EX-99.3

EX-99.3 4 d508671dex993.htm EX-99.3 EX-99.3

Exhibit 99.3

LOGO

SECOND QUARTER 2023

FINANCIAL SUPPLEMENT

ALLY FINANCIAL INC.

FORWARD-LOOKING STATEMENTS AND ADDITIONAL INFORMATION

This document and related communications should be read in conjunction with the financial statements, notes, and other information contained in our Annual Reports on Form 10-K, Quarterly Reports on Form 10-Q, and Current Reports on Form 8-K. This information is preliminary and based on company and third-party data available at the time of the presentation or related communication.

This document and related communications contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements can be identified by the fact that they do not relate strictly to historical or current facts—such as statements about the outlook for financial and operating metrics, and future capital allocation and actions. Forward-looking statements often use words such as “believe,” “expect,” “anticipate,” “intend,” “pursue,” “seek,” “continue,” “estimate,” “project,” “outlook,” “forecast,” “potential,” “target,” “objective,” “trend,” “plan,” “goal,” “initiative,” “priorities,” or other words of comparable meaning or future-tense or conditional verbs such as “may,” “will,” “should,” “would,” or “could.” Forward-looking statements convey our expectations, intentions, or forecasts about future events, circumstances, or results. All forward-looking statements, by their nature, are subject to assumptions, risks, and uncertainties, which may change over time and many of which are beyond our control. You should not rely on any forward-looking statement as a prediction or guarantee about the future. Actual future objectives, strategies, plans, prospects, performance, conditions, or results may differ materially from those set forth in any forward-looking statement. Some of the factors that may cause actual results or other future events or circumstances to differ from those in forward-looking statements are described in our Annual Report on Form 10-K for the year ended December 31, 2022, our subsequent Quarterly Reports on Form 10-Q or Current Reports on Form 8-K, or other applicable documents that are filed or furnished with the U.S. Securities and Exchange Commission (collectively, our “SEC filings”). Any forward-looking statement made by us or on our behalf speaks only as of the date that it was made. We do not undertake to update any forward-looking statement to reflect the impact of events, circumstances, or results that arise after the date that the statement was made, except as required by applicable securities laws. You, however, should consult further disclosures (including disclosures of a forward-looking nature) that we may make in any subsequent SEC filings.

This document and related communications contain specifically identified non-GAAP financial measures, which supplement the results that are reported according to U.S. generally accepted accounting principles (“GAAP”). These non-GAAP financial measures may be useful to investors but should not be viewed in isolation from, or as a substitute for, GAAP results. Differences between non-GAAP financial measures and comparable GAAP financial measures are reconciled in the presentation.

Unless the context otherwise requires, the following definitions apply. The term “loans” means the following consumer and commercial products associated with our direct and indirect financing activities: loans, retail installment sales contracts, lines of credit, and other financing products excluding operating leases. The term “operating leases” means consumer- and commercial-vehicle lease agreements where Ally is the lessor and the lessee is generally not obligated to acquire ownership of the vehicle at lease-end or compensate Ally for the vehicle’s residual value. The terms “lend,” “finance,” and “originate” mean our direct extension or origination of loans, our purchase or acquisition of loans, or our purchase of operating leases, as applicable. The term “consumer” means all consumer products associated with our loan and operating-lease activities and all commercial retail installment sales contracts. The term “commercial” means all commercial products associated with our loan activities, other than commercial retail installment sales contracts. The term “partnerships” means business arrangements rather than partnerships as defined by law.


2Q 2023 Preliminary Results		2

ALLY FINANCIAL INC.

TABLE OF CONTENTS


			Page(s)
Consolidated Results

Consolidated Financial Highlights			4

Consolidated Income Statement			5

Consolidated Period-End Balance Sheet			6

Consolidated Average Balance Sheet			7

Segment Detail

Segment Highlights			8

Automotive Finance			9-10

Insurance			11

Mortgage Finance			12

Corporate Finance			13

Corporate and Other			14

Credit Related Information			15-16

Supplemental Detail

Capital			17

Liquidity and Deposits			18

Net Interest Margin			19

Ally Bank Consumer Mortgage HFI Portfolios			20

Earnings Per Share Related Information			21

Adjusted Tangible Book Per Share Related Information			22

Core ROTCE Related Information			23

Adjusted Efficiency Ratio Related Information			24


2Q 2023 Preliminary Results		3

ALLY FINANCIAL INC.

CONSOLIDATED FINANCIAL HIGHLIGHTS


($ in millions, shares in thousands)	QUARTERLY TRENDS															CHANGE VS.
Selected Income Statement Data	2Q 23			1Q 23			4Q 22			3Q 22			2Q 22			1Q 23			2Q 22

Net financing revenue	$	1,573		$	1,602		$	1,674		$	1,719		$	1,764		$	(29	)	$	(191	)

Core OID		12			11			11			11			10			0			2

Net financing revenue (excluding Core OID) ⁽¹⁾		1,585			1,613			1,685			1,730			1,774			(29	)		(189	)

Other revenue		506			498			527			297			312			8			194

Change in fair value of equity securities ⁽²⁾		(25	)		(65	)		(49	)		62			136			40			(161	)

Adjusted other revenue ⁽¹⁾		481			433			478			359			448			48			33

Provision for loan losses		427			446			490			438			304			(19	)		123

Total noninterest expense ⁽³⁾		1,249			1,266			1,266			1,161			1,138			(17	)		111

Repositioning		—			—			57			20			—			—			—

Noninterest Expense (ex. Repositioning)		1,249			1,266			1,209			1,141			1,138			(17	)		111


Pre-tax income from continuing operations		403			388			445			417			634			15			(231	)

Income tax expense		74			68			167			117			152			6			(78	)

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


Net Income		329			319			278			299			482			10			(153	)

Preferred Dividends		28			28			27			27			28			—			—


Net income attributable to common shareholders	$	301		$	291		$	251		$	272		$	454		$	10		$	(153	)


Core Pre-Provision Net Revenue ⁽⁴⁾	$	817		$	781		$	954		$	948		$	1,084		$	37		$	(267	)

Selected Balance Sheet Data (Period-End)

Total assets	$	197,241		$	196,165		$	191,826		$	188,640		$	185,703		$	1,076		$	11,538

Consumer loans		107,370			106,815			106,610			106,720			103,683			555			3,687

Commercial loans		31,079			29,489			29,138			25,736			24,774			1,590			6,305

Allowance for loan losses		(3,781	)		(3,751	)		(3,711	)		(3,611	)		(3,450	)		(30	)		(331	)

Deposits		154,310			154,013			152,297			145,751			140,401			297			13,909

Total equity		13,532			13,378			12,859			12,434			13,984			154			(452	)

Common Share Count

Weighted average basic		303,684			302,657			301,279			308,220			322,057			1,027			(18,373	)

Weighted average diluted		304,646			303,448			303,062			310,086			324,027			1,197			(19,382	)

Issued shares outstanding (period-end)		301,619			300,821			299,324			300,335			312,781			798			(11,163	)

Per Common Share Data

Earnings per share (basic)	$	0.99		$	0.96		$	0.83		$	0.88		$	1.41		$	0.03		$	(0.42	)

Earnings per share (diluted)		0.99			0.96			0.83			0.88			1.40			0.03			(0.41	)

Adjusted earnings per share ⁽¹⁾		0.96			0.82			1.08			1.12			1.76			0.13			(0.80	)

Book value per share		37.16			36.75			35.20			33.66			37.28			0.41			(0.12	)

Tangible book value per share		34.22			33.77			32.18			30.63			34.34			0.45			(0.12	)

Adjusted tangible book value per share ⁽⁵⁾		32.08			31.59			29.96			28.39			32.16			0.48			(0.08	)

Select Financial Ratios

Net interest margin		3.38	%		3.51	%		3.65	%		3.81	%		4.04	%

Net interest margin (ex. Core OID) ⁽¹⁾		3.41	%		3.54	%		3.68	%		3.83	%		4.06	%

Cost of funds		3.89	%		3.44	%		2.77	%		1.93	%		1.16	%

Cost of funds (ex. Core OID)		3.84	%		3.39	%		2.73	%		1.89	%		1.12	%

Efficiency Ratio		60.1	%		60.3	%		57.5	%		57.6	%		54.8	%

Adjusted efficiency ratio ⁽⁶⁾		51.7	%		55.8	%		50.6	%		48.2	%		43.9	%

Return on average assets		0.6	%		0.6	%		0.5	%		0.6	%		1.0	%

Return on average total equity		8.9	%		8.9	%		7.9	%		8.2	%		12.4	%

Return on average tangible common equity		11.8	%		11.8	%		10.7	%		10.9	%		15.9	%

Core ROTCE ⁽⁷⁾		13.9	%		12.5	%		17.6	%		17.2	%		23.2	%

Capital Ratios ⁽⁸⁾

Common Equity Tier 1 (CET1) capital ratio		9.3	%		9.2	%		9.3	%		9.3	%		9.6	%

Tier 1 capital ratio		10.7	%		10.7	%		10.7	%		10.8	%		11.1	%

Total capital ratio		12.5	%		12.5	%		12.2	%		12.4	%		12.7	%

Tier 1 leverage ratio		8.6	%		8.5	%		8.6	%		8.8	%		9.1	%

(1)

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

(2)

For more details refer to pages 25-27.

