EX-99.3

EX-99.3 4 d370965dex993.htm EX-99.3 EX-99.3

Exhibit 99.3

LOGO

SECOND QUARTER 2022

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, 2021, 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 2022 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 2022 Preliminary Results		3

ALLY FINANCIAL INC.

CONSOLIDATED FINANCIAL HIGHLIGHTS


($ in millions, shares in thousands)	QUARTERLY TRENDS										CHANGE VS.
Selected Income Statement Data	2Q 22		1Q 22		4Q 21		3Q 21		2Q 21		1Q 22		2Q 21

Net financing revenue (excluding Core OID) ⁽¹⁾	$	1,774	$	1,703	$	1,663	$	1,603	$	1,556	$	71	$	218

Core OID		(10)		(10)		(9)		(9)		(9)		—		(1)

Net financing revenue (as reported)		1,764		1,693		1,654		1,594		1,547		71		217

Other revenue (adjusted) ⁽¹⁾		448		508		533		507		588		(59)		(140)

Change in fair value of equity securities ⁽²⁾		(136)		(66)		21		(65)		19		(71)		(156)

Repositioning ⁽²⁾		—		—		(9)		(52)		(70)		—		70

Other revenue (as reported)		312		442		545		391		538		(130)		(226)

Provision for loan losses		304		167		210		76		(32)		137		336

Total noninterest expense ⁽³⁾		1,138		1,122		1,090		1,002		1,075		16		63


Pre-tax income from continuing operations		634		846		899		907		1,042		(212)		(408)

Income tax expense		152		191		241		195		143		(39)		9

(Loss) income from discontinued operations, net of tax		—		—		(6)		—		1		—		(1)


Net Income		482		655		652		712		900		(173)		(418)

Preferred Dividends		28		28		28		29		—		—		28


Net income attributable to common shareholders	$	454	$	627	$	624	$	683	$	900	$	(173)	$	(446)


Core Pre-Provision Net Revenue ⁽⁴⁾	$	1,084	$	1,088	$	1,107	$	1,108	$	1,070	$	(4)	$	15

Selected Balance Sheet Data (Period-End)

Total assets	$	185,703	$	184,297	$	182,350	$	179,184	$	180,470	$	1,406	$	5,233

Consumer loans		103,683		99,869		98,226		95,052		90,649		3,814		13,034

Commercial loans		24,774		25,496		24,042		19,419		21,568		(722)		3,206

Allowance for loan losses		(3,450)		(3,301)		(3,267)		(3,148)		(3,126)		(149)		(324)

Deposits		140,401		142,475		141,558		139,444		139,104		(2,074)		1,297

Total equity		13,984		15,413		17,050		17,289		17,530		(1,429)		(3,546)

Common Share Count

Weighted average basic		322,057		335,678		345,870		359,179		370,412		(13,621)		(48,355)

Weighted average diluted		324,027		337,812		348,666		361,855		373,029		(13,784)		(49,001)

Issued shares outstanding (period-end)		312,781		327,306		337,941		349,599		362,639		(14,525)		(49,857)

Per Common Share Data

Earnings per share (basic)	$	1.41	$	1.87	$	1.80	$	1.90	$	2.43	$	(0.46)	$	(1.02)

Earnings per share (diluted)		1.40		1.86		1.79		1.89		2.41		(0.45)		(1.01)

Adjusted earnings per share ⁽¹⁾		1.76		2.03		2.02		2.16		2.33		(0.27)		(0.57)

Book value per share		37.28		39.99		43.58		42.81		41.93		(2.71)		(4.65)

Tangible book value per share ⁽⁵⁾		34.34		37.14		40.79		41.75		40.90		(2.81)		(6.57)

Adjusted tangible book value per share ⁽⁵⁾		32.16		35.04		38.73		39.72		38.83		(2.88)		(6.67)

Select Financial Ratios

Net interest margin (as reported)		4.04%		3.93%		3.80%		3.66%		3.55%

Net interest margin (ex. Core OID) ⁽¹⁾		4.06%		3.95%		3.82%		3.68%		3.57%

Cost of funds		1.16%		1.03%		1.06%		1.14%		1.27%

Cost of funds (ex. Core OID) ⁽¹⁾		1.12%		0.99%		1.03%		1.11%		1.23%

Efficiency Ratio ⁽⁶⁾		54.8%		52.6%		49.6%		50.5%		51.6%

Adjusted efficiency ratio ⁽⁶⁾		43.9%		45.6%		44.4%		41.7%		44.5%

Return on average assets		1.0%		1.4%		1.4%		1.5%		2.0%

Return on average total equity		12.4%		15.5%		14.5%		15.7%		22.4%

Return on average tangible common equity		15.9%		19.3%		17.6%		18.6%		24.8%

Core ROTCE ⁽⁷⁾		23.2%		23.6%		22.1%		24.2%		26.7%

Capital Ratios ⁽⁸⁾

Common Equity Tier 1 (CET1) capital ratio		9.6%		10.0%		10.3%		11.2%		11.3%

Tier 1 capital ratio		11.1%		11.5%		11.9%		12.8%		13.1%

Total capital ratio		12.7%		13.1%		13.5%		14.6%		14.8%

Tier 1 leverage ratio		9.1%		9.4%		9.7%		10.0%		10.0%

(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.


2Q 2022 Preliminary Results		4

ALLY FINANCIAL INC.

CONSOLIDATED INCOME STATEMENT


	QUARTERLY TRENDS															CHANGE VS.
($ in millions)	2Q 22			1Q 22			4Q 21			3Q 21			2Q 21			1Q 22			2Q 21

Financing revenue and other interest income

Interest and fees on finance receivables and loans	$	1,842		$	1,714		$	1,679		$	1,619		$	1,588		$	128		$	254

Interest on loans held-for-sale		4			4			4			5			4			—			—

Total interest and dividends on investment securities		195			183			162			150			143			12			52

Interest-bearing cash		5			2			2			5			4			3			1

Other earning assets		8			5			5			5			4			3			4

Operating leases		396			403			403			393			384			(7	)		12


Total financing revenue and other interest income		2,450			2,311			2,255			2,177			2,127			139			323

Interest expense

Interest on deposits		263			211			226			245			268			52			(5	)

Interest on short-term borrowings		19			5			—			—			—			14			19

Interest on long-term debt		184			185			189			191			230			(1	)		(46	)

Interest on other		1			—			—			8			—			1			1


Total interest expense		467			401			415			444			498			66			(31	)

Depreciation expense on operating lease assets		219			217			186			139			82			2			137


Net financing revenue (as reported)	$	1,764		$	1,693		$	1,654		$	1,594		$	1,547		$	71		$	217

Other revenue

Insurance premiums and service revenue earned		280			280			280			279			278			—			2

Gain on mortgage and automotive loans, net		4			14			14			18			19			(10	)		(15	)

Loss on extinguishment of debt		—			—			(10	)		(52	)		(73	)		—			73

Other (loss) / gain on investments, net		(124	)		5			73			24			65			(129	)		(189	)

Other income, net of losses		152			143			188			122			249			9			(97	)


Total other revenue		312			442			545			391			538			(130	)		(226	)

Total net revenue		2,076			2,135			2,199			1,985			2,085			(59	)		(9	)

Provision for loan losses		304			167			210			76			(32	)		137			336

Noninterest expense

Compensation and benefits expense		437			493			413			389			446			(56	)		(9	)

Insurance losses and loss adjustment expenses		89			58			55			69			74			31			15

Other operating expenses		612			571			622			544			555			41			57


Total noninterest expense		1,138			1,122			1,090			1,002			1,075			16			63

Pre-tax income from continuing operations	$	634		$	846		$	899		$	907		$	1,042		$	(212	)	$	(408	)

