EX-99.3

EX-99.3 4 d691923dex993.htm EX-99.3 EX-99.3

Exhibit 99.3

LOGO

FOURTH QUARTER 2023

FINANCIAL SUPPLEMENT

ALLY FINANCIAL INC.

FORWARD-LOOKING STATEMENTS AND ADDITIONAL INFORMATION

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

This document and related communications contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements can be identified by the fact that they do not relate strictly to historical or current facts—such as statements about the outlook for financial and operating metrics, and future capital allocation and actions. Forward-looking statements often use words such as “believe,” “expect,” “anticipate,” “intend,” “pursue,” “seek,” “continue,” “estimate,” “project,” “outlook,” “forecast,” “potential,” “target,” “objective,” “trend,” “plan,” “goal,” “initiative,” “priorities,” or other words of comparable meaning or future-tense or conditional verbs such as “may,” “will,” “should,” “would,” or “could.” Forward-looking statements convey our expectations, intentions, or forecasts about future events, circumstances, or results. All forward-looking statements, by their nature, are subject to assumptions, risks, and uncertainties, which may change over time and many of which are beyond our control. You should not rely on any forward-looking statement as a prediction or guarantee about the future. Actual future objectives, strategies, plans, prospects, performance, conditions, or results may differ materially from those set forth in any forward-looking statement. Some of the factors that may cause actual results or other future events or circumstances to differ from those in forward-looking statements are described in our Annual Report on Form 10-K for the year ended December 31, 2022, our subsequent Quarterly Reports on Form 10-Q or Current Reports on Form 8-K, or other applicable documents that are filed or furnished with the U.S. Securities and Exchange Commission (collectively, our “SEC filings”). Any forward-looking statement made by us or on our behalf speaks only as of the date that it was made. We do not undertake to update any forward-looking statement to reflect the impact of events, circumstances, or results that arise after the date that the statement was made, except as required by applicable securities laws. You, however, should consult further disclosures (including disclosures of a forward-looking nature) that we may make in any subsequent SEC filings.

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

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


4Q 2023 Preliminary Results		2

ALLY FINANCIAL INC.

TABLE OF CONTENTS


			Page(s)
Consolidated Results

Consolidated Financial Highlights			4

Consolidated Income Statement			5

Consolidated Period-End Balance Sheet			6

Consolidated Average Balance Sheet			7

Segment Detail

Segment Highlights			8

Automotive Finance			9-10

Insurance			11

Mortgage Finance			12

Corporate Finance			13

Corporate and Other			14

Credit Related Information			15-16

Supplemental Detail

Capital			17

Liquidity and Deposits			18

Net Interest Margin			19

Ally Bank Consumer Mortgage HFI Portfolios			20

Earnings Per Share Related Information			21

Adjusted Tangible Book Per Share Related Information			22

Core ROTCE Related Information			23

Adjusted Efficiency Ratio Related Information			24


4Q 2023 Preliminary Results		3

ALLY FINANCIAL INC.

CONSOLIDATED FINANCIAL HIGHLIGHTS


($ in millions, shares in thousands)	QUARTERLY TRENDS															CHANGE VS.						FULL YEAR
Selected Income Statement Data	4Q 23			3Q 23			2Q 23			1Q 23			4Q 22			3Q 23			4Q 22			FY 2023			FY 2022			CHANGE

Net financing revenue		1,493			1,533			1,573			1,602			1,674			(40	)		(181	)		6,201			6,850			(649	)

Core OID		13			12			12			11			11			0			2			48			42			7

Net financing revenue (excluding Core OID) ⁽¹⁾		1,506			1,545			1,585			1,613			1,685			(40	)		(179	)		6,249			6,892			(642	)

Other revenue		574			435			506			498			527			139			47			2,013			1,578			435

Change in fair value of equity securities ⁽²⁾		(74	)		56			(25	)		(65	)		(49	)		(130	)		(25	)		(107	)		215			(322	)

Adjusted other revenue ⁽¹⁾		500			491			481			433			478			9			22			1,906			1,793			113

Provision for credit losses		587			508			427			446			490			79			97			1,968			1,399			569

Repositioning		(16	)		—			—			—			—			(16	)		(16	)		(16	)		—			(16	)

Adjusted Provision for Credit Losses ⁽¹⁾		603			508			427			446			490			95			113			1,984			1,399			585

Total noninterest expense ⁽³⁾		1,416			1,232			1,249			1,266			1,266			184			150			5,163			4,687			476

Repositioning		187			30			—			—			57			157			130			217			77			140

Noninterest Expense (ex. Repositioning) ⁽¹⁾		1,229			1,202			1,249			1,266			1,209			27			20			4,946			4,610			336


Pre-tax income from continuing operations		64			228			403			388			445			(164	)		(381	)		1,083			2,342			(1,259	)

Income tax (benefit) expense		(13	)		(68	)		74			68			167			55			(180	)		61			627			(566	)

(Loss) from discontinued operations, net of tax		(1	)		—			—			(1	)		—			(1	)		(1	)		(2	)		(1	)		(1	)


Net Income	$	76		$	296		$	329		$	319		$	278		$	(220	)	$	(202	)	$	1,020		$	1,714		$	(694	)

Preferred Dividends		27			27			28			28			27			—			—			110			110			—


Net income attributable to common shareholders	$	49		$	269		$	301		$	291		$	251		$	(220	)	$	(202	)	$	910		$	1,604		$	(694	)


Core Pre-Provision Net Revenue ⁽⁴⁾	$	777		$	834		$	817		$	781		$	954		$	(57	)	$	(177	)	$	3,209		$	4,075		$	(866	)

Selected Balance Sheet Data (Period-End)

Total assets	$	196,429		$	195,704		$	197,241		$	196,165		$	191,826		$	725		$	4,603

Consumer loans		104,977			108,343			107,370			106,815			106,610			(3,366	)		(1,633	)

Commercial loans		34,462			31,917			31,079			29,489			29,138			2,545			5,324

Allowance for loan losses		(3,587	)		(3,837	)		(3,781	)		(3,751	)		(3,711	)		250			124

Deposits		154,666			152,835			154,310			154,013			152,297			1,831			2,369

Total equity		13,766			12,825			13,532			13,378			12,859			941			907

Common Share Count

Weighted average basic		304,506			304,134			303,684			302,657			301,279			372			3,227			303,751			316,690			(12,939	)

Weighted average diluted		306,730			305,693			304,646			303,448			303,062			1,036			3,668			305,135			318,629			(13,494	)

Issued shares outstanding (period-end)		302,459			301,630			301,619			300,821			299,324			830			3,135

Per Common Share Data

Earnings per share (basic)	$	0.16		$	0.88		$	0.99		$	0.96		$	0.83		$	(0.72	)	$	(0.67	)	$	3.00		$	5.06		$	(2.07	)

Earnings per share (diluted)		0.16			0.88			0.99			0.96			0.83			(0.72	)		(0.67	)		2.98			5.03			(2.05	)

Adjusted earnings per share ⁽¹⁾		0.45			0.83			0.96			0.82			1.08			(0.38	)		(0.63	)		3.05			6.06			(3.01	)

Book value per share		37.83			34.81			37.16			36.75			35.20			3.02			2.63

Tangible book value per share		35.41			31.90			34.22			33.77			32.18			3.51			3.23

Adjusted tangible book value per share ⁽⁵⁾		33.34			29.79			32.08			31.59			29.96			3.55			3.38

Select Financial Ratios

Net interest margin		3.17	%		3.24	%		3.38	%		3.51	%		3.65	%								3.32	%		3.85	%

Net interest margin (ex. Core OID) ⁽¹⁾		3.20	%		3.26	%		3.41	%		3.54	%		3.68	%								3.35	%		3.88	%

Cost of funds		4.35	%		4.21	%		3.89	%		3.44	%		2.77	%								3.97	%		1.74	%

Cost of funds (ex. Core OID)		4.29	%		4.15	%		3.84	%		3.39	%		2.73	%								3.92	%		1.71	%

Efficiency Ratio		68.5	%		62.6	%		60.1	%		60.3	%		57.5	%								62.9	%		55.6	%

Adjusted efficiency ratio ⁽⁶⁾		55.7	%		52.1	%		51.7	%		55.8	%		50.6	%								53.8	%		47.0	%

Return on average assets		0.1	%		0.5	%		0.6	%		0.6	%		0.5	%								0.5	%		0.9	%

Return on average total equity		1.5	%		8.2	%		8.9	%		8.9	%		7.9	%								6.9	%		11.2	%

Return on average tangible common equity		1.9	%		10.8	%		11.8	%		11.8	%		10.7	%								9.0	%		14.4	%

Core ROTCE ⁽⁷⁾		6.9	%		12.9	%		13.9	%		12.5	%		17.6	%								11.5	%		20.5	%

Capital Ratios ⁽⁸⁾

Common Equity Tier 1 (CET1) capital ratio		9.4	%		9.3	%		9.3	%		9.2	%		9.3	%

Tier 1 capital ratio		10.8	%		10.7	%		10.7	%		10.7	%		10.7	%

Total capital ratio		12.4	%		12.5	%		12.5	%		12.5	%		12.2	%

Tier 1 leverage ratio		8.7	%		8.6	%		8.6	%		8.5	%		8.6	%

(1)

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

(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)

Represents a non-GAAP financial measure. For more details refer to page 25-27.

(5)

Represents a non-GAAP financial measure. For more details refer to page 22.

(6)

Represents a non-GAAP financial measure. For more details refer to page 24.

(7)

Represents a non-GAAP financial measure. For more details refer to page 23.

(8)

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


4Q 2023 Preliminary Results		4

ALLY FINANCIAL INC.

