EX-99.3

EX-99.3 4 d180749dex993.htm EX-99.3 EX-99.3

Exhibit 99.3

LOGO

SECOND QUARTER 2021

FINANCIAL SUPPLEMENT

ALLY FINANCIAL INC.

FORWARD-LOOKING STATEMENTS AND ADDITIONAL INFORMATION

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

This document and related communications contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements can be identified by the fact that they do not relate strictly to historical or current facts—such as statements about future effects of COVID-19, the outlook for financial and operating metrics, and future capital allocation and actions. Forward-looking statements often use words such as “believe,” “expect,” “anticipate,” “intend,” “pursue,” “seek,” “continue,” “estimate,” “project,” “outlook,” “forecast,” “potential,” “target,” “objective,” “trend,” “plan,” “goal,” “initiative,” “priorities,” or other words of comparable meaning or future-tense or conditional verbs such as “may,” “will,” “should,” “would,” or “could.” Forward-looking statements convey our expectations, intentions, or forecasts about future events, circumstances, or results. All forward-looking statements, by their nature, are subject to assumptions, risks, and uncertainties, which may change over time and many of which are beyond our control. You should not rely on any forward-looking statement as a prediction or guarantee about the future. Actual future objectives, strategies, plans, prospects, performance, conditions, or results may differ materially from those set forth in any forward-looking statement. Some of the factors that may cause actual results or other future events or circumstances to differ from those in forward-looking statements are described in our Annual Report on Form 10-K for the year ended December 31, 2020, our subsequent Quarterly Reports on Form 10-Q or Current Reports on Form 8-K, or other applicable documents that are filed or furnished with the U.S. Securities and Exchange Commission (collectively, our “SEC filings”). Any forward-looking statement made by us or on our behalf speaks only as of the date that it was made. We do not undertake to update any forward-looking statement to reflect the impact of events, circumstances, or results that arise after the date that the statement was made, except as required by applicable securities laws. You, however, should consult further disclosures (including disclosures of a forward-looking nature) that we may make in any subsequent SEC filings.

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

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


2Q 2021 Preliminary Results		2

ALLY FINANCIAL INC.

TABLE OF CONTENTS


	Page(s)
Consolidated Results
Consolidated Financial Highlights		4
Consolidated Income Statement		5
Consolidated Period-End Balance Sheet		6
Consolidated Average Balance Sheet		7

Segment Detail
Segment Highlights		8
Automotive Finance		9-10
Insurance		11
Mortgage Finance		12
Corporate Finance		13
Corporate and Other		14

Credit Related Information		15-16

Supplemental Detail
Capital		17
Liquidity and Deposits		18
Net Interest Margin		19
Ally Bank Consumer Mortgage HFI Portfolios		20
Earnings Per Share Related Information		21
Adjusted Tangible Book Per Share Related Information		22
Core ROTCE Related Information		23
Adjusted Efficiency Ratio Related Information		24


2Q 2021 Preliminary Results		3

ALLY FINANCIAL INC.

CONSOLIDATED FINANCIAL HIGHLIGHTS

($ in millions, shares in thousands)


	QUARTERLY TRENDS															CHANGE VS.

Selected Income Statement Data	2Q 21			1Q 21			4Q 20			3Q 20			2Q 20			1Q 21			2Q 20
Net financing revenue (excluding Core OID) ⁽¹⁾	$	1,556		$	1,382		$	1,312		$	1,209		$	1,063		$	175		$	494
Core OID		(9	)		(10	)		(9	)		(9	)		(9	)		0			(1	)
Net financing revenue (as reported)		1,547			1,372			1,303			1,200			1,054			175			493
Other revenue (adjusted) ⁽¹⁾		588			548			567			471			465			40			123
Change in fair value of equity securities ⁽²⁾		19			17			111			13			90			3			(70	)
Repositioning ⁽²⁾		(70	)		-			-			-			-			(70	)		(70	)
Other revenue (as reported)		538			565			678			484			555			(27	)		(17	)
Provision for loan losses		(32	)		(13	)		102			147			287			(19	)		(319	)
Total noninterest expense ⁽³⁾		1,075			943			1,023			905			985			132			90

Pre-tax income from continuing operations		1,042			1,007			856			632			337			35			705
Income tax expense		143			211			169			156			95			(68	)		48
Income / (Loss) from discontinued operations, net of tax		1			-			-			-			(1	)		1			2

Net income attributable to common shareholders		900			796			687			476			241			104			659

Core Pre-Tax, Pre-Provision Net Revenue ⁽⁴⁾		1,070			987			856			775			593			83			477

Selected Balance Sheet Data (Period-End)
Total assets	$	180,470		$	181,879		$	182,165		$	185,270		$	184,061		$	(1,409	)	$	(3,591	)
Consumer loans		90,649			87,391			89,202			90,160			90,365			3,258			284
Commercial loans		21,568			25,685			29,332			27,868			27,869			(4,117	)		(6,301	)
Allowance for loan losses		(3,126	)		(3,152	)		(3,283	)		(3,379	)		(3,354	)		26			228
Deposits		139,104			139,585			137,036			134,938			131,036			(481	)		8,068
Total equity		17,530			14,625			14,703			14,126			13,826			2,905			3,704
Common Share Count
Weighted average basic		370,412			375,229			376,081			375,658			375,051			(4,817	)		(4,639	)
Weighted average diluted		373,029			377,529			378,424			377,011			375,762			(4,500	)		(2,733	)
Issued shares outstanding (period-end)		362,639			371,805			374,674			373,857			373,837			(9,166	)		(11,199	)

Per Common Share Data
Earnings per share (basic)	$	2.43		$	2.12		$	1.83		$	1.27		$	0.64		$	0.31		$	1.79
Earnings per share (diluted)		2.41			2.11			1.82			1.26			0.64			0.30			1.77
Adjusted earnings per share ⁽¹⁾		2.33			2.09			1.60			1.25			0.61			0.23			1.72
Book value per share		41.93			39.34			39.24			37.78			36.98			2.60			4.95
Tangible book value per share ⁽⁵⁾		40.90			38.32			38.22			36.75			35.94			2.58			4.96
Adjusted tangible book value per share ⁽⁵⁾		38.83			36.16			36.05			34.56			33.73			2.67			5.10

Select Financial Ratios
Net interest margin (as reported)		3.55%			3.16%			2.90%			2.65%			2.40%
Net interest margin (ex. Core OID) ⁽¹⁾		3.57%			3.18%			2.92%			2.67%			2.42%
Cost of funds		1.27%			1.42%			1.58%			1.86%			2.16%
Cost of funds (ex. Core OID) ⁽¹⁾		1.23%			1.38%			1.55%			1.82%			2.13%
Efficiency Ratio ⁽⁶⁾		51.6%			48.7%			51.6%			53.7%			61.2%
Adjusted efficiency ratio ⁽⁶⁾		44.5%			44.4%			49.8%			47.3%			52.5%
Return on average assets		2.0%			1.7%			1.5%			1.0%			0.5%
Return on average total equity		22.4%			21.7%			19.1%			13.6%			7.1%
Return on average tangible common equity		24.8%			22.3%			19.6%			14.0%			7.3%
Core ROTCE ⁽⁷⁾		26.7%			24.1%			18.7%			15.2%			7.6%

Capital Ratios ⁽⁸⁾
Common Equity Tier 1 (CET1) capital ratio		11.3%			11.1%			10.6%			10.4%			10.1%
Tier 1 capital ratio		13.1%			12.8%			12.4%			12.1%			11.9%
Total capital ratio		14.8%			14.6%			14.1%			14.1%			13.8%
Tier 1 leverage ratio		10.0%			9.8%			9.4%			9.0%			8.9%

(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 2021 Preliminary Results		4

ALLY FINANCIAL INC.

CONSOLIDATED INCOME STATEMENT

($ in millions)


	QUARTERLY TRENDS															CHANGE VS.

