ALLY Ally Financial Inc

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Exhibit 99.1

 News release: IMMEDIATE RELEASE

 

Ally Financial Reports Second Quarter 2024 Financial Results

 

$0.86		9.3%		$257 million		$2.0 billion
GAAP EPS		RETURN ON COMMON EQUITY		PRE-TAX INCOME		GAAP TOTAL NET REVENUE
$0.97		14.0%		$299 million		$2.0 billion
ADJUSTED EPS1		CORE ROTCE1		CORE PRE-TAX INCOME1		ADJUSTED TOTAL NET REVENUE1

 

		•  Strong quarter over quarter improvement in net interest margin and earnings following 1Q 2024 trough   •  NIM ex. OID1 of 3.30% is up 14 bps quarter over quarter as deposit costs have stabilized; well-positioned for various rate scenarios   •  Common equity tier 1 ratio of 9.6% increased 18 bps quarter over quarter; executed first credit risk transfer transaction in 2Q   •  $4 billion of excess CET1 above required minimums; preliminary stress capital buffer of 2.6% up from 2.5%, effective October 1st
		•  3.7 million consumer auto applications and $9.8 billion of consumer auto origination volume   •  Retail auto originated yield1 of 10.59% with 44% of volume within highest credit quality tier   •  181 bps retail auto net charge-offs, down 46 bps quarter over quarter due to seasonal trends   •  Insurance written premiums of $344 million, up 15% year over year; solid momentum in P&C and F&I   •  $142 billion of retail deposits, down $3 billion quarter over quarter from seasonal tax outflows   •  61 consecutive quarters of retail deposit customer growth, up 54 thousand in 2Q; 3.2 million customers   •  1.2 million active credit cardholders; balanced approach to growth   •  Corporate Finance HFI portfolio of $9.7 billion; criticized and non-performing assets near historic lows
		“In the second quarter, Ally delivered strong financial and operating results. We continue to execute within our market leading franchises, creating value for our customers by embracing our ‘Do It Right’ culture,” said Chief Executive Officer, Michael Rhodes.   “The strength of our Dealer Financial Services franchise is evident in our scale. We decisioned 3.7 million consumer applications, a second quarter record, and originated nearly $10 billion retail loan and lease volume across the credit spectrum. Insurance written premiums of $344 million demonstrate our unique ability to provide comprehensive, all-in value to our dealer customers.   At Ally Bank, we have established a model of banking through transparency and trust with our over three million customers that hold $142 billion of retail deposits. Our differentiated, all-digital approach provides value that extends beyond rates proven by our 61st consecutive quarter of deposit customer growth and over one million engaged savings customers.   Ally has consistently demonstrated its commitment to our customers, employees, and communities through living out our purpose-driven ‘Do It Right’ culture of customer obsession and innovation – this will remain our blueprint for success in the years ahead. I’ve long admired Ally from a distance – I’m energized to lead this great company and l am looking forward to launching the next chapter of Ally’s evolution with my 11 thousand plus teammates.”

 

				Second Quarter 2024 Financial Results

															Increase / (Decrease) vs.
($ millions except per share data)			2Q 24				1Q 24				2Q 23				1Q 24				2Q 23
GAAP Net Income Attributable to Common Shareholders		$	266			$	129			$	301				106	%			(12	) %
Core Net Income Attributable to Common Shareholders1		$	299			$	139			$	291				116	%			3	%
GAAP Earnings per Common Share		$	0.86			$	0.42			$	0.99				105	%			(13	) %
Adjusted EPS1		$	0.97			$	0.45			$	0.96				115	%			1	%
Return on GAAP Shareholder’s Equity			9.3	%			4.5	%			10.8	%			105	%			(14	) %
Core ROTCE1			14.0	%			6.5	%			13.9	%			117	%			1	%
GAAP Common Shareholder’s Equity per Share		$	37.84			$	37.28			$	37.16				1	%			2	%
Adjusted Tangible Book Value per Share1		$	33.51			$	32.89			$	32.08				2	%			4	%
GAAP Total Net Revenue		$	2,000			$	1,986			$	2,079				1	%			(4	) %
Adjusted Total Net Revenue1		$	2,042			$	1,989			$	2,066				3	%			(1	) %

¹ 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), Adjusted Total Net Revenue, Core Pre-Tax Income, Core Net Income Attributable to Common Shareholders, Core OID, Core Return on Tangible Common Equity (Core ROTCE), Estimated Retail Auto Originated Yield, Tangible Common Equity, 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. Refer to the Definitions of Non-GAAP Financial Measures and Other Key Terms, and Reconciliation to GAAP later in this release.

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		Discussion of Second Quarter 2024  Results
Net income attributable to common shareholders was $266 million in the quarter, compared to $301 million in the second quarter of 2023. The decrease was driven by lower net financing revenue, higher provision for credit losses, and higher noninterest expenses.   Net financing revenue was $1.5 billion, down $78 million year over year primarily driven by higher funding costs, partially offset by the strength in retail auto loan pricing and continued expansion of earning asset yields.   Other revenue decreased $1 million year over year to $505 million including a $28 million decrease in fair value of equity securities in the quarter compared to a $25 million increase in the second quarter of 2023. Adjusted other revenueA, excluding the change in fair value of equity securities, of $533 million increased $52 million year over year, driven by momentum within Insurance and diversified fee revenue from SmartAuction and Passthrough platforms.   Net interest margin (“NIM”) of 3.27% decreased 11 bps year over year. Excluding Core OIDA, NIM of 3.30% was also down 11 bps year over year, due to higher funding costs, partially offset by continued strength in new origination yields.   Provision for credit losses increased $30 million year over year to $457 million, reflecting higher net charge-offs.   Noninterest expense increased $37 million year over year primarily driven by higher weather losses in Insurance and higher servicing expense within Auto.   A tax benefit of $37 million resulted from an effective tax rate of (14%) in the quarter driven by strong EV lease originations.

A	Represents a non-GAAP financial measure. Refer to the Definitions of Non-GAAP Financial Measures and Other Key Terms and Reconciliation to GAAP later in this press release.

 

		Second Quarter 2024 Financial  Results

														Increase/(Decrease) vs.
($ millions except per share data)		2Q 24				1Q 24				2Q 23				1Q 24				2Q 23
(a) Net Financing Revenue		$	1,495			$	1,456			$	1,573			$	39			$	(78)
Core OID1			14				13				12				1				2
Net Financing Revenue (excluding Core OID)1			1,509				1,469				1,585				40				(76)
(b) Other Revenue			505				530				506				(25)				(1)
Change in Fair Value of Equity Securities2			28				(11)				(25)				39				53
Adjusted Other Revenue1			533				519				481				14				52
(c) Provision for Credit Losses			457				507				427				(50)				30
(d) Noninterest Expense			1,286				1,308				1,249				(22)				37
Repositioning3			-				(10)				-				10				-
Noninterest Expense (excluding Repositioning)1			1,286				1,298				1,249				(12)				37
Pre-Tax Income (a+b-c-d)		$	257			$	171			$	403			$	86			$	(146)
Income Tax Expense (Benefit)			(37)				14				74				(51)				(111)
Net Loss from Discontinued Operations			-				-				-				-				-
Net Income		$	294			$	157			$	329			$	137			$	(35)
Preferred Dividends			28				28				28				-				-
Net Income Attributable to Common Shareholders		$	266			$	129			$	301			$	137			$	(35)
GAAP EPS (diluted)		$	0.86			$	0.42			$	0.99			$	0.44			$	(0.13)
Core OID, Net of Tax1			0.04				0.03				0.03				0.00				0.00
Change in Fair Value of Equity Securities, Net of Tax3			0.07				(0.03)				(0.06)				0.10				0.14
Repositioning, Discontinued Ops., and Other, Net of Tax3			-				0.02				-				(0.02)				-
Adjusted EPS1		$	0.97			$	0.45			$	0.96			$	0.52			$	0.01

 

(1)	Represents a non-GAAP financial measure. Refer to the Definitions of Non-GAAP Financial Measures and Other Key Terms and Reconciliation to GAAP later in this press release.

(2)

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

(3)	Contains non-GAAP financial measures and other financial measures. See pages 5 and 6 for definitions.

Note: Repositioning items represent costs associated with the FDIC Special Assessment in 1Q'24.

 

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		Pre-Tax Income by Segment

 

														Increase/(Decrease) vs.
($ millions)		2Q 24				1Q 24				2Q 23				1Q 24				2Q 23
Automotive Finance		$	407			$	322			$	501			$	85			$	(94)
Insurance			(42)				70				8				(112)				(50)
Dealer Financial Services		$	365			$	392			$	509			$	(27)			$	(144)
Corporate Finance			98				90				72				8				26
Mortgage Finance			27				25				21				2				6
Corporate and Other			(233)				(336)				(199)				103				(34)
Pre-Tax Income from Continuing Operations		$	257			$	171			$	403			$	86			$	(146)
Core OID1			14				13				12				1				2
Change in Fair Value of Equity Securities2,3			28				(11)				(25)				39				53
Repositioning and Other3			-				10				-				(10)				-
Core Pre-Tax Income1		$	299			$	183			$	390			$	116			$	(91)

 

 

(1)	Represents a non-GAAP financial measure. Refer to the Definitions of Non-GAAP Financial Measures and Other Key Terms and Reconciliation to GAAP later in this press release.

(2)	Change in fair value of equity securities primarily impacts the Insurance, Corporate Finance, and Corporate and Other segments. Reflects equity fair value adjustments which requires change in the fair value of equity securities to be recognized in current period net income.

(3)	Contains non-GAAP financial measures and other financial measures. See pages 5 and 6 for definitions.

 

		Discussion of Segment Results

Auto Finance Pre-tax income of $407 million was down $94 million year over year, primarily driven by higher net charge-offs and noninterest expense.   Net financing revenue of $1,314 million was down $35 million year over year, driven by elevated funding costs. Ally’s retail auto portfolio yield, excluding the impact from hedges, increased 99 bps year over year to 8.86% as the portfolio turns over and reflects higher originated yields from recent periods.   Provision for credit losses of $383 million increased $52 million year over year, driven by higher retail auto net charge-offs. The retail auto net charge-off rate was 1.81%.   Noninterest expense of $617 million was up $17 million year over year primarily driven by servicing-related expenses.   Consumer auto originations of $9.8 billion included $6.1 billion of used retail volume, or 62% of total originations, $2.8 billion of new retail volume, and $0.9 billion of leases. Estimated retail auto originated yieldB was 10.59% in the quarter with 44% of originations in the highest credit quality tier.   End-of-period auto earning assets increased $1.9 billion year over year from $115.4 billion to $117.3 billion. End-of-period consumer auto earning assets of $92.1 billion decreased $2.6 billion year over year, driven by retail auto loan sales in recent periods. End-of-period commercial earning assets of $25.2 billion were $4.5 billion higher year over year, driven by higher new vehicle inventory.   Insurance Pre-tax loss of $42 million was $50 million unfavorable year over year. Results reflect a $52 million decrease in the change in fair value of equity securities. Core pre-tax lossC of $14 million increased $2 million year over year, which was supported by $344 million of earned premiums in the quarter.   Insurance losses of $181 million were up $47 million year over year, driven by higher weather losses and higher GAP losses due to higher loan-to-values given normalization in used vehicle values.   Written premiums of $344 million, up 15% year over year, driven by growth in both P&C and F&I premiums.   Total investment income, excluding the change in fair value of equity securitiesD, was $52 million, up $22 million year over year driven by higher realized investment gains.

 

^BEstimated Retail Auto Originated Yield is a forward-looking non-GAAP financial measure determined by calculating the estimated average annualized yield for loans originated during the period. Refer to the Definitions of Non-GAAP Financial Measures and Other Key Terms and Reconciliation to GAAP later in this press release.

^CRepresents a non-GAAP financial measure. Refer to the Definitions of Non-GAAP Financial Measures and Other Key Terms and Reconciliation to GAAP later in this press release.

^DChange in the fair value of equity securities to be recognized in current period net income. Refer to the Definitions of Non-GAAP Financial Measures and Other Key Terms and Reconciliation to GAAP later in this press release.

 

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Corporate Finance Pre-tax income of $98 million was up $26 million year over year driven by higher net financing revenue and lower provision expense.   Net financing revenue increased $12 million year over year to $104 million primarily driven by higher income spreads and elevated fees from loan payoffs. Other revenue of $30 million was up $2 million year over year.   Provision expense of $3 million was down $12 million year over year primarily driven by prior period specific reserve build.   The held-for-investment loan portfolio of $9.7 billion is effectively all first lien. Loans secured by commercial real estate of $1.4B continue to perform well.   Mortgage Finance Pre-tax income of $27 million was up $6 million year over year, primarily driven by lower noninterest expense reflecting the benefit of the variable cost direct-to-consumer partnership model.   Net financing revenue and other revenue were both flat year over year at $53 million and $5 million, respectively.   Direct-to-consumer originations totaled $261 million in the quarter, predominantly held-for-sale.   Existing Ally Bank deposit customers accounted for more than 70% of the quarter’s direct-to-consumer origination volume, continuing to highlight the strong customer value proposition.

 

		Capital, Liquidity & Deposits

Capital Ally paid a $0.30 per share quarterly common dividend, which was unchanged year over year. Ally’s board of directors approved a $0.30 per share common dividend for the third quarter of 2024. Ally did not repurchase any shares on the open market during the quarter.   Ally’s common equity tier 1 (CET1) capital ratio was 9.6%, and risk weighed assets (RWA) decreased from $158.3 billion in the first quarter to $157.5 billion. Within the quarter, Ally closed a credit risk transfer transaction, which generated 11 bps of CET1 and reduced RWA on the $3 billion reference pool from 100% to 38%.   Liquidity & Funding Liquid cash and cash equivalentsE totaled $6.7 billion, down from $7.4 billion at the end of the first quarter. Highly liquid securities were $18.9 billion and unused pledged borrowing capacity at the FHLB and FRB was $12.2 billion and $26.5 billion, respectively. Total current available liquidityF was $64.3 billion, equal to 5.7x uninsured deposit balances.

Deposits represented 89% of Ally’s funding portfolio.   Deposits Retail deposits of $142.1 billion were up $3.1 billion year over year, and down $3.1 billion quarter over quarter driven by seasonal tax outflows. Total deposits were $152.2 billion and Ally maintained industry-leading customer retentionG at 96%.   The average retail portfolio deposit rate was 4.18%, up 50 bps year over year and down 7 bps quarter over quarter.   Ally Bank continues to demonstrate strong customer acquisition with 54 thousand net new deposit customers, now totaling 3.2 million customers, up 11% year over year. Millennials and younger customers continue to comprise the largest generation segment of new customers, accounting for 74% of new customers in the quarter. Approximately 10% or 323 thousand deposit customers maintained an Ally Invest, Ally Home or Ally Credit Card relationship.

 

 

^ECash & cash equivalents may include the restricted cash accumulation for retained notes maturing within the following 30 days and returned to Ally on the distribution date. See page 18 of the Financial F Supplement for more details.

^FTotal liquidity includes cash & cash equivalents, highly liquid securities and current unused borrowing capacity at the FHLB, and FRB Discount Window. See page 18 of the Financial Supplement for more G details.

^GSee definitions of non-GAAP financial measures and other key terms later in this document for more details.

 

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		Definitions of Non-GAAP  Financial Measures and Other Key Terms

Ally believes the non-GAAP financial measures defined here are important to the reader of the Consolidated Financial Statements, but these are supplemental to and not a substitute for GAAP measures. See Reconciliation to GAAP below for calculation methodology and details regarding each measure.

Adjusted earnings per share (Adjusted EPS) is a non-GAAP financial measure that adjusts GAAP EPS for revenue and expense items that are typically strategic in nature or that management otherwise does not view as reflecting the operating performance of the company. Management believes Adjusted EPS can help the reader better understand the operating performance of the core businesses and their ability to generate earnings. In the numerator of Adjusted EPS, GAAP net income attributable to common shareholders is adjusted for the following items: (1) excludes discontinued operations, net of tax, as Ally is primarily a domestic company and sales of international businesses and other discontinued operations in the past have significantly impacted GAAP EPS, (2) adds back the tax-effected non-cash Core OID, (3) adjusts for tax-effected repositioning and other which are primarily related to the extinguishment of high-cost legacy debt, strategic activities and significant other one-time items, (4) change in fair value of equity securities, (5) excludes significant discrete tax items that do not relate to the operating performance of the core businesses, and adjusts for preferred stock capital actions that have been taken by the company to normalize its capital structure, as applicable for respective periods. See page 6 for calculation methodology and details.

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

 

(1)

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

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

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 Rep and warrant expense, Insurance segment expense, and repositioning and other which are primarily related to the extinguishment of high-cost legacy debt, strategic activities and significant other one-time items, as applicable for respective periods. In the denominator, total net revenue is adjusted for Core OID and Insurance segment revenue. See Reconciliation to GAAP on page 7 for calculation methodology and details.

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, as applicable for respective periods.

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 Reconciliation to GAAP on page 6 for calculation methodology and details.

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. See page 7 for calculation methodology and details.

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 7 for calculation methodology and details.

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

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 6 for calculation methodology & details.

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

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

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

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

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

Adjusted Provision for Credit Losses is a non-GAAP financial measure that adjusts GAAP provision for credit losses for repositioning items. Management believes adjusted provision for credit losses is a helpful financial metric because it enables the reader to better understand the business’s expenses excluding nonrecurring items.

Estimated Retail Auto Originated Yield is a financial measure determined by calculating the estimated average annualized yield for loans originated during the period. At this time there currently is no comparable GAAP financial measure for Estimated Retail Auto Originated Yield and therefore this forecasted estimate of yield at the time of origination cannot be quantitatively reconciled to comparable GAAP information.

Net Charge-Off Ratios are annualized net charge-offs divided by average outstanding finance receivables and loans excluding loans measured at fair value and loans held-for-sale.

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

Customer retention rate is the annualized 3-month rolling average of 1 minus the monthly attrition rate; excludes escheatment.

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

Corporate and Other primarily consists of activity related to centralized corporate treasury activities such as management of the cash and corporate investment securities and loan portfolios, short- and long-term debt, retail and brokered deposit liabilities, derivative instruments, the amortization of the discount associated with new debt issuances and bond exchanges, and the residual impacts of our corporate FTP and treasury ALM activities. Corporate and Other also includes certain equity investments, the management of our legacy mortgage portfolio, and reclassifications and eliminations between the reportable operating segments. Subsequent to June 1, 2016, the revenue and expense activity associated with Ally Invest was included within the Corporate and Other segment. Subsequent to October 1, 2019, the revenue and expense activity associated with Ally Lending was included within the Corporate and Other segment. Ally Lending was moved to Assets of Operations Held for Sale on December 31, 2023. The sale of Ally Lending closed on March 1, 2024. Subsequent to December 1, 2021, the revenue and expense activity associated with Ally Credit Card was included within the Corporate and Other segment.

 

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

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.