CONSOLIDATED INCOME STATEMENT


	QUARTERLY TRENDS															CHANGE VS.						FULL YEAR
($ in millions)	4Q 23			3Q 23			2Q 23			1Q 23			4Q 22			3Q 23			4Q 22			FY 2023			FY 2022			CHANGE

Financing revenue and other interest income

Interest and fees on finance receivables and loans	$	2,887		$	2,837		$	2,721		$	2,575		$	2,423		$	50		$	464		$	11,020		$	8,099		$	2,921

Interest on loans held-for-sale		5			7			7			15			13			(2	)		(8	)		34			31			3

Total interest and dividends on investment securities		260			256			238			226			220			4			40			980			804			176

Interest-bearing cash		90			99			87			56			31			(9	)		59			332			54			278

Other earning assets		10			11			9			12			12			(1	)		(2	)		42			37			5

Operating leases		371			385			392			402			400			(14	)		(29	)		1,550			1,596			(46	)


Total financing revenue and other interest income		3,623			3,595			3,454			3,286			3,099			28			524			13,958			10,621			3,337

Interest expense

Interest on deposits		1,621			1,563			1,418			1,217			946			58			675			5,819			1,987			3,832

Interest on short-term borrowings		37			13			11			12			40			24			(3	)		73			107			(34	)

Interest on long-term debt		248			274			252			227			200			(26	)		48			1,001			763			238

Interest on other		2			—			—			2			(1	)		2			3			4			—			4


Total interest expense		1,908			1,850			1,681			1,458			1,185			58			723			6,897			2,857			4,040

Depreciation expense on operating lease assets		222			212			200			226			240			10			(18	)		860			914			(54	)


Net financing revenue	$	1,493		$	1,533		$	1,573		$	1,602		$	1,674		$	(40	)	$	(181	)	$	6,201		$	6,850		$	(649	)

Other revenue

Insurance premiums and service revenue earned		335			320			310			306			302			15			33			1,271			1,151			120

Gain on mortgage and automotive loans, net		3			4			5			4			24			(1	)		(21	)		16			52			(36	)

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

Other gain / (loss) on investments, net		85			(41	)		26			74			53			126			32			144			(120	)		264

Other income, net of losses		151			152			165			114			148			(1	)		3			582			495			87


Total other revenue		574			435			506			498			527			139			47			2,013			1,578			435

Total net revenue		2,067			1,968			2,079			2,100			2,201			99			(134	)		8,214			8,428			(214	)

Provision for loan losses		587			508			427			446			490			79			97			1,968			1,399			569

Noninterest expense

Compensation and benefits expense		453			463			448			537			503			(10	)		(50	)		1,901			1,900			1

Insurance losses and loss adjustment expenses		93			107			134			88			63			(14	)		30			422			280			142

Goodwill impairment		149			—			—			—			—			149			149			149			—			149

Other operating expenses		721			662			667			641			700			59			21			2,691			2,507			184


Total noninterest expense		1,416			1,232			1,249			1,266			1,266			184			150			5,163			4,687			476

Pre-tax income from continuing operations	$	64		$	228		$	403		$	388		$	445		$	(164	)	$	(381	)	$	1,083		$	2,342		$	(1,259	)

Income tax expense from continuing operations		(13	)		(68	)		74			68			167			55			(180	)		61			627			(566	)


Net income from continuing operations		77			296			329			320			278			(219	)		(201	)		1,022			1,715			(693	)

Loss from discontinued operations, net of tax		(1	)		—			—			(1	)		—			(1	)		(1	)		(2	)		(1	)		(1	)


Net income	$	76		$	296		$	329		$	319		$	278		$	(220	)	$	(202	)	$	1,020		$	1,714		$	(694	)

Preferred Dividends		27			27			28			28			27			—			—			110			110			—


Net income available to common shareholders	$	49		$	269		$	301		$	291		$	251		$	(220	)	$	(202	)	$	910		$	1,604		$	(694	)


Core pre-tax Income walk

Net financing revenue	$	1,493		$	1,533		$	1,573		$	1,602		$	1,674		$	(40	)	$	(181	)	$	6,201		$	6,850		$	(649	)

Other revenue		574			435			506			498			527			139			47			2,013			1,578			435

Provision for credit losses		587			508			427			446			490			79			97			1,968			1,399			569

Total noninterest expense		1,416			1,232			1,249			1,266			1,266			184			150			5,163			4,687			476


Pre-tax income from continuing operations	$	64		$	228		$	403		$	388		$	445		$	(164	)	$	(381	)	$	1,083		$	2,342		$	(1,259	)

Core OID ⁽²⁾		13			12			12			11			11			0			2			48			42			7

Change in the fair value of equity securities ⁽¹⁾		(74	)		56			(25	)		(65	)		(49	)		(130	)		(25	)		(107	)		215			(322	)

Repositioning ⁽¹⁾		172			30			—			—			57			142			115			201			77			124


Core pre-tax income ⁽²⁾	$	190		$	326		$	390		$	335		$	464		$	(136	)	$	(274	)	$	1,226		$	2,676		$	(1,450	)

(1)

For more details refer to pages 25-27.

(2)

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


4Q 2023 Preliminary Results		5

ALLY FINANCIAL INC.

CONSOLIDATED PERIOD-END BALANCE SHEET


($ in millions)	QUARTERLY TRENDS															CHANGE VS.
Assets	4Q 23			3Q 23			2Q 23			1Q 23			4Q 22			3Q 23			4Q 22

Cash and cash equivalents

Noninterest-bearing	$	638		$	603		$	536		$	554		$	542		$	35		$	96

Interest-bearing		6,307			7,912			9,436			9,226			5,029			(1,605	)		1,278


Total cash and cash equivalents		6,945			8,515			9,972			9,780			5,571			(1,570	)		1,374

Investment securities ⁽¹⁾		29,905			28,532			30,453			31,215			31,284			1,373			(1,379	)

Loans held-for-sale, net		400			289			297			524			654			111			(254	)

Finance receivables and loans, net		139,439			140,260			138,449			136,304			135,748			(821	)		3,691

Allowance for loan losses		(3,587	)		(3,837	)		(3,781	)		(3,751	)		(3,711	)		250			124


Total finance receivables and loans, net		135,852			136,423			134,668			132,553			132,037			(571	)		3,815

Investment in operating leases, net		9,171			9,569			9,930			10,236			10,444			(398	)		(1,273	)

Premiums receivables and other insurance assets		2,749			2,775			2,768			2,713			2,698			(26	)		51

Other assets		9,399			9,601			9,153			9,144			9,138			(202	)		261

Assets of operations held-for-sale ⁽²⁾		2,008			—			—			—			—			2,008			2,008


Total assets	$	196,429		$	195,704		$	197,241		$	196,165		$	191,826		$	725		$	4,603


Liabilities

Deposit liabilities

Noninterest-bearing	$	139		$	188		$	160		$	174		$	185		$	(49	)	$	(46	)

Interest-bearing		154,527			152,647			154,150			153,839			152,112			1,880			2,415


Total deposit liabilities		154,666			152,835			154,310			154,013			152,297			1,831			2,369

Short-term borrowings		3,297			2,410			2,194			1,455			2,399			887			898

Long-term debt		17,570			20,096			20,141			20,480			17,762			(2,526	)		(192	)

Interest payable		858			1,437			955			759			408			(579	)		450

Unearned insurance premiums and service revenue		3,492			3,494			3,478			3,455			3,453			(2	)		39

Accrued expense and other liabilities		2,731			2,607			2,631			2,625			2,648			124			83

Liabilities of operations held-for-sale		49			—			—			—			—			49			49


Total liabilities	$	182,663		$	182,879		$	183,709		$	182,787		$	178,967		$	(216	)	$	3,696

Equity

Common stock and paid-in capital ⁽³⁾	$	15,104		$	15,069		$	15,048		$	15,015		$	14,978		$	35		$	126

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

Retained earnings / (accumulated deficit)		154			197			23			(185	)		(384	)		(43	)		538

Accumulated other comprehensive income / (loss)		(3,816	)		(4,765	)		(3,863	)		(3,776	)		(4,059	)		949			243


Total equity		13,766			12,825			13,532			13,378			12,859			941			907


Total liabilities and equity	$	196,429		$	195,704		$	197,241		$	196,165		$	191,826		$	725		$	4,603

(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.

(3)

Includes Treasury stock.


4Q 2023 Preliminary Results		6

ALLY FINANCIAL INC.

CONSOLIDATED AVERAGE BALANCE SHEET ⁽¹⁾


($ in millions)	QUARTERLY TRENDS															CHANGE VS.						FULL YEAR
Assets	4Q 23			3Q 23			2Q 23			1Q 23			4Q 22			3Q 23			4Q 22			FY 2023			FY 2022			CHANGE

Interest-bearing cash and cash equivalents	$	7,571		$	8,308		$	7,401		$	5,731		$	4,129		$	(737	)	$	3,442		$	7,261		$	3,886		$	3,375

Investment securities and other earning assets		29,407			30,364			31,537			32,168			32,131			(957	)		(2,724	)		30,861			34,397			(3,536	)

Loans held-for-sale, net		237			278			422			738			722			(41	)		(485	)		417			616			(199	)

Total finance receivables and loans, net ⁽²⁾⁽⁵⁾		140,326			139,153			137,185			135,819			134,170			1,173			6,156			138,136			128,178			9,958

Investment in operating leases, net		9,415			9,817			10,110			10,435			10,546			(402	)		(1,131	)		9,941			10,656			(715	)


Total interest earning assets		186,956			187,920			186,655			184,891			181,698			(964	)		5,258			186,616			177,733			8,883

Noninterest-bearing cash and cash equivalents		257			335			362			333			395			(78	)		(138	)		322			416			(94	)

Other assets		11,644			10,925			10,781			10,817			11,082			719			562			11,044			10,442			602

Allowance for loan losses		(3,801	)		(3,820	)		(3,777	)		(3,729	)		(3,641	)		19			(160	)		(3,782	)		(3,439	)		(343	)


Total assets	$	195,056		$	195,360		$	194,021		$	192,312		$	189,534		$	(304	)	$	5,522		$	194,200		$	185,152		$	9,048