	2Q 21			1Q 21			4Q 20			3Q 20			2Q 20			1Q 21			2Q 20
Financing revenue and other interest income
Interest and fees on finance receivables and loans	$	1,588		$	1,582		$	1,607		$	1,602		$	1,630		$	6		$	(42	)
Interest on loans held-for-sale		4			5			6			5			4			(1	)		-
Total interest and dividends on investment securities		143			124			130			162			187			19			(44	)
Interest-bearing cash		4			4			5			5			4			-			-
Other earning assets		4			7			10			11			10			(3	)		(6	)
Operating leases		384			370			365			360			343			14			41

Total financing revenue and other interest income		2,127			2,092			2,123			2,145			2,178			35			(51	)
Interest expense
Interest on deposits		268			306			367			452			541			(38	)		(273	)
Interest on short-term borrowings		-			1			3			9			13			(1	)		(13	)
Interest on long-term debt		230			250			274			309			318			(20	)		(88	)

Total interest expense		498			557			644			770			872			(59	)		(374	)
Depreciation expense on operating lease assets		82			163			176			175			252			(81	)		(170	)

Net financing revenue (as reported)	$	1,547		$	1,372		$	1,303		$	1,200		$	1,054		$	175		$	493
Other revenue
Insurance premiums and service revenue earned		278			280			287			276			263			(2	)		15
Gain on mortgage and automotive loans, net		19			36			75			33			14			(17	)		5
Loss on extinguishment of debt		(73	)		(1	)		(52	)		(49	)		(1	)		(72	)		(72	)
Other gain/loss on investments, net		65			123			134			64			188			(58	)		(123	)
Other income, net of losses		249			127			234			160			91			122			158

Total other revenue		538			565			678			484			555			(27	)		(17	)
Total net revenue		2,085			1,937			1,981			1,684			1,609			148			476
Provision for loan losses		(32	)		(13	)		102			147			287			(19	)		(319	)
Noninterest expense
Compensation and benefits expense		446			395			340			342			334			51			112
Insurance losses and loss adjustment expenses		74			63			62			85			142			11			(68	)
Goodwill impairment		-			-			-			-			50			-			(50	)
Other operating expenses		555			485			621			478			459			70			96
Total noninterest expense		1,075			943			1,023			905			985			132			90
Pre-tax income from continuing operations	$	1,042		$	1,007		$	856		$	632		$	337		$	35		$	705
Income tax expense from continuing operations		143			211			169			156			95			(68	)		48

Net income from continuing operations		899			796			687			476			242			103			657
Income / (Loss) from discontinued operations, net of tax		1			-			-			-			(1	)		1			2

Net income	$	900		$	796		$	687		$	476		$	241		$	104		$	659


Core Pre-Tax Income Walk
Net financing revenue (ex. OID) ⁽¹⁾	$	1,556		$	1,382		$	1,312		$	1,209		$	1,063		$	175		$	494
Adjusted other revenue ⁽¹⁾		588			548			567			471			465			40			123
Provision for credit losses		(32	)		(13	)		102			147			287			(19	)		(319	)
Adjusted noninterest expense ⁽¹⁾		1,075			943			1,023			905			935			132			140

Core pre-tax income ⁽²⁾	$	1,102		$	1,000		$	754		$	628		$	306		$	102		$	796
Core OID		(9	)		(10	)		(9	)		(9	)		(9	)		0			(1	)
Change in the fair value of equity securities ⁽³⁾		19			17			111			13			90			3			(70	)
Repositioning ⁽³⁾		(70	)		-			-			-			(50	)		(70	)		(20	)

Pre-tax income from continuing operations	$	1,042		$	1,007		$	856		$	632		$	337		$	35		$	705

(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 2021 Preliminary Results		5

ALLY FINANCIAL INC.

CONSOLIDATED PERIOD-END BALANCE SHEET

($ in millions)


	QUARTERLY TRENDS															CHANGE VS.

	2Q 21			1Q 21			4Q 20			3Q 20			2Q 20			1Q 21			2Q 20
Assets
Cash and cash equivalents
Noninterest-bearing	$	653		$	747		$	724		$	719		$	609		$	(94	)	$	44
Interest-bearing		13,011			15,031			14,897			19,220			18,522			(2,020	)		(5,511	)

Total cash and cash equivalents		13,664			15,778			15,621			19,939			19,131			(2,114	)		(5,467	)
Investment securities ⁽¹⁾		36,313			35,711			32,154			31,871			31,228			602			5,085
Loans held-for-sale, net		409			630			406			441			404			(221	)		5
Finance receivables and loans, net		112,217			113,076			118,534			118,028			118,234			(859	)		(6,017	)
Allowance for loan losses		(3,126	)		(3,152	)		(3,283	)		(3,379	)		(3,354	)		26			228

Total finance receivables and loans, net		109,091			109,924			115,251			114,649			114,880			(833	)		(5,789	)
Investment in operating leases, net		10,715			9,944			9,639			9,454			9,088			771			1,627
Premiums receivables and other insurance assets		2,773			2,725			2,679			2,662			2,609			48			164
Other assets		7,505			7,167			6,415			6,254			6,721			338			784

Total assets	$	180,470		$	181,879		$	182,165		$	185,270		$	184,061		$	(1,409	)	$	(3,591	)


Liabilities
Deposit liabilities
Noninterest-bearing	$	149		$	155		$	128		$	159		$	134		$	(6	)	$	15
Interest-bearing		138,955			139,430			136,908			134,779			130,902			(475	)		8,053

Total deposit liabilities		139,104			139,585			137,036			134,938			131,036			(481	)		8,068
Short-term borrowings		-			-			2,136			3,032			3,689			-			(3,689	)
Long-term debt		16,896			20,503			22,006			25,704			29,176			(3,607	)		(12,280	)
Interest payable		365			453			412			748			697			(88	)		(332	)
Unearned insurance premiums and service revenue		3,536			3,487			3,438			3,401			3,338			49			198
Accrued expense and other liabilities		3,039			3,226			2,434			3,321			2,299			(187	)		740

Total liabilities	$	162,940		$	167,254		$	167,462		$	171,144		$	170,235		$	(4,314	)	$	(7,295	)

Equity
Common stock and paid-in capital ⁽²⁾	$	17,716		$	18,153		$	18,350		$	18,324		$	18,307		$	(437	)	$	(591	)
Preferred stock		2,324			-			-			-			-			2,324			2,324
Accumulated deficit		(2,726	)		(3,555	)		(4,278	)		(4,893	)		(5,296	)		829			2,570
Accumulated other comprehensive income / (loss)		216			27			631			695			815			189			(599	)

Total equity		17,530			14,625			14,703			14,126			13,826			2,905			3,704

Total liabilities and equity	$	180,470		$	181,879		$	182,165		$	185,270		$	184,061		$	(1,409	)	$	(3,591	)

(1) Includes held-to-maturity securities.

(2) Includes Treasury stock.


2Q 2021 Preliminary Results		6

ALLY FINANCIAL INC.

CONSOLIDATED AVERAGE BALANCE SHEET ⁽¹⁾

($ in millions)



	QUARTERLY TRENDS															CHANGE VS.
	2Q 21			1Q 21			4Q 20			3Q 20			2Q 20			1Q 21			2Q 20
Assets
Interest-bearing cash and cash equivalents	$	16,564		$	15,363		$	17,758		$	20,719		$	12,496		$	1,201		$	4,068
Investment securities and other earning assets		36,462			34,694			33,107			32,059			32,201			1,768			4,261
Loans held-for-sale, net		454			570			635			472			337			(116	)		117
Total finance receivables and loans, net ⁽²⁾		110,961			115,665			117,422			117,546			122,428			(4,704	)		(11,467	)
Investment in operating leases, net		10,355			9,831			9,587			9,317			9,068			524			1,287

Total interest earning assets		174,796			176,123			178,509			180,113			176,530			(1,327	)		(1,734	)
Noninterest-bearing cash and cash equivalents		494			531			505			536			432			(37	)		62
Other assets		8,978			8,502			8,112			8,137			8,250			476			728
Allowance for loan losses		(3,172	)		(3,280	)		(3,363	)		(3,371	)		(3,227	)		108			55

Total assets	$	181,096		$	181,876		$	183,763		$	185,415		$	181,985		$	(780)		$	(889	)


Liabilities
Interest-bearing deposit liabilities
Retail deposit liabilities	$	128,787		$	125,715		$	122,166		$	118,307		$	111,152		$	3,072		$	17,635
Other interest-bearing deposit liabilities ⁽³⁾		10,446			11,851			13,327			14,500			15,726			(1,405	)		(5,280	)

Total Interest-bearing deposit liabilities		139,233			137,566			135,493			132,807			126,878			1,667			12,355
Short-term borrowings		-			814			2,350			3,343			4,712			(814	)		(4,712	)
Long-term debt ⁽⁴⁾		18,411			21,173			24,103			28,512			30,554			(2,762	)		(12,143	)

Total interest-bearing liabilities ⁽⁴⁾		157,644			159,553			161,946			164,662			162,144			(1,910	)		(4,501	)
Noninterest-bearing deposit liabilities		149			152			149			157			136			(3	)		13
Other liabilities		6,802			7,038			6,819			6,472			5,343			(237	)		1,459

Total liabilities	$	164,595		$	166,743		$	168,914		$	171,291		$	167,623		$	(2,148)		$	(3,027	)

Equity
Total equity	$	16,501		$	15,133		$	14,849		$	14,124		$	14,362		$	1,369		$	2,140

Total liabilities and equity	$	181,096		$	181,876		$	183,763		$	185,415		$	181,985		$	(780)		$	(889	)

(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 $989 million in 2Q 2021, $1,023 million in 1Q 2021, $1,032 million in 4Q 2020, $1,041 million in 3Q 2020, and $1,050 million in 2Q 20.


