortgage

     17,096        17,422        17,296        17,140        17,723        (326)        (627)  

Cash, Securities and Other (1)

     53,248        45,092        37,936        37,867        36,467        8,156        16,781  
  

 

 

 

  

 

 

 

  

 

 

 

  

 

 

 

  

 

 

 

  

 

 

 

  

 

 

 

Total Earning Assets

     $  180,113        $ 176,530        $ 173,420        $ 173,829        $ 174,316        $ 3,583        $ 5,797  

Interest Revenue

     1,970        1,926        2,103        2,180        2,257        44        (287)  

Unsecured Debt (ex. Core OID balance) (2)(5)

     $ 12,315        $ 11,627        $ 12,182        $ 12,741        $ 13,164        $ 688        $ (849)  

Secured Debt

     6,154        8,122        9,193        9,563        9,860        (1,968)        (3,706)  

Deposits (3)

     132,964        127,014        121,217        120,057        117,638        5,950        15,326  

Other Borrowings (4)

     14,427        16,567        17,302        18,000        19,996        (2,140)        (5,568)  
  

 

 

 

  

 

 

 

  

 

 

 

  

 

 

 

  

 

 

 

  

 

 

 

  

 

 

 

Total Funding Sources (ex. Core OID balance) (2)

     $ 165,860        $ 163,330        $ 159,894        $ 160,361        $ 160,658        $ 2,529        $ 5,201  

Interest Expense (ex. Core OID) (2)

     761        863        949        1,016        1,062        (102)        (301)  

Net Financing Revenue (ex. Core OID) (2)

     $ 1,209        $ 1,063        $ 1,154        $ 1,164        $ 1,195        $ 146        $ 14  

Net Interest Margin (yield details)

                    

Retail Auto Loan

     6.56%        6.48%        6.54%        6.68%        6.66%        0.08%        (0.10)%  

memo: retail auto hedge impact

     (0.27)%        (0.28)%        (0.12)%        (0.07)%        0.01%        0.01%        (0.28)%  

Auto Lease (net of dep)

     7.89%        4.10%        5.22%        5.19%        6.24%        3.79%        1.65%  

Commercial Auto

     3.30%        3.55%        4.11%        4.25%        4.59%        (0.25)%        (1.29)%  

Corporate Finance

     5.40%        5.64%        6.27%        6.65%        7.14%        (0.24)%        (1.74)%  

Mortgage

     3.00%        3.15%        3.45%        3.46%        3.51%        (0.15)%        (0.51)%  

Cash, Securities and Other (1)

     1.43%        1.87%        2.65%        2.71%        2.82%        (0.44)%        (1.39)%  
  

 

 

 

  

 

 

 

  

 

 

 

  

 

 

 

  

 

 

 

  

 

 

 

  

 

 

 

Total Earning Assets

     4.35%        4.39%        4.88%        4.97%        5.14%        (0.04)%        (0.79)%  

Unsecured Debt (ex. Core OID & Core OID balance) (2)(5)

     5.74%        6.11%        6.32%        6.20%        6.15%        (0.37)%        (0.41)%  

Secured Debt

     2.94%        2.64%        2.82%        2.92%        3.02%        0.30%        (0.08)%  

Deposits (3)

     1.35%        1.72%        1.97%        2.11%        2.22%        (0.37)%        (0.87)%  

Other Borrowings (4)

     2.36%        2.25%        2.34%        2.42%        2.48%        0.11%        (0.12)%  
  

 

 

 

  

 

 

 

  

 

 

 

  

 

 

 

  

 

 

 

  

 

 

 

  

 

 

 

Total Funding Sources (ex. Core OID & Core OID balance) (2)

     1.82%        2.13%        2.39%        2.51%        2.62%        (0.31)%        (0.80)%  

NIM (as reported)

     2.65%        2.40%        2.66%        2.64%        2.70%        0.25%        (0.05)%  

NIM (ex. Core OID & Core OID balance) (2)

     2.67%        2.42%        2.68%        2.66%        2.72%        0.25%        (0.05)%  

Ally Bank Deposits

                    

Key Deposit Statistics

                    

Average retail CD maturity (months)

     19.6        19.6        19.9        20.1        20.3        (0.1)        (0.8)  

Average retail deposit rate

     1.26%        1.64%        1.88%        2.02%        2.14%        

End of Period Deposit Levels

                    