 

		Reconciliation to GAAP

 

Adjusted Earnings per Share
Numerator ($ millions)				2Q 24				1Q 24				2Q 23
GAAP Net Income Attributable to Common Shareholders				$	266			$	129			$	301
Discontinued Operations, Net of Tax					-				-				-
Core OID					14				13				12
Repositioning and Other					-				10				-
Change in the Fair Value of Equity Securities					28				(11	)			(25	)
Tax on: Core OID & Change in Fair Value of Equity Securities (21% tax rate)					(9	)			(3	)			3
Core Net Income Attributable to Common Shareholders		[a]		$	299			$	139			$	291
Denominator
Weighted-Average Common Shares Outstanding - (Diluted, thousands)		[b]			309,886				308,421				304,646
Adjusted EPS		[a] ÷ [b]		$	0.97			$	0.45			$	0.96
Core Return on Tangible Common Equity (ROTCE)
Numerator ($ millions)				2Q 24				1Q 24				2Q 23
GAAP Net Income Attributable to Common Shareholders				$	266			$	129			$	301
Discontinued Operations, Net of Tax					-				-				-
Core OID					14				13				12
Repositioning and Other					-				10				-
Change in Fair Value of Equity Securities					28				(11	)			(25	)
Tax on: Core OID & Change in Fair Value of Equity Securities (21% tax rate)					(9	)			(3	)			3
Core Net Income Attributable to Common Shareholders		[a]		$	299			$	139			$	291
Denominator (Average, $ millions)
GAAP Shareholder’s Equity				$	13,754			$	13,712			$	13,455
Preferred Equity					(2,324	)			(2,324	)			(2,324	)
GAAP Common Shareholder’s Equity				$	11,430				11,388			$	11,131
Goodwill & Identifiable Intangibles, Net of Deferred Tax Liabilities (DTLs)					(717	)			(723	)			(891	)
Tangible Common Equity				$	10,713			$	10,664			$	10,240
Core OID Balance					(773	)			(786	)			(824	)
Net Deferred Tax Asset (DTA)					(1,388	)			(1,278	)			(1,060	)
Normalized Common Equity		[b]		$	8,553			$	8,600			$	8,357
Core Return on Tangible Common Equity		[a] ÷ [b]			14.0	%			6.5	%			13.9	%

 

6

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Adjusted Tangible Book Value per Share
Numerator ($ millions)						2Q 24				1Q 24				2Q 23
GAAP Shareholder’s Equity						$	13,851			$	13,657			$	13,532
Preferred Equity							(2,324	)			(2,324	)			(2,324	)
GAAP Common Shareholder’s Equity						$	11,527			$	11,333			$	11,208
Goodwill and Identifiable Intangible Assets, Net of DTLs							(713	)			(720	)			(887	)
Tangible Common Equity							10,814				10,613				10,321
Tax-effected Core OID Balance (21% tax rate)							(605	)			(616	)			(646	)
Adjusted Tangible Book Value			[a]			$	10,209			$	9,997			$	9,675
Denominator
Issued Shares Outstanding (period-end, thousands)		[b]				304,656				303,978				301,619
Metric
GAAP Common Shareholder’s Equity per Share						$	37.84			$	37.28			$	37.16
Goodwill and Identifiable Intangible Assets, Net of DTLs per Share							(2.34	)			(2.37	)			(2.94	)
Tangible Common Equity per Share						$	35.50			$	34.91			$	34.22
Tax-effected Core OID Balance (21% tax rate) per Share							(1.99	)			(2.03	)			(2.14	)
Adjusted Tangible Book Value per Share			[a] ÷ [b]			$	33.51			$	32.89			$	32.08
Adjusted Efficiency Ratio
Numerator ($ millions)						2Q 24				1Q 24				2Q 23
GAAP Noninterest Expense						$	1,286			$	1,308			$	1,249
Insurance Expense							(410	)			(343	)			(358	)
Repositioning and Other							-				(10	)			-
Adjusted Noninterest Expense for Adjusted Efficiency Ratio			[a]			$	876			$	955			$	891
Denominator ($ millions)
Total Net Revenue						$	2,000			$	1,986			$	2,079
Core OID							14				13				12
Insurance Revenue							(368	)			(413	)			(366	)
Adjusted Net Revenue for Adjusted Efficiency Ratio			[b]			$	1,646			$	1,586			$	1,725
Adjusted Efficiency Ratio			[a] ÷ [b]				53.2	%			60.2	%			51.7	%
Original Issue Discount Amortization Expense ($ millions)
						2Q 24				1Q 24				2Q 23
GAAP Original Issue Discount Amortization Expense						$	17			$	17			$	15
Other OID							(3	)			(3	)			(3	)
Core Original Issue Discount (Core OID) Amortization Expense						$	14			$	13			$	12
Outstanding Original Issue Discount Balance ($ millions)
						2Q 24				1Q 24				2Q 23
GAAP Outstanding Original Issue Discount Balance						$	(797	)		$	(815	)		$	(863	)
Other Outstanding OID Balance							31				35				45
Core Outstanding Original Issue Discount Balance (Core OID Balance)						$	(766	)		$	(779	)		$	(818	)

 

7

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($ millions)
Net Financing Revenue (Excluding Core OID)
						2Q 24				1Q 24				2Q 23
GAAP Net Financing Revenue			[w]			$	1,495			$	1,456			$	1,573
Core OID							14				13				12
Net Financing Revenue (Excluding Core OID)			[a]			$	1,509			$	1,469			$	1,585
Adjusted Other Revenue
						2Q 24				1Q 24				2Q 23
GAAP Other Revenue			[x]			$	505			$	530			$	506
Change in Fair Value of Equity Securities							28				(11	)			(25	)
Adjusted Other Revenue			[b]			$	533			$	519			$	481
Adjusted Total Net Revenue
						2Q 24				1Q 24				2Q 23
Adjusted Total Net Revenue			[a]+[b]			$	2,042			$	1,989			$	2,066
Adjusted Provision for Credit Losses
						2Q 24				1Q 24				2Q 23
GAAP Provision for Credit Losses			[y]			$	457			$	507			$	427
Adjusted Provision for Credit Losses			[c]			$	457			$	507			$	427
Adjusted NIE (Excluding Repositioning)
						2Q 24				1Q 24				2Q 23
GAAP Noninterest Expense			[z]			$	1,286			$	1,308			$	1,249
Repositioning							-				(10	)			-
Adjusted NIE (Excluding Repositioning)			[d]			$	1,286			$	1,298			$	1,249
Core Pre-Tax Income
						2Q 24				1Q 24				2Q 23
Pre-Tax Income			[w]+[x]-[y]-[z]			$	257			$	171			$	403
Core Pre-Tax Income			[a]+[b]-[c]-[d]			$	299			$	183			$	390

 

Insurance Non-GAAP Walk to Core Pre-Tax Income
		2Q 2024												2Q 2023
($ millions)    Insurance			GAAP				Change in the fair value of equity securities				Non-GAAP1				GAAP				Change in the fair value of equity securities				Non-GAAP1
Premiums, Service Revenue Earned and Other		$	344			$	-			$	344			$	312			$	-			$	312
Losses and Loss Adjustment Expenses			181				-				181				134				-				134
Acquisition and Underwriting Expenses			229				-				229				224				-				224
Investment Income and Other			24				28				52				54				(24	)			30
Pre-Tax Income from Continuing Operations		$	(42	)		$	28			$	(14	)		$	8			$	(24	)		$	(16	)

¹Non-GAAP line items walk to Core Pre-Tax Income, a non-GAAP financial measure that adjusts Pre-Tax Income.

 

8

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		Additional Financial Information

For additional financial information, the second quarter 2024 earnings presentation and financial supplement are available in the Events & Presentations section of Ally’s Investor Relations Website at http://www.ally.com/about/investor/events-presentations/.

About Ally Financial Inc.

Ally Financial Inc. (NYSE: ALLY) is a financial services company with the nation’s largest all-digital bank and an industry-leading auto financing business, driven by a mission to “Do It Right” and be a relentless ally for customers and communities. The company serves approximately 11 million customers through a full range of online banking services (including deposits, mortgage, and credit card products) and securities brokerage and investment advisory services. The company also includes a robust corporate finance business that offers capital for equity sponsors and middle-market companies, as well as auto financing and insurance offerings. For more information, please visit www.ally.com.

For more information and disclosures about Ally, visit https://www.ally.com/#disclosures.

For further images and news on Ally, please visit http://media.ally.com.

Forward-Looking Statements

This earnings release 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 release or related communication.

This earnings release 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 performance 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, 2023, 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 earnings release and related communications contain specifically identified non-GAAP financial measures, which supplement the results that are reported according to 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 release.

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.

 

Contacts:
Sean Leary		Peter Gilchrist
Ally Investor Relations		Ally Communications (Media)
704-444-4830		704-644-6299
sean.leary@ally.com		peter.gilchrist@ally.com

 

9

Exhibit 99.2

 

Ally Financial Inc. 2Q 2024 Earnings Review July 17, 2024 Contact Ally Investor Relations at (866) 710-4623 or investor.relations@ally.com

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2Q 2024 Preliminary Results Forward-Looking Statements and Additional Information This presentation 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 presentation 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 performance 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, 2023, 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 presentation 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. 2

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2Q 2024 Preliminary Results GAAP and Core Results: Quarterly Quarterly Trend ($ millions, except per share data) 2Q 24 1Q 24 4Q 23 3Q 23 2Q 23 GAAP net income attributable to common shareholders (NIAC) $266 $129 $49 $269 $301 Core net income attributable to common shareholders (1)(2) $299 $139 $137 $252 $291 GAAP earnings per common share (EPS)(diluted, NIAC) $0.86 $0.42 $0.16 $0.88 $0.99 Adjusted EPS (1)(2) $0.97 $0.45 $0.45 $0.83 $0.96 Return on GAAP common shareholders’ equity 9.3% 4.5% 1.8% 9.9% 10.8% Core ROTCE (1)(2) 14.0% 6.5% 6.9% 12.9% 13.9% GAAP common shareholders’ equity per share $37.84 $37.28 $37.83 $34.81 $37.16 Adjusted tangible book value per share (Adjusted TBVPS) (1)(2) $33.51 $32.89 $33.36 $29.79 $32.08 Efficiency ratio 64.3% 65.9% 68.5% 62.6% 60.1% Adjusted efficiency ratio (1)(2) 53.2% 60.2% 55.7% 52.1% 51.7% GAAP total net revenue $2,000 $1,986 $2,067 $1,968 $2,079 Adjusted total net revenue (1)(2) $2,042 $1,989 $2,006 $2,036 $2,066 Effective tax rate -14.4% 8.2% -20.3% -29.8% 18.4% (1) The following are non-GAAP financial measures which Ally believes are important to the reader of the Consolidated Financial Statements, but which are supplemental to and not a substitute for GAAP measures: Accelerated issuance expense (Accelerated OID), Adjusted earnings per share (Adjusted EPS), Adjusted efficiency ratio, Adjusted noninterest expense, Adjusted other revenue, Adjusted tangible book value per share (Adjusted TBVPS), Adjusted total net revenue, Core net income attributable to common shareholders, Core original issue discount (Core OID) amortization expense, Core outstanding original issue discount balance (Core OID balance), Core pre-tax income, Core return on tangible common equity (Core ROTCE), Investment income and other (adjusted), Net financing revenue (excluding Core OID), Net interest margin (excluding Core OID), and Tangible Common Equity. These measures are used by management, and we believe are useful to investors in assessing the company’s operating performance and capital. Refer to the Definitions of Non-GAAP Financial Measures and Other Key Terms, and Reconciliation to GAAP later in this document. (2) Non-GAAP financial measure – see pages 27 – 29 for definitions. 3

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2Q 2024 Preliminary Results Purpose-Driven Culture Powered by our “LEAD” core values and “Do it Right” approach L ook externally E xecute with excellence A ct with professionalism D eliver results Customers Communities Employees “Do It Right” culture of Impact the communities Invest in our people and customer obsession in which we live and work culture to drive purpose 4

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2Q 2024 Preliminary Results Dealer Financial Services Comprehensive product suite with high-tech, high-touch approach Auto Finance Insurance Consumer Lending Commercial Lending SmartAuction & Commercial P&C Consumer F&I Retail, Lease, Floorplan, Dealer Passthrough Inventory insurance, VSC, GAP and other Direct-to-Consumer loans Specialty products Garage coverage products $92B Assets $25B Assets Capital light and 4K P&C Dealers | 2K F&I Dealers 3.8M Consumers 3K Active dealers diversified fee revenue Continuing to leverage synergies with auto The largest bank auto finance franchise in the U.S.(1) 2014 2024 4.5K Ally teammates Dealer Relationships 15.6K 22.0K ~1K related tocollections Consumer Applications 9.1M 14M+ ~600 underwriters with an Approval Automation 30% 74% average tenure of 12+ years % Used Originations 29% 65% Partnering with those evolving the industry Originated Spread(2) 4.7% 6.4% Note: Consumer applications represents estimated full-year results See page 31 for definitions and details. 5

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2Q 2024 Preliminary Results Ally Bank Largest, all-digital, direct U.S. bank with market leading deposits franchise Deposits Customers 1.2M Deposits | Engaged(5) 938K “Best Online Bank” list by MONEY® Magazine(1) 649K 3.2M Deposit customers | 96% customer retention(2) 63K 79K 129K $142.1B Retail deposit balances | 92% FDIC Insured(3) 3.2M 2.7M 90% Customer satisfaction rate(4) 2.3M 1.6M 1.2M 1.2M Savings customers engaged with core products(5) 0.9M 10% of Depositors with Invest, Home or Card relationship 2014 2016 2018 2020 2022 2Q24 A relentless Ally for our customers offering differentiated & frictionless experiences Invest Home Card Corp. Finance Seamless money Digital end-to-end Digital-first product with Diversified revenue with 25 movement with deposits customer experience an accretive return profile years of steady returns 80%+ of new accounts from 70%+ of DTC originations from Floating rate asset with depositors existing depositors attractive risk adj. margins 34% 2Q Return on Equity $13B of deposit balances held New originations 1.2M active cardholders; ~100% First lien position by invest customers predominantly held-for-sale $2.0B of outstanding balances See page 31 for definitions and details. 6

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2Q 2024 Preliminary Results 2Q 2024 Quarterly Highlights $0.86 |$0.97 9.3% |14.0% $2.0B |$2.0B 3.30% 10.59% GAAP Adjusted Return on Core GAAP Adj. Total NIM Est. Retail EPS EPS(1) Common Equity RoTCE(1) Net Revenue Net Revenue(1) (ex. OID)(2) Originated Yield(3) 2Q Financial Highlights • Strong quarter over quarter improvement in net interest margin and earnings following 1Q 2024 trough • NIM ex. OID(2) of 3.30% is up 14bps quarter over quarter as deposit costs have stabilized; well-positioned for various rate scenarios • Common equity tier 1 ratio of 9.6% increased 18bps quarter over quarter; executed first credit risk transfer transaction in 2Q • $4 billion of excess CET1 above required minimums; preliminary stress capital buffer of 2.6% up from 2.5%, effective October 1st 2Q Operational Highlights Dealer • 3.7 million consumer auto applications and $9.8 billion of consumer auto origination volume Financial • Retail auto originated yield(3) of 10.59% with 44% of volume within highest credit quality tier Services • 181bps retail auto net charge-offs, down 46bps quarter over quarter due to seasonal trends • Insurance written premiums of $344 million, up 15% year over year; solid momentum in P&C and F&I Consumer & • $142 billion of retail deposits, down $3 billion quarter over quarter from seasonal tax outflows • 61 consecutive quarters of retail deposit customer growth, up 54 thousand in 2Q; 3.2 million customers Commercial • 1.2 million active credit cardholders; balanced approach to growth Banking(4) • Corporate Finance HFI portfolio of $9.7 billion; criticized and non-performing assets near historic lows (1) Non-GAAP financial measure. See pages 27 – 29 for definitions. (2) Calculated using a Non-GAAP financial measure. See pages 27 – 29 for definitions. (3) Estimated Retail Auto Originated Yield is a forward-looking financial measure. See page 30 for details. (4) Consumer and Commercial Banking activity is within ‘Corporate and Other’ and ‘Corporate Finance’. Note: Ally Bank, Member FDIC and Equal Housing Lender, which offers mortgage lending, and a variety of deposit and other banking products, a consumer credit card business, a corporate finance business for equity sponsors and middle-market companies. Additionally, we offer securities-brokerage and investment advisory services through Ally Invest. 7

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2Q 2024 Preliminary Results 2Q 2024 Financial Results Consolidated Income Statement—Quarterly Results Increase / (Decrease) vs. ($ millions; except per share data) 2Q 24 1Q 24 2Q 23 1Q 24 2Q 23 Net financing revenue $1,495 $1,456 $1,573 $39 $(78) Core OID (1) 14 13 12 1 2 Net financing revenue (ex. Core OID) (1) 1,509 1,469 1,585 40 (76) Other revenue $505 $530 $506 $(25) $(1) Change in fair value of equity securities (2) 28 (11) (25) 39 53 Adjusted other revenue (1) 533 519 481 14 52 Provision for credit losses $457 $507 $427 $(50) $30 Memo: Net charge-offs 435 539 399 (104) 36 Memo: Provision build / (release) 22 (32) 28 54 (6) Adjusted provision for credit losses (1) 457 507 427 (50) 30 Noninterest expense $1,286 $1,308 $1,249 $(22) $37 Repositioning Items (2) - (10)—10 -Adjusted noninterest expense (1) 1,286 1,298 1,249 (12) 37 Pre-tax income $257 $171 $403 $86 $(146) Income tax expense / (benefit) Includes $92M in EV lease tax credits (37) 14 74 (51) (111) Net income (loss) from discontinued operations - — —Net income $294 $157 $329 $137 $(35) Preferred dividends 28 28 28 —Net income attributable to common shareholders $266 $129 $301 $137 $(35) GAAP EPS (diluted) $0.86 $0.42 $0.99 $0.44 $(0.13) Core OID, net of tax (1) 0.04 0.03 0.03 0.00 0.00 Change in fair value of equity securities, net of tax (2) 0.07 (0.03) (0.06) 0.10 0.14 Repositioning, discontinued ops., and other, net of tax (2) - 0.02—(0.02)—Adjusted EPS (1) $0.97 $0.45 $0.96 $0.52 $0.01 (1) Non-GAAP financial measure. See pages 27 – 29 for definitions. (2) Contains Non-GAAP financial measures and other financial measures. See pages 27 – 29 for definitions. Note: Repositioning items represent FDIC special assessment fee in 1Q ’24 8

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2Q 2024 Preliminary Results Balance Sheet and Net Interest Margin 2Q ‘24 1Q ‘24 2Q ‘23 Average Average Average Balance Yield Balance Yield Balance Yield Retail Auto Loans (ex. hedge) $83,427 8.86% $84,056 8.65% $84,097 7.87% Memo: Impact from hedges 0.33% 0.42% 0.94% Retail Auto Loans (inc. hedge) $83,427 9.19% $84,056 9.07% $84,097 8.81% Auto Leases (net of depreciation) 8,619 7.28% 8,955 6.85% 10,110 7.60% Commercial Auto 24,424 7.12% 23,172 7.12% 19,709 6.94% Corporate Finance 10,079 10.06% 10,937 9.88% 10,240 9.15% Mortgage(1) 18,302 3.26% 18,578 3.25% 19,325 3.22% Consumer Other—Ally Lending(2) — 1,274 8.77% 2,114 9.99% Consumer Other—Ally Credit Card 2,001 21.59% 1,975 21.61% 1,701 21.88% Cash and Cash Equivalents 7,311 4.87% 7,709 5.04% 7,401 4.70% Investment Securities & Other(3) 29,542 3.66% 30,274 3.60% 31,958 3.17% Earning Assets $183,705 7.36% $ 186,930 7.27% $ 186,655 6.99% Total Loans and Leases (3) 147,160 8.22% 149,281 8.12% 147,717 7.93% Deposits(4) $152,412 4.21% $155,352 4.28% $152,382 3.74% Unsecured Debt 10,280 7.23% 10,504 7.16% 10,618 6.27% Secured Debt 1,227 6.08% 1,409 5.74% 2,879 5.61% Other Borrowings(5) 7,114 3.86% 7,122 3.63% 7,592 3.00% Funding Sources $171,033 4.39% $174,387 4.44% $173,471 3.89% NIM (as reported) 3.27% 3.13% 3.38% Core OID(6) $773 7.19% $786 6.80% $824 5.77% NIM (ex. Core OID)(6) 3.30% 3.16% 3.41% (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 lending from point-of-sale financing. Moved to Assets of Operations Held for Sale on 12/31/23. Sale of Ally Lending closed on 03/01/24. (3) Includes Community Reinvestment Act and other held-for-sale (HFS) loans. (4) Includes retail, brokered, and other deposits (inclusive of sweep deposits, mortgage escrow and other deposits). (5) Includes FHLB borrowings and Repurchase Agreements. (6) Calculated using a Non-GAAP financial measure. See pages 27 – 29 for definitions. 9