Income tax expense from continuing operations		152			191			241			195			143			(39	)		9


Net income from continuing operations		482			655			658			712			899			(173	)		(417	)

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


Net income		482			655			652			712			900			(173	)		(418	)

Preferred Dividends		28			28			28			29			—			—			28


Net Income Available to Common Shareholders	$	454		$	627		$	624		$	683		$	900		$	(173	)	$	(446	)


Core Pre-Tax Income Walk

Net financing revenue (ex. OID) ⁽¹⁾	$	1,774		$	1,703		$	1,663		$	1,603		$	1,556		$	71		$	218

Adjusted other revenue ⁽¹⁾		448			508			533			507			588			(59	)		(140	)

Provision for credit losses		304			167			113			76			(32	)		137			336

Adjusted noninterest expense ⁽¹⁾		1,138			1,122			1,090			1,002			1,075			16			63


Core pre-tax income ⁽²⁾	$	780		$	921		$	994		$	1,032		$	1,102		$	(141	)	$	(321	)

Core OID		(10	)		(10	)		(9	)		(9	)		(9	)		—			(1	)

Change in the fair value of equity securities ⁽³⁾		(136	)		(66	)		21			(65	)		19			(71	)		(156	)

Repositioning ⁽³⁾		—			—			(107	)		(52	)		(70	)		—			70


Pre-tax income from continuing operations	$	634		$	846		$	899		$	907		$	1,042		$	(212	)	$	(408	)

(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.


2Q 2022 Preliminary Results		5

ALLY FINANCIAL INC.

CONSOLIDATED PERIOD-END BALANCE SHEET


($ in millions)	QUARTERLY TRENDS															CHANGE VS.
Assets	2Q 22			1Q 22			4Q 21			3Q 21			2Q 21			1Q 22			2Q 21

Cash and cash equivalents

Noninterest-bearing	$	801		$	470		$	502		$	636		$	653		$	331		$	148

Interest-bearing		3,366			3,462			4,560			10,279			13,011			(96	)		(9,645	)


Total cash and cash equivalents		4,167			3,932			5,062			10,915			13,664			235			(9,497	)

Investment securities ⁽¹⁾		33,590			35,413			35,859			35,317			36,313			(1,823	)		(2,723	)

Loans held-for-sale, net		798			471			549			456			409			327			389

Finance receivables and loans, net		128,457			125,365			122,268			114,471			112,217			3,092			16,240

Allowance for loan losses		(3,450	)		(3,301	)		(3,267	)		(3,148	)		(3,126	)		(149	)		(324	)


Total finance receivables and loans, net		125,007			122,064			119,001			111,323			109,091			2,943			15,916

Investment in operating leases, net		10,516			10,730			10,862			10,969			10,715			(214	)		(199	)

Premiums receivables and other insurance assets		2,743			2,730			2,724			2,752			2,773			13			(30	)

Other assets		8,882			8,957			8,293			7,452			7,505			(75	)		1,377


Total assets	$	185,703		$	184,297		$	182,350		$	179,184		$	180,470		$	1,406		$	5,233


Liabilities

Deposit liabilities

Noninterest-bearing	$	185		$	175		$	150		$	167		$	149		$	10		$	36

Interest-bearing		140,216			142,300			141,408			139,277			138,955			(2,084	)		1,261


Total deposit liabilities		140,401			142,475			141,558			139,444			139,104			(2,074	)		1,297

Short-term borrowings		7,775			3,950			—			—			—			3,825			7,775

Long-term debt		16,984			15,885			17,029			14,946			16,896			1,099			88

Interest payable		270			302			210			422			365			(32	)		(95	)

Unearned insurance premiums and service revenue		3,490			3,500			3,514			3,537			3,536			(10	)		(46	)

Accrued expense and other liabilities		2,799			2,772			2,989			3,546			3,039			27			(240	)


Total liabilities	$	171,719		$	168,884		$	165,300		$	161,895		$	162,940		$	2,835		$	8,779

Equity

Common stock and paid-in capital ⁽²⁾	$	15,390		$	15,956		$	16,483		$	17,050		$	17,716		$	(566	)	$	(2,326	)

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

Accumulated deficit		(721	)		(1,076	)		(1,599	)		(2,136	)		(2,726	)		355			2,005

Accumulated other comprehensive income / (loss)		(3,009	)		(1,791	)		(158	)		51			216			(1,218	)		(3,225	)


Total equity		13,984			15,413			17,050			17,289			17,530			(1,429	)		(3,546	)


Total liabilities and equity	$	185,703		$	184,297		$	182,350		$	179,184		$	180,470		$	1,406		$	5,233

(1)

Includes Held-to-maturity securities.

(2)

Includes Treasury stock.


2Q 2022 Preliminary Results		6

ALLY FINANCIAL INC.

CONSOLIDATED AVERAGE BALANCE SHEET ⁽¹⁾


($ in millions)	QUARTERLY TRENDS															CHANGE VS.
Assets	2Q 22			1Q 22			4Q 21			3Q 21			2Q 21			1Q 22			2Q 21

Interest-bearing cash and cash equivalents	$	3,761		$	4,027		$	6,532		$	13,055		$	16,564		$	(266	)	$	(12,803	)

Investment securities and other earning assets		34,679			36,664			36,809			35,193			36,462			(1,985	)		(1,783	)

Loans held-for-sale, net		420			570			461			464			454			(150	)		(34	)

Total finance receivables and loans, net ⁽²⁾		125,628			122,772			118,135			112,907			110,961			2,856			14,667

Investment in operating leases, net		10,615			10,878			10,951			10,919			10,355			(263	)		260


Total interest earning assets		175,103			174,911			172,888			172,538			174,796			192			307

Noninterest-bearing cash and cash equivalents		343			422			505			526			494			(79	)		(151	)

Other assets		10,510			9,825			9,568			9,328			8,978			685			1,532

Allowance for loan losses		(3,339	)		(3,279	)		(3,168	)		(3,152	)		(3,172	)		(60	)		(167	)


Total assets	$	182,617		$	181,879		$	179,793		$	179,240		$	181,096		$	738		$	1,521


Liabilities

Interest-bearing deposit liabilities

Retail deposit liabilities	$	132,111		$	135,046		$	132,706		$	130,414		$	128,787		$	(2,935	)	$	3,324

Other interest-bearing deposit liabilities ⁽³⁾		7,522			6,340			7,172			8,670			10,446			1,182			(2,924	)


Total Interest-bearing deposit liabilities		139,633			141,387			139,878			139,084			139,233			(1,754	)		400

Short-term borrowings		5,695			980			—			—			—			4,715			5,695

Long-term debt ⁽⁴⁾		16,231			16,410			15,493			15,487			18,411			(179	)		(2,180	)


Total interest-bearing liabilities ⁽⁴⁾		161,559			158,777			155,371			154,571			157,644			2,782			3,915

Noninterest-bearing deposit liabilities		181			171			165			160			149			10			32

Other liabilities		6,408			6,772			6,731			6,852			6,802			(364	)		(394	)


Total liabilities	$	168,148		$	165,720		$	162,267		$	161,583		$	164,595		$	2,428		$	3,553

Equity

Total equity	$	14,469		$	16,159		$	17,526		$	17,657		$	16,501		$	(1,690	)	$	(2,032	)


Total liabilities and equity	$	182,617		$	181,879		$	179,793		$	179,240		$	181,096		$	738		$	1,521

(1)

Average balances are calculated using an average daily balance methodology.

(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 and other deposits (inclusive of sweep deposits and other deposits).

(4)

Includes average Core OID balance of $868 million in 2Q 2022, $878 million in 1Q 2022, $889 million in 4Q 2021, $905 in Q3 2021, and $989 million in 2Q 2021.


