EX-99.3

EX-99.3 4 d389854dex993.htm EX-99.3 EX-99.3

Exhibit 99.3

LOGO

THIRD 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.


3Q 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


3Q 2022 Preliminary Results		3

ALLY FINANCIAL INC.

CONSOLIDATED FINANCIAL HIGHLIGHTS


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

Net financing revenue (excluding Core OID) ⁽¹⁾	$	1,730		$	1,774		$	1,703		$	1,663		$	1,603		$	(45	)	$	126

Core OID		(11	)		(10	)		(10	)		(9	)		(9	)		—			(1	)

Net financing revenue (as reported)		1,719			1,764			1,693			1,654			1,594			(45	)		125

Other revenue (adjusted) ⁽¹⁾		359			448			508			533			507			(89	)		(148	)

Change in fair value of equity securities ⁽²⁾		(62	)		(136	)		(66	)		21			(65	)		74			2

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

Other revenue (as reported)		297			312			442			545			391			(15	)		(94	)

Provision for loan losses		438			304			167			210			76			134			362

Noninterest Expense (ex. Repositioning)		1,141			1,138			1,122			1,090			1,002			3			139

Repositioning		20			—			—			—			—			20			20

Total noninterest expense ⁽³⁾		1,161			1,138			1,122			1,090			1,002			23			159


Pre-tax income from continuing operations		417			634			846			899			907			(217	)		(490	)

Income tax expense		117			152			191			241			195			(35	)		(78	)

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


Net Income		299			482			655			652			712			(183	)		(413	)

Preferred Dividends		27			28			28			28			29			(1	)		(2	)


Net income attributable to common shareholders	$	272		$	454		$	627		$	624		$	683		$	(182	)	$	(411	)


Core Pre-Provision Net Revenue ⁽⁴⁾	$	948		$	1,084		$	1,088		$	1,107		$	1,108		$	(137	)	$	(161	)

Selected Balance Sheet Data (Period-End)

Total assets	$	188,640		$	185,703		$	184,297		$	182,350		$	179,184		$	2,937		$	9,456

Consumer loans		106,720			103,683			99,869			98,226			95,052			3,037			11,668

Commercial loans		25,736			24,774			25,496			24,042			19,419			962			6,317

Allowance for loan losses		(3,611	)		(3,450	)		(3,301	)		(3,267	)		(3,148	)		(161	)		(463	)

Deposits		145,751			140,401			142,475			141,558			139,444			5,350			6,307

Total equity		12,434			13,984			15,413			17,050			17,289			(1,550	)		(4,855	)

Common Share Count

Weighted average basic		308,220			322,057			335,678			345,870			359,179			(13,837	)		(50,960	)

Weighted average diluted		310,086			324,027			337,812			348,666			361,855			(13,941	)		(51,769	)

Issued shares outstanding (period-end)		300,335			312,781			327,306			337,941			349,599			(12,446	)		(49,264	)

Per Common Share Data

Earnings per share (basic)	$	0.88		$	1.41		$	1.87		$	1.80		$	1.90		$	(0.53	)	$	(1.02	)

Earnings per share (diluted)		0.88			1.40			1.86			1.79			1.89			(0.52	)		(1.01	)

Adjusted earnings per share ⁽¹⁾		1.12			1.76			2.03			2.02			2.16			(0.64	)		(1.04	)

Book value per share		33.66			37.28			39.99			43.58			42.81			(3.62	)		(9.14	)

Tangible book value per share ⁽⁵⁾		30.63			34.34			37.14			40.79			41.75			(3.70	)		(11.12	)

Adjusted tangible book value per share ⁽⁵⁾		28.39			32.16			35.04			38.73			39.72			(3.76	)		(11.32	)

Select Financial Ratios

Net interest margin (as reported)		3.81	%		4.04	%		3.93	%		3.80	%		3.66	%

Net interest margin (ex. Core OID) ⁽¹⁾		3.83	%		4.06	%		3.95	%		3.82	%		3.68	%

Cost of funds		1.93	%		1.16	%		1.03	%		1.06	%		1.14	%

Cost of funds (ex. Core OID) ⁽¹⁾		1.89	%		1.12	%		0.99	%		1.03	%		1.11	%

Efficiency Ratio ⁽⁶⁾		57.6	%		54.8	%		52.6	%		49.6	%		50.5	%

Adjusted efficiency ratio ⁽⁶⁾		48.2	%		43.9	%		45.6	%		44.4	%		41.7	%

Return on average assets		0.6	%		1.0	%		1.4	%		1.4	%		1.5	%

Return on average total equity		8.2	%		12.4	%		15.5	%		14.5	%		15.7	%

Return on average tangible common equity		10.9	%		15.9	%		19.3	%		17.6	%		18.6	%

Core ROTCE ⁽⁷⁾		17.2	%		23.2	%		23.6	%		22.1	%		24.2	%

Capital Ratios ⁽⁸⁾

Common Equity Tier 1 (CET1) capital ratio		9.3	%		9.6	%		10.0	%		10.3	%		11.2	%

Tier 1 capital ratio		10.8	%		11.1	%		11.5	%		11.9	%		12.8	%

Total capital ratio		12.4	%		12.7	%		13.1	%		13.5	%		14.6	%

Tier 1 leverage ratio		8.8	%		9.1	%		9.4	%		9.7	%		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.


3Q 2022 Preliminary Results		4

ALLY FINANCIAL INC.

CONSOLIDATED INCOME STATEMENT


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

Financing revenue and other interest income

Interest and fees on finance receivables and loans	$	2,120		$	1,842		$	1,714		$	1,679		$	1,619		$	278		$	501

Interest on loans held-for-sale		10			4			4			4			5			6			5

Total interest and dividends on investment securities		206			195			183			162			150			11			56

Interest-bearing cash		16			5			2			2			5			11			11

Other earning assets		12			8			5			5			5			4			7

Operating leases		397			396			403			403			393			1			4


Total financing revenue and other interest income		2,761			2,450			2,311			2,255			2,177			311			584

Interest expense

Interest on deposits		567			263			211			226			245			304			322

Interest on short-term borrowings		43			19			5			—			—			24			43

Interest on long-term debt		194			184			185			189			191			10			3

Interest on other		—			1			—			—			8			(1	)		(8	)


Total interest expense		804			467			401			415			444			337			360

Depreciation expense on operating lease assets		238			219			217			186			139			19			99


Net financing revenue (as reported)	$	1,719		$	1,764		$	1,693		$	1,654		$	1,594		$	(45	)	$	125

Other revenue

Insurance premiums and service revenue earned		289			280			280			280			279			9			10

Gain on mortgage and automotive loans, net		10			4			14			14			18			6			(8	)

Loss on extinguishment of debt		0			0			—			(10	)		(52	)		0			52

Other (loss) / gain on investments, net		(54	)		(124	)		5			73			24			70			(78	)

Other income, net of losses		52			152			143			188			122			(100	)		(70	)


Total other revenue		297			312			442			545			391			(15	)		(94	)