2Q 2021 Preliminary Results		7

ALLY FINANCIAL INC.

SEGMENT HIGHLIGHTS

($ in millions)


	QUARTERLY TRENDS															CHANGE VS.

	2Q 21			1Q 21			4Q 20			3Q 20			2Q 20			1Q 21			2Q 20
Pre-tax Income / (Loss)
Automotive Finance	$	917		$	803		$	563		$	566		$	329		$	114		$	588
Insurance		87			141			183			78			128			(54	)		(41	)

Dealer Financial Services		1,004			944			746			644			457			60			547
Corporate Finance		95			53			64			60			32			42			63
Mortgage Finance		-			23			7			26			8			(23	)		(8	)
Corporate and Other ⁽¹⁾		(57	)		(13	)		39			(98	)		(160	)		(44	)		103

Pre-tax income from continuing operations	$	1,042		$	1,007		$	856		$	632		$	337		$	35		$	705
Core OID ⁽²⁾		9			10			9			9			9			(0	)		1
Change in the fair value of equity securities ⁽³⁾		(19	)		(17	)		(111	)		(13	)		(90	)		(3	)		70
Repositioning ⁽⁴⁾		70			-			-			-			50			70			20

Core pre-tax income ⁽⁴⁾	$	1,102		$	1,000		$	754		$	628		$	306		$	102		$	796

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

(2) 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 2021 Preliminary Results		8

ALLY FINANCIAL INC.

AUTOMOTIVE FINANCE - CONDENSED FINANCIAL STATEMENTS

($ in millions)


	QUARTERLY TRENDS															CHANGE VS.

Income Statement	2Q 21			1Q 21			4Q 20			3Q 20			2Q 20			1Q 21			2Q 20
Net financing revenue
Consumer	$	1,288		$	1,251		$	1,261		$	1,253		$	1,215		$	37		$	73
Commercial		125			161			163			153			210			(36	)		(85	)
Operating leases		384			370			365			360			343			14			41
Other interest income		-			-			1			1			2			-			(2	)

Total financing revenue and other interest income		1,797			1,782			1,790			1,767			1,770			15			27
Interest expense		382			413			461			490			529			(31	)		(147	)
Depreciation expense on operating lease assets:
Depreciation expense on operating lease assets (ex. remarketing)		210			226			242			245			240			(16	)		(30	)
Remarketing gains / (losses)		128			64			66			70			(11	)		64			139

Total depreciation expense on operating lease assets		82			163			176			175			252			(81	)		(170	)

Net financing revenue		1,333			1,206			1,153			1,102			989			127			344
Other revenue
Total other revenue		61			62			56			61			40			(1	)		21

Total net revenue		1,394			1,268			1,209			1,163			1,029			126			365
Provision for credit losses		(23	)		(22	)		86			128			256			(1	)		(279	)
Noninterest expense
Compensation and benefits		144			145			134			134			133			(1	)		11
Other operating expenses		356			342			426			335			311			14			45

Total noninterest expense		500			487			560			469			444			13			56

Pre-tax Income	$	917		$	803		$	563		$	566		$	329		$	114		$	588


Memo: Net lease revenue
Operating lease revenue	$	384		$	370		$	365		$	360		$	343		$	14		$	41
Depreciation expense on operating lease assets (ex. remarketing)		210			226			242			245			240			(16	)		(30	)
Remarketing gains (losses), net of repo valuation		128			64			66			70			(11	)		64			139

Total depreciation expense on operating lease assets		82			163			176			175			252			(81	)		(170	)

Net lease revenue	$	302		$	207		$	189		$	185		$	91		$	95		$	211


Balance Sheet (Period-End)
Cash, trading and investment securities	$	23		$	23		$	23		$	23		$	23		$	-		$	-
Consumer loans		75,827			73,826			73,443			73,484			72,378			2,001			3,449
Commercial loans		15,219			19,208			23,141			21,854			21,708			(3,989	)		(6,489	)
Allowance for loan losses		(2,848	)		(2,867	)		(2,986	)		(3,092	)		(3,084	)		19			236

Total finance receivables and loans, net		88,198			90,167			93,598			92,246			91,002			(1,969	)		(2,804	)
Investment in operating leases, net		10,715			9,944			9,639			9,454			9,088			771			1,627
Other assets		1,226			1,432			1,534			1,643			1,903			(206	)		(677	)

Total assets	$	100,162		$	101,566		$	104,794		$	103,366		$	102,016		$	(1,404	)	$	(1,854	)


2Q 2021 Preliminary Results		9

ALLY FINANCIAL INC.

AUTOMOTIVE FINANCE - KEY STATISTICS


	QUARTERLY TRENDS											CHANGE VS.

	2Q 21		1Q 21		4Q 20		3Q 20		2Q 20			1Q 21			2Q 20
U.S. Consumer Originations ⁽¹⁾ ($ in billions)
Retail standard - new vehicle GM	$	1.2	$	1.0	$	1.1	$	1.0	$	0.7		$	0.2		$	0.5
Retail standard - new vehicle Stellantis		1.2		1.0		1.0		1.0		0.7			0.2			0.5
Retail standard - new vehicle Growth		1.5		1.1		1.1		1.0		0.6			0.3			0.8
Used vehicle		7.3		5.7		4.7		5.4		4.3			1.6			3.0
Lease		1.8		1.4		1.2		1.4		0.9			0.5			1.0
Retail subvented		0.0		0.0		0.0		0.0		0.0			0.0			0.0

Total originations	$	12.9	$	10.2	$	9.1	$	9.8	$	7.2		$	2.8		$	5.7

U.S. Consumer Originations - FICO Score
Super Prime (740+)	$	2.8	$	2.2	$	2.1	$	2.3	$	1.6		$	0.6		$	1.2
Prime (660-739)		5.1		4.2		3.7		3.9		2.9			0.9			2.2
Prime/Near (620-659)		3.1		2.3		2.0		2.0		1.6			0.8			1.6
Non Prime (540-619)		1.0		0.8		0.6		0.8		0.6			0.3			0.4
Sub Prime (0-539)		0.1		0.1		0.1		0.2		0.1			0.0			0.0
Commercial Services Group ⁽²⁾		0.7		0.6		0.6		0.5		0.4			0.1			0.3

Total originations	$	12.9	$	10.2	$	9.1	$	9.8	$	7.2		$	2.8		$	5.7

U.S. Consumer Retail Originations - Average FICO
New vehicle		691		693		698		699		697			(3	)		(6	)
Used vehicle		678		681		684		681		680			(3	)		(2	)
Total retail originations		682		685		690		687		685			(3	)		(3	)

U.S. Market
Light vehicle sales (SAAR - units in millions)		17.0		16.8		16.1		15.3		11.3			0.2			5.7
Light vehicle sales (quarterly - units in millions)		4.4		3.9		4.2		3.9		3.0			0.5			1.4

Dealer Engagement
Total Active Dealers		19,650		18,986		18,716		18,658		18,423			664			1,227
Total Application Volume (000s)		3,527		3,284		2,804		3,240		3,099			243			428

Ally U.S. Commercial Outstandings EOP ($ in billions)
Floorplan outstandings	$	10.0	$	13.5	$	17.3	$	16.0	$	15.8		$	(3.5	)	$	(5.8	)
Dealer loans and other		5.2		5.7		5.9		5.8		5.9			(0.5	)		(0.7	)

Total Commercial outstandings	$	15.2	$	19.2	$	23.1	$	21.9	$	21.7		$	(4.0	)	$	(6.5	)

U.S. Off-Lease Remarketing
Off-lease vehicles terminated - on-balance sheet (# in units)		34,768		30,488		30,480		28,917		26,785			4,280			7,983
Average gain / (loss) per vehicle	$	3,684	$	2,114	$	2,150	$	2,437	$	(421	)	$	1,570		$	4,105
Total gain / (loss) ($ in millions)	$	128	$	64	$	66	$	70	$	(11	)	$	64		$	139

(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 40-45 bps on CSG loans from 2016 through 2Q21


2Q 2021 Preliminary Results		10

ALLY FINANCIAL INC.