Liabilities

Interest-bearing deposit liabilities

Retail deposit liabilities	$	140,117		$	139,372		$	138,285		$	138,071		$	135,340		$	745		$	4,777		$	138,968		$	133,587		$	5,381

Other interest-bearing deposit liabilities ⁽³⁾		13,391			13,973			13,935			14,503			12,933			(582	)		458			13,947			9,400			4,547


Total Interest-bearing deposit liabilities		153,508			153,345			152,220			152,573			148,273			163			5,235			152,915			142,987			9,928

Short-term borrowings		2,714			948			833			1,024			4,169			1,766			(1,455	)		1,383			4,292			(2,909	)

Long-term debt ⁽⁴⁾		17,933			20,315			20,256			18,389			17,282			(2,382	)		651			19,226			16,683			2,543


Total interest-bearing liabilities ⁽⁴⁾		174,155			174,608			173,309			171,986			169,724			(453	)		4,431			173,524			163,962			9,562

Noninterest-bearing deposit liabilities		164			181			162			179			212			(17	)		(48	)		172			193			(21	)

Other liabilities		7,826			6,503			6,760			6,662			6,809			1,323			1,017			6,940			6,606			334


Total liabilities	$	182,145		$	181,292		$	180,231		$	178,827		$	176,745		$	853		$	5,400		$	180,636		$	170,761		$	9,875

Equity

Total equity	$	12,911		$	14,068		$	13,790		$	13,485		$	12,789		$	(1,157	)	$	122		$	13,564		$	14,391		$	(827	)


Total liabilities and equity	$	195,056		$	195,360		$	194,021		$	192,312		$	189,534		$	(304	)	$	5,522		$	194,200		$	185,152		$	9,048

(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 $799 million in 4Q23, $812 million in 3Q23, $824 million in 2Q23, $835 million in 1Q23, and $847 million in 4Q22.

(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.


4Q 2023 Preliminary Results		7

ALLY FINANCIAL INC.

SEGMENT HIGHLIGHTS


($ in millions)
	QUARTERLY TRENDS															CHANGE VS.						FULL YEAR
Pre-tax Income / (Loss)	4Q 23			3Q 23			2Q 23			1Q 23			4Q 22			3Q 23			4Q 22			FY 2023			FY 2022			CHANGE

Automotive Finance	$	294		$	377		$	501		$	442		$	437		$	(83	)	$	(143	)	$	1,614		$	2,250		$	(636	)

Insurance		129			(16	)		8			92			101			145			28			213			(38	)		251


Dealer Financial Services		423			361			509			534			538			62			(115	)		1,827			2,212			(385	)

Corporate Finance		79			84			72			72			67			(5	)		12			307			282			25

Mortgage Finance		24			26			21			21			19			(2	)		5			92			55			37

Corporate and Other ⁽¹⁾		(462	)		(243	)		(199	)		(239	)		(179	)		(219	)		(283	)		(1,143	)		(207	)		(936	)


Pre-tax income from continuing operations	$	64		$	228		$	403		$	388		$	445		$	(164	)	$	(381	)	$	1,083		$	2,342		$	(1,259	)

Core OID ⁽²⁾⁽⁴⁾		13			12			12			11			11			0			2			48			42			7

Change in the fair value of equity securities ⁽³⁾		(74	)		56			(25	)		(65	)		(49	)		(130	)		(25	)		(107	)		215			(322	)

Repositioning ⁽⁴⁾		172			30			—			—			57			142			115			201			77			124


Core pre-tax income ⁽⁴⁾	$	174		$	326		$	390		$	335		$	464		$	(152	)	$	(290	)	$	1,226		$	2,676		$	(1,450	)

(1)

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

(2)

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

(3)

For more details refer to pages 25-27.

(4)

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


4Q 2023 Preliminary Results		8

ALLY FINANCIAL INC.

AUTOMOTIVE FINANCE - CONDENSED FINANCIAL STATEMENTS


($ in millions)
	QUARTERLY TRENDS															CHANGE VS.						FULL YEAR
Income Statement	4Q 23			3Q 23			2Q 23			1Q 23			4Q 22			3Q 23			4Q 22			FY 2023		FY 2022		CHANGE

Net financing revenue

Consumer	$	1,799		$	1,748		$	1,649		$	1,576		$	1,555		$	51		$	244		$	6,772	$	5,680	$	1,092

Commercial		394			364			335			299			252			30			142			1,392		712		680

Loans held-for-sale		1			2			1			3			2			(1	)		(1	)		7		2		5

Operating leases		371			385			392			402			400			(14	)		(29	)		1,550		1,596		(46	)


Total financing revenue and other interest income		2,565			2,499			2,377			2,280			2,209			66			356			9,721		7,990		1,731

Interest expense		1,013			927			828			732			644			86			369			3,500		1,852		1,648

Depreciation expense on operating lease assets:

Depreciation expense on operating lease assets (ex. remarketing)		260			268			271			272			271			(8	)		(11	)		1,071		1,083		(12	)

Remarketing gains, net of repo valuation		37			57			70			47			31			(20	)		(6)			211		170		41


Total depreciation expense on operating lease assets		222			212			200			226			240			10			(18	)		860		914		(54	)


Net financing revenue		1,330			1,360			1,349			1,322			1,325			(30	)		5			5,361		5,224		137

Other revenue


Total other revenue		82			79			83			77			92			3			(10	)		321		306		15


Total net revenue		1,412			1,439			1,432			1,399			1,417			(27	)		(5	)		5,682		5,530		152

Provision for credit losses		492			444			331			351			376			48			116			1,618		1,036		582

Noninterest expense

Compensation and benefits		163			164			160			181			154			(1	)		9			668		629		39

Other operating expenses		463			454			440			425			450			9			13			1,782		1,615		167


Total noninterest expense		626			618			600			606			604			8			22			2,450		2,244		206


Pre-tax Income	$	294		$	377		$	501		$	442		$	437		$	(83	)	$	(143	)	$	1,614	$	2,250	$	(636	)


Memo: Net lease revenue

Operating lease revenue	$	371		$	385		$	392		$	402		$	400		$	(14	)	$	(29	)	$	1,550	$	1,596	$	(46	)

Depreciation expense on operating lease assets (ex. remarketing)		260			268			271			272			271			(8	)		(11	)		1,071		1,083		(12	)

Remarketing gains, net of repo valuation		37			57			70			47			31			(20	)		6			211		170		41


Total depreciation expense on operating lease assets		222			212			200			226			240			10			(18	)		860		914		(54	)


Net lease revenue	$	149		$	173		$	192		$	176		$	160		$	(24	)	$	(11	)	$	690	$	682	$	8


Balance Sheet (Period-End)

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

Loans held-for-sale, net		13			21			10			19			6			(8	)		7

Consumer loans		84,414			85,728			84,725			84,042			83,903			(1,314	)		511

Commercial loans		23,334			21,057			20,732			19,266			18,784			2,277			4,550

Allowance for loan losses		(3,117	)		(3,153	)		(3,103	)		(3,053	)		(3,053	)		36			(64	)


Total finance receivables and loans, net		104,631			103,632			102,354			100,255			99,634			999			4,997

Investment in operating leases, net		9,171			9,569			9,930			10,236			10,444			(398	)		(1,273	)

Other assets		1,572			1,520			1,463			1,450			1,379			52			193


Total assets	$	115,387		$	114,742		$	113,757		$	111,960		$	111,463		$	645		$	3,924


4Q 2023 Preliminary Results		9

ALLY FINANCIAL INC.

AUTOMOTIVE FINANCE - KEY STATISTICS


	QUARTERLY TRENDS										CHANGE VS.						FULL YEAR
*U.S. Consumer Originations ⁽¹⁾($ in billions)***	4Q 23		3Q 23		2Q 23		1Q 23		4Q 22		3Q 23			4Q 22			FY 2023		FY 2022		CHANGE

Retail standard - new vehicle GM	$	1.1	$	1.1	$	1.1	$	1.0	$	1.2	$	—		$	(0.1	)	$	4.3	$	4.4	$	(0.1	)

Retail standard - new vehicle Stellantis		0.7		0.7		0.8		0.7		0.7		(0.1	)		(0.1	)		2.9		3.6		(0.7	)

Retail standard - new vehicle Other		1.0		1.1		1.0		1.0		1.0		(0.1	)		—			4.1		4.4		(0.3	)

Used vehicle		6.2		6.9		6.6		6.1		5.5		(0.7	)		0.7			25.8		30.1		(4.3	)

Lease		0.6		0.7		0.8		0.8		0.7		(0.1	)		(0.1	)		2.9		3.7		(0.8	)

Retail subvented		0.0		0.0		0.0		0.0		0.0		0.0			0.0			0.0		0.2		(0.2	)


Total originations	$	9.6	$	10.6	$	10.4	$	9.5	$	9.2	$	(1.0	)	$	0.4		$	40.0	$	46.4	$	(6.4	)

U.S. Consumer Originations - FICO Score

Super prime (760-999)	$	2.4	$	2.5	$	2.4	$	1.8	$	1.8	$	(0.1	)	$	0.6		$	9.0	$	7.6	$	1.4

High prime (720-759)		1.4		1.5		1.4		1.2		1.3		(0.1	)		0.1			5.5		5.9		(0.4	)

Prime (660-719)		2.7		3.1		3.1		2.8		2.8		(0.4	)		(0.1	)		11.6		14.9		(3.3	)

Prime/Near (620-659)		1.5		1.8		1.8		2.0		1.8		(0.3	)		(0.3	)		7.1		10.2		(3.1	)

Non-Prime (540-619)		0.6		0.7		0.7		0.8		0.6		(0.1	)		0.1			2.8		3.5		(0.7	)

Sub-Prime (0-539)		0.2		0.2		0.2		0.1		0.1		—			0.1			0.7		0.6		0.1

No FICO (Primarily CSG)		0.8		0.8		0.8		0.8		0.9		—			(0.1	)		3.2		3.5		(0.4	)


