Forward-Looking Statements and Non-GAAP Measures - The document contains forward-looking statements regarding financial and operating metrics, future capital allocation, and actions, identified by words such as "believe," "expect," and "anticipate"[3] - Non-GAAP financial measures are included in the document, which supplement GAAP results and are reconciled in the presentation[4] - Adjusted tangible book value per share (Adjusted TBVPS) is a non-GAAP measure reflecting a more conservative assessment of value by adjusting for goodwill, identifiable intangibles, Core OID balance, and Series G discount[62] - Adjusted total net revenue is a non-GAAP measure calculated by excluding Core OID from net financing revenue and adjusting other revenue for OID expenses, repositioning, and changes in fair value of equity securities[79] - Core net income attributable to common shareholders is a non-GAAP measure adjusting GAAP net income for discontinued operations, tax-effected Core OID, repositioning, and significant discrete tax items, serving as the numerator for Adjusted EPS and Core ROTCE[82] - Core original issue discount (Core OID) amortization expense is a non-GAAP measure primarily related to bond exchange OID, excluding international operations and future issuances, impacting Core pre-tax income and Adjusted EPS[83] - Core outstanding original issue discount balance (Core OID balance) is a non-GAAP measure primarily related to bond exchange OID, excluded from Core ROTCE and Adjusted TBVPS calculations[84] - Core pre-tax income is a non-GAAP measure adjusting pre-tax income by excluding Core OID, changes in fair value of equity securities, and repositioning, providing insight into core business performance[85] - Core return on tangible common equity (Core ROTCE) is a non-GAAP measure adjusting tangible common equity for Core OID balance and net DTA, reflecting the company's ability to generate returns on equity[86] - Net financing revenue excluding Core OID is a non-GAAP measure adjusting net financing revenue by excluding Core OID, primarily related to bond exchange OID, to better reflect revenue generation[92] - Tangible Common Equity is a non-GAAP measure defined as common stockholders' equity less goodwill and identifiable intangibles, adjusted for Core OID balance and net deferred tax asset in Core ROTCE calculations[95] Financial Performance and Metrics - Net financing revenue for Q4 2024 was 1,509million,adecreaseof11 million compared to Q3 2024 and an increase of 7millioncomparedtoQ42023[8]−AdjustedotherrevenueforQ42024was564 million, an increase of 8millioncomparedtoQ32024and64 million compared to Q4 2023[8] - Provision for credit losses in Q4 2024 was 557million,adecreaseof88 million compared to Q3 2024 and 30millioncomparedtoQ42023[8]−TotalnoninterestexpenseforQ42024was1,360 million, an increase of 135millioncomparedtoQ32024andadecreaseof56 million compared to Q4 2023[8] - Net income attributable to common shareholders for Q4 2024 was 81million,adecreaseof90 million compared to Q3 2024 and an increase of 46millioncomparedtoQ42023[8]−TotalassetsattheendofQ42024were191,836 million, a decrease of 834millioncomparedtoQ32024and4,493 million compared to Q4 2023[8] - Consumer loans at the end of Q4 2024 were 103,285million,anincreaseof190 million compared to Q3 2024 and a decrease of 1,692millioncomparedtoQ42023[8]−NetinterestmarginforQ42024was3.300.78, an increase of 0.35comparedtoQ32024and0.39 compared to Q4 2023[8] - Total financing revenue and other interest income decreased by 78million(2.2104 million (2.9%) compared to 4Q 23, totaling 3,528millionin4Q24[13]−Netfinancingrevenuefor4Q24was1,509 million, a decrease of 11million(0.77 million (0.5%) from 4Q 23[13] - Total interest expense decreased by 86million(4.6109 million (5.7%) compared to 4Q 23, totaling 