2Q 2022 Preliminary Results		7

ALLY FINANCIAL INC.

SEGMENT HIGHLIGHTS


($ in millions)
	QUARTERLY TRENDS														CHANGE VS.

Pre-tax Income / (Loss)	2Q 22			1Q 22		4Q 21			3Q 21			2Q 21			1Q 22			2Q 21

Automotive Finance	$	600		$	725	$	839		$	825		$	917		$	(125	)	$	(317	)

Insurance		(122	)		13		91			24			87			(135	)		(209	)


Dealer Financial Services		478			738		930			849			1,004			(260	)		(526	)

Corporate Finance		60			64		73			61			95			(4	)		(35	)

Mortgage Finance		6			11		3			6			—			(5	)		6

Corporate and Other ⁽¹⁾		90			33		(107	)		(9	)		(57	)		57			147


Pre-tax income from continuing operations	$	634		$	846	$	899		$	907		$	1,042		$	(212	)	$	(408	)

Core OID ⁽²⁾		10			10		9			9			9			—			1

Change in the fair value of equity securities ⁽³⁾		136			66		(21	)		65			(19	)		71			156

Repositioning ⁽⁴⁾		—			—		107			52			70			—			(70	)


Core pre-tax income ⁽⁴⁾	$	780		$	921	$	994		$	1,032		$	1,102		$	(141)		$	(321	)

(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.


2Q 2022 Preliminary Results		8

ALLY FINANCIAL INC.

AUTOMOTIVE FINANCE - CONDENSED FINANCIAL STATEMENTS


($ in millions)
	QUARTERLY TRENDS															CHANGE VS.
Income Statement	2Q 22			1Q 22			4Q 21			3Q 21			2Q 21			1Q 22			2Q 21

Net financing revenue

Consumer	$	1,362		$	1,302		$	1,339		$	1,320		$	1,288		$	60		$	74

Commercial		142			129			116			112			125			13			17

Operating leases		396			403			403			393			384			(7	)		12


Total financing revenue and other interest income		1,900			1,834			1,858			1,825			1,797			66			103

Interest expense		380			322			331			357			382			58			(2	)

Depreciation expense on operating lease assets:

Depreciation expense on operating lease assets (ex. remarketing)		269			266			251			226			210			3			59

Remarketing gains		50			50			65			86			128			—			(78	)


Total depreciation expense on operating lease assets		219			217			186			139			82			2			137


Net financing revenue		1,301			1,295			1,341			1,329			1,333			6			(32	)

Other revenue


Total other revenue		72			68			67			61			61			4			11


Total net revenue		1,373			1,363			1,408			1,390			1,394			10			(21	)

Provision for credit losses		228			104			45			53			(23	)		124			251

Noninterest expense

Compensation and benefits		152			168			146			136			144			(16	)		8

Other operating expenses		393			366			378			376			356			27			37


Total noninterest expense		545			534			524			512			500			11			45


Pre-tax Income	$	600		$	725		$	839		$	825		$	917		$	(125	)	$	(317	)


Memo: Net lease revenue

Operating lease revenue	$	396		$	403		$	403		$	393		$	384		$	(7	)	$	12

Depreciation expense on operating lease assets (ex. remarketing)		269			266			251			226			210			3			59

Remarketing gains, net of repo valuation		50			50			65			86			128			—			(78	)


Total depreciation expense on operating lease assets		219			217			186			139			82			2			137


Net lease revenue	$	177		$	186		$	217		$	254		$	302		$	(9	)	$	(125	)


Balance Sheet (Period-End)

Cash, trading and investment securities	$	23		$	24		$	23		$	23		$	23		$	(1	)	$	—

Consumer loans		82,191			79,262			78,289			77,683			75,827			2,929			6,364

Commercial loans		16,109			17,295			16,074			12,587			15,219			(1,186	)		890

Allowance for loan losses		(2,914	)		(2,794	)		(2,802	)		(2,851	)		(2,848	)		(120	)		(66	)


Total finance receivables and loans, net		95,386			93,763			91,561			87,419			88,198			1,623			7,188

Investment in operating leases, net		10,516			10,730			10,862			10,969			10,715			(214	)		(199	)

Other assets		1,253			1,237			1,207			1,206			1,226			16			27


Total assets	$	107,178		$	105,754		$	103,653		$	99,617		$	100,162		$	1,424		$	7,016


2Q 2022 Preliminary Results		9

ALLY FINANCIAL INC.

AUTOMOTIVE FINANCE - KEY STATISTICS


	QUARTERLY TRENDS										CHANGE VS.
	2Q 22		1Q 22		4Q 21		3Q 21		2Q 21		1Q 22			2Q 21

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

Retail standard - new vehicle GM	$	1.1	$	0.9	$	0.8	$	0.9	$	1.2	$	0.2		$	(0.1	)

Retail standard - new vehicle Stellantis		0.9		1.0		1.0		1.1		1.2		(0.1	)		(0.2	)

Retail standard - new vehicle Growth		1.2		1.0		1.0		1.2		1.5		0.3			(0.2	)

Used vehicle		9.1		7.6		7.0		7.8		7.3		1.5			1.8

Lease		0.9		1.0		0.9		1.3		1.8		(0.1	)		(0.9	)

Retail subvented		0.0		0.1		0.1		0.1		0.0		(0.1	)		0.0


Total originations	$	13.3	$	11.6	$	10.9	$	12.3	$	12.9	$	1.7		$	0.3

U.S. Consumer Originations - FICO Score

Super prime (760-999)	$	2.0	$	1.8	$	1.6	$	1.9	$	2.1	$	0.3		$	(0.1	)

High prime (720-759)		1.7		1.4		1.3		1.5		1.6		0.2			0.1

Prime (660-719)		4.3		3.7		3.5		4.0		4.2		0.6			0.1

Prime/Near (620-659)		3.0		2.8		2.6		3.0		3.1		0.2			(0.1	)

Non-Prime (540-619)		1.2		0.9		1.0		1.0		1.0		0.3			0.1

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

No FICO (Primarily CSG) ⁽²⁾		0.9		0.9		0.7		0.7		0.7		(0.1	)		0.1


Total originations	$	13.3	$	11.6	$	10.9	$	12.3	$	12.9	$	1.7		$	0.3

U.S. Consumer Retail Originations - Average FICO

New vehicle		698		697		697		694		691		1			7

Used vehicle		682		682		679		679		678		(1	)		4

Total retail originations		685		686		684		683		682		(1	)		3

U.S. Market

New light vehicle sales (SAAR - units in millions)		13.4		14.1		12.9		13.3		16.9		(0.8	)		(3.5	)

New light vehicle sales (quarterly - units in millions)		3.5		3.3		3.2		3.4		4.4		0.2			(0.9	)

Dealer Engagement

Total Active Dealers ⁽³⁾		22,408		21,688		21,076		20,353		19,650		720			2,758

Total Application Volume (000s)		3,296		3,169		2,933		3,258		3,529		128			(232	)

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

Floorplan outstandings	$	11.0	$	12.4	$	11.1	$	7.6	$	10.0	$	(1.4	)	$	1.0

Dealer loans and other		5.1		4.9		4.9		5.0		5.2		0.2			(0.1	)


Total Commercial outstandings	$	16.1	$	17.3	$	16.1	$	12.6	$	15.2	$	(1.2	)	$	0.9

U.S. Off-Lease Remarketing

Off-lease vehicles terminated - on-balance sheet (# in units)		29,665		30,488		27,977		34,475		34,768		(823	)		(5,103	)

Average gain per vehicle	$	1,671	$	1,640	$	2,339	$	2,495	$	3,684	$	31		$	(2,013	)

Total gain ($ in millions)	$	50	$	50	$	65	$	86	$	128	$	—		$	(78	)

(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 2Q22

(3)

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


2Q 2022 Preliminary Results		10

ALLY FINANCIAL INC.

