1
Ally Financial Inc.
BancAnalysts Association of Boston Conference
November 2, 2017
2
Forward-Looking Statements and Additional Information
This presentation and related communications should be read in conjunction with the financial statements, notes, and other information contained
in our Annual Reports on Form 10-K, Quarterly Reports on Form 10-Q, and Current Reports on Form 8-K. This information is preliminary and
based on company and third-party data available at the time of the presentation or related communication.
This presentation and related communications contain forward-looking statements within the meaning of the Private Securities Litigation Reform
Act of 1995. These statements can be identified by the fact that they do not relate strictly to historical or current facts—such as our statements
about targets and expectations for various financial and operating metrics. 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, 2016, our subsequent Quarterly Reports on Form
10-Q or Current Reports on Form 8-K, or other applicable documents that are filed or furnished with the U.S. Securities and Exchange
Commission (collectively, our “SEC filings”). Any forward-looking statement made by us or on our behalf speaks only as of the date that it was
made. We do not undertake to update any forward-looking statement to reflect the impact of events, circumstances, or results that arise after the
date that the statement was made, except as required by applicable securities laws. You, however, should consult further disclosures (including
disclosures of a forward-looking nature) that we may make in any subsequent SEC filings.
This presentation and related communications contain specifically identified non-GAAP financial measures, which supplement the results that are
reported according to 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.
Our use of the term “loans” describes all of the products associated with our direct and indirect lending activities. The specific products include
loans, retail installment sales contracts, lines of credit, leases, and other financing products. The term “lend” or “originate” refers to our direct
origination of loans or our purchase or acquisition of loans.
3
Ally Overview
Note: Total Assets, Deposits, Asset Mix and Funding Mix as of 3Q 2017
Building the leading digital bank
Asset Mix
$164 billion of Assets
Zero branches
Over 5 million customers
$90 billion of Deposits
Funding Mix
Unsecured
Debt
13%
Secured
Debt
13%
Deposits
61%
Other
Borrowings
13%
End of period balances. Excludes Core OID. See page 21 for details.
End of period balances. ‘Other’ includes Insurance premium receivables and Other assets.
Retail Auto Loan
41%
Auto Lease
5%
Commercial Auto
22%
Cash and
Securities
18%
Mortgage
7%
Corporate Finance
2%
Other
5%
4
Strategic Direction
Demonstrate resilient returns in auto finance through the cycle
Relentlessly focus on customers
Grow deposit and customer base
Expand additional products to unlock more value from Ally banking franchise
Leverage position as leader in digital banking
5
3%
10%
12% +/-
2013 2016 Medium-term Target
Driving Higher Shareholder Returns
(1) Medium-term defined as over the next 3-4 years. Represents a non-GAAP financial measure. See page 21 for details.
Improving Core ROTCE
(1)
through efficient capital allocation and earnings growth
• Growing net financing revenue
• Increasing noninterest income
• Operating leverage
• Optimize capital deployment
6
Customer Growth Through Brand and New Offerings
Consumer Auto
Retail Deposit
Wealth
Management
Other
(includes Credit Card, Mortgage)
Commercial Auto
4.3
million serviced units
18.5
thousand dealer relationships
1.4
million customers
235
thousand customers
(1) represents total consumer and commercial dealer relationships as of 9/30/17
Note: primary, active customers as of 9/30/2017
68
thousand customers
+ Deepening existing
relationships
+ New offerings
+ Accelerating
deposit customer
growth
=
Positioned to deliver
steady customer
growth
(1)
7
Relentless Focus on Customers – Our Brand and Culture
Simple, straightforward approach to banking – customer is at the core
Do It Right Customer-centricity
Digital
Simple
Build emotional relationship
with customer beyond
financial transactions
24/7 human customer
service
No branches = Great Rates
No geographical
constraints
Customer service that
actually serves
Smart
Solutions oriented and
deliver products that are
never status quo
Innovative
Align with disruptive trends
Transparent
Deliver the plain and
simple truth – no hidden
messages or fees
Low Fee / Great Rate
Fair and transparent fees;
attractive, not top rate
DO RIGHT TIRELESSLY INNOVATE
OBSESS OVER THE CUSTOMER
8
Strong Emotional Connection with Customers
Brand has resonated and provides foundation for product expansion
Emotional connection continues to increase