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2Q 2024 Preliminary Results Diversified Consumer Deposits Franchise 15-year journey establishing ‘a brand that matters’ Ally Retail Deposits by Vintage $ in billions $160 $140 $120 $100 $80 $60 $40 $20—Pre-2009 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 Customers <0.4M 0.9M 2.0M 3.2M 2Q Retail Deposit Highlights 3.2M $142B 92% 96% FDIC Insured(1) Customer Customers Retail Balances (2) +54K customers in 2Q retention See page 31 for footnotes. 10

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2Q 2024 Preliminary Results Capital • 2Q ‘24 CET1 ratio of 9.6% and TCE / TA ratio of 5.6% (1) Capital Ratios and Risk-Weighted Assets ($ billions) • $4B of CET1 capital above FRB requirement of 7.0% 12.7% Total Capital (Regulatory Minimum + SCB) 12.5% 12.5% 12.4% 12.5% Ratio 10.7% 10.7% 10.8% 10.8% 11.0% Tier 1 Ratio • Direct issuance of $330M credit linked notes in 2Q on $3B 9.3% 9.3% 9.4% 9.4% 9.6% CET1 Ratio reference pool of prime retail auto loans – Generated 11bps of CET1 benefit in 2Q; benefit amortizes over $159 $161 $162 Risk $158 $157 Weighted time as the loans pay down Assets • Preliminary SCB of 2.6% effective Oct. 1; continue to maintain buffer above required minimum – Continue to maintain 9.0% internal operating target 2Q 23 3Q 23 4Q 23 1Q 24 2Q 24 • Announced 3Q ’24 common dividend of $0.30 per share Note: 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 30. Adjusted Tangible Book Value per Share(1) Adjusted $45 $47 TBV/Share $42 ex. OCI(1) $13 OCI $10 $13 Impact(2) $39 $34 $34 $32 $32 $34 Adjusted $27 $28 TBV/Share(1) $24 $26 $21 2Q 14 2Q 15 2Q 16 2Q 17 2Q 18 2Q 19 2Q 20 2Q 21 2Q 22 2Q 23 2Q 24 End of Period Shares Outstanding 480M 482M 484M 452M 426M 393M 374M 363M 313M 302M 305M (1) Contains a Non-GAAP financial measure. See pages 27 – 29 for definitions. (2) Prior period OCI impacts are not material to Adjusted Tangible Book Value per Share and therefore not shown. 11

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2Q 2024 Preliminary Results Capital Optimization Long history and experience in securitization, established infrastructure and technology enabled the successful issuance of Ally’s inaugural credit risk transfer transaction Generates 11bps of CET 1 benefit in 2Q and introduces another lever for capital management Ally Bank Capital Efficiency: Reduces RWA on the $3B reference pool from 100% to 38% Credit Linked • Structure: Ally sold the mezzanine tranche while retaining senior and first loss tranches Notes Incremental interest issuance • expense associated with $330M debt (ABCLN 2024-A) $330M CLNs • Collateral: Pool contains high credit quality retail auto loans (WA FICO of 749) 7.18% coupon 1.59 Yr. WAL • Loans remain on balance sheet and Ally retains all of the economics • Capital benefit amortizes as the pool of loans pay down Risk weighted assets on $3 billion reference pool decreased from 100% to 38% Reference Portfolio Senior 87.5% (20% RWA) $2.6B Retained by Ally $3.0B Prime Auto Loans Mezzanine | $330M 11% (0% RWA) Credit Linked Notes Investor First Loss | $45M 1.5% (1250% RWA) Retained by Ally Cash 20% RWA Collateral RWA from 100% to 38% Account Proceeds from the notes were deposited in a cash collateral account with AA-bank that earns interest 12

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2Q 2024 Preliminary Results Asset Quality: Key Metrics Net Charge-Off Activity(1) Consolidated Net Charge-Offs (NCOs)(1) ($ millions) 2Q 23 3Q 23 4Q 23 1Q 24 2Q 24 1.77% 1.55% Retail Auto $277 $393 $470 $477 $378 1.31% Annualized Commercial Auto 4—19 1 (4) $623 1.26% NCO Rate 1.16% Mortgage Finance — — -$539 Corporate Finance 56 (3) 48 (1) -$456 $435 NCOs ($M) $399 Ally Lending 27 29 36—-Ally Credit Card 36 39 52 62 62 Corp/Other (2) (1) (2) (2)—(1) 2Q 23 3Q 23 4Q 23 1Q 24 2Q 24 Total $399 $456 $623 $539 $435 Note: Ratios exclude loans measured at fair value and loans held-for-sale ex. Ally Lending (4Q’23). (2) Corp/Other includes legacy Mortgage HFI portfolio. See page 30 for definition. Retail Auto Net Charge-Offs (NCOs)(1) Retail Auto Delinquencies 4.42% 30+ DPD 4.33% Delinquency 2.27% Rate 2.21% 3.85% 3.88% 3.60% 60+ DPD 1.23% 1.26% Delinquency 1.85% Annualized 1.81% Rate $470 $477 NCO Rate 1.10% 1.03% 0.94% $393 $1,049 60+ 1.32% $378 NCOs ($M) $1,037 Delinquent $878 $915 Contracts $796 ($M) $277 2Q 23 3Q 23 4Q 23 1Q 24 2Q 24 2Q 23 3Q 23 4Q 23 1Q 24 2Q 24 13 (1) Excludes write-downs from retail auto loan sales (4Q’23 & 1Q’24) and Ally Lending sale (4Q’23). Notes: [1] Includes accruing contracts only [2] Days Past Due (“DPD”).

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2Q 2024 Preliminary Results Asset Quality: Coverage and Reserves • Retail auto coverage rate of 3.65% and consolidated coverage rate of 2.57% – Consolidated coverage and Retail Auto coverage rates flat QoQ; no change to overall macroeconomic outlook • Retail auto coverage levels ~30 basis points higher than CECL Day 1 – Evolution of portfolio mix shift over time (↓ new, ↑ used); base case assumption of flat coverage while continuing to monitor and assess loss trends and the macroeconomic environment • Corporate Finance had no new non-performing loans or charge-offs in 2Q – Corporate Finance portfolio remains healthy with historically low levels of criticized and non-accrual loans Consolidated Coverage Retail Auto Coverage ($ billions) ($ billions) 2.72% 2.73% 3.62% 3.62% 3.65% 3.65% 3.65% Reserve (%) 2.57% 2.57% 2.57% Reserve (%) 3.34% $3.8 $3.8 $3.1 $3.1 $3.1 $3.1 $3.1 Reserve ($) 2.03% $3.6 $3.6 $3.6 Reserve ($) $2.4 $2.6 CECL 2Q 23 3Q 23 4Q 23 1Q 24 2Q 24 CECL 2Q 23 3Q 23 4Q 23 1Q 24 2Q 24 Day 1 Day 1 Note: Coverage rate calculations exclude fair value adjustment for loans in hedge accounting relationships. Note: Coverage rate calculations exclude fair value adjustment for loans in hedge accounting relationships. 14

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2Q 2024 Preliminary Results Retail Auto Credit Vintage Dynamics Peak loss timing of 2022 vintage is key driver of 1H 2024 net charge-offs • 2Q Retail NCO rate of 1.81%, in-line with recent guidance • Front-book performing in line with expectations while back-book continues to pressure near-term NCOs – 2023 vintage continues to perform favorably versus the 2022 vintage in 30+ day delinquencies at same months on book • 2022 vintage drove more than 40% of 1H 2024 losses and will represent a smaller contribution going forward – Shift up-tier in credit beginning in April 2023 will increasingly benefit portfolio charge-offs as newer vintages make up a growing share of the portfolio • End of period used vehicle values ↓ 3% year-to-date; expect additional 2% decline in 2H’24 (FY ↓ 5%) Daily Average 30+ Day DQs by Vintage(1) Retail NCO Composition by Vintage 2022 | 2023 2.95% 3.65% 3.30% MO. 18 2.54% MO. 15 Months on Book 58% (2) 64% End of Period 30+ Day DQs by Vintage 3.76% 75% All Other 2022 | 2023 85% Vintages 2.84% 3.51% 2.56% MO. 18 42% 36% 25% MO. 15 15% 2022 Vintage 1H’24 2H’24 1H’25 2H’25 Months on Book (1) Includes accruing contracts only; daily average to eliminate volatility associated with a month closing on a weekend vs weekday. 15 (2) Includes accruing contracts only.

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2Q 2024 Preliminary Results EV Originations and TaxRate Impact Recent momentum in electric vehicle lease contracts Consumer Auto EV Originations by Product Lease EV Originations by Vehicle Type $1,005M Virtually all battery electric lease $639M contracts include residual guarantees Retail $722M 25% Used $417M $557M 11% Retail $474M 28% New Battery 83% $347M $230M Electric 33% 14% 65% 36% $174M $175M 36% 26% 64% Lease 14% 27% 58% 100% 100% 99% Plug-in 50% 37% 41% 35% 17% Hybrid 2Q 23 3Q 23 4Q 23 1Q 24 2Q 24 2Q 23 3Q 23 4Q 23 1Q 24 2Q 24 Ally uses ‘flow-through’ method accounting for EV lease credits Impact of EV Lease Relative to ICE • EV credit is recognized at time of origination as a tax benefit (Flow-Through Method) – Day 1 tax benefit is offset by lower net financing revenue over the Year 1 Year 2 Year 3 Full-Life life of the lease Net Fin. Rev. ($2.5K) ($2.5K) ($2.5K) ($7.5K) ? Tax credit is passed onto customer through lower monthly payment vs. an ICE lease contract ICE lease Tax Benefit $6.5K $0.5K $0.5K $7.5K • Lifetime economics between EV lease and contracts are unchanged Net Income $4.0K ($2.0K) ($2.0K) $0 – Timing of income recognition and geography within P&L differ Illustrative example of a single 36-month EV lease contract under flow-through method of accounting with $7,500 tax credit and 21% tax rate, as compared to a traditional internal combustion engine (ICE) lease contract. 16

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2Q 2024 Preliminary Results Auto Finance • Auto pre-tax income of $407 million Increase / (Decrease) vs. – Pre-tax income down YoY, driven by elevated credit losses from Key Financials ($ millions) 2Q 24 1Q 24 2Q 23 back-book performance and higher noninterest expense Net financing revenue $1,314 $- $(35) Total other revenue 93 (4) 10 – Provision expense up YoY, primarily driven by loss content from 2022 vintage as those loans hit peak-loss timing Total net revenue $1,407 $(4) $(25) Provision for credit losses 383 (65) 52 • Robust application volume and selective underwriting Noninterest expense (1) 617 (24) 17 in an accommodative origination environment Pre-tax income $407 $85 $(94) U.S. Auto earning assets (EOP) $ 117,294 $1,206 $1,897 – Retail originated yield of 10.6% (2); linked quarter decrease driven by mix dynamics; maintained consistent pricing posture Key Statistics across the credit spectrum Remarketing gains ($ millions) $59 $13 $(11) hedge is up 21bps QoQ Average gain per vehicle $1,420 $(11) $(915) – Portfolio yield excluding impact from Off-lease vehicles terminated (# units) 41,601 9,675 11,729 • Seasonal lease termination trends driving $59 million Application volume (# thousands) 3,732 (32) 215 of remarketing gains, up $13 million QoQ Retail Auto Yield Trend Lease Portfolio Trends 44% S-tier 41% 43% Origination 40% 40% Mix 76% 76% Estimated 67% 10.81% 10.92% Lessee & 10.68% 10.59% Originated 57% 10.39% Yield(2) 54% Dealer 9.07% 9.19% $70 Buyout % 8.90% 8.98% 8.81% Hedge Impact $57 $59 Remarketing Gains ($ millions) Portfolio $46 8.43% 8.65% 8.86% Yield 7.87% 8.16% ex. hedge $37 2Q 23 3Q 23 4Q 23 1Q 24 2Q 24 2Q 23 3Q 23 4Q 23 1Q 24 2Q 24 Retail Weighted Average FICO Avg. Gain / Unit 701 704 707 704 712 $2,335 $1,944 $1,422 $1,431 $1,420 See page 31 for footnotes. 17

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2Q 2024 Preliminary Results Insurance • Insurance pre-tax loss of $42 million and core Increase / (Decrease) vs. pre-tax loss of $14 million(1) Key Financials ($ millions) 2Q 24 1Q 24 2Q 23 – Premiums, service revenue earned and other income $344 $(5) $32 $344 million of earned premiums, up $32 million YoY VSC losses 38 2—Weather losses 78 61 27 – GAP losses increased YoY, driven by higher loan to values All other losses 65 6 20 given normalization in used vehicle values Losses and loss adjustment expenses 181 69 47 Acquisition and underwriting expenses (2) 229 (2) 5 • Written premiums of $344 million, up 15% YoY Total underwriting income/(loss) (66) (72) (20) Investment income and other 24 (40) (30) – Continued emphasis on dealer value through ‘all-in’ Pre-tax income (loss) $(42) $(112) $(50) relationship-focused products, servicing, and training (3) 28 45 52 Change in fair value of equity securities Core pre-tax income (loss)(1) $(14) $(67) $2 • Net weather losses of $78M driven by historically elevated hail activity and higher inventory levels Total assets (EOP) $9,174 $74 $284 Key Statistics—Insurance Ratios 2Q 24 1Q 24 2Q 23 • Reinsurance mitigating overall weather loss Loss ratio 52.5% 32.2% 43.0% exposure Underwriting expense ratio 66.2% 66.4% 71.5% Combined ratio 118.7% 98.6% 114.6% Written Premiums Insurance Losses $181 ($ millions) $354 ($ millions) $335 $333 $344 $21 Other $299 $134 $22 GAP $74 $97 $75 P&C Premium P&C non-$49 $89 $15 $107 $112 $22 weather $12 $93 $18 $16 $20 $9 $17 $16 $21 $10 $78 Weather $261 $269 F&I Premium $51 $23 $250 $244 $257 $22 $27 $3 $17 $38 $39 $36 $36 $38 VSC 2Q 23 3Q 23 4Q 23 1Q 24 2Q 24 2Q 23 3Q 23 4Q 23 1Q 24 2Q 24 Note: F&I: Finance and insurance products and other. P&C: Property and casualty insurance products. (1) Non-GAAP financial measure. See pages 27 – 29 for definitions. 18 For additional footnotes see page 31.

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2Q 2024 Preliminary Results Corporate Finance • Corporate Finance pre-tax income of $98 million Increase/(Decrease) vs. Key Financials ($ millions) 2Q 24 1Q 24 2Q 23 – Net financing revenue up YoY reflecting higher income spreads and elevated fees from loan payoffs Net financing revenue $104 $(7) $12 Other revenue 30 7 2 Total net revenue 134 - 14 – Average ROE of 22% since 2014 Provision for credit losses 3 4 (12) • Held-for-investment loans of $9.7B, down 4% YoY Noninterest expense (2) 33 (12)—Pre-tax income $98 $8 $26 – Well-diversified, high-quality, ~100% first-lien, floating rate loans Change in fair value of equity securities (3) (0) (1) 1 Core pre-tax income (1) $98 $7 $27 – CRE exposure of $1.4B is limited and performing well (no office) Total assets (EOP) 9,869 $(541) $(321) – Balances down YTD driven by strength in capital markets • Focused on credit and operational risk management – Criticized assets and non-accrual loans percentage remain near historically low levels, 13% and 1%, respectively Compelling Return Profile 2020-2021 results impacted by (4) the build and release of specific 32% 32% Return on Equity COVID related reserves 24% 27% 26% 22% 21% 18% 13% 14% 11% 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 YTD 2024 Held for Investment Balances (EOP) $1.8B $2.6B $3.2B $3.9B $4.6B $5.7B $6.0B $7.8B $10.1B $10.9B $9.7B (1) Non-GAAP financial measure. See pages 27 – 29 for definitions. 19 For additional footnotes see page 31.