Total originations	$	9.6	$	10.6	$	10.4	$	9.5	$	9.2	$	(1.0	)	$	0.4		$	40.0	$	46.4	$	(6.4	)

U.S. Consumer Retail Originations - Average FICO

New vehicle		718		712		709		700		707		5			11			710		700		10

Used vehicle		703		701		698		687		693		2			10			697		684		13

Total retail originations		707		704		701		691		697		3			10			701		688		12

U.S. Market

Light vehicle sales (SAAR - units in millions)		15.5		15.7		15.8		15.0		14.2		(0.1	)		1.4			15.5		13.7		1.7

Light vehicle sales (quarterly - units in millions)		3.9		4.0		4.1		3.5		3.5		(0.1	)		0.3			15.4		13.7		1.8

Dealer Engagement

Total Active DFS Dealers ⁽²⁾		21,829		22,323		22,171		22,136		21,869		(494	)		(40	)		21,829		21,869		(40	)

Total Application Volume (000s)		3,321		3,674		3,517		3,319		2,866		(353	)		455			13,831		12,480		1,351

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

Floorplan outstandings	$	17.0	$	14.9	$	14.6	$	13.3	$	13.0	$	2.0		$	3.9

Dealer loans and other		6.3		6.1		6.1		5.9		5.7		0.2			0.6


Total Commercial outstandings	$	23.3	$	21.1	$	20.7	$	19.3	$	18.8	$	2.3		$	4.6

U.S. Off-Lease Remarketing

Off-lease vehicles terminated - on-balance sheet (# in units)		26,237		29,484		29,872		24,163		20,919		(3,247	)		5,318			109,756		110,634		(878	)

Average gain / (loss) per vehicle	$	1,422	$	1,944	$	2,335	$	1,932	$	1,476	$	(522	)	$	(54	)	$	1,923	$	1,533	$	390

Total gain ($ in millions)	$	37	$	57	$	70	$	47	$	31	$	(20	)		6		$	211	$	170	$	41

(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 three months ended December 31, 2023.


4Q 2023 Preliminary Results		10

ALLY FINANCIAL INC.

INSURANCE - CONDENSED FINANCIAL STATEMENTS AND KEY STATISTICS


($ in millions)	QUARTERLY TRENDS															CHANGE VS.						FULL YEAR
Income Statement *(GAAP View)*	4Q 23			3Q 23			2Q 23			1Q 23			4Q 22			3Q 23			4Q 22			FY 2023			FY 2022			CHANGE

Net financing revenue

Total interest and fees on finance receivables and loans⁽¹⁾	$	3		$	2		$	3		$	2		$	2		$	1		$	1		$	10		$	9		$	1

Interest and dividends on investment securities		34			32			31			29			32			2			2			126			115			11

Interest bearing cash		5			3			2			3			1			2			4			13			2			11


Total financing revenue and other interest revenue		42			37			36			34			35			5			7			149			126			23

Interest expense		9			8			7			8			7			1			2			32			37			(5	)


Net financing revenue		33			29			29			26			28			4			5			117			89			28

Other revenue

Insurance premiums and service revenue earned		335			320			310			306			302			15			33			1,271			1,151			120

Other gain / (loss) on investments, net		78			(31	)		25			72			54			109			24			144			(143	)		287

Other income, net of losses		4			4			2			3			3			—			1			13			15			(2	)


Total other revenue		417			293			337			381			359			124			58			1,428			1,023			405


Total net revenue		450			322			366			407			387			128			63			1,545			1,112			433

Noninterest expense

Compensation and benefits expense		27			26			27			28			23			1			4			108			101			7

Insurance losses and loss adjustment expenses		93			107			134			88			63			(14	)		30			422			280			142

Other operating expenses		201			205			197			199			200			(4	)		1			802			769			33


Total noninterest expense		321			338			358			315			286			(17	)		35			1,332			1,150			182


Pre-tax (loss)	$	129		$	(16	)	$	8		$	92		$	101		$	145		$	28		$	213		$	(38	)	$	251


Memo: Income Statement (Managerial View)

Insurance premiums and other income

Insurance premiums and service revenue earned	$	335		$	320		$	310		$	306		$	302		$	15		$	33		$	1,271		$	1,151		$	120

Investment income and other (adjusted) ⁽²⁾		44			44			30			33			33			(1	)		11			151			156			(4	)

Other income		4			4			2			3			3			—			1			13			15			(2	)


Total insurance premiums and other income		383			368			342			342			338			14			45			1,435			1,322			114

Expense

Insurance losses and loss adjustment expenses		93			107			134			88			63			(14	)		30			422			280			142

Acquisition and underwriting expenses

Compensation and benefit expense		27			26			27			28			23			1			4			108			101			7

Insurance commission expense		161			160			158			157			158			1			3			637			611			26

Other expense		40			45			39			42			42			(5	)		(2	)		165			158			7


Total acquistion and underwriting expense		228			231			224			227			223			(3	)		5			910			870			40


Total expense		321			338			358			315			286			(17	)		35			1,332			1,150			182


Core pre-tax (loss) / income ⁽²⁾		62			30			(16	)		27			52			31			10			103			172			(68	)

Change in the fair value of equity securities ⁽³⁾		67			(46	)		24			65			49			114			18			110			(210	)		319


Income (loss) before income tax expense	$	129		$	(16	)	$	8		$	92		$	101		$	145		$	28		$	213		$	(38	)	$	251


Balance Sheet (Period-End)

Cash and investment securities	$	5,333		$	5,086		$	5,280		$	5,331		$	5,252		$	247		$	81

Intercompany loans⁽¹⁾		619			547			510			523			417			72			202

Premiums receivable and other insurance assets		2,767			2,791			2,783			2,728			2,712			(24	)		55

Other assets		362			312			317			285			278			50			84


Total assets	$	9,081		$	8,736		$	8,890		$	8,867		$	8,659		$	345		$	422


Key Statistics

Total written premiums and revenue ⁽⁴⁾	$	333		$	335		$	299		$	307		$	285		$	(2	)	$	48		$	1,274		$	1,103		$	171

Loss ratio ⁽⁵⁾		27.6	%		33.0	%		43.0	%		28.3	%		20.6	%								32.9	%		24.0	%

Underwriting expense ratio ⁽⁶⁾		67.2	%		71.3	%		71.5	%		73.7	%		73.0	%								70.8	%		74.6	%


Combined ratio		94.8	%		104.3	%		114.6	%		102.0	%		93.6	%								103.7	%		98.6	%

(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.


4Q 2023 Preliminary Results		11

ALLY FINANCIAL INC.

MORTGAGE FINANCE - CONDENSED FINANCIAL STATEMENTS


($ in millions)
	QUARTERLY TRENDS															CHANGE VS.						FULL YEAR
Income Statement	4Q 23			3Q 23			2Q 23			1Q 23			4Q 22			3Q 23			4Q 22			FY 2023			FY 2022		CHANGE

Net financing revenue

Total financing revenue and other interest income	$	147		$	149		$	151		$	153		$	155		$	(2	)	$	(8	)	$	600		$	575	$ 25

Interest expense		96			96			98			99			100			—			(4	)		389			354	35


Net financing revenue		51			53			53			54			55			(2	)		(4	)		211			221	(10)

Gain on mortgage loans, net		3			4			5			4			1			(1	)		2			16			26	(10)

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


Total other revenue		3			4			5			4			2			(1	)		1			16			27	(11)


Total net revenue		54			57			58			58			57			(3	)		(3	)		227			248	(21)


Provision for loan losses		—			(2	)		—			(1	)		1			2			(1	)		(3	)		3	(6)

Noninterest expense

Compensation and benefits expense		4			5			5			6			6			(1	)		(2	)		20			23	(3)

Other operating expense		26			28			32			32			31			(2	)		(5	)		118			167	(49)


Total noninterest expense		30			33			37			38			37			(3	)		(7	)		138			190	(52)


Pre-tax Income	$	24		$	26		$	21		$	21		$	19		$	(2	)	$	5		$	92		$	55	$ 37


Balance Sheet (Period-End)

Finance receivables and loans, net:

Consumer loans	$	18,442		$	18,657		$	18,894		$	19,189		$	19,445		$	(215	)	$	(1,003	)

Allowance for loan losses		(18	)		(19	)		(20	)		(20	)		(22	)		1			4


Total finance receivables and loans, net		18,424			18,638			18,874			19,169			19,423			(214	)		(999	)

Loans held for sale, net		25			29			36			24			13			(4	)		12

Other assets		63			78			87			97			93			(15	)		(30	)


Total assets	$	18,512		$	18,745		$	18,997		$	19,290		$	19,529		$	(233	)	$	(1,017	)


4Q 2023 Preliminary Results		12

ALLY FINANCIAL INC.

CORPORATE FINANCE - CONDENSED FINANCIAL STATEMENTS


($ in millions)
	QUARTERLY TRENDS															CHANGE VS.						FULL YEAR
Income Statement	4Q 23			3Q 23			2Q 23			1Q 23			4Q 22			3Q 23			4Q 22			FY 2023			FY 2022		CHANGE

Net financing revenue

Total financing revenue and other interest income	$	264		$	248		$	234		$	234		$	199		$	16		$	65		$	980		$	546	$	434

Interest expense		159			151			142			131			105			8			54			583			212		371


Net financing revenue		105			97			92			103			94			8			11			397			334		63

Total other revenue		23			24			28			29			25			(1	)		(2	)		104			122		(18	)


Total net revenue		128			121			120			132			119			7			9			501			456		45

Provision for loan losses		17			5			15			15			16			12			1			52			43		9

Noninterest expense

Compensation and benefits expense		17			16			17			28			20			1			(3	)		78			75		3

Other operating expense		15			16			16			17			16			(1	)		(1	)		64			56		8


Total noninterest expense		32			32			33			45			36			—			(4	)		142			131		11


Pre-tax income	$	79		$	84		$	72		$	72		$	67		$	(5	)	$	12		$	307		$	282	$	25


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


Core pre-tax income ⁽²⁾	$	79		$	84		$	71		$	72		$	67		$	(4	)	$	12		$	306		$	286	$	20


Balance Sheet (Period-End)

Equity securities	$	6		$	6		$	6		$	5		$	6		$	—		$	—

Loans held for sale, net		253			81			48			266			445			172			(192	)

Commercial loans		10,905			10,637			10,132			10,003			10,147			268			758

Allowance for loan losses		(153	)		(185	)		(176	)		(217	)		(202	)		32			49


Total finance receivables and loans, net		10,752			10,452			9,956			9,786			9,945			300			807

Other assets		201			210			180			169			148			(9	)		53


Total assets	$	11,212		$	10,749		$	10,190		$	10,226		$	10,544		$	463		$	668

(1)

For more details refer to pages 25-27.