Total net revenue		2,016			2,076			2,135			2,199			1,985			(60	)		31

Provision for loan losses		438			304			167			210			76			134			362

Noninterest expense

Compensation and benefits expense		467			437			493			413			389			30			78

Insurance losses and loss adjustment expenses		70			89			58			55			69			(19	)		1

Other operating expenses		624			612			571			622			544			12			80


Total noninterest expense		1,161			1,138			1,122			1,090			1,002			23			159

Pre-tax income from continuing operations	$	417		$	634		$	846		$	899		$	907		$	(217	)	$	(490	)

Income tax expense from continuing operations		117			152			191			241			195			(35	)		(78	)


Net income from continuing operations		300			482			655			658			712			(182	)		(412	)

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


Net income		299			482			655			652			712			(183	)		(413	)

Preferred Dividends		27			28			28			28			29			(1	)		(2	)


Net Income Available to Common Shareholders	$	272		$	454		$	627		$	624		$	683		$	(182	)	$	(411	)


Core Pre-Tax Income Walk

Net financing revenue (ex. OID) ⁽¹⁾	$	1,730		$	1,774		$	1,703		$	1,663		$	1,603		$	(45	)	$	126

Adjusted other revenue ⁽¹⁾		359			448			508			533			507			(89	)		(148	)

Provision for credit losses		438			304			167			113			76			134			362

Adjusted noninterest expense ⁽¹⁾		1,141			1,138			1,122			1,090			1,002			3			139


Core pre-tax income ⁽²⁾	$	510		$	780		$	921		$	994		$	1,032		$	(271	)	$	(523	)

Core OID		(11	)		(10	)		(10	)		(9	)		(9	)		0			(1	)

Change in the fair value of equity securities ⁽³⁾		(62	)		(136	)		(66	)		21			(65	)		74			2

Repositioning ⁽³⁾		(20	)		—			—			(107	)		(52	)		(20	)		31


Pre-tax income from continuing operations	$	417		$	634		$	846		$	899		$	907		$	(217	)	$	(490	)

(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.


3Q 2022 Preliminary Results		5

ALLY FINANCIAL INC.

CONSOLIDATED PERIOD-END BALANCE SHEET


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

Cash and cash equivalents

Noninterest-bearing	$	638		$	801		$	470		$	502		$	636		$	(163	)	$	2

Interest-bearing		4,366			3,366			3,462			4,560			10,279			1,000			(5,913	)


Total cash and cash equivalents		5,004			4,167			3,932			5,062			10,915			837			(5,911	)

Investment securities ⁽¹⁾		31,344			33,590			35,413			35,859			35,317			(2,246	)		(3,973	)

Loans held-for-sale, net		808			798			471			549			456			10			352

Finance receivables and loans, net		132,456			128,457			125,365			122,268			114,471			3,999			17,985

Allowance for loan losses		(3,611	)		(3,450	)		(3,301	)		(3,267	)		(3,148	)		(161	)		(463	)


Total finance receivables and loans, net		128,845			125,007			122,064			119,001			111,323			3,838			17,522

Investment in operating leases, net		10,577			10,516			10,730			10,862			10,969			61			(392	)

Premiums receivables and other insurance assets		2,719			2,743			2,730			2,724			2,752			(24	)		(33	)

Other assets		9,343			8,882			8,957			8,293			7,452			461			1,891


Total assets	$	188,640		$	185,703		$	184,297		$	182,350		$	179,184		$	2,937		$	9,456


Liabilities

Deposit liabilities

Noninterest-bearing	$	220		$	185		$	175		$	150		$	167		$	35		$	53

Interest-bearing		145,531			140,216			142,300			141,408			139,277			5,315			6,254


Total deposit liabilities		145,751			140,401			142,475			141,558			139,444			5,350			6,307

Short-term borrowings		7,200			7,775			3,950			—			—			(575	)		7,200

Long-term debt		16,628			16,984			15,885			17,029			14,946			(356	)		1,682

Interest payable		484			270			302			210			422			214			62

Unearned insurance premiums and service revenue		3,468			3,490			3,500			3,514			3,537			(22	)		(69	)

Accrued expense and other liabilities		2,675			2,799			2,772			2,989			3,546			(124	)		(871	)


Total liabilities	$	176,206		$	171,719		$	168,884		$	165,300		$	161,895		$	4,487		$	14,311

Equity

Common stock and paid-in capital ⁽²⁾	$	14,994		$	15,390		$	15,956		$	16,483		$	17,050		$	(396	)	$	(2,056	)

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

Accumulated deficit		(544	)		(721	)		(1,076	)		(1,599	)		(2,136	)		177			1,592

Accumulated other comprehensive income / (loss)		(4,340	)		(3,009	)		(1,791	)		(158	)		51			(1,331	)		(4,391	)


Total equity		12,434			13,984			15,413			17,050			17,289			(1,550	)		(4,855	)


Total liabilities and equity	$	188,640		$	185,703		$	184,297		$	182,350		$	179,184		$	2,937		$	9,456

(1)

Includes Held-to-maturity securities.

(2)

Includes Treasury stock.


3Q 2022 Preliminary Results		6

ALLY FINANCIAL INC.

CONSOLIDATED AVERAGE BALANCE SHEET ⁽¹⁾


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

Interest-bearing cash and cash equivalents	$	3,627		$	3,761		$	4,027		$	6,532		$	13,055		$	(134	)	$	(9,428	)

Investment securities and other earning assets		34,166			34,679			36,664			36,809			35,193			(513	)		(1,027	)

Loans held-for-sale, net		748			420			570			461			464			328			284

Total finance receivables and loans, net ⁽²⁾		129,996			125,628			122,772			118,135			112,907			4,368			17,089

Investment in operating leases, net		10,588			10,615			10,878			10,951			10,919			(27	)		(331	)


Total interest earning assets		179,125			175,103			174,911			172,888			172,538			4,022			6,587

Noninterest-bearing cash and cash equivalents		503			343			422			505			526			160			(23	)

Other assets		10,338			10,510			9,825			9,568			9,328			(172	)		1,010

Allowance for loan losses		(3,494	)		(3,339	)		(3,279	)		(3,168	)		(3,152	)		(155	)		(342	)


Total assets	$	186,472		$	182,617		$	181,879		$	179,793		$	179,240		$	3,855		$	7,232


Liabilities

Interest-bearing deposit liabilities

Retail deposit liabilities	$	131,868		$	132,111		$	135,046		$	132,706		$	130,414		$	(243	)	$	1,454

Other interest-bearing deposit liabilities ⁽³⁾		10,717			7,522			6,340			7,172			8,670			3,195			2,047


Total Interest-bearing deposit liabilities		142,586			139,633			141,387			139,878			139,084			2,953			3,502

Short-term borrowings		6,266			5,695			980			—			—			571			6,266

Long-term debt ⁽⁴⁾		16,798			16,231			16,410			15,493			15,487			567			1,311


Total interest-bearing liabilities ⁽⁴⁾		165,650			161,559			158,777			155,371			154,571			4,091			11,079

Noninterest-bearing deposit liabilities		207			181			171			165			160			26			47

Other liabilities		6,435			6,408			6,772			6,731			6,852			27			(417	)


Total liabilities	$	172,292		$	168,148		$	165,720		$	162,267		$	161,583		$	4,144		$	10,709

Equity

Total equity	$	14,180		$	14,469		$	16,159		$	17,526		$	17,657		$	(289	)	$	(3,477	)


Total liabilities and equity	$	186,472		$	182,617		$	181,879		$	179,793		$	179,240		$	3,855		$	7,232

(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 $858 million in 3Q 2022, $868 million in 2Q 2022, $878 million in 1Q 2022, $889 million in 4Q 2021, and $905 million in Q3 2021


3Q 2022 Preliminary Results		7

ALLY FINANCIAL INC.