INSURANCE - CONDENSED FINANCIAL STATEMENTS AND KEY STATISTICS



($ in millions)
	QUARTERLY TRENDS															CHANGE VS.
Income Statement *(GAAP View)*	2Q 22			1Q 22			4Q 21			3Q 21			2Q 21			1Q 22			2Q 21

Net financing revenue

Total interest and fees on finance receivables and loans⁽¹⁾	$	2		$	3		$	4		$	3		$	3		$	(1	)	$	(1	)

Interest and dividends on investment securities		29			26			26			25			26			3			3

Interest bearing cash		—			—			—			1			—			—			—


Total financing revenue and other interest revenue		31			29			30			29			29			2			2

Interest expense		11			12			15			15			14			(1	)		(3	)


Net financing revenue		20			17			15			14			15			3			5

Other revenue

Insurance premiums and service revenue earned		280			280			280			279			278			—			2

Other gain / (loss) on investments, net		(127	)		(14	)		56			1			61			(113	)		(188	)

Other income, net of losses		5			4			3			3			5			1			—


Total other revenue		158			270			339			283			344			(112	)		(186	)


Total net revenue		178			287			354			297			359			(109	)		(181	)

Noninterest expense

Compensation and benefits expense		24			28			23			23			24			(4	)		—

Insurance losses and loss adjustment expenses		89			58			55			69			74			31			15

Other operating expenses		187			188			185			181			174			(1	)		13


Total noninterest expense		300			274			263			273			272			26			28


Pre-tax (loss) income	$	(122	)	$	13		$	91		$	24		$	87		$	(135	)	$	(209	)


Memo: Income Statement (Managerial View)

Insurance premiums and other income

Insurance premiums and service revenue earned	$	280		$	280		$	280		$	279		$	278		$	—		$	2

Investment income (adjusted) ⁽²⁾		29			64			47			80			56			(34	)		(27	)

Other income		5			4			3			3			5			1			—


Total insurance premiums and other income		314			348			330			362			339			(33	)		(25	)

Expense

Insurance losses and loss adjustment expenses		89			58			55			69			74			31			15

Acquisition and underwriting expenses

Compensation and benefit expense		24			28			23			23			24			(4	)		—

Insurance commission expense		151			149			147			142			138			2			13

Other expense		36			39			38			39			36			(3	)		—


Total acquistion and underwriting expense		211			216			208			204			198			(5	)		13


Total expense		300			274			263			273			272			26			28


Core pre-tax income ⁽²⁾		14			74			67			89			67			(59	)		(53	)

Change in the fair value of equity securities ⁽²⁾		(136	)		(61	)		24			(65	)		20			(76	)		(156	)


(Loss) income before income tax expense	$	(122	)	$	13		$	91		$	24		$	87		$	(135	)	$	(209	)


Balance Sheet (Period-End)

Cash and investment securities	$	5,407		$	5,651		$	5,530		$	5,503		$	5,738		$	(244	)	$	(331	)

Intercompany loans⁽¹⁾		411			572			923			898			697			(161	)		(286	)

Premiums receivable and other insurance assets		2,755			2,741			2,735			2,761			2,782			14			(27	)

Other assets		246			256			193			192			177			(10	)		69


Total assets	$	8,819		$	9,220		$	9,381		$	9,354		$	9,394		$	(401	)	$	(575	)


Key Statistics

Total written premiums and revenue ⁽³⁾	$	262		$	265		$	268		$	295		$	301		$	(3	)	$	(39	)

Loss ratio ⁽⁴⁾		31.2	%		20.5	%		19.5	%		24.4	%		26.3	%

Underwriting expense ratio ⁽⁵⁾		74.8	%		76.0	%		73.4	%		72.0	%		70.4	%


Combined ratio		106.0	%		96.5	%		92.9	%		96.4	%		96.7	%

(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.


2Q 2022 Preliminary Results		11

ALLY FINANCIAL INC.

MORTGAGE FINANCE - CONDENSED FINANCIAL STATEMENTS


($ in millions)

	QUARTERLY TRENDS															CHANGE VS.
Income Statement	2Q 22			1Q 22			4Q 21			3Q 21			2Q 21			1Q 22			2Q 21

Net financing revenue

Total financing revenue and other interest income	$	139		$	130		$	119		$	106		$	89		$	9		$	50

Interest expense		83			77			77			70			66			6			17


Net financing revenue		56			53			42			36			23			3			33

Gain on mortgage loans, net		4			14			14			18			19			(10	)		(15	)

Other income, net of losses		—			—			(1	)		1			3			—			(3	)


Total other revenue		4			14			13			19			22			(10	)		(18	)


Total net revenue		60			67			55			55			45			(7	)		15


Provision for loan losses		—			—			1			2			—			—			—

Noninterest expense

Compensation and benefits expense		6			6			6			5			5			—			1

Other operating expense		48			50			45			42			40			(2	)		8


Total noninterest expense		54			56			51			47			45			(2	)		9


Pre-tax Income	$	6		$	11		$	3		$	6		$	—		$	(5	)	$	6


Balance Sheet (Period-End)

Finance receivables and loans, net:

Consumer loans	$	18,923		$	18,372		$	17,644		$	16,059		$	13,629		$	551		$	5,294

Allowance for loan losses		(20	)		(19	)		(19	)		(17	)		(15	)		(1	)		(5	)


Total finance receivables and loans, net		18,903			18,353			17,625			16,042			13,614			550			5,289

Other assets		223			243			222			286			251			(20	)		(28	)


Total assets	$	19,126		$	18,596		$	17,847		$	16,328		$	13,865		$	530		$	5,261


2Q 2022 Preliminary Results		12

ALLY FINANCIAL INC.

CORPORATE FINANCE - CONDENSED FINANCIAL STATEMENTS


($ in millions)
	QUARTERLY TRENDS										CHANGE VS.
Income Statement	2Q 22		1Q 22		4Q 21		3Q 21		2Q 21		1Q 22		2Q 21

Net financing revenue

Total financing revenue and other interest income	$	104	$	95	$	93	$	86	$	86	$	9	$	18

Interest expense		27		12		10		9		9		15		18


Net financing revenue		77		83		83		77		77		(6)		—

Total other revenue		19		24		53		16		33		(5)		(14)


Total net revenue		96		107		136		93		110		(11)		(14)

Provision for loan losses		8		6		33		5		(13)		2		21

Noninterest expense

Compensation and benefits expense		15		23		18		15		17		(8)		(2)

Other operating expense		13		14		12		12		11		(1)		2


Total noninterest expense		28		37		30		27		28		(9)		—


Pre-tax Income	$	60	$	64	$	73	$	61	$	95	$	(4)	$	(35)


Change in the fair value of equity securities ⁽¹⁾		(0)		4		2		(1)		1		(5)		(1)


Core pre-tax income ⁽²⁾	$	60	$	68	$	75	$	60	$	96	$	(9)	$	(36)


Balance Sheet (Period-End)

Equity securities	$	3	$	3	$	11	$	14	$	12	$	—	$	(9)

Loans held for sale		517		190		305		215		184		327		333

Commercial loans		8,475		8,021		7,770		6,609		6,157		454		2,318

Allowance for loan losses		(203)		(221)		(215)		(183)		(178)		18		(25)


Total finance receivables and loans, net		8,272		7,800		7,555		6,426		5,979		472		2,293

Other assets		98		93		79		74		71		5		27


Total assets	$	8,890	$	8,086	$	7,950	$	6,729	$	6,246	$	804	$	2,644

(1)

See page 25 for methodology and detail.