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2Q 2024 Preliminary Results Mortgage Finance • Mortgage pre-tax income of $27 million Increase/(Decrease) vs. Key Financials ($ millions) 2Q 24 1Q 24 2Q 23 – Noninterest expense down $5 million YoY, reflecting Net financing revenue $53 $1 $the benefit of variable cost structure Total other revenue 5 (1) -Total net revenue $58 $- $- • Direct-to-Consumer (DTC) originations of $261 million, reflective of current environment Provision for credit losses (1) (1) (1) Noninterest expense (1) 32 (1) (5) – Less than 5% of loans retained on balance sheet Pre-tax income $27 $2 $6 • 2Q ’24 originations primarily from existing depositors, Total assets (EOP) $18,010 $(293) $(987) highlighting the strong customer value proposition Key Statistics—HFI Portfolio 2Q 24 1Q 24 2Q 23 Net Carry Value ($ billions) $17.8 $18.2 $18.9 – 70%+ of DTC originations sourced from existing depositors (2) 50.3% 50.7% 54.5% Wtd. Avg. LTV/CLTV • Continued focus on customer digital experience and Refreshed FICO 783 781 782 operational efficiency Direct-to-Consumer Originations Held for Investment Assets ($ billions) ($ billions) $18.9 $18.7 $18.4 $18.2 $17.8 $0.3 $0.3 $0.3 $0.2 $0.2 2Q 23 3Q 23 4Q 23 1Q 24 2Q 24 2Q 23 3Q 23 4Q 23 1Q 24 2Q 24 See page 31 for footnotes. 20

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2Q 2024 Preliminary Results Full-Year 2024 Financial Outlook Current Guide Prior Guide (1Q24) Net Interest Margin ~3.30% 3.25%—3.30% Exit rate 3.45%—3.50% Exit rate 3.40%—3.50% Adj. Other Revenue(1) ↑ 12% YoY ↑ 9%—12% YoY Retail Auto NCO ~2.1% ~2.0% Consolidated NCO 1.45%—1.50% 1.40%—1.50% Controllable(2) ↓>1% YoY Controllable(2) ↓ >1% YoY Adj. Noninterest Expense(1) YoY less than 2% YoY Total ↑ less than 2% Total ↑ Average Earning Assets ↓ 1% YoY Flat YoY Tax Rate(3) 0% – (5%) 15% (1) Non-GAAP financial measures. See pages 27 – 29 for definitions. (2) Defined as total operating expenses excluding FDIC fees and certain insurance expenses (losses and commissions). (3) Assumes statutory U.S. Federal tax rate of 21%. 21

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Supplemental

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Supplemental 2Q 2024 Preliminary Results Results By Segment Results by Segment and GAAP to Core Pre-tax income Walk Increase/(Decrease) vs. ($ millions) 2Q 24 1Q 24 2Q 23 1Q 24 2Q 23 Automotive Finance $407 $322 $501 $85 $(94) Insurance (42) 70 8 (112) (50) Dealer Financial Services $365 $392 $509 $(27) $(144) Corporate Finance 98 90 72 8 26 Mortgage Finance 27 25 21 2 6 Corporate and Other (233) (336) (199) 103 (34) Pre-tax income $257 $171 $403 $86 $(146) Core OID (1) 14 13 12 1 2 Change in fair value of equity securities (2) 28 (11) (25) 39 53 Repositioning and other (3) - 10—(10)—Core Pre-tax income (1) $299 $183 $390 $116 $(91) Insurance—GAAP to Core Walk GAAP Pre-tax income (loss) $(42) $70 $8 $(112) $(50) Core Adjustments (4) 28 (17) (24) 45 52 Core Pre-tax income (loss) $(14) $53 $(16) $(67) $2 Corporate Finance—GAAP to Core Walk GAAP Pre-tax income $98 $90 $72 $8 $26 Core Adjustments (4) (0) 0 (1) (1) 1 Core Pre-tax income $98 $90 $71 $7 $27 Corporate & Other—GAAP to Core Walk GAAP Pre-tax income (loss) $(233) $(336) $(199) $103 $(34) Core Adjustments (4) 15 29 12 (15) 3 Core Pre-tax income (loss) $(218) $(307) $(187) $88 $(31) (1) Non-GAAP financial measure. See pages 27 – 29 for definitions. For additional footnotes see page 32. 23

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Supplemental 2Q 2024 Preliminary Results Corporate and Other • Pre-tax loss of $233 million and Core pre-tax loss Corporate & Other Results of $218 million(1) ($ millions) Increase/(Decrease) vs. driven by higher interest Key Financials 2Q 24 1Q 24 2Q 23 – Net financing revenue lower YoY expense Net financing revenue $(6) $44 $(56) Total other revenue 39 19 (14) – Provision expense lower YoY largely driven by the sale of Total net revenue 33 63 (70) Ally Lending and slower portfolio growth in Credit Card Provision for credit losses 72 12 (9) Total assets of $39.7 billion, down $5.7 billion YoY Noninterest expense 194 (52) (27) • Pre-tax income (loss) $(233) $103 $(34) primarily driven by the sale of Ally Lending and Core OID (1) 14 1 2 runoff within the securities portfolio Repositioning items(2) - (10)—Change in fair value of equity securities (3) 1 (5) 1 Core pre-tax income (loss) (1) $(218) $88 $(31) Cash & securities $ 30,684 $(1,306) $(4,455) Ally Financial Rating Details (4) 2,022 82 (1,462) Held-for-investment loans, net LT Debt ST Debt Outlook Intercompany loan (5) (727) (8) (217) Other 7,727 487 433 Fitch BBB- F3 Stable Total assets $ 39,706 $(745) $(5,701) Moody’s Baa3 P-3 Negative Ally Invest 2Q 24 1Q 24 2Q 23 Net Funded Accounts (k) 529 526 521 S&P BBB- A-3 Stable Average Customer Trades Per Day (k) 27.5 30.0 26.2 DBRS BBB R-2H Stable Total Customer Cash Balances $1,324 $1,396 $1,578 Total Net Customers Assets $16,616 $16,020 $14,945 Note: Ratings as of 6/30/2024. Our borrowing costs & access to the capital markets could be negatively impacted if our credit ratings are downgraded or otherwise fail to meet investor expectations or demands. Ally Credit Card 2Q 24 1Q 24 2Q 23 Gross Receivable Growth (EOP) $86 $(28) $117 Outstanding Balance (EOP) $2,049 $1,962 $1,757 NCO % 12.6% 12.5% 8.5% Active Cardholders (k) 1,227 1,222 1,146 (1) Non-GAAP financial measure. See pages 27 – 29 for definitions. 24 For additional footnotes see page 32.

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Supplemental 2Q 2024 Preliminary Results Funding and Liquidity Core funded with stable deposits and strong liquidity position Funding Composition Total Available Liquidity (End of Period) ($ billions) Unsecured Debt Cash and Equivalents FHLB / Other FHLB Unused Pledged Borrowing Capacity Secured Debt FRB Discount Window Pledged Capacity Total Deposits Unencumbered Highly Liquid Securities $68.3 $64.3 $64.1 $63.5 $7.4 $8.0 $6.5 $6.7 $13.8 $11.0 $10.3 $12.2 $44.6 $9.5 $25.6 $26.0 $26.3 $26.5 $12.3 87% 87% 88% 90% 89% $2.1 $20.7 $19.6 $20.6 $20.9 $18.9 2Q 23 3Q 23 4Q 23 1Q 24 2Q 24 2Q 23 3Q 23 4Q 23 1Q 24 2Q 24 Loan to Deposit Ratio(1) Available Liquidity vs. Uninsured Deposits 96% 98% 98% 95% 97% 4.0x 5.6x 5.5x 5.8x 5.7x (1) Total loans and leases divided by total deposits. 25

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Supplemental 2Q 2024 Preliminary Results Interest Rate Risk Net Financing Revenue Sensitivity Analysis(1) ($ millions) 2Q 24 1Q 24 ($ millions) Gradual (2) Instantaneous Gradual (2) Instantaneous -100 bp $(67) $(17) $(87) $(56) +100 bp $46 $(38) $71 $5 Stable rate environment n/m $56 n/m $(22) (1) Net financing revenue impacts reflect a rolling 12-month view. See page 30 for additional details. (2) Gradual changes in interest rates are recognized over 12 months. Effective Hedge Notional (average) Fair Value Hedging on Fixed-Rate Consumer Auto Loans 2Q 24 3Q 24 4Q 24 1Q 25 2Q 25 3Q 25 4Q 25 1Q 26 2Q 26 3Q 26 4Q 26 Effective Hedge Average Notional Outstanding $17B $16B $16B $16B $14B $8B $6B $1B n/m —Average Pay Fixed Rates 4.1% 4.2% 4.1% 4.1% 4.4% 4.3% 4.5% 4.2% n/m — *Receive float combination of SOFR/OIS Fair Value Hedging on Fixed-Rate Investment Securities 2Q 24 3Q 24 4Q 24 1Q 25 2Q 25 3Q 25 4Q 25 1Q 26 2Q 26 3Q 26 4Q 26 Effective Hedge Average Notional Outstanding $12B $12B $12B $12B $12B $11B $11B $10B $10B $9B $9B Average Pay-Fixed Rates 3.9% 3.9% 3.9% 3.9% 3.9% 3.9% 3.9% 3.9% 3.8% 3.9% 3.9% Note: Pay-Fixed rates are expressed as a 4-period average rate 26

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Supplemental 2Q 2024 Preliminary Results Notes on Non-GAAP Financial Measures The following are non-GAAP financial measures which Ally believes are important to the reader of the Consolidated Financial Statements, but which are supplemental to and not a substitute for GAAP measures: Accelerated issuance expense (Accelerated OID), Adjusted earnings per share (Adjusted EPS), Adjusted efficiency ratio, Adjusted noninterest expense, Adjusted other revenue, Adjusted tangible book value per share (Adjusted TBVPS), Adjusted total net revenue, Core net income attributable to common shareholders, Core original issue discount (Core OID) amortization expense, Core outstanding original issue discount balance (Core OID balance), Core pre-tax income, Core return on tangible common equity (Core ROTCE), Investment income and other (adjusted), Net financing revenue (excluding Core OID), Net interest margin (excluding Core OID), and Tangible Common Equity. These measures are used by management, and we believe are useful to investors in assessing the company’s operating performance and capital. For calculation methodology, refer to the Reconciliation to GAAP later in this document. 1) Accelerated issuance expense (Accelerated OID) is the recognition of issuance expenses related to calls of redeemable debt. 2) Adjusted earnings per share (Adjusted EPS) is a non-GAAP financial measure that adjusts GAAP EPS for revenue and expense items that are typically strategic in nature or that management otherwise does not view as reflecting the operating performance of the company. Management believes Adjusted EPS can help the reader better understand the operating performance of the core businesses and their ability to generate earnings. In the numerator of Adjusted EPS, GAAP net income attributable to common shareholders is adjusted for the following items: (1) excludes discontinued operations, net of tax, as Ally is primarily a domestic company and sales of international businesses and other discontinued operations in the past have significantly impacted GAAP EPS, (2) adds back the tax-effected non-cash Core OID, (3) adjusts for tax-effected repositioning and other which are primarily related to the extinguishment of high-cost legacy debt, strategic activities and significant other one- time items, (4) change in fair value of equity securities, (5) excludes significant discrete tax items that do not relate to the operating performance of the core businesses, and adjusts for preferred stock capital actions that have been taken by the company to normalize its capital structure, as applicable for respective periods. See page 33 for calculation methodology and details. 3) Adjusted efficiency ratio is a non-GAAP financial measure that management believes is helpful to readers in comparing the efficiency of its core banking and lending businesses with those of its peers. See page 36 for calculation details. (1) In the numerator of Adjusted efficiency ratio, total noninterest expense is adjusted for Rep and warrant expense, Insurance segment expense, and repositioning and other which are primarily related to the extinguishment of high-cost legacy debt, strategic activities, restructuring and significant other one-time items, as applicable for respective periods. (2) In the denominator, total net revenue is adjusted for Core OID and Insurance segment revenue. See page 18 for the combined ratio for the Insurance segment which management uses as a primary measure of underwriting profitability for the Insurance segment. 4) Adjusted noninterest expense is a non-GAAP financial measure that adjusts GAAP noninterest expense for repositioning items. Management believes adjusted noninterest expense is a helpful financial metric because it enables the reader better understand the business’ expenses excluding nonrecurring items. See page 37 for calculation methodology and details. 5) Adjusted other revenue is a non-GAAP financial measure that adjusts GAAP other revenue for OID expenses, repositioning, and change in fair value of equity securities. Management believes adjusted other revenue is a helpful financial metric because it enables the reader to better understand the business’ ability to generate other revenue. See page 37 for calculation methodology and details. 6) Adjusted provision for credit losses is a non-GAAP financial measure that adjusts GAAP provision for credit losses for repositioning items. Management believes adjusted provision for credit losses is a helpful financial metric because it enables the reader to better understand the business’ expenses excluding nonrecurring items. See page 37 for calculation methodology and details. 27

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Supplemental 2Q 2024 Preliminary Results Notes on Non-GAAP Financial Measures 7) 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. Note: In December 2017, tax-effected Core OID balance was adjusted from a statutory U.S. Federal tax rate of 35% to 21% (“rate”) as a result of changes to U.S. tax law. The adjustment conservatively increased the tax-effected Core OID balance and consequently reduced Adjusted TBVPS as any acceleration of the non-cash charge in future periods would flow through the financial statements at a 21% rate versus a previously modeled 35% rate. See page 35 for calculation methodology and details. 8) Adjusted total net revenue is a non-GAAP financial measure that management believes is helpful for readers to understand the ongoing ability of the company to generate revenue. For purposes of this calculation, GAAP net financing revenue is adjusted by excluding Core OID to calculate net financing revenue ex. core OID. GAAP other revenue is adjusted for OID expenses, repositioning, and change in fair value of equity securities to calculate adjusted other revenue. Adjusted total net revenue is calculated by adding net financing revenue ex. core OID to adjusted other revenue. See pages 37 for calculation methodology and details. 9) Core net income attributable to common shareholders is a non-GAAP financial measure that serves as the numerator in the calculations of Adjusted EPS and Core ROTCE and that, like those measures, is believed by management to help the reader better understand the operating performance of the core businesses and their ability to generate earnings. Core net income attributable to common shareholders adjusts GAAP net income attributable to common shareholders for discontinued operations net of tax, tax-effected Core OID expense, tax-effected repositioning and other primarily related to the extinguishment of high-cost legacy debt and strategic activities and significant other, preferred stock capital actions, significant discrete tax items and tax-effected changes in equity investments measured at fair value, as applicable for respective periods. See pages 33– 34 for calculation methodology and details. 10) Core original issue discount (Core OID) amortization expense is a non-GAAP financial measure for OID and is believed by management to help the reader better understand the activity removed from: Core pre-tax income (loss), Core net income (loss) attributable to common shareholders, Adjusted EPS, Core ROTCE, Adjusted efficiency ratio, Adjusted total net revenue, and Net financing revenue (excluding Core OID). Core OID is primarily related to bond exchange OID which excludes international operations and future issuances. Core OID for all periods shown is applied to the pre-tax income of the Corporate and Other segment. See page 37 for calculation methodology and details. 11) Core outstanding original issue discount balance (Core OID balance) is a non-GAAP financial measure for outstanding OID and is believed by management to help the reader better understand the balance removed from Core ROTCE and Adjusted TBVPS. Core OID balance is primarily related to bond exchange OID which excludes international operations and future issuances. See page 37 for calculation methodology and details. 12) Core pre-tax income is a non-GAAP financial measure that adjusts pre-tax income from continuing operations by excluding (1) Core OID, and (2) change in fair value of equity securities (change in fair value of equity securities impacts the Insurance and Corporate Finance segments), and (3) Repositioning and other which are primarily related to the extinguishment of high-cost legacy debt, strategic activities and significant other one-time items, as applicable for respective periods or businesses. Management believes core pre-tax income can help the reader better understand the operating performance of the core businesses and their ability to generate earnings. See page 23 for calculation methodology and details. 28

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Supplemental 2Q 2024 Preliminary Results Notes on Non-GAAP Financial Measures 13) 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. See page 34 for calculation details. (1) In the numerator of Core ROTCE, GAAP net income attributable to common shareholders is adjusted for discontinued operations net of tax, tax-effected Core OID, tax-effected repositioning and other which are primarily related to the extinguishment of high-cost legacy debt, strategic activities and significant other onetime items, change in fair value of equity securities, significant discrete tax items, and preferred stock capital actions, as applicable for respective periods. (2) In the denominator, GAAP shareholder’s equity is adjusted for goodwill and identifiable intangibles net of DTL, Core OID balance, and net DTA. 14) Investment income and other (adjusted) is a non-GAAP financial measure that adjusts GAAP investment income and other for repositioning, and the change in fair value of equity securities. Management believes investment income and other (adjusted) is a helpful financial metric because it enables the reader to better understand the business’ ability to generate investment income. 15) Net financing revenue excluding core OID is calculated using a non-GAAP measure that adjusts net financing revenue by excluding Core OID. The Core OID balance is primarily related to bond exchange OID which excludes international operations and future issuances. Management believes net financing revenue ex. Core OID is a helpful financial metric because it enables the reader to better understand the business’ ability to generate revenue. See pages 37 for calculation methodology and details. 16) Net interest margin excluding core OID is calculated using a non-GAAP measure that adjusts net interest margin by excluding Core OID. The Core OID balance is primarily related to bond exchange OID which excludes international operations and future issuances. Management believes net interest margin ex. Core OID is a helpful financial metric because it enables the reader to better understand the business’ profitability and margins. See page 9 for calculation methodology and details. 17) 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 pages 35 for calculation methodology and details. 29

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Supplemental 2Q 2024 Preliminary Results Notes on Other Financial Measures 1) Change in fair value of equity securities impacts the Insurance, Corporate Finance and Corporate and Other segments. The change reflects fair value adjustments to equity securities that are reported at fair value. Management believes the change in fair value of equity securities should be removed from select financial measures because it enables the reader to better understand the business’ ongoing ability to generate revenue and income. 2) 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. 3) Estimated retail auto originated yield is a financial measure determined by calculating the estimated average annualized yield for loans originated during the period. At this time there currently is no comparable GAAP financial measure for Estimated Retail Auto Originated Yield and therefore this forecasted estimate of yield at the time of origination cannot be quantitatively reconciled to comparable GAAP information. 4) Interest rate risk modeling – We prepare our forward-looking baseline forecasts of net financing revenue taking into consideration anticipated future business growth, asset/liability positioning, and interest rates based on the implied forward curve. The analysis is highly dependent upon a variety of assumptions including the repricing characteristics of retail deposits with both contractual and non-contractual maturities. We continually monitor industry and competitive repricing activity along with other market factors when contemplating deposit pricing actions. Please see our SEC filings for more details. 5) Net charge-off ratios are calculated as annualized net charge-offs divided by average outstanding finance receivables and loans excluding loans measured at fair value and loans held-for-sale. 6) Repositioning is primarily related to the extinguishment of high-cost legacy debt, strategic activities, restructuring, amounts related to nonrecurring business transactions or pending transactions, and significant other one-time items. 7) U.S. consumer auto originations â–ª New Retail – standard and subvented rate new vehicle loans; Lease – new vehicle lease originations; Used – used vehicle loans â–ª Nonprime – originations with a FICO® score of less than 620 30

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Supplemental 2Q 2024 Preliminary Results Additional Notes Page – 5 | Dealer Financial Services (1) ‘Largest bank auto finance franchise in the U.S.’ by consumer assets outstanding at year-end 2023. Source: 2024 Big Wheels Auto Finance Survey. (2) Originated spread is calculated as estimated retail auto originated yield less two-point average of spot 2-year SOFR swap. Note, 2014 rate based off LIBOR swaps. Page – 6 | Ally Bank (1) ‘Best Online Bank’ list by MONEY® Magazine for customer service. (2) Customer retention rate is the annualized 3-month rolling average of 1 minus the monthly attrition rate; excludes escheatment. (3) FDIC insured percentage excludes affiliate and intercompany deposits. (4) Bank customer satisfaction rate is calculated with data collected during 2Q 2024 in the Ally Relationship Survey and represents Top 2 Box results on a 7-point satisfaction score. (5) Engaged customers are active deposit customers utilizing Invest, Direct Deposit, Debit, or Savings Toolkit (launched in 2020). Page – 10 | Diversified Consumer Deposits Franchise (1) FDIC insured percentage excludes affiliate and intercompany deposits. (2) Customer retention rate is the annualized 3-month rolling average of 1 minus the monthly attrition rate; excludes escheatment. Page – 17 | Auto Finance (1) Noninterest expense includes corporate allocations of $278 million in 2Q 2024, $285 million in 1Q 2024, and $271 million in 2Q 2023. (2) Estimated Retail Auto Originated Yield is a forward-looking financial measure. See page 30 for details. Page – 18 | Insurance (2)Acquisition and underwriting expenses includes corporate allocations of $23 million in 2Q 2024, $24 million in 1Q 2024, and $23 million in 2Q 2023. (3)Change in fair value of equity securities impacts the Insurance segment. The change reflects fair value adjustments to equity securities that are reported at fair value. Management believes the change in fair value of equity securities should be removed from select financial measures because it enables the reader to better understand the business’ ongoing ability to generate revenue and income. Page – 19 | Corporate Finance (2) Noninterest expense includes corporate allocations of $13 million in 2Q 2024, $16 million in 1Q 2024, and $13 million in 2Q 2023. (3) Change in fair value of equity securities impacts the Corporate Finance segment. The change reflects fair value adjustments to equity securities that are reported at fair value. Management believes the change in fair value of equity securities should be removed from select financial measures because it enables the reader to better understand the business’ ongoing ability to generate revenue and income. (4) Return on equity calculation assumes 35% tax rate for 2014-2017 and 24% thereafter; allocated equity equal to 9% of average risk-weighted assets. Page – 20 | Mortgage Finance (1) Noninterest expense includes corporate allocations of $21 million in 2Q 2024, $21 million in 1Q 2024, and $24 million in 2Q 2023. (2) 1st lien only. Updated home values derived using a combination of appraisals, Broker price opinion (BPOs), Automated Valuation Models (AVMs) and Metropolitan Statistical Area (MSA) level house price indices. 31

