FOURTH QUARTER 2018 FINANCIAL SUPPLEMENT
ALLY FINANCIAL INC.
FORWARD-LOOKING STATEMENTS AND ADDITIONAL INFORMATION
This document and related communications should be read in conjunction with the financial statements, notes, and other information contained in our Annual Reports on Form 10-K, Quarterly Reports on Form 10-Q, and Current Reports on Form 8-K. This information is preliminary and based on company and third-party data available at the time of the presentation or related communication.
This document and related communications contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements can be identified by the fact that they do not relate strictly to historical or current facts-such as our statements about targets and expectations for various financial and operating metrics. Forward-looking statements often use words such as "believe," "expect," "anticipate," "intend," "pursue," "seek," "continue," "estimate," "project," "outlook," "forecast," "potential," "target," "objective," "trend," "plan," "goal," "initiative," "priorities," or other words of comparable meaning or future-tense or conditional verbs such as "may," "will," "should," "would," or "could." Forward-looking statements convey our expectations, intentions, or forecasts about future events, circumstances, or results. All forward-looking statements, by their nature, are subject to assumptions, risks, and uncertainties, which may change over time and many of which are beyond our control. You should not rely on any forward-looking statement as a prediction or guarantee about the future. Actual future objectives, strategies, plans, prospects, performance, conditions, or results may differ materially from those set forth in any forward-looking statement. Some of the factors that may cause actual results or other future events or circumstances to differ from those in forward-looking statements are described in our Annual Report on Form 10-K for the year ended December 31, 2017, our subsequent Quarterly Reports on Form 10-Q or Current Reports on Form 8-K, or other applicable documents that are filed or furnished with the U.S. Securities and Exchange Commission (collectively, our "SEC filings"). Any forward-looking statement made by us or on our behalf speaks only as of the date that it was made. We do not undertake to update any forward-looking statement to reflect the impact of events, circumstances, or results that arise after the date that the statement was made, except as required by applicable securities laws. You, however, should consult further disclosures (including disclosures of a forward-looking nature) that we may make in any subsequent SEC filings.
This document and related communications contain specifically identified non-GAAP financial measures, which supplement the results that are reported according to generally accepted accounting principles ("GAAP"). These non-GAAP financial measures may be useful to investors but should not be viewed in isolation from, or as a substitute for, GAAP results. Differences between non-GAAP financial measures and comparable GAAP financial measures are reconciled in the presentation.
Our use of the term "loans" describes all of the products associated with our direct and indirect lending activities. The specific products include loans, retail installment sales contracts, lines of credit, leases, and other financing products. The term "lend" or "originate" refers to our direct origination of loans or our purchase or acquisition of loans.
4Q 2018 Preliminary Results
ALLY FINANCIAL INC. | |
TABLE OF CONTENTS | |
Page(s) | |
Consolidated Results | |
Consolidated Financial Highlights | 4 |
Consolidated Income Statement | 5 |
Consolidated Period-End Balance Sheet | 6 |
Consolidated Average Balance Sheet | 7 |
Segment Detail | |
Segment Highlights | 8 |
Automotive Finance | 9-10 |
Insurance | 11 |
Mortgage Finance | 12 |
Corporate Finance | 13 |
Corporate and Other | 14 |
Credit Related Information | 15-16 |
Supplemental Detail | |
Capital | 17 |
Liquidity | 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 |
4Q 2018 Preliminary Results |
ALLY FINANCIAL INC.
CONSOLIDATED FINANCIAL HIGHLIGHTS
($ in millions, shares in thousands)
QUARTERLY TRENDS
CHANGE VS.