(2)

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


2Q 2022 Preliminary Results		13

ALLY FINANCIAL INC.

CORPORATE AND OTHER - CONDENSED FINANCIAL STATEMENTS


($ in millions)	QUARTERLY TRENDS															CHANGE VS.
Income Statement	2Q 22			1Q 22			4Q 21			3Q 21			2Q 21			1Q 22			2Q 21

Net financing revenue

Total financing revenue and other interest income		276			223			155			131			126			53			150


Interest expense		(34	)		(22	)		(18	)		(7	)		27			(12	)		(61	)


Net financing revenue		310			245			173			138			99			65			211

Other revenue

Loss on extinguishment of debt		—			—			(10	)		(52	)		(73	)		—			73

Other gain on investments, net		2			18			17			22			5			(16	)		(3	)

Other income, net of losses ⁽¹⁾		57			48			66			42			146			9			(89	)


Total other revenue		59			66			73			12			78			(7	)		(19	)


Total net revenue		369			311			246			150			177			58			192

Provision for loan losses		68			57			131			16			4			11			64

Noninterest expense

Compensation and benefits expense		240			268			220			210			256			(28	)		(16	)

Other operating expense ⁽²⁾		(29	)		(47	)		2			(67	)		(26	)		18			(3	)


Total noninterest expense		211			221			222			143			230			(10	)		(19	)


Pre-tax income (loss)	$	90		$	33		$	(107	)	$	(9	)	$	(57	)	$	57		$	147


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

Core OID ⁽⁴⁾		10			10			9			9			9			—			1

Repositioning ⁽³⁾		—			—			107			52			70			—			(70	)


Core pre-tax income ⁽⁴⁾	$	101		$	43		$	10		$	52		$	21		$	57		$	79


Balance Sheet (Period-End)

Cash, trading and investment securities	$	32,324		$	33,667		$	35,357		$	40,692		$	44,204		$	(1,343	)	$	(11,880	)

Loans held-for-sale		200			186			164			139			128			14			72

Consumer loans		2,569			2,235			2,293			1,310			1,193			334			1,376

Commercial loans		190			180			198			223			192			10			(2	)

Intercompany loans⁽⁵⁾		(411	)		(572	)		(923	)		(898	)		(697	)		161			286

Allowance for loan losses		(313	)		(267	)		(231	)		(97	)		(85	)		(46	)		(228	)


Total finance receivables and loans, net		2,035			1,576			1,337			538			603			459			1,432

Other assets		7,131			7,212			6,661			5,787			5,868			(81	)		1,263

Total assets	$	41,690		$	42,641		$	43,519		$	47,156		$	50,803		$	(951	)	$	(9,113	)


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


Remaining Core OID amortization expense	$	22		$	49		$	57		$	66			Avg = $112/yr

(1) Includes the impact of centralized asset and liability management, 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 $307 million for 2Q22, $311 million for 1Q22, $294 million for 4Q21, $290 million for 3Q21, and $268 million for 2Q21. 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.


2Q 2022 Preliminary Results		14

ALLY FINANCIAL INC.

CREDIT RELATED INFORMATION


$ in millions

	QUARTERLY TRENDS															CHANGE VS.

Asset Quality - Consolidated ⁽¹⁾	2Q 22			1Q 22			4Q 21			3Q 21			2Q 21			1Q 22			2Q 21

Ending loan balance	$	128,450		$	125,358		$	122,261		$	114,463		$	112,209		$	3,092		$	16,242

30+ Accruing DPD	$	2,198		$	1,684		$	1,793		$	1,591		$	1,291		$	514		$	907

30+ Accruing DPD %		1.71	%		1.34	%		1.47	%		1.39	%		1.15	%

60+ Accruing DPD	$	491		$	380		$	401		$	308		$	247		$	111		$	244

60+ Accruing DPD %		0.38	%		0.30	%		0.33	%		0.27	%		0.22	%

Non-performing loans (NPLs)	$	1,380		$	1,388		$	1,436		$	1,285		$	1,283		$	(8	)	$	97

Net charge-offs (NCOs)	$	153		$	133		$	103		$	54		$	(6	)	$	21		$	159

Net charge-off rate ⁽²⁾		0.49	%		0.43	%		0.35	%		0.19	%		(0.02	)%

Provision for loan losses ⁽³⁾	$	304		$	167		$	210		$	76		$	(32	)	$	137		$	336

Allowance for loan losses (ALLL)	$	3,450		$	3,301		$	3,267		$	3,148		$	3,126		$	149		$	324

ALLL as % of Loans ⁽³⁾⁽⁴⁾		2.68	%		2.63	%		2.67	%		2.75	%		2.79	%

ALLL as % of NPLs ⁽³⁾		250	%		238	%		227	%		245	%		244	%

ALLL as % of NCOs ⁽³⁾		561	%		621	%		792	%		n/m			n/m

US Auto Delinquencies - HFI Retail Contract $‘s

30+ Delinquent contract $	$	2,061		$	1,594		$	1,677		$	1,427		$	1,218		$	467		$	843

% of retail contract $ outstanding		2.52	%		2.02	%		2.14	%		1.83	%		1.60	%

60+ Delinquent contract $	$	470		$	362		$	378		$	298		$	241

% of retail contract $ outstanding		0.57	%		0.46	%		0.48	%		0.38	%		0.32	%

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

Net charge-offs	$	108		$	113		$	94		$	51		$	(5	)	$	(5	)	$	113

% of avg. HFI assets ⁽²⁾		0.54	%		0.58	%		0.48	%		0.27	%		(0.03	)%

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

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

% of avg. HFI assets ⁽²⁾		(0.03	)%		(0.01	)%		(0.01	)%		(0.01	)%		—	%

(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 ($501) million of fair value adjustment for loans in hedge accounting relationships in 2Q22, ($350) million in 1Q22, ($37) million in 4Q21, $78 million in 3Q21 and $124 million in 2Q21.


2Q 2022 Preliminary Results		15

ALLY FINANCIAL INC.

CREDIT RELATED INFORMATION, CONTINUED


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

*Consumer*	2Q 22		1Q 22		4Q 21		3Q 21		2Q 21		1Q 22		2Q 21
Allowance for loan losses	$	2,885	$	2,763	$	2,769	$	2,810	$	2,802	$	122	$	83

Total consumer loans ⁽²⁾	$	81,691	$	78,911	$	78,252	$	77,761	$	75,951	$	2,780	$	5,740

Coverage ratio ⁽³⁾		3.51%		3.49%		3.54%		3.62%		3.70%

Commercial

Allowance for loan losses	$	30	$	31	$	33	$	41	$	46	$	(1)	$	(16)

Total commercial loans	$	16,108	$	17,295	$	16,074	$	12,587	$	15,219	$	(1,187)	$	889

Coverage ratio		0.18%		0.18%		0.21%		0.32%		0.30%

Mortgage ⁽¹⁾

*Consumer*

Mortgage Finance

Allowance for loan losses	$	20	$	19	$	19	$	17	$	15	$	1	$	5

Total consumer loans	$	18,923	$	18,372	$	17,644	$	16,059	$	13,629	$	551	$	5,294

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

Mortgage - Legacy

Allowance for loan losses	$	6	$	7	$	8	$	8	$	9	$	(1)	$	(3)

Total consumer loans	$	322	$	341	$	368	$	396	$	429	$	(19)	$	(107)