SEGMENT HIGHLIGHTS


($ in millions)
	QUARTERLY TRENDS														CHANGE VS.

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

Automotive Finance	$	488		$	600		$	725	$	839		$	825		$	(112	)	$	(337	)

Insurance		(30	)		(122	)		13		91			24			92			(54	)


Dealer Financial Services		458			478			738		930			849			(20	)		(391	)

Corporate Finance		91			60			64		73			61			31			30

Mortgage Finance		19			6			11		3			6			13			13

Corporate and Other ⁽¹⁾		(151	)		90			33		(107	)		(9	)		(241	)		(142	)


Pre-tax income from continuing operations	$	417		$	634		$	846	$	899		$	907		$	(217	)	$	(490	)

Core OID ⁽²⁾		11			10			10		9			9			0			1

Change in the fair value of equity securities ⁽³⁾		62			136			66		(21	)		65			(74	)		(2	)

Repositioning ⁽⁴⁾		20			—			—		107			52			20			(31	)


Core pre-tax income ⁽⁴⁾	$	510		$	780		$	921	$	994		$	1,032		$	(271)		$	(523	)

(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.


3Q 2022 Preliminary Results		8

ALLY FINANCIAL INC.

AUTOMOTIVE FINANCE - CONDENSED FINANCIAL STATEMENTS


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

Net financing revenue

Consumer	$	1,461		$	1,362		$	1,302		$	1,339		$	1,320		$	99		$	141

Commercial		189			142			129			116			112			47			77

Operating leases		397			396			403			403			393			1			4


Total financing revenue and other interest income		2,047			1,900			1,834			1,858			1,825			147			222

Interest expense		506			380			322			331			357			126			149

Depreciation expense on operating lease assets:

Depreciation expense on operating lease assets (ex. remarketing)		278			269			266			251			226			8			51

Remarketing gains		39			50			50			65			86			(10	)		(47	)


Total depreciation expense on operating lease assets		238			219			217			186			139			19			99


Net financing revenue		1,303			1,301			1,295			1,341			1,329			2			(26	)

Other revenue


Total other revenue		74			72			68			67			61			2			13


Total net revenue		1,377			1,373			1,363			1,408			1,390			4			(13	)

Provision for credit losses		328			228			104			45			53			100			275

Noninterest expense

Compensation and benefits		155			152			168			146			136			3			19

Other operating expenses		406			393			366			378			376			13			30


Total noninterest expense		561			545			534			524			512			16			49


Pre-tax Income	$	488		$	600		$	725		$	839		$	825		$	(112	)	$	(337	)


Memo: Net lease revenue

Operating lease revenue	$	397		$	396		$	403		$	403		$	393		$	1		$	4

Depreciation expense on operating lease assets (ex. remarketing)		278			269			266			251			226			8			51

Remarketing gains, net of repo valuation		39			50			50			65			86			(10	)		(47	)


Total depreciation expense on operating lease assets		238			219			217			186			139			19			99


Net lease revenue	$	159		$	177		$	186		$	217		$	254		$	(18	)	$	(95	)


Balance Sheet (Period-End)

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

Loans held-for-sale, net		6			—			—			—			—			6			6

Consumer loans		84,116			82,191			79,262			78,289			77,683			1,925			6,433

Commercial loans		16,163			16,109			17,295			16,074			12,587			54			3,576

Allowance for loan losses		(3,024	)		(2,914	)		(2,794	)		(2,802	)		(2,851	)		(110	)		(173	)


Total finance receivables and loans, net		97,255			95,386			93,763			91,561			87,419			1,869			9,836

Investment in operating leases, net		10,577			10,516			10,730			10,862			10,969			61			(392	)

Other assets		1,276			1,253			1,237			1,207			1,206			23			70


Total assets	$	109,114		$	107,178		$	105,754		$	103,653		$	99,617		$	1,936		$	9,497


3Q 2022 Preliminary Results		9

ALLY FINANCIAL INC.

AUTOMOTIVE FINANCE - KEY STATISTICS


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

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

Retail standard - new vehicle GM	$	1.2	$	1.1	$	0.9	$	0.8	$	0.9	$	0.2		$	0.3

Retail standard - new vehicle Stellantis		0.9		0.9		1.0		1.0		1.1		0.0			(0.1	)

Retail standard - new vehicle Growth		1.2		1.2		1.0		1.0		1.2		0.0			0.1

Used vehicle		7.9		9.1		7.6		7.0		7.8		(1.2	)		0.0

Lease		1.1		0.9		1.0		0.9		1.3		0.2			(0.2	)

Retail subvented		0.0		0.0		0.1		0.1		0.1		0.0			0.0


Total originations	$	12.3	$	13.3	$	11.6	$	10.9	$	12.3	$	(0.9	)	$	0.1

U.S. Consumer Originations - FICO Score

Super prime (760-999)	$	2.1	$	2.0	$	1.8	$	1.6	$	1.9	$	0.0		$	0.1

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

Prime (660-719)		4.0		4.3		3.7		3.5		4.0		(0.3	)		0.0

Prime/Near (620-659)		2.6		3.0		2.8		2.6		3.0		(0.4	)		(0.3	)

Non-Prime (540-619)		0.9		1.2		0.9		1.0		1.0		(0.2	)		(0.1	)

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

No FICO (Primarily CSG) ⁽²⁾		0.9		0.9		0.9		0.7		0.7		0.0			0.2


Total originations	$	12.3	$	13.3	$	11.6	$	10.9	$	12.3	$	(0.9	)	$	0.1

U.S. Consumer Retail Originations - Average FICO

New vehicle		699		698		697		697		694		1			4

Used vehicle		684		682		682		679		679		2			4

Total retail originations		688		685		686		684		683		2			4

U.S. Market

New light vehicle sales (SAAR - units in millions)		13.3		13.3		14.1		13.0		13.3		0.0			(0.1	)

New light vehicle sales (quarterly - units in millions)		3.4		3.5		3.3		3.2		3.4		(0.1	)		0.0

Dealer Engagement

Total Active Dealers ⁽³⁾		22,923		22,408		21,688		21,076		20,353		515			2,570

Total Application Volume (000s)		3,149		3,296		3,169		2,933		3,258		(147	)		(109	)

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

Floorplan outstandings	$	10.8	$	11.0	$	12.4	$	11.1	$	7.6	$	(0.2	)	$	3.2

Dealer loans and other		5.3		5.1		4.9		4.9		5.0		0.2			0.4


Total Commercial outstandings	$	16.2	$	16.1	$	17.3	$	16.1	$	12.6	$	0.1		$	3.6

U.S. Off-Lease Remarketing

Off-lease vehicles terminated - on-balance sheet (# in units)		29,562		29,665		30,488		27,977		34,475		(103	)		(4,913	)

Average gain per vehicle	$	1,325	$	1,671	$	1,640	$	2,339	$	2,495	$	(346	)	$	(1,169	)

Total gain ($ in millions)	$	39	$	50	$	50	$	65	$	86	$	(10	)	$	(47	)

(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 3Q22

(3)

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


3Q 2022 Preliminary Results		10

ALLY FINANCIAL INC.