(3)

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

(4)

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

(5)

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

(6)

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

(7)

Represents a non-GAAP financial measure. For more details refer to page 23.

(8)

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


2Q 2023 Preliminary Results		4

ALLY FINANCIAL INC.

CONSOLIDATED INCOME STATEMENT


($ in millions)	QUARTERLY TRENDS															CHANGE VS.
	2Q 23			1Q 23			4Q 22			3Q 22			2Q 22			1Q 23			2Q 22

Financing revenue and other interest income

Interest and fees on finance receivables and loans	$	2,721		$	2,575		$	2,423		$	2,120		$	1,842		$	146		$	879

Interest on loans held-for-sale		7			15			13			10			4			(8	)		3

Total interest and dividends on investment securities		238			226			220			206			195			12			43

Interest-bearing cash		87			56			31			16			5			31			82

Other earning assets		9			12			12			12			8			(3	)		1

Operating leases		392			402			400			397			396			(10	)		(4	)


Total financing revenue and other interest income		3,454			3,286			3,099			2,761			2,450			168			1,004

Interest expense

Interest on deposits		1,418			1,217			946			567			263			201			1,155

Interest on short-term borrowings		11			12			40			43			19			(1	)		(8	)

Interest on long-term debt		252			227			200			194			184			25			68

Interest on other		—			2			(1	)		—			1			(2	)		(1	)


Total interest expense		1,681			1,458			1,185			804			467			223			1,214

Depreciation expense on operating lease assets		200			226			240			238			219			(26	)		(19	)


Net financing revenue	$	1,573		$	1,602		$	1,674		$	1,719		$	1,764		$	(29	)	$	(191	)

Other revenue

Insurance premiums and service revenue earned		310			306			302			289			280			4			30

Gain on mortgage and automotive loans, net		5			4			24			10			4			1			1

Loss on extinguishment of debt		0			(0	)		(0	)		(0	)		(0	)		0			0

Other gain / (loss) on investments, net		26			74			53			(54	)		(124	)		(48	)		150

Other income, net of losses		165			114			148			52			152			51			13


Total other revenue		506			498			527			297			312			8			194

Total net revenue		2,079			2,100			2,201			2,016			2,076			(21	)		3

Provision for loan losses		427			446			490			438			304			(19	)		123

Noninterest expense

Compensation and benefits expense		448			537			503			467			437			(89	)		11

Insurance losses and loss adjustment expenses		134			88			63			70			89			46			45

Other operating expenses		667			641			700			624			612			26			55


Total noninterest expense		1,249			1,266			1,266			1,161			1,138			(17	)		111

Pre-tax income from continuing operations	$	403		$	388		$	445		$	417		$	634		$	15		$	(231	)

Income tax expense from continuing operations		74			68			167			117			152			6			(78	)


Net income from continuing operations		329			320			278			300			482			9			(153	)

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


Net income		329			319			278			299			482			10			(153	)

Preferred Dividends		28			28			27			27			28			—			—


Net income available to common shareholders	$	301		$	291		$	251		$	272		$	454		$	10		$	(153	)


Core pre-tax Income walk

Net financing revenue	$	1,573		$	1,602		$	1,674		$	1,719		$	1,764		$	(29	)	$	(191	)

Other revenue		506			498			527			297			312			8			194

Provision for credit losses		427			446			490			438			304			(19	)		123

Total noninterest expense		1,249			1,266			1,266			1,161			1,138			(17	)		111


Pre-tax income from continuing operations	$	403		$	388		$	445		$	417		$	634		$	15		$	(231	)

Core OID ⁽²⁾		12			11			11			11			10			0			2

Change in the fair value of equity securities ⁽¹⁾		(25	)		(65	)		(49	)		62			136			40			(161	)

Repositioning ⁽¹⁾		—			—			57			20			—			—			—


Core pre-tax income ⁽²⁾	$	390		$	335		$	464		$	510		$	780		$	56		$	(390	)

(1)

For more details refer to pages 25-27.

(2)

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


2Q 2023 Preliminary Results		5

ALLY FINANCIAL INC.

CONSOLIDATED PERIOD-END BALANCE SHEET


($ in millions)	QUARTERLY TRENDS															CHANGE VS.
Assets	2Q 23			1Q 23			4Q 22			3Q 22			2Q 22			1Q 23			2Q 22

Cash and cash equivalents

Noninterest-bearing	$	536		$	554		$	542		$	638		$	801		$	(18	)	$	(265	)

Interest-bearing		9,436			9,226			5,029			4,366			3,366			210			6,070


Total cash and cash equivalents		9,972			9,780			5,571			5,004			4,167			192			5,805

Investment securities ⁽¹⁾		30,453			31,215			31,284			31,344			33,590			(762	)		(3,137	)

Loans held-for-sale, net		297			524			654			808			798			(227	)		(501	)

Finance receivables and loans, net		138,449			136,304			135,748			132,456			128,457			2,145			9,992

Allowance for loan losses		(3,781	)		(3,751	)		(3,711	)		(3,611	)		(3,450	)		(30	)		(331	)


Total finance receivables and loans, net		134,668			132,553			132,037			128,845			125,007			2,115			9,661

Investment in operating leases, net		9,930			10,236			10,444			10,577			10,516			(306	)		(586	)

Premiums receivables and other insurance assets		2,768			2,713			2,698			2,719			2,743			55			25

Other assets		9,153			9,144			9,138			9,343			8,882			9			271


Total assets	$	197,241		$	196,165		$	191,826		$	188,640		$	185,703		$	1,076		$	11,538


Liabilities

Deposit liabilities

Noninterest-bearing	$	160		$	174		$	185		$	220		$	185		$	(14	)	$	(25	)

Interest-bearing		154,150			153,839			152,112			145,531			140,216			311			13,934


Total deposit liabilities		154,310			154,013			152,297			145,751			140,401			297			13,909

Short-term borrowings		2,194			1,455			2,399			7,200			7,775			739			(5,581	)

Long-term debt		20,141			20,480			17,762			16,628			16,984			(339	)		3,157

Interest payable		955			759			408			484			270			196			685

Unearned insurance premiums and service revenue		3,478			3,455			3,453			3,468			3,490			23			(12	)

Accrued expense and other liabilities		2,631			2,625			2,648			2,675			2,799			6			(168	)


Total liabilities	$	183,709		$	182,787		$	178,967		$	176,206		$	171,719		$	922		$	11,990

Equity

Common stock and paid-in capital ⁽²⁾	$	15,048		$	15,015		$	14,978		$	14,994		$	15,390		$	33		$	(342	)

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

Retained earnings / accumulated deficit		23			(185	)		(384	)		(544	)		(721	)		208			744

Accumulated other comprehensive income / (loss)		(3,863	)		(3,776	)		(4,059	)		(4,340	)		(3,009	)		(87	)		(854	)


Total equity		13,532			13,378			12,859			12,434			13,984			154			(452	)


Total liabilities and equity	$	197,241		$	196,165		$	191,826		$	188,640		$	185,703		$	1,076		$	11,538

(1)

Includes Held-to-maturity securities.

(2)

Includes Treasury stock.


2Q 2023 Preliminary Results		6

ALLY FINANCIAL INC.

CONSOLIDATED AVERAGE BALANCE SHEET ⁽¹⁾


($ in millions)	QUARTERLY TRENDS															CHANGE VS.
Assets	2Q 23			1Q 23			4Q 22			3Q 22			2Q 22			1Q 23			2Q 22

Interest-bearing cash and cash equivalents	$	7,401		$	5,731		$	4,129		$	3,627		$	3,761		$	1,670		$	3,640

Investment securities and other earning assets		31,537			32,168			32,131			34,166			34,679			(631	)		(3,142	)

Loans held-for-sale, net		422			738			722			748			420			(316	)		2

Total finance receivables and loans, net ⁽²⁾		137,185			135,819			134,170			129,996			125,628			1,366			11,557

Investment in operating leases, net		10,110			10,435			10,546			10,588			10,615			(325	)		(505	)


Total interest earning assets		186,655			184,891			181,698			179,125			175,103			1,764			11,552

Noninterest-bearing cash and cash equivalents		362			333			395			503			343			29			19

Other assets		10,781			10,817			11,082			10,338			10,510			(36	)		271

Allowance for loan losses		(3,777	)		(3,729	)		(3,641	)		(3,494	)		(3,339	)		(48	)		(438	)


Total assets	$	194,021		$	192,312		$	189,534		$	186,472		$	182,617		$	1,709		$	11,404


Liabilities

Interest-bearing deposit liabilities

Retail deposit liabilities	$	138,285		$	138,071		$	135,340		$	131,868		$	132,111		$	214		$	6,174

Other interest-bearing deposit liabilities ⁽³⁾		13,935			14,503			12,933			10,717			7,522			(568	)		6,413


Total Interest-bearing deposit liabilities		152,220			152,573			148,273			142,586			139,633			(353	)		12,587

Short-term borrowings		833			1,024			4,169			6,266			5,695			(191	)		(4,862	)

Long-term debt ⁽⁴⁾		20,256			18,389			17,282			16,798			16,231			1,867			4,025


Total interest-bearing liabilities ⁽⁴⁾		173,309			171,986			169,724			165,650			161,559			1,323			11,750

Noninterest-bearing deposit liabilities		162			179			212			207			181			(17	)		(19	)

Other liabilities		6,760			6,662			6,809			6,435			6,408			98			352


Total liabilities	$	180,231		$	178,827		$	176,745		$	172,292		$	168,148		$	1,404		$	12,083

Equity

Total equity	$	13,790		$	13,485		$	12,789		$	14,180		$	14,469		$	305		$	(679	)


Total liabilities and equity	$	194,021		$	192,312		$	189,534		$	186,472		$	182,617		$	1,709		$	11,404

(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 $824 million in 2Q23, $835 million in 1Q23, $847 million in 4Q22, $858 million in 3Q22, and $868 million in 2Q22.