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Supplemental 2Q 2024 Preliminary Results Additional Notes Page – 23 | Results by Segment (2) Change in fair value of equity securities impacts the Insurance, Corporate Finance and Corporate and Other segments. The change reflects fair value adjustments to equity securities that are reported at fair value. Management believes the change in fair value of equity securities should be removed from select financial measures because it enables the reader to better understand the business’ ongoing ability to generate revenue and income. (3) Repositioning and other which are primarily related to the extinguishment of high-cost legacy debt, strategic activities, restructuring, and significant other one-time items, as applicable for respective periods or businesses. (4) Includes adjustments for non-GAAP measures Core OID expense, change in fair value of equity securities, and repositioning. Page – 24 | Corporate and Other (2) Repositioning and other which are primarily related to the extinguishment of high-cost legacy debt, strategic activities, restructuring, and significant other one-time items, as applicable for respective periods or businesses. (3) Change in fair value of equity securities impacts the Corporate and Other segments. The change reflects fair value adjustments to equity securities that are reported at fair value. Management believes the change in fair value of equity securities should be removed from select financial measures because it enables the reader to better understand the business’ ongoing ability to generate revenue and income. (4) HFI legacy mortgage portfolio and HFI Ally Credit Card portfolio 2Q 2024 and 1Q 2024 and includes HFI Ally Lending in 2Q 2023. (5) Intercompany loan related to activity between Insurance and Corporate for liquidity purposes from the wind down of the Demand Notes program. Includes loans held-for-sale. 32

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Supplemental 2Q 2024 Preliminary Results GAAP to Core Results: Adjusted EPS Adjusted Earnings per Share (“Adjusted EPS”) QUARTERLY TREND 2Q 24 1Q 24 4Q 23 3Q 23 2Q 23 Numerator ($ millions) GAAP net income attributable to common shareholders $266 $129 $49 $269 $301 Discontinued operations, net of tax - - 1 —Core OID 14 13 13 12 12 Repositioning Items - 10 172 30 -Change in fair value of equity securities 28 (11) (74) 56 (25) Tax-effected Core OID, Repo & changes in fair value of equity securities (9) (3) (23) (21) 3 (assumes 21% tax rate) Significant discrete tax items - — (94)—Core net income attributable to common shareholders [a] $299 $139 $137 $252 $291 Denominator Weighted-average common shares outstanding—(Diluted, thousands) [b] 309,886 308,421 306,730 305,693 304,646 Metric GAAP EPS $0.86 $0.42 $0.16 $0.88 $0.99 Discontinued operations, net of tax - - 0.00 —Core OID 0.04 0.04 0.04 0.04 0.04 Change in fair value of equity securities 0.09 (0.03) (0.24) 0.18 (0.08) Repositioning Items - 0.03 0.56 0.10 -Tax on Core OID, Repo & change in fair value of equity securities (0.03) (0.01) (0.08) (0.07) 0.01 (assumes 21% tax rate) Significant discrete tax items - — (0.31)—Adjusted EPS [a] / [b] $0.97 $0.45 $0.45 $0.83 $0.96 33

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Supplemental 2Q 2024 Preliminary Results GAAP to Core Results: Core ROTCE Core Return on Tangible Common Equity (“Core ROTCE”) QUARTERLY TREND 2Q 24 1Q 24 4Q 23 3Q 23 2Q 23 Numerator ($ millions) GAAP net income attributable to common shareholders $266 $129 $49 $269 $301 Discontinued operations, net of tax - - 1 —Core OID 14 13 13 12 12 Repositioning Items - 10 172 30 -Change in fair value of equity securities 28 (11) (74) 56 (25) Tax on Core OID, Repo & change in fair value of equity securities (assumes 21% tax rate) (9) (3) (23) (21) 3 Significant discrete tax items & other - — (94)—Core net income attributable to common shareholders [a] $299 $139 $137 $252 $291 Denominator (Average, $ billions) GAAP shareholder’s equity $13.8 $13.7 $13.3 $13.2 $13.5 less: Preferred equity (2.3) (2.3) (2.3) (2.3) (2.3) GAAP common shareholder’s equity $11.4 $11.4 $11.0 $10.9 $11.1 Goodwill & identifiable intangibles, net of deferred tax liabilities (“DTLs”) (0.7) (0.7) (0.8) (0.9) (0.9) Tangible common equity $10.7 $10.7 $10.2 $10.0 $10.2 Core OID balance (0.8) (0.8) (0.8) (0.8) (0.8) Net deferred tax asset (“DTA”) (1.4) (1.3) (1.4) (1.3) (1.1) Normalized common equity [b] $8.6 $8.6 $8.0 $7.9 $8.4 Core Return on Tangible Common Equity [a] / [b] 14.0% 6.5% 6.9% 12.9% 13.9% 34

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Supplemental 2Q 2024 Preliminary Results GAAP to Core Results: Adjusted TBVPS Adjusted Tangible Book Value per Share (“Adjusted TBVPS”) QUARTERLY TREND 2Q 24 1Q 24 4Q 23 3Q 23 2Q 23 Numerator ($ billions) GAAP shareholder’s equity $13.9 $13.7 $13.8 $12.8 $13.5 less: Preferred equity (2.3) (2.3) (2.3) (2.3) (2.3) GAAP common shareholder’s equity $11.5 $11.3 $11.4 $10.5 $11.2 Goodwill and identifiable intangibles, net of DTLs (0.7) (0.7) (0.7) (0.9) (0.9) Tangible common equity 10.8 10.6 10.7 9.6 10.3 Tax-effected Core OID balance (0.6) (0.6) (0.6) (0.6) (0.6) (assumes 21% tax rate) Adjusted tangible book value [a] $10.2 $10.0 $10.1 $9.0 $9.7 Denominator Issued shares outstanding (period-end, thousands) [b] 304,656 303,978 302,459 301,630 301,619 Metric GAAP shareholder’s equity per share $45.5 $44.9 $45.5 $42.5 $44.9 less: Preferred equity per share (7.6) (7.6) (7.7) (7.7) (7.7) GAAP common shareholder’s equity per share $37.8 $37.3 $37.8 $34.8 $37.2 Goodwill and identifiable intangibles, net of DTLs per share (2.3) (2.4) (2.4) (2.9) (2.9) Tangible common equity per share 35.5 34.9 35.4 31.9 34.2 Tax-effected Core OID balance (2.0) (2.0) (2.1) (2.1) (2.1) (assumes 21% tax rate) per share Adjusted tangible book value per share [a] / [b] $33.5 $32.9 $33.4 $29.8 $32.1 Ally adopted CECL on January 1, 2020. Upon implementation of CECL Ally recognized a reduction to our opening retained earnings balance of approximately $1.0 billion, net of income tax, which reflects a pre-tax increase to the allowance for loan losses of approximately $1.3 billion. This increase is almost exclusively driven by our consumer automotive loan portfolio. Note: For more details on the final rules to address the impact of CECL on regulatory capital by allowing 35 BHCs and banks, including Ally, to delay and subsequently phase-in its impact, see page 30.

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Supplemental 2Q 2024 Preliminary Results GAAP to Core Results: Adjusted Efficiency Ratio Adjusted Efficiency Ratio QUARTERLY TREND 2Q 24 1Q 24 4Q 23 3Q 23 2Q 23 Numerator ($ millions) GAAP noninterest expense $1,286 $1,308 $1,416 $1,232 $1,249 Insurance expense (410) (343) (321) (338) (358) Repositioning items - (10) (187) (30)—Adjusted noninterest expense for efficiency ratio [a] $876 $955 $908 $864 $891 Denominator ($ millions) Total net revenue $ 2,000 $1,986 $2,067 $1,968 $2,079 Core OID 14 13 13 12 12 Repositioning items - — —Insurance revenue (368) (413) (450) (322) (366) Adjusted net revenue for the efficiency ratio [b] $1,646 $1,586 $1,630 $1,658 $1,725 Adjusted Efficiency Ratio [a] / [b] 53.2% 60.2% 55.7% 52.1% 51.7% 36

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Supplemental 2Q 2024 Preliminary Results Non-GAAP Reconciliations ($ millions) QUARTERLY TREND Net Financing Revenue (ex. Core OID) 2Q 24 1Q 24 4Q 23 3Q 23 2Q 23 GAAP Net Financing Revenue $1,495 $1,456 $1,493 $1,533 $1,573 Core OID 14 13 13 12 12 Net Financing Revenue (ex. Core OID) [a] $1,509 $1,469 $1,506 $1,545 $1,585 Adjusted Other Revenue GAAP Other Revenue $505 $530 $574 $435 $506 Accelerated OID & repositioning items - — —Change in fair value of equity securities 28 (11) (74) 56 (25) Adjusted Other Revenue [b] $533 $519 $500 $491 $481 Adjusted Total Net Revenue Adjusted Total Net Revenue [a]+[b] $2,042 $1,989 $2,006 $2,036 $2,066 Adjusted Provision for Credit Losses GAAP Provision for Credit Losses $457 $507 $587 $508 $427 Repositioning - - 16 — Adjusted Provision for Credit Losses $457 $507 $603 $508 $427 Adjusted NIE (ex. Repositioning) GAAP Noninterest Expense $1,286 $1,308 $1,416 $1,232 $1,249 Repositioning - (10) (187) (30)—Adjusted NIE (ex. Repositioning) $1,286 $1,298 $1,229 $1,202 $1,249 Original issue discount amortization expense GAAP original issue discount amortization expense $17 $17 $16 $15 $15 Other OID (3) (3) (3) (3) (3) Core original issue discount (Core OID) amortization expense $14 $13 $13 $12 $12 Outstanding original issue discount balance GAAP outstanding original issue discount balance $(797) $(815) $(831) $(847) $(863) Other outstanding OID balance 31 35 39 42 45 Core outstanding original issue discount balance (Core OID balance) $(766) $(779) $(793) $(806) $(818) Note: Change in fair value of equity securities impacts the Insurance, Corporate Finance and Corporate and Other segments. The change reflects fair value adjustments to equity securities that are reported at fair value. Management believes the change in fair value of equity securities should be removed from select financial measures because it enables the reader to better understand the business’ ongoing ability to generate revenue and income. 37

Exhibit 99.3

 

 

SECOND QUARTER 2024

FINANCIAL SUPPLEMENT

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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, 2023, 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.

 

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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

 

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ALLY FINANCIAL INC. CONSOLIDATED FINANCIAL HIGHLIGHTS

 

($ in millions, shares in thousands)		QUARTERLY TRENDS																				CHANGE VS.
Selected Income Statement Data		2Q 24				1Q 24				4Q 23				3Q 23				2Q 23				1Q 24				2Q 23
Net financing revenue		$	1,495			$	1,456			$	1,493			$	1,533			$	1,573			$	39			$	(78	)
Core OID			14				13				13				12				12				1				2
Net financing revenue (excluding Core OID) (1)			1,509				1,469				1,506				1,545				1,585				40				(76	)
Other revenue			505				530				574				435				506				(25	)			(1	)
Change in fair value of equity securities (2)			28				(11	)			(74	)			56				(25	)			39				53
Adjusted other revenue (1)			533				519				500				491				481				14				52
Provision for credit losses			457				507				587				508				427				(50	)			30
Repositioning			-				-				16				-				-				-				-
Adjusted provision for credit losses (1)			457				507				603				508				427				(50	)			30
Total noninterest expense (3)			1,286				1,308				1,416				1,232				1,249				(22	)			37
Repositioning			-				(10	)			(187	)			(30	)			-				10				-
Noninterest expense (ex. Repositioning) (1)			1,286				1,298				1,229				1,202				1,249				(12	)			37
Pre-tax income from continuing operations			257				171				64				228				403				86				(146	)
Income tax expense (benefit)			(37	)			14				(13	)			(68	)			74				(51	)			(111	)
(Loss) from discontinued operations, net of tax			-				-				(1	)			-				-				-				-
Net Income			294				157				76				296				329				137				(35	)
Preferred Dividends			28				28				27				27				28				-				-
Net income attributable to common shareholders		$	266			$	129			$	49			$	269			$	301			$	137			$	(35	)
Selected Balance Sheet Data (Period-End)
Total assets		$	192,531			$	192,877			$	196,392			$	195,704			$	197,241			$	(346	)		$	(4,710	)
Consumer loans			103,585				103,809				104,977				108,343				107,370				(224	)			(3,785	)
Commercial loans			35,198				34,151				34,462				31,917				31,079				1,047				4,119
Allowance for loan losses			(3,572	)			(3,550	)			(3,587	)			(3,837	)			(3,781	)			(22	)			209
Deposits			152,154				155,084				154,666				152,835				154,310				(2,930	)			(2,156	)
Total equity			13,851				13,657				13,766				12,825				13,532				194				319
Common Share Count
Weighted average basic			306,774				306,003				304,506				304,134				303,684				772				3,090
Weighted average diluted			309,886				308,421				306,730				305,693				304,646				1,465				5,241
Issued shares outstanding (period-end)			304,656				303,978				302,459				301,630				301,619				678				3,037
Per Common Share Data
Earnings per share (basic)		$	0.87			$	0.42			$	0.16			$	0.88			$	0.99			$	0.45			$	(0.12	)
Earnings per share (diluted)			0.86				0.42				0.16				0.88				0.99				0.44				(0.13	)
Adjusted earnings per share (1)			0.97				0.45				0.45				0.83				0.96				0.52				0.01
Book value per share			37.84				37.28				37.83				34.81				37.16				0.55				0.68
Tangible book value per share			35.50				34.91				35.43				31.90				34.22				0.58				1.28
Adjusted tangible book value per share (1)			33.51				32.89				33.36				29.79				32.08				0.62				1.43
Select Financial Ratios
Net interest margin			3.27%				3.13%				3.17%				3.24%				3.38%
Net interest margin (ex. Core OID) (1)			3.30%				3.16%				3.20%				3.26%				3.41%
Cost of funds			4.39%				4.44%				4.35%				4.21%				3.89%
Cost of funds (ex. Core OID)			4.34%				4.38%				4.29%				4.15%				3.84%
Efficiency Ratio			64.3%				65.9%				68.5%				62.6%				60.1%
Adjusted efficiency ratio (1)			53.2%				60.2%				55.7%				52.1%				51.7%
Return on average assets			0.6%				0.3%				0.1%				0.5%				0.6%
Return on average total equity			7.7%				3.8%				1.5%				8.2%				8.9%
Return on average tangible common equity			9.9%				4.8%				1.9%				10.8%				11.8%
Core ROTCE (1)			14.0%				6.5%				6.9%				12.9%				13.9%
Capital Ratios (4)
Common Equity Tier 1 (CET1) capital ratio			9.6%				9.4%				9.4%				9.3%				9.3%
Tier 1 capital ratio			11.0%				10.8%				10.8%				10.7%				10.7%
Total capital ratio			12.7%				12.5%				12.4%				12.5%				12.5%
Tier 1 leverage ratio			8.8%				8.6%				8.7%				8.6%				8.6%

 

(1) Represents a non-GAAP financial measure. For more details refer to pages 22-27.

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

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

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

Note: Numbers may not foot due to rounding

 

		4

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ALLY FINANCIAL INC. CONSOLIDATED INCOME STATEMENT

 

($ in millions)		QUARTERLY TRENDS																				CHANGE VS.
		2Q 24				1Q 24				4Q 23				3Q 23				2Q 23				1Q 24				2Q 23
Financing revenue and other interest income
Interest and fees on finance receivables and loans		$	2,845			$	2,827			$	2,887			$	2,837			$	2,721			$	18			$	124
Interest on loans held-for-sale			7				36				5				7				7				(29	)			-
Total interest and dividends on investment securities			255				255				260				256				238				-				17
Interest-bearing cash			88				97				90				99				87				(9	)			1
Other earning assets			10				11				10				11				9				(1	)			1
Operating leases			333				356				371				385				392				(23	)			(59	)
Total financing revenue and other interest income			3,538				3,582				3,623				3,595				3,454				(44	)			84
Interest expense
Interest on deposits			1,594				1,651				1,621				1,563				1,418				(57	)			176
Interest on short-term borrowings			27				23				37				13				11				4				16
Interest on long-term debt			244				248				248				274				252				(4	)			(8	)
Interest on other			1				-				2				-				-				1				1
Total interest expense			1,866				1,922				1,908				1,850				1,681				(56	)			185
Depreciation expense on operating lease assets			177				204				222				212				200				(27	)			(23	)
Net financing revenue		$	1,495			$	1,456			$	1,493			$	1,533			$	1,573			$	39			$	(78	)
Other revenue
Insurance premiums and service revenue earned			341				345				335				320				310				(4	)			31
Gain on mortgage and automotive loans, net			6				6				3				4				5				-				1
Other gain / (loss) on investments, net			(7	)			29				85				(41	)			26				(36	)			(33	)
Other income, net of losses			165				150				151				152				165				15				-
Total other revenue			505				530				574				435				506				(25	)			(1	)
Total net revenue			2,000				1,986				2,067				1,968				2,079				14				(79	)
Provision for loan losses			457				507				587				508				427				(50	)			30
Noninterest expense
Compensation and benefits expense			442				519				453				463				448				(77	)			(6	)
Insurance losses and loss adjustment expenses			181				112				93				107				134				69				47
Goodwill impairment			-				-				149				-				-				-				-
Other operating expenses			663				677				721				662				667				(14	)			(4	)
Total noninterest expense			1,286				1,308				1,416				1,232				1,249				(22	)			37
Pre-tax income from continuing operations		$	257			$	171			$	64			$	228			$	403			$	86			$	(146	)
Income tax (benefit) / expense from continuing operations			(37	)			14				(13	)			(68	)			74				(51	)			(111	)
Net income from continuing operations			294				157				77				296				329				137				(35	)
Loss from discontinued operations, net of tax			-				-				(1	)			-				-				-				-
Net income		$	294			$	157			$	76			$	296			$	329			$	137			$	(35	)
Preferred Dividends			28				28				27				27				28				-				-
Net income available to common shareholders		$	266			$	129			$	49			$	269			$	301			$	137			$	(35	)
Core pre-tax Income walk
Net financing revenue		$	1,495			$	1,456			$	1,493			$	1,533			$	1,573			$	39			$	(78	)
Other revenue			505				530				574				435				506				(25	)			(1	)
Provision for credit losses			457				507				587				508				427				(50	)			30
Total noninterest expense			1,286				1,308				1,416				1,232				1,249				(22	)			37
Pre-tax income from continuing operations		$	257			$	171			$	64			$	228			$	403			$	86			$	(146	)
Core OID (1)			14				13				13				12				12				1				2
Change in the fair value of equity securities (2)			28				(11	)			(74	)			56				(25	)			39				53
Repositioning (2)			-				10				172				30				-				(10	)			-
Core pre-tax income (1)		$	299			$	183			$	174			$	326			$	390			$	116			$	(91	)

 

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

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

Note: Numbers may not foot due to rounding

 

		5

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ALLY FINANCIAL INC. CONSOLIDATED PERIOD-END BALANCE SHEET

 

