Exhibit 99.1

 

LOGO

News release: IMMEDIATE RELEASE

Ally Financial Reports Second Quarter 2017 Financial Results

Net Income of $252 million, $0.55 EPS, $0.58 Adjusted EPS1

 

 

     Second Quarter Results    
    

 

PRE-TAX INCOME      RETURN ON EQUITY      COMMON SHAREHOLDER EQUITY
$376 million      7.5%      $29.79/share

 

CORE PRE-TAX INCOME1      CORE ROTCE1      ADJUSTED TANGIBLE BOOK VALUE1
$393 million      9.6%      $27.40/share

 

HIGHLIGHTS  

 Net financing revenue of $1,067 million, including $17 million in Original Issue Discount (OID) expense

 

 EPS: $0.55; Adjusted EPS1: $0.58, up 7% YoY

 

 Net interest margin (NIM) of 2.76%, up 8 bps YoY; Ex. OID, NIM of 2.80%, up 8 bps YoY and 16 bps QoQ

 

 Consolidated annualized net charge-offs of 66 bps

 

 Efficiency Ratio: 56%; Adj. Efficiency Ratio1: 44%

 

 Executed $204 million of share repurchases and paid $0.08 per share quarterly dividend

 

Ally Chief Executive Officer Jeffrey Brown commented on the financial results:

 

“We’re very pleased with our second quarter results and the performance of our businesses. We delivered the highest revenue and Adjusted EPS1 since becoming a public company with both NIM expansion and balance sheet growth. We also continued to advance our consumer product offerings with the launch of Ally Invest, further building upon our leading digital banking franchise.”

 

“Net financing revenue improved $88 million from the first quarter, demonstrating the power of our self-help earnings growth path and the successful repositioning of the business over the past few years. We continue to see a long runway to deliver improved results given the positioning of the franchise and ability to grow customers and deposits. This will allow us to continue to diversify our product mix and further optimize our liability structure to drive higher returns.”

 

“In auto finance, we remain cautious but constructive. Used vehicle price declines and loss performance were well within our expectations, and we’re seeing improved profitability in both our consumer and commercial auto portfolios.”

 

“Strategically, we remain focused on the ingredients of driving strong long-term shareholder returns. Alignment with digital banking trends, earnings growth, improving ROE, diversifying our customer product suite and optimizing capital deployment are all key components as we continue down our path of delivering strong shareholder returns.”

   
DEPOSITS  

 Retail deposits of $71.1 billion, up 16% YoY

 

 Average retail deposit rate up 1 bp YoY and 3 bps QoQ

 

 Retail deposit customer base up 49k QoQ; up 15% YoY

 
   

AUTO

FINANCE

 

 Pre-tax income of $347 million

 

 Consumer auto originations of $8.6 billion with estimated retail auto originated yield1 of 6.50%, up 68 bps YoY

 

 Retail auto net charge-off rate of 1.20%

 
   
INSURANCE  

 Pre-tax loss of $21 million, down $61 million QoQ, largely due to seasonally high weather losses

 
   

CORPORATE

FINANCE

 

 Pre-tax income of $35 million, up $21 million YoY

 

 Loans increased by 19% YoY to $3.6 billion

 
   

MORTGAGE

FINANCE

 

 Pre-tax income of $7 million, down $2 million YoY

 

 Total assets increased to $8.9 billion, up 11% YoY

 

 

     Notable Items    
    

• Received CCAR non-objection to Ally’s capital plan through second quarter 2018, enabling a meaningful increase in capital returns to common shareholders

 

   Share repurchase program growing 9% to $760 million

 

   Quarterly common dividend increasing from $0.08 per share to $0.12 per share, beginning with the third quarter dividend payment, which has been approved by the Board

  

• Introduced Ally Invest to our customers in May 2017

 

 Seasonally strong lease yields (net of depreciation) up 92 bps QoQ to 6.63% as used car price declines moderated in the second quarter

 

 Increased retail auto loan coverage ratio 7 bps QoQ to 1.50%

 

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 U.S. GAAP measures: Adjusted Earnings per Share (Adjusted EPS), Core Pre-Tax Income, Core Net Income Available to Common, Core Return on Tangible Common Equity (Core ROTCE), Estimated Retail Auto Originated Yield, Adjusted Efficiency Ratio, 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 measures. Refer to the Definitions of Non-GAAP Financial Measures and Other Key Terms, and Reconciliation to GAAP later in this document.


The following information was filed by Ally Financial Inc. (ALLY) on Thursday, July 27, 2017 as an 8K 2.02 statement, which is an earnings press release pertaining to results of operations and financial condition. It may be helpful to assess the quality of management by comparing the information in the press release to the information in the accompanying 10-Q Quarterly Report statement of earnings and operation as management may choose to highlight particular information in the press release.

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