2Q 2023 Preliminary Results		7

ALLY FINANCIAL INC.

SEGMENT HIGHLIGHTS


($ in millions)
	QUARTERLY TRENDS															CHANGE VS.
Pre-tax Income / (Loss)	2Q 23			1Q 23			4Q 22			3Q 22			2Q 22			1Q 23			2Q 22

Automotive Finance	$	501		$	442		$	437		$	488		$	600		$	59		$	(99	)

Insurance		8			92			101			(30	)		(122	)		(84	)		130


Dealer Financial Services		509			534			538			458			478			(25	)		31

Corporate Finance		72			72			67			91			60			—			12

Mortgage Finance		21			21			19			19			6			—			15

Corporate and Other ⁽¹⁾		(199	)		(239	)		(179	)		(151	)		90			40			(289	)


Pre-tax income from continuing operations	$	403		$	388		$	445		$	417		$	634		$	15		$	(231	)

Core OID ⁽²⁾⁽⁴⁾		12			11			11			11			10			0			2

Change in the fair value of equity securities ⁽³⁾		(25	)		(65	)		(49	)		62			136			40			(161	)

Repositioning ⁽⁴⁾		—			—			57			20			—			—			—


Core pre-tax income ⁽⁴⁾	$	390		$	335		$	464		$	510		$	780		$	56		$	(390	)

(1)

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

(2)

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

(3)

For more details refer to pages 25-27.

(4)

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


2Q 2023 Preliminary Results		8

ALLY FINANCIAL INC.

AUTOMOTIVE FINANCE - CONDENSED FINANCIAL STATEMENTS


($ in millions)
	QUARTERLY TRENDS															CHANGE VS.
Income Statement	2Q 23			1Q 23			4Q 22			3Q 22			2Q 22			1Q 23			2Q 22

Net financing revenue

Consumer	$	1,649		$	1,576		$	1,555		$	1,461		$	1,362		$	73		$	287

Commercial		335			299			252			189			142			36			193

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

Operating leases		392			402			400			397			396			(10	)		(4	)


Total financing revenue and other interest income		2,377			2,280			2,209			2,047			1,900			97			477

Interest expense		828			732			644			506			380			96			448

Depreciation expense on operating lease assets:

Depreciation expense on operating lease assets (ex. remarketing)		271			272			271			277			269			(2	)		1

Remarketing gains		70			47			31			39			50			23			20


Total depreciation expense on operating lease assets		200			226			240			238			219			(26	)		(19	)


Net financing revenue		1,349			1,322			1,325			1,303			1,301			27			48

Other revenue


Total other revenue		83			77			92			74			72			6			11


Total net revenue		1,432			1,399			1,417			1,377			1,373			33			59

Provision for credit losses		331			351			376			328			228			(20	)		103

Noninterest expense

Compensation and benefits		160			181			154			155			152			(21	)		8

Other operating expenses		440			425			450			406			393			15			47


Total noninterest expense		600			606			604			561			545			(6	)		55


Pre-tax Income	$	501		$	442		$	437		$	488		$	600		$	59		$	(99	)


Memo: Net lease revenue

Operating lease revenue	$	392		$	402		$	400		$	397		$	396		$	(10	)	$	(4	)

Depreciation expense on operating lease assets (ex. remarketing)		271			272			271			277			269			(2	)		1

Remarketing gains, net of repo valuation		70			47			31			39			50			23			20


Total depreciation expense on operating lease assets		200			226			240			238			219			(26	)		(19	)


Net lease revenue	$	192		$	176		$	160		$	159		$	177		$	16		$	15


Balance Sheet (Period-End)

Cash, trading and investment securities	$	—		$	—		$	—		$	—		$	23		$	—		$	(23	)

Loans held-for-sale, net		10			19			6			6			—			(9	)		10

Consumer loans		84,725			84,042			83,903			84,116			82,191			683			2,534

Commercial loans		20,732			19,266			18,784			16,163			16,109			1,466			4,623

Allowance for loan losses		(3,103	)		(3,053	)		(3,053	)		(3,024	)		(2,914	)		(50	)		(189	)


Total finance receivables and loans, net		102,354			100,255			99,634			97,255			95,386			2,099			6,968

Investment in operating leases, net		9,930			10,236			10,444			10,577			10,516			(306	)		(586	)

Other assets		1,463			1,450			1,379			1,276			1,253			13			210


Total assets	$	113,757		$	111,960		$	111,463		$	109,114		$	107,178		$	1,797		$	6,579


2Q 2023 Preliminary Results		9

ALLY FINANCIAL INC.

AUTOMOTIVE FINANCE - KEY STATISTICS


	QUARTERLY TRENDS										CHANGE VS.
*U.S. Consumer Originations ⁽¹⁾($ in billions)***	2Q 23		1Q 23		4Q 22		3Q 22		2Q 22		1Q 23			2Q 22

Retail standard - new vehicle GM	$	1.1	$	1.0	$	1.2	$	1.2	$	1.1	$	0.1		$	0.0

Retail standard - new vehicle Stellantis		0.8		0.7		0.7		0.9		0.9		0.1			(0.1	)

Retail standard - new vehicle Growth		1.0		1.0		1.0		1.2		1.2		0.0			(0.2	)

Used vehicle		6.6		6.1		5.5		7.9		9.1		0.5			(2.5	)

Lease		0.8		0.8		0.7		1.1		0.9		—			(0.1	)

Retail subvented		0.0		0.0		0.0		0.0		0.0		0.0			0.0


Total originations	$	10.4	$	9.5	$	9.2	$	12.3	$	13.3	$	0.8		$	(2.9	)

U.S. Consumer Originations - FICO Score

Super prime (760-999)	$	2.4	$	1.8	$	1.8	$	2.1	$	2.0	$	0.6		$	0.3

High prime (720-759)		1.4		1.2		1.3		1.6		1.7		0.2			(0.2	)

Prime (660-719)		3.1		2.8		2.8		4.0		4.3		0.2			(1.3	)

Prime/Near (620-659)		1.8		2.0		1.8		2.6		3.0		(0.2	)		(1.2	)

Non-Prime (540-619)		0.7		0.8		0.6		0.9		1.2		(0.1	)		(0.4	)

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

No FICO (Primarily CSG)		0.8		0.8		0.9		0.9		0.9		0.0			(0.1	)


Total originations	$	10.4	$	9.5	$	9.2	$	12.3	$	13.3	$	0.8		$	(2.9	)

U.S. Consumer Retail Originations - Average FICO

New vehicle		709		700		707		699		698		9			11

Used vehicle		698		687		693		684		682		10			16

Total retail originations		701		691		697		688		685		10			15

U.S. Market

New light vehicle sales (SAAR - units in millions)		16.2		15.8		14.8		13.9		13.3		0.4			2.9

New light vehicle sales (quarterly - units in millions)		4.1		3.5		3.5		3.4		3.5		0.5			0.6

Dealer Engagement

Total Active DFS Dealers ⁽²⁾		22,171		22,136		21,869		21,864		21,570		35			601

Total Application Volume (000s)		3,517		3,318		2,866		3,149		3,296		199			221

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

Floorplan outstandings	$	14.6	$	13.3	$	13.0	$	10.8	$	11.0	$	1.3		$	3.6

Dealer loans and other		6.1		5.9		5.7		5.3		5.1		0.2			1.0


Total Commercial outstandings	$	20.7	$	19.3	$	18.8	$	16.2	$	16.1	$	1.5		$	4.6

U.S. Off-Lease Remarketing

Off-lease vehicles terminated - on-balance sheet (# in units)		29,872		24,163		20,919		29,562		29,665		5,709			207

Average gain per vehicle	$	2,335	$	1,932	$	1,476	$	1,325	$	1,671	$	403		$	663

Total gain ($ in millions)	$	70	$	47	$	31	$	39	$	50	$	23		$	20

(1)

Some standard rate loan originations contain manufacturer sponsored cash back rebate incentives. Some lease originations contain rate subvention. While Ally may jointly develop marketing programs for these originations, Ally does not have exclusive rights to such originations under operating agreements with manufacturers.

(2)

A dealer is considered to have an active relationship with us if we provided automotive financing, remarketing, or insurance services during the three months ended June 30, 2023.


2Q 2023 Preliminary Results		10

ALLY FINANCIAL INC.