INSURANCE - CONDENSED FINANCIAL STATEMENTS AND KEY STATISTICS

($ in millions)


	QUARTERLY TRENDS										CHANGE VS.

Income Statement *(GAAP View)*	2Q 21		1Q 21		4Q 20		3Q 20		2Q 20		1Q 21			2Q 20
Net financing revenue
Total interest and fees on finance receivables and loans⁽¹⁾	$	3	$	4	$	1	$	-	$	-	$	(1	)	$	3
Interest and dividends on investment securities		26		25		26		25		27		1			(1	)
Interest bearing cash		-		-		1		4		4		-			(4	)

Total financing revenue and other interest revenue		29		29		28		29		31		-			(2	)
Interest expense		14		14		20		21		19		-			(5	)

Net financing revenue		15		15		8		8		12		-			3
Other revenue
Insurance premiums and service revenue earned		278		280		287		276		263		(2	)		15
Other gain / (loss) on investments, net		61		98		131		59		172		(37	)		(111	)
Other income, net of losses		5		1		3		3		3		4			2

Total other revenue		344		379		421		338		438		(35	)		(94	)

Total net revenue		359		394		429		346		450		(35	)		(91	)
Noninterest expense
Compensation and benefits expense		24		22		20		21		20		2			4
Insurance losses and loss adjustment expenses		74		63		62		85		142		11			(68	)
Other operating expenses		174		168		164		162		160		6			14

Total noninterest expense		272		253		246		268		322		19			(50	)

Pre-tax Income	$	87	$	141	$	183	$	78	$	128	$	(54	)	$	(41	)


Memo: Income Statement (Managerial View)
Insurance premiums and other income
Insurance premiums and service revenue earned	$	278	$	280	$	287	$	276	$	263	$	(2	)	$	15
Investment income (adjusted) ⁽²⁾		56		102		28		54		95		(45	)		(39	)
Other income		5		1		3		3		3		4			2

Total insurance premiums and other income		339		383		318		333		361		(43	)		(22	)
Expense
Insurance losses and loss adjustment expenses		74		63		62		85		142		11			(68	)
Acquisition and underwriting expenses
Compensation and benefit expense		24		22		20		21		20		2			4
Insurance commission expense		138		136		133		130		127		2			11
Other expense		36		32		31		32		33		4			3

Total acquistion and underwriting expense		198		190		184		183		180		8			18

Total expense		272		253		246		268		322		19			(50	)

Core pre-tax income ⁽²⁾		67		130		72		65		39		(62	)		28
Change in the fair value of equity securities ⁽²⁾		20		11		111		13		89		8			(69	)

Income before income tax expense	$	87	$	141	$	183	$	78	$	128	$	(54	)	$	(41	)


Balance Sheet (Period-End)
Cash and investment securities	$	5,738	$	5,706	$	5,421	$	6,006	$	5,920	$	32		$	(182	)
Intercompany loans⁽¹⁾		697		591		830		-		-		106			697
Premiums receivable and other insurance assets		2,782		2,738		2,693		2,674		2,621		44			161
Other assets		177		186		193		264		199		(9	)		(22	)

Total assets	$	9,394	$	9,221	$	9,137	$	8,944	$	8,740	$	173		$	654


Key Statistics
Total written premiums and revenue ⁽³⁾	$	301	$	333	$	312	$	333	$	267	$	(32	)	$	34

Loss ratio ⁽⁴⁾		26.3%		22.4%		21.6%		30.3%		53.4%
Underwriting expense ratio ⁽⁵⁾		70.4%		67.1%		63.5%		65.8%		67.4%

Combined ratio		96.7%		89.5%		85.1%		96.1%		120.9%

(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 2021 Preliminary Results		11

ALLY FINANCIAL INC.

MORTGAGE FINANCE - CONDENSED FINANCIAL STATEMENTS

($ in millions)


	QUARTERLY TRENDS															CHANGE VS.

Income Statement	2Q 21			1Q 21			4Q 20			3Q 20			2Q 20			1Q 21			2Q 20
Net financing revenue
Total financing revenue and other interest income	$	89		$	93		$	101		$	121		$	127		$	(4	)	$	(38	)
Interest expense		66			70			81			91			97			(4	)		(31	)

Net financing revenue		23			23			20			30			30			-			(7	)
Gain on mortgage loans, net		19			36			33			34			17			(17	)		2
Other income, net of losses		3			4			4			2			2			(1	)		1

Total other revenue		22			40			37			36			19			(18	)		3

Total net revenue		45			63			57			66			49			(18	)		(4	)

Provision for loan losses		-			(4	)		3			-			3			4			(3	)
Noninterest expense
Compensation and benefits expense		5			6			5			6			5			(1	)		-
Other operating expense		40			38			42			34			33			2			7

Total noninterest expense		45			44			47			40			38			1			7

Pre-tax Income	$	-		$	23		$	7		$	26		$	8		$	(23	)	$	(8	)


Balance Sheet (Period-End)
Finance receivables and loans, net:
Consumer loans	$	13,629		$	12,445		$	14,632		$	15,168		$	16,429		$	1,184		$	(2,800	)
Allowance for loan losses		(15	)		(16	)		(21	)		(20	)		(21	)		1			6

Total finance receivables and loans, net		13,614			12,429			14,611			15,148			16,408			1,185			(2,794	)
Other assets		251			494			278			355			261			(243	)		(10	)

Total assets	$	13,865		$	12,923		$	14,889		$	15,503		$	16,669		$	942		$	(2,804	)


2Q 2021 Preliminary Results		12

ALLY FINANCIAL INC.

CORPORATE FINANCE - CONDENSED FINANCIAL STATEMENTS

($ in millions)


	QUARTERLY TRENDS															CHANGE VS.

Income Statement	2Q 21			1Q 21			4Q 20			3Q 20			2Q 20			1Q 21			2Q 20
Net financing revenue
Total financing revenue and other interest income	$	86		$	80		$	89		$	84		$	92		$	6		$	(6	)
Interest expense		9			9			10			9			15			-			(6	)

Net financing revenue		77			71			79			75			77			6			-
Total other revenue		33			26			17			9			6			7			27

Total net revenue		110			97			96			84			83			13			27
Provision for loan losses		(13	)		13			9			1			25			(26	)		(38	)
Noninterest expense
Compensation and benefits expense		17			20			14			13			14			(3	)		3
Other operating expense		11			11			9			10			12			-			(1	)

Total noninterest expense		28			31			23			23			26			(3	)		2

Pre-tax Income	$	95		$	53		$	64		$	60		$	32		$	42		$	63

Change in the fair value of equity securities ⁽¹⁾		1			(5	)		(1	)		(1	)		(1	)		6			2

Core pre-tax income ⁽²⁾	$	96		$	48		$	63		$	59		$	31		$	48		$	65


Balance Sheet (Period-End)
Equity securities	$	12		$	14		$	7		$	6		$	5		$	(2	)	$	7
Loans held for sale		184			229			205			207			265			(45	)		(81	)
Commercial loans		6,157			6,285			6,006			5,883			6,031			(128	)		126
Allowance for loan losses		(178	)		(187	)		(189	)		(180	)		(178	)		9			-

Total finance receivables and loans, net		5,979			6,098			5,817			5,703			5,853			(119	)		126
Other assets		71			80			79			79			83			(9	)		(12	)

Total assets	$	6,246		$	6,421		$	6,108		$	5,995		$	6,206		$	(175	)	$	40

(1) See page 25 for methodology and detail.

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


2Q 2021 Preliminary Results		13

ALLY FINANCIAL INC.

CORPORATE AND OTHER - CONDENSED FINANCIAL STATEMENTS

($ in millions)


	QUARTERLY TRENDS															CHANGE VS.