FULL YEARSelected Income Statement Data
4Q 18
3Q 18
2Q 18
1Q 18
4Q 17
3Q 18
4Q 17
FY 2018
FY 2017
CHANGE
Net financing revenue (ex. Core OID) (1)
$
1,163 $
1,129 $
1,115 $
1,069 $
1,113 $
Core OID
(23)
(22)
(21)
(20)
(19)
Net financing revenue (as reported)
Other revenue (ex. change in the fair value of equity securities) (2)
Change in the fair value of equity securities (3)
Other revenue (as reported)
Provision for loan losses Total noninterest expense (4)
1,140 393 (95) 298 266 804
1,107 392 6 398 233 807
1,094 356 8 364 158 839
1,049 394 (40) 354 261 814
1,094 379 - 379 294 769
34 (1) 33 1 (101)
$
50 $
4,476 $
4,292 $ 184
(4)
(86)
(71) (15)
46 14 (95)
(100)
33 (3)
(81) (28) 35
4,390 1,535 (121) 1,414 918 3,264
4,221 169
1,544 (9)
- (121)
1,544 (130)
1,148 (230)
3,110 154
Pre-tax income from continuing operations Income tax expense
Income / (loss) from discontinued operations, net of tax Net income attributable to common shareholders
368 79 1
465 91 -
461 113 1
328 76 (2)
410 231 2
(97)
(42)
(12)
(152)
$
290
$
374
$
349
$
250
$
181
$
1 (84)
(1)
$ 109
$
1,622 359 - 1,263
1,507
115
581 (222)
3 (3)
$
929
$
334
Selected Balance Sheet Data (Period-End)
Total assets
$
178,869
$
173,101
$
171,345
$
170,021 $
167,148
$
5,768 $ 11,721
Consumer loans Commercial loans Allowance for loan losses Deposits
87,240
86,501
85,604
84,002
81,821
739 5,419
42,686
40,104
39,940
41,325
41,072
2,582 1,614
(1,242)
(1,248)
(1,257)
(1,278)
(1,276)
6 34
106,178
101,379
98,734
97,446
93,256
Total equity
13,268
13,085
13,139
13,082
13,494
4,799 183
12,922
(226)
Common Share Count
Weighted average basic (5)
Weighted average diluted (5)
Issued shares outstanding (period-end)
411,931 414,750 404,900
422,187 424,784 416,591
430,628 432,554 425,752
436,213 438,931 432,691
442,108 444,985 437,054
(10,256) (10,034) (11,691)
(30,177) (30,235) (32,154)
425,165 427,680 404,900
453,704 (28,539)
455,350 (27,670)
437,054 (32,154)
Per Common Share Data
Earnings per share (basic) (5)
$
0.70
$
0.89
$
0.81
$
0.57 $ 0.41
$
(0.18)
$
0.29
$
2.97 $ 2.05 $ 0.92
Earnings per share (diluted) (5)
0.70
0.88
0.81
0.57 0.41
(0.18)
0.29
2.95 2.04 0.91
Adjusted earnings per share (6) Book value per share
0.92
0.91
0.83
0.68 0.70
0.01
0.23
3.34 2.39 0.94
32.8
31.4
30.9
30.2 30.9
1.4
1.9
32.8 30.9 1.9
Tangible book value per share (7)
32.1
30.7
30.2
29.6 30.2
1.3
1.9
32.1 30.2 1.9
Adjusted tangible book value per share (7)
29.9
28.6
28.1
27.4 28.1
1.3
1.9
29.9 28.1 1.9
Select Financial Ratios
Net interest margin (as reported)
2.66%
2.67%
2.68%
2.64% 2.75%
2.65% 2.71%
Net interest margin (ex. Core OID) (8) Cost of funds
2.72%
2.72%
2.74%
2.69% 2.80%
2.70% 2.76%
2.60%
2.45%
2.30%
2.16% 2.01%
2.38% 1.97%
Cost of funds (ex. Core OID) (8)
2.52%
2.38%
2.23%
2.09% 1.94%
2.31% 1.91%
Efficiency Ratio (9)
55.9%
53.6%
57.5%
58.0% 52.2%
56.2% 53.9%
Adjusted efficiency ratio (8)(9)
46.9%
46.0%
47.7%
50.1% 46.4%
47.6% 45.8%
Return on average assets (10)
0.7%
0.9%
0.8%
0.6% 0.4%
0.7% 0.6%
Return on average total equity (10)
8.8%
11.4%
10.6%
7.5% 5.3%
9.4% 6.9%
Return on average tangible common equity (10) (11)
9.0%
11.7%
10.9%
7.7% 5.5%
9.8% 7.1%
Core ROTCE (11)
13.4%
13.7%
12.8%
10.6% 10.8%
12.3% 9.8%
Capital Ratios (12)
Common Equity Tier 1 (CET1) capital ratio Tier 1 capital ratio
Total capital ratio Tier 1 leverage ratio
9.1% 10.8% 12.3% 9.0%
9.4% 11.1% 12.7% 9.2%
9.4% 11.1% 12.7% 9.2%
9.3% 9.5%
11.0% 11.2%
12.6% 12.9%
9.3% 9.5%
(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, effective 1/1/18, which requires change in the fair value of equity securities to be recognized in current period net income as compared to prior periods in which such adjustments were recognized through other comprehensive income, a component of equity. 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, 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.
(4) Including but not limited to employee related expenses, commissions and provision for losses and loss adjustment expense related to the insurance business, information technology expenses, servicing expenses, facilities expenses, marketing expenses, and other professional and legal expenses.
(5) Includes shares related to share-based compensation that vested but were not yet issued.
(6) Represents a non-GAAP financial measure. For more details refer to page 21.
(7) Represents a non-GAAP financial measure. For more details refer to page 22.
(8) Represents a non-GAAP financial measure. Excludes Core OID. For more details refer to page 21.
(9) Represents a non-GAAP financial measure. For more details refer to page 24.
(10) Return metrics are annualized.
(11) Return metrics are annualized. Represents a non-GAAP financial measure. For more details refer to page 23.
(12) Basel III rules became effective on January 1, 2015, subject to transition provisions primarily related to deductions and adjustments impacting CET1 capital and Tier 1 capital.
4Q 2018 Preliminary Results
ALLY FINANCIAL INC. CONSOLIDATED INCOME STATEMENT
($ in millions)
QUARTERLY TRENDS
CHANGE VS.