INSURANCE - CONDENSED FINANCIAL STATEMENTS AND KEY STATISTICS


($ in millions)	QUARTERLY TRENDS															CHANGE VS.
Income Statement *(GAAP View)*	2Q 23			1Q 23			4Q 22			3Q 22			2Q 22			1Q 23			2Q 22

Net financing revenue

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

Interest and dividends on investment securities		31			29			32			28			29			2			2

Interest bearing cash		2			3			1			1			—			(1	)		2


Total financing revenue and other interest revenue		36			34			35			31			31			2			5

Interest expense		7			8			7			7			11			(1	)		(4	)


Net financing revenue		29			26			28			24			20			3			9

Other revenue

Insurance premiums and service revenue earned		310			306			302			289			280			4			30

Other gain / (loss) on investments, net		25			72			54			(56	)		(127	)		(47	)		152

Other income, net of losses		2			3			3			3			5			(1	)		(3	)


Total other revenue		337			381			359			236			158			(44	)		179


Total net revenue		366			407			387			260			178			(41	)		188

Noninterest expense

Compensation and benefits expense		27			28			23			26			24			(1	)		3

Insurance losses and loss adjustment expenses		134			88			63			70			89			46			45

Other operating expenses		197			199			200			194			187			(2	)		10


Total noninterest expense		358			315			286			290			300			43			58


Pre-tax (loss)	$	8		$	92		$	101		$	(30	)	$	(122	)	$	(84	)	$	130


Memo: Income Statement (Managerial View)

Insurance premiums and other income

Insurance premiums and service revenue earned	$	310		$	306		$	302		$	289		$	280		$	4		$	30

Investment income and other (adjusted) ⁽²⁾		30			33			33			30			29			(3	)		1

Other income		2			3			3			3			5			(1	)		(3	)


Total insurance premiums and other income		342			342			338			322			314			—			28

Expense

Insurance losses and loss adjustment expenses		134			88			63			70			89			46			45

Acquisition and underwriting expenses

Compensation and benefit expense		27			28			23			26			24			(1	)		3

Insurance commission expense		158			157			158			152			151			1			7

Other expense		39			42			42			42			36			(3	)		3


Total acquistion and underwriting expense		224			227			223			220			211			(3	)		13


Total expense		358			315			286			290			300			43			58


Core pre-tax (loss) / income ⁽²⁾		(16	)		27			52			32			14			(43	)		(30	)

Change in the fair value of equity securities ⁽³⁾		24			65			49			(62	)		(136	)		(41	)		160


Income (loss) before income tax expense	$	8		$	92		$	101		$	(30	)	$	(122	)	$	(84	)	$	130


Balance Sheet (Period-End)

Cash and investment securities	$	5,280		$	5,331		$	5,252		$	5,161		$	5,407		$	(51	)	$	(127	)

Intercompany loans⁽¹⁾		510			523			417			390			411			(13	)		99

Premiums receivable and other insurance assets		2,783			2,728			2,712			2,731			2,755			55			28

Other assets		317			285			278			251			246			32			71


Total assets	$	8,890		$	8,867		$	8,659		$	8,533		$	8,819		$	23		$	71


Key Statistics

Total written premiums and revenue ⁽⁴⁾	$	299		$	307		$	285		$	291		$	262		$	(8	)	$	37

Loss ratio ⁽⁵⁾		43.0	%		28.3	%		20.6	%		23.9	%		31.2	%

Underwriting expense ratio ⁽⁶⁾		71.5	%		73.7	%		73.0	%		74.8	%		74.8	%


Combined ratio		114.6	%		102.0	%		93.6	%		98.7	%		106.0	%

(1)

Intercompany activity represents excess liquidity placed with corporate segment.

(2)

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

(3)

For more details refer to pages 25-27.

(4)

Written premiums are net of ceded premium for reinsurance.

(5)

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

(6)

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


2Q 2023 Preliminary Results		11

ALLY FINANCIAL INC.

MORTGAGE FINANCE - CONDENSED FINANCIAL STATEMENTS


($ in millions)
	QUARTERLY TRENDS															CHANGE VS.
Income Statement	2Q 23			1Q 23			4Q 22			3Q 22			2Q 22			1Q 23			2Q 22

Net financing revenue

Total financing revenue and other interest income	$	151		$	153		$	155		$	151		$	139		$	(2	)	$	12

Interest expense		98			99			100			94			83			(1	)		15


Net financing revenue		53			54			55			57			56			(1	)		(3	)

Gain on mortgage loans, net		5			4			1			7			4			1			1

Other income, net of losses		—			—			1			—			—			—			—


Total other revenue		5			4			2			7			4			1			1


Total net revenue		58			58			57			64			60			—			(2	)


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

Noninterest expense

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

Other operating expense		32			32			31			38			48			—			(16	)


Total noninterest expense		37			38			37			43			54			(1	)		(17	)


Pre-tax Income	$	21		$	21		$	19		$	19		$	6		$	—		$	15


Balance Sheet (Period-End)

Finance receivables and loans, net:

Consumer loans	$	18,894		$	19,189		$	19,445		$	19,715		$	18,923		$	(295)		$	(29	)

Allowance for loan losses		(20	)		(20	)		(22	)		(21	)		(20	)		—			—


Total finance receivables and loans, net		18,874			19,169			19,423			19,694			18,903			(295	)		(29	)

Loans held for sale, net		36			24			13			44			81			12			(45	)

Other assets		87			97			93			124			142			(10	)		(55	)


Total assets	$	18,997		$	19,290		$	19,529		$	19,862		$	19,126		$	(293)		$	(129	)


2Q 2023 Preliminary Results		12

ALLY FINANCIAL INC.

CORPORATE FINANCE - CONDENSED FINANCIAL STATEMENTS


($ in millions)
	QUARTERLY TRENDS															CHANGE VS.
Income Statement	2Q 23			1Q 23			4Q 22			3Q 22			2Q 22			1Q 23			2Q 22

Net financing revenue

Total financing revenue and other interest income	$	234		$	234		$	199		$	148		$	104		$	—		$	130

Interest expense		142			131			105			68			27			11			115


Net financing revenue		92			103			94			80			77			(11	)		15

Total other revenue		28			29			25			54			19			(1	)		9


Total net revenue		120			132			119			134			96			(12	)		24

Provision for loan losses		15			15			16			13			8			—			7

Noninterest expense

Compensation and benefits expense		17			28			20			17			15			(11	)		2

Other operating expense		16			17			16			13			13			(1	)		3


Total noninterest expense		33			45			36			30			28			(12	)		5


Pre-tax income	$	72		$	72		$	67		$	91		$	60		$	—		$	12


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


Core pre-tax income ⁽²⁾	$	71		$	72		$	67		$	91		$	60		$	(1	)	$	11


Balance Sheet (Period-End)

Equity securities	$	6		$	5		$	6		$	6		$	3		$	1		$	3

Loans held for sale, net		48			266			445			544			517			(218	)		(469	)

Commercial loans		10,132			10,003			10,147			9,355			8,475			129			1,657

Allowance for loan losses		(176	)		(217	)		(202	)		(186	)		(203	)		41			27


Total finance receivables and loans, net		9,956			9,786			9,945			9,169			8,272			170			1,684

Other assets		180			169			148			121			98			11			82


Total assets	$	10,190		$	10,226		$	10,544		$	9,840		$	8,890		$	(36	)	$	1,300

(1)

For more details refer to pages 25-27.

(2)

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


2Q 2023 Preliminary Results		13

ALLY FINANCIAL INC.

CORPORATE AND OTHER - CONDENSED FINANCIAL STATEMENTS


($ in millions)	QUARTERLY TRENDS															CHANGE VS.
Income Statement	2Q 23			1Q 23			4Q 22			3Q 22			2Q 22			1Q 23			2Q 22

Net financing revenue

Total financing revenue and other interest income		656			585			501			384			276			71			380

Interest expense		606			488			329			129			(34	)		118			640


Net financing revenue		50			97			172			255			310			(47	)		(260	)

Other revenue

Other gain on investments, net		—			3			—			2			2			(3	)		(2	)

Other income, net of losses ⁽¹⁾		53			4			49			(76	)		57			49			(4	)


Total other revenue		53			7			49			(74	)		59			46			(6	)


Total net revenue		103			104			221			181			369			(1	)		(266	)

Provision for loan losses		81			81			97			95			68			—			13

Noninterest expense

Compensation and benefits expense		239			294			300			264			240			(55	)		(1	)

Other operating expense ⁽²⁾		(18	)		(32	)		3			(27	)		(29	)		14			11


Total noninterest expense		221			262			303			237			211			(41	)		10


Pre-tax (loss) income	$	(199	)	$	(239	)	$	(179	)	$	(151	)	$	90		$	40		$	(289	)


Change in the fair value of equity securities ⁽³⁾		0			0			0			0			0			0			0

Core OID ⁽⁴⁾		12			11			11			11			10			0			2

Repositioning ⁽³⁾		—			—			57			20			—			—			—


Core pre-tax (loss) income ⁽⁴⁾	$	(187	)	$	(228	)	$	(111	)	$	(120	)	$	101		$	40		$	(288	)


Balance Sheet (Period-End)

Cash, trading and investment securities	$	35,139		$	35,659		$	31,597		$	31,181		$	32,324		$	(520	)	$	2,815

Loans held-for-sale, net		203			215			190			214			200			(12	)		3

Consumer loans		3,751			3,584			3,262			2,889			2,569			167			1,182

Commercial loans		215			220			207			218			190			(5	)		25

Intercompany loans⁽⁵⁾		(510	)		(523	)		(417	)		(390	)		(411	)		13			(99	)

Allowance for loan losses		(482	)		(461	)		(434	)		(380	)		(313	)		(21	)		(169	)


Total finance receivables and loans, net		2,974			2,820			2,618			2,337			2,035			154			939

Other assets		7,091			7,128			7,226			7,559			7,131			(37	)		(40	)

Total assets	$	45,407		$	45,822		$	41,631		$	41,291		$	41,690		$	(415	)	$	3,717


Core OID Amortization Schedule ⁽⁴⁾		2023			2024			2025			2026			2027 & After


Remaining Core OID amortization expense	$	25		$	56		$	66		$	77			Avg = $124/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 $331 million for 2Q23, $334 million for 1Q23, $350 million for 4Q22, $321 million for 3Q22, and $307 million for 2Q22. The receiving business segment records the allocation of corporate overhead expense within other operating expenses.