(2)

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


4Q 2023 Preliminary Results		13

ALLY FINANCIAL INC.

CORPORATE AND OTHER - CONDENSED FINANCIAL STATEMENTS


($ in millions)	QUARTERLY TRENDS															CHANGE VS.						FULL YEAR
Income Statement	4Q 23			3Q 23			2Q 23			1Q 23			4Q 22			3Q 23			4Q 22			FY 2023			FY 2022			CHANGE

Net financing revenue

Total financing revenue and other interest income	$	605		$	662		$	656		$	585		$	501		$	(57	)	$	104		$	2,508		$	1,384		$	1,124

Interest expense		631			668			606			488			329			(37	)		302			2,393			402			1,991


Net financing revenue		(26	)		(6	)		50			97			172			(20	)		(198	)		115			982			(867	)

Other revenue

Other gain on investments, net		8			(11	)		—			3			—			19			8			—			22			(22	)

Other income, net of losses ⁽¹⁾		41			46			53			4			49			(5	)		(8	)		144			78			66


Total other revenue		49			35			53			7			49			14			—			144			100			44


Total net revenue		23			29			103			104			221			(6	)		(198	)		259			1,082			(823	)

Provision for loan losses		78			61			81			81			97			17			(19	)		301			317			(16	)

Noninterest expense

Compensation and benefits expense		242			252			239			294			300			(10	)		(58	)		1,027			1,072			(45	)

Goodwill impairment		149			—			—			—			—			149			149			149			—			149

Other operating expense ⁽²⁾		16			(41	)		(18	)		(32	)		3			57			13			(75	)		(100	)		25


Total noninterest expense		407			211			221			262			303			196			104			1,101			972			129


Pre-tax (loss) income	$	(462	)	$	(243	)	$	(199	)	$	(239	)	$	(179	)	$	(219	)	$	(283	)	$	(1,143	)	$	(207	)	$	(936	)


Change in the fair value of equity securities ⁽³⁾		(7	)		10			—			—			—			(17	)		(7	)		3			1			3

Core OID ⁽⁴⁾		13			12			12			11			11			—			2			48			42			7

Repositioning ⁽³⁾		172			30			—			—			57			142			115			201			77			124


Core pre-tax (loss) income ⁽⁴⁾	$	(284	)	$	(191	)	$	(187	)	$	(228	)	$	(111	)	$	(93	)	$	(173	)	$	(890	)	$	(87	)	$	(803	)


Balance Sheet (Period-End)

Cash, trading and investment securities	$	31,511		$	31,955		$	35,139		$	35,659		$	31,597		$	(444	)	$	(86	)

Loans held-for-sale, net		109			158			203			215			190			(49	)		(81	)

Consumer loans		2,121			3,958			3,751			3,584			3,262			(1,837	)		(1,141	)

Commercial loans		223			223			215			220			207			—			16

Intercompany loans⁽⁵⁾		(619	)		(547	)		(510	)		(523	)		(417	)		(72	)		(202	)

Allowance for loan losses		(299	)		(480	)		(482	)		(461	)		(434	)		181			135


Total finance receivables and loans, net		1,426			3,154			2,974			2,820			2,618			(1,728	)		(1,192	)

Other assets		7,183			7,465			7,091			7,128			7,226			(282	)		(43	)

Assets of operations held-for-sale ⁽⁶⁾		2,008			—			—			—			—			2,008			2,008

Total assets	$	42,237		$	42,732		$	45,407		$	45,822		$	41,631		$	(495	)	$	606


Core OID Amortization Schedule ⁽⁴⁾	2024			2025			2026			2027			2028 & After

Remaining Core OID amortization expense	$	56		$	66		$	77		$	89		Avg = $	125/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 $342 million for 4Q23, $348 million for 3Q23, $331 million for 2Q23, $334 million for 1Q23, and $350 million for 4Q22. 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.


4Q 2023 Preliminary Results		14

ALLY FINANCIAL INC.

CREDIT RELATED INFORMATION


($ in millions)

	QUARTERLY TRENDS															CHANGE VS.						FULL YEAR
Asset Quality - Consolidated ⁽¹⁾	4Q 23			3Q 23			2Q 23			1Q 23			4Q 22			3Q 23			4Q 22			FY 2023			FY 2022			CHANGE

Ending loan balance	$	139,439		$	140,260		$	138,449		$	136,302		$	135,745		$	(821	)	$	3,694

30+ Accruing DPD	$	3,856		$	3,459		$	3,169		$	2,834		$	3,128		$	397		$	728

30+ Accruing DPD %		2.76	%		2.47	%		2.29	%		2.08	%		2.30	%

60+ Accruing DPD	$	1,077		$	934		$	841		$	707		$	779		$	143		$	298

60+ Accruing DPD %		0.77	%		0.67	%		0.61	%		0.52	%		0.57	%

Non-performing loans (NPLs)	$	1,394		$	1,500		$	1,404		$	1,384		$	1,454		$	(106	)	$	(60	)

Net charge-offs (NCOs)	$	623		$	456		$	399		$	409		$	390		$	167		$	233		$	1,887		$	952		$	935

Net charge-off rate ⁽²⁾		1.77	%		1.31	%		1.16	%		1.20	%		1.16	%								1.36	%		0.74	%

Provision for loan losses	$	587		$	508		$	427		$	446		$	490		$	79		$	97		$	1,968		$	1,399		$	569

Allowance for loan losses (ALLL)	$	3,587		$	3,837		$	3,781		$	3,751		$	3,711		$	(250	)	$	(124	)

ALLL as % of Loans ^(3) (4)		2.57	%		2.73	%		2.72	%		2.74	%		2.72	%

ALLL as % of NPLs ⁽³⁾		257	%		256	%		269	%		271	%		255	%

ALLL as % of NCOs ⁽³⁾		144	%		211	%		237	%		230	%		238	%

US Auto Delinquencies - HFI Retail Contract $‘s

30+ Delinquent contract $	$	3,730		$	3,290		$	3,032		$	2,714		$	2,962		$	440		$	768

% of retail contract $ outstanding		4.42	%		3.85	%		3.60	%		3.24	%		3.56	%

60+ Delinquent contract $	$	1,037		$	878		$	796		$	666		$	738		$	159		$	299

% of retail contract $ outstanding		1.23	%		1.03	%		0.94	%		0.80	%		0.89	%

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

Net charge-offs	$	470		$	393		$	277		$	351		$	347		$	77		$	123		$	1,491		$	785		$	706

% of avg. HFI assets ⁽²⁾		2.21	%		1.85	%		1.32	%		1.68	%		1.66	%								1.77	%		0.97	%

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

Net charge-offs	$	19		$	(0	)	$	4		$	—		$	—		$	19		$	19		$	23		$	(2	)	$	25

% of avg. HFI assets ⁽²⁾		0.34	%		—	%		0.09	%		—	%		—	%								0.11	%		(0.01	)%

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

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

(3) 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.


4Q 2023 Preliminary Results		15

ALLY FINANCIAL INC.

CREDIT RELATED INFORMATION, CONTINUED


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

*Consumer*	4Q 23			3Q 23			2Q 23			1Q 23			4Q 22			3Q 23			4Q 22
Allowance for loan losses	$	3,083		$	3,104		$	3,064		$	3,022		$	3,020		$	(21	)	$	63

Total consumer loans ⁽²⁾	$	84,320		$	85,370		$	84,294		$	83,640		$	83,286		$	(1,050	)	$	1,034

Coverage ratio ⁽³⁾		3.65	%		3.62	%		3.62	%		3.60	%		3.60	%

Commercial

Allowance for loan losses	$	34		$	49		$	39		$	31		$	33		$	(15	)	$	1

Total commercial loans	$	23,334		$	21,057		$	20,732		$	19,266		$	18,784		$	2,277		$	4,550

Coverage ratio		0.15	%		0.23	%		0.19	%		0.16	%		0.18	%

Mortgage ⁽¹⁾

*Consumer*

Mortgage Finance

Allowance for loan losses	$	18		$	19		$	20		$	20		$	22		$	(1	)	$	(4	)

Total consumer loans	$	18,442		$	18,657		$	18,894		$	19,189		$	19,445		$	(215	)	$	(1,003	)

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

Mortgage - Legacy

Allowance for loan losses	$	3		$	3		$	3		$	3		$	5		$	—		$	(2	)

Total consumer loans	$	225		$	238		$	255		$	272		$	290		$	(13	)	$	(65	)

Coverage ratio		1.32	%		1.29	%		1.28	%		1.11	%		1.78	%

Total Mortgage

Allowance for loan losses	$	21		$	22		$	23		$	23		$	27		$	(1	)	$	(6	)

Total consumer loans	$	18,667		$	18,895		$	19,149		$	19,461		$	19,735		$	(228	)	$	(1,068	)

Coverage ratio		0.11	%		0.11	%		0.12	%		0.12	%		0.14	%

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

Allowance for loan losses	$	—		$	202		$	210		$	213		$	194		$	(202	)	$	(194	)

Total consumer loans	$	—		$	2,206		$	2,170		$	2,072		$	1,987		$	(2,206	)	$	(1,987	)

Coverage ratio		—	%		9.16	%		9.68	%		10.29	%		9.77	%

Consumer Other - Ally Credit Card ⁽¹⁾

Allowance for loan losses	$	293		$	272		$	266		$	242			232		$	21		$	61

Total consumer loans	$	1,990		$	1,872		$	1,757		$	1,640			1,599		$	118		$	391

Coverage ratio		14.72	%		14.55	%		15.14	%		14.74	%		14.51	%

Corporate Finance ⁽¹⁾

Allowance for loan losses	$	153		$	185		$	176		$	217		$	202		$	(32	)	$	(49	)

Total commercial loans	$	10,905		$	10,636		$	10,132		$	10,003		$	10,147		$	269		$	758

Coverage ratio		1.40	%		1.74	%		1.74	%		2.17	%		1.99	%

Corporate and Other ⁽¹⁾

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

Total commercial loans	$	223		$	224		$	215		$	220		$	207		$	(1	)	$	16

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 ($93M) of fair value adjustment for loans in hedge accounting relationships in 4Q23, ($358M) in 3Q23, ($432M) in 2Q23, ($402M) in 1Q23 and ($617M) in 4Q22.