($ in millions)		QUARTERLY TRENDS																				CHANGE VS.
		2Q 24				1Q 24				4Q 23				3Q 23				2Q 23				1Q 24				2Q 23
Assets
Cash and cash equivalents
Noninterest-bearing		$	536			$	589			$	638			$	603			$	536			$	(53	)		$	-
Interest-bearing			6,833				7,564				6,307				7,912				9,436				(731	)			(2,603	)
Total cash and cash equivalents			7,369				8,153				6,945				8,515				9,972				(784	)			(2,603	)
Investment securities (1)			28,602				29,127				29,905				28,532				30,453				(525	)			(1,851	)
Loans held-for-sale, net			316				358				400				289				297				(42	)			19
Finance receivables and loans, net			138,783				137,960				139,439				140,260				138,449				823				334
Allowance for loan losses			(3,572	)			(3,550	)			(3,587	)			(3,837	)			(3,781	)			(22	)			209
Total finance receivables and loans, net			135,211				134,410				135,852				136,423				134,668				801				543
Investment in operating leases, net			8,374				8,731				9,171				9,569				9,930				(357	)			(1,556	)
Premiums receivables and other insurance assets			2,806				2,750				2,749				2,775				2,768				56				38
Other assets			9,853				9,348				9,395				9,601				9,153				505				700
Assets of operations held-for-sale (2)			-				-				1,975				-				-				-				-
Total assets		$	192,531			$	192,877			$	196,392			$	195,704			$	197,241			$	(346	)		$	(4,710	)
Liabilities
Deposit liabilities
Noninterest-bearing		$	156			$	137			$	139			$	188			$	160			$	19			$	(4	)
Interest-bearing			151,998				154,947				154,527				152,647				154,150				(2,949	)			(2,152	)
Total deposit liabilities			152,154				155,084				154,666				152,835				154,310				(2,930	)			(2,156	)
Short-term borrowings			3,122				-				3,297				2,410				2,194				3,122				928
Long-term debt			15,979				17,011				17,570				20,096				20,141				(1,032	)			(4,162	)
Interest payable			1,148				1,118				858				1,437				955				30				193
Unearned insurance premiums and service revenue			3,496				3,480				3,492				3,494				3,478				16				18
Accrued expense and other liabilities			2,781				2,527				2,726				2,607				2,631				254				150
Liabilities of operations held-for-sale			-				-				17				-				-				-				-
Total liabilities		$	178,680			$	179,220			$	182,626			$	182,879			$	183,709			$	(540	)		$	(5,029	)
Equity
Common stock and paid-in capital (3)		$	15,176			$	15,134			$	15,104			$	15,069			$	15,048			$	42			$	128
Preferred stock			2,324				2,324				2,324				2,324				2,324				-				-
Retained earnings			360				188				154				197				23				172				337
Accumulated other comprehensive loss			(4,009	)			(3,989	)			(3,816	)			(4,765	)			(3,863	)			(20	)			(146	)
Total equity			13,851				13,657				13,766				12,825				13,532				194				319
Total liabilities and equity		$	192,531			$	192,877			$	196,392			$	195,704			$	197,241			$	(346	)		$	(4,710	)

 

(1) Includes Held-to-maturity securities.

(2) Unsecured lending from point-of-sale financing. Moved to Assets of Operations Held-For-Sale (HFS) on 12/31/23. Sale of Ally Lending closed on 03/01/24.

(3) Includes Treasury stock.

Note: Numbers may not foot due to rounding

 

		6

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ALLY FINANCIAL INC. CONSOLIDATED AVERAGE BALANCE SHEET (1)

 

($ in millions)		QUARTERLY TRENDS																				CHANGE VS.
		2Q 24				1Q 24				4Q 23				3Q 23				2Q 23				1Q 24				2Q 23
Assets
Interest-bearing cash and cash equivalents		$	7,311			$	7,709			$	7,571			$	8,308			$	7,401			$	(398)			$	(90	)
Investment securities and other earning assets			29,233				29,939				29,407				30,364				31,537				(706	)			(2,304	)
Loans held-for-sale, net			220				382				237				278				422				(162	)			(202	)
Total finance receivables and loans, net (2) (5)			138,322				139,945				140,326				139,153				137,185				(1,623	)			1,137
Investment in operating leases, net			8,619				8,955				9,415				9,817				10,110				(336	)			(1,491	)
Total interest earning assets			183,705				186,930				186,956				187,920				186,655				(3,225	)			(2,950	)
Noninterest-bearing cash and cash equivalents			360				309				257				335				362				51				(2	)
Other assets			11,587				11,443				11,644				10,925				10,781				144				806
Allowance for loan losses			(3,557	)			(3,589	)			(3,801	)			(3,820	)			(3,777	)			32				220
Total assets		$	192,095			$	195,093			$	195,056			$	195,360			$	194,021			$	(2,998)			$	(1,926	)
Liabilities
Interest-bearing deposit liabilities
Retail deposit liabilities		$	142,949			$	143,491			$	140,117			$	139,372			$	138,285			$	(542	)		$	4,664
Other interest-bearing deposit liabilities (3)			9,316				11,712				13,391				13,973				13,935				(2,396	)			(4,619	)
Total Interest-bearing deposit liabilities			152,265				155,203				153,508				153,345				152,220				(2,938	)			45
Short-term borrowings			2,254				1,726				2,714				948				833				528				1,421
Long-term debt (4)			16,367				17,309				17,933				20,315				20,256				(942	)			(3,889	)
Total interest-bearing liabilities (4)			170,886				174,238				174,155				174,608				173,309				(3,352	)			(2,423	)
Noninterest-bearing deposit liabilities			147				149				164				181				162				(2	)			(15	)
Other liabilities			7,231				7,021				7,826				6,503				6,760				210				471
Total liabilities		$	178,264			$	181,408			$	182,145			$	181,292			$	180,231			$	(3,144)			$	(1,967	)
Equity
Total equity		$	13,831			$	13,685			$	12,911			$	14,068			$	13,790			$	146			$	41
Total liabilities and equity		$	192,095			$	195,093			$	195,056			$	195,360			$	194,021			$	(2,998)			$	(1,926	)

 

(1) Average balances are calculated using a combination of monthly and daily average methodologies.

(2) Nonperforming finance receivables and loans are included in the average balances net of unearned income, unamortized premiums and discounts, and deferred fees and costs.

(3) Includes brokered (inclusive of sweep deposits) and other deposits.

(4) Includes average Core OID balance of $773 million in 2Q24, $786 million in 1Q24, $799 million in 4Q23, $812 million in 3Q23, and $824 million in 2Q23.

(5) Includes the effects of finance receivables and loans, net that were transferred to loans held-for-sale, net and subsequently transferred to assets of operations held-for-sale as of December 31, 2023.

Note: Numbers may not foot due to rounding

 

		7

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ALLY FINANCIAL INC. SEGMENT HIGHLIGHTS

 

($ in millions)

		QUARTERLY TRENDS																				CHANGE VS.
		2Q 24				1Q 24				4Q 23				3Q 23				2Q 23				1Q 24				2Q 23
Pre-tax Income / (Loss)
Automotive Finance		$	407			$	322			$	294			$	377			$	501			$	85			$	(94	)
Insurance			(42	)			70				129				(16	)			8				(112	)			(50	)
Dealer Financial Services			365				392				423				361				509				(27	)			(144	)
Corporate Finance			98				90				79				84				72				8				26
Mortgage Finance			27				25				24				26				21				2				6
Corporate and Other (1)			(233	)			(336	)			(462	)			(243	)			(199	)			103				(34	)
Pre-tax income from continuing operations		$	257			$	171			$	64			$	228			$	403			$	86			$	(146	)
Core OID (2) (4)			14				13				13				12				12				1				2
Change in the fair value of equity securities (3)			28				(11	)			(74	)			56				(25	)			39				53
Repositioning (4)			-				10				172				30				-				(10	)			-
Core pre-tax income (4)		$	299			$	183			$	174			$	326			$	390			$	116			$	(91	)

 

(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. The sale of Ally Lending closed on 03/01/24.

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

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

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

Note: Numbers may not foot due to rounding

 

		8

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ALLY FINANCIAL INC. AUTOMOTIVE FINANCE - CONDENSED FINANCIAL STATEMENTS

 

($ in millions)

		QUARTERLY TRENDS																				CHANGE VS.
Income Statement		2Q 24				1Q 24				4Q 23				3Q 23				2Q 23				1Q 24				2Q 23
Net financing revenue
Consumer		$	1,837			$	1,808			$	1,799			$	1,748			$	1,649			$	29			$	188
Commercial			435				411				394				364				335				24				100
Loans held-for-sale			1				1				1				2				1				-				-
Operating leases			333				356				371				385				392				(23	)			(59	)
Total financing revenue and other interest income			2,606				2,576				2,565				2,499				2,377				30				229
Interest expense			1,115				1,058				1,013				927				828				57				287
Depreciation expense on operating lease assets:
Depreciation expense on operating lease assets (ex. remarketing)			236				249				260				268				271				(13	)			(34	)
Remarketing gains, net of repo valuation			(59	)			(46	)			(37	)			(57	)			(70	)			(13	)			11
Total depreciation expense on operating lease assets			177				204				222				212				200				(27	)			(23	)
Net financing revenue			1,314				1,314				1,330				1,360				1,349				-				(35	)
Other revenue
Total other revenue			93				97				82				79				83				(4	)			10
Total net revenue			1,407				1,411				1,412				1,439				1,432				(4	)			(25	)
Provision for credit losses			383				448				492				444				331				(65	)			52
Noninterest expense
Compensation and benefits			160				178				163				164				160				(18	)			-
Other operating expenses			457				463				463				454				440				(6	)			17
Total noninterest expense			617				641				626				618				600				(24	)			17
Pre-tax Income		$	407			$	322			$	294			$	377			$	501			$	85			$	(94	)
Memo: Net lease revenue
Operating lease revenue		$	333			$	356			$	371			$	385			$	392			$	(23	)		$	(59	)
Depreciation expense on operating lease assets (ex. remarketing)			236				249				260				268				271				(13	)			(34	)
Remarketing gains, net of repo valuation			(59	)			(46	)			(37	)			(57	)			(70	)			(13	)			11
Total depreciation expense on operating lease assets			177				204				222				212				200				(27	)			(23	)
Net lease revenue		$	156			$	152			$	149			$	173			$	192			$	4			$	(36	)
Balance Sheet (Period-End)
Loans held-for-sale, net		$	6			$	5			$	13			$	21			$	10			$	1			$	(4	)
Consumer loans			83,694				83,587				84,414				85,728				84,725				107				(1,031	)
Commercial loans			25,220				23,765				23,334				21,057				20,732				1,455				4,488
Allowance for loan losses			(3,092	)			(3,083	)			(3,117	)			(3,153	)			(3,103	)			(9	)			11
Total finance receivables and loans, net			105,822				104,269				104,631				103,632				102,354				1,553				3,468
Investment in operating leases, net			8,374				8,731				9,171				9,569				9,930				(357	)			(1,556	)
Other assets			1,570				1,608				1,572				1,520				1,463				(38	)			107
Total assets		$	115,772			$	114,613			$	115,387			$	114,742			$	113,757			$	1,159			$	2,015

 

Note: Numbers may not foot due to rounding

 

		9

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ALLY FINANCIAL INC. AUTOMOTIVE FINANCE - KEY STATISTICS

 

		QUARTERLY TRENDS																				CHANGE VS.
		2Q 24				1Q 24				4Q 23				3Q 23				2Q 23				1Q 24				2Q 23
U.S. Consumer Originations (1) ($ in billions)
Retail standard - new vehicle GM		$	1.1			$	1.0			$	1.1			$	1.1			$	1.1			$	0.1			$	(0.0	)
Retail standard - new vehicle Stellantis			0.7				0.6				0.7				0.7				0.8				0.1				(0.2	)
Retail standard - new vehicle Other			1.0				0.9				1.0				1.1				1.0				0.1				(0.0	)
Used vehicle			6.1				6.6				6.2				6.9				6.6				(0.5	)			(0.5	)
Lease			0.9				0.7				0.6				0.7				0.8				0.2				0.1
Retail subvented			-				-				-				0.0				0.0				-				(0.0	)
Total originations		$	9.8			$	9.8			$	9.6			$	10.6			$	10.4			$	0.0			$	(0.6	)
U.S. Consumer Originations - FICO Score
Super prime (760-999)		$	2.7			$	2.4			$	2.4			$	2.5			$	2.4			$	0.3			$	0.3
High prime (720-759)			1.4				1.4				1.4				1.5				1.4				-				-
Prime (660-719)			2.8				2.8				2.7				3.1				3.1				0.0				(0.3	)
Prime/Near (620-659)			1.6				1.7				1.5				1.8				1.8				(0.1	)			(0.2	)
Non-Prime (540-619)			0.6				0.7				0.6				0.7				0.7				(0.1	)			(0.1	)
Sub-Prime (0-539)			0.1				0.2				0.2				0.2				0.2				(0.1	)			(0.1	)
No FICO (Primarily CSG)			0.6				0.7				0.8				0.8				0.8				(0.1	)			(0.2	)
Total originations		$	9.8			$	9.8			$	9.6			$	10.6			$	10.4			$	0.0			$	(0.6	)
U.S. Consumer Retail Originations - Average FICO
New vehicle			714				712				718				712				709				3				5
Used vehicle			710				702				703				701				698				9				13
Total retail originations			712				704				707				704				701				7				11
U.S. Market
New light vehicle sales (SAAR - units in millions)			15.7				15.3				15.7				15.7				15.8				0.4				(0.1	)
New light vehicle sales (quarterly - units in millions)			4.1				3.8				3.9				4.0				4.1				0.3				0.0
Dealer Engagement
Total Active DFS Dealers (2)			21,825				21,787				21,829				22,323				22,171				38				(346	)
Total Application Volume (000s)			3,732				3,764				3,322				3,674				3,517				(32	)			215
Ally U.S. Commercial Outstandings EOP ($ in billions)
Floorplan outstandings		$	18.7			$	17.3			$	17.0			$	14.9			$	14.6			$	1.3			$	4.0
Dealer loans and other			6.6				6.4				6.3				6.1				6.1				0.1				0.5
Total Commercial outstandings		$	25.2			$	23.8			$	23.3			$	21.1			$	20.7			$	1.5			$	4.5
U.S. Off-Lease Remarketing
Off-lease vehicles terminated - on-balance sheet (# in units)			41,601				31,926				26,237				29,484				29,872				9,675				11,729
Average gain per vehicle		$	1,420			$	1,431			$	1,422			$	1,944			$	2,335			$	(11	)		$	(914	)
Total gain ($ in millions)		$	59			$	46			$	37			$	57			$	70			$	13			$	(11	)

 

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

(2) A dealer is considered to have an active relationship with us if we provided automotive financing, remarketing, or insurance services during the three months ended June 30, 2024.

Note: Numbers may not foot due to rounding

 

		10

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ALLY FINANCIAL INC. INSURANCE - CONDENSED FINANCIAL STATEMENTS AND KEY STATISTICS

 

($ in millions)

		QUARTERLY TRENDS																				CHANGE VS.
Income Statement (GAAP View)		2Q 24				1Q 24				4Q 23				3Q 23				2Q 23				1Q 24				2Q 23
Net financing revenue
Total interest and fees on finance receivables and loans(1)		$	4			$	3			$	3			$	2			$	3			$	1			$	1
Interest and dividends on investment securities			32				31				34				32				31				1				1
Interest bearing cash			5				5				5				3				2				-				3
Total financing revenue and other interest revenue			41				39				42				37				36				2				5
Interest expense			11				10				9				8				7				1				4
Net financing revenue			30				29				33				29				29				1				1
Other revenue
Insurance premiums and service revenue earned			341				345				335				320				310				(4	)			31
Other gain / (loss) on investments, net			(6	)			35				78				(31	)			25				(41	)			(31	)
Other income, net of losses			3				4				4				4				2				(1	)			1
Total other revenue			338				384				417				293				337				(46	)			1
Total net revenue			368				413				450				322				366				(45	)			2
Noninterest expense
Compensation and benefits expense			26				28				27				26				27				(2	)			(1	)
Insurance losses and loss adjustment expenses			181				112				93				107				134				69				47
Other operating expenses			203				203				201				205				197				-				6
Total noninterest expense			410				343				321				338				358				67				52
Pre-tax income (loss)		$	(42	)		$	70			$	129			$	(16	)		$	8			$	(112	)		$	(50	)
Memo: Income Statement (Managerial View)
Insurance premiums and other income
Insurance premiums and service revenue earned		$	341			$	345			$	335			$	320			$	310			$	(4	)		$	31
Investment income and other (adjusted) (2)			52				47				44				44				30				5				22
Other income			3				4				4				4				2				(1	)			1
Total insurance premiums and other income			396				396				383				368				342				0				54
Expense
Insurance losses and loss adjustment expenses			181				112				93				107				134				69				47
Acquisition and underwriting expenses
Compensation and benefit expense			26				28				27				26				27				(2	)			(1	)
Insurance commission expense			162				161				161				160				158				0				3
Other expense			41				42				40				45				39				(0	)			3
Total acquistion and underwriting expense			229				231				228				231				224				(2	)			5
Total expense			410				343				321				338				358				67				52
Core pre-tax (loss) / income (2)			(14	)			53				62				30				(16	)			(67	)			2
Change in the fair value of equity securities (3)			(28	)			17				67				(46	)			24				(45	)			(52	)
Income (loss) before income tax expense		$	(42	)		$	70			$	129			$	(16	)		$	8			$	(112	)		$	(50	)
Balance Sheet (Period-End)
Cash and investment securities		$	5,285			$	5,285			$	5,333			$	5,086			$	5,280			$	-			$	5
Intercompany loans(1)			727				719				619				547				510				8				217
Premiums receivable and other insurance assets			2,824				2,768				2,767				2,791				2,783				56				41
Other assets			338				328				362				312				317				10				21
Total assets		$	9,174			$	9,100			$	9,081			$	8,736			$	8,890			$	74			$	284
Key Statistics
Total written premiums and revenue (4)		$	344			$	354			$	333			$	335			$	299			$	(10	)		$	45
Loss ratio (5)			52.5%				32.2%				27.6%				33.0%				43.0%
Underwriting expense ratio (6)			66.2%				66.4%				67.2%				71.3%				71.5%
Combined ratio			118.7%				98.6%				94.8%				104.3%				114.6%

 

(1) Intercompany activity represents excess liquidity placed with corporate segment.

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

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

(4) Written premiums are net of ceded premium for reinsurance.