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

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

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


2Q 2023 Preliminary Results		14

ALLY FINANCIAL INC.

CREDIT RELATED INFORMATION


($ in millions)

	QUARTERLY TRENDS															CHANGE VS.

Asset Quality - Consolidated ⁽¹⁾	2Q 23			1Q 23			4Q 22			3Q 22			2Q 22			1Q 23			2Q 22

Ending loan balance	$	138,449		$	136,302		$	135,745		$	132,450		$	128,450		$	2,147		$	9,998

30+ Accruing DPD	$	3,169		$	2,834		$	3,128		$	2,608		$	2,198		$	335		$	971

30+ Accruing DPD %		2.29	%		2.08	%		2.30	%		1.97	%		1.71	%

60+ Accruing DPD	$	841		$	707		$	779		$	609		$	491		$	134		$	350

60+ Accruing DPD %		0.61	%		0.52	%		0.57	%		0.46	%		0.38	%

Non-performing loans (NPLs)	$	1,404		$	1,384		$	1,454		$	1,383		$	1,380		$	20		$	24

Net charge-offs (NCOs)	$	399		$	409		$	390		$	276		$	153		$	(10	)	$	246

Net charge-off rate ⁽²⁾		1.16	%		1.20	%		1.16	%		0.85	%		0.49	%

Provision for loan losses	$	427		$	446		$	490		$	438		$	304		$	(19	)	$	123

Allowance for loan losses (ALLL)	$	3,781		$	3,751		$	3,711		$	3,611		$	3,450		$	29		$	331

ALLL as % of Loans ⁽³⁾⁽⁴⁾		2.72	%		2.74	%		2.72	%		2.71	%		2.68	%

ALLL as % of NPLs ⁽³⁾		269	%		271	%		255	%		261	%		250	%

ALLL as % of NCOs ⁽³⁾		237	%		230	%		238	%		n/m			n/m

US Auto Delinquencies - HFI Retail Contract $‘s

30+ Delinquent contract $	$	3,032		$	2,714		$	2,962		$	2,442		$	2,061		$	318		$	971

% of retail contract $ outstanding		3.60	%		3.24	%		3.56	%		2.93	%		2.52	%

60+ Delinquent contract $	$	796		$	666		$	738		$	577		$	470

% of retail contract $ outstanding		0.94	%		0.80	%		0.89	%		0.69	%		0.57	%

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

Net charge-offs	$	277		$	351		$	347		$	217		$	108		$	(75	)	$	169

% of avg. HFI assets ⁽²⁾		1.32	%		1.68	%		1.66	%		1.05	%		0.54	%

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

Net charge-offs	$	4		$	0		$	0		$	0		$	(1	)	$	4		$	6

% of avg. HFI assets ⁽²⁾		0.09	%		—	%		—	%		—	%		(0.03	)%

(1) Loans within this table are classified as held-for-investment recorded at amortized cost as these loans are included in our allowance for loan losses.

(2) Net charge-off ratios are calculated as annualized net charge-offs divided by average outstanding finance recievables and loans excluding loans measured at fair value, conditional repurchase loans and loans held-for-sale during the year for each loan category.

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

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


2Q 2023 Preliminary Results		15

ALLY FINANCIAL INC.

CREDIT RELATED INFORMATION, CONTINUED


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

*Consumer*	2Q 23		1Q 23		4Q 22		3Q 22		2Q 22		1Q 23		2Q 22
Allowance for loan losses	$	3,064	$	3,022	$	3,020	$	2,993	$	2,885	$	42	$	179

Total consumer loans ⁽²⁾	$	84,294	$	83,640	$	83,286	$	83,459	$	81,691	$	654	$	2,603

Coverage ratio ⁽³⁾		3.62%		3.60%		3.60%		3.56%		3.51%

Commercial

Allowance for loan losses	$	39	$	31	$	33	$	30	$	30	$	8	$	9

Total commercial loans	$	20,732	$	19,266	$	18,784	$	16,163	$	16,108	$	1,466	$	4,624

Coverage ratio		0.19%		0.16%		0.18%		0.19%		0.18%

Mortgage ⁽¹⁾

*Consumer*

Mortgage Finance

Allowance for loan losses	$	20	$	20	$	22	$	21	$	20	$	—	$	—

Total consumer loans	$	18,894	$	19,189	$	19,445	$	19,715	$	18,923	$	(295)	$	(29)

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

Mortgage - Legacy

Allowance for loan losses	$	3	$	3	$	5	$	6	$	6	$	—	$	(3)

Total consumer loans	$	255	$	272	$	290	$	306	$	322	$	(17)	$	(67)

Coverage ratio		1.28%		1.11%		1.78%		1.86%		1.92%

Total Mortgage

Allowance for loan losses	$	23	$	23	$	27	$	27	$	26	$	—	$	(3)

Total consumer loans	$	19,149	$	19,461	$	19,735	$	20,021	$	19,245	$	(312)	$	(96)

Coverage ratio		0.12%		0.12%		0.14%		0.13%		0.14%

Consumer Other - Ally Lending ⁽¹⁾⁽⁴⁾

Allowance for loan losses	$	210	$	213	$	194	$	167	$	141	$	(3)	$	69

Total consumer loans	$	2,170	$	2,072	$	1,987	$	1,807	$	1,516	$	98	$	654

Coverage ratio		9.68%		10.29%		9.77%		9.22%		9.32%

Consumer Other - Ally Credit Card ⁽¹⁾

Allowance for loan losses	$	266	$	242	$	232	$	205		162	$	24	$	104

Total consumer loans	$	1,757	$	1,640	$	1,599	$	1,427		1,224	$	117	$	533

Coverage ratio		15.14%		14.74%		14.51%		14.40%		13.25%

Corporate Finance ⁽¹⁾

Allowance for loan losses	$	176	$	217	$	202	$	186	$	203	$	(41)	$	(27)

Total commercial loans	$	10,132	$	10,003	$	10,147	$	9,354	$	8,476	$	129	$	1,656

Coverage ratio		1.74%		2.17%		1.99%		1.99%		2.40%

Corporate and Other ⁽¹⁾

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

Total commercial loans	$	215	$	220	$	207	$	219	$	190	$	(5)	$	25

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

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

(2) Includes ($432M) of fair value adjustment for loans in hedge accounting relationships in 2Q23, ($402M) in 1Q23, ($617M) in 4Q22, ($658M) in 3Q22 and ($501M) in 2Q22. (3) Excludes ($432M) of fair value adjustment for loans in hedge accounting relationships in 2Q23, ($402M) in 1Q23, ($617M) in 4Q22, ($658M) in 3Q22 and ($501M) in 2Q22. (4) Unsecured consumer lending from point-of-sale financing.


2Q 2023 Preliminary Results		16

ALLY FINANCIAL INC.

CAPITAL


($ in billions)	QUARTERLY TRENDS										CHANGE VS.