(3) Excludes ($93M) of fair value adjustment for loans in hedge accounting relationships in 4Q23, ($358M) in 3Q23, ($432M) in 2Q23, ($402M) in 1Q23 and ($617M) in 4Q22.

(4) Unsecured consumer lending from point-of-sale financing.


4Q 2023 Preliminary Results		16

ALLY FINANCIAL INC.

CAPITAL


($ in billions)	QUARTERLY TRENDS										CHANGE VS.

Capital	4Q 23		3Q 23		2Q 23		1Q 23		4Q 22		3Q 23		4Q 22
Risk-weighted assets	$	161.7	$	161.1	$	159.2	$	157.6	$	157.3	$	0.6	$	4.4
Common Equity Tier 1 (CET1) capital ratio		9.4%		9.3%		9.3%		9.2%		9.3%
Tier 1 capital ratio		10.8%		10.7%		10.7%		10.7%		10.7%
Total capital ratio		12.4%		12.5%		12.5%		12.5%		12.2%
Tangible common equity / Tangible assets ⁽¹⁾⁽²⁾		5.5%		4.9%		5.3%		5.2%		5.0%
Tangible common equity / Risk-weighted assets ⁽¹⁾		6.6%		6.0%		6.5%		6.4%		6.1%
Shareholders’ equity	$	13.8	$	12.8	$	13.5	$	13.4	$	12.9	$	1.0	$	0.9
add: CECL phase-in adjustment		0.6		0.6		0.6		0.6		0.9		—		(0.3)
less: Certain AOCI items and other adjustments		3.1		3.9		3.0		2.9		3.2		(0.8)		(0.1)
Preferred equity		(2.3)		(2.3)		(2.3)		(2.3)		(2.3)		—		—

Common Equity Tier 1 capital	$	15.1	$	15.0	$	14.8	$	14.5	$	14.6	$	0.1	$	0.5


Common Equity Tier 1 capital	$	15.1	$	15.0	$	14.8	$	14.5	$	14.6	$	0.1	$	0.5
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	$	17.3	$	17.1	$	16.8	$	16.9	$	0.1	$	0.5


Tier 1 capital	$	17.4	$	17.3	$	17.1	$	16.8	$	16.9	$	0.1	$	0.5
add: Qualifying subordinated debt		0.7		0.9		0.9		0.9		0.4		(0.2)		0.3
Allowance for loan and lease losses includible in Tier 2 capital and other adjustments		2.0		2.0		1.9		1.9		1.9		—		0.1

Total capital	$	20.1	$	20.1	$	19.9	$	19.6	$	19.2	$	—	$	0.9

Total shareholders’ equity	$	13.8	$	12.8	$	13.5	$	13.4	$	12.9	$	1.0	$	0.9
less: Preferred equity		(2.3)		(2.3)		(2.3)		(2.3)		(2.3)		—		—
Goodwill and intangible assets, net of deferred tax liabilities		(0.7)		(0.9)		(0.9)		(0.9)		(0.9)		0.2		0.2

Tangible common equity ⁽¹⁾	$	10.7	$	9.6	$	10.3	$	10.2	$	9.6	$	1.1	$	1.1

Total assets	$	196.4	$	195.7	$	197.2	$	196.2	$	191.8	$	0.7	$	4.6
less: Goodwill and intangible assets, net of deferred tax liabilities		(0.7)		(0.9)		(0.9)		(0.9)		(0.9)		0.2		0.2

Tangible assets ⁽²⁾	$	195.7	$	194.8	$	196.4	$	195.3	$	190.9	$	0.9	$	4.8

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.


4Q 2023 Preliminary Results		17

ALLY FINANCIAL INC.

LIQUIDITY AND DEPOSITS


	QUARTERLY TRENDS										CHANGE VS.
Consolidated Available Liquidity ($ in billions)	4Q 23		3Q 23		2Q 23		1Q 23		4Q 22		3Q 23			4Q 22

Liquid cash and cash equivalents ⁽¹⁾	$	6.5	$	8.0	$	9.5	$	9.3	$	5.1	$	(1.5	)	$	1.4

Highly liquid securities ⁽²⁾		20.6		19.6		20.7		21.5		22.2		1.1			(1.5	)


Subtotal	$	27.1	$	27.6	$	30.2	$	30.8	$	27.3	$	(0.5	)	$	(0.2	)


FHLB Unused Pledged Borrowing Capacity		10.3		11.0		12.3		12.2		11.1		(0.7	)		(0.8	)

FRB Discount Window Unused Pledged Capacity		26.0		25.6		2.1		2.1		2.0		0.4			24.0


Total unused pledged capacity	$	36.4	$	36.6	$	14.4	$	14.3	$	13.2	$	(0.2	)	$	23.2


Total current available liquidity	$	63.5	$	64.1	$	44.6	$	45.0	$	40.5	$	(0.7	)	$	23.0


Unsecured Long-Term Debt Maturity Profile	2024		2025		2026		2027		2028		2029 & After

Consolidated remaining maturities ⁽³⁾	$	1.5	$	2.3	$	—	$	1.5	$	0.8	$	4.6

Ally Bank Deposits

Key Deposit Statistics

Average retail CD maturity (months)		19.0		19.1		16.2		18.7		19.4		(0.1	)		(0.4	)

Average retail deposit rate		4.15%		4.00%		3.68%		3.16%		2.45%

End of Period Deposit Levels ($ in millions)

Retail	$	142,265	$	140,100	$	138,983	$	138,497	$	137,684	$	2,164		$	4,580

Brokered & other		12,402		12,735		15,327		15,516		14,613		(333	)		(2,211	)


Total deposits	$	154,666	$	152,835	$	154,310	$	154,013	$	152,297	$	1,831		$	2,369


Deposit Mix

Retail CD		29%		28%		27%		25%		20%

MMA/OSA/Checking		63%		64%		63%		65%		71%

Brokered & other		8%		8%		10%		10%		9%

(1)

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

(2)

Includes unencumbered UST, Agency debt, Agency MBS, and highly liquid Corporates

(3)

Excludes retail notes; as of 12/31/2023. Reflects notional value of outstanding bond. Excludes total GAAP OID and capitalized transaction costs.


4Q 2023 Preliminary Results		18

ALLY FINANCIAL INC.

NET INTEREST MARGIN


($ in millions)
	QUARTERLY TRENDS										CHANGE VS.				FULL YEAR
Average Balance Details	4Q 23		3Q 23		2Q 23		1Q 23		4Q 22		3Q 23		4Q 22		FY 2023		FY 2022		CHANGE

Retail Auto Loans	$	84,711	$	85,131	$	84,097	$	83,615	$	83,781	$	(420)	$	930	$	84,393	$	81,035	$	3,358

Auto Lease (net of dep)		9,415		9,817		10,110		10,435		10,546		(402)		(1,131)		9,941		10,656		(715)

Dealer Floorplan		15,693		14,507		13,764		12,893		11,822		1,186		3,871		14,223		11,418		2,805

Other Dealer Loans		6,115		6,023		5,945		5,756		5,462		92		653		5,961		5,044		917

Corporate Finance		10,787		10,309		10,240		10,606		10,181		478		606		10,486		8,974		1,512

Mortgage⁽¹⁾		18,788		19,028		19,325		19,621		19,876		(240)		(1,088)		19,188		19,218		(30)

Consumer Other—Ally Lending ⁽²⁾		2,167		2,201		2,114		2,037		1,904		(34)		263		2,130		1,508		622

Consumer Other—Ally Credit Card		1,925		1,826		1,701		1,618		1,486		99		439		1,769		1,216		553

Cash and Cash Equivalents		7,571		8,308		7,401		5,731		4,129		(737)		3,442		7,261		3,886		3,375

Investment Securities and Other		29,784		30,769		31,958		32,578		32,513		(985)		(2,729)		31,264		34,778		(3,514)


Total Earning Assets	$	186,956	$	187,920	$	186,655	$	184,891	$	181,698	$	(964)	$	5,258	$	186,616	$	177,733	$	8,883

Interest Revenue		3,401		3,383		3,254		3,060		2,859		18		542		13,098		9,707		3,391

Unsecured Debt (ex. Core OID balance) ⁽³⁾	$	10,595	$	11,590	$	11,442	$	11,193	$	10,447	$	(995)	$	148	$	11,205	$	10,037	$	1,168

Secured Debt		2,279		3,120		2,879		2,552		1,917		(841)		362		2,708		1,386		1,322

Deposits ⁽⁴⁾		153,672		153,526		152,382		152,752		148,485		146		5,187		153,087		143,180		9,907