INSURANCE - CONDENSED FINANCIAL STATEMENTS AND KEY STATISTICS



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

Net financing revenue

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

Interest and dividends on investment securities		28			29			26			26			25			(1	)		3

Interest bearing cash		1			—			—			—			1			1			—


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

Interest expense		7			11			12			15			15			(4	)		(8	)


Net financing revenue		24			20			17			15			14			4			10

Other revenue

Insurance premiums and service revenue earned		289			280			280			280			279			9			10

Other (loss) / gain on investments, net		(56	)		(127	)		(14	)		56			1			71			(57	)

Other income, net of losses		3			5			4			3			3			(2	)		—


Total other revenue		236			158			270			339			283			78			(47	)


Total net revenue		260			178			287			354			297			82			(37	)

Noninterest expense

Compensation and benefits expense		26			24			28			23			23			2			3

Insurance losses and loss adjustment expenses		70			89			58			55			69			(19	)		1

Other operating expenses		194			187			188			185			181			7			13


Total noninterest expense		290			300			274			263			273			(10	)		17


Pre-tax (loss) income	$	(30	)	$	(122	)	$	13		$	91		$	24		$	92		$	(54	)


Memo: Income Statement (Managerial View)

Insurance premiums and other income

Insurance premiums and service revenue earned	$	289		$	280		$	280		$	280		$	279		$	9		$	10

Investment income (adjusted) ⁽²⁾		30			29			64			47			80			1			(50	)

Other income		3			5			4			3			3			(2	)		—


Total insurance premiums and other income		322			314			348			330			362			8			(40	)

Expense

Insurance losses and loss adjustment expenses		70			89			58			55			69			(19	)		1

Acquisition and underwriting expenses

Compensation and benefit expense		26			24			28			23			23			2			3

Insurance commission expense		152			151			149			147			142			1			10

Other expense		42			36			39			38			39			6			3


Total acquistion and underwriting expense		220			211			216			208			204			9			16


Total expense		290			300			274			263			273			(10	)		17


Core pre-tax income ⁽²⁾		32			14			74			67			89			18			(57	)

Change in the fair value of equity securities ⁽²⁾		(62	)		(136	)		(61	)		24			(65	)		74			3


(Loss) income before income tax expense	$	(30	)	$	(122	)	$	13		$	91		$	24		$	92		$	(54	)


Balance Sheet (Period-End)

Cash and investment securities	$	5,161		$	5,407		$	5,651		$	5,530		$	5,503		$	(246	)	$	(342	)

Intercompany loans⁽¹⁾		390			411			572			923			898			(21	)		(508	)

Premiums receivable and other insurance assets		2,731			2,755			2,741			2,735			2,761			(24	)		(30	)

Other assets		251			246			256			193			192			5			59


Total assets	$	8,533		$	8,819		$	9,220		$	9,381		$	9,354		$	(286	)	$	(821	)


Key Statistics

Total written premiums and revenue ⁽³⁾	$	291		$	262		$	265		$	268		$	295		$	29		$	(4	)

Loss ratio ⁽⁴⁾		23.9	%		31.2	%		20.5	%		19.5	%		24.4	%

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


Combined ratio		98.7	%		106.0	%		96.5	%		92.9	%		96.4	%

(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.


3Q 2022 Preliminary Results		11

ALLY FINANCIAL INC.

MORTGAGE FINANCE - CONDENSED FINANCIAL STATEMENTS


($ in millions)

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

Net financing revenue

Total financing revenue and other interest income	$	151		$	139		$	130		$	119		$	106		$	12		$	45

Interest expense		94			83			77			77			70			11			24


Net financing revenue		57			56			53			42			36			1			21

Gain on mortgage loans, net		7			4			14			14			18			3			(11	)

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


Total other revenue		7			4			14			13			19			3			(12	)


Total net revenue		64			60			67			55			55			4			9


Provision for loan losses		2			—			—			1			2			2			—

Noninterest expense

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

Other operating expense		38			48			50			45			42			(10	)		(4	)


Total noninterest expense		43			54			56			51			47			(11	)		(4	)


Pre-tax Income	$	19		$	6		$	11		$	3		$	6		$	13		$	13


Balance Sheet (Period-End)

Finance receivables and loans, net:

Consumer loans	$	19,715		$	18,923		$	18,372		$	17,644		$	16,059		$	792		$	3,656

Allowance for loan losses		(21	)		(20	)		(19	)		(19	)		(17	)		(1	)		(4	)


Total finance receivables and loans, net		19,694			18,903			18,353			17,625			16,042			791			3,652

Loans held for sale, net		44			81			95			80			102			(37	)		(58	)

Other assets		124			142			148			142			184			(18	)		(60	)


Total assets	$	19,862		$	19,126		$	18,596		$	17,847		$	16,328		$	736		$	3,534


3Q 2022 Preliminary Results		12

ALLY FINANCIAL INC.

CORPORATE FINANCE - CONDENSED FINANCIAL STATEMENTS


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

Net financing revenue

Total financing revenue and other interest income	$	148	$	104	$	95	$	93	$	86	$	44	$	62

Interest expense		68		27		12		10		9		41		59


Net financing revenue		80		77		83		83		77		3		3

Total other revenue		54		19		24		53		16		35		38


Total net revenue		134		96		107		136		93		38		41

Provision for loan losses		13		8		6		33		5		5		8

Noninterest expense

Compensation and benefits expense		17		15		23		18		15		2		2

Other operating expense		13		13		14		12		12		—		1


Total noninterest expense		30		28		37		30		27		2		3


Pre-tax Income	$	91	$	60	$	64	$	73	$	61	$	31	$	30


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


Core pre-tax income ⁽²⁾	$	91	$	60	$	68	$	75	$	60	$	31	$	31


Balance Sheet (Period-End)

Equity securities	$	6	$	3	$	3	$	11	$	14	$	3	$	(8)

Loans held for sale, net		544		517		190		305		215		27		329

Commercial loans		9,355		8,475		8,021		7,770		6,609		880		2,746

Allowance for loan losses		(186)		(203)		(221)		(215)		(183)		17		(3)


Total finance receivables and loans, net		9,169		8,272		7,800		7,555		6,426		897		2,743

Other assets		121		98		93		79		74		23		47


Total assets	$	9,840	$	8,890	$	8,086	$	7,950	$	6,729	$	950	$	3,111

(1)

See page 25 for methodology and detail.

(2)

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


3Q 2022 Preliminary Results		13

ALLY FINANCIAL INC.