Consumers’ love for Ally driven by:
Sense of pride and making them feel smart
Status they realize from banking with an innovative, customer-centric, fun brand
Belief that Ally understands their unique financial needs
2016
73
2017
77
Source: Love Quotient Survey March 2017
10
Ally Bank Market Share Growth
Ally outpacing direct bank market share without being top rate payer
7.0%
8.3%
9.8%
11.9%
12.8%
13.4%
14.3%
15.1%
5.5%
6.1%
6.2%
6.6%
6.9%
7.2%
7.6%
8.0%
8th
7th
9th
7th
9th
11th
8th
12th
2Q10 2Q11 2Q12 2Q13 2Q14 2Q15 2Q16 2Q17
Ally Bank market share of direct bank deposits
Direct bank market share of retail deposits
Ally OSA Bankrate.com position
Source: Ally Bank estimates the Direct Bank Retail Deposit market size using various sources including FDIC, FFIEC, NIC, earnings releases, 10-K/Q (excludes brokered CDs and
MMDA Sweeps)”
11
Compounding Retail Deposit Growth
New and existing retail deposit customers fueling growth
Retail Deposit Growth from New and Existing Customers ($ billions)
$1.3
$2.1
$2.0
$0.5
$1.3
$3.5
$2.1
$4.5
$5.2
$6.1
$4.3
$6.2
$7.7
$6.2
2011 2012 2013 2014 2015 2016 YTD Sep 2017
$27.7B
$74.9B
Existing Customer Growth
New Customer Growth
12
Stable Deposit Vintages
Ally Bank’s retail deposit vintages have been stable over time
Ally Retail Deposit Balances by Vintage ($ millions)
$0
$15,000
$30,000
$45,000
$60,000
$75,000
Pre-2009 2009 2010 2011 2012 2013 2014 2015 2016 2017
13
Retail Deposit Customer Growth
Retail Deposit Customer Growth (thousands)
89
109
124
162
126
142
166
200
2009 2010 2011 2012 2013 2014 2015 2016 2017 est
300
~
~1,400
Accelerating retail deposit customer growth
14
Banking Dynamics: Long-Term Convergence of Models
Direct Banking
• Cost effective
• Fewer Products
• Higher rates
~$500
billion of
deposits
(1)
Traditional Banking
• Brick & Mortar
• More products
• Lower rates
~$5
trillion of
deposits
(2)
Functionality and customer adoption will continue to progress
Deposit pricing should converge as functionality and products converge
Move towards digital represents long-term tailwind
~$4 trillion in consumer
deposits with a rate paid of
< 0.25%
(3)
(1) Ally Bank estimates the market size using various sources including FDIC, FFIEC, NIC, earnings
releases, 10K/Q
(2) FFIEC Call Reports / FDIC - Deposits ($ trillions) in all accounts up to $250k held in domestic offices
and in insured branches in PR and US territories and possessions
(3) Internal Ally estimate calculated utilizing FDIC Call Report Data combined with third party rate reports
15
Diverse Customer Demographics
Scalable national retail deposit platform
Attractive demographic trends
1.4
million
Retail deposit customers
> 50% new customers from Millennial generation (YTD 2017)
in all 50 states
95
%
Customer satisfaction
(1)
Retail deposit franchise positioned for growth
Note: a county is shaded Ally purple if there was at least one primary, active banking customer residing there.
New Retail Deposit Customers by Generation
25%
29%
34%
39%
44%
47%
50%
54%
26%
27%
26%
27%
25%
24%
21%
21%
28%
26%
24%
21%
19%
19%
17%
15%
13%
11%
9%
7%
5%
5%
4%
3%
8%
7%
6%
6%
6%
6%
7%
7%
FY 2010 FY 2011 FY 2012 FY 2013 FY 2014 FY 2015 FY 2016 YTD Sept.
2017
Millennial Gen X Baby Boomers Silent Generation Other
(1) Survey administered by Ally September 2017
(2) Accenture. The “Greater” Wealth Transfer – Capitalizing on the Intergenerational Shift in Wealth, 2015
94
%
Customers would recommend Ally to a friend or family member
(1)
~$30 trillion estimated
wealth transfer to
Millennial generation over
the next 30 – 40 years
(2)
16
Value of Deposit Growth
Retail deposit growth drives strategic and financial path
Entry point for new banking customers
Reduce expensive capital markets funding
Support smart asset growth
($ billions)
3Q 2013
(1)
3Q 2017
(1)
Average
Balance
Average
Yield
Average
Balance
Average
Yield
Deposits
(2)
$
51 1.3
% $
88 1.3
%
Secured Debt
$
31 1.6
% $
23 2.2
%
Unsecured Debt
$
33 5.0
% $
20 5.1
%
FHLB/Other
(3)
$
5 1.0
% $
16 1.4
%
Total
Funding Sources
(4)
$
120 2.4
% $
147 1.9
%
(1) Balances and yields based on average daily balances for the quarter ending 3Q 2017 and 3Q 2013
(2) Includes brokered deposits
(3) Includes Demand Notes, FHLB borrowings, and Repurchase Agreements
(4) Represents a non-GAAP financial measure. Excludes OID. See page 21 for calculation methodology and details.
17
19%
YoY Deposit Yield Change (basis points)
(1)
7
9
10
12
14 14 14
15 15
16 16
17 17
19
Peer 1 Peer 2 Peer 3 Peer 4 Peer 5 Peer 6 ALLY Peer 7 Peer 8 Peer 9 Peer 10 Peer 11 Peer 12 Peer 13
Median
Peer Deposit Pricing Changes and Balance Growth
Strong deposit growth with modest rate change
Balance Growth (YoY %)
(1)
11%
-3%
10%
4%
7%
10%
4%
5%
6%
8%
5%
11%
4%
(1) Year-over-year change for yield and balance growth based on 3Q 17 vs. 3Q 16 interest bearing deposit yield and balances, respectively. Data from company filings.