FULL YEAR
4Q 18
3Q 18
2Q 18
1Q 18
4Q 17
3Q 18
4Q 17
FY 2018
FY 2017
CHANGE
Financing revenue and other interest income Interest and fees on finance receivables and loans Interest on loans held-for-sale
$
1,790
$
1,708
$
1,647
$
5
4
6
1,543 -$
1,518 -$
82 $
272
$
6,688 $
5,819
$ 869
1
5
15
- 15
Total interest and dividends on investment securities Interest-bearing cash
211
182
173
163
153
29
58
729
568 161
22
18
17
15
14
4
8
72
37 35
Other earning assets Operating leases
15
16
15
13
9
(1)
6
59
31 28
365
368
374
382
402
(3)
(37)
1,489
1,867 (378)
Total financing revenue and other interest income Interest expense
2,408
2,296
2,232
2,116
2,096
112
312
9,052
8,322 730
Interest on deposits
523
462
399
351
311
61
212
1,735
1,077 658
Interest on short-term borrowings Interest on long-term debt
48
29
40
32
33
19
15
149
127 22
457
451
434
411
396
6
61
1,753
1,653 100
Total interest expense
1,028
942
873
794
740
86
288
3,637
2,857 780
Depreciation expense on operating lease assets Net financing revenue (as reported)
240
247
265
273
262
(7)
(22)
1,025
1,244 (219)
$
1,140
$
1,107
$
1,094
$
1,049
$
1,094 $
33 $
46 $
4,390 $
4,221 $ 169
Other revenue
Servicing fees
6
6
7
8
10
1
(3)
27
51 (23)
Insurance premiums and service revenue earned Gain on mortgage and automotive loans, net Loss on extinguishment of debt
269
258
239
256
253
11
16
1,022
973 49
6 -
17 -
1 -
1 -
3
(11)
3
(1)
-
1
25 -
68 (43)
(7) 7
Other (loss) / gain on investments, net Other income, net of losses
(87)
22
27
(12)
29
(109)
(116)
(50)
102 (152)
Total other revenue Total net revenue Provision for loan losses Noninterest expense Compensation and benefits expense
104 298 1,438 266
95 398 1,505 233
91 364 1,458 158
100 354 1,403 261
86 379 1,473 294
9 (100) (67) 33
19 (81) (35) (28)
391 1,414 5,804 918
357 34
1,544 (130)
5,765 39
1,148 (230)
Insurance losses and loss adjustment expenses Other operating expenses
Total noninterest expense
283 54 467 804
274 77 456 807
292 101 446 839
306 63 445 814
281 54 434 769
9 (23) 11 (3)
2 - 33 35
1,155 295 1,814 3,264
1,095 60
332 (37)
1,683 131
3,110 154
Pre-tax income from continuing operations Income tax expense from continuing operations Net income from continuing operations
$
Income / (loss) from discontinued operations, net of tax Net income
368 $ 79 289 1
465 $ 91 374 -
461 $ 113 348 1
328 $ 76 252 (2)
410 $ 231 179 2
(97) $
(42) $
(12)
(152)
(85)
1
110 (1)
1,622 $ 359 1,263 -
1,507 $ 115
581 (222)
926 337
3 (3)
Core Pre-Tax Income Walk
Net financing revenue (ex. Core OID) (1) Adjusted other revenue (2)
$ $
290
$
374
$
349
$
250
$
181
$
(84) $
109
$
1,263
$
929
$
334
Provision for loan losses Noninterest expense Core pre-tax income (3)
1,163 $ 393 266 804
1,129 $ 392 233 807
1,115 $ 356 158 839
1,069 $ 394 261 814
1,113 $ 379 294 769
34 $ 1 33 (3)
50 $ 14
(28) 35
4,476 $ 1,535 918 3,264
4,292 $ 184
1,544 (9)
1,148 (230)
3,110 154
$
Core OID
Change in the fair value of equity securities (4)
486 $ 23 95
481 $ 22
474 $ 21
(6)
(8)
388 $ 20 40
429 $ 19
-
6 $ 1 101
57 $ 4 95
1,829 $ 86 121
1,578
$ 251
71 15
- 121
Pre-tax income from continuing operations
$
368
$
465
$
461
$
328
$
410
$
(97)
$
(42)
$
1,622
$
1,507
$
115
(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, 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. For more details refer to page 21.
(3) Core pre-tax income is a non-GAAP financial measure that adjusts pre-tax income from continuing operations by excluding (1) Core OID and (2) equity fair value adjustments related to ASU 2016-01, 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. Management believes core pre-tax income can help the reader better understand the operating performance of the core businesses and their ability to generate earnings.
(4) Change in fair value of equity securities impacts the Insurance and Corporate Finance segments. Excludes equity fair value adjustments related to ASU 2016-01, 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.
4Q 2018 Preliminary Results
Attachments
- Original document
- Permalink
Disclaimer
Ally Financial Inc. published this content on 30 January 2019 and is solely responsible for the information contained herein. Distributed by Public, unedited and unaltered, on 30 January 2019 12:58:09 UTC