CORPORATE AND OTHER - CONDENSED FINANCIAL STATEMENTS


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

Net financing revenue

Total financing revenue and other interest income		384			276			223			155			131			108			253


Interest expense		129			(34	)		(22	)		(18	)		(7	)		163			136


Net financing revenue		255			310			245			173			138			(55	)		117

Other revenue

Loss on extinguishment of debt		0			0			—			(10	)		(52	)		0			52

Other gain on investments, net		2			2			18			17			22			—			(20	)

Other income, net of losses ⁽¹⁾		(76	)		57			48			66			42			(133	)		(118	)


Total other revenue		(74	)		59			66			73			12			(133	)		(86	)


Total net revenue		181			369			311			246			150			(188	)		31

Provision for loan losses		95			68			57			131			16			27			79

Noninterest expense

Compensation and benefits expense		264			240			268			220			210			24			54

Other operating expense ⁽²⁾		(27	)		(29	)		(47	)		2			(67	)		2			40


Total noninterest expense		237			211			221			222			143			26			94


Pre-tax (loss) income	$	(151	)	$	90		$	33		$	(107	)	$	(9	)	$	(241	)	$	(142	)


Change in the fair value of equity securities ⁽³⁾		0			0			0			1			1			0			(1	)

Core OID ⁽⁴⁾		11			10			10			9			9			0			1

Repositioning ⁽³⁾		20			—			—			107			52			20			(31	)


Core pre-tax (loss) income ⁽⁴⁾	$	(120	)	$	101		$	43		$	10		$	52		$	(221	)	$	(173	)


Balance Sheet (Period-End)

Cash, trading and investment securities	$	31,181		$	32,324		$	33,667		$	35,357		$	40,692		$	(1,143	)	$	(9,511	)

Loans held-for-sale, net		214			200			186			164			139			14			75

Consumer loans		2,889			2,569			2,235			2,293			1,310			320			1,579

Commercial loans		218			190			180			198			223			28			(5	)

Intercompany loans⁽⁵⁾		(390	)		(411	)		(572	)		(923	)		(898	)		21			508

Allowance for loan losses		(380	)		(313	)		(267	)		(231	)		(97	)		(67	)		(283	)


Total finance receivables and loans, net		2,337			2,035			1,576			1,337			538			302			1,799

Other assets		7,559			7,131			7,212			6,661			5,787			428			1,772

Total assets	$	41,291		$	41,690		$	42,641		$	43,519		$	47,156		$	(399	)	$	(5,865	)


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


Remaining Core OID amortization expense	$	11		$	48		$	56		$	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 $321 million for 3Q22, $307 million for 2Q22, $311 million for 1Q22, $294 million for 4Q21, and $290 million for 3Q21. 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.


3Q 2022 Preliminary Results		14

ALLY FINANCIAL INC.

CREDIT RELATED INFORMATION


$ in millions

	QUARTERLY TRENDS															CHANGE VS.

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

Ending loan balance	$	132,450		$	128,450		$	125,358		$	122,261		$	114,463		$	4,000	$	17,987

30+ Accruing DPD	$	2,608		$	2,198		$	1,684		$	1,793		$	1,591		$	410	$	1,017

30+ Accruing DPD %		1.97	%		1.71	%		1.34	%		1.47	%		1.39	%

60+ Accruing DPD	$	609		$	491		$	380		$	401		$	308		$	118	$	301

60+ Accruing DPD %		0.46	%		0.38	%		0.30	%		0.33	%		0.27	%

Non-performing loans (NPLs)	$	1,383		$	1,380		$	1,388		$	1,436		$	1,285		$	3	$	98

Net charge-offs (NCOs)	$	276		$	153		$	133		$	103		$	54		$	123	$	222

Net charge-off rate ⁽²⁾		0.85	%		0.49	%		0.43	%		0.35	%		0.19	%

Provision for loan losses ⁽³⁾	$	438		$	304		$	167		$	210		$	76		$	134	$	362

Allowance for loan losses (ALLL)	$	3,611		$	3,450		$	3,301		$	3,267		$	3,148		$	161	$	464

ALLL as % of Loans ⁽³⁾⁽⁴⁾		2.71	%		2.68	%		2.63	%		2.67	%		2.75	%

ALLL as % of NPLs ⁽³⁾		261	%		250	%		238	%		227	%		245	%

ALLL as % of NCOs ⁽³⁾		327	%		561	%		621	%		n/m			n/m

US Auto Delinquencies - HFI Retail Contract $‘s

30+ Delinquent contract $	$	2,442		$	2,061		$	1,594		$	1,677		$	1,427		$	381	$	1,015

% of retail contract $outstanding		2.93	%		2.52	%		2.02	%		2.14	%		1.83	%

60+ Delinquent contract $	$	577		$	470		$	362		$	378		$	298

% of retail contract $outstanding		0.69	%		0.57	%		0.46	%		0.48	%		0.38	%

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

Net charge-offs	$	217		$	108		$	113		$	94		$	51		$	109	$	166

% of avg. HFI assets ⁽²⁾		1.05	%		0.54	%		0.58	%		0.48	%		0.27	%

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

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

% 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 ($658M) of fair value adjustment for loans in hedge accounting relationships in 3Q22, ($501M) in 2Q22, ($350M) in 1Q22, ($37M) in 4Q21 and $78M in 3Q21.


3Q 2022 Preliminary Results		15

ALLY FINANCIAL INC.

CREDIT RELATED INFORMATION, CONTINUED


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

*Consumer*	3Q 22		2Q 22		1Q 22		4Q 21		3Q 21		2Q 22		3Q 21
Allowance for loan losses	$	2,993	$	2,885	$	2,763	$	2,769	$	2,810	$	108	$	183

Total consumer loans ⁽²⁾	$	83,459	$	81,691	$	78,911	$	78,252	$	77,761	$	1,768	$	5,698

Coverage ratio ⁽³⁾		3.56%		3.51%		3.49%		3.54%		3.62%

Commercial

Allowance for loan losses	$	30	$	30	$	31	$	33	$	41	$	1	$	(11)

Total commercial loans	$	16,163	$	16,108	$	17,295	$	16,074	$	12,587	$	55	$	3,576

Coverage ratio		0.19%		0.18%		0.18%		0.21%		0.32%

Mortgage ⁽¹⁾

*Consumer*

Mortgage Finance

Allowance for loan losses	$	21	$	20	$	19	$	19	$	17	$	1	$	4

Total consumer loans	$	19,715	$	18,923	$	18,372	$	17,644	$	16,059	$	792	$	3,656

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

Mortgage-Legacy

Allowance for loan losses	$	6	$	6	$	7	$	8	$	8	$	—	$	(2)

Total consumer loans	$	306	$	322	$	341	$	368	$	396	$	(16)	$	(90)