Coverage ratio		1.92%		2.03%		2.05%		2.04%		2.16%

Total Mortgage

Allowance for loan losses	$	26	$	26	$	27	$	25	$	24	$	—	$	2

Total consumer loans	$	19,245	$	18,713	$	18,012	$	16,455	$	14,058	$	532	$	5,187

Coverage ratio		0.14%		0.14%		0.15%		0.15%		0.18%

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

Allowance for loan losses	$	141	$	124	$	102	$	86	$	72	$	17	$	69

Total consumer loans	$	1,516	$	1,202	$	1,002	$	828	$	632	$	314	$	885

Coverage ratio		9.32%		10.32%		10.20%		10.34%		11.39%

Consumer Other - Ally Credit Card ⁽¹⁾⁽⁵⁾

Allowance for loan losses	$	162	$	134	$	119		—		—	$	28	$	162

Total consumer loans	$	1,224	$	1,036	$	953		—		—	$	188	$	1,224

Coverage ratio		13.25%		12.90%		12.44%		—		—

Corporate Finance ⁽¹⁾

Allowance for loan losses	$	203	$	221	$	215	$	183	$	178	$	(18)	$	25

Total commercial loans	$	8,476	$	8,021	$	7,770	$	6,609	$	6,157	$	455	$	2,319

Coverage ratio		2.40%		2.76%		2.77%		2.78%		2.90%

Corporate and Other ⁽¹⁾

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

Total commercial loans	$	190	$	180	$	198	$	223	$	192	$	10	$	(2)

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 ($501) million of fair value adjustment for loans in hedge accounting relationships in 2Q22, ($350) million in 1Q22, ($37) million in 4Q21, $78 million in 3Q21 and $124 million in 2Q21.

(3) Excludes ($501) million of fair value adjustment for loans in hedge accounting relationships in 2Q22, ($350) million in 1Q22, ($37) million in 4Q21, $78 million in 3Q21 and $124 million in 2Q21.

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


2Q 2022 Preliminary Results		16

ALLY FINANCIAL INC.

CAPITAL


($ in billions)	QUARTERLY TRENDS										CHANGE VS.

Capital	2Q 22		1Q 22		4Q 21		3Q 21		2Q 21		1Q 22		2Q 21

Risk-weighted assets	$	152.2	$	149.0	$	146.4	$	140.0	$	138.8	$	3.2	$	13.4

Common Equity Tier 1 (CET1) capital ratio		9.6%		10.0%		10.3%		11.2%		11.3%

Tier 1 capital ratio		11.1%		11.5%		11.9%		12.8%		13.1%

Total capital ratio		12.7%		13.1%		13.5%		14.6%		14.8%

Tangible common equity / Tangible assets ^{(1) (2)}		5.8%		6.6%		7.6%		8.2%		8.2%

Tangible common equity / Risk-weighted assets ⁽¹⁾		7.1%		8.2%		9.4%		10.4%		10.7%

Shareholders’ equity	$	14.0	$	15.4	$	17.1	$	17.3	$	17.5	$	(1.4)	$	(3.5)

add: CECL phase-in adjustment		0.9		0.9		1.2		1.2		1.1		—		(0.2)

less: Certain AOCI items and other adjustments		2.1		0.9		(0.8)		(0.5)		(0.6)		1.2		2.7

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


Common Equity Tier 1 capital	$	14.7	$	14.8	$	15.1	$	15.7	$	15.7	$	(0.1)	$	(1.0)


Common Equity Tier 1 capital	$	14.7	$	14.8	$	15.1	$	15.7	$	15.7	$	(0.1)	$	(1.0)

add: Preferred equity		2.3		2.3		2.3		2.3		2.3		—		—

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

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


Tier 1 capital	$	16.9	$	17.1	$	17.4	$	17.9	$	18.2	$	(0.2)	$	(1.3)


Tier 1 capital	$	16.9	$	17.1	$	17.4	$	17.9	$	18.2	$	(0.2)	$	(1.3)

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

Allowance for loan and lease losses includible in Tier 2 capital and other adjustments		1.9		1.8		1.7		1.6		1.6		0.1		0.3


Total capital	$	19.4	$	19.6	$	19.7	$	20.4	$	20.6	$	(0.2)	$	(1.2)


Total shareholders’ equity	$	14.0	$	15.4	$	17.1	$	17.3	$	17.5	$	(1.4)	$	(3.5)

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)		(0.4)		(0.4)		—		(0.5)


Tangible common equity ⁽¹⁾	$	10.7	$	12.2	$	13.8	$	14.6	$	14.8	$	(1.5)	$	(4.1)


Total assets	$	185.7	$	184.3	$	182.1	$	179.2	$	180.5	$	1.4	$	5.2

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


Tangible assets ⁽²⁾	$	184.8	$	183.4	$	181.2	$	178.8	$	180.1	$	1.4	$	4.7

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.


2Q 2022 Preliminary Results		17

ALLY FINANCIAL INC.

LIQUIDITY AND DEPOSITS


	QUARTERLY TRENDS										CHANGE VS.
Consolidated Available Liquidity ($ in billions)	2Q 22		1Q 22		4Q 21		3Q 21		2Q 21		1Q 22			2Q 21

Liquid cash and cash equivalents ⁽¹⁾	$	3.7	$	3.6	$	4.4	$	10.1	$	13.0	$	0.1		$	(9.3	)

Highly liquid securities ⁽²⁾		24.6		25.9		26.8		26.7		28.4		(1.3	)		(3.8	)

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


Total current available liquidity	$	28.3	$	29.5	$	31.2	$	36.9	$	41.6	$	(1.2	)	$	(13.3	)


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

Consolidated remaining maturities ⁽³⁾	$	—	$	2.0	$	1.5	$	2.3	$	—	$	4.0

Ally Bank Deposits

Key Deposit Statistics

Average retail CD maturity (months)		20.7		20.5		20.3		20.2		20.1		0.2			0.6

Average retail deposit rate		0.71%		0.59%		0.61%		0.64%		0.69%

End of Period Deposit Levels ($ in millions)

Retail	$	131,155	$	135,978	$	134,672	$	131,590	$	129,222	$	(4,823	)	$	1,933

Brokered & other		9,246		6,497		6,886		7,854		9,882		2,749			(636	)


Total deposits	$	140,401	$	142,475	$	141,558	$	139,444	$	139,104	$	(2,074	)	$	1,297


Deposit Mix

Retail CD		23%		24%		26%		27%		28%

MMA/OSA/Checking		71%		72%		70%		67%		65%

Brokered		6%		4%		4%		6%		7%

(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 6/30/2022. Reflects notional value of outstanding bond. Excludes total GAAP OID and capitalized transaction costs.


2Q 2022 Preliminary Results		18

ALLY FINANCIAL INC.

NET INTEREST MARGIN


($ in millions)	QUARTERLY TRENDS										CHANGE VS.