Retail

     $ 120,789        $ 115,813        $ 106,068        $ 103,734        $ 101,295        $ 4,976        $ 19,494  

Brokered & other (3)

     14,149        15,223        16,256        17,018        17,935        (1,074)        (3,786)  
  

 

 

 

  

 

 

 

  

 

 

 

  

 

 

 

  

 

 

 

  

 

 

 

  

 

 

 

Total deposits

     $ 134,938        $ 131,036        $ 122,324        $ 120,752        $ 119,230        $ 3,902        $ 15,708  
  

 

 

 

  

 

 

 

  

 

 

 

  

 

 

 

  

 

 

 

  

 

 

 

  

 

 

 

Deposit Mix

                    

Retail CD

     34%        36%        38%        37%        36%        

MMA/OSA/Checking

     56%        53%        49%        49%        49%        

Brokered (3)

     10%        11%        13%        14%        15%        

 

(1) ‘Other’ includes held-for-investment consumer loans associated with Health Credit Services (HCS), now Ally Lending.

(2) Represents a non-GAAP financial measure. Excludes Core OID from interest expense and Core OID balance from Unsecured Debt.

(3) Includes retail, brokered, and other deposits. Brokered includes sweep deposits. Other includes mortgage escrow and other deposits.

(4) Includes Demand Notes, FHLB Borrowings and Repurchase Agreements.

(5) Includes trust preferred securities.

 

3Q 2020 Preliminary Results    19


ALLY FINANCIAL INC.

ALLY BANK CONSUMER MORTGAGE HFI PORTFOLIOS (PERIOD-END)

   LOGO

 

($ in billions)

                                                                                                             
     HISTORICAL QUARTERLY TRENDS

Mortgage Finance HFI Portfolio

   3Q 20    2Q 20    1Q 20    4Q 19    3Q 19

Loan Value

              

Gross carry value

     $ 15.2        $ 16.4        $ 15.9        $ 16.2        $ 15.8  

Net carry value

     $ 15.1        $ 16.4        $ 15.9        $ 16.2        $ 15.8  

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)

     1.3%        0.6%        0.5%        0.5%        0.8%  

% Low/No documentation

     0.2%        0.2%        0.2%        0.1%        0.1%  

% Non-primary residence

     4.7%        4.6%        4.5%        4.5%        4.5%  

Refreshed FICO (3)

     776        774        772        774        774  

Wtd. Avg. LTV/CLTV (4)

     60.3%        60.4%        60.0%        60.3%        60.7%  

Corporate Other Legacy Mortgage HFI Portfolio

              

Loan Value

              

Gross carry value

     $ 0.9        $ 1.0        $ 1.1        $ 1.1        $ 1.2  

Net carry value

     $ 0.9        $ 1.0        $ 1.0        $ 1.1        $ 1.2  

Estimated Pool Characteristics

              

% Second lien

     12.6%        13.2%        13.6%        13.9%        14.0%  

% Interest only

     0.6%        0.1%        0.1%        0.1%        0.1%  

% 30+ Day delinquent (1)(2)

     4.7%        4.0%        5.1%        5.4%        5.2%  

% Low/No documentation

     24.0%        23.4%        23.1%        23.5%        23.2%  

% Non-primary residence

     7.1%        6.9%        7.1%        7.2%        7.1%  

Refreshed FICO (3)

     733        730        730        730        731  

Wtd. Avg. LTV/CLTV (4)

     59.2%        62.1%        63.0%        63.8%        64.5%  

 

(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

 

3Q 2020 Preliminary Results    20


ALLY FINANCIAL INC.

EARNINGS PER SHARE RELATED INFORMATION

   LOGO

 

($ in millions, shares in thousands)

                                                                                                                                                         
     QUARTERLY TRENDS   CHANGE VS.

Earnings Per Share Data

   3Q 20   2Q 20   1Q 20   4Q 19   3Q 19   2Q 20   3Q 19

GAAP net income (loss) attributable to common shareholders

     $ 476       $ 241       $ (319     $ 378       $ 381       $ 235       $ 95  

Weighted-average common shares outstanding - basic (1)

     375,658       375,051       375,723       380,793       390,205       606       (14,548

Weighted-average common shares outstanding - diluted (1)

     377,011       375,762       375,723       383,391       392,604       1,250       (15,593

Issued shares outstanding (period-end)

     373,857       373,837       373,155       374,332       383,523       20       (9,666
  

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income (loss) per share - basic (1)