Coverage ratio		1.86%		1.92%		2.03%		2.05%		2.04%

Total Mortgage

Allowance for loan losses	$	27	$	26	$	26	$	27	$	25	$	1	$	2

Total consumer loans	$	20,021	$	19,245	$	18,713	$	18,012	$	16,455	$	776	$	3,566

Coverage ratio		0.13%		0.14%		0.14%		0.15%		0.15%

Consumer Other - Ally Lending ⁽¹⁾⁽⁴⁾

Allowance for loan losses	$	167	$	141	$	124	$	102	$	86	$	26	$	81

Total consumer loans	$	1,807	$	1,516	$	1,202	$	1,002	$	828	$	291	$	980

Coverage ratio		9.22%		9.32%		10.32%		10.20%		10.34%

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

Allowance for loan losses	$	205	$	162	$	134	$	119		—	$	43	$	205

Total consumer loans	$	1,427	$	1,224	$	1,036	$	953		—	$	203	$	1,427

Coverage ratio		14.40%		13.25%		12.90%		12.44%		—

Corporate Finance ⁽¹⁾

Allowance for loan losses	$	186	$	203	$	221	$	215	$	183	$	(18)	$	3

Total commercial loans	$	9,354	$	8,476	$	8,021	$	7,770	$	6,609	$	878	$	2,745

Coverage ratio		1.99%		2.40%		2.76%		2.77%		2.78%

Corporate and Other ⁽¹⁾

Allowance for loan losses	$	3	$	3	$	2	$	2	$	3	$	—	$	—

Total commercial loans	$	219	$	190	$	180	$	198	$	223	$	29	$	(4)

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 ($658M) of fair value adjustment for loans in hedge accounting relationships in 3Q22, ($501M) in 2Q22, ($350M) in 1Q22, ($37M) in 4Q21 and $78M in 3Q21.

(3) Excludes ($658M) of fair value adjustment for loans in hedge accounting relationships in 3Q22, ($501M) in 2Q22, ($350M) in 1Q22, ($37M) in 4Q21 and $78M in 3Q21.

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

(5) Credit card lending portfolio.


3Q 2022 Preliminary Results		16

ALLY FINANCIAL INC.

CAPITAL


($ in billions)	QUARTERLY TRENDS										CHANGE VS.

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

Risk-weighted assets	$	155.1	$	152.3	$	149.0	$	146.4	$	140.0	$	2.8	$	15.1

Common Equity Tier 1 (CET1) capital ratio		9.3%		9.6%		10.0%		10.3%		11.2%

Tier 1 capital ratio		10.8%		11.1%		11.5%		11.9%		12.8%

Total capital ratio		12.4%		12.7%		13.1%		13.5%		14.6%

Tangible common equity / Tangible assets ⁽¹⁾⁽²⁾		4.9%		5.8%		6.6%		7.6%		8.2%

Tangible common equity / Risk-weighted assets ⁽¹⁾		5.9%		7.1%		8.2%		9.4%		10.4%

Shareholders’ equity	$	12.4	$	14.0	$	15.4	$	17.1	$	17.3	$	(1.6)	$	(4.9)

add: CECL phase-in adjustment		0.9		0.9		0.9		1.2		1.2		—		(0.3)

less: Certain AOCI items and other adjustments		3.4		2.1		0.9		(0.8)		(0.5)		1.3		3.9

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


Common Equity Tier 1 capital	$	14.4	$	14.7	$	14.8	$	15.1	$	15.7	$	(0.3)	$	(1.3)


Common Equity Tier 1 capital	$	14.4	$	14.7	$	14.8	$	15.1	$	15.7	$	(0.3)	$	(1.3)

add: Preferred equity		2.3		2.3		2.3		2.3		2.3		—		—

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


Tier 1 capital	$	16.7	$	16.9	$	17.1	$	17.4	$	17.9	$	(0.2)	2$	(1.2)


Tier 1 capital	$	16.7	$	16.9	$	17.1	$	17.4	$	17.9	$	(0.2)	$	(1.2)

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

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


Total capital	$	19.2	$	19.4	$	19.6	$	19.7	$	20.4	$	(0.2)	$	(1.2)


Total shareholders’ equity	$	12.4	$	14.0	$	15.4	$	17.1	$	17.3	$	(1.6)	$	(4.9)

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

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


Tangible common equity ⁽¹⁾	$	9.2	$	10.7	$	12.2	$	13.8	$	14.6	$	(1.5)	$	(5.4)


Total assets	$	188.6	$	185.7	$	184.3	$	182.1	$	179.2	$	2.9	$	9.4

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


Tangible assets ⁽²⁾	$	187.7	$	184.8	$	183.4	$	181.2	$	178.8	$	2.9	$	8.9

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.


3Q 2022 Preliminary Results		17

ALLY FINANCIAL INC.

LIQUIDITY AND DEPOSITS


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

Liquid cash and cash equivalents ⁽¹⁾	$	4.6	$	3.7	$	3.6	$	4.4	$	10.1	$	0.9		$	(5.6	)

Highly liquid securities ⁽²⁾		22.7		24.6		25.9		26.8		26.7		(1.9	)		(3.9	)

Current committed unused capacity		—		—		—		0.0		0.1		—			(0.1	)


Total current available liquidity	$	27.3	$	28.3	$	29.5	$	31.2	$	36.9	$	(1.0	)	$	(9.6	)


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)		21.3		20.7		20.5		20.3		20.2		0.6			1.1

Average retail deposit rate		1.50%		0.71%		0.59%		0.61%		0.64%

End of Period Deposit Levels ($ in millions)

Retail	$	133,878	$	131,155	$	135,978	$	134,672	$	131,590	$	2,723		$	2,288

Brokered & other		11,873		9,247		6,497		6,886		7,854		2,627			4,019


Total deposits	$	145,751	$	140,402	$	142,475	$	141,558	$	139,444	$	5,350		$	6,308


Deposit Mix

Retail CD		20%		23%		24%		26%		27%

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

Brokered		8%		6%		4%		4%		6%

(1)	May include the restricted cash accumulation for retained notes maturing within the following 30 days and returned to Ally on the distribution date

(2)	Includes unencumbered UST, Agency debt, Agency MBS, and highly liquid Corporates

(3)	Excludes retail notes; as of 9/30/2022. Reflects notional value of outstanding bond. Excludes total GAAP OID and capitalized transaction costs.


3Q 2022 Preliminary Results		18

ALLY FINANCIAL INC.

NET INTEREST MARGIN


($ in millions)	QUARTERLY TRENDS										CHANGE VS.

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

Retail Auto Loans	$	82,362	$	79,695	$	78,224	$	77,979	$	76,557	$	2,667	$	5,805

Auto Lease (net of dep)		10,588		10,615		10,878		10,951		10,919		(27)		(331)

Dealer Floorplan		10,886		11,372		11,594		9,539		8,849		(486)		2,037

Other Dealer Loans		5,059		4,839		4,810		4,829		5,038		220		21

Corporate Finance		9,291		8,351		8,045		7,147		6,735		940		2,556

Mortgage⁽¹⁾		19,762		18,980		18,228		17,533		15,125		782		4,637

Consumer Other - Ally Lending⁽²⁾		1,672		1,346		1,100		923		728		326		944

Consumer Other - Ally Credit Card ⁽³⁾		1,300		1,093		981		309		—		207		1,300

Cash and Cash Equivalents		3,627		3,761		4,027		6,532		13,055		(134)		(9,428)

Investment Securities and Other		34,578		35,050		37,025		37,146		35,532		(472)		(954)

Total Earning Assets	$	179,125	$	175,103	$	174,911	$	172,888	$	172,538	$	4,022	$	6,587
Interest Revenue		2,523		2,231		2,094		2,069		2,038		292		485

