EX-99.3

EX-99.3 4 d299696dex993.htm EX-99.3 EX-99.3

Exhibit 99.3

LOGO

FOURTH QUARTER 2021

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 future effects of COVID-19, the outlook for financial and operating metrics, and future capital allocation and actions. Forward-looking statements often use words such as “believe,” “expect,” “anticipate,” “intend,” “pursue,” “seek,” “continue,” “estimate,” “project,” “outlook,” “forecast,” “potential,” “target,” “objective,” “trend,” “plan,” “goal,” “initiative,” “priorities,” or other words of comparable meaning or future-tense or conditional verbs such as “may,” “will,” “should,” “would,” or “could.” Forward-looking statements convey our expectations, intentions, or forecasts about future events, circumstances, or results. All forward-looking statements, by their nature, are subject to assumptions, risks, and uncertainties, which may change over time and many of which are beyond our control. You should not rely on any forward-looking statement as a prediction or guarantee about the future. Actual future objectives, strategies, plans, prospects, performance, conditions, or results may differ materially from those set forth in any forward-looking statement. Some of the factors that may cause actual results or other future events or circumstances to differ from those in forward-looking statements are described in our Annual Report on Form 10-K for the year ended December 31, 2020, 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.


4Q 2021 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


4Q 2021 Preliminary Results		3

ALLY FINANCIAL INC.

CONSOLIDATED FINANCIAL HIGHLIGHTS


($ in millions, shares in thousands)	QUARTERLY TRENDS										CHANGE VS.				FULL YEAR
Selected Income Statement Data	4Q 21		3Q 21		2Q 21		1Q 21		4Q 20		3Q 21		4Q 20		FY 2021		FY 2020		CHANGE

Net financing revenue (excluding Core OID) ⁽¹⁾	$	1,663	$	1,603	$	1,556	$	1,382	$	1,312	$	60	$	351	$	6,205	$	4,739	$	1,466

Core OID		(9)		(9)		(9)		(10)		(9)		0		0		(38)		(36)		(2)

Net financing revenue (as reported)		1,654		1,594		1,547		1,372		1,303		60		351		6,167		4,703		1,464

Other revenue (adjusted) ⁽¹⁾		533		507		588		548		567		26		(33)		2,177		1,954		223

Change in fair value of equity securities ⁽²⁾		21		(65)		19		17		111		86		(90)		(7)		29		(37)

Repositioning ⁽²⁾		(9)		(52)		(70)		—		—		42		(9)		(131)		0		(131)

Other revenue (as reported)		545		391		538		565		678		154		(133)		2,039		1,983		56

Provision for loan losses		210		76		(32)		(13)		102		134		108		241		1,439		(131)

Total noninterest expense ⁽³⁾		1,090		1,002		1,075		943		1,023		88		67		4,110		3,833		277


Pre-tax income from continuing operations		899		907		1,042		1,007		856		(8)		43		3,855		1,414		2,441

Income tax expense		241		195		143		211		169		46		72		790		328		462

Income from discontinued operations, net of tax		(6)		—		1		—		—		(6)		(6)		(5)		(1)		(4)


Net Income	$	652	$	712	$	900	$	796	$	687	$	(60)	$	(35)	$	3,060	$	1,085	$	1,975

Preferred Dividends		28		29		—		—		—		(1)		28		57		—		57


Net income attributable to common shareholders	$	624	$	683	$	900	$	796	$	687	$	(59)	$	(63)	$	3,003	$	1,085	$	1,918


Core Pre-Provision Net Revenue ⁽⁴⁾	$	1,107	$	1,108	$	1,070	$	987	$	856	$	(2)	$	251	$	4,271	$	2,909	$	1,362

Selected Balance Sheet Data (Period-End)

Total assets	$	182,350	$	179,184	$	180,470	$	181,879	$	182,165	$	3,166	$	185

Consumer loans		98,226		95,052		90,649		87,391		89,202		3,174		9,024

Commercial loans		24,042		19,419		21,568		25,685		29,332		4,623		(5,290)

Allowance for loan losses		(3,267)		(3,148)		(3,126)		(3,152)		(3,283)		(119)		16

Deposits		141,558		139,444		139,104		139,585		137,036		2,114		4,522

Total equity		17,050		17,289		17,530		14,625		14,703		(239)		2,347

Common Share Count

Weighted average basic		345,870		359,179		370,412		375,229		376,081		(13,309)		(30,211)		362,583		375,629		(13,047)

Weighted average diluted		348,666		361,855		373,029		377,529		378,424		(13,189)		(29,757)		365,180		377,101		(11,921)

Issued shares outstanding (period-end)		337,941		349,599		362,639		371,805		374,674		(11,658)		(36,734)

Per Common Share Data

Earnings per share (basic)	$	1.80	$	1.90	$	2.43	$	2.12	$	1.83	$	(0.10)	$	(0.02)	$	8.44	$	2.89	$	5.55

Earnings per share (diluted)		1.79		1.89		2.41		2.11		1.82		(0.10)		(0.03)		8.22		2.88		5.35

Adjusted earnings per share ⁽¹⁾		2.02		2.16		2.33		2.09		1.60		(0.14)		0.42		8.61		3.03		5.59

Book value per share		43.58		42.81		41.93		39.34		39.24		0.77		4.33

Tangible book value per share ⁽⁵⁾		40.79		41.75		40.90		38.32		38.22		(0.96)		2.57

Adjusted tangible book value per share ⁽⁵⁾		38.73		39.72		38.83		36.16		36.05		(0.99)		2.67

Select Financial Ratios

Net interest margin (as reported)		3.80%		3.66%		3.55%		3.16%		2.90%						3.54%		2.65%

Net interest margin (ex. Core OID) ⁽¹⁾		3.82%		3.68%		3.57%		3.18%		2.92%						3.56%		2.67%

Cost of funds		1.06%		1.14%		1.27%		1.42%		1.58%						1.22%		2.00%

Cost of funds (ex. Core OID) ⁽¹⁾		1.03%		1.11%		1.23%		1.38%		1.55%						1.19%		1.97%

Efficiency Ratio ⁽⁶⁾		49.6%		50.5%		51.6%		48.7%		51.6%						50.1%		57.3%

Adjusted efficiency ratio ⁽⁶⁾		44.4%		41.7%		44.5%		44.4%		49.8%						43.7%		50.3%

Return on average assets		1.1%		1.6%		2.0%		1.7%		1.5%						1.1%		0.6%

Return on average total equity		14.5%		15.7%		22.4%		21.7%		19.1%						18.5%		7.7%

Return on average tangible common equity		17.6%		18.6%		24.8%		22.3%		19.6%						20.9%		7.9%

Core ROTCE ⁽⁷⁾		22.1%		24.2%		26.7%		24.1%		18.7%						24.3%		9.1%

Capital Ratios ⁽⁸⁾

Common Equity Tier 1 (CET1) capital ratio		10.3%		11.2%		11.3%		11.1%		10.6%

Tier 1 capital ratio		11.9%		12.8%		13.1%		12.8%		12.4%

Total capital ratio		13.4%		14.6%		14.8%		14.6%		14.1%

Tier 1 leverage ratio		9.7%		10.0%		10.0%		9.8%		9.4%

(1)

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

(2)

See page 25 for methodology and detail.

(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. See page 25 for methodology and detail.

(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 25.


4Q 2021 Preliminary Results		4

ALLY FINANCIAL INC.

CONSOLIDATED INCOME STATEMENT


	QUARTERLY TRENDS															CHANGE VS.						FULL YEAR
($ in millions)	4Q 21			3Q 21			2Q 21			1Q 21			4Q 20			3Q 21			4Q 20			FY 2021			FY 2020			CHANGE

Financing revenue and other interest income

Interest and fees on finance receivables and loans	$	1,679		$	1,619		$	1,588		$	1,582		$	1,607		$	60		$	72		$	6,468		$	6,581		$	(113	)

Interest on loans held-for-sale		4			5			4			5			6			(1	)		(2	)		18			17			1

Total interest and dividends on investment securities		162			150			143			124			130			12			32			579			692			(113	)

Interest-bearing cash		2			5			4			4			5			(3	)		(3	)		15			28			(13	)

Other earning assets		5			5			4			7			10			—			(5	)		21			44			(23	)

Operating leases		403			393			384			370			365			10			38			1,550			1,435			115


Total financing revenue and other interest income		2,255			2,177			2,127			2,092			2,123			78			132			8,651			8,797			(146	)

Interest expense

Interest on deposits		226			245			268			306			367			(19	)		(141	)		1,045			1,952			(907	)

Interest on short-term borrowings		—			—			—			1			3			—			(3	)		1			42			(41	)

Interest on long-term debt		189			191			230			250			274			(2	)		(85	)		860			1,249			(389	)

Interest on other		—			8			—			—			—			(8	)		—			8			—			8


Total interest expense		415			444			498			557			644			(29	)		(229	)		1,914			3,243			(1,329	)

Depreciation expense on operating lease assets		186			139			82			163			176			47			10			570			851			(281	)


Net financing revenue (as reported)	$	1,654		$	1,594		$	1,547		$	1,372		$	1,303		$	60		$	351		$	6,167		$	4,703		$	1,464

Other revenue

Insurance premiums and service revenue earned		280			279			278			280			287			1			(7	)		1,117			1,103			14

Gain on mortgage and automotive loans, net		14			18			19			36			75			(4	)		(61	)		87			110			(23	)

Loss on extinguishment of debt		(10	)		(52	)		(73	)		(1	)		(52	)		42			42			(136	)		(102	)		(34	)

Other gain/loss on investments, net		73			24			65			123			134			49			(61	)		285			307			(22	)

Other income, net of losses		188			122			249			127			234			66			(46	)		686			565			121


Total other revenue		545			391			538			565			678			154			(133	)		2,039			1,983			56

Total net revenue		2,199			1,985			2,085			1,937			1,981			214			218			8,206			6,686			1,520

Provision for loan losses		210			76			(32	)		(13	)		102			134			108			241			1,439			(1,198	)

Noninterest expense

Compensation and benefits expense		413			389			446			395			340			24			73			1,643			1,376			267