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

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

Note: Numbers may not foot due to rounding

 

		11

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ALLY FINANCIAL INC. MORTGAGE FINANCE - CONDENSED FINANCIAL STATEMENTS

 

($ in millions)

		QUARTERLY TRENDS																				CHANGE VS.
Income Statement		2Q 24				1Q 24				4Q 23				3Q 23				2Q 23				1Q 24				2Q 23
Net financing revenue
Total financing revenue and other interest income		$	145			$	146			$	147			$	149			$	151			$	(1	)		$	(6	)
Interest expense			92				94				96				96				98				(2	)			(6	)
Net financing revenue			53				52				51				53				53				1				-
Gain on mortgage loans, net			5				6				3				4				5				(1	)			-
Total other revenue			5				6				3				4				5				(1	)			-
Total net revenue			58				58				54				57				58				-				-
Provision for loan losses			(1	)			-				-				(2	)			-				(1	)			(1	)
Noninterest expense
Compensation and benefits expense			5				5				4				5				5				-				-
Other operating expense			27				28				26				28				32				(1	)			(5	)
Total noninterest expense			32				33				30				33				37				(1	)			(5	)
Pre-tax Income		$	27			$	25			$	24			$	26			$	21			$	2			$	6
Balance Sheet (Period-End)
Finance receivables and loans, net:
Consumer loans		$	17,803			$	18,227			$	18,442			$	18,657			$	18,894			$	(424	)		$	(1,091	)
Allowance for loan losses			(17	)			(18	)			(18	)			(19	)			(20	)			1				3
Total finance receivables and loans, net			17,786				18,209				18,424				18,638				18,874				(423	)			(1,088	)
Loans held for sale, net			157				27				25				29				36				130				121
Other assets			67				67				63				78				87				-				(20	)
Total assets		$	18,010			$	18,303			$	18,512			$	18,745			$	18,997			$	(293	)		$	(987	)

 

Note: Numbers may not foot due to rounding

 

		12

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ALLY FINANCIAL INC. CORPORATE FINANCE - CONDENSED FINANCIAL STATEMENTS

 

($ in millions)

		QUARTERLY TRENDS																				CHANGE VS.
Income Statement		2Q 24				1Q 24				4Q 23				3Q 23				2Q 23				1Q 24				2Q 23
Net financing revenue
Total financing revenue and other interest income		$	252			$	269			$	264			$	248			$	234			$	(17	)		$	18
Interest expense			148				158				159				151				142				(10	)			6
Net financing revenue			104				111				105				97				92				(7	)			12
Total other revenue			30				23				23				24				28				7				2
Total net revenue			134				134				128				121				120				-				14
Provision for loan losses			3				(1	)			17				5				15				4				(12	)
Noninterest expense
Compensation and benefits expense			17				27				17				16				17				(10	)			-
Other operating expense			16				18				15				16				16				(2	)			-
Total noninterest expense			33				45				32				32				33				(12	)			-
Pre-tax income		$	98			$	90			$	79			$	84			$	72			$	8			$	26
Change in the fair value of equity securities (1)			(0	)			0				0				(0	)			(1	)			(1	)			1
Core pre-tax income (2)		$	98			$	90			$	79			$	84			$	71			$	7			$	27
Balance Sheet (Period-End)
Equity securities		$	2			$	5			$	6			$	6			$	6			$	(3	)		$	(4	)
Loans held for sale, net			101				213				253				81				48				(112	)			53
Commercial loans			9,737				10,144				10,905				10,637				10,132				(407	)			(395	)
Allowance for loan losses			(156	)			(152	)			(153	)			(185	)			(176	)			(4	)			20
Total finance receivables and loans, net			9,581				9,992				10,752				10,452				9,956				(411	)			(375	)
Other assets			185				200				201				210				180				(15	)			5
Total assets		$	9,869			$	10,410			$	11,212			$	10,749			$	10,190			$	(541	)		$	(321	)

 

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

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

Note: Numbers may not foot due to rounding

 

		13

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ALLY FINANCIAL INC. CORPORATE AND OTHER - CONDENSED FINANCIAL STATEMENTS

 

($ in millions)

		QUARTERLY TRENDS																				CHANGE VS.
Income Statement		2Q 24				1Q 24				4Q 23				3Q 23				2Q 23				1Q 24				2Q 23
Net financing revenue
Total financing revenue and other interest income		$	494			$	552			$	605			$	662			$	656			$	(58	)		$	(162	)
Interest expense			500				602				631				668				606				(102	)			(106	)
Net financing revenue			(6	)			(50	)			(26	)			(6	)			50				44				(56	)
Other revenue
Other gain/(loss) on investments, net			(1	)			(6	)			8				(11	)			-				5				(1	)
Other income, net of losses (1)			40				26				41				46				53				14				(13	)
Total other revenue			39				20				49				35				53				19				(14	)
Total net revenue			33				(30	)			23				29				103				63				(70	)
Provision for loan losses			72				60				78				61				81				12				(9	)
Noninterest expense
Compensation and benefits expense			234				281				242				252				239				(47	)			(5	)
Goodwill impairment			-				-				149				-				-				-				-
Other operating expense (2)			(40	)			(35	)			16				(41	)			(18	)			(5	)			(22	)
Total noninterest expense			194				246				407				211				221				(52	)			(27	)
Pre-tax (loss) income		$	(233	)		$	(336	)		$	(462	)		$	(243	)		$	(199	)		$	103			$	(34	)
Change in the fair value of equity securities (3)			1				6				(7	)			10				-				(5	)			1
Core OID (4)			14				13				13				12				12				1				2
Repositioning (3)			-				10				172				30				-				(10	)			-
Core pre-tax (loss) income (4)		$	(218	)		$	(307	)		$	(284	)		$	(191	)		$	(187	)		$	88			$	(31	)
Balance Sheet (Period-End)
Cash, trading and investment securities		$	30,684			$	31,990			$	31,511			$	31,955			$	35,139			$	(1,306	)		$	(4,455	)
Loans held-for-sale, net			52				113				109				158				203				(61	)			(151	)
Consumer loans			2,088				1,995				2,121				3,958				3,751				93				(1,663	)
Commercial loans			241				242				223				223				215				(1	)			26
Intercompany loans(5)			(727	)			(719	)			(619	)			(547	)			(510	)			(8	)			(217	)
Allowance for loan losses			(307	)			(297	)			(299	)			(480	)			(482	)			(10	)			175
Total finance receivables and loans, net			1,295				1,221				1,426				3,154				2,974				74				(1,679	)
Other assets			7,675				7,127				7,179				7,465				7,091				548				584
Assets of operations held-for-sale (6)			-				-				1,975				-				-				-				-
Total assets		$	39,706			$	40,451			$	42,200			$	42,732			$	45,407			$	(745	)		$	(5,701	)
Core OID Amortization Schedule (4)		2024				2025				2026				2027				2028 & After
Remaining Core OID amortization expense		$	29			$	66			$	77			$	89				Avg = $126/yr

 

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

(2) Other operating expenses includes corporate overhead allocated to the other business segments. Amounts of corporate overhead allocated were $335 million for 2Q24, $346 million for 1Q24, $342 million for 4Q23, $348 million for 3Q23, and $331 million for 2Q23. The receiving business segment records the allocation of corporate overhead expense within other operating expenses.

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

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

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

(6) Unsecured lending from point-of-sale financing. Moved to Assets of Operations Held-For-Sale (HFS) on 12/31/23. Sale of Ally Lending closed on 03/01/24.

Note: Numbers may not foot due to rounding

 

		14

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ALLY FINANCIAL INC. CREDIT RELATED INFORMATION

 

($ in millions)		QUARTERLY TRENDS																				CHANGE VS.
Asset Quality - Consolidated (1)		2Q 24				1Q 24				4Q 23				3Q 23				2Q 23				1Q 24				2Q 23
Ending loan balance		$	138,783			$	137,960			$	139,439			$	140,260			$	138,449			$	823			$	334
30+ Accruing DPD		$	3,737			$	3,347			$	3,856			$	3,459			$	3,169			$	390			$	568
30+ Accruing DPD %			2.69%				2.43%				2.76%				2.47%				2.29%
60+ Accruing DPD		$	1,087			$	948			$	1,077			$	934			$	841			$	139			$	246
60+ Accruing DPD %			0.78%				0.69%				0.77%				0.67%				0.61%
Non-performing loans (NPLs)		$	1,215			$	1,252			$	1,394			$	1,500			$	1,404			$	(37	)		$	(189	)
Net charge-offs (NCOs)		$	435			$	539			$	623			$	456			$	399			$	(104	)		$	36
Net charge-off rate (2)			1.26%				1.55%				1.77%				1.31%				1.16%
Provision for loan losses		$	457			$	507			$	587			$	508			$	427			$	(50	)		$	30
Allowance for loan losses (ALLL)		$	3,572			$	3,550			$	3,587			$	3,837			$	3,781			$	22			$	(209	)
ALLL as % of Loans (3) (4)			2.57%				2.57%				2.57%				2.73%				2.72%
ALLL as % of NPLs (3)			294%				284%				257%				256%				269%
ALLL as % of NCOs (3)			205%				165%				144%				211%				237%
U.S. Auto Delinquencies - HFI Retail Contract $’s (5)
30+ Delinquent contract $		$	3,620			$	3,239			$	3,730			$	3,290			$	3,032			$	381			$	588
% of retail contract $outstanding			4.33%				3.88%				4.42%				3.85%				3.60%
60+ Delinquent contract $		$	1,049			$	915			$	1,037			$	878			$	796			$	134			$	253
% of retail contract $ outstanding			1.26%				1.10%				1.23%				1.03%				0.94%
U.S. Auto Annualized Net Charge-Offs - HFI Retail Contract $’s
Net charge-offs		$	378			$	477			$	470			$	393			$	277			$	(99	)		$	101
% of avg. HFI assets (2)			1.81%				2.27%				2.21%				1.85%				1.32%
U.S. Auto Annualized Net Charge-Offs - HFI Commercial Contract $’s
Net charge-offs		$	(4	)		$	1			$	19			$	(0	)		$	4			$	(5	)		$	(8	)
% of avg. HFI assets (2)			(0.07	)%			0.02%				0.34%				-%				0.09%

 

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

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

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

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

(5) Auto delinquency metrics include accruing contracts only.

Note: Numbers may not foot due to rounding

 

		15

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ALLY FINANCIAL INC. CREDIT RELATED INFORMATION, CONTINUED

 

( $ in millions)
Automotive Finance (1)		QUARTERLY TRENDS																				CHANGE VS.
Consumer		2Q 24				1Q 24				4Q 23				3Q 23				2Q 23				1Q 24				2Q 23
Allowance for loan losses		$	3,055			$	3,050			$	3,083			$	3,104			$	3,064			$	5			$	(9	)
Total consumer loans (2)		$	83,528			$	83,406			$	84,320			$	85,370			$	84,294			$	122			$	(766	)
Coverage ratio (3)			3.65%				3.65%				3.65%				3.62%				3.62%
Commercial
Allowance for loan losses		$	37			$	33			$	34			$	49			$	39			$	4			$	(2	)
Total commercial loans		$	25,220			$	23,765			$	23,334			$	21,057			$	20,732			$	1,455			$	4,488
Coverage ratio			0.15%				0.14%				0.15%				0.23%				0.19%
Mortgage (1)
Consumer
Mortgage Finance
Allowance for loan losses		$	17			$	18			$	18			$	19			$	20			$	(1	)		$	(3	)
Total consumer loans		$	17,803			$	18,227			$	18,442			$	18,657			$	18,894			$	(424	)		$	(1,091	)
Coverage ratio			0.09%				0.10%				0.10%				0.10%				0.10%
Mortgage - Legacy
Allowance for loan losses		$	2			$	3			$	3			$	3			$	3			$	(1	)		$	(1	)
Total consumer loans		$	205			$	214			$	225			$	238			$	255			$	(9	)		$	(50	)
Coverage ratio			1.15%				1.26%				1.32%				1.29%				1.28%
Total Mortgage
Allowance for loan losses		$	19			$	21			$	21			$	22			$	23			$	(2	)		$	(4	)
Total consumer loans		$	18,008			$	18,441			$	18,667			$	18,895			$	19,149			$	(433	)		$	(1,141	)
Coverage ratio			0.11%				0.11%				0.11%				0.11%				0.12%
Consumer Other - Ally Lending (1) (4)
Allowance for loan losses		$	-			$	-			$	-			$	202			$	210			$	-			$	(210	)
Total consumer loans		$	-			$	-			$	-			$	2,206			$	2,170			$	-			$	(2,170	)
Coverage ratio			-%				-%				-%				9.16%				9.68%
Consumer Other - Ally Credit Card (1)
Allowance for loan losses		$	302			$	291			$	293			$	272				266			$	11			$	36
Total consumer loans		$	2,049			$	1,962			$	1,990			$	1,872				1,757			$	87			$	292
Coverage ratio			14.73%				14.85%				14.72%				14.55%				15.14%
Corporate Finance (1)
Allowance for loan losses		$	156			$	152			$	153			$	185			$	176			$	4			$	(20	)
Total commercial loans		$	9,737			$	10,144			$	10,905			$	10,636			$	10,132			$	(407	)		$	(395	)
Coverage ratio			1.60%				1.50%				1.40%				1.74%				1.74%
Corporate and Other (1)
Allowance for loan losses		$	3			$	3			$	3			$	3			$	3			$	-			$	-
Total commercial loans		$	241			$	242			$	223			$	224			$	215			$	(1	)		$	26
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 ($166M) of fair value adjustment for loans in hedge accounting relationships in 2Q24, ($181M) in 1Q24, ($93M) in 4Q23, ($358M) in 3Q23 and ($432M) in 2Q23.

(3) Excludes ($166M) of fair value adjustment for loans in hedge accounting relationships in 2Q24, ($181M) in 1Q24, ($93M) in 4Q23, ($358M) in 3Q23 and ($432M) in 2Q23.

(4) Unsecured consumer lending from point-of-sale financing. Moved to Assets of Operations Held for Sale on 12/31/2023. Sale of Ally Lending closed on 03/01/2024.

Note: Numbers may not foot due to rounding

 

		16

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ALLY FINANCIAL INC. CAPITAL

 

($ in billions)		QUARTERLY TRENDS																				CHANGE VS.
Capital		2Q 24				1Q 24				4Q 23				3Q 23				2Q 23				1Q 24				2Q 23
Risk-weighted assets		$	157.5			$	158.3			$	161.6			$	161.1			$	159.2			$	(0.8	)		$	(1.7	)
Common Equity Tier 1 (CET1) capital ratio			9.6%				9.4%				9.4%				9.3%				9.3%
Tier 1 capital ratio			11.0%				10.8%				10.8%				10.7%				10.7%
Total capital ratio			12.7%				12.5%				12.4%				12.5%				12.5%
Tangible common equity / Tangible assets (1)(2)			5.6%				5.5%				5.5%				4.9%				5.3%
Tangible common equity / Risk-weighted assets (1)			6.9%				6.7%				6.6%				6.0%				6.5%
Shareholders’ equity		$	13.9			$	13.7			$	13.8			$	12.8			$	13.5			$	0.2			$	0.4
add: CECL phase-in adjustment			0.3				0.3				0.6				0.6				0.6				-				(0.3	)
less:   Certain AOCI items and other adjustments			3.3				3.3				3.1				3.9				3.0				-				0.3
Preferred equity			(2.3	)			(2.3	)			(2.3	)			(2.3	)			(2.3	)			-				-
Common Equity Tier 1 capital		$	15.1			$	14.9			$	15.1			$	15.0			$	14.8			$	0.2			$	0.3
Common Equity Tier 1 capital		$	15.1			$	14.9			$	15.1			$	15.0			$	14.8			$	0.2			$	0.3
add: Preferred equity			2.3				2.3				2.3				2.3				2.3				-				-
less:   Other adjustments			(0.1	)			(0.1	)			(0.1	)			(0.1	)			(0.1	)			-				-
Tier 1 capital		$	17.4			$	17.2			$	17.4			$	17.3			$	17.1			$	0.2			$	0.3
Tier 1 capital		$	17.4			$	17.2			$	17.4			$	17.3			$	17.1			$	0.2			$	0.3
add: Qualifying subordinated debt			0.7				0.7				0.7				0.9				0.9				-				(0.2	)
Allowance for loan and lease losses includible in Tier 2 capital and other adjustments			1.9				1.9				2.0				2.0				1.9				-				-
Total capital		$	20.0			$	19.8			$	20.1			$	20.1			$	19.9			$	0.2			$	0.1
Total shareholders’ equity		$	13.9			$	13.7			$	13.8			$	12.8			$	13.5			$	0.2			$	0.4
less:   Preferred equity			(2.3	)			(2.3	)			(2.3	)			(2.3	)			(2.3	)			-				-
Goodwill and intangible assets, net of deferred tax liabilities			(0.7	)			(0.7	)			(0.7	)			(0.9	)			(0.9	)			-				0.2
Tangible common equity (1)		$	10.8			$	10.6			$	10.7			$	9.6			$	10.3			$	0.2			$	0.5
Total assets		$	192.5			$	192.9			$	196.4			$	195.7			$	197.2			$	(0.4	)		$	(4.7	)
less:   Goodwill and intangible assets, net of deferred tax liabilities			(0.7	)			(0.7	)			(0.7	)			(0.9	)			(0.9	)			-				0.2
Tangible assets (2)		$	191.8			$	192.2			$	195.7			$	194.8			$	196.4			$	(0.4	)		$	(4.6	)

 

Note: Numbers may not foot due to rounding

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

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

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

 

		17

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ALLY FINANCIAL INC. LIQUIDITY AND DEPOSITS

 

		QUARTERLY TRENDS																				CHANGE VS.
Consolidated Available Liquidity ($ in billions)		2Q 24				1Q 24				4Q 23				3Q 23				2Q 23				1Q 24				2Q 23
Liquid cash and cash equivalents (1)		$	6.7			$	7.4			$	6.5			$	8.0			$	9.5			$	(0.7	)		$	(2.7	)
Highly liquid securities (2)			18.9				20.9				20.6				19.6				20.7				(2.0	)			(1.8	)
Subtotal		$	25.6			$	28.3			$	27.1			$	27.6			$	30.2			$	(2.7	)		$	(4.6	)
FHLB Unused Pledged Borrowing Capacity			12.2				13.8				10.3				11.0				12.3				(1.6	)			(0.1	)
FRB Discount Window Unused Pledged Capacity			26.5				26.3				26.0				25.6				2.1				0.2				24.4
Total unused pledged capacity		$	38.8			$	40.0			$	36.4			$	36.6			$	14.4			$	(1.3	)		$	24.4
Total current available liquidity		$	64.3			$	68.3			$	63.5			$	64.1			$	44.6			$	(4.0	)		$	19.8
Unsecured Long-Term Debt Maturity Profile		2024				2025				2026				2027				2028				2029 & After
Consolidated remaining maturities (3)		$	0.7			$	2.3			$	—			$	1.5			$	0.8			$	4.6
Ally Bank Deposits
Key Deposit Statistics
Average retail CD maturity (months)			18.7				18.6				19.0				19.1				16.2				0.1				2.5
Average retail deposit rate			4.18%				4.25%				4.15%				4.00%				3.68%
End of Period Deposit Levels ($ in millions)
Retail		$	142,075			$	145,147			$	142,265			$	140,100			$	138,983			$	(3,072	)		$	3,092
Brokered & other			10,079				9,937				12,401				12,735				15,327				142				(5,248	)
Total deposits		$	152,154			$	155,084			$	154,666			$	152,835			$	154,310			$	(2,930	)		$	(2,156	)
Deposit Mix
Retail CD			26%				27%				29%				28%				27%
MMA/OSA/Checking			67%				67%				63%				64%				63%
Brokered & other			7%				6%				8%				8%				10%

 

(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 MBS, and highly liquid Corporates

(3) Excludes retail notes; as of 6/30/2024. Reflects notional value of outstanding bond. Excludes total GAAP OID and capitalized transaction costs.