Average Balance Details	2Q 22		1Q 22		4Q 21		3Q 21		2Q 21		1Q 22		2Q 21

Retail Auto Loans	$	79,695	$	78,224	$	77,979	$	76,557	$	74,662	$	1,471	$	5,033

Auto Lease (net of dep)		10,615		10,878		10,951		10,919		10,355		(263)		260

Dealer Floorplan		11,372		11,594		9,539		8,849		10,825		(222)		547

Other Dealer Loans		4,839		4,810		4,829		5,038		5,507		29		(668)

Corporate Finance		8,351		8,045		7,147		6,735		6,383		306		1,968

Mortgage⁽¹⁾		18,980		18,228		17,533		15,125		13,179		752		5,801

Consumer Other - Ally Lending⁽²⁾		1,346		1,100		923		728		537		246		809

Consumer Other - Ally Credit Card ⁽³⁾		1,093		981		309		—		—		112		1,093

Cash and Cash Equivalents		3,761		4,027		6,532		13,055		16,564		(266)		(12,803)

Investment Securities and Other		35,050		37,025		37,146		35,532		36,784		(1,975)		(1,734)

Total Earning Assets	$	175,103	$	174,911	$	172,888	$	172,538	$	174,796	$	192	$	307
Interest Revenue		2,231		2,094		2,069		2,038		2,044		137		187

Unsecured Debt (ex. Core OID balance) ⁽⁴⁾⁽⁷⁾	$	9,674	$	9,976	$	10,061	$	9,787	$	11,737	$	(302)	$	(2,063)

Secured Debt		1,154		1,089		1,331		1,675		2,618		65		(1,464)

Deposits ⁽⁵⁾		139,814		141,557		140,043		139,244		139,382		(1,743)		432

Other Borrowings ⁽⁶⁾		11,966		7,203		4,990		4,929		5,044		4,763		6,922

Total Funding Sources (ex. Core OID balance) ⁽⁴⁾	$	162,608	$	159,826	$	156,425	$	155,635	$	158,781	$	2,782	$	3,827

Interest Expense (ex. Core OID) ⁽⁴⁾		457		391		406		435		488		66		(31)

Net Financing Revenue (ex. Core OID) ⁽⁴⁾	$	1,774	$	1,703	$	1,663	$	1,603	$	1,556	$	71	$	218

Net Interest Margin (yield details)

Retail Auto Loan		6.82%		6.61%		6.61%		6.62%		6.70%		0.21%		0.12%

Retail Auto Loan (excl. hedge impact)		6.85%		6.75%		6.81%		6.84%		6.92%		0.10%		(0.07)%

Auto Lease (net of dep)		6.66%		6.96%		7.88%		9.21%		11.67%		(0.30)%		(5.01)%

Dealer Floorplan		3.45%		2.97%		2.98%		3.18%		3.31%		0.48%		0.14%

Other Dealer Loans		4.13%		4.17%		4.10%		4.16%		4.18%		(0.04)%		(0.05)%

Corporate Finance		5.02%		4.76%		5.15%		5.12%		5.37%		0.26%		(0.35)%

Mortgage		3.01%		2.94%		2.77%		2.83%		2.80%		0.07%		0.21%

Consumer Other - Ally Lending⁽²⁾		11.94%		12.62%		12.89%		13.86%		14.44%		(0.68)%		(2.50)%

Consumer Other - Ally Credit Card ⁽³⁾		19.71%		18.75%		18.11%		—%		—%		0.96%		19.71%

Cash and Cash Equivalents		0.61%		0.15%		0.14%		0.14%		0.10%		0.46%		0.51%

Investment Securities and Other		2.35%		2.09%		1.81%		1.76%		1.63%		0.26%		0.72%

Total Earning Assets		5.11%		4.86%		4.75%		4.68%		4.69%		0.25%		0.42%

Unsecured Debt (ex. Core OID & Core OID balance) ⁽⁴⁾⁽⁷⁾		5.04%		5.12%		5.02%		5.19%		5.33%		(0.08)%		(0.29)%

Secured Debt		6.61%		6.36%		5.91%		4.29%		4.44%		0.25%		2.17%

Deposits ⁽⁵⁾		0.76%		0.61%		0.64%		0.70%		0.77%		0.15%		(0.01)%

Other Borrowings⁽⁶⁾		1.75%		2.11%		2.59%		3.42%		2.81%		(0.36)%		(1.06)%

Total Funding Sources (ex. Core OID & Core OID balance) ⁽⁴⁾		1.12%		0.99%		1.03%		1.11%		1.23%		0.13%		(0.11)%

NIM (as reported)		4.04%		3.93%		3.80%		3.66%		3.55%		0.11%		0.49%

NIM (ex. Core OID & Core OID balance) ⁽⁴⁾		4.06%		3.95%		3.82%		3.68%		3.57%		0.11%		0.49%

(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. 4Q’21 end of period balance was $953 million. 4Q’21 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.


2Q 2022 Preliminary Results		19

ALLY FINANCIAL INC.

ALLY BANK CONSUMER MORTGAGE HFI PORTFOLIOS (PERIOD-END)


($ in billions)	QUARTERLY TRENDS
Mortgage Finance HFI Portfolio	2Q 22		1Q 22		4Q 21		3Q 21		2Q 21
Loan Value

Gross carry value	$	18.9	$	18.4	$	17.6	$	16.1	$	13.6

Net carry value	$	18.9	$	18.4	$	17.6	$	16.0	$	13.6

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⁾		0.7%		0.6%		0.8%		1.1%		0.8%

% Low/No documentation		0.0%		0.1%		0.1%		0.1%		0.1%

% Non-primary residence		4.1%		4.0%		3.9%		4.3%		4.9%

Refreshed FICO⁽³⁾		779		776		776		776		776

Wtd. Avg. LTV/CLTV ⁽⁴⁾		53.7%		55.7%		56.9%		57.6%		58.8%

Corporate Other Legacy Mortgage HFI Portfolio
Loan Value

Gross carry value	$	0.3	$	0.3	$	0.4	$	0.4	$	0.4

Net carry value	$	0.3	$	0.3	$	0.4	$	0.4	$	0.4

Estimated Pool Characteristics

% Second lien		13.9%		14.7%		15.0%		15.6%		16.5%

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

% 30+ Day delinquent⁽¹⁾⁽²⁾		7.2%		7.1%		7.5%		8.1%		6.3%

% Low/No documentation		23.6%		23.7%		23.4%		23.3%		23.1%

% Non-primary residence		3.3%		3.5%		3.5%		3.6%		3.2%

Refreshed FICO⁽³⁾		740		738		735		735		734

Wtd. Avg. LTV/CLTV ⁽⁴⁾		49.1%		52.2%		54.2%		56.0%		61.0%

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 2022 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 22			1Q 22			4Q 21			3Q 21			2Q 21			1Q 22			2Q 21

GAAP net income attributable to common shareholders		$	454		$	627		$	624		$	683		$	900		$	(173	)	$	(446	)

Weighted-average common shares outstanding - basic			322,057			335,678			345,870			359,179			370,412			(13,621	)		(48,355	)

Weighted-average common shares outstanding - diluted			324,027			337,812			348,666			361,855			373,029			(13,784	)		(49,001	)

Issued shares outstanding (period-end)			312,781			327,306			337,941			349,599			362,639			(14,525	)		(49,857	)


Net income per share - basic		$	1.41		$	1.87		$	1.80		$	1.90		$	2.43		$	(0.46	)	$	(1.02	)


Net income per share - diluted		$	1.40		$	1.86		$	1.79		$	1.89		$	2.41		$	(0.45	)	$	(1.01	)


Adjusted Earnings per Share (“Adjusted EPS”)

Numerator

GAAP net income attributable to common shareholders		$	454		$	627		$	624		$	683		$	900		$	(173	)	$	(446	)

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

Core OID			10			10			9			9			9			—			1

Change in the fair value of equity securities			136			66			(21	)		65			(19	)		71			156

Core OID, repositioning & change in the fair value of equity securities tax (tax rate 21%)			(31	)		(16	)		(20	)		(26	)		(13	)		(15	)		(18	)

Repositioning			—			—			107			52			70			—			(70	)

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


Core net income attributable to common shareholders ⁽¹⁾		$	570		$	687		$	705		$	782		$	868		$	(117	)	$	(298	)

Denominator

Weighted-average common shares outstanding - diluted			324,027			337,812			348,666			361,855			373,029			(13,784	)		(49,001	)

Adjusted EPS ⁽²⁾		$	1.76		$	2.03		$	2.02		$	2.16		$	2.33		$	(0.27	)	$	(0.57	)