Insurance losses and loss adjustment expenses		55			69			74			63			62			(14	)		(7	)		261			363			(102	)

Goodwill impairment		—			—			—			—			—			—			—			—			50			(50	)

Other operating expenses		622			544			555			485			621			78			1			2,206			2,044			162


Total noninterest expense		1,090			1,002			1,075			943			1,023			88			67			4,110			3,833			277

Pre-tax income from continuing operations	$	899		$	907		$	1,042		$	1,007		$	856		$	(8	)	$	43		$	3,855		$	1,414		$	2,441

Income tax expense from continuing operations		241			195			143			211			169			46			72			790			328			462


Net income from continuing operations		658			712			899			796			687			(54	)		(29	)		3,065			1,086			1,979

Income / (Loss) from discontinued operations, net of tax		(6	)		—			1			—			—			(6	)		(6	)		(5	)		(1	)		(4	)


Net income	$	652		$	712		$	900		$	796		$	687		$	(60	)	$	(35	)	$	3,060		$	1,085		$	1,975

Preferred Dividends		28			29			—			—			—			(1	)		28			57			—			57


Net Income Available to Common Shareholders	$	624		$	683		$	900		$	796		$	687		$	(59	)	$	(63	)	$	3,003		$	1,085		$	1,918


Core Pre-Tax Income Walk

Net financing revenue (ex. OID) ⁽¹⁾	$	1,663		$	1,603		$	1,556		$	1,382		$	1,312		$	60		$	351		$	6,205		$	4,739		$	1,466

Adjusted other revenue ⁽¹⁾		533			507			588			548			567			26			(33	)		2,177			1,954			223

Provision for credit losses		113			76			(32	)		(13	)		102			37			11			144			1,439			(1,295	)

Adjusted noninterest expense ⁽¹⁾		1,090			1,002			1,075			943			1,023			88			67			4,110			3,783			327


Core pre-tax income ⁽²⁾	$	994		$	1,032		$	1,102		$	1,000		$	754		$	(39	)	$	240		$	4,128		$	1,470		$	2,657

Core OID		(9	)		(9	)		(9	)		(10	)		(9	)		—			—			(38	)		(36	)		(2	)

Change in the fair value of equity securities ⁽³⁾		21			(65	)		19			17			111			86			(90	)		(7	)		29			(37	)

Repositioning ⁽³⁾		(107	)		(52	)		(70	)		—			—			(55	)		(107	)		(228	)		(50	)		(178	)


Pre-tax income from continuing operations	$	899		$	907		$	1,042		$	1,007		$	856		$	(8	)	$	43		$	3,855		$	1,414		$	2,441

(1)

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

(2)

Represents a non-GAAP financial measure. See page 25 for methodology and detail.

(3)

See page 25 for methodology and detail.


4Q 2021 Preliminary Results		5

ALLY FINANCIAL INC.

CONSOLIDATED PERIOD-END BALANCE SHEET


($ in millions)	QUARTERLY TRENDS															CHANGE VS.
Assets	4Q 21			3Q 21			2Q 21			1Q 21			4Q 20			3Q 21			4Q 20

Cash and cash equivalents

Noninterest-bearing	$	502		$	636		$	653		$	747		$	724		$	(134	)	$	(222	)

Interest-bearing		4,560			10,279			13,011			15,031			14,897			(5,719	)		(10,337	)


Total cash and cash equivalents		5,062			10,915			13,664			15,778			15,621			(5,853	)		(10,559	)

Investment securities ⁽¹⁾		35,859			35,317			36,313			35,711			32,154			542			3,705

Loans held-for-sale, net		549			456			409			630			406			93			143

Finance receivables and loans, net		122,268			114,471			112,217			113,076			118,534			7,797			3,734

Allowance for loan losses		(3,267	)		(3,148	)		(3,126	)		(3,152	)		(3,283	)		(119	)		16


Total finance receivables and loans, net		119,001			111,323			109,091			109,924			115,251			7,678			3,750

Investment in operating leases, net		10,862			10,969			10,715			9,944			9,639			(107	)		1,223

Premiums receivables and other insurance assets		2,724			2,752			2,773			2,725			2,679			(28	)		45

Other assets		8,293			7,452			7,505			7,167			6,415			841			1,878


Total assets	$	182,350		$	179,184		$	180,470		$	181,879		$	182,165		$	3,166		$	185


Liabilities

Deposit liabilities

Noninterest-bearing	$	150		$	167		$	149		$	155		$	128		$	(17	)	$	22

Interest-bearing		141,408			139,277			138,955			139,430			136,908			2,131			4,500


Total deposit liabilities		141,558			139,444			139,104			139,585			137,036			2,114			4,522

Short-term borrowings		—			—			—			—			2,136			—			(2,136	)

Long-term debt		17,029			14,946			16,896			20,503			22,006			2,083			(4,977	)

Interest payable		210			422			365			453			412			(212	)		(202	)

Unearned insurance premiums and service revenue		3,514			3,537			3,536			3,487			3,438			(23	)		76

Accrued expense and other liabilities		2,989			3,546			3,039			3,226			2,434			(557	)		555


Total liabilities	$	165,300		$	161,895		$	162,940		$	167,254		$	167,462		$	3,405		$	(2,162	)

Equity

Common stock and paid-in capital ⁽²⁾	$	16,483		$	17,050		$	17,716		$	18,153		$	18,350		$	(567	)	$	(1,867	)

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

Accumulated deficit		(1,599	)		(2,136	)		(2,726	)		(3,555	)		(4,278	)		537			2,679

Accumulated other comprehensive income / (loss)		(158	)		51			216			27			631			(209	)		(789	)


Total equity		17,050			17,289			17,530			14,625			14,703			(239	)		2,347


Total liabilities and equity	$	182,350		$	179,184		$	180,470		$	181,879		$	182,165		$	3,166		$	185

(1)

Includes held-to-maturity securities.

(2)

Includes Treasury stock.


4Q 2021 Preliminary Results		6

ALLY FINANCIAL INC.

CONSOLIDATED AVERAGE BALANCE SHEET ⁽¹⁾


($ in millions)
	QUARTERLY TRENDS															CHANGE VS.						FULL YEAR

Assets	4Q 21			3Q 21			2Q 21			1Q 21			4Q 20			3Q 21			4Q 20			FY 2021			FY 2020			CHANGE

Interest-bearing cash and cash equivalents	$	6,532		$	13,055		$	16,564		$	15,363		$	17,758		$	(6,523	)	$	(11,226	)	$	12,855		$	13,985		$	(1,130	)

Investment securities and other earning assets		36,809			35,193			36,462			34,694			33,107			1,616			3,702			35,793			32,516			3,277

Loans held-for-sale, net		461			464			454			570			635			(3	)		(174	)		487			399			88

Total finance receivables and loans, net ⁽²⁾		118,135			112,907			110,961			115,665			117,422			5,228			713			114,420			120,991			(6,571	)

Investment in operating leases, net		10,951			10,919			10,355			9,831			9,587			32			1,364			10,518			9,264			1,254


Total interest earning assets		172,888			172,538			174,796			176,123			178,509			350			(5,621	)		174,073			177,155			(3,082	)

Noninterest-bearing cash and cash equivalents		505			526			494			531			505			(21	)		—			514			473			41

Other assets		9,568			9,328			8,978			8,502			8,112			240			1,456			9,098			8,021			1,077

Allowance for loan losses		(3,168	)		(3,152	)		(3,172	)		(3,280	)		(3,363	)		(16	)		195			(3,193	)		(3,149	)		(44	)


Total assets	$	179,793		$	179,240		$	181,096		$	181,876		$	183,763		$	553		$	(3,970	)	$	180,491		$	182,501		$	(2,010	)


Liabilities

Interest-bearing deposit liabilities

Retail deposit liabilities	$	132,706		$	130,414		$	128,787		$	125,715		$	122,166		$	2,292		$	10,540		$	129,427		$	114,062		$	15,365

Other interest-bearing deposit liabilities ⁽³⁾		7,172			8,670			10,446			11,851			13,327			(1,498	)		(6,155	)		9,520			15,030			(5,510	)


Total Interest-bearing deposit liabilities		139,878			139,084			139,233			137,566			135,493			794			4,385			138,947			129,092			9,855

Short-term borrowings		—			—			—			814			2,350			—			(2,350	)		201			3,721			(3,520	)

Long-term debt ⁽⁴⁾		15,493			15,487			18,411			21,173			24,103			6			(8,610	)		17,620			29,058			(11,438	)


Total interest-bearing liabilities ⁽⁴⁾		155,371			154,571			157,644			159,553			161,946			800			(6,575	)		156,768			161,871			(5,103	)

Noninterest-bearing deposit liabilities		165			160			149			152			149			5			16			157			146			11

Other liabilities		6,731			6,852			6,802			7,038			6,819			(121	)		(88	)		6,855			6,195			660


Total liabilities	$	162,267		$	161,583		$	164,595		$	166,743		$	168,914		$	684		$	(6,647	)	$	163,780		$	168,212		$	(4,432	)

Equity

Total equity	$	17,526		$	17,657		$	16,501		$	15,133		$	14,849		$	(131	)	$	2,677		$	16,711		$	14,289		$	2,422


Total liabilities and equity	$	179,793		$	179,240		$	181,096		$	181,876		$	183,763		$	553		$	(3,970	)	$	180,491		$	182,501		$	(2,010	)

(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 $889 million in 4Q 2021, $905 million in 3Q 2021, $989 million in 2Q 2021, $1,023 million in 1Q 2021, and $1,032 million in 4Q 2020.


4Q 2021 Preliminary Results		7

ALLY FINANCIAL INC.