Other Borrowings		8,572		7,365		7,592		6,503		9,934		1,207		(1,362)		7,513		10,414		(2,901)


Total Funding Sources (ex. Core OID balance) ⁽³⁾	$	175,118	$	175,601	$	174,295	$	173,000	$	170,783	$	(483)	$	4,335	$	174,513	$	165,017	$	9,496

Interest Expense (ex. Core OID) ⁽³⁾		1,895		1,838		1,669		1,447		1,174		57		721		6,849		2,815		4,034

Net Financing Revenue (ex. Core OID) ⁽³⁾	$	1,506	$	1,545	$	1,585	$	1,613	$	1,685	$	(39)	$	(179)	$	6,249	$	6,892	$	(643)

Net Interest Margin (yield details)

Retail Auto Loan		8.98%		8.90%		8.81%		8.49%		7.98%		0.08%		1.00%		8.80%		7.19%		1.61%

Retail Auto Loan (excl. hedge impact)		8.43%		8.16%		7.87%		7.66%		7.37%		0.27%		1.06%		8.03%		7.01%		1.02%

Auto Lease (net of dep)		6.24%		7.00%		7.60%		6.84%		6.02%		(0.76)%		0.22%		6.93%		6.41%		0.52%

Dealer Floorplan		7.84%		7.88%		7.71%		7.29%		6.42%		(0.04)%		1.42%		7.70%		4.49%		3.21%

Other Dealer Loans		5.35%		5.25%		5.16%		5.04%		4.82%		0.10%		0.53%		5.20%		4.38%		0.82%

Corporate Finance		9.70%		9.54%		9.15%		8.96%		7.78%		0.16%		1.92%		9.34%		6.09%		3.25%

Mortgage		3.21%		3.20%		3.22%		3.25%		3.17%		0.01%		0.04%		3.22%		3.06%		0.16%

Consumer Other—Ally Lending		9.86%		9.94%		9.99%		9.97%		10.37%		(0.08)%		(0.51)%		9.94%		11.31%		(1.37)%

Consumer Other—Ally Credit Card		22.02%		22.39%		21.88%		21.84%		21.75%		(0.37)%		0.27%		22.04%		20.54%		1.50%

Cash and Cash Equivalents		4.72%		4.73%		4.70%		3.95%		2.94%		(0.01)%		1.78%		4.57%		1.38%		3.19%

Investment Securities and Other		3.66%		3.53%		3.17%		3.04%		2.89%		0.13%		0.77%		3.34%		2.46%		0.88%

Total Earning Assets		7.22%		7.14%		6.99%		6.71%		6.24%		0.08%		0.98%		7.02%		5.46%		1.56%

Unsecured Debt (ex. Core OID & Core OID balance) ⁽³⁾		6.08%		5.55%		5.40%		5.34%		5.12%		0.53%		0.96%		5.58%		5.09%		0.49%

Secured Debt		5.15%		6.81%		5.61%		6.04%		4.73%		(1.66)%		0.42%		5.96%		5.77%		0.19%

Deposits ⁽⁴⁾		4.19%		4.04%		3.74%		3.23%		2.53%		0.15%		1.66%		3.81%		1.39%		2.42%

Other Borrowings ⁽⁵⁾		3.79%		3.23%		3.00%		2.74%		2.80%		0.56%		0.99%		3.23%		2.29%		0.94%

Total Funding Sources (ex. Core OID & Core OID balance) ⁽³⁾		4.29%		4.15%		3.84%		3.39%		2.73%		0.14%		1.56%		3.92%		1.71%		2.21%
NIM (as reported)		3.17%		3.24%		3.38%		3.51%		3.65%		(0.07)%		(0.48)%		3.32%		3.85%		(0.53)%
NIM (ex. Core OID & Core OID balance) ⁽³⁾		3.20%		3.26%		3.41%		3.54%		3.68%		(0.06)%		(0.48)%		3.35%		3.88%		(0.53)%

(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 (HFS) on 12/31/23.

(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.


4Q 2023 Preliminary Results		19

ALLY FINANCIAL INC.

ALLY BANK CONSUMER MORTGAGE HFI PORTFOLIOS (PERIOD-END)


($ in billions)	QUARTERLY TRENDS
Mortgage Finance HFI Portfolio	4Q 23			3Q 23			2Q 23			1Q 23			4Q 22
Loan Value

Gross carry value	$	18.4		$	18.7		$	18.9		$	19.2		$	19.4

Net carry value	$	18.4		$	18.6		$	18.9		$	19.2		$	19.4

Estimated Pool Characteristics

% Second lien		0.0	%		0.0	%		0.0	%		0.0	%		0.0	%

% Interest only		0.0	%		0.0	%		0.0	%		0.0	%		0.0	%

% 30+ Day delinquent⁽¹⁾⁽²⁾		0.5	%		0.5	%		0.4	%		0.4	%		0.6	%

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

% Non-primary residence		4.1	%		4.1	%		4.1	%		4.1	%		4.4	%

Refreshed FICO⁽³⁾		782			782			782			781			781

Wtd. Avg. LTV/CLTV ⁽⁴⁾		52.2	%		53.1	%		54.5	%		55.0	%		54.6	%

Corporate Other Legacy Mortgage HFI Portfolio
Loan Value

Gross carry value	$	0.2		$	0.2		$	0.3		$	0.3		$	0.3

Net carry value	$	0.2		$	0.2		$	0.3		$	0.3		$	0.3

Estimated Pool Characteristics

% Second lien		12.5	%		12.4	%		12.5	%		12.9	%		13.0	%

% Interest only		0.2	%		0.2	%		0.0	%		0.0	%		0.1	%

% 30+ Day delinquent⁽¹⁾⁽²⁾		7.0	%		6.7	%		6.6	%		6.5	%		6.4	%

% Low/No documentation		25.5	%		25.2	%		24.8	%		24.2	%		23.6	%

% Non-primary residence		3.1	%		3.2	%		3.4	%		3.3	%		3.3	%

Refreshed FICO⁽³⁾		742			743			742			741			742

Wtd. Avg. LTV/CLTV ⁽⁴⁾		46.9	%		47.3	%		48.1	%		48.1	%		47.4	%

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

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

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

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


4Q 2023 Preliminary Results		20

ALLY FINANCIAL INC.

EARNINGS PER SHARE RELATED INFORMATION


($ in millions, shares in thousands)		QUARTERLY TRENDS										CHANGE VS.				FULL YEAR
Earnings Per Share Data		4Q 23		3Q 23		2Q 23		1Q 23		4Q 22		3Q 23		4Q 22		FY 2023		FY 2022		CHANGE

GAAP net income attributable to common shareholders		$	49	$	269	$	301	$	291	$	251	$	(220)	$	(202)	$	910	$	1,604	$	(694)

Weighted-average common shares outstanding - basic			304,506		304,134		303,684		302,657		301,279		372		3,227		303,751		316,690		(12,939)

Weighted-average common shares outstanding - diluted			306,730		305,693		304,646		303,448		303,062		1,036		3,668		305,135		318,629		(13,494)

Issued shares outstanding (period-end)			302,459		301,630		301,619		300,821		299,324		830		3,135		302,459		299,324		3,135


Net income per share - basic		$	0.16	$	0.88	$	0.99	$	0.96	$	0.83	$	(0.72)	$	(0.67)	$	3.00	$	5.06	$	(2.07)


Net income per share - diluted		$	0.16	$	0.88	$	0.99	$	0.96	$	0.83	$	(0.72)	$	(0.67)	$	2.98	$	5.03	$	(2.05)


Adjusted Earnings per Share (“Adjusted EPS”) ⁽²⁾

Numerator

GAAP net income attributable to common shareholders		$	49	$	269	$	301	$	291	$	251	$	(220)	$	(202)	$	910	$	1,604	$	(694)

Discontinued operations, net of tax			1		—		—		1		—		1		1		2		1		1

Core OID			13		12		12		11		11		0		2		48		42		7

Change in the fair value of equity securities ⁽³⁾			(74)		56		(25)		(65)		(49)		(130)		(25)		(107)		215		(322)

Core OID, repositioning & change in the fair value of equity securities tax (tax rate 21%)			(23)		(21)		3		11		(4)		(3)		(19)		(30)		(70)		40

Repositioning ⁽³⁾			172		30		—		—		57		142		115		201		77		124

Significant discrete tax items			—		(94)		—		—		61		94		(61)		(94)		61		(155)


Core net income attributable to common shareholders ⁽¹⁾		$	137	$	252	$	291	$	250	$	327	$	(115)	$	(189)	$	930	$	1,929	$	(999)

Denominator

Weighted-average common shares outstanding - diluted			306,730		305,693		304,646		303,448		303,062		1,036		3,668		305,135		318,629		(13,494)

Adjusted EPS ⁽²⁾		$	0.45	$	0.83	$	0.96	$	0.82	$	1.08	$	(0.38)	$	(0.63)	$	3.05	$	6.06	$	(3.01)

GAAP original issue discount amortization expense		$	16	$	15	$	15	$	15	$	14	$	1	$	2	$	61	$	53	$	8

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


Core original issue discount (Core OID) amortization expense ⁽¹⁾		$	13	$	12	$	12	$	11	$	11	$	—	$	2	$	48	$	42	$	7


GAAP outstanding original issue discount balance		$	(831)	$	(847)	$	(863)	$	(878)	$	(882)	$	16	$	50	$	(831)	$	(882)	$	50

Other outstanding OID balance			39		42		45		48		40		(3)		(2)		39		40		(2)


Core outstanding original issue discount balance (Core OID balance) ⁽¹⁾		$	(793)	$	(806)	$	(818)	$	(830)	$	(841)	$	13	$	48	$	(793)	$	(841)	$	48


GAAP Net Financing Revenue	[A]	$	1,493	$	1,533	$	1,573	$	1,602	$	1,674	$	(40)	$	(181)	$	6,201	$	6,850	$	(649)