Income Statement	2Q 21			1Q 21			4Q 20			3Q 20			2Q 20			1Q 21			2Q 20
Net financing revenue
Total financing revenue and other interest income	$	126		$	108		$	115		$	144		$	158		$	18		$	(32	)

Interest expense		27			51			72			159			212			(24	)		(185	)

Net financing revenue / (loss)		99			57			43			(15	)		(54	)		42			153
Other revenue
Loss on extinguishment of debt		(73	)		(1	)		(52	)		(49	)		(1	)		(72	)		(72	)
Other gain on investments, net		5			20			1			5			15			(15	)		(10	)
Gain/(loss) on mortgage and automotive loans, net		-			-			42			(1	)		(3	)		-			3
Other income, net of losses ⁽¹⁾		146			39			156			85			41			107			105

Total other revenue		78			58			147			40			52			20			26

Total net revenue		177			115			190			25			(2	)		62			179
Provision for loan losses		4			-			4			18			3			4			1
Noninterest expense
Compensation and benefits expense		256			202			167			168			162			54			94
Goodwill impairment		-			-			-			-			50			-			(50	)
Other operating expense ⁽²⁾		(26	)		(74	)		(20	)		(63	)		(57	)		48			31

Total noninterest expense		230			128			147			105			155			102			75

Pre-tax (loss) income	$	(57	)	$	(13	)	$	39		$	(98	)	$	(160	)	$	(44	)	$	103

Change in the fair value of equity securities ⁽³⁾		(1	)		-			-			-			-			(1	)		(1	)
Core OID ⁽⁴⁾		9			10			9			9			9			(0	)		1
Repositioning ⁽³⁾		70			-			-			-			50			70			20

Core pre-tax income / (loss) ⁽⁴⁾	$	21		$	(3	)	$	48		$	(89	)	$	(101	)	$	25		$	123


Balance Sheet (Period-End)
Cash, trading and investment securities	$	44,204		$	45,746		$	42,324		$	45,775		$	44,411		$	(1,542	)	$	(207	)
Loans held-for-sale		128			117			110			78			48			11			80
Consumer loans		1,193			1,120			1,127			1,508			1,558			73			(365	)
Commercial loans		192			192			185			131			130			-			62
Intercompany loans⁽⁵⁾		(697	)		(591	)		(830	)		-			-			(106	)		(697	)
Allowance for loan losses		(85	)		(82	)		(87	)		(87	)		(71	)		(3	)		(14	)

Total finance receivables and loans, net		603			639			395			1,552			1,617			(36	)		(1,014	)
Other assets		5,868			5,246			4,408			4,057			4,354			622			1,514

Total assets	$	50,803		$	51,748		$	47,237		$	51,462		$	50,430		$	(945	)	$	373


Core OID Amortization Schedule ⁽⁴⁾	2021			2022			2023			2024			2025 & After
Remaining Core OID amortization expense ⁽⁶⁾	$	19		$	42		$	49		$	57			Avg = $46/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 $268 million for 2Q21, $257 million for 1Q21, $254 million for 4Q20, $234 million for 3Q20 and $242 million for 2Q20. The receiving business segment records the allocation of corporate overhead expense within other operating expenses.

(3) See page 25 for methodology and detail.

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

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

(6) Forecast values reflect the completion of a two-part exercise to retire a total of $2.4B trust preferred securities. The second redemption closed in early July. The amortization schedule reflects the execution of both redemptions.


2Q 2021 Preliminary Results		14

ALLY FINANCIAL INC.

CREDIT RELATED INFORMATION

$ in millions


	QUARTERLY TRENDS												CHANGE VS.

Asset Quality - Consolidated ⁽¹⁾	2Q 21			1Q 21			4Q 20		3Q 20		2Q 20		1Q 21			2Q 20
Ending loan balance	$	112,209		$	113,068		$	118,526	$	118,020	$	118,226	$	(859	)	$	(6,017	)
30+ Accruing DPD	$	1,291		$	1,122		$	1,914	$	1,840	$	1,695	$	169		$	(404	)
30+ Accruing DPD %		1.15%			0.99%			1.61%		1.56%		1.43%
60+ Accruing DPD	$	247		$	244		$	438	$	366	$	349	$	3		$	(102	)
60+ Accruing DPD %		0.22%			0.22%			0.37%		0.31%		0.30%
Non-performing loans (NPLs)	$	1,283		$	1,439		$	1,522	$	1,493	$	1,532	$	(156	)	$	(249	)
Net charge-offs (NCOs)	$	(6	)	$	118		$	198	$	122	$	178	$	(124	)	$	(184	)
Net charge-off rate ⁽²⁾		(0.02	)%		0.41%			0.67%		0.41%		0.58%

Provision for loan losses	$	(32	)	$	(13	)	$	102	$	147	$	287	$	(19	)	$	(319	)
Allowance for loan losses (ALLL)	$	3,126		$	3,152		$	3,283	$	3,379	$	3,354	$	(26	)	$	(228	)

ALLL as % of Loans ^{(3) (4)}		2.79%			2.79%			2.78%		2.87%		2.85%
ALLL as % of NPLs ⁽³⁾		244%			219%			216%		226%		219%
ALLL as % of NCOs ⁽³⁾		n/m			667%			414%		691%		471%

US Auto Delinquencies - HFI Retail Contract $ ‘s
30+ Delinquent contract $	$	1,218		$	1,059		$	1,834	$	1,658	$	1,599	$	159		$	(381	)
% of retail contract $ outstanding		1.60%			1.43%			2.49%		2.25%		2.20%
60+ Delinquent contract $	$	241		$	233		$	428	$	350	$	341
% of retail contract $ outstanding		0.32%			0.32%			0.58%		0.47%		0.47%

U.S. Auto Annualized Net Charge-Offs - HFI Retail Contract $‘s
Net charge-offs	$	(5	)	$	97		$	186	$	117	$	137	$	(102	)	$	(142	)
% of avg. HFI assets ⁽²⁾		(0.03	)%		0.53%			1.01%		0.64%		0.76%

U.S. Auto Annualized Net Charge-Offs - HFI Commercial Contract $‘s
Net charge-offs	$	-		$	-		$	7	$	4	$	1	$	-		$	(1	)
% of avg. HFI assets ⁽²⁾		—%			—%			0.12%		0.07%		0.02%

(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 $124 million of fair value adjustment for loans in hedge accounting relationships in 2Q21, $173 million in 1Q21, $225 million in 4Q20, $277 million in 3Q20 and $334 million in 2Q20.


2Q 2021 Preliminary Results		15

ALLY FINANCIAL INC.

CREDIT RELATED INFORMATION, CONTINUED

($ in millions)


Automotive Finance ⁽¹⁾	QUARTERLY TRENDS										CHANGE VS.

*Consumer*	2Q 21		1Q 21		4Q 20		3Q 20		2Q 20		1Q 21			2Q 20
Allowance for loan losses	$	2,802	$	2,809	$	2,902	$	2,982	$	2,963	$	(7	)	$	(161	)
Total consumer loans ⁽²⁾	$	75,951	$	73,998	$	73,668	$	73,761	$	72,712	$	1,953		$	3,239
Coverage ratio ⁽³⁾		3.70%		3.80%		3.95%		4.06%		4.09%

Commercial
Allowance for loan losses	$	46	$	58	$	84	$	110	$	121	$	(12	)	$	(75	)
Total commercial loans	$	15,219	$	19,208	$	23,141	$	21,854	$	21,708	$	(3,989	)	$	(6,489	)
Coverage ratio		0.30%		0.30%		0.36%		0.51%		0.56%

Mortgage ⁽¹⁾
Consumer
Mortgage Finance
Allowance for loan losses	$	15	$	16	$	21	$	20	$	21	$	(1)		$	(6)
Total consumer loans	$	13,629	$	12,445	$	14,632	$	15,168	$	16,429	$	1,184		$	(2,800)
Coverage ratio		0.11%		0.13%		0.15%		0.13%		0.13%

Mortgage - Legacy
Allowance for loan losses	$	9	$	10	$	12	$	19	$	21	$	(1)		$	(12)
Total consumer loans	$	429	$	458	$	495	$	904	$	984	$	(29)		$	(555)
Coverage ratio		2.16%		2.19%		2.40%		2.09%		2.08%