     $ 1.27       $ 0.64       $ (0.85     $ 0.99       $ 0.98       $ 0.62       $ 0.29  
  

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income (loss) per share - diluted (1)

     $ 1.26       $ 0.64       $ (0.85     $ 0.99       $ 0.97       $ 0.62       $ 0.29  
  

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Adjusted Earnings per Share (“Adjusted EPS”)

              

Numerator

              

GAAP net income (loss) attributable to common shareholders

     $ 476       $ 241       $ (319     $ 378       $ 381       $ 235       $ 95  

Discontinued operations, net of tax

     -       1       -       3       -       (1     -  

Core OID

     9       9       8       8       7       0       2  

Change in the fair value of equity securities (2)

     (13     (90     185       (29     11       76       (25

Core OID & change in the fair value of equity securities tax (tax rate 21%)

     1       17       (41     4       (4     (16     5  

Repositioning and other (3)

     -       50       -       -       -       (50     -  
  

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Core net income attributable to common shareholders (4)

     $ 473       $ 228       $ (166     $ 364       $ 396       $ 245       $ 77  

Denominator

              

Weighted-average common shares outstanding - diluted (1)

     377,011       375,762       375,723       383,391       392,604       1,250       (15,593

Adjusted EPS (5)

     $ 1.25       $ 0.61       $ (0.44     $ 0.95       $ 1.01       $ 0.65       $ 0.25  

Memo

              

Original Issue Discount Amortization Expense

              

Core original issue discount (Core OID) amortization expense (6)

     $ 9       $ 9       $ 8       $ 8       $ 7       $ 0       $ 2  

Other OID

     3       4       3       3       3       (1     0  
  

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

GAAP original issue discount amortization expense

     $ 12       $ 12       $ 11       $ 11       $ 11       $ 0       $ 1  
  

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Outstanding Original Issue Discount Balance

              

Core outstanding original issue discount balance (Core OID balance) (7)

     $ (1,037     $ (1,046     $ (1,055     $ (1,063     $ (1,071     $ 9       $ 34  

Other outstanding OID balance

     (48     (46     (34     (37     (40     (2     (7
  

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

GAAP outstanding original issue discount balance

     $ (1,084     $ (1,092     $ (1,089     $ (1,100     $ (1,111     $ 8       $ 27  
  

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Adjusted Other Revenue

              

GAAP Other Revenue

     $ 484       $ 555       $ 266       $ 487       $ 413       $ (71     $ 71  

Change in the fair value of equity securities (2)

     (13     (90     185       (29     11       76       (25
  

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Adjusted Other Revenue

     $ 471       $ 465       $ 451       $ 458       $ 424       $ 5       $ 46  
  

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net Financing Revenue (ex. Core OID)

              

GAAP net financing revenue

     $ 1,200       $ 1,054       $ 1,146       $ 1,156       $ 1,188       $ 146       $ 12  

Core OID

     9       9       8       8       7       0       2  
  

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net Financing Revenue (ex. Core OID)

     $ 1,209       $ 1,063       $ 1,154       $ 1,164       $ 1,195       $ 146       $ 14  
  

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Adjusted Noninterest Expense

              

GAAP Noninterest expense

     $ 905       $ 985       $ 920       $ 880       $ 838       $ (80     $ 67  

Repositioning and other (3)

     -       (50     -       -       -       50       -  
  

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Adjusted Noninterest Expense

     $ 905       $ 935       $ 920       $ 880       $ 838       $ (30     $ 67  
  

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(1) Due to antidilutive effect of the net loss from pre-tax loss from continuing operations attributable to common shareholders for the first quarter 2020, basic weighted average common shares outstanding were used to calculate diluted earnings per share

(2) Change in fair value of equity securities impacts the Insurance and Corporate Finance segments. Excludes equity fair value adjustments related to ASU 2016-01, which requires change in the fair value of equity securities to be recognized in current period net income as compared to periods prior to 1/1/2018 in which such adjustments were recognized through other comprehensive income, a component of equity.

(3) Repositioning and other includes a $50 million Goodwill impairment at Ally Invest in 2Q 20

(4) 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, repositioning and other which is primarily related to the extinguishment of high cost legacy debt, strategic activities and significant one-time items, significant discrete tax items and tax-effected changes in equity investments measured at fair value, as applicable for respective periods

(5) 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) excludes equity fair value adjustments (net of tax) related to ASU 2016-01 which requires change in the fair value of equity securities to be recognized in current period net income as compared to periods prior to 1/1/18 in which such adjustments were recognized through other comprehensive income, a component of equity, and (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 (e.g., Series A and Series G) that have been taken by the company to normalize its capital structure, as applicable for respective periods.