SEGMENT HIGHLIGHTS


($ in millions)
	QUARTERLY TRENDS															CHANGE VS.						FULL YEAR

Pre-tax Income / (Loss)	4Q 21			3Q 21			2Q 21			1Q 21			4Q 20			3Q 21			4Q 20			FY 2021			FY 2020			CHANGE

Automotive Finance	$	839		$	825		$	917		$	803		$	563		$	14		$	276		$	3,384		$	1,285		$	2,099

Insurance		91			24			87			141			183			67			(92	)		343			284			59


Dealer Financial Services		930			849			1,004			944			746			81			184			3,727			1,569			2,158

Corporate Finance		73			61			95			53			64			12			9			282			88			194

Mortgage Finance		3			6			—			23			7			(3	)		(4	)		32			53			(21	)

Corporate and Other ⁽¹⁾		(107	)		(9	)		(57	)		(13	)		39			(98	)		(146	)		(186	)		(296	)		110


Pre-tax income from continuing operations	$	899		$	907		$	1,042		$	1,007		$	856		$	(8	)	$	43		$	3,855		$	1,414		$	2,441

Core OID ⁽²⁾		9			9			9			10			9			—			—			38			36			2

Change in the fair value of equity securities ⁽³⁾		(21	)		65			(19	)		(17	)		(111	)		(86	)		90			7			(29	)		37

Repositioning ⁽⁴⁾		107			52			70			—			—			55			107			228			50			178


Core pre-tax income ⁽⁴⁾	$	994		$	1,032		$	1,102		$	1,000		$	754		$	(39	)	$	240		$	4,128		$	1,470		$	2,657

(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)

See page 25 for methodology and detail.

(4)

Represents a non-GAAP measure. See page 25 for methodology and detail.


4Q 2021 Preliminary Results		8

ALLY FINANCIAL INC.

AUTOMOTIVE FINANCE - CONDENSED FINANCIAL STATEMENTS


($ in millions)
	QUARTERLY TRENDS															CHANGE VS.						FULL YEAR
Income Statement	4Q 21			3Q 21			2Q 21			1Q 21			4Q 20			3Q 21			4Q 20			FY 2021		FY 2020		CHANGE

Net financing revenue

Consumer	$	1,339		$	1,320		$	1,288		$	1,251		$	1,261		$	19		$	78		$	5,198	$	4,931	$	267

Commercial		116			112			125			161			163			4			(47	)		514		833		(319	)

Operating leases		403			393			384			370			365			10			38			1,550		1,435		115

Other interest income		—			—			—			—			1			—			(1	)		—		5		(5	)


Total financing revenue and other interest income		1,858			1,825			1,797			1,782			1,790			33			68			7,262		7,204		58

Interest expense		331			357			382			413			461			(26	)		(130	)		1,483		2,069		(586	)

Depreciation expense on operating lease assets:

Depreciation expense on operating lease assets (ex. remarketing)		251			226			210			226			242			25			10			914		978		(64	)

Remarketing gains / (losses)		65			86			128			64			66			(21	)		(—	)		344		127		217


Total depreciation expense on operating lease assets		186			139			82			163			176			47			10			570		851		(281	)


Net financing revenue		1,341			1,329			1,333			1,206			1,153			12			188			5,209		4,284		925

Other revenue


Total other revenue		67			61			61			62			56			6			11			251		204		47


Total net revenue		1,408			1,390			1,394			1,268			1,209			18			199			5,460		4,488		972

Provision for credit losses		45			53			(23	)		(22	)		86			(8	)		(41	)		53		1,236		(1,183	)

Noninterest expense

Compensation and benefits		146			136			144			145			134			10			12			571		549		22

Other operating expenses		378			376			356			342			426			2			(48	)		1,452		1,418		34


Total noninterest expense		524			512			500			487			560			12			(36	)		2,023		1,967		56


Pre-tax Income	$	839		$	825		$	917		$	803		$	563		$	14		$	276		$	3,384	$	1,285	$	2,099


Memo: Net lease revenue

Operating lease revenue	$	403		$	393		$	384		$	370		$	365		$	10		$	38		$	1,550	$	1,435	$	115

Depreciation expense on operating lease assets (ex. remarketing)		251			226			210			226			242			25			10			914		978		(64	)

Remarketing gains (losses), net of repo valuation		65			86			128			64			66			(21	)		—			344		127		217


Total depreciation expense on operating lease assets		186			139			82			163			176			47			10			570		851		(281	)


Net lease revenue	$	217		$	254		$	302		$	207		$	189		$	(37	)	$	28		$	980	$	584	$	396


Balance Sheet (Period-End)

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

Consumer loans		78,289			77,683			75,827			73,826			73,443			606			4,846

Commercial loans		16,074			12,587			15,219			19,208			23,141			3,487			(7,067	)

Allowance for loan losses		(2,802	)		(2,851	)		(2,848	)		(2,867	)		(2,986	)		49			184


Total finance receivables and loans, net		91,561			87,419			88,198			90,167			93,598			4,142			(2,037	)

Investment in operating leases, net		10,862			10,969			10,715			9,944			9,639			(107	)		1,223

Other assets		1,207			1,206			1,226			1,432			1,534			1			(327	)


Total assets	$	103,653		$	99,617		$	100,162		$	101,566		$	104,794		$	4,036		$	(1,141	)


4Q 2021 Preliminary Results		9

ALLY FINANCIAL INC.

AUTOMOTIVE FINANCE - KEY STATISTICS


	QUARTERLY TRENDS										CHANGE VS.						FULL YEAR
	4Q 21		3Q 21		2Q 21		1Q 21		4Q 20		3Q 21			4Q 20			FY 2021		FY 2020		CHANGE

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

Retail standard - new vehicle GM	$	0.8	$	0.9	$	1.2	$	1.0	$	1.1	$	(0.1	)	$	(0.3	)	$	3.9	$	3.8	$	0.1

Retail standard - new vehicle Stellantis		1.0		1.1		1.2		1.0		1.0		—			0.1			4.2		3.4		0.8

Retail standard - new vehicle Growth		1.0		1.2		1.5		1.1		1.1		(0.1	)		(0.1	)		4.8		3.9		0.9

Used vehicle		7.0		7.8		7.3		5.7		4.7		(0.8	)		2.3			27.7		19.3		8.4

Lease		0.9		1.3		1.8		1.4		1.2		(0.3	)		(0.2	)		5.4		4.6		0.8

Retail subvented		0.1		0.1		0.0		0.0		0.0		0.0			0.0			0.2		0.1		0.1


Total originations	$	10.9	$	12.3	$	12.9	$	10.2	$	9.1	$	(1.4	)	$	1.8		$	46.3	$	35.1	$	11.1

U.S. Consumer Originations - FICO Score

Super Prime (740+)	$	2.2	$	2.6	$	2.8	$	2.2	$	2.1	$	(0.4	)	$	0.1		$	9.7	$	8.1	$	1.6

Prime (660-739)		4.3		4.9		5.1		4.2		3.7		(0.6	)		0.6			18.5		13.8		4.7

Prime/Near (620-659)		2.6		3.0		3.1		2.3		2.0		(0.4	)		0.7			11.1		7.5		3.6

Non Prime (540-619)		1.0		1.0		1.0		0.8		0.6		(0.1	)		0.3			3.8		3.0		0.8

Sub Prime (0-539)		0.1		0.1		0.1		0.1		0.1		—			—			0.5		0.5		—

No FICO (Primarily CSG) ²		0.7		0.7		0.7		0.6		0.6		0.1			0.1			2.7		2.2		0.5


Total originations	$	10.9	$	12.3	$	12.9	$	10.2	$	9.1	$	(1.4	)	$	1.8		$	46.3	$	35.1	$	11.1

U.S. Consumer Retail Originations - Average FICO

New vehicle		697		694		691		693		698		2			(2	)		693		698		(4	)

Used vehicle		679		679		678		681		684		(1	)		(6	)		679		682		(3	)

Total retail originations		684		683		682		685		690		—			(6	)		683		687		(4	)

U.S. Market

Light vehicle sales (SAAR - units in millions)		12.8		13.3		16.9		16.8		16.2		(0.6	)		(3.4	)		15.0		14.5		0.5

Light vehicle sales (quarterly - units in millions)		3.2		3.4		4.4		3.9		4.2		(0.1	)		(0.9	)		14.9		14.5		0.4

Dealer Engagement

Total Active Dealers³		21,076		20,353		19,650		18,986		18,716		723			2,360			21,076		18,716		2,360

Total Application Volume (000s)		2,933		3,258		3,529		3,286		2,805		(326	)		128			13,006		12,131		875

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

Floorplan outstandings	$	11.1	$	7.6	$	10.0	$	13.5	$	17.3	$	3.5		$	(6.1	)

Dealer loans and other		4.9		5.0		5.2		5.7		5.9		0.0			(0.9	)


Total Commercial outstandings	$	16.1	$	12.6	$	15.2	$	19.2	$	23.1	$	3.5		$	(7.1	)

U.S. Off-Lease Remarketing

Off-lease vehicles terminated - on-balance sheet (# in units)		27,977		34,475		34,768		30,488		30,480		(6,498	)		(2,503	)		127,708		106,601		21,107

Average gain / (loss) per vehicle	$	2,339	$	2,495	$	3,684	$	2,114	$	2,150	$	(156	)	$	189		$	2,693	$	1,193	$	1,500

Total gain / (loss) ($ in millions)	$	65	$	86	$	128	$	64	$	66	$	(21	)	$	(0	)	$	344	$	127	$	217

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

(2) Commercial Services Group (CSG) are business customers. Average annualized credit losses of 35-40 bps on CSG loans from 2016 through 2021

(3) Active Dealers include those who utilize one or more of Ally’s products including consumer and commercial lending, SmartAuction or Commercial Services Group


4Q 2021 Preliminary Results		10

ALLY FINANCIAL INC.