1,799millionin4Q24[13]−Netincomeavailabletocommonshareholdersfor4Q24was81 million, a decrease of 90million(52.646 million (131.4%) from 4Q 23[13] - Total assets decreased by 834million(0.44,493 million (2.3%) compared to 4Q 23, totaling 191,836millionin4Q24[17]−Totaldepositliabilitiesdecreasedby376 million (0.2%) compared to 3Q 24 and 3,092million(2.0151,574 million in 4Q 24[17] - Total equity decreased by 511million(3.5200 million (1.5%) compared to 4Q 23, totaling 13,903millionin4Q24[17]−Insurancepremiumsandservicerevenueearnedincreasedby9 million (2.5%) compared to 3Q 24 and 33million(9.9368 million in 4Q 24[13] - Provision for loan losses decreased by 88million(13.630 million (5.1%) compared to 4Q 23, totaling 557millionin4Q24[13]−Totalnoninterestexpenseincreasedby135 million (11.0%) compared to 3Q 24 but decreased by 56million(4.01,360 million in 4Q 24[13] - Total assets decreased by 1.9billioninFY2024comparedtoFY2023,from194.165 billion to 192.266billion[20]−Totalfinancereceivablesandloans,netdecreasedby3.69 billion in 4Q 2024 compared to 4Q 2023, from 140.326billionto136.636 billion[20] - Pre-tax income from continuing operations decreased by 267millioninFY2024comparedtoFY2023,from1.103 billion to 836million[24]−AutomotiveFinancepre−taxincomedecreasedby398 million in FY 2024 compared to FY 2023, from 2.214billionto1.816 billion[24] - Core pre-tax income decreased by 198millioninFY2024comparedtoFY2023,from1.246 billion to 1.047billion[24]−Totalinterest−bearingdepositliabilitiesdecreasedby199 million in FY 2024 compared to FY 2023, from 152.915billionto152.716 billion[20] - Investment in operating leases, net decreased by 1.768billioninFY2024comparedtoFY2023,from9.901 billion to 8.133billion[20]−Retaildepositliabilitiesincreasedby3.426 billion in FY 2024 compared to FY 2023, from 138.968billionto142.394 billion[20] - Long-term debt decreased by 2.42billioninFY2024comparedtoFY2023,from19.226 billion to 16.806billion[20]−CorporateFinancepre−taxincomeincreasedby80 million in FY 2024 compared to FY 2023, from 354millionto434 million[24] - Net financing revenue for Q4 2024 was 1,344million,adecreaseof23 million compared to Q3 2024 and a decrease of 38millioncomparedtoQ42023[28]−TotalfinancingrevenueandotherinterestincomeforQ42024was2,654 million, a decrease of 15millioncomparedtoQ32024butanincreaseof80 million compared to Q4 2023[28] - Consumer loans at the end of Q4 2024 were 83,808million,anincreaseof412 million compared to Q3 2024 but a decrease of 606millioncomparedtoQ42023[28]−CommercialloansattheendofQ42024were22,898 million, a decrease of 944millioncomparedtoQ32024andadecreaseof436 million compared to Q4 2023[28] - Total assets at the end of Q4 2024 were 113,057million,adecreaseof526 million compared to Q3 2024 and a decrease of 2,244millioncomparedtoQ42023[28]−ProvisionforcreditlossesforQ42024was495 million, a decrease of 84millioncomparedtoQ32024andanincreaseof3 million compared to Q4 2023[28] - Total net revenue for Q4 2024 was 1,432million,adecreaseof20 million compared to Q3 2024 and a decrease of 32millioncomparedtoQ42023[28]−NetleaserevenueforQ42024was130 million, a decrease of 17millioncomparedtoQ32024andadecreaseof28 million compared to Q4 2023[28] - The company updated its corporate overhead allocation methodology in Q4 2024 to better reflect how the Chief Operating Decision Maker views and operates the business[28] - Prior period results for 2023 and 2024 have been retrospectively adjusted to reflect a change in the method of accounting for investment tax credits related to electric vehicle lease originations[29] - U.S. Consumer Originations for FY 2024 totaled 39.2billion,adecreaseof0.8 billion compared to FY 2023[31] - Retail standard - new vehicle GM originations in FY 2024 were 4.2billion,down0.1 billion from FY 2023[31] - Used vehicle originations in FY 2024 were 