(6) 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.

(7) 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.

 

3Q 2020 Preliminary Results    21


ALLY FINANCIAL INC.

ADJUSTED TANGIBLE BOOK PER SHARE RELATED INFORMATION

   LOGO

 

($ in billions, shares in thousands)

                                                                                                                                                         
    QUARTERLY TRENDS   CHANGE VS.

Adjusted Tangible Book Value Per Share (“Adjusted TBVPS”) Information

  3Q 20   2Q 20   1Q 20   4Q 19   3Q 19   2Q 20   3Q 19

Numerator

             

GAAP common shareholder’s equity

    $ 14.1       $ 13.8       $ 13.5       $ 14.4       $ 14.5       $ 0.3       $ (0.3

Goodwill and identifiable intangibles, net of DTLs

    (0.4     (0.4     (0.4     (0.5     (0.3     0.0       (0.1
 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Tangible common equity

    13.7       13.4       13.1       14.0       14.2       0.3       (0.4

Tax-effected Core OID balance (21% tax rate)

    (0.8     (0.8     (0.8     (0.8     (0.8     0.0       0.0  

Adjusted tangible book value (1)

    $ 12.9       $ 12.6       $ 12.2       $ 13.1       $ 13.3       $ 0.3       $ (0.4
 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Denominator

             

Issued shares outstanding (period-end, thousands)

    373,857       373,837       373,155       374,332       383,523       20       (9,666

GAAP common shareholder’s equity per share

    $ 37.8       $ 37.0       $ 36.2       $ 38.5       $ 37.7       $ 0.8       $ 0.1  

Goodwill and identifiable intangibles, net of DTLs per share

    (1.0     (1.0     (1.2     (1.2     (0.7     0.0       (0.3
 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Tangible common equity per share

    36.7       35.9       35.0       37.3       37.0       0.8       (0.2

Tax-effected Core OID balance (21% tax rate) per share

    (2.2     (2.2     (2.2     (2.2     (2.2     0.0       0.0  
 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Adjusted tangible book value per share (1)

    $ 34.6       $ 33.7       $ 32.8       $ 35.1       $ 34.7       $ 0.8       $ (0.2
 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(1) 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.

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.

 

3Q 2020 Preliminary Results    22


ALLY FINANCIAL INC.

CORE ROTCE RELATED INFORMATION

   LOGO

 

($ in millions) unless noted otherwise

                                                                                                                                                         
    QUARTERLY TRENDS   CHANGE VS.

Core Return on Tangible Common Equity (“Core ROTCE”)

  3Q 20   2Q 20   1Q 20   4Q 19   3Q 19   2Q 20   3Q 19

Numerator

             

GAAP net income attributable to common shareholders

    $ 476       $ 241       $  (319     $ 378       $ 381       $ 235       $ 95  

Discontinued operations, net of tax

    -       1       -       3       -       (1     -  

Core OID

    9       9       8       8       7       0       2  

Change in the fair value of equity securities (1)

    (13     (90     185       (29     11       76       (25

Core OID & change in the fair value of equity securities tax (tax rate 21%) (1)

    1       17       (41     4       (4     (16     5  

Repositioning and other (2)

    -       50       -       -       -       (50     -  
 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Core net income attributable to common shareholders (3)

    $ 473       $ 228       $  (166     $ 364       $ 396       $ 245       $ 77  

Denominator (2-period average, $ billions)

             

GAAP shareholder’s equity

    $ 14.0       $ 13.7       $ 14.0       $ 14.4       $ 14.4       $ 0.3       $  (0.4

Goodwill & identifiable intangibles, net of deferred tax liabilities (“DTLs”)

    (0.4     (0.4     (0.4     (0.4     (0.3     0.0       (0.1
 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Tangible common equity

    $ 13.6       $ 13.3       $ 13.5       $ 14.1       $ 14.1       $ 0.3       $  (0.5

Core OID balance

    (1.0     (1.1     (1.1     (1.1     (1.1     0.0       0.0  

Net deferred tax asset (“DTA”)

    (0.1     (0.2     (0.1     -       (0.1     0.1       0.0  
 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Normalized common equity (4)

    $ 12.4       $ 12.0       $ 12.3       $ 13.0       $ 12.9       $ 0.4       $  (0.5

Core Return on Tangible Common Equity (5)

    15.2%       7.6%       (5.4)%       11.2%       12.3%      

 

(1) Change in fair value of equity securities impacts the Insurance and Corporate Finance segments. Excludes equity fair value adjustments related to ASU 2016-01, which requires change in the fair value of equity securities to be recognized in current period net income as compared to periods prior to 1/1/2018 in which such adjustments were recognized through other comprehensive income, a component of equity.