INSURANCE - CONDENSED FINANCIAL STATEMENTS AND KEY STATISTICS



($ in millions)
Income Statement *(GAAP View)*	QUARTERLY TRENDS															CHANGE VS.						FULL YEAR
Income Statement *(GAAP View)*	4Q 21			3Q 21			2Q 21			1Q 21			4Q 20			3Q 21			4Q 20			FY 2021			FY 2020			CHANGE

Net financing revenue

Total interest and fees on finance receivables and loans⁽¹⁾	$	4		$	3		$	3		$	4		$	1		$	1		$	3		$	14		$	1		$	13

Interest and dividends on investment securities		26			25			26			25			26			1			—			102			107			(5	)

Interest bearing cash		—			1			—			—			1			(1	)		(1	)		1			14			(13	)


Total financing revenue and other interest revenue		30			29			29			29			28			1			2			117			122			(5	)

Interest expense		15			15			14			14			20			—			(5	)		58			80			(22	)


Net financing revenue		15			14			15			15			8			1			7			59			42			17

Other revenue

Insurance premiums and service revenue earned		280			279			278			280			287			1			(7	)		1,117			1,103			14

Other gain / (loss) on investments, net		56			1			61			98			131			55			(75	)		216			220			(4	)

Other income, net of losses		3			3			5			1			3			—			—			12			11			1


Total other revenue		339			283			344			379			421			56			(82	)		1,345			1,334			11


Total net revenue		354			297			359			394			429			57			(75	)		1,404			1,376			28

Noninterest expense

Compensation and benefits expense		23			23			24			22			20			—			3			92			82			10

Insurance losses and loss adjustment expenses		55			69			74			63			62			(14	)		(7	)		261			363			(102	)

Other operating expenses		185			181			174			168			164			4			21			708			647			61


Total noninterest expense		263			273			272			253			246			(10	)		17			1,061			1,092			(31	)


Pre-tax Income	$	91		$	24		$	87		$	141		$	183		$	67		$	(92	)	$	343		$	284		$	59


Memo: Income Statement (Managerial View)

Insurance premiums and other income

Insurance premiums and service revenue earned	$	280		$	279		$	278		$	280		$	287		$	1		$	(7	)	$	1,117		$	1,103		$	14

Investment income (adjusted) ⁽²⁾		47			80			56			102			28			(33	)		19			285			231			53

Other income		3			3			5			1			3			—			—			12			11			1


Total insurance premiums and other income		330			362			339			383			318			(32	)		12			1,414			1,345			68

Expense

Insurance losses and loss adjustment expenses		55			69			74			63			62			(14	)		(7	)		261			363			(102	)

Acquisition and underwriting expenses

Compensation and benefit expense		23			23			24			22			20			—			3			92			82			10

Insurance commission expense		147			142			138			136			133			4			14			563			516			47

Other expense		38			39			36			32			31			(0	)		7			145			131			14


Total acquistion and underwriting expense		208			204			198			190			184			4			24			800			729			71


Total expense		263			273			272			253			246			(10	)		17			1,061			1,092			(31	)


Core pre-tax income ⁽²⁾		67			89			67			130			72			(22	)		(5	)		353			253			99

Change in the fair value of equity securities ⁽²⁾		24			(65	)		20			11			111			89			(87	)		(10	)		31			(40	)


Income before income tax expense	$	91		$	24		$	87		$	141		$	183		$	67		$	(92	)	$	343		$	284		$	59


Balance Sheet (Period-End)

Cash and investment securities	$	5,530		$	5,503		$	5,738		$	5,706		$	5,421		$	27		$	109

Intercompany loans⁽¹⁾		923			898			697			591			830			25			93

Premiums receivable and other insurance assets		2,735			2,761			2,782			2,738			2,693			(26	)		42

Other assets		193			192			177			186			193			1			—


Total assets	$	9,381		$	9,354		$	9,394		$	9,221		$	9,137		$	27		$	244


Key Statistics

Total written premiums and revenue ⁽³⁾	$	268		$	295		$	301		$	333		$	312		$	(27	)	$	(44	)	$	1,197		$	1,229		$	(32	)

Loss ratio ⁽⁴⁾		19.5	%		24.4	%		26.3	%		22.4	%		21.6	%								23.1	%		32.6	%

Underwriting expense ratio ⁽⁵⁾		73.4	%		72.0	%		70.4	%		67.1	%		6 3.5	%								70.7	%		65.4	%


Combined ratio		92.9	%		96.4	%		96.7	%		89.5	%		85.1	%								93.9	%		98.0	%

(1)

Intercompany activity represents excess liquidity placed with corporate segment (2)Represents a non-GAAP financial measure. See page 25 for methodology and detail.

(3)

Written premiums are net of ceded premium for reinsurance.

(4)

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.

(5)

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.


4Q 2021 Preliminary Results		11

ALLY FINANCIAL INC.

MORTGAGE FINANCE - CONDENSED FINANCIAL STATEMENTS


($ in millions)

	QUARTERLY TRENDS															CHANGE VS.						FULL YEAR
Income Statement	4Q 21			3Q 21			2Q 21			1Q 21			4Q 20			3Q 21			4Q 20			FY 2021			FY 2020		CHANGE

Net financing revenue

Total financing revenue and other interest income	$	119		$	106		$	89		$	93		$	101		$	13		$	18		$	407		$	487	$	(80	)

Interest expense		77			70			66			70			81			7			(4	)		283			369		(86	)


Net financing revenue		42			36			23			23			20			6			22			124			118		6

Gain on mortgage loans, net		14			18			19			36			33			(4	)		(19	)		87			93		(6	)

Other income, net of losses		(1	)		1			3			4			4			(2	)		(5	)		7			9		(2	)


Total other revenue		13			19			22			40			37			(6	)		(24	)		94			102		(8	)


Total net revenue		55			55			45			63			57			—			(2	)		218			220		(2	)


Provision for loan losses		1			2			—			(4	)		3			(1	)		(2	)		(1	)		7		(8	)

Noninterest expense

Compensation and benefits expense		6			5			5			6			5			1			1			22			22		—

Other operating expense		45			42			40			38			42			3			3			165			138		27


Total noninterest expense		51			47			45			44			47			4			4			187			160		27


Pre-tax Income	$	3		$	6		$	—		$	23		$	7		$	(3	)	$	(4	)	$	32		$	53	$	(21	)


Balance Sheet (Period-End)

Finance receivables and loans, net:

Consumer loans	$	17,644		$	16,059		$	13,629		$	12,445		$	14,632		$	1,585		$	3,012

Allowance for loan losses		(19	)		(17	)		(15	)		(16	)		(21	)		(2	)		2


Total finance receivables and loans, net		17,625			16,042			13,614			12,429			14,611			1,583			3,014

Other assets		222			286			251			494			278			(64	)		(56	)


Total assets	$	17,847		$	16,328		$	13,865		$	12,923		$	14,889		$	1,519		$	2,958


4Q 2021 Preliminary Results		12

ALLY FINANCIAL INC.

CORPORATE FINANCE - CONDENSED FINANCIAL STATEMENTS


($ in millions)
	QUARTERLY TRENDS															CHANGE VS.						FULL YEAR
Income Statement	4Q 21			3Q 21			2Q 21			1Q 21			4Q 20			3Q 21			4Q 20			FY 2021			FY 2020		CHANGE

Net financing revenue

Total financing revenue and other interest income	$	93		$	86		$	86		$	80		$	89		$	7		$	4		$	345		$	360	$	(15	)

Interest expense		10			9			9			9			10			1			—			37			61		(24	)


Net financing revenue		83			77			77			71			79			6			4			308			299		9

Total other revenue		53			16			33			26			17			37			36			128			45		83


Total net revenue		136			93			110			97			96			43			40			436			344		92

Provision for loan losses		33			5			(13	)		13			9			28			24			38			149		(111	)

Noninterest expense

Compensation and benefits expense		18			15			17			20			14			3			4			70			62		8

Other operating expense		12			12			11			11			9			—			3			46			45		1


Total noninterest expense		30			27			28			31			23			3			7			116			107		9


Pre-tax Income	$	73		$	61		$	95		$	53		$	64		$	12		$	9		$	282		$	88	$	194


Change in the fair value of equity securities ⁽¹⁾		2			(1	)		1			(5	)		(1	)		3			2			(4	)		1		(5	)


Core pre-tax income ⁽²⁾		75			60			96			48			63			15			11			278			89		189


Balance Sheet (Period-End)

Equity securities	$	11		$	14		$	12		$	14		$	7		$	(3	)	$	4

Loans held for sale		305			215			184			229			205			90			100

Commercial loans		7,770			6,609			6,157			6,285			6,006			1,161			1,764

Allowance for loan losses		(215	)		(183	)		(178	)		(187	)		(189	)		(32	)		(26	)


Total finance receivables and loans, net		7,555			6,426			5,979			6,098			5,817			1,129			1,738

Other assets		79			74			71			80			79			5			—


Total assets	$	7,950		$	6,729		$	6,246		$	6,421		$	6,108		$	1,221		$	1,842

(1)

See page 25 for methodology and detail.

(2)

Represents a non-GAAP financial measure.See page 25 for methodology and detail.


4Q 2021 Preliminary Results		13

ALLY FINANCIAL INC.

CORPORATE AND OTHER - CONDENSED FINANCIAL STATEMENTS


($ in millions)	QUARTERLY TRENDS															CHANGE VS.						FULL YEAR
Income Statement	4Q 21			3Q 21			2Q 21			1Q 21			4Q 20			3Q 21			4Q 20			FY 2021			FY 2020			CHANGE

Net financing revenue

Total financing revenue and other interest income	$	155		$	131		$	126		$	108		$	115		$	24		$	40		$	520		$	624		$	(104	)


Interest expense		(18	)		(7	)		27			51			72			(11	)		(90	)		53			664			(611	)


Net financing revenue / (loss)		173			138			99			57			43			35			130			467			(40	)		507

Other revenue

Loss on extinguishment of debt		(10	)		(52	)		(73	)		(1	)		(52	)		42			42			(136	)		(102	)		(34	)

Other gain on investments, net		17			22			5			20			1			(5	)		16			64			88			(24	)

Gain/(loss) on mortgage and automotive loans, net		—			—			—			—			42			—			(42	)		—			17			(17	)

Other income, net of losses ⁽¹⁾		66			42			146			39			156			24			(90	)		293			295			(2	)


Total other revenue		73			12			78			58			147			61			(74	)		221			298			(77	)


Total net revenue		246			150			177			115			190			96			56			688			258			430

Provision for loan losses		131			16			4			—			4			115			127			151			47			104

Noninterest expense

Compensation and benefits expense		220			210			256			202			167			10			53			888			661			227

Goodwill impairment		—			—			—			—			—			—			—			—			50			(50	)

Other operating expense ⁽²⁾		2			(67	)		(26	)		(74	)		(20	)		69			22			(165	)		(204	)		39


Total noninterest expense		222			143			230			128			147			79			75			723			507			216