Unsecured Debt (ex. Core OID balance) ⁽⁴⁾	$	10,046	$	9,674	$	9,976	$	10,061	$	9,787	$	372	$	259

Secured Debt		1,374		1,154		1,089		1,331		1,675		220		(301)

Deposits ⁽⁵⁾		142,793		139,814		141,557		140,043		139,244		2,979		3,549

Other Borrowings		12,502		11,966		7,203		4,990		4,929		536		7,573

Total Funding Sources (ex. Core OID balance) ⁽⁴⁾	$	166,715	$	162,608	$	159,826	$	156,425	$	155,635	$	4,107	$	11,080

Interest Expense (ex. Core OID) ⁽⁴⁾		793		457		391		406		435		336		358

Net Financing Revenue (ex. Core OID) ⁽⁴⁾	$	1,730	$	1,774	$	1,703	$	1,663	$	1,603	$	(44)	$	127

Net Interest Margin (yield details)

Retail Auto Loan		7.29%		6.82%		6.61%		6.61%		6.62%		0.47%		0.67%

Retail Auto Loan (excl. hedge impact)		7.04%		6.85%		6.75%		6.81%		6.84%		0.19%		0.20%

Auto Lease (net of dep)		5.98%		6.66%		6.96%		7.88%		9.21%		(0.68)%		(3.23)%

Dealer Floorplan		5.03%		3.45%		2.97%		2.98%		3.18%		1.58%		1.85%

Other Dealer Loans		4.33%		4.13%		4.17%		4.10%		4.16%		0.20%		0.17%

Corporate Finance		6.30%		5.02%		4.76%		5.15%		5.12%		1.28%		1.18%

Mortgage		3.10%		3.01%		2.94%		2.77%		2.83%		0.09%		0.27%

Consumer Other - Ally Lending ⁽²⁾		11.04%		11.94%		12.62%		12.89%		13.86%		(0.90)%		(2.82)%

Consumer Other - Ally Credit Card ⁽³⁾		21.17%		19.71%		18.75%		18.11%		—%		1.46%		21.17%

Cash and Cash Equivalents		1.73%		0.61%		0.15%		0.14%		0.14%		1.12%		1.59%

Investment Securities and Other		2.55%		2.35%		2.09%		1.81%		1.76%		0.20%		0.79%

Total Earning Assets		5.59%		5.11%		4.86%		4.75%		4.68%		0.48%		0.91%

Unsecured Debt (ex. Core OID & Core OID balance) ⁽⁴⁾		4.99%		5.04%		5.12%		5.02%		5.19%		(0.05)%		(0.20)%

Secured Debt		6.08%		6.61%		6.36%		5.91%		4.29%		(0.53)%		1.79%

Deposits ⁽⁵⁾		1.58%		0.76%		0.61%		0.64%		0.70%		0.82%		0.88%

Other Borrowings		2.48%		1.75%		2.11%		2.59%		3.42%		0.73%		(0.94)%

Total Funding Sources (ex. Core OID & Core OID balance) ⁽⁴⁾		1.89%		1.12%		0.99%		1.03%		1.11%		0.77%		0.78%

NIM (as reported)		3.81%		4.04%		3.93%		3.80%		3.66%		(0.23)%		0.15%

NIM (ex. Core OID & Core OID balance) ⁽⁴⁾		3.83%		4.06%		3.95%		3.82%		3.68%		(0.23)%		0.15%

(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.


3Q 2022 Preliminary Results		19

ALLY FINANCIAL INC.

ALLY BANK CONSUMER MORTGAGE HFI PORTFOLIOS (PERIOD-END)


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

Gross carry value	$	19.7	$	18.9	$	18.4	$	17.6	$	16.1

Net carry value	$	19.7	$	18.9	$	18.4	$	17.6	$	16.0

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%		0.7%		0.6%		0.8%		1.1%

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

% Non-primary residence		4.4%		4.1%		4.0%		3.9%		4.3%

Refreshed FICO⁽³⁾		780		779		776		776		776

Wtd. Avg. LTV/CLTV ⁽⁴⁾		54.2%		53.7%		55.7%		56.9%		57.6%

Corporate Other Legacy Mortgage HFI Portfolio
Loan Value

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

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

Estimated Pool Characteristics

% Second lien		13.3%		13.9%		14.7%		15.0%		15.6%

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

% 30+ Day delinquent⁽¹⁾⁽²⁾		5.6%		7.2%		7.1%		7.5%		8.1%

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

% Non-primary residence		3.4%		3.3%		3.5%		3.5%		3.6%

Refreshed FICO⁽³⁾		743		740		738		735		735

Wtd. Avg. LTV/CLTV ⁽⁴⁾		47.6%		49.1%		52.2%		54.2%		56.0%

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.


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

GAAP net income attributable to common shareholders		$	272		$	454		$	627		$	624		$	683		$	(182	)	$	(411	)

Weighted-average common shares outstanding - basic			308,220			322,057			335,678			345,870			359,179			(13,837	)		(50,960	)

Weighted-average common shares outstanding - diluted			310,086			324,027			337,812			348,666			361,855			(13,941	)		(51,769	)

Issued shares outstanding (period-end)			300,335			312,781			327,306			337,941			349,599			(12,446	)		(49,264	)


Net income per share - basic		$	0.88		$	1.41		$	1.87		$	1.80		$	1.90		$	(0.53	)	$	(1.02	)


Net income per share - diluted		$	0.88		$	1.40		$	1.86		$	1.79		$	1.89		$	(0.52	)	$	(1.01	)


Adjusted Earnings per Share (“Adjusted EPS”)

Numerator

GAAP net income attributable to common shareholders		$	272		$	454		$	627		$	624		$	683		$	(182	)	$	(411	)

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

Core OID			11			10			10			9			9			—			1

Change in the fair value of equity securities			62			136			66			(21	)		65			(74	)		(2	)

Core OID, repositioning & change in the fair value of equity securities tax (tax rate 21%)			(20	)		(31	)		(16	)		(20	)		(26	)		11			6

Repositioning			20			—			—			107			52			20			(31	)

Core net income attributable to common shareholders ⁽¹⁾		$	346		$	570		$	687		$	705		$	782		$	(224	)	$	(436	)

Denominator

Weighted-average common shares outstanding - diluted			310,086			324,027			337,812			348,666			361,855			(13,941	)		(51,769	)

Adjusted EPS ⁽²⁾		$	1.12		$	1.76		$	2.03		$	2.02		$	2.16		$	(0.64	)	$	(1.04	)

Core original issue discount (Core OID) amortization expense ⁽¹⁾		$	11		$	10		$	10		$	9		$	9		$	0		$	1

Other OID			3			2			3			3			3			—			—


GAAP original issue discount amortization expense		$	13		$	13		$	13		$	12		$	12		$	1		$	2


Core outstanding original issue discount balance (Core OID balance) ⁽¹⁾		$	(852	)	$	(863	)	$	(873	)	$	(883	)	$	(900	)	$	11		$	48

Other outstanding OID balance			(36	)		(39	)		(37	)		(40	)		(29	)		3			(7	)