*Total Mortgage*
Allowance for loan losses	$	24	$	26	$	33	$	39	$	42	$	(2)		$	(18)
Total consumer loans	$	14,058	$	12,903	$	15,127	$	16,072	$	17,413	$	1,155		$	(3,355)
Coverage ratio		0.18%		0.20%		0.22%		0.24%		0.24%

Consumer Other⁽¹⁾⁽⁴⁾
Allowance for loan losses	$	72	$	69	$	73	$	67	$	49	$	3		$	23
Total consumer loans	$	632	$	482	$	399	$	319	$	232	$	150		$	400
Coverage ratio		11.39%		14.33%		18.38%		20.93%		21.06%

Corporate Finance ⁽¹⁾
Allowance for loan losses	$	178	$	187	$	189	$	180	$	178	$	(9	)	$	-
Total commercial loans	$	6,157	$	6,285	$	6,006	$	5,883	$	6,031	$	(128	)	$	126
Coverage ratio		2.90%		2.98%		3.14%		3.05%		2.95%

Corporate and Other ⁽¹⁾
Allowance for loan losses	$	4	$	3	$	2	$	1	$	1	$	1		$	3
Total commercial loans	$	192	$	192	$	185	$	131	$	130	$	-		$	62
Coverage ratio		1.36%		1.36%		1.36%		1.13%		1.13%

(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 $124 million of fair value adjustment for loans in hedge accounting relationships in 2Q21, $173 million in 1Q21, $225 million in 4Q20, $277 million in 3Q20 and $334 million in 2Q20.

(3) Excludes $124 million of fair value adjustment for loans in hedge accounting relationships in 2Q21, $173 million in 1Q21, $225 million in 4Q20, $277 million in 3Q20 and $334 million in 2Q20.

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


2Q 2021 Preliminary Results		16

ALLY FINANCIAL INC.

CAPITAL

($ in billions)


	QUARTERLY TRENDS															CHANGE VS.
Capital	2Q 21			1Q 21			4Q 20			3Q 20			2Q 20			1Q 21			2Q 20
Risk-weighted assets	$	138.8		$	138.8		$	139.8		$	137.6		$	137.0		$	—		$	1.8

Common Equity Tier 1 (CET1) capital ratio		11.3%			11.1%			10.6%			10.4%			10.1%
Tier 1 capital ratio		13.1%			12.8%			12.4%			12.1%			11.9%
Total capital ratio		14.8%			14.6%			14.1%			14.1%			13.8%

Tangible common equity / Tangible assets ⁽¹⁾⁽²⁾		8.2%			7.8%			7.9%			7.4%			7.3%
Tangible common equity / Risk-weighted assets ⁽¹⁾		10.7%			10.3%			10.2%			10.0%			9.8%

Shareholders’ equity	$	17.5		$	14.6		$	14.7		$	14.1		$	13.8		$	2.9		$	3.7
add: CECL phase-in adjustment		1.1			1.2			1.2			1.2			1.2			(0.1	)		(0.1	)
less: Certain AOCI items and other adjustments		(0.6	)		(0.4	)		(1.0	)		(1.1	)		(1.2	)		(0.2	)		0.6
Preferred equity		(2.3	)		—			—			—			—			(2.3	)		(2.3	)

Common Equity Tier 1 capital	$	15.7		$	15.4		$	14.9		$	14.3		$	13.8		$	0.3		$	1.9


Common Equity Tier 1 capital	$	15.7		$	15.4		$	14.9		$	14.3		$	13.8		$	0.3		$	1.9
add: Preferred equity		2.3			—			—			—			—			2.3			2.3
Trust preferred securities		0.2			2.5			2.5			2.5			2.5			(2.3	)		(2.3	)
less: Other adjustments		(0.1	)		(0.1	)		(0.1	)		(0.1	)		(0.1	)		—			—

Tier 1 capital	$	18.2		$	17.8		$	17.3		$	16.7		$	16.2		$	0.4		$	2.0


Tier 1 capital	$	18.2		$	17.8		$	17.3		$	16.7		$	16.2		$	0.4		$	2.0
add: Qualifying subordinated debt		0.8			0.8			0.8			1.0			1.0			—			(0.2	)
add: Allowance for loan and lease losses includible in Tier 2 capital and other adjustments		1.6			1.6			1.7			1.6			1.6			—			—

Total capital	$	20.6		$	20.2		$	19.8		$	19.3		$	18.9		$	0.4		$	1.7


Total shareholders’ equity	$	17.5		$	14.6		$	14.7		$	14.1		$	13.8		$	2.9		$	3.7
less: Preferred equity		(2.3	)		—			—			—			—			(2.3	)		(2.3	)
Goodwill and intangible assets, net of deferred tax liabilities		(0.4	)		(0.4	)		(0.4	)		(0.4	)		(0.4	)		—			—

Tangible common equity ⁽¹⁾	$	14.8		$	14.2		$	14.3		$	13.7		$	13.4		$	0.6		$	1.4


Total assets	$	180.5		$	181.9		$	182.2		$	185.3		$	184.1		$	(1.4	)	$	(3.6	)
less: Goodwill and intangible assets, net of deferred tax liabilities		(0.4	)		(0.4	)		(0.4	)		(0.4	)		(0.4	)		—			—

Tangible assets ⁽²⁾	$	180.1		$	181.5		$	181.8		$	184.9		$	183.7		$	(1.4	)	$	(3.6	)

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 2021 Preliminary Results		17

ALLY FINANCIAL INC.

LIQUIDITY AND DEPOSITS


	QUARTERLY TRENDS										CHANGE VS.
Consolidated Available Liquidity ($ in billions)	2Q 21		1Q 21		4Q 20		3Q 20		2Q 20		1Q 21			2Q 20
Liquid cash and cash equivalents ⁽¹⁾	$	13.0	$	15.2	$	14.9	$	19.3	$	18.6	$	(2.2	)	$	(5.6	)
Highly liquid securities ⁽²⁾		28.4		28.0		24.8		23.5		23.4		0.4			5.0
Current committed unused capacity		0.2		0.4		0.6		1.4		1.6		(0.2	)		(1.4	)

Total current available liquidity	$	41.6	$	43.6	$	40.3	$	44.2	$	43.5	$	(2.0	)	$	(1.9	)

Unsecured Long-Term Debt Maturity Profile		2021		2022		2023		2024		2025		2026 & After

Consolidated remaining maturities ⁽³⁾	$	—	$	1.1	$	2.0	$	1.5	$	2.3	$	2.5
Ally Bank Deposits
Key Deposit Statistics
Average retail CD maturity (months)		20.1		20.0		19.7		19.6		19.6		0.1			0.5
Average retail deposit rate		0.69%		0.81%		0.97%		1.26%		1.64%

End of Period Deposit Levels ($ in millions)
Retail	$	129,222	$	128,370	$	124,357	$	120,789	$	115,813	$	852		$	13,409
Brokered & other		9,882		11,215		12,680		14,149		15,223		(1,333	)		(5,342	)

Total deposits	$	139,104	$	139,585	$	137,036	$	134,938	$	131,036	$	(482	)	$	8,068

Deposit Mix
Retail CD		28%		30%		33%		34%		36%
MMA/OSA/Checking		65%		62%		58%		56%		53%
Brokered		7%		8%		9%		10%		11%

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

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

(3) Excludes retail notes and trust preferred securities; as of 6/30/2021. Reflects notional value of outstanding bond. Excludes total GAAP OID and capitalized transaction costs.


2Q 2021 Preliminary Results		18

ALLY FINANCIAL INC.

NET INTEREST MARGIN

($ in millions)


	QUARTERLY TRENDS										CHANGE VS.