Pre-tax (loss) income	$	(107	)	$	(9	)	$	(57	)	$	(13	)	$	39		$	(98	)	$	(146	)	$	(186	)	$	(296	)	$	110


Change in the fair value of equity securities ⁽³⁾		1			1			(1	)		—			—			—			1			1			—			1

Core OID ⁽⁴⁾		9			9			9			10			9			—			—			38			36			2

Repositioning ⁽³⁾		107			52			70			—			—			55			107			228			50			178


Core pre-tax income / (loss) ⁽⁴⁾	$	10		$	52		$	21		$	(3	)	$	48		$	(42	)	$	(38	)	$	81		$	(210	)	$	291


Balance Sheet (Period-End)

Cash, trading and investment securities	$	35,357		$	40,692		$	44,204		$	45,746		$	42,324		$	(5,335	)	$	(6,967	)

Loans held-for-sale		164			139			128			117			110			25			54

Consumer loans		2,293			1,310			1,193			1,120			1,127			983			1,166

Commercial loans		198			223			192			192			185			(25	)		13

Intercompany loans⁽⁵⁾		(923	)		(898	)		(697	)		(591	)		(830	)		(25	)		(93	)

Allowance for loan losses		(231	)		(97	)		(85	)		(82	)		(87	)		(134	)		(144	)


Total finance receivables and loans, net		1,337			538			603			639			395			799			942

Other assets		6,661			5,787			5,868			5,246			4,408			874			2,253

Total assets	$	43,519		$	47,156		$	50,803		$	51,748		$	47,237			$ (3,637	)		$ (3,718	)


Core OID Amortization Schedule ⁽⁴⁾		2022			2023			2024			2025			2026 & After


Remaining Core OID amortization expense ⁽⁶⁾	$	42		$	49		$	57		$	66			Avg = $113/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 $294 million for 4Q21, $290 million for 3Q21, $268 million for 2Q21, $257 million for 1Q21, and $254 million for 4Q20. The receiving business segment records the allocation of corporate overhead expense within other operating expenses.

(3) See page 25 for methodology and detail..

(4) Represents a non-GAAP financial measure. See page 25 for methodology and detail.

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

(6) Forecast values reflect the completion of a three-part exercise to retire a total of $2.6B trust preferred securities.


4Q 2021 Preliminary Results		14

ALLY FINANCIAL INC.

CREDIT RELATED INFORMATION


($ in millions)

	QUARTERLY TRENDS										CHANGE VS.				FULL YEAR

Asset Quality - Consolidated ⁽¹⁾	4Q 21		3Q 21		2Q 21		1Q 21		4Q 20		3Q 21		4Q 20		FY 2021		FY 2020		CHANGE

Ending loan balance	$	122,261	$	114,463	$	112,209	$	113,068	$	118,526	$	7,798	$	3,735

30+ Accruing DPD	$	1,793	$	1,591	$	1,291	$	1,122	$	1,914	$	202	$	(121)

30+ Accruing DPD %		1.47%		1.39%		1.15%		0.99%		1.61%

60+ Accruing DPD	$	401	$	308	$	247	$	244	$	438	$	93	$	(37)

60+ Accruing DPD %		0.33%		0.27%		0.22%		0.22%		0.37%

Non-performing loans (NPLs)	$	1,436	$	1,285	$	1,283	$	1,439	$	1,522	$	151	$	(86)

Net charge-offs (NCOs)	$	103	$	54	$	(6)	$	118	$	198	$	49	$	(95)	$	269	$	764	$	(495)

Net charge-off rate ⁽²⁾		0.35%		0.19%		(0.02)%		0.41%		0.67%						0.23%		0.63%

Provision for loan losses	$	210	$	76	$	(32)	$	(13)	$	102	$	134	$	108	$	241	$	1,439	$	(1,198)

Allowance for loan losses (ALLL)	$	3,267	$	3,148	$	3,126	$	3,152	$	3,283	$	119	$	(16)

ALLL as % of Loans ^{(3) (4)}		2.67%		2.75%		2.79%		2.79%		2.78%

ALLL as % of NPLs ⁽³⁾		227%		245%		244%		219%		216%

ALLL as % of NCOs ⁽³⁾		792%		1448%		n/m		667%		414%

US Auto Delinquencies - HFI Retail Contract $‘s

30+ Delinquent contract $	$	1,677	$	1,427	$	1,218	$	1,059	$	1,834	$	250	$	(157)

% of retail contract $ outstanding		2.14%		1.83%		1.60%		1.43%		2.49%

60+ Delinquent contract $	$	378	$	298	$	241	$	233	$	428	$	80	$	(50)

% of retail contract $ outstanding		0.48%		0.38%		0.32%		0.32%		0.58%

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

Net charge-offs	$	94	$	51	$	(5)	$	97	$	186	$	43	$	(92)	$	237	$	702	$	(465)

% of avg. HFI assets ⁽²⁾		0.48%		0.27%		(0.03)%		0.53%		1.01%						0.31%		0.96%

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

Net charge-offs	$	(0)	$	(0)	$	—	$	—	$	7	$	—	$	(7)	$	—	$	14	$	(14)

% of avg. HFI assets ⁽²⁾		(0.01)%		(0.01)%		—%		—%		0.12%						—%		0.05%

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

(4) Excludes ($37) million of fair value adjustment for loans in hedge accounting relationships in 4Q21, $78 million in 3Q21, $124 million in 2Q21, $173 million in 1Q21 and $225 million in 4Q20.


4Q 2021 Preliminary Results		15

ALLY FINANCIAL INC.

CREDIT RELATED INFORMATION, CONTINUED


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

*Consumer*	4Q 21		3Q 21		2Q 21		1Q 21		4Q 20		3Q 21		4Q 20
Allowance for loan losses	$	2,769	$	2,810	$	2,802	$	2,809	$	2,902	$	(41)	$	(133)

Total consumer loans ⁽²⁾	$	78,252	$	77,761	$	75,951	$	73,998	$	73,668	$	491	$	4,584

Coverage ratio ⁽³⁾		3.54%		3.62%		3.70%		3.80%		3.95%

Commercial

Allowance for loan losses	$	33	$	41	$	46	$	58	$	84	$	(8)	$	(51)

Total commercial loans	$	16,074	$	12,587	$	15,219	$	19,208	$	23,141	$	3,487	$	(7,067)

Coverage ratio		0.21%		0.32%		0.30%		0.30%		0.36%

Mortgage ⁽¹⁾

*Consumer*

Mortgage Finance

Allowance for loan losses	$	19	$	17	$	15	$	16	$	21	$	2	$	(2)

Total consumer loans	$	17,644	$	16,059	$	13,629	$	12,445	$	14,632	$	1,585	$	3,012

Coverage ratio		0.11%		0.11%		0.11%		0.13%		0.15%

Mortgage - Legacy

Allowance for loan losses	$	8	$	8	$	9	$	10	$	12	$	—	$	(4)

Total consumer loans	$	368	$	396	$	429	$	458	$	495	$	(28)	$	(127)

Coverage ratio		2.05%		2.04%		2.16%		2.19%		2.40%

Total Mortgage

Allowance for loan losses	$	27	$	25	$	24	$	26	$	33	$	2	$	(6)

Total consumer loans	$	18,012	$	16,455	$	14,058	$	12,903	$	15,127	$	1,557	$	2,885

Coverage ratio		0.15%		0.15%		0.18%		0.20%		0.22%

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

Allowance for loan losses	$	102	$	86	$	72	$	69	$	73	$	16	$	29

Total consumer loans	$	1,002	$	828	$	632	$	482	$	399	$	174	$	603

Coverage ratio		10.20%		10.34%		11.39%		14.33%		18.38%

Consumer Other - Fair Square ^{(1) (5)}

Allowance for loan losses	$	119		—		—		—		—	$	119	$	119

Total consumer loans	$	953		—		—		—		—	$	953	$	953

Coverage ratio		12.44%		—		—		—		—

Corporate Finance ⁽¹⁾

Allowance for loan losses	$	215	$	183	$	178	$	187	$	189	$	32	$	26

Total commercial loans	$	7,770	$	6,609	$	6,157	$	6,285	$	6,006	$	1,161	$	1,764

Coverage ratio		2.77%		2.78%		2.90%		2.98%		3.14%

Corporate and Other ⁽¹⁾

Allowance for loan losses	$	2	$	3	$	4	$	3	$	2	$	(1)	$	—

Total commercial loans	$	198	$	223	$	192	$	192	$	185	$	(25)	$	13

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 ($37) million of fair value adjustment for loans in hedge accounting relationships in 4Q21, $78 million in 3Q21, $124 million in 2Q21, $173 million in 1Q21 and $225 million in 4Q20.

(3) Excludes ($37) million of fair value adjustment for loans in hedge accounting relationships in 4Q21, $78 million in 3Q21, $124 million in 2Q21, $173 million in 1Q21 and $225 million in 4Q20.

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

(5) Credit card lending portfolio


4Q 2021 Preliminary Results		16

ALLY FINANCIAL INC.

CAPITAL


($ in billions)	QUARTERLY TRENDS										CHANGE VS.