Peers include: BAC, C, CFG, COF, DFS, JPM, KEY, PNC, RF, STI, SYF, USB and WFC
18
Investment in Digital Capabilities
Direct Banks are growing deposits
2.5x
faster than the overall retail market
Customers now interact with Ally more via
mobile
than any other channel and growing
>95%
of Ally’s customer
interactions are digital
(1)
(1) Disclosures on Direct Retail Deposits at Direct banks (10-K/Q, Earnings Releases, Call Reports and FDIC Summary of Deposits) and/or Ally Bank estimations (excludes brokered CDs and MMDA Sweeps). Retail deposit
indicator at FDIC insured Banks (balances in deposit accounts under $250k).
Innovation to Drive Value
Zelle
sm
Real
-time customer payments
Alexa Skill
Banking
via artificial intelligence (AI) powered virtual assistant
Debit Controls
Customer controls more than just ‘on/off’
Deposits Risk Engine
Machine learning to combat fraud
Advanced Analytics
Utilizing
predictive analytics for personalized interactions
Process Automation
Use of Robotics/AI to drive efficiency and improved customer
experience
19
Wrap Up
Building the leading digital bank
Focused on demonstrating resilient returns in auto finance through the cycle
Secular digital trends are on our side
Deposit growth is a key driver of strategic and financial path
Developing new products to drive more value from banking franchise and
position for long-term growth
20 CONFIDENTIAL
Supplemental
21
Notes on non-GAAP and other financial measures
Supplemental
1) Core original issue discount (Core OID) is a non-GAAP financial measure for OID, primarily related to bond exchange OID which excludes international operations
and future issuances.
2) Core return on tangible common equity (Core ROTCE) is a non-GAAP financial measure that management believes is helpful for readers to better understand the
ongoing ability of the company to generate returns on its equity base that supports core operations. For purposes of this calculation, tangible common equity is adjusted
for unamortized Core OID and net DTA. As of 1Q 2016, Ally’s Core net income available to common for purposes of calculating Core ROTCE is based on the actual
effective tax rate for the period adjusted for any discrete tax items including tax reserve releases, which aligns with the methodology used in calculating adjusted
earnings per share.
a) In the numerator of Core ROTCE, GAAP net income available to common is adjusted for discontinued operations net of tax, tax-effected Core OID expense, tax-
effected repositioning items primarily related to the extinguishment of high-cost legacy debt and strategic activities, certain discrete tax items and preferred stock
capital actions.
b) In the denominator, GAAP shareholder’s equity is adjusted for preferred equity and goodwill and identifiable intangibles net of DTL, unamortized Core OID, and net
DTA.
Core Return on Tangible Common Equity ("Core ROTCE")
FY 2016 FY 2013
Numerator ($ millions)
GAAP net income available to common shareholders 1,037$ (688)$
less: Disc Ops, net of tax 44 55
add back: Core original issue discount expense ("Core OID expense") 59 249
add back: Repositioning Items 11 244
less: Core OID & Repo. Tax (35% in '16, 34% in '15) (24) (168)
Significant Discrete Tax Items & Other (84) 602
Series G Actions - -
Series A Actions 1 -
Core net income available to common shareholders [a] 1,043$ 294$
Denominator (2-period average, $ billions)
GAAP shareholder's equity 13.4$ 17.1$
less: Preferred equity 0.3 4.1
less: Goodwill & identifiable intangibles, net of deferred tax liabilities ("DTLs")
0.2 0.3
Tangible common equity 12.9$ 12.7$
less: Core unamortized original issue discount ("Core OID discount") 1.3 1.7
less: Net deferred tax asset ("DTA") 1.2 1.6
Normalized common equity [b] 10.4$ 9.4$
Core Return on Tangible Common Equity [a] / [b] 10.0% 3.1%
Total Funding Sources (based on average balances)
($ millions) 3Q 17 3Q 13
Total Funding Sources (GAAP) 145,323$ 118,791$
Core OID 1,206 1,631
Total Funding Sources (ex OID) 146,529$ 120,422$
Unamortized Original Issue Discount (based on average balances)
($ millions) 3Q 17 3Q 13
Core unamortized original issue discount (1,206)$ (1,631)$
Other unamortized OID (65) (54)
GAAP unamortized original issue discount (1,271)$ (1,685)$
Unamortized Original Issue Discount (based on EOP balances)
($ millions) 3Q 17 3Q 13
Core unamortized original issue discount (1,197)$ (1,599)$
Other unamortized OID (62) (57)
GAAP unamortized original issue discount (1,259)$ (1,656)$
Unamortized Original Issue Discount Expense
($ millions) 3Q 17 3Q 13
Core unamortized original issue discount 18$ 64$
Other unamortized OID 5 3
GAAP unamortized original issue discount 23$ 67$