GAAP outstanding original issue discount balance		$	(888	)	$	(901	)	$	(911	)	$	(923	)	$	(929	)	$	13		$	41


GAAP net financing revenue	[A]	$	1,719		$	1,764		$	1,693		$	1,654		$	1,594		$	(45	)	$	125

Core OID			11			10			10			9			9			—			1


Net Financing Revenue (ex. Core OID)	[B]	$	1,730		$	1,774		$	1,703		$	1,663		$	1,603		$	(45	)	$	126


GAAP Other Revenue	[C]	$	297		$	312		$	442		$	545		$	391		$	(15	)	$	(94	)

Repositioning			—			—			—			9			52			—			(52	)

Change in the fair value of equity securities			62			136			66			(21	)		65			(74	)		(2	)


Adjusted Other Revenue	[D]	$	359		$	448		$	508		$	533		$	507		$	(89	)	$	(148	)


GAAP Provision Expense		$	438		$	304		$	167		$	210		$	76		$	134		$	362

Repositioning			—			—			—			(97	)		—			—			—


Adjusted Provision (ex. Repositioning)		$	438		$	304		$	167		$	113		$	76		$	134		$	362


GAAP Noninterest expense	[E]	$	1,161		$	1,138		$	1,122		$	1,090		$	1,002		$	23		$	159

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


Adjusted Noninterest Expense	[F]	$	1,141		$	1,138		$	1,122		$	1,090		$	1,002		$	3		$	139


Pre-Provision Net Revenue (PPNR)	[A]+[C]+[E]	$	855		$	938		$	1,013		$	1,109		$	983		$	(83	)	$	(128	)

Core Pre-Provision Net Revenue (PPNR) ⁽¹⁾	[B]+[D]+[F]	$	948		$	1,084		$	1,088		$	1,107		$	1,108		$	(137	)	$	(161	)

(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.


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

Numerator

GAAP shareholder’s equity	$	12,434	$	13,984	$	15,413	$	17,050	$	17,289	$	(1,550)	$	(4,855)

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

GAAP common shareholder’s equity	$	10,110	$	11,660	$	13,089	$	14,726	$	14,965	$	(1,550)	$	(4,855)

Goodwill and identifiable intangibles, net of DTLs		(910)		(920)		(932)		(941)		(369)		11		(541)


Tangible common equity ⁽¹⁾		9,200		10,740		12,157		13,785		14,596		(1,539)		(5,396)

Tax-effected Core OID balance (21% tax rate) ⁽¹⁾		(673)		(682)		(690)		(698)		(711)		8		38

Adjusted tangible book value ⁽²⁾	$	8,527	$	10,058	$	11,468	$	13,087	$	13,885	$	(1,531)	$	(5,358)


Denominator

Issued shares outstanding (period-end, thousands)		300,335		312,781		327,306		337,941		349,599		(12,446)		(49,264)

GAAP shareholder’s equity per share	$	41.40	$	44.71	$	47.09	$	50.45	$	49.45	$	(3.31)	$	(8.05)

Preferred equity per share		(7.74)		(7.43)		(7.10)		(6.88)		(6.65)		(0.31)		(1.09)

GAAP common shareholder’s equity per share	$	33.66	$	37.28	$	39.99	$	43.58	$	42.81	$	(3.62)	$	(9.14)

Goodwill and identifiable intangibles, net of DTLs per share		(3.03)		(2.94)		(2.85)		(2.79)		(1.06)		(0.09)		(1.97)


Tangible common equity per share ⁽¹⁾		30.63		34.34		37.14		40.79		41.75		(3.70)		(11.12)

Tax-effected Core OID balance (21% tax rate) per share ⁽¹⁾		(2.24)		(2.18)		(2.11)		(2.06)		(2.03)		(0.06)		(0.21)


Adjusted tangible book value per share ⁽²⁾	$	28.39	$	32.16	$	35.04	$	38.73	$	39.72	$	(3.76)	$	(11.32)

(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.


3Q 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”)	3Q 22		2Q 22		1Q 22		4Q 21		3Q 21		2Q 22		3Q 21

Numerator

GAAP net income attributable to common shareholders	$	272	$	454	$	627	$	624	$	683	$	(182)	$	(411)

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

Core OID		11		10		10		9		9		0		1

Change in the fair value of equity securities		62		136		66		(21)		65		(74)		(2)

Core OID, repositioning & change in the fair value of equity securities tax (tax rate 21%)		(20)		(31)		(16)		(20)		(26)		11		7

Repositioning		20		—		—		107		52		20		(31)

Core net income attributable to common shareholders ⁽¹⁾	$	346	$	570	$	687	$	705	$	782	$	(223)	$	(436)

Denominator (average, $millions)

GAAP shareholder’s equity	$	13,209	$	14,699	$	16,232	$	17,170	$	17,410	$	(1,490)	$	(4,201)

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

Goodwill & identifiable intangibles, net of deferred tax liabilities (“DTLs”)		(915)		(926)		(937)		(655)		(371)		11		(544)


Tangible common equity ⁽¹⁾	$	9,970	$	11,449	$	12,971	$	14,190	$	14,714	$	(1,479)	$	(4,744)

Core OID balance		(858)		(868)		(878)		(892)		(926)		10		68

Net deferred tax asset (“DTA”)		(1,068)		(758)		(437)		(551)		(866)		(310)		(203)


Normalized common equity	$	8,044	$	9,822	$	11,656	$	12,747	$	12,923	$	(1,778)	$	(4,879)

Core Return on Tangible Common Equity ⁽²⁾		17.2%		23.2%		23.6%		22.1%		24.2%

(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.


3Q 2022 Preliminary Results		23

ALLY FINANCIAL INC.

ADJUSTED EFFICIENCY RATIO RELATED INFORMATION


($ in millions)	QUARTERLY TREND															CHANGE VS.

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

Numerator

GAAP Noninterest expense	$	1,161		$	1,138		$	1,122		$	1,090		$	1,002		$	23		$	159

Rep and warrant expense		—			—			—			—			—			—			—

Insurance expense		(290	)		(300	)		(274	)		(263	)		(273	)		10			(17	)

Repositioning		(20	)		—			—			—			—			(20	)		(20	)

Adjusted noninterest expense for the efficiency ratio	$	851		$	838		$	848		$	827		$	729		$	13		$	122

Denominator

Total net revenue	$	2,016		$	2,076		$	2,135		$	2,199		$	1,985		$	(60	)	$	31

Core OID		11			10			10			9			9			0			1

Insurance revenue		(260	)		(178	)		(287	)		(354	)		(297	)		(82	)		37

Repositioning		—			—			—			9			52			—			(52	)

Adjusted net revenue for the efficiency ratio	$	1,767		$	1,908		$	1,858		$	1,864		$	1,749		$	(142	)	$	18

Adjusted Efficiency Ratio ⁽¹⁾		48.2	%		43.9	%		45.6	%		44.4	%		41.7	%

(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 onetime items, as applicable for respective periods. In the denominator, total net revenue is adjusted for Insurance segment revenue and Core OID. See page 11 for the combined ratio for the Insurance segment which management uses as a primary measure of underwriting profitability for the Insurance business.


3Q 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.


3Q 2022 Preliminary Results		25