Core OID			13		12		12		11		11		—		2		48		42		7


Net Financing Revenue (ex. Core OID) ⁽¹⁾	[B]	$	1,506	$	1,545	$	1,585	$	1,613	$	1,685	$	(40)	$	(179)	$	6,249	$	6,892	$	(642)


GAAP Other Revenue	[C]	$	574	$	435	$	506	$	498	$	527	$	139	$	47	$	2,013	$	1,578	$	435

Change in the fair value of equity securities ⁽³⁾			(74)		56		(25)		(65)		(49)		(130)		(25)		(107)		215		(322)


Adjusted Other Revenue ⁽¹⁾	[D]	$	500	$	491	$	481	$	433	$	478	$	9	$	22	$	1,906	$	1,793	$	113


GAAP Provision Expense		$	587	$	508	$	427	$	446	$	490	$	79	$	97	$	1,968	$	1,399	$	569

Repositioning			(16)		—		—		—		—		(16)		(16)		(16)		—		(16)


Adjusted Provision (ex. Repositioning) ⁽¹⁾		$	603	$	508	$	427	$	446	$	490	$	95	$	113	$	1,984	$	1,399	$	585


GAAP Noninterest expense	[E]	$	1,416	$	1,232	$	1,249	$	1,266	$	1,266	$	184	$	150	$	5,163	$	4,687	$	476

Repositioning and other			187		30		—		—		57		157		130		217		77		140


Adjusted Noninterest Expense ⁽¹⁾	[F]	$	1,229	$	1,202	$	1,249	$	1,266	$	1,209	$	27	$	20	$	4,946	$	4,610	$	336


Pre-Provision Net Revenue (PPNR)	[A]+[C]-[E]	$	651	$	736	$	830	$	834	$	935	$	(85)	$	(284)	$	3,051	$	3,741	$	(690)

Core Pre-Provision Net Revenue (PPNR) ⁽¹⁾	[B]+[D]-[F]	$	777	$	834	$	817	$	781	$	954	$	(57)	$	(177)	$	3,209	$	4,075	$	(866)

(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.


4Q 2023 Preliminary Results		21

ALLY FINANCIAL INC.

ADJUSTED TANGIBLE BOOK PER SHARE RELATED INFORMATION


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

Adjusted Tangible Book Value Per Share (“Adjusted TBVPS”) Information	4Q 23		3Q 23		2Q 23		1Q 23		4Q 22		3Q 23		4Q 22

Numerator

GAAP shareholder’s equity	$	13,766	$	12,825	$	13,532	$	13,378	$	12,859	$	941	$	907

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

GAAP common shareholder’s equity	$	11,442	$	10,501	$	11,208	$	11,054	$	10,535	$	941	$	907

Goodwill and identifiable intangibles, net of DTLs		(731)		(879)		(887)		(895)		(902)		147		171


Tangible common equity ⁽¹⁾		10,711		9,622		10,321		10,159		9,633		1,088		1,078

Tax-effected Core OID balance (21% tax rate) ⁽¹⁾		(626)		(636)		(646)		(656)		(665)		10		38

Adjusted tangible book value ⁽²⁾	$	10,084	$	8,986	$	9,675	$	9,504	$	8,968	$	1,098	$	1,116


Denominator

Issued shares outstanding (period-end, thousands)		302,459		301,630		301,619		300,821		299,324		830		3,135

GAAP shareholder’s equity per share	$	45.51	$	42.52	$	44.86	$	44.47	$	42.96	$	2.99	$	2.55

Preferred equity per share		(7.68)		(7.70)		(7.71)		(7.73)		(7.76)		0.02		0.08

GAAP common shareholder’s equity per share	$	37.83	$	34.81	$	37.16	$	36.75	$	35.20	$	3.02	$	2.63

Goodwill and identifiable intangibles, net of DTLs per share		(2.42)		(2.91)		(2.94)		(2.97)		(3.01)		0.50		0.60


Tangible common equity per share ⁽¹⁾		35.41		31.90		34.22		33.77		32.18		3.51		3.23

Tax-effected Core OID balance (21% tax rate) per share ⁽¹⁾		(2.07)		(2.11)		(2.14)		(2.18)		(2.22)		0.04		0.15


Adjusted tangible book value per share ⁽²⁾	$	33.34	$	29.79	$	32.08	$	31.59	$	29.96	$	3.55	$	3.38

(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.


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ALLY FINANCIAL INC.

CORE ROTCE RELATED INFORMATION


($ in millions) unless noted otherwise	QUARTERLY TRENDS															CHANGE VS.						FULL YEAR
Core Return on Tangible Common Equity (“Core ROTCE”)	4Q 23			3Q 23			2Q 23			1Q 23			4Q 22			3Q 23			4Q 22			FY 2023			FY 2022			CHANGE

Numerator

GAAP net income attributable to common shareholders	$	49		$	269		$	301		$	291		$	251		$	(220	)	$	(202	)	$	910		$	1,604		$	(694	)

Discontinued operations, net of tax		1			—			—			1			—			1			1			2			1			1

Core OID ⁽²⁾		13			12			12			11			11			—			2			48			42			7

Change in the fair value of equity securities		(74	)		56			(25	)		(65	)		(49	)		(130	)		(25	)		(107	)		215			(322	)

Core OID, repositioning & change in the fair value of equity securities tax (tax rate 21%)		(23	)		(21	)		3			11			(4	)		(3	)		(19	)		(30	)		(70	)		40

Repositioning ⁽²⁾		172			30			—			—			57			142			115			201			77			124

Significant discrete tax items		—			(94	)		—			—			61			94			(61	)		(94	)		61			(155	)


Core net income attributable to common shareholders ⁽¹⁾	$	137		$	252		$	291		$	250		$	327		$	(115	)	$	(189	)	$	930		$	1,929		$	(999	)

Denominator (average, $ millions)

GAAP shareholder’s equity	$	13,296		$	13,179		$	13,455		$	13,119		$	12,647		$	117		$	649		$	13,272		$	14,348		$	(1,076	)

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

Goodwill & identifiable intangibles, net of deferred tax liabilities (“DTLs”)		(805	)		(883	)		(891	)		(898	)		(906	)		78			101			(859	)		(921	)		62


Tangible common equity ⁽¹⁾	$	10,167		$	9,972		$	10,240		$	9,896		$	9,417		$	195		$	750		$	10,089		$	11,103		$	(1,014	)

Core OID balance		(799	)		(812	)		(824	)		(835	)		(847	)		13			48			(817	)		(862	)		45

Net deferred tax asset (“DTA”)		(1,378	)		(1,310	)		(1,060	)		(1,059	)		(1,165	)		(68	)		(213	)		(1,193	)		(820	)		(373	)


Normalized common equity	$	7,989		$	7,850		$	8,357		$	8,002		$	7,405		$	139		$	584		$	8,079		$	9,421		$	(1,342	)

Core Return on Tangible Common Equity ⁽³⁾		6.9	%		12.9	%		13.9	%		12.5	%		17.6	%								11.5	%		20.5	%

(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.


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ALLY FINANCIAL INC.

ADJUSTED EFFICIENCY RATIO RELATED INFORMATION


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

	4Q 23			3Q 23			2Q 23			1Q 23			4Q 22			3Q 23			4Q 22			FY 2023			FY 2022			CHANGE

Numerator

GAAP Noninterest expense	$	1,416		$	1,232		$	1,249		$	1,266		$	1,266		$	184		$	150		$	5,163		$	4,687		$	476

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

Insurance expense		(321	)		(338	)		(358	)		(315	)		(286	)		17			(35	)		(1,332	)		(1,150	)		(182	)

Repositioning ⁽²⁾		(187	)		(30	)		—			—			(57	)		(157	)		(130	)		(217	)		(77	)		(140	)


Adjusted noninterest expense for the efficiency ratio	$	908		$	864		$	891		$	951		$	923		$	44		$	(15	)	$	3,614		$	3,460		$	154

Denominator

Total net revenue	$	2,067		$	1,968		$	2,079		$	2,100		$	2,201		$	99		$	(134	)	$	8,214		$	8,428		$	(214	)

Core OID ⁽²⁾		13			12			12			11			11			0			2			48			42			7

Insurance revenue		(450	)		(322	)		(366	)		(407	)		(387	)		(128	)		(63	)		(1,545	)		(1,112	)		(433	)


Adjusted net revenue for the efficiency ratio	$	1,630		$	1,658		$	1,725		$	1,704		$	1,825		$	(29	)	$	(195	)	$	6,717		$	7,358		$	(640	)

Adjusted Efficiency Ratio ⁽¹⁾		55.7	%		52.1	%		51.7	%		55.8	%		50.6	%								53.8	%		47.0	%

(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.


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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-provision net revenue (Core PPNR), 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), Pre-provision net revenue (PPNR), 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 onetime 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.

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.


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ALLY FINANCIAL INC.

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-provision net revenue (Core PPNR) is a non-GAAP financial measure calculated by adding GAAP net financing revenue and GAAP other revenue and subtracting GAAP noninterest expense then adding Core OID and repositioning expenses, excluding provision for credit losses. Management believes that Core PPNR is a helpful financial metric because it enables the reader to assess the core business’ ability to generate earnings to cover credit losses.

14) 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.

15) 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 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.

16) 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.

17) 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.

18) 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.

19) 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.


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ALLY FINANCIAL INC.

20) Pre-provision net revenue (PPNR) is a non-GAAP financial measure calculated by adding GAAP net financing revenue and GAAP other revenue then subtracting GAAP noninterest expense, excluding provision for credit losses. Management believes that PPNR is a helpful financial metric because it enables the reader to assess the business’ ability to generate earnings to cover credit losses and as it is utilized by Federal Reserve’s approach to modeling within the Supervisory Stress Test Framework that generally follows U.S. generally accepted accounting principles (GAAP) and includes a calculation of PPNR as a component of projected pre-tax net income.

21) 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.

22) 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.


4Q 2023 Preliminary Results		27