Note: Numbers may not foot due to rounding

 

		18

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ALLY FINANCIAL INC. NET INTEREST MARGIN

 

($ in millions)		QUARTERLY TRENDS																				CHANGE VS.
Average Balance Details		2Q 24				1Q 24				4Q 23				3Q 23				2Q 23				1Q 24				2Q 23
Retail Auto Loans		$	83,427			$	84,056			$	84,711			$	85,131			$	84,097			$	(629)			$	(670)
Auto Lease (net of dep)			8,619				8,955				9,415				9,817				10,110				(336)				(1,491)
Dealer Floorplan			18,003				16,833				15,693				14,507				13,764				1,170				4,239
Other Dealer Loans			6,421				6,339				6,115				6,023				5,945				82				476
Corporate Finance			10,079				10,937				10,787				10,309				10,240				(858)				(161)
Mortgage(1)			18,302				18,578				18,788				19,028				19,325				(276)				(1,023)
Consumer Other - Ally Lending (2)			—				1,274				2,167				2,201				2,114				(1,274)				(2,114)
Consumer Other - Ally Credit Card			2,001				1,975				1,925				1,826				1,701				26				300
Cash and Cash equivalents			7,311				7,709				7,571				8,308				7,401				(398)				(90)
Investment Securities and Other			29,542				30,274				29,784				30,769				31,958				(732)				(2,416)
Total Earning Assets		$	183,705			$	186,930			$	186,956			$	187,920			$	186,655			$	(3,225)			$	(2,950)
Interest Revenue			3,361				3,378				3,401				3,383				3,254				(17)				107
Unsecured Debt (ex. Core OID balance) (3)		$	11,053			$	11,290			$	10,595			$	11,590			$	11,442			$	(237)			$	(389)
Secured Debt			1,227				1,409				2,279				3,120				2,879				(182)				(1,652)
Deposits (4)			152,412				155,352				153,672				153,526				152,382				(2,940)				30
Other Borrowings			7,114				7,122				8,572				7,365				7,592				(8)				(478)
Total Funding Sources (ex. Core OID balance) (3)		$	171,806			$	175,173			$	175,118			$	175,601			$	174,295			$	(3,367)			$	(2,489)
Interest Expense (ex. Core OID) (3)			1,852				1,909				1,895				1,838				1,669				(57)				183
Net Financing Revenue (ex. Core OID) (3)		$	1,509			$	1,469			$	1,506			$	1,545			$	1,585			$	40			$	(76)
Net Interest Margin (yield details)
Retail Auto Loan			9.19%				9.07%				8.98%				8.90%				8.81%				0.12%				0.38%
Retail Auto Loan (excl. hedge impact)			8.86%				8.65%				8.43%				8.16%				7.87%				0.21%				0.99%
Auto Lease (net of dep)			7.28%				6.85%				6.24%				7.00%				7.60%				0.43%				(0.32)%
Dealer Floorplan			7.64%				7.69%				7.84%				7.88%				7.71%				(0.05)%				(0.07)%
Other Dealer Loans			5.67%				5.61%				5.35%				5.25%				5.16%				0.06%				0.51%
Corporate Finance			10.06%				9.88%				9.70%				9.54%				9.15%				0.18%				0.91%
Mortgage			3.26%				3.25%				3.21%				3.20%				3.22%				0.01%				0.04%
Consumer Other - Ally Lending			—				8.77%				9.86%				9.94%				9.99%				(8.77)%				(9.99)%
Consumer Other - Ally Credit Card			21.59%				21.61%				22.02%				22.39%				21.88%				(0.02)%				(0.29)%
Cash and Cash Equivalents			4.87%				5.04%				4.72%				4.73%				4.70%				(0.17)%				0.17%
Investment Securities and Other			3.66%				3.60%				3.66%				3.53%				3.17%				0.06%				0.49%
Total Earning Assets			7.36%				7.27%				7.22%				7.14%				6.99%				0.09%				0.37%
Unsecured Debt (ex. Core OID & Core OID balance) (3)			6.22%				6.19%				6.08%				5.55%				5.40%				0.03%				0.82%
Secured Debt			6.08%				5.74%				5.15%				6.81%				5.61%				0.34%				0.47%
Deposits (4)			4.21%				4.28%				4.19%				4.04%				3.74%				(0.07	)%			0.47%
Other Borrowings (5)			3.86%				3.63%				3.79%				3.23%				3.00%				0.23%				0.86%
Total Funding Sources (ex. Core OID & Core OID balance) (3)			4.34%				4.38%				4.29%				4.15%				3.84%				(0.04)%				0.50%
NIM (as reported)			3.27%				3.13%				3.17%				3.24%				3.38%				0.14%				(0.11)%
NIM (ex. Core OID & Core OID balance) (3)			3.30%				3.16%				3.20%				3.26%				3.41%				0.14%				(0.11)%

 

(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 lending from point-of-sale financing. Sale of Ally Lending closed on 03/01/24.

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

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

(5) Includes FHLB Borrowings, Repurchase Agreements and other.

Note: Numbers may not foot due to rounding

 

		19

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ALLY FINANCIAL INC. ALLY BANK CONSUMER MORTGAGE HFI PORTFOLIOS (PERIOD-END)

 

($ in billions)		QUARTERLY TRENDS
Mortgage Finance HFI Portfolio		2Q 24				1Q 24				4Q 23				3Q 23				2Q 23
Loan Value
Gross carry value		$	17.8			$	18.2			$	18.4			$	18.7			$	18.9
Net carry value		$	17.8			$	18.2			$	18.4			$	18.6			$	18.9
Estimated Pool Characteristics
% Second lien			0.0%				0.0%				0.0%				0.0%				0.0%
% Interest only			0.0%				0.0%				0.0%				0.0%				0.0%
% 30+ Day delinquent(1)(2)			0.5%				0.4%				0.5%				0.5%				0.4%
% Low/No documentation			0.0%				0.0%				0.0%				0.0%				0.0%
% Non-primary residence			4.1%				4.1%				4.1%				4.1%				4.1%
Refreshed FICO(3)			783				781				782				782				782
Wtd. Avg. LTV/CLTV (4)			50.3%				50.7%				52.2%				53.1%				54.5%
Corporate Other Legacy Mortgage HFI Portfolio
Loan Value
Gross carry value		$	0.2			$	0.2			$	0.2			$	0.2			$	0.3
Net carry value		$	0.2			$	0.2			$	0.2			$	0.2			$	0.3
Estimated Pool Characteristics
% Second lien			12.5%				12.5%				12.5%				12.4%				12.5%
% Interest only			0.2%				0.2%				0.2%				0.2%				0.0%
% 30+ Day delinquent(1)(2)			6.1%				7.0%				7.0%				6.7%				6.6%
% Low/No documentation			26.0%				25.8%				25.5%				25.2%				24.8%
% Non-primary residence			3.0%				3.1%				3.1%				3.2%				3.4%
Refreshed FICO(3)			742				739				742				743				742
Wtd. Avg. LTV/CLTV (4)			44.6%				45.0%				46.9%				47.3%				48.1%

 

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.

Note: Numbers may not foot due to rounding

 

		20

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ALLY FINANCIAL INC. EARNINGS PER SHARE RELATED INFORMATION

 

($ in millions, shares in thousands)		QUARTERLY TRENDS																				CHANGE VS.
Earnings Per Share Data		2Q 24				1Q 24				4Q 23				3Q 23				2Q 23				1Q 24				2Q 23
GAAP net income attributable to common shareholders		$	266			$	129			$	49			$	269			$	301			$	137			$	(35	)
Weighted-average common shares outstanding - basic			306,774				306,003				304,506				304,134				303,684				772				3,090
Weighted-average common shares outstanding - diluted			309,886				308,421				306,730				305,693				304,646				1,465				5,241
Issued shares outstanding (period-end)			304,656				303,978				302,459				301,630				301,619				678				3,037
Net income per share - basic		$	0.87			$	0.42			$	0.16			$	0.88			$	0.99			$	0.45			$	(0.12	)
Net income per share - diluted		$	0.86			$	0.42			$	0.16			$	0.88			$	0.99			$	0.44			$	(0.13	)
Adjusted Earnings per Share (“Adjusted EPS”) (2)
Numerator
GAAP net income attributable to common shareholders		$	266			$	129			$	49			$	269			$	301			$	137			$	(35	)
Discontinued operations, net of tax			-				-				1				-				-				-				-
Core OID			14				13				13				12				12				1				2
Change in the fair value of equity securities (3)			28				(11	)			(74	)			56				(25	)			39				53
Core OID, repositioning & change in the fair value of equity securities tax (tax rate 21%)			(9	)			(3	)			(23	)			(21	)			3				(6	)			(12	)
Repositioning (3)			-				10				172				30				-				(10	)			-
Significant discrete tax items			-				-				-				(94	)			-				-				-
Core net income attributable to common shareholders (1)		$	299			$	139			$	137			$	252			$	291			$	161			$	8
Denominator
Weighted-average common shares outstanding - diluted			309,886				308,421				306,730				305,693				304,646				1,465				5,241
Adjusted EPS (2)		$	0.97			$	0.45			$	0.45			$	0.83			$	0.96			$	0.52			$	0.01
GAAP original issue discount amortization expense		$	17			$	17			$	16			$	15			$	15			$	-			$	2
Other OID			(3	)			(3	)			(3	)			(3	)			(3	)			0				0
Core original issue discount (Core OID) amortization expense (1)		$	14			$	13			$	13			$	12			$	12			$	1			$	2
GAAP outstanding original issue discount balance		$	(797	)		$	(815	)		$	(831	)		$	(847	)		$	(863	)		$	18			$	66
Other outstanding OID balance			31				35				39				42				45				(4	)			(14	)
Core outstanding original issue discount balance (Core OID balance) (1)		$	(766	)		$	(779	)		$	(793	)		$	(806	)		$	(818	)		$	14			$	52
GAAP Net Financing Revenue [A]		$	1,495			$	1,456			$	1,493			$	1,533			$	1,573			$	39			$	(78	)
Core OID			14				13				13				12				12				1				2
Net Financing Revenue (ex. Core OID) (1) [B]		$	1,509			$	1,469			$	1,506			$	1,545			$	1,585			$	40			$	(76	)
GAAP Other Revenue [C]		$	505			$	530			$	574			$	435			$	506			$	(25	)		$	(1	)
Change in the fair value of equity securities (3)			28				(11	)			(74	)			56				(25	)			39				53
Adjusted Other Revenue (1) [D]		$	533			$	519			$	500			$	491			$	481			$	14			$	52
GAAP Provision Expense		$	457			$	507			$	587			$	508			$	427			$	(50	)		$	30
Repositioning			-				-				16				-				-				-				-
Adjusted Provision (ex. Repositioning) (1)		$	457			$	507			$	603			$	508			$	427			$	(50	)		$	30
GAAP Noninterest Expense [E]		$	1,286			$	1,308			$	1,416			$	1,232			$	1,249			$	(22	)		$	37
Repositioning and other			-				(10	)			(187	)			(30	)			-				10				-
Adjusted Noninterest Expense (1) [F]		$	1,286			$	1,298			$	1,229			$	1,202			$	1,249			$	(12	)		$	37

 

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

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

25-27 for details.

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

Note: Numbers may not foot due to rounding

 

		21

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ALLY FINANCIAL INC. ADJUSTED TANGIBLE BOOK PER SHARE RELATED INFORMATION

 

($ in millions, shares in thousands)

		QUARTERLY TRENDS																				CHANGE VS.
Adjusted Tangible Book Value Per Share (“Adjusted TBVPS”) Information		2Q 24				1Q 24				4Q 23				3Q 23				2Q 23				1Q 24				2Q 23
Numerator
GAAP shareholder’s equity		$	13,851			$	13,657			$	13,766			$	12,825			$	13,532			$	194			$	319
Preferred equity			(2,324	)			(2,324	)			(2,324	)			(2,324	)			(2,324	)			-				-
GAAP common shareholder’s equity		$	11,527			$	11,333			$	11,442			$	10,501			$	11,208			$	194			$	319
Goodwill and identifiable intangibles, net of DTLs			(713	)			(720	)			(727	)			(879	)			(887	)			7				174
Tangible common equity (1)			10,814				10,613				10,715				9,622				10,321				201				493
Tax-effected Core OID balance (21% tax rate) (1)			(605	)			(616	)			(626	)			(636	)			(646	)			11				41
Adjusted tangible book value (2)		$	10,209			$	9,997			$	10,089			$	8,986			$	9,675			$	212			$	534
Denominator
Issued shares outstanding (period-end, thousands)			304,656				303,978				302,459				301,630				301,619				678				3,037
GAAP shareholder’s equity per share		$	45.46			$	44.93			$	45.51			$	42.52			$	44.86			$	0.54			$	0.60
Preferred equity per share			(7.63	)			(7.65	)			(7.68	)			(7.70	)			(7.71	)			0.02				0.08
GAAP common shareholder’s equity per share		$	37.84			$	37.28			$	37.83			$	34.81			$	37.16			$	0.55			$	0.68
Goodwill and identifiable intangibles, net of DTLs per share			(2.34	)			(2.37	)			(2.40	)			(2.91	)			(2.94	)			0.03				0.60
Tangible common equity per share (1)			35.50				34.91				35.43				31.90				34.22				0.58				1.28
Tax-effected Core OID balance (21% tax rate) per share (1)			(1.99	)			(2.03	)			(2.07	)			(2.11	)			(2.14	)			0.04				0.16
Adjusted tangible book value per share (2)		$	33.51			$	32.89			$	33.36			$	29.79			$	32.08			$	0.62			$	1.43

 

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

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

Note: Numbers may not foot due to rounding

 

		22

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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 24				1Q 24				4Q 23				3Q 23				2Q 23				1Q 24				2Q 23
Numerator
GAAP net income attributable to common shareholders		$	266			$	129			$	49			$	269			$	301			$	137			$	(35	)
Discontinued operations, net of tax			-				-				1				-				-				-				-
Core OID (2)			14				13				13				12				12				1				2
Change in the fair value of equity securities			28				(11	)			(74	)			56				(25	)			39				53
Core OID, repositioning & change in the fair value of equity securities tax (tax rate 21%)			(9	)			(3	)			(23	)			(21	)			3				(6	)			(12	)
Repositioning (2)			-				10				172				30				-				(10	)			-
Significant discrete tax items			-				-				-				(94	)			-				-				-
Core net income attributable to common shareholders (1)		$	299			$	139			$	137			$	252			$	291			$	161			$	8
Denominator (average, $ millions)
GAAP shareholder’s equity		$	13,754			$	13,712			$	13,296			$	13,179			$	13,455			$	43			$	299
Preferred equity			(2,324	)			(2,324	)			(2,324	)			(2,324	)			(2,324	)			-				-
Goodwill & identifiable intangibles, net of deferred tax liabilities (“DTLs”)			(717	)			(723	)			(803	)			(883	)			(891	)			7				174
Tangible common equity (1)		$	10,713			$	10,664			$	10,169			$	9,972			$	10,240			$	49			$	473
Core OID balance			(773	)			(786	)			(799	)			(812	)			(824	)			14				51
Net deferred tax asset (“DTA”)			(1,388	)			(1,278	)			(1,378	)			(1,310	)			(1,060	)			(110	)			(328	)
Normalized common equity		$	8,553			$	8,600			$	7,992			$	7,850			$	8,357			$	(47	)		$	196
Core Return on Tangible Common Equity (3)			14.0%				6.5%				6.9%				12.9%				13.9%

 

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

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

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

(1)

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

(2)

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

Note: Numbers may not foot due to rounding

 

		23

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ALLY FINANCIAL INC. ADJUSTED EFFICIENCY RATIO RELATED INFORMATION

 

($ in millions)

		QUARTERLY TREND																				CHANGE VS.
Adjusted Efficiency Ratio Calculation		2Q 24				1Q 24				4Q 23				3Q 23				2Q 23				1Q 24				2Q 23
Numerator
GAAP Noninterest Expense		$	1,286			$	1,308			$	1,416			$	1,232			$	1,249			$	(22	)		$	37
Insurance expense			(410	)			(343	)			(321	)			(338	)			(358	)			(67	)			(52	)
Repositioning (2)			-				(10	)			(187	)			(30	)			-				10				-
Adjusted noninterest expense for the efficiency ratio		$	876			$	955			$	908			$	864			$	891			$	(79	)		$	(15	)
Denominator
Total net revenue		$	2,000			$	1,986			$	2,067			$	1,968			$	2,079			$	14			$	(79	)
Core OID (2)			14				13				13				12				12				1				2
Insurance revenue			(368	)			(413	)			(450	)			(322	)			(366	)			45				(2	)
Adjusted net revenue for the efficiency ratio		$	1,646			$	1,586			$	1,630			$	1,658			$	1,725			$	60			$	(79	)
Adjusted Efficiency Ratio (1)			53.2%				60.2%				55.7%				52.1%				51.7%

 

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

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

Note: Numbers may not foot due to rounding

 

		24

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ALLY FINANCIAL INC.

 

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

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

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

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

 

(1)

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

 

(2)

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

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

5) Adjusted other revenue is a non-GAAP financial measure that adjusts GAAP other revenue for OID expenses, repositioning, and change in fair value of equity securities.

Management believes adjusted other revenue is a helpful financial metric because it enables the reader to better understand the business’ ability to generate other revenue.

6) Adjusted Provision for Credit Losses is a non-GAAP financial measure that adjusts GAAP provision for credit losses for repositioning items. Management believes adjusted provision for credit losses is a helpful financial metric because it enables the reader better understand the business’s expenses excluding nonrecurring items.

7) Adjusted tangible book value per share (Adjusted TBVPS) is a non-GAAP financial measure that reflects the book value of equity attributable to shareholders even if Core OID balance were accelerated immediately through the financial statements. As a result, management believes Adjusted TBVPS provides the reader with an assessment of value that is more conservative than GAAP common shareholder’s equity per share. Adjusted TBVPS generally adjusts common equity for: (1) goodwill and identifiable intangibles, net of DTLs, (2) tax-effected Core OID balance to reduce tangible common equity in the event the corresponding discounted bonds are redeemed/tendered, and (3) Series G discount which reduces tangible common equity as the company has normalized its capital structure, as applicable for respective periods. Note: In December 2017, tax-effected Core OID balance was adjusted from a statutory U.S. Federal tax rate of 35% to 21% (“rate”) as a result of changes to U.S. tax law. The adjustment conservatively increased the tax-effected Core OID balance and consequently reduced Adjusted TBVPS as any acceleration of the non-cash charge in future periods would flow through the financial statements at a 21% rate versus a previously modeled 35% rate.

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

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

 

		25

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ALLY FINANCIAL INC.

 

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

10) 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.

11) 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.

12) 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.

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

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

 

(1)

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

 

(2)

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

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

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

 

		26

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ALLY FINANCIAL INC.

 

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

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

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

19) Repositioning is primarily related to the extinguishment of high-cost legacy debt, strategic activities, restructuring, amounts related to nonrecurring business transactions or pending transactions, and significant other one-time items.

20) 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.

 

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v3.24.2

Document and Entity Information	Jul. 17, 2024
Cover [Abstract]
Entity Central Index Key	0000040729
Amendment Flag	false
Document Type	8-K
Document Period End Date	Jul. 17, 2024
Entity File Number	1-3754
Entity Registrant Name	ALLY FINANCIAL INC.
Entity Incorporation State Country Code	DE
Entity Tax Identification Number	38-0572512
Entity Address, Address Description	Ally Detroit Center
Entity Address, Address Line One	500 Woodward Ave.
Entity Address, Address Line Two	Floor 10
Entity Address, City or Town	Detroit
Entity Address, State or Province	MI
Entity Address, Postal Zip Code	48226
City Area Code	866
Local Phone Number	710-4623
Written Communications	false
Soliciting Material	false
Pre Commencement Tender Offer	false
Pre Commencement Issuer Tender Offer	false
Security Exchange Name	NYSE
Security 12b Title	Common Stock, par value $0.01 per share
Trading Symbol	ALLY
Entity Emerging Growth Company	false

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