Average Balance Details	2Q 21		1Q 21		4Q 20		3Q 20		2Q 20		1Q 21			2Q 20
Retail Auto Loans	$	74,662	$	73,500	$	73,401	$	72,999	$	72,262	$	1,162		$	2,399
Auto Lease (net of dep)		10,355		9,831		9,587		9,317		9,068		524			1,287
Dealer Floorplan		10,825		15,612		16,573		15,385		20,215		(4,787	)		(9,391	)
Other Dealer Loans		5,507		5,729		5,844		5,880		5,891		(222	)		(384	)
Corporate Finance		6,383		6,338		6,203		6,188		6,580		45			(197	)
Mortgage⁽¹⁾		13,179		14,310		15,445		17,096		17,422		(1,131	)		(4,243	)
Consumer Other⁽²⁾		537		444		366		285		221		92			316
Cash and Cash equivalents		16,564		15,363		17,758		20,719		12,496		1,201			4,068
Investment Securities and Other		36,784		34,996		33,331		32,244		32,375		1,788			4,409

Total Earning Assets	$	174,796	$	176,123	$	178,509	$	180,113	$	176,530	$	(1,327)		$	(1,734	)

Interest Revenue		2,044		1,929		1,947		1,970		1,926		115			118

Unsecured Debt (ex. Core OID balance) ⁽³⁾⁽⁶⁾	$	11,737	$	12,910	$	12,735	$	12,315	$	11,627	$	(1,173	)	$	110
Secured Debt		2,618		3,793		5,289		6,154		8,122		(1,174	)		(5,504	)
Deposits ⁽⁴⁾		139,382		137,718		135,642		132,964		127,014		1,663			12,368
Other Borrowings ⁽⁵⁾		5,044		6,307		9,462		14,427		16,567		(1,263	)		(11,523	)

Total Funding Sources (ex. Core OID balance) ⁽³⁾	$	158,781	$	160,728	$	163,128	$	165,860	$	163,330	$	(1,947)		$	(4,550	)
Interest Expense (ex. Core OID) ⁽³⁾		488		547		635		761		863		(59	)		(375	)

Net Financing Revenue (ex. Core OID) ⁽³⁾	$	1,556	$	1,382	$	1,312	$	1,209	$	1,063	$	174		$	493

Net Interest Margin (yield details)
Retail Auto Loan		6.70%		6.66%		6.57%		6.56%		6.48%		0.04%			0.22%
Retail Auto Loan (excl. hedge impacts)		6.92%		6.90%		6.83%		6.83%		6.77%		0.02%			0.15%
Auto Lease (net of dep)		11.67%		8.57%		7.82%		7.89%		4.10%		3.10%			7.57%
Dealer Floorplan		3.31%		3.17%		3.07%		3.02%		3.37%		0.13%			(0.06	)%
Other Dealer Loans		4.18%		4.36%		4.11%		4.04%		4.19%		(0.18	)%		(0.01	)%
Corporate Finance		5.37%		5.14%		5.69%		5.40%		5.64%		0.23%			(0.27	)%
Mortgage		2.80%		2.74%		2.74%		3.00%		3.15%		0.06%			(0.35	)%
Consumer Other		14.44%		14.95%		16.68%		17.77%		14.09%		(0.51	)%		0.35%
Cash and Cash Equivalents		0.10%		0.10%		0.10%		0.11%		0.12%		—%			(0.01	)%
Investment Securities and Other		1.63%		1.55%		1.70%		2.14%		2.47%		0.08%			(0.84	)%

Total Earning Assets		4.69%		4.44%		4.34%		4.35%		4.39%		0.25%			0.30%

Unsecured Debt (ex. Core OID & Core OID balance) ⁽³⁾⁽⁶⁾		5.33%		5.42%		5.45%		5.74%		6.11%		(0.09	)%		(0.78	)%
Secured Debt		4.44%		3.35%		3.07%		2.94%		2.64%		1.09%			1.80%
Deposits ⁽⁴⁾		0.77%		0.90%		1.08%		1.35%		1.72%		(0.13	)%		(0.95	)%
Other Borrowings⁽⁵⁾		2.81%		2.47%		2.18%		2.36%		2.25%		0.34%			0.56%


Total Funding Sources (ex. Core OID & Core OID balance) ⁽³⁾		1.23%		1.38%		1.55%		1.82%		2.13%		(0.15	)%		(0.90	)%

NIM (as reported)		3.55%		3.16%		2.90%		2.65%		2.40%		0.39%			1.15%

NIM (ex. Core OID & Core OID balance) ⁽³⁾		3.57%		3.18%		2.92%		2.67%		2.42%		0.39%			1.15%

(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) ‘Consumer Other’ consists of unsecured consumer lending from point-of-sale financing.

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

(4) Includes retail, brokered, and other deposits. Other includes sweep deposits and other deposits.

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

(6) Includes trust preferred securities.


2Q 2021 Preliminary Results		19

ALLY FINANCIAL INC.

ALLY BANK CONSUMER MORTGAGE HFI PORTFOLIOS (PERIOD-END)

($ in billions)


	QUARTERLY TRENDS

Mortgage Finance HFI Portfolio	2Q 21		1Q 21		4Q 20		3Q 20		2Q 20
Loan Value
Gross carry value	$	13.6	$	12.4	$	14.6	$	15.2	$	16.4
Net carry value	$	13.6	$	12.4	$	14.6	$	15.1	$	16.4

Estimated Pool Characteristics
% Second lien		0.0%		0.0%		0.0%		0.0%		0.0%
% Interest only		0.0%		0.0%		0.0%		0.0%		0.0%
% 30+ Day delinquent⁽¹⁾⁽²⁾		0.8%		0.8%		0.8%		1.3%		0.6%
% Low/No documentation		0.1%		0.2%		0.2%		0.2%		0.2%
% Non-primary residence		4.9%		4.9%		4.8%		4.7%		4.6%
Refreshed FICO⁽³⁾		776		775		776		776		774
Wtd. Avg. LTV/CLTV ⁽⁴⁾		58.8%		57.5%		60.1%		60.3%		60.4%

Corporate Other Legacy Mortgage HFI Portfolio
Loan Value
Gross carry value	$	0.4	$	0.5	$	0.5	$	0.9	$	1.0
Net carry value	$	0.4	$	0.4	$	0.5	$	0.9	$	1.0

Estimated Pool Characteristics
% Second lien		16.5%		18.0%		19.8%		12.6%		13.2%
% Interest only		0.1%		0.1%		0.1%		0.1%		0.1%
% 30+ Day delinquent⁽¹⁾⁽²⁾		6.3%		7.0%		7.1%		4.7%		4.0%
% Low/No documentation		23.1%		22.5%		22.2%		24.0%		23.4%
% Non-primary residence		3.2%		3.7%		3.6%		7.1%		6.9%
Refreshed FICO⁽³⁾		734		731		733		733		730
Wtd. Avg. LTV/CLTV ⁽⁴⁾		61.0%		62.2%		62.8%		59.2%		62.1%

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

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

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

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


2Q 2021 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 21			1Q 21			4Q 20			3Q 20			2Q 20			1Q 21			2Q 20
GAAP net income attributable to common shareholders		$	900		$	796		$	687		$	476		$	241		$	104		$	659

Weighted-average common shares outstanding - basic			370,412			375,229			376,081			375,658			375,051			(4,817	)		(4,639	)

Weighted-average common shares outstanding - diluted			373,029			377,529			378,424			377,011			375,762			(4,500	)		(2,733	)

Issued shares outstanding (period-end)			362,639			371,805			374,674			373,857			373,837			(9,166	)		(11,199	)

Net income per share - basic		$	2.43		$	2.12		$	1.83		$	1.27		$	0.64		$	0.31		$	1.79


Net income per share - diluted		$	2.41		$	2.11		$	1.82		$	1.26		$	0.64		$	0.30		$	1.77


Adjusted Earnings per Share (“Adjusted EPS”)
Numerator
GAAP net income attributable to common shareholders		$	900		$	796		$	687		$	476		$	241		$	104		$	659
Discontinued operations, net of tax			(1	)		—			—			—			1			(1	)		(2	)
Core OID			9			10			9			9			9			(0	)		1
Change in the fair value of equity securities			(19	)		(17	)		(111	)		(13	)		(90	)		(3	)		70
Core OID, repositioning & change in the fair value of equity securities tax (tax rate 21%)			(13	)		1			21			1			17			(14	)		(30	)
Repositioning			70			—			—			—			50			70			20
Significant discrete tax items			(78	)		—			—			—			—			(78	)		(78	)

Core net income attributable to common shareholders ⁽¹⁾		$	868		$	790		$	606		$	473		$	228		$	78		$	640
Denominator
Weighted-average common shares outstanding - diluted			373,029			377,529			378,424			377,011			375,762			(4,500	)		(2,733	)

Adjusted EPS ⁽³⁾		$	2.33		$	2.09		$	1.60		$	1.25		$	0.61		$	0.23		$	1.72

Original Issue Discount Amortization Expense
Core original issue discount (Core OID) amortization expense ⁽¹⁾		$	9		$	10		$	9		$	9		$	9		$	( 0	)	$	1
Other OID			3			3			3			3			4			—			(1	)