Capital	2Q 23		1Q 23		4Q 22		3Q 22		2Q 22		1Q 23		2Q 22
Risk-weighted assets	$	159.1	$	157.6	$	157.3	$	155.2	$	152.3	$	1.5	$	6.8
Common Equity Tier 1 (CET1) capital ratio		9.3%		9.2%		9.3%		9.3%		9.6%
Tier 1 capital ratio		10.7%		10.7%		10.7%		10.8%		11.1%
Total capital ratio		12.5%		12.5%		12.2%		12.4%		12.7%
Tangible common equity / Tangible assets ⁽¹⁾⁽²⁾		5.3%		5.2%		5.0%		4.9%		5.8%
Tangible common equity / Risk-weighted assets ⁽¹⁾		6.5%		6.4%		6.1%		5.9%		7.1%
Shareholders’ equity	$	13.5	$	13.4	$	12.9	$	12.4	$	14.0	$	0.1	$	(0.5)
add: CECL phase-in adjustment		0.6		0.6		0.9		0.9		0.9		—		(0.3)
less: Certain AOCI items and other adjustments		3.0		2.9		3.2		3.4		2.1		0.1		0.9
Preferred equity		(2.3)		(2.3)		(2.3)		(2.3)		(2.3)		—		—

Common Equity Tier 1 capital	$	14.8	$	14.5	$	14.6	$	14.4	$	14.7	$	0.3	$	0.1


Common Equity Tier 1 capital	$	14.8	$	14.5	$	14.6	$	14.4	$	14.7	$	0.3	$	0.1
add: Preferred equity		2.3		2.3		2.3		2.3		2.3		—		—
less: Other adjustments		(0.1)		(0.1)		—		—		—		—		(0.1)

Tier 1 capital	$	17.1	$	16.8	$	16.9	$	16.7	$	16.9	$	0.3	$	0.2


Tier 1 capital	$	17.1	$	16.8	$	16.9	$	16.7	$	16.9	$	0.3	$	0.2
add: Qualifying subordinated debt		0.9		0.9		0.4		0.6		0.6		—		0.3
Allowance for loan and lease losses includible in Tier 2 capital and other adjustments		1.9		1.9		1.9		1.9		1.9		—		—

Total capital	$	19.9	$	19.6	$	19.2	$	19.2	$	19.4	$	0.3	$	0.5

Total shareholders’ equity	$	13.5	$	13.4	$	12.9	$	12.4	$	14.0	$	0.1	$	(0.5)
less: Preferred equity		(2.3)		(2.3)		(2.3)		(2.3)		(2.3)		—		—
Goodwill and intangible assets, net of deferred tax liabilities		(0.9)		(0.9)		(0.9)		(0.9)		(0.9)		—		—

Tangible common equity ⁽¹⁾	$	10.3	$	10.2	$	9.6	$	9.2	$	10.7	$	0.1	$	(0.4)

Total assets	$	197.2	$	196.2	$	191.8	$	188.6	$	185.7	$	1.0	$	11.5
less: Goodwill and intangible assets, net of deferred tax liabilities		(0.9)		(0.9)		(0.9)		(0.9)		(0.9)		—		—

Tangible assets ⁽²⁾	$	196.4	$	195.3	$	190.9	$	187.7	$	184.8	$	1.1	$	11.6

Note: Numbers may not foot due to rounding

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

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

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


2Q 2023 Preliminary Results		17

ALLY FINANCIAL INC.

LIQUIDITY AND DEPOSITS


	QUARTERLY TRENDS										CHANGE VS.
Consolidated Available Liquidity ($ in billions)	2Q 23		1Q 23		4Q 22		3Q 22		2Q 22		1Q 23			2Q 22

Liquid cash and cash equivalents ⁽¹⁾	$	9.5	$	9.3	$	5.1	$	4.6	$	3.7	$	0.2		$	5.8

Highly liquid securities ⁽²⁾		20.7		21.5		22.2		22.7		24.6		(0.8	)		(3.9	)


Subtotal	$	30.2	$	30.8	$	27.3	$	27.3	$	28.3	$	(0.6	)	$	1.9


FHLB Unused Pledged Borrowing Capacity		12.3		12.2		11.1		6.1		6.1		0.1			6.2


Total current available liquidity	$	42.5	$	42.9	$	38.4	$	33.4	$	34.4	$	(0.4	)	$	8.1


Unsecured Long-Term Debt Maturity Profile	2023		2024		2025		2026		2027		2028 & After

Consolidated remaining maturities ⁽³⁾	$	1.2	$	1.5	$	2.3	$	—	$	1.5	$	4.6

Ally Bank Deposits

Key Deposit Statistics

Average retail CD maturity (months)		16.2		18.7		19.4		21.3		20.7		(2.5	)		(4.5	)

Average retail deposit rate		3.68%		3.16%		2.45%		1.50%		0.71%

End of Period Deposit Levels ($ in millions)

Retail	$	138,983	$	138,497	$	137,684	$	133,878	$	131,155	$	486		$	7,828

Brokered & other		15,327		15,516		14,613		11,873		9,246		(189	)		6,081


Total deposits	$	154,310	$	154,013	$	152,297	$	145,751	$	140,401	$	297		$	13,909


Deposit Mix

Retail CD		27%		25%		20%		20%		23%

MMA/OSA/Checking		63%		65%		71%		72%		71%

Brokered & other		10%		10%		9%		8%		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, Agency MBS, and highly liquid Corporates.

(3)

Excludes retail notes; as of 6/30/2023. Reflects notional value of outstanding bond. Excludes total GAAP OID and capitalized transaction costs.


2Q 2023 Preliminary Result		18

ALLY FINANCIAL INC.

NET INTEREST MARGIN


($ in millions)	QUARTERLY TRENDS										CHANGE VS.

Average Balance Details	2Q 23		1Q 23		4Q 22		3Q 22		2Q 22		1Q 23		2Q 22

Retail Auto Loans	$	84,097	$	83,615	$	83,781	$	82,362	$	79,695	$	482	$	4,402

Auto Lease (net of dep)		10,110		10,435		10,546		10,588		10,615		(325)		(505)

Dealer Floorplan		13,764		12,893		11,822		10,886		11,372		871		2,392

Other Dealer Loans		5,945		5,756		5,462		5,059		4,839		189		1,106

Corporate Finance		10,240		10,606		10,181		9,291		8,351		(366)		1,889

Mortgage⁽¹⁾		19,325		19,621		19,876		19,762		18,980		(296)		345

Consumer Other - Ally Lending		2,114		2,037		1,904		1,672		1,346		77		768

Consumer Other - Ally Credit Card		1,701		1,618		1,486		1,300		1,093		83		608

Cash and Cash Equivalents		7,401		5,731		4,129		3,627		3,761		1,670		3,640

Investment Securities and Other		31,958		32,578		32,513		34,578		35,050		(620)		(3,092)

Total Earning Assets	$	186,655	$	184,891	$	181,698	$	179,125	$	175,103	$	1,764	$	11,552
Interest Revenue		3,254		3,060		2,859		2,523		2,231		194		1,023

Unsecured Debt (ex. Core OID balance) ⁽²⁾	$	11,442	$	11,193	$	10,447	$	10,046	$	9,674	$	249	$	1,768

Secured Debt		2,879		2,552		1,917		1,374		1,154		327		1,725

Deposits ⁽³⁾		152,382		152,752		148,485		142,793		139,814		(370)		12,568

Other Borrowings		7,592		6,503		9,934		12,502		11,966		1,089		(4,374)

Total Funding Sources (ex. Core OID balance) ⁽²⁾	$	174,295	$	173,000	$	170,783	$	166,715	$	162,608	$	1,295	$	11,687

Interest Expense (ex. Core OID) ⁽²⁾		1,669		1,447		1,174		793		457		222		1,212

Net Financing Revenue (ex. Core OID) ⁽²⁾	$	1,585	$	1,613	$	1,685	$	1,730	$	1,774	$	(28)	$	(189)

Net Interest Margin (yield details)

Retail Auto Loan		8.81%		8.49%		7.98%		7.29%		6.82%		0.32%		1.99%

Retail Auto Loan (excl. hedge impact)		7.87%		7.66%		7.37%		7.04%		6.85%		0.21%		1.02%

Auto Lease (net of dep)		7.60%		6.84%		6.02%		5.98%		6.66%		0.76%		0.94%

Dealer Floorplan		7.71%		7.29%		6.42%		5.03%		3.45%		0.42%		4.26%

Other Dealer Loans		5.16%		5.04%		4.82%		4.33%		4.13%		0.12%		1.03%

Corporate Finance		9.15%		8.96%		7.78%		6.30%		5.02%		0.19%		4.13%

Mortgage		3.22%		3.25%		3.17%		3.10%		3.01%		(0.03)%		0.21%

Consumer Other - Ally Lending		9.99%		9.97%		10.37%		11.04%		11.94%		0.02%		(1.95)%

Consumer Other - Ally Credit Card		21.88%		21.84%		21.75%		21.17%		19.71%		0.04%		2.17%

Cash and Cash Equivalents		4.70%		3.95%		2.94%		1.73%		0.61%		0.75%		4.09%

Investment Securities and Other		3.17%		3.04%		2.89%		2.55%		2.35%		0.13%		0.82%

Total Earning Assets		6.99%		6.71%		6.24%		5.59%		5.11%		0.28%		1.88%

Unsecured Debt (ex. Core OID & Core OID balance) ⁽²⁾		5.40%		5.34%		5.12%		4.99%		5.04%		0.06%		0.36%

Secured Debt		5.61%		6.04%		4.73%		6.08%		6.61%		(0.43)%		(1.00)%

Deposits ⁽³⁾		3.74%		3.23%		2.53%		1.58%		0.76%		0.51%		2.98%

Other Borrowings ⁽⁴⁾		3.00%		2.74%		2.80%		2.48%		1.75%		0.26%		1.25%

Total Funding Sources (ex. Core OID & Core OID balance) ⁽²⁾		3.84%		3.39%		2.73%		1.89%		1.12%		0.45%		2.72%

NIM (as reported)		3.38%		3.51%		3.65%		3.81%		4.04%		(0.13)%		(0.66)%

NIM (ex. Core OID & Core OID balance) ⁽²⁾		3.41%		3.54%		3.68%		3.83%		4.06%		(0.13)%		(0.65)%

(1)

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

(2)

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

(3)

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

(4)

Includes FHLB Borrowings, Repurchase Agreements and other.