Capital	4Q 21		3Q 21		2Q 21		1Q 21		4Q 20		3Q 21		4Q 20

Risk-weighted assets	$	146.7	$	140.0	$	138.8	$	138.8	$	139.8	$	6.7	$	6.9

Common Equity Tier 1 (CET1) capital ratio		10.3%		11.2%		11.3%		11.1%		10.6%

Tier 1 capital ratio		11.9%		12.8%		13.1%		12.8%		12.4%

Total capital ratio		13.4%		14.6%		14.8%		14.6%		14.1%

Tangible common equity / Tangible assets ⁽¹⁾⁽²⁾		7.6%		8.2%		8.2%		7.8%		7.9%

Tangible common equity / Risk-weighted assets ⁽¹⁾		9.4%		10.4%		10.7%		10.3%		10.2%

Shareholders’ equity	$	17.1	$	17.3	$	17.5	$	14.6	$	14.7	$	(0.2)	$	2.4

add: CECL phase-in adjustment		1.2		1.2		1.1		1.2		1.2		—		—

less: Certain AOCI items and other adjustments		(0.8)		(0.5)		(0.6)		(0.4)		(1.0)		(0.3)		0.2

Preferred equity		(2.3)		(2.3)		(2.3)		—		—		—		(2.3)


Common Equity Tier 1 capital	$	15.1	$	15.7	$	15.7	$	15.4	$	14.9	$	(0.6)	$	0.2


Common Equity Tier 1 capital	$	15.1	$	15.7	$	15.7	$	15.4	$	14.9	$	(0.6)	$	0.2

add: Preferred equity		2.3		2.3		2.3		—		—		—		2.3

Trust preferred securities		—		—		0.2		2.5		2.5		—		(2.5)

less: Other adjustments		(0.1)		(0.1)		(0.1)		(0.1)		(0.1)		—		—


Tier 1 capital	$	17.4	$	17.9	$	18.2	$	17.8	$	17.3	$	(0.5)	$	0.1


Tier 1 capital	$	17.4	$	17.9	$	18.2	$	17.8	$	17.3	$	(0.5)	$	0.1

add: Qualifying subordinated debt		0.6		0.8		0.8		0.8		0.8		(0.2)		(0.2)

Allowance for loan and lease losses includible in Tier 2 capital and other adjustments		1.7		1.6		1.6		1.6		1.7		0.1		—


Total capital	$	19.7	$	20.4	$	20.6	$	20.2	$	19.8	$	(0.7)	$	(0.1)


Total shareholders’ equity	$	17.1	$	17.3	$	17.5	$	14.6	$	14.7	$	(0.2)	$	2.4

less: Preferred equity		(2.3)		(2.3)		(2.3)		—		—		—		(2.3)

Goodwill and intangible assets, net of deferred tax liabilities		(0.9)		(0.4)		(0.4)		(0.4)		(0.4)		(0.5)		(0.5)


Tangible common equity ⁽¹⁾	$	13.8	$	14.6	$	14.8	$	14.2	$	14.3	$	(0.8)	$	(0.5)


Total assets	$	182.4	$	179.2	$	180.5	$	181.9	$	182.2	$	3.2	$	0.2

less: Goodwill and intangible assets, net of deferred tax liabilities		(0.9)		(0.4)		(0.4)		(0.4)		(0.4)		(0.5)		(0.5)


Tangible assets ⁽²⁾	$	181.4	$	178.8	$	180.1	$	181.5	$	181.8	$	2.6	$	(0.4)

Note: Numbers may not foot due to rounding

(1)

Represents a non-GAAP financial measure. See page 25 for methodology and detail.

(2)

Represents a non-GAAP financial measure. 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 25.


4Q 2021 Preliminary Results		17

ALLY FINANCIAL INC.

LIQUIDITY AND DEPOSITS


	QUARTERLY TRENDS										CHANGE VS.
Consolidated Available Liquidity ($ in billions)	4Q 21		3Q 21		2Q 21		1Q 21		4Q 20		3Q 21			4Q 20

Liquid cash and cash equivalents ⁽¹⁾	$	4.4	$	10.1	$	13.0	$	15.2	$	14.9	$	(5.7	)	$	(10.5	)

Highly liquid securities ⁽²⁾		26.8		26.7		28.4		28.0		24.8		0.1			2.0

Current committed unused capacity		—		0.1		0.2		0.4		0.6		(0.1	)		(0.6	)


Total current available liquidity	$	31.2	$	36.9	$	41.6	$	43.6	$	40.3	$	(5.7	)	$	(9.1	)


Unsecured Long-Term Debt Maturity Profile	2022		2023		2024		2025		2026		2027 & After

Consolidated remaining maturities ⁽³⁾	$	1.1	$	2.0	$	1.5	$	2.3	$	—	$	3.1

Ally Bank Deposits

Key Deposit Statistics

Average retail CD maturity (months)		20.3		20.2		20.1		20.0		19.7		0.1			0.6

Average retail deposit rate		0.61%		0.64%		0.69%		0.81%		0.97%

End of Period Deposit Levels ($ in millions)

Retail	$	134,672	$	131,590	$	129,222	$	128,371	$	124,357	$	3,082		$	10,315

Brokered & other		6,886		7,854		9,882		11,215		12,680		(968	)		(5,794	)


Total deposits	$	141,558	$	139,445	$	139,104	$	139,585	$	137,036	$	2,113		$	4,521


Deposit Mix

Retail CD		26%		27%		28%		30%		33%

MMA/OSA/Checking		70%		67%		65%		62%		58%

Brokered		5%		6%		7%		8%		9%

(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 and trust preferred securities; as of 12/31/2021. Reflects notional value of outstanding bond. Excludes total GAAP OID and capitalized transaction costs.


4Q 2021 Preliminary Results		18

ALLY FINANCIAL INC.

NET INTEREST MARGIN


($ in millions)	QUARTERLY TRENDS										CHANGE VS.				FULL YEAR

Average Balance Details	4Q 21		3Q 21		2Q 21		1Q 21		4Q 20		3Q 21		4Q 20		FY 2021		FY 2020		CHANGE

Retail Auto Loans	$	77,979	$	76,557	$	74,662	$	73,500	$	73,401	$	1,422	$	4,578	$	75,689	$	72,805	$	2,884

Auto Lease (net of dep)		10,951		10,919		10,355		9,831		9,587		32		1,364		10,518		9,264		1,254

Dealer Floorplan		9,539		8,849		10,825		15,612		16,573		689		(7,034)		11,183		19,308		(8,125)

Other Dealer Loans		4,829		5,038		5,507		5,729		5,844		(209)		(1,015)		5,273		5,740		(467)

Corporate Finance		7,147		6,735		6,383		6,338		6,203		412		946		6,653		6,265		388

Mortgage⁽¹⁾		17,533		15,125		13,179		14,310		15,445		2,408		2,088		15,046		16,812		(1,766)

Consumer Other - Ally Lending⁽²⁾		923		728		537		444		366		195		557		660		275		385

Consumer Other - Fair Square ⁽³⁾		309		—		—		—		—		309		309		78		—		78

Cash and Cash Equivalents		6,532		13,055		16,564		15,363		17,758		(6,524)		(11,226)		12,855		13,985		(1,130)

Investment Securities and Other		37,146		35,532		36,784		34,996		33,331		1,614		3,815		36,118		32,976		3,142

Total Earning Assets	$	172,888	$	172,538	$	174,796	$	176,123	$	178,509	$	350	$	(5,621)	$	174,073	$	177,155	$	(3,082)
Interest Revenue		2,069		2,038		2,044		1,929		1,947		31		122		8,081		7,946		135

Unsecured Debt (ex. Core OID balance) ⁽⁴⁾⁽⁷⁾	$	10,061	$	9,787	$	11,737	$	12,910	$	12,735	$	274	$	(2,674)	$	11,113	$	12,216	$	(1,103)

Secured Debt		1,331		1,675		2,618		3,793		5,289		(344)		(3,958)		2,346		7,181		(4,835)

Deposits ⁽⁵⁾		140,043		139,244		139,382		137,718		135,642		799		4,401		139,104		129,238		9,866

Other Borrowings ⁽⁶⁾		4,990		4,929		5,044		6,307		9,462		61		(4,471)		5,313		14,426		(9,113)

Total Funding Sources (ex. Core OID balance) ⁽⁴⁾	$	156,425	$	155,635	$	158,781	$	160,728	$	163,128	$	790	$	(6,703)	$	157,876	$	163,061	$	(5,185)

Interest Expense (ex. Core OID) ⁽⁴⁾		406		435		488		547		636		(28)		(230)		1,876		3,207		(1,331)

Net Financing Revenue (ex. Core OID) ⁽⁴⁾	$	1,663	$	1,603	$	1,556	$	1,382	$	1,312	$	60	$	351	$	6,205	$	4,739	$	1,466

Net Interest Margin (yield details)

Retail Auto Loan		6.61%		6.62%		6.70%		6.66%		6.57%		(0.01)%		0.04%		6.65%		6.54%		0.11%

Retail Auto Loan (excl. hedge impact)		6.81%		6.84%		6.92%		6.90%		6.83%		(0.03)%		(0.02)%		6.87%		6.77%		0.10%

Auto Lease (net of dep)		7.88%		9.21%		11.67%		8.57%		7.82%		(1.33)%		0.06%		9.32%		6.30%		3.02%

Dealer Floorplan		2.98%		3.18%		3.31%		3.17%		3.07%		(0.21)%		(0.09)%		3.17%		3.44%		(0.27)%

Other Dealer Loans		4.10%		4.16%		4.18%		4.36%		4.11%		(0.07)%		(0.01)%		4.21%		4.21%		—%

Corporate Finance		5.15%		5.12%		5.37%		5.14%		5.69%		0.02%		(0.54)%		5.19%		5.74%		(0.55)%

Mortgage		2.77%		2.83%		2.80%		2.74%		2.74%		(0.06)%		0.03%		2.79%		3.09%		(0.30)%

Consumer Other - Ally Lending⁽²⁾		12.89%		13.86%		14.44%		14.95%		16.68%		(0.97)%		(3.79)%		13.82%		15.80%		(1.98)%

Consumer Other - Fair Square ⁽³⁾		18.11%		—%		—%		—%		—%		18.11%		18.11%		18.11%		—%		18.11%

Cash and Cash Equivalents		0.14%		0.14%		0.10%		0.10%		0.10%		—%		0.04%		0.12%		0.20%		(0.08)%

Investment Securities and Other		1.81%		1.76%		1.63%		1.55%		1.70%		0.05%		0.11%		1.60%		2.38%		(0.78)%

Total Earning Assets		4.75%		4.68%		4.69%		4.44%		4.34%		0.07%		0.41%		4.64%		4.49%		0.15%

Unsecured Debt (ex. Core OID & Core OID balance) ⁽⁴⁾⁽⁷⁾		5.02%		5.19%		5.33%		5.42%		5.45%		(0.17)%		(0.43)%		5.25%		5.89%		(0.64)%

Secured Debt		5.91%		4.29%		4.44%		3.35%		3.07%		1.62%		2.84%		4.19%		2.84%		1.35%

Deposits ⁽⁵⁾		0.64%		0.70%		0.77%		0.90%		1.08%		(0.06)%		(0.44)%		0.75%		1.51%		(0.76)%

Other Borrowings⁽⁶⁾		2.59%		3.42%		2.81%		2.47%		2.18%		(0.83)%		0.41%		2.80%		2.29%		0.51%

Total Funding Sources (ex. Core OID & Core OID balance) ⁽⁴⁾		1.03%		1.11%		1.23%		1.38%		1.55%		(0.08)%		(0.52)%		1.19%		1.97%		(0.78)%

NIM (as reported)		3.80%		3.66%		3.55%		3.16%		2.90%		0.14%		0.90%		3.54%		2.65%		0.89%

NIM (ex. Core OID & Core OID balance) ⁽⁴⁾		3.82%		3.68%		3.57%		3.18%		2.92%		0.14%		0.90%		3.56%		2.67%		0.89%

(1)

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

(2)

Unsecured consumer lending from point-of-sale financing.