(2) Repositioning and other includes a $50 million Goodwill impairment at Ally Invest in 2Q 20

(3) 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, repositioning and other which is primarily related to the extinguishment of high cost legacy debt, strategic activities and significant one-time items, significant discrete tax items and tax-effected changes in equity investments measured at fair value, as applicable for respective periods.

(4) Normalized common equity is a non - GAAP measure calculated using 2 period average

(5) 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, repositioning and other which is primarily related to the extinguishment of high cost legacy debt, strategic activities and significant onetime items, tax-effected Core OID, fair value adjustments (net of tax) related to ASU 2016-01, effective 1/1/2018, which requires change in the fair value of equity securities to be recognized in current period net income as compared to prior periods in which such adjustments were recognized through other comprehensive income, a component of equity, 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.

 

3Q 2020 Preliminary Results    23


ALLY FINANCIAL INC.

ADJUSTED EFFICIENCY RATIO RELATED INFORMATION

   LOGO

 

($ in millions)

                                                                                                                                                         
     QUARTERLY TREND   CHANGE VS.

Adjusted Efficiency Ratio Calculation

   3Q 20   2Q 20   1Q 20   4Q 19   3Q 19   2Q 20   3Q 19

Numerator

              

GAAP Noninterest expense

     $ 905       $ 985       $ 920       $ 880       $ 838       $ (80     $ 67  

Rep and warrant expense

     -       -       -       -       (0     -       0  

Insurance expense

     (268     (322     (256     (238     (247     54       (21

Repositioning and other (1)

     -       (50     -       -       -       50       -  
  

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Adjusted noninterest expense for the efficiency ratio

     $ 637       $ 613       $ 664       $ 642       $ 591       $ 24       $ 46  

Denominator

              

Total net revenue

     $ 1,684       $ 1,609       $ 1,412       $ 1,643       $ 1,601       $ 75       $ 83  

Core OID

     9       9       8       8       7       0       2  

Insurance revenue

     (346     (450     (151     (352     (303     104       (43
  

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Adjusted net revenue for the efficiency ratio

     $ 1,347       $ 1,168       $ 1,269       $ 1,299       $ 1,305       $ 179       $ 42  

Adjusted Efficiency Ratio (2)

     47.3%       52.5%       52.3%       49.4%       45.3%      
  

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

   

 

1) Repositioning and other includes a $50 million Goodwill impairment at Ally Invest in 2Q 20

(2) 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.

 

3Q 2020 Preliminary Results    24
v3.20.2
Document and Entity Information
Oct. 16, 2020
Document And Entity Information [Line Items]  
Document Period End Date Oct. 16, 2020
Amendment Flag false
Entity Central Index Key 0000040729
Document Type 8-K
Entity File Number 1-3754
Entity Registrant Name ALLY FINANCIAL INC.
Entity Incorporation State Country Code DE
Entity Tax Identification Number 38-0572512
Entity Address, Address Line One Ally Detroit Center
Entity Address, Address Line Two 500 Woodward Ave.
Entity Address, Address Line Three Floor 10
Entity Address, City or Town Detroit
Entity Address, State or Province MI
Entity Address, Postal Zip Code 48226
City Area Code (866)
Local Phone Number 710-4623
Written Communications false
Soliciting Material false
Pre Commencement Tender Offer false
Pre Commencement Issuer Tender Offer false
Entity Emerging Growth Company false
Common Stock [Member]  
Document And Entity Information [Line Items]  
Security 12b Title Common Stock, par value $0.01 per share
Trading Symbol ALLY
Security Exchange Name NYSE
Auction Rate Preferred Securities [Member]  
Document And Entity Information [Line Items]  
Security 12b Title 8.125% Fixed Rate/Floating Rate Trust Preferred Securities, Series 2 of GMAC Capital Trust I
Trading Symbol ALLY PRA
Security Exchange Name NYSE