2Q 2023 Preliminary Results		19

ALLY FINANCIAL INC.

ALLY BANK CONSUMER MORTGAGE HFI PORTFOLIOS (PERIOD-END)


($ in billions)	QUARTERLY TRENDS
Mortgage Finance HFI Portfolio	2Q 23		1Q 23		4Q 22		3Q 22		2Q 22
Loan Value

Gross carry value	$	18.9	$	19.2	$	19.4	$	19.7	$	18.9

Net carry value	$	18.9	$	19.2	$	19.4	$	19.7	$	18.9

Estimated Pool Characteristics

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

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

% 30+ Day delinquent⁽¹⁾⁽²⁾		0.4%		0.4%		0.6%		0.7%		0.7%

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

% Non-primary residence		4.1%		4.1%		4.4%		4.4%		4.1%

Refreshed FICO⁽³⁾		782		781		781		780		779

Wtd. Avg. LTV/CLTV ⁽⁴⁾		54.5%		55.0%		54.6%		54.2%		53.7%

Corporate Other Legacy Mortgage HFI Portfolio
Loan Value

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

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

Estimated Pool Characteristics

% Second lien		12.5%		12.9%		13.0%		13.3%		13.9%

% Interest only		0.0%		0.0%		0.1%		0.1%		0.1%

% 30+ Day delinquent⁽¹⁾⁽²⁾		6.6%		6.5%		6.4%		5.6%		7.2%

% Low/No documentation		24.8%		24.2%		23.6%		23.4%		23.6%

% Non-primary residence		3.4%		3.3%		3.3%		3.4%		3.3%

Refreshed FICO⁽³⁾		742		741		742		743		740

Wtd. Avg. LTV/CLTV ⁽⁴⁾		48.1%		48.1%		47.4%		47.6%		49.1%

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

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

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

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


2Q 2023 Preliminary Results		20

ALLY FINANCIAL INC.

EARNINGS PER SHARE RELATED INFORMATION


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

Earnings Per Share Data		2Q 23			1Q 23			4Q 22			3Q 22			2Q 22			1Q 23			2Q 22

GAAP net income attributable to common shareholders		$	301		$	291		$	251		$	272		$	454		$	10		$	(153	)

Weighted-average common shares outstanding - basic			303,684			302,657			301,279			308,220			322,057			1,027			(18,373	)

Weighted-average common shares outstanding - diluted			304,646			303,448			303,062			310,086			324,027			1,197			(19,382	)

Issued shares outstanding (period-end)			301,619			300,821			299,324			300,335			312,781			798			(11,163	)


Net income per share - basic		$	0.99		$	0.96		$	0.83		$	0.88		$	1.41		$	0.03		$	(0.42	)


Net income per share - diluted		$	0.99		$	0.96		$	0.83		$	0.88		$	1.40		$	0.03		$	(0.41	)


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

Numerator

GAAP net income attributable to common shareholders		$	301		$	291		$	251		$	272		$	454		$	10		$	(153	)

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

Core OID			12			11			11			11			10			—			2

Change in the fair value of equity securities ⁽³⁾			(25	)		(65	)		(49	)		62			136			40			(161	)

Core OID, repositioning & change in the fair value of equity securities tax (tax rate 21%)			3			11			(4	)		(20	)		(31	)		(8	)		34

Repositioning ⁽³⁾			—			—			57			20			—			—			—

Significant discrete tax items			—			—			61			—			—			—			—


Core net income attributable to common shareholders ⁽¹⁾		$	291		$	250		$	327		$	346		$	570		$	41		$	(279	)

Denominator

Weighted-average common shares outstanding - diluted			304,646			303,448			303,062			310,086			324,027			1,197			(19,382	)

Adjusted EPS ⁽²⁾		$	0.96		$	0.82		$	1.08		$	1.12		$	1.76		$	0.13		$	(0.80	)

GAAP original issue discount amortization expense		$	15		$	15		$	14		$	13		$	13		$	0		$	2

Other OID			3			3			3			3			2			—			1


Core original issue discount (Core OID) amortization expense ⁽¹⁾		$	12		$	11		$	11		$	11		$	10		$	—		$	2


GAAP outstanding original issue discount balance		$	(863	)	$	(878	)	$	(882	)	$	(888	)	$	(901	)	$	15		$	39

Other outstanding OID balance			(45	)		(48	)		(40	)		(36	)		(39	)		3			(6	)


Core outstanding original issue discount balance (Core OID balance) ⁽¹⁾		$	(818	)	$	(830	)	$	(841	)	$	(852	)	$	(863	)	$	12		$	45


GAAP Net Financing Revenue	[A]	$	1,573		$	1,602		$	1,674		$	1,719		$	1,764		$	(29	)	$	(191	)

Core OID			12			11			11			11			10			—			2


Net Financing Revenue (ex. Core OID) ⁽¹⁾	[B]	$	1,585		$	1,613		$	1,685		$	1,730		$	1,774		$	(29	)	$	(189	)


GAAP Other Revenue	[C]	$	506		$	498		$	527		$	297		$	312		$	8		$	194

Change in the fair value of equity securities ⁽³⁾			(25	)		(65	)		(49	)		62			136			40			(161	)


Adjusted Other Revenue ⁽¹⁾	[D]	$	481		$	433		$	478		$	359		$	448		$	48		$	33


GAAP Provision Expense		$	427		$	446		$	490		$	438		$	304		$	(19	)	$	123

Adjusted Provision (ex. Repositioning)		$	427		$	446		$	490		$	438		$	304		$	(19	)	$	123


GAAP Noninterest expense	[E]	$	1,249		$	1,266		$	1,266		$	1,161		$	1,138		$	(17	)	$	111

Repositioning and other			—			—			(57	)		(20	)		—			—			—


Adjusted Noninterest Expense ⁽¹⁾	[F]	$	1,249		$	1,266		$	1,209		$	1,141		$	1,138		$	(17	)	$	111


Pre-Provision Net Revenue (PPNR)	[A]+[C]+[E]	$	830		$	834		$	935		$	855		$	938		$	(4	)	$	(108	)

Core Pre-Provision Net Revenue (PPNR) ⁽¹⁾	[B]+[D]+[F]	$	817		$	781		$	954		$	948		$	1,084		$	37		$	(267	)

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

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

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


2Q 2023 Preliminary Results		21

ALLY FINANCIAL INC.

ADJUSTED TANGIBLE BOOK PER SHARE RELATED INFORMATION

LOGO


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

Adjusted Tangible Book Value Per Share (“Adjusted TBVPS”) Information	2Q 23		1Q 23		4Q 22		3Q 22		2Q 22		1Q 23		2Q 22

Numerator

GAAP shareholder’s equity	$	13,532	$	13,378	$	12,859	$	12,434	$	13,984	$	154	$	(452)

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

GAAP common shareholder’s equity	$	11,208	$	11,054	$	10,535	$	10,110	$	11,660	$	154	$	(452)

Goodwill and identifiable intangibles, net of DTLs		(887)		(895)		(902)		(910)		(920)		8		34


Tangible common equity ⁽¹⁾		10,321		10,159		9,633		9,200		10,740		162		(418)

Tax-effected Core OID balance (21% tax rate) ⁽¹⁾		(646)		(656)		(665)		(673)		(682)		9		36

Adjusted tangible book value ⁽²⁾	$	9,675	$	9,504	$	8,968	$	8,527	$	10,058	$	171	$	(383)


Denominator

Issued shares outstanding (period-end, thousands)		301,619		300,821		299,324		300,335		312,781		798		(11,163)

GAAP shareholder’s equity per share	$	44.86	$	44.47	$	42.96	$	41.40	$	44.71	$	0.39	$	0.16

Preferred equity per share		(7.71)		(7.73)		(7.76)		(7.74)		(7.43)		0.02		(0.27)

GAAP common shareholder’s equity per share	$	37.16	$	36.75	$	35.20	$	33.66	$	37.28	$	0.41	$	(0.12)

Goodwill and identifiable intangibles, net of DTLs per share		(2.94)		(2.97)		(3.01)		(3.03)		(2.94)		0.03		—


Tangible common equity per share ⁽¹⁾		34.22		33.77		32.18		30.63		34.34		0.45		(0.12)

Tax-effected Core OID balance (21% tax rate) per share ⁽¹⁾		(2.14)		(2.18)		(2.22)		(2.24)		(2.18)		0.04		0.04


Adjusted tangible book value per share ⁽²⁾	$	32.08	$	31.59	$	29.96	$	28.39	$	32.16	$	0.48	$	(0.08)

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

(2) Adjusted tangible book value per share (Adjusted TBVPS) is a non-GAAP financial measure that reflects the book value of equity attributable to shareholders even if Core OID balance were accelerated immediately through the financial statements. As a result, management believes Adjusted TBVPS provides the reader with an assessment of value that is more conservative than GAAP common shareholder’s equity per share. Adjusted TBVPS generally adjusts common equity for (1) goodwill and identifiable intangibles, net of DTLs, and (2) tax-effected Core OID balance to reduce tangible common equity in the event the corresponding discounted bonds are redeemed/tendered and (3) Series G discount which reduces tangible common equity as the company has normalized its capital structure, as applicable for respective periods.