(3)

Credit Card lending portfolio. Fair Square 4Q2021 end of period balance was $953 million. Average Balance reflects one month of active balances on balance sheet (12/1/2021 12/31/2021) and $0 for prior months within period

(4)

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

(5)

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

(6)

Includes Demand Notes (terminated on 3/1/21), FHLB Borrowings, Repurchase Agreements and other.

(7)

Includes trust preferred securities.


4Q 2021 Preliminary Results		19

ALLY FINANCIAL INC.

ALLY BANK CONSUMER MORTGAGE HFI PORTFOLIOS (PERIOD-END)


($ in billions)	QUARTERLY TRENDS
Mortgage Finance HFI Portfolio	4Q 21		3Q 21		2Q 21		1Q 21		4Q 20
Loan Value

Gross carry value	$	17.6	$	16.1	$	13.6	$	12.4	$	14.6

Net carry value	$	17.6	$	16.0	$	13.6	$	12.4	$	14.6

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⁾		0.8%		1.1%		0.8%		0.8%		0.8%

% Low/No documentation		0.1%		0.1%		0.1%		0.2%		0.2%

% Non-primary residence		3.9%		4.3%		4.9%		4.9%		4.8%

Refreshed FICO⁽³⁾		776		776		776		775		776

Wtd. Avg. LTV/CLTV ⁽⁴⁾		56.9%		57.6%		58.8%		57.5%		60.1%

Corporate Other Legacy Mortgage HFI Portfolio
Loan Value

Gross carry value	$	0.4	$	0.4	$	0.4	$	0.5	$	0.5

Net carry value	$	0.4	$	0.4	$	0.4	$	0.4	$	0.5

Estimated Pool Characteristics

% Second lien		15.0%		15.6%		16.5%		18.0%		19.8%

% Interest only		0.1%		0.2%		0.1%		0.1%		0.1%

% 30+ Day delinquent⁽¹⁾⁽²⁾		7.5%		8.1%		6.3%		7.0%		7.1%

% Low/No documentation		23.4%		23.3%		23.1%		22.5%		22.2%

% Non-primary residence		3.5%		3.6%		3.2%		3.7%		3.6%

Refreshed FICO⁽³⁾		735		735		734		731		733

Wtd. Avg. LTV/CLTV ⁽⁴⁾		54.2%		56.0%		61.0%		62.2%		62.8%

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.


4Q 2021 Preliminary Results		20

ALLY FINANCIAL INC.

EARNINGS PER SHARE RELATED INFORMATION


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

Earnings Per Share Data		4Q 21			3Q 21			2Q 21			1Q 21			4Q 20			3Q 21			4Q 20			FY 2021			FY 2020			CHANGE

GAAP net income attributable to common shareholders		$	624		$	683		$	900		$	796		$	687		$	(59	)	$	(63	)	$	3,003		$	1,085		$	1,918

Weighted-average common shares outstanding - basic			345,870			359,179			370,412			375,229			376,081			(13,309	)		(30,211	)		362,583			375,629			(13,047	)

Weighted-average common shares outstanding - diluted			348,666			361,855			373,029			377,529			378,424			(13,189	)		(29,757	)		365,180			377,101			(11,921	)

Issued shares outstanding (period-end)			337,941			349,599			362,639			371,805			374,674			(11,658	)		(36,734	)		337,941			374,674			(36,734	)


Net income per share - basic		$	1.80		$	1.90		$	2.43		$	2.12		$	1.83		$	(0.10	)	$	(0.02	)	$	8.28		$	2.89		$	5.39


Net income per share - diluted		$	1.79		$	1.89		$	2.41		$	2.11		$	1.82		$	(0.10	)	$	(0.03	)	$	8.22		$	2.88		$	5.35


Adjusted Earnings per Share (“Adjusted EPS”)

Numerator

GAAP net income attributable to common shareholders		$	624		$	683		$	900		$	796		$	687		$	(59	)	$	(63	)	$	3,003		$	1,085		$	1,918

Discontinued operations, net of tax			6			—			(1	)		—			—			6			6			5			1			4

Core OID			9			9			9			10			9			—			—			38			36			2

Change in the fair value of equity securities			(21	)		65			(19	)		(17	)		(111	)		(86	)		90			7			(29	)		37

Core OID, repositioning & change in the fair value of equity securities tax (tax rate 21%)			(20	)		(26	)		(13	)		1			21			6			(41	)		(57	)		(1	)		(56	)

Repositioning			107			52			70			—			—			55			107			228			50			178

Significant discrete tax items			—			—			(78	)		—			—			—			—			(78	)		—			(78	)


Core net income attributable to common shareholders ⁽¹⁾		$	705		$	782		$	868		$	790		$	606		$	(77	)	$	99		$	3,146		$	1,141		$	2,005

Denominator

Weighted-average common shares outstanding - diluted			348,666			361,855			373,029			377,529			378,424			(13,189	)		(29,757	)		365,180			377,101			(11,921	)

Adjusted EPS ⁽²⁾		$	2.02		$	2.16		$	2.33		$	2.09		$	1.60		$	(0.14	)	$	0.42		$	8.61		$	3.03		$	5.59

Core original issue discount (Core OID) amortization expense ⁽¹⁾		$	9		$	9		$	9		$	10		$	9		$	—		$	—		$	38		$	36		$	2

Other OID			3			3			3			3			3			—			—			11			13			(2	)


GAAP original issue discount amortization expense		$	12		$	12		$	12		$	12		$	13		$	1		$	—		$	49		$	49		$	—


Core outstanding original issue discount balance (Core OID balance) ⁽¹⁾		$	(883	)	$	(900	)	$	(952	)	$	(1,018	)	$	(1,027	)	$	17		$	144		$	(883	)	$	(1,027	)	$	144

Other outstanding OID balance			(40	)		(29	)		(32	)		(34	)		(37	)		(11	)		(3	)		(40	)		(37	)		(3	)


GAAP outstanding original issue discount balance		$	(923	)	$	(929	)	$	(983	)	$	(1,052	)	$	(1,064	)	$	6		$	141		$	(923	)	$	(1,064	)	$	141


GAAP net financing revenue	[A]	$	1,654		$	1,594		$	1,547		$	1,372		$	1,303		$	60		$	351		$	6,167		$	4,703		$	1,464

Core OID			9			9			9			10			9			—			—			38			36			2


Net Financing Revenue (ex. Core OID)	[B]	$	1,663		$	1,603		$	1,556		$	1,382		$	1,312		$	60		$	351		$	6,205		$	4,739		$	1,466


GAAP Other Revenue	[C]	$	545		$	391		$	538		$	565		$	678		$	154		$	(133	)	$	2,039		$	1,983		$	56

Repositioning			9			52			70			—			—			(42	)		9		$	131		$	—		$	131

Change in the fair value of equity securities			(21	)		65			(19	)		(17	)		(111	)		(86	)		90			7			(29	)		37


Adjusted Other Revenue	[D]	$	533		$	507		$	588		$	548		$	567		$	26		$	(33	)	$	2,177		$	1,954		$	223


GAAP Provision Expense		$	210		$	76		$	(32	)	$	(13	)	$	102		$	134		$	108		$	241		$	1,439		$	(1,198	)

Repositioning			(97	)		—			—			—			—			(97	)		(97	)		(97	)		—			(97	)


Adjusted Provision (ex. Repositioning)		$	113		$	76		$	(32	)	$	(13	)	$	102		$	37		$	11		$	144		$	1,439		$	(1,295	)


GAAP Noninterest expense	[E]	$	1,090		$	1,002		$	1,075		$	943		$	1,023		$	88		$	67		$	4,110		$	3,833		$	277

Repositioning and other ⁽³⁾			—			—			—			—			—			—			—			—			(50	)		50


Adjusted Noninterest Expense	[F]	$	1,090		$	1,002		$	1,075		$	943		$	1,023		$	88		$	67		$	4,110		$	3,783		$	327


Pre-Provision Net Revenue (PPNR)	[A]+[C]+[E]	$	1,109		$	983		$	1,010		$	994		$	958		$	126		$	151		$	4,096		$	2,853		$	1,243

Core Pre-Provision Net Revenue (PPNR) ⁽¹⁾	[B]+[D]+[F]	$	1,107		$	1,108		$	1,070		$	987		$	856		$	(2	)	$	251		$	4,271		$	2,909		$	1,362

(1) Represents a non-GAAP financial measure. See page 25 for definitions.

(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) excludes equity fair value adjustments (net of tax) related to ASU 2016-01 which requires change in the fair value of equity securities to be recognized in current period net income as compared to periods prior to 1/1/18 in which such adjustments were recognized through other comprehensive income, a component of equity, and (5) excludes significant discrete tax items that do not relate to the operating performance of the core businesses, and adjusts for preferred stock capital actions (e.g., Series A and Series G) that have been taken by the company to normalize its capital structure, as applicable for respective periods.

(3) Repositioning and other includes a $50 million Goodwill impairment at Ally Invest in 2Q20.


4Q 2021 Preliminary Results		21

ALLY FINANCIAL INC.