24.5billion,adecreaseof1.3 billion compared to FY 2023[31] - Super prime (760-999 FICO) originations in FY 2024 were 11.2billion,anincreaseof2.2 billion from FY 2023[31] - Total Active DFS Dealers as of 4Q 2024 were 21,787, a decrease of 461 compared to 4Q 2023[31] - Total Application Volume in FY 2024 was 14,607,000, an increase of 775,000 from FY 2023[31] - Floorplan outstandings in 4Q 2024 were 16.4billion,adecreaseof1.1 billion compared to 3Q 2024[31] - Off-lease vehicles terminated - on-balance sheet in FY 2024 were 127,861 units, an increase of 18,105 units from FY 2023[31] - Average gain per vehicle in FY 2024 was 1,033,adecreaseof890 compared to FY 2023[31] - Total gain from off-lease remarketing in FY 2024 was 211million,adecreaseof79 million from FY 2023[31] - Combined ratio for the year improved to 92.5%, compared to 100.6% in the previous year[33] - Total net revenue increased to 1,621millioninFY2024,upfrom1,532 million in FY 2023, a growth of 89million[33]−Insurancepremiumsandservicerevenueearnedroseto1,413 million in FY 2024, an increase of 142millionfrom1,271 million in FY 2023[33] - Net financing revenue grew to 456millioninFY2024,upby26 million from 430millioninFY2023[38]−Totalassetsdecreasedto9,704 million in 4Q 2024, down by 694millionfrom10,398 million in 3Q 2024[38] - Loss ratio for the year stood at 31.3%, compared to 37.1% in the previous year[33] - Total written premiums and revenue increased to 1,472millioninFY2024,upby198 million from 1,274millioninFY2023[33]−Pre−taxincomeroseto434 million in FY 2024, an increase of 80millionfrom354 million in FY 2023[38] - Compensation and benefits expense remained stable at 108millioninbothFY2024andFY2023[33]−Totalnoninterestexpenseincreasedto1,453 million in FY 2024, up by 137millionfrom1,316 million in FY 2023[33] - Net financing revenue decreased by 54millioninQ424comparedtoQ324,totaling592 million[40] - Interest expense dropped by 59millioninQ424comparedtoQ324,reaching573 million[40] - Total net revenue for Q4 24 was 67million,adecreaseof3 million from Q3 24[40] - Provision for loan losses increased by 12millioninQ424comparedtoQ324,totaling67 million[40] - Compensation and benefits expense rose by 9millioninQ424comparedtoQ324,reaching235 million[40] - Goodwill impairment of 118millionwasrecordedinQ424,comparedtononeinQ324[40]−Totalnoninterestexpenseincreasedby132 million in Q4 24 compared to Q3 24, totaling 444million[40]−Pre−taxlossforQ424was444 million, an increase of 147millionfromQ324[40]−Cash,trading,andinvestmentsecuritiesincreasedby224 million in Q4 24 compared to Q3 24, reaching 32,599million[40]−Consumerloansdecreasedby222 million in Q4 24 compared to Q3 24, totaling 19,477million[40]−Endingloanbalancedecreasedto136,030 million in 4Q 24, down 1,471millionfrom3Q24and3,409 million from 4Q 23[43] - 30+ Accruing DPD increased to 3,800millionin4Q24,up4.25543 million in 4Q 24, up 5.03% from 3Q 24 and down 12.84% from 4Q 23[43] - Net charge-off rate increased to 1.59% in 4Q 24, up from 1.50% in 3Q 24 and down from 1.77% in 4Q 23[43] - Provision for loan losses decreased to 557millionin4Q24,down13.64 increased to 3,681millionin4Q24,up4.16488 million in 4Q 24, up 4.50% from 3Q 24 and 3.83% from 4Q 23[43] - Consumer Allowance for loan losses increased to 3,170millionin4Q24,up4 million from 3Q 24 and 87millionfrom4Q23[46]−ConsumerOther–AllyCreditCardAllowanceforloanlossesincreasedto319 million in 4Q 24, up 12millionfrom3Q24and26 million from 4Q 23[46] - Risk-weighted assets decreased to 153.4billionin4Q24,down2.9 billion from 3Q 24 and 8.2billionfrom4Q23[48]−CommonEquityTier1(CET1)capitalratioremainedstableat9.868.5 billion in 4Q 24, up 0.5billionfrom3Q24and5.0 billion from 4Q 23[52] - Retail deposits increased to 143,430millionin4Q24,up1,981 million from 3Q 24 and $1,165 million from 4Q 23[52
Ally(ALLY)2025-01-22 12:46