2Q 2023 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”)	2Q 23			1Q 23			4Q 22			3Q 22			2Q 22			1Q 23			2Q 22

Numerator

GAAP net income attributable to common shareholders	$	301		$	291		$	251		$	272		$	454		$	10		$	(153	)

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

Core OID ⁽²⁾		12			11			11			11			10			0			2

Change in the fair value of equity securities		(25	)		(65	)		(49	)		62			136			40			(161	)

Core OID, repositioning & change in the fair value of equity securities tax (tax rate 21%)		3			11			(4	)		(20	)		(31	)		(9	)		33

Repositioning ⁽²⁾		—			—			57			20			—			—			—

Significant discrete tax items		—			—			61			—			—			—			—


Core net income attributable to common shareholders ⁽¹⁾	$	291		$	250		$	327		$	346		$	570		$	41		$	(279	)

Denominator (average, $ millions)

GAAP shareholder’s equity	$	13,455		$	13,119		$	12,647		$	13,209		$	14,699		$	337		$	(1,244	)

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

Goodwill & identifiable intangibles, net of deferred tax liabilities (“DTLs”)		(891	)		(898	)		(906	)		(915	)		(926	)		8			35


Tangible common equity ⁽¹⁾	$	10,240		$	9,896		$	9,417		$	9,970		$	11,449		$	344		$	(1,208	)

Core OID balance		(824	)		(835	)		(847	)		(858	)		(868	)		12			44

Net deferred tax asset (“DTA”)		(1,060	)		(1,059	)		(1,165	)		(1,068	)		(758	)		(1	)		(301	)


Normalized common equity	$	8,357		$	8,002		$	7,405		$	8,044		$	9,822		$	355		$	(1,466	)

Core Return on Tangible Common Equity ⁽³⁾		13.9	%		12.5	%		17.6	%		17.2	%		23.2	%

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

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

(3) Core return on tangible common equity (Core ROTCE) is a non-GAAP financial measure that management believes is helpful for readers to better understand the ongoing ability of the company to generate returns on its equity base that supports core operations. For purposes of this calculation, tangible common equity is adjusted for Core OID balance and net DTA. Ally’s Core net income attributable to common shareholders for purposes of calculating Core ROTCE is based on the actual effective tax rate for the period adjusted for significant discrete tax items including tax reserve releases, which aligns with the methodology used in calculating adjusted earnings per share.

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

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


2Q 2023 Preliminary Results		23

ALLY FINANCIAL INC.

ADJUSTED EFFICIENCY RATIO RELATED INFORMATION

LOGO


($ in millions)	QUARTERLY TREND															CHANGE VS.

Adjusted Efficiency Ratio Calculation	2Q 23			1Q 23			4Q 22			3Q 22			2Q 22			1Q 23			2Q 22

Numerator

GAAP Noninterest expense	$	1,249		$	1,266		$	1,266		$	1,161		$	1,138		$	(17	)	$	111

Insurance expense		(358	)		(315	)		(286	)		(290	)		(300	)		(43	)		(58	)

Repositioning ⁽²⁾		—			—			(57	)		(20	)		—			—			—


Adjusted noninterest expense for the efficiency ratio	$	891		$	951		$	923		$	851		$	838		$	(60	)	$	53

Denominator

Total net revenue	$	2,079		$	2,100		$	2,201		$	2,016		$	2,076		$	(21	)	$	3

Core OID ⁽²⁾		12			11			11			11			10			0			2

Insurance revenue		(366	)		(407	)		(387	)		(260	)		(178	)		41			(188	)

Adjusted net revenue for the efficiency ratio	$	1,725		$	1,704		$	1,825		$	1,767		$	1,908		$	20		$	(183	)

Adjusted Efficiency Ratio ⁽¹⁾		51.7	%		55.8	%		50.6	%		48.2	%		43.9	%

(1) Adjusted efficiency ratio is a non-GAAP financial measure that management believes is helpful to readers in comparing the efficiency of its core banking and lending businesses with those of its peers. In the numerator of Adjusted efficiency ratio, total noninterest expense is adjusted for Insurance segment expense, Rep and warrant expense, and repositioning and other which is primarily related to the extinguishment of high cost legacy debt, strategic activities and significant one-time items, as applicable for respective periods. In the denominator, total net revenue is adjusted for Insurance segment revenue and Core OID. See page 11 for the combined ratio for the Insurance segment which management uses as a primary measure of underwriting profitability for the Insurance business.

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


2Q 2023 Preliminary Results		24

ALLY FINANCIAL INC.

The following are non-GAAP financial measures which Ally believes are important to the reader of the Consolidated Financial Statements, but which are supplemental to and not a substitute for GAAP measures: Accelerated issuance expense (Accelerated OID), Adjusted earnings per share (Adjusted EPS), Adjusted efficiency ratio, Adjusted noninterest expense, Adjusted other revenue, Adjusted tangible book value per share (Adjusted TBVPS), Adjusted total net revenue, Core net income attributable to common shareholders, Core original issue discount (Core OID) amortization expense, Core outstanding original issue discount balance (Core OID balance), Core pre-provision net revenue (Core PPNR), Core pre-tax income, Core return on tangible common equity (Core ROTCE), Investment income and other (adjusted), Net financing revenue (excluding Core OID), Net interest margin (excluding Core OID), Pre-provision net revenue (PPNR), and Tangible Common Equity. These measures are used by management and we believe are useful to investors in assessing the company’s operating performance and capital.

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

2) Adjusted earnings per share (Adjusted EPS) is a non-GAAP financial measure that adjusts GAAP EPS for revenue and expense items that are typically strategic in nature or that management otherwise does not view as reflecting the operating performance of the company. Management believes Adjusted EPS can help the reader better understand the operating performance of the core businesses and their ability to generate earnings. In the numerator of Adjusted EPS, GAAP net income attributable to common shareholders is adjusted for the following items: (1) excludes discontinued operations, net of tax, as Ally is primarily a domestic company and sales of international businesses and other discontinued operations in the past have significantly impacted GAAP EPS, (2) adds back the tax-effected non-cash Core OID, (3) adjusts for tax-effected repositioning and other which are primarily related to the extinguishment of high cost legacy debt, strategic activities and significant other one-time items, (4) change in fair value of equity securities, (5) excludes significant discrete tax items that do not relate to the operating performance of the core businesses, and adjusts for preferred stock capital actions that have been taken by the company to normalize its capital structure, as applicable for respective periods.

3) Adjusted efficiency ratio is a non-GAAP financial measure that management believes is helpful to readers in comparing the efficiency of its core banking and lending businesses with those of its peers.

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

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

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

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

6) Adjusted 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.

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

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

9) 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.


2Q 2023 Preliminary Results		25

ALLY FINANCIAL INC.

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

11) 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.

12) Core pre-provision net revenue (Core PPNR) is a non-GAAP financial measure calculated by adding GAAP net financing revenue and GAAP other revenue and subtracting GAAP noninterest expense then adding Core OID and repositioning expenses, excluding provision for credit losses. Management believes that Core PPNR is a helpful financial metric because it enables the reader to assess the core business’ ability to generate earnings to cover credit losses.

13) Core pre-tax income is a non-GAAP financial measure that adjusts pre-tax income from continuing operations by excluding (1) Core OID, and (2) change in fair value of equity securities (change in fair value of equity securities impacts the Insurance and Corporate Finance segments), and (3) Repositioning and other which are primarily related to the extinguishment of high cost legacy debt, strategic activities and significant other one-time items, as applicable for respective periods or businesses. Management believes core pre-tax income can help the reader better understand the operating performance of the core businesses and their ability to generate earnings.

14) Core return on tangible common equity (Core ROTCE) is a non-GAAP financial measure that management believes is helpful for readers to better understand the ongoing ability of the company to generate returns on its equity base that supports core operations. For purposes of this calculation, tangible common equity is adjusted for Core OID balance and net DTA. Ally’s Core net income attributable to common shareholders for purposes of calculating Core ROTCE is based on the actual effective tax rate for the period adjusted for significant discrete tax items including tax reserve releases, which aligns with the methodology used in calculating adjusted earnings per share.

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

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

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

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

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


2Q 2023 Preliminary Results		26

ALLY FINANCIAL INC.

19) Pre-provision net revenue (PPNR) is a non-GAAP financial measure calculated by adding GAAP net financing revenue and GAAP other revenue then subtracting GAAP noninterest expense, excluding provision for credit losses. Management believes that PPNR is a helpful financial metric because it enables the reader to assess the business’ ability to generate earnings to cover credit losses and as it is utilized by Federal Reserve’s approach to modeling within the Supervisory Stress Test Framework that generally follows U.S. generally accepted accounting principles (GAAP) and includes a calculation of PPNR as a component of projected pre-tax net income.

20) Repositioning is primarily related to the extinguishment of high-cost legacy debt, strategic activities, and other one-time items.

21) 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.


2Q 2023 Preliminary Results		27