ADJUSTED TANGIBLE BOOK PER SHARE RELATED INFORMATION


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

Adjusted Tangible Book Value Per Share (“Adjusted TBVPS”) Information	4Q 21		3Q 21		2Q 21		1Q 21		4Q 20		3Q 21		4Q 20

Numerator

GAAP shareholder’s equity	$	17,050	$	17,289	$	17,530	$	14,625	$	14,703	$	(239)	$	2,347

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

GAAP common shareholder’s equity	$	14,726	$	14,965	$	15,206	$	14,625	$	14,703	$	(239)	$	23

Goodwill and identifiable intangibles, net of DTLs		(941)		(369)		(374)		(378)		(383)		(572)		(559)


Tangible common equity ⁽¹⁾		13,785		14,596		14,832		14,247		14,320		(811)		(536)

Tax-effected Core OID balance (21% tax rate) ⁽¹⁾		(698)		(711)		(752)		(804)		(812)		14		114

Adjusted tangible book value ⁽²⁾	$	13,087	$	13,885	$	14,081	$	13,443	$	13,509	$	(798)	$	(422)


Denominator

Issued shares outstanding (period-end, thousands)		337,941		349,599		362,639		371,805		374,674		(11,658)		(36,734)

GAAP shareholder’s equity per share	$	50.45	$	49.45	$	48.34	$	39.34	$	39.24	$	1.00	$	11.21

Preferred equity per share		(6.88)		(6.65)		(6.41)		—		—		(0.23)		(6.88)

GAAP common shareholder’s equity per share	$	43.58	$	42.81	$	41.93	$	39.34	$	39.24	$	0.77	$	4.33

Goodwill and identifiable intangibles, net of DTLs per share		(2.79)		(1.06)		(1.03)		(1.02)		(1.02)		(1.73)		(1.76)


Tangible common equity per share ⁽¹⁾		40.79		41.75		40.90		38.32		38.22		(0.96)		2.57

Tax-effected Core OID balance (21% tax rate) per share ⁽¹⁾		(2.06)		(2.03)		(2.07)		(2.16)		(2.17)		(0.03)		0.10


Adjusted tangible book value per share ⁽²⁾	$	38.73	$	39.72	$	38.83	$	36.16	$	36.05	$	(0.99)	$	2.67

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

(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.


4Q 2021 Preliminary Results		22

ALLY FINANCIAL INC.

CORE ROTCE RELATED INFORMATION


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

Core Return on Tangible Common Equity (“Core ROTCE”)	4Q 21		3Q 21		2Q 21		1Q 21		4Q 20		3Q 21		4Q 20		FY 2021			FY 2020			CHANGE

Numerator

GAAP net income attributable to common shareholders	$	624	$	683	$	900	$	796	$	687	$	(59)	$	(63)	$	3,003		$	1,085		$	1,918

Discontinued operations, net of tax		6		—		(1)		—		—		6		6		5			1			4

Core OID		9		9		9		10		9		—		—		38			36			2

Change in the fair value of equity securities		(21)		65		(19)		(17)		(111)		(86)		90		7			(29)			37

Core OID, repositioning & change in the fair value of equity securities tax (tax rate 21%)		(20)		(26)		(13)		1		21		18		(19)		(57)			(1)			(56)

Repositioning		107		52		70		—		—		55		107		228			50			178

Significant discrete tax items		—		—		(78)		—		—		—		—		(78)			—			(78)


Core net income attributable to common shareholders ⁽¹⁾	$	705	$	782	$	868	$	790	$	606	$	(77)	$	99	$	3,146		$	1,141		$	2,005

Denominator (average, $ millions)

GAAP shareholder’s equity	$	17,170	$	17,410	$	16,078	$	14,664	$	14,415	$	(240)	$	2,755	$	16,239		$	14,118		$	2,121

Preferred equity		(2,324)		(2,324)		(1,162)		—		—		—		(2,324)		(1,394)			—			(1,394)

Goodwill & identifiable intangibles, net of deferred tax liabilities (“DTLs”)		(655)		(371)		(376)		(380)		(385)		(284)		(271)		(489)			(411)			(78)


Tangible common equity ⁽¹⁾	$	14,190	$	14,714	$	14,540	$	14,284	$	14,030	$	(524)	$	160	$	14,356		$	13,707		$	649

Core OID balance		(892)		(926)		(985)		(1,023)		(1,032)		34		141		(956)			(1,046)			90

Net deferred tax asset (“DTA”)		(551)		(866)		(571)		(136)		(50)		314		(501)		(451)			(96)			(356)


Normalized common equity	$	12,747	$	12,923	$	12,984	$	13,125	$	12,947	$	(175)	$	(200)	$	12,949		$	12,566		$	383

Core Return on Tangible Common Equity ⁽²⁾		22.1%		24.2%		26.7%		24.1%		18.7%						24.3	%		9.1	%

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

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

1. In the numerator of Core ROTCE, GAAP net income attributable to common shareholders is adjusted for discontinued operations net of tax, repositioning and other which is primarily related to the extinguishment of high cost legacy debt, strategic activities and significant onetime items, tax-effected Core OID, fair value adjustments (net of tax) related to ASU 2016-01, effective 1/1/2018, which requires change in the fair value of equity securities to be recognized in current period net income as compared to prior periods in which such adjustments were recognized through other comprehensive income, a component of equity, significant discrete tax items, and preferred stock capital actions, as applicable for respective periods..

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


4Q 2021 Preliminary Results		23

ALLY FINANCIAL INC.

ADJUSTED EFFICIENCY RATIO RELATED INFORMATION

LOGO


($ in millions)	QUARTERLY TREND															CHANGE VS.				FULL YEAR

	4Q 21			3Q 21			2Q 21			1Q 21			4Q 20			3Q 21		4Q 20		FY 2021			FY 2020			CHANGE

Numerator

GAAP Noninterest expense	$	1,090		$	1,002		$	1,075		$	943		$	1,023		$	88	$	67	$	4,110		$	3,833		$	277

Rep and warrant expense		—			—			—			—			—			—		—		—			—			—

Insurance expense		(263)			(273)			(272)			(253)			(246)			10		(17)		(1,061)			(1,092)			31

Repositioning		—			—			—			—			—			—		—		—			(50)			50

Adjusted noninterest expense for the efficiency ratio	$	827		$	729		$	803		$	690		$	777		$	98	$	50	$	3,049		$	2,691		$	358

Denominator

Total net revenue	$	2,199		$	1,985		$	2,085		$	1,937		$	1,981		$	214	$	218	$	8,206		$	6,686		$	1,520

Core OID		9			9			9			10			9			—		—		38			36			2

Insurance revenue		(354)			(297)			(359)			(394)			(429)			(57)		75		(1,404)			(1,376)			(28)

Repositioning		9			52			70			—			—			(42)		9		131			—			131

Adjusted net revenue for the efficiency ratio	$	1,864		$	1,749		$	1,805		$	1,553		$	1,561		$	115	$	302	$	6,970		$	5,346		$	1,625

Adjusted Efficiency Ratio ⁽¹⁾		44.4	%		41.7	%		44.5	%		44.4	%		49.8	%						43.7	%		50.3	%

(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.


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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: Adjusted Earnings per Share (Adjusted EPS), Core pre tax income, Core net income attributable to common shareholders, Core return on tangible common equity (Core ROTCE), Adjusted efficiency ratio, Adjusted total net revenue, Adjusted other revenue, Adjusted noninterest expense, Core original issue discount (Core OID) amortization expense and Core outstanding original issue discount balance (Core OID balance), Net financing revenue (excluding Core OID), and Adjusted tangible book value per share (Adjusted TBVPS). These measures are used by management and we believe are useful to investors in assessing the company’s operating performance and capital. For calculation methodology, refer to the Reconciliation to GAAP later in this document.

1) Core pre-tax income is a non-GAAP financial measure that adjusts pre-tax income from continuing operations by excluding (1) Core OID, and (2) equity fair value adjustments related to ASU 2016-01 which requires change in the fair value of equity securities to be recognized in current period net income as compared to periods prior to 1/1/18 in which such adjustments were recognized through other comprehensive income, a component of equity (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. See page 5 for calculation methodology and details.

2) Core net income attributable to common shareholders is a non-GAAP financial measure that serves as the numerator in the calculations of Adjusted EPS and Core ROTCE and that, like those measures, is believed by management to help the reader better understand the operating performance of the core businesses and their ability to generate earnings. Core net income attributable to common shareholders adjusts GAAP net income attributable to common shareholders for discontinued operations net of tax, tax-effected Core OID expense, tax-effected repositioning and other primarily related to the extinguishment of high-cost legacy debt and strategic activities and significant other, preferred stock capital actions, significant discrete tax items and tax-effected changes in equity investments measured at fair value, as applicable for respective periods. See page 21 calculation methodology and details.

3) Tangible Common Equity is a non-GAAP financial measure that is defined as common stockholders’ equity less goodwill and identifiable intangible assets, net of deferred tax liabilities. Ally considers various measures when evaluating capital adequacy, including tangible common equity. Ally believes that tangible common equity is important because we believe readers may assess our capital adequacy using this measure. Additionally, presentation of this measure allows readers to compare certain aspects of our capital adequacy on the same basis to other companies in the industry. For purposes of calculating Core return on tangible common equity (Core ROTCE), tangible common equity is further adjusted for Core OID balance and net deferred tax asset. See page 22 for more details.

4) 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. See page 21 calculation methodology and details.

5) Core outstanding original issue discount balance (Core OID balance) is a non-GAAP financial measure for outstanding OID and is believed by management to help the reader better understand the balance removed from Core ROTCE and Adjusted TBVPS. Core OID balance is primarily related to bond exchange OID which excludes international operations and future issuances. See page 21 for calculation methodology and details

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

7) 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.

8) Change in fair value of equity securities impacts the Insurance, Corporate Finance and Corporate and Other segments. Reflects equity fair value adjustments related to ASU 2016-01 which requires change in the fair value of equity securities to be recognized in current period net income as compared to periods prior to 1/1/18 in which such adjustments were recognized through other comprehensive income, a component of equity.

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

10) Core pre-provision net revenue (Core PPNR) is a non-GAAP financial measure calculated by adjusting Core pre-tax income to add back provision for credit losses. Management believes that Core PPNR is a helpful financial metric because it enables the reader to assess the core businesses ability to generate earnings to cover credit losses and is utilized by the 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. See page 21 for calculation detail.


4Q 2021 Preliminary Results		25