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

Other OID			2			3			3			3			3			—			—


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


Core outstanding original issue discount balance (Core OID balance) ⁽¹⁾		$	(863	)	$	(873	)	$	(883	)	$	(900	)	$	(952	)	$	10		$	89

Other outstanding OID balance			(39	)		(37	)		(40	)		(29	)		(32	)		(1	)		(7	)


GAAP outstanding original issue discount balance		$	(901	)	$	(911	)	$	(923	)	$	(929	)	$	(983	)	$	9		$	82


GAAP net financing revenue	[A]	$	1,764		$	1,693		$	1,654		$	1,594		$	1,547		$	71		$	217

Core OID			10			10			9			9			9			—			1


Net Financing Revenue (ex. Core OID)	[B]	$	1,774		$	1,703		$	1,663		$	1,603		$	1,556		$	71		$	218


GAAP Other Revenue	[C]	$	312		$	442		$	545		$	391		$	538		$	(130	)	$	(226	)

Repositioning			—			—			9			52			70			—			(70	)

Change in the fair value of equity securities			136			66			(21	)		65			(19	)		71			156


Adjusted Other Revenue	[D]	$	448		$	508		$	533		$	507		$	588		$	(59	)	$	(140	)


GAAP Provision Expense		$	304		$	167		$	210		$	76		$	(32	)	$	137		$	336

Repositioning			—			—			(97	)		—			—			—			—


Adjusted Provision (ex. Repositioning)		$	304		$	167		$	113		$	76		$	(32	)	$	137		$	336


GAAP Noninterest expense	[E]	$	1,138		$	1,122		$	1,090		$	1,002		$	1,075		$	16		$	63

Adjusted Noninterest Expense	[F]	$	1,138		$	1,122		$	1,090		$	1,002		$	1,075		$	16		$	63


Pre-Provision Net Revenue (PPNR)	[A]+[C]+[E]	$	938		$	1,013		$	1,109		$	983		$	1,010		$	(75	)	$	(72	)

Core Pre-Provision Net Revenue (PPNR) ⁽¹⁾	[B]+[D]+[F]	$	1,084		$	1,088		$	1,107		$	1,108		$	1,070		$	(4	)	$	15

(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.


2Q 2022 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	2Q 22		1Q 22		4Q 21		3Q 21		2Q 21		1Q 22		2Q 21

Numerator

GAAP shareholder’s equity	$	13,984	$	15,413	$	17,050	$	17,289	$	17,530	$	(1,429)	$	(3,546)

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

GAAP common shareholder’s equity	$	11,660	$	13,089	$	14,726	$	14,965	$	15,206	$	(1,429)	$	(3,546)

Goodwill and identifiable intangibles, net of DTLs		(920)		(932)		(941)		(369)		(374)		11		(547)


Tangible common equity ⁽¹⁾		10,740		12,157		13,785		14,596		14,832		(1,418)		(4,093)

Tax-effected Core OID balance (21% tax rate) ⁽¹⁾		(682)		(690)		(698)		(711)		(752)		8		70

Adjusted tangible book value ⁽²⁾	$	10,058	$	11,468	$	13,087	$	13,885	$	14,081	$	(1,410)	$	(4,023)


Denominator

Issued shares outstanding (period-end, thousands)		312,781		327,306		337,941		349,599		362,639		(14,525)		(49,857)

GAAP shareholder’s equity per share	$	44.71	$	47.09	$	50.45	$	49.45	$	48.34	$	(2.38)	$	(3.63)

Preferred equity per share		(7.43)		(7.10)		(6.88)		(6.65)		(6.41)		(0.33)		(1.02)

GAAP common shareholder’s equity per share	$	37.28	$	39.99	$	43.58	$	42.81	$	41.93	$	(2.71)	$	(4.65)

Goodwill and identifiable intangibles, net of DTLs per share		(2.94)		(2.85)		(2.79)		(1.06)		(1.03)		(0.10)		(1.91)


Tangible common equity per share ⁽¹⁾		34.34		37.14		40.79		41.75		40.90		(2.81)		(6.57)

Tax-effected Core OID balance (21% tax rate) per share ⁽¹⁾		(2.18)		(2.11)		(2.06)		(2.03)		(2.07)		(0.07)		(0.11)


Adjusted tangible book value per share ⁽²⁾	$	32.16	$	35.04	$	38.73	$	39.72	$	38.83	$	(2.88)	$	(6.67)

(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.


2Q 2022 Preliminary Results		22

ALLY FINANCIAL INC.

CORE ROTCE RELATED INFORMATION


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

Core Return on Tangible Common Equity (“Core ROTCE”)	2Q 22		1Q 22		4Q 21		3Q 21		2Q 21		1Q 22		2Q 21

Numerator

GAAP net income attributable to common shareholders	$	454	$	627	$	624	$	683	$	900	$	(173)	$	(446)

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

Core OID		10		10		9		9		9		—		1

Change in the fair value of equity securities		136		66		(21)		65		(19)		71		156

Core OID, repositioning & change in the fair value of equity securities tax (tax rate 21%)		(31)		(16)		(20)		(26)		(13)		(15)		(18)

Repositioning		—		—		107		52		70		—		(70)

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


Core net income attributable to common shareholders ⁽¹⁾	$	570	$	687	$	705	$	782	$	868	$	(117)	$	(298)

Denominator (average, $ millions)

GAAP shareholder’s equity	$	14,699	$	16,232	$	17,170	$	17,410	$	16,078	$	(1,533)	$	(1,379)

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

Goodwill & identifiable intangibles, net of deferred tax liabilities (“DTLs”)		(926)		(937)		(655)		(371)		(376)		11		(550)


Tangible common equity ⁽¹⁾	$	11,449	$	12,971	$	14,190	$	14,714	$	14,540	$	(1,522)	$	(3,091)

Core OID balance		(868)		(878)		(892)		(926)		(985)		10		117

Net deferred tax asset (“DTA”)		(758)		(437)		(551)		(866)		(571)		(322)		(188)


Normalized common equity	$	9,822	$	11,656	$	12,747	$	12,923	$	12,984	$	(1,834)	$	(3,162)

Core Return on Tangible Common Equity ⁽²⁾		23.2%		23.6%		22.1%		24.2%		26.7%

(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.


2Q 2022 Preliminary Results		23

ALLY FINANCIAL INC.

ADJUSTED EFFICIENCY RATIO RELATED INFORMATION


($ in millions)	QUARTERLY TREND															CHANGE VS.

Adjusted Efficiency Ratio Calculation	2Q 22			1Q 22			4Q 21			3Q 21			2Q 21			1Q 22			2Q 21

Numerator

GAAP Noninterest expense	$	1,138		$	1,122		$	1,090		$	1,002		$	1,075		$	16		$	63

Rep and warrant expense		—			—			—			—			—			—			—

Insurance expense		(300	)		(274	)		(263	)		(273	)		(272	)		(26	)		(28	)

Adjusted noninterest expense for the efficiency ratio	$	838		$	848		$	827		$	729		$	803		$	(10	)	$	35

Denominator

Total net revenue	$	2,076		$	2,135		$	2,199		$	1,985		$	2,085		$	(59	)	$	(9	)

Core OID		10			10			9			9			9			—			1

Insurance revenue		(178	)		(287	)		(354	)		(297	)		(359	)		109			181

Repositioning		—			—			9			52			70			—			(70	)

Adjusted net revenue for the efficiency ratio	$	1,908		$	1,858		$	1,864		$	1,749		$	1,805		$	50		$	103

Adjusted Efficiency Ratio ⁽¹⁾		43.9	%		45.6	%		44.4	%		41.7	%		44.5	%

(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.


2Q 2022 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: 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.


2Q 2022 Preliminary Results		25