GAAP original issue discount amortization expense		$	12		$	12		$	13		$	12		$	12		$	( 0	)	$	(1	)


Outstanding Original Issue Discount Balance
Core outstanding original issue discount balance (Core OID balance) ⁽¹⁾		$	(952	)	$	(1,018	)	$	(1,027	)	$	(1,037	)	$	(1,046	)	$	66		$	94
Other outstanding OID balance			(32	)		(34	)		(37	)		(48	)		(46	)		3			14

GAAP outstanding original issue discount balance		$	(983	)	$	(1,052	)	$	(1,064	)	$	(1,084	)	$	(1,092	)	$	69		$	109


Net Financing Revenue (ex. Core OID)
GAAP net financing revenue	[A]	$	1,547		$	1,372		$	1,303		$	1,200		$	1,054		$	175		$	493
Core OID			9			10			9			9			9			(0	)		1

Net Financing Revenue (ex. Core OID)	[B]	$	1,556		$	1,382		$	1,312		$	1,209		$	1,063		$	175		$	494

Adjusted Other Revenue
GAAP Other Revenue	[C]	$	538		$	565		$	678		$	484		$	555		$	(27	)	$	(17	)
Repositioning			70			—			—			—			—			70			70
Change in the fair value of equity securities			(19	)		(17	)		(111	)		(13	)		(90	)		(3	)		70

Adjusted Other Revenue	[D]	$	588		$	548		$	567		$	471		$	465		$	40		$	123

Adjusted Noninterest Expense
GAAP Noninterest expense	[E]	$	1,075		$	943		$	1,023		$	905		$	985		$	132		$	90
Repositioning			—			—			—			—			(50	)		—			50

Adjusted Noninterest Expense	[F]	$	1,075		$	943		$	1,023		$	905		$	935		$	132		$	140

Core Pre-Tax, Pre-Provision Net Revenue (PPNR)
GAAP Pre-Tax, Pre-Provision Net Revenue (PPNR)	[A]+[C]+[E]	$	1,010		$	994		$	958		$	779		$	624		$	16		$	386
Core Pre-Tax, Pre-Provision Net Revenue (PPNR) ⁽¹⁾	[B]+[D]+[F]	$	1,070		$	987		$	856		$	775		$	593		$	83		$	477

(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.


2Q 2021 Preliminary Results		21

ALLY FINANCIAL INC.

ADJUSTED TANGIBLE BOOK PER SHARE RELATED INFORMATION

($ in billions, shares in thousands)


	QUARTERLY TRENDS															CHANGE VS.

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

Numerator
GAAP shareholder’s equity	$	17.5		$	14.6		$	14.7		$	14.1		$	13.8		$	2.9		$	3.7
Preferred equity		(2.3	)		—			—			—			—			(2.3	)		(2.3	)
GAAP common shareholder’s equity	$	15.2		$	14.6		$	14.7		$	14.1		$	13.8		$	0.6		$	1.4
Goodwill and identifiable intangibles, net of DTLs		(0.4	)		(0.4	)		(0.4	)		(0.4	)		(0.4	)		—			—

Tangible common equity ⁽¹⁾		14.8			14.2			14.3			13.7			13.4			0.6			1.4
Tax-effected Core OID balance (21% tax rate) ⁽¹⁾		(0.8	)		(0.8	)		(0.8	)		(0.8	)		(0.8	)		0.1			0.1
Adjusted tangible book value ⁽²⁾	$	14.1		$	13.4		$	13.5		$	12.9		$	12.6		$	0.6		$	1.5


Denominator
Issued shares outstanding (period-end, thousands)		362,639			371,805			374,674			373,857			373,837			(9,166	)		(11,199	)

GAAP shareholder’s equity per share	$	48.3		$	39.3		$	39.2		$	37.8		$	37.0		$	9.0		$	11.4
Preferred equity per share		(6.4	)		—			—			—			—			(6.4	)		(6.4	)
GAAP common shareholder’s equity per share	$	41.9		$	39.3		$	39.2		$	37.8		$	37.0		$	2.6		$	4.9
Goodwill and identifiable intangibles, net of DTLs per share		(1.0	)		(1.0	)		(1.0	)		(1.0	)		(1.0	)		—			—

Tangible common equity per share ⁽¹⁾		40.9			38.3			38.2			36.7			35.9			2.6			5.0
Tax-effected Core OID balance (21% tax rate) per share ⁽¹⁾		(2.1	)		(2.2	)		(2.2	)		(2.2	)		(2.2	)		0.1			0.1

Adjusted tangible book value per share ⁽²⁾	$	38.83		$	36.16		$	36.05		$	34.56		$	33.73		$	2.67		$	5.10

(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 2021 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 21			1Q 21			4Q 20			3Q 20			2Q 20			1Q 21			2Q 20
Numerator
GAAP net income attributable to common shareholders	$	900		$	796		$	687		$	476		$	241		$	104		$	659
Discontinued operations, net of tax		(1	)		—			—			—			1			(1	)		(2	)
Core OID		9			10			9			9			9			(0	)		1
Change in the fair value of equity securities		(19	)		(17	)		(111	)		(13	)		(90	)		(3	)		70
Core OID, repositioning & change in the fair value of equity securities tax (tax rate 21%)		(13	)		1			21			1			17			(14	)		(30	)
Repositioning		70			—			—			—			50			70			20
Significant discrete tax items		(78	)		—			—			—			—			(78	)		(78	)

Core net income attributable to common shareholders ⁽¹⁾	$	868		$	790		$	606		$	473		$	228		$	78		$	640

Denominator (average, $ billions)
GAAP shareholder’s equity	$	16.1		$	14.7		$	14.4		$	14.0		$	13.7		$	1.4		$	2.4
Preferred equity		(1.2	)		—			—			—			—			(1.2	)		(1.2	)
Goodwill & identifiable intangibles, net of deferred tax liabilities (“DTLs”)		(0.4	)		(0.4	)		(0.4	)		(0.4	)		(0.4	)		0.0			0.0

Tangible common equity ⁽¹⁾	$	14.5		$	14.3		$	14.0		$	13.6		$	13.3		$	0.3		$	1.3
Core OID balance		(1.0	)		(1.0	)		(1.0	)		(1.0	)		(1.1	)		0.0			0.1
Net deferred tax asset (“DTA”)		(0.6	)		(0.1	)		(0.1	)		(0.1	)		(0.2	)		(0.4	)		(0.4	)

Normalized common equity	$	13.0		$	13.1		$	12.9		$	12.4		$	12.0		$	(0.1	)	$	1.0
Core Return on Tangible Common Equity ⁽²⁾		26.7%			24.1%			18.7%			15.2%			7.6%

(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.

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..

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


2Q 2021 Preliminary Results		23

ALLY FINANCIAL INC.

ADJUSTED EFFICIENCY RATIO RELATED INFORMATION

($ in millions)


	QUARTERLY TREND															CHANGE VS.

Adjusted Efficiency Ratio Calculation	2Q 21			1Q 21			4Q 20			3Q 20			2Q 20			1Q 21			2Q 20
Numerator
GAAP Noninterest expense	$	1,075		$	943		$	1,023		$	905		$	985		$	132		$	90
Rep and warrant expense		—			—			(0	)		—			—			—			—
Insurance expense		(272	)		(253	)		(246	)		(268	)		(322	)		(19	)		50
Repositioning		—			—			—			—			(50	)		—			50

Adjusted noninterest expense for the efficiency ratio	$	803		$	690		$	777		$	637		$	613		$	113		$	190

Denominator
Total net revenue	$	2,085		$	1,937		$	1,981		$	1,684		$	1,609		$	148		$	476
Core OID		9			10			9			9			9			(0	)		1
Insurance revenue		(359	)		(394	)		(429	)		(346	)		(450	)		35			91
Repositioning		70			—			—			—			—			70			70

Adjusted net revenue for the efficiency ratio	$	1,805		$	1,553		$	1,561		$	1,347		$	1,168		$	252		$	637
Adjusted Efficiency Ratio ⁽¹⁾		44.5%			44.4%			49.8%			47.3%			52.5%

(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 2021 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 extends through December 31, 2021. Beginning on January 1, 2022, we will be 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 plan to phase 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-tax, 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.


2Q 2021 Preliminary Results		25