Group 1 - The article discusses Ally Financial (NYSE: ALLY) and its performance in relation to interest rates and auto loan demand [1] - The author emphasizes the importance of identifying investment opportunities that combine growth and quality factors, highlighting stocks with strong growth narratives supported by robust financial statements [1] - The author's investment experience spans seven years, with a focus on providing insightful analysis on leading financial firms [1] Group 2 - There is no stock, option, or derivative position held by the author in any mentioned companies, nor any plans to initiate such positions in the near future [2] - The article expresses the author's personal opinions and is not influenced by compensation from any company [2] - Seeking Alpha clarifies that past performance does not guarantee future results and that the views expressed may not reflect the platform's overall stance [3]

Group 1 - The Berkshire Hathaway portfolio consists of a diverse range of blue-chip stocks and increasingly includes lesser-known growth investments [1] - Warren Buffett and his team have made specific stock selections that reflect both established companies and emerging growth opportunities [1] Group 2 - The article provides insights into the investment strategies employed by Berkshire Hathaway, highlighting the balance between stability and growth potential [1]

Core Insights - Warren Buffett's investment strategy and Berkshire Hathaway's stock holdings are of significant interest to investors, with a focus on companies that may present potential investment opportunities [1] Group 1: Ally Financial - Ally Financial is the largest indirect car loan company in the U.S., with a market value of $9.7 billion and approximately 11 million customers [4][5] - The company offers a dividend yield of 3.7% and has a price-to-sales ratio of 1.1, below its five-year average of 1.3 [5] - Ally reported a record 3.8 million consumer auto loan applications and a 9% year-over-year increase in insurance written premiums [5] Group 2: Kroger - Kroger is a major grocery retailer with over 400,000 employees and more than 2,000 locations, serving over 63 million households annually [6][7] - The company has a dividend yield of 1.8% and has averaged annual gains of 13.6% over the past 15 years [8] - Kroger's net profit margin is low, recently below 2%, but compensates with high sales volume; its forward P/E ratio is 15, above the five-year average of 12 [8][9] Group 3: Bank of America - Bank of America is a significant holding for Berkshire, comprising about 11% of its portfolio, with a recent dividend yield of 2.8% [10] - The bank operates in various sectors, including consumer banking and global markets, and has reported 12 consecutive quarters of revenue growth [11] - Its stock has a forward P/E of 10.2, below the five-year average of 11.4, indicating appealing valuation [11] Group 4: Sirius XM Holdings - Sirius XM Holdings is a leading audio entertainment provider with around 160 million monthly listeners [12] - The company is undergoing a turnaround, reflected in its lower stock price, with a forward P/E of 6.6, significantly below its five-year average of 14.6 [12] - It offers a dividend yield of 5.3% and is a substantial holding for Berkshire, which owns over a third of the company [13] Group 5: Chevron - Chevron has a market value of nearly $240 billion and offers a dividend yield of 5%, having increased its payout for 38 consecutive years [14] - The company is financially strong with a robust balance sheet, although low oil prices have recently pressured profits [15] - Its forward P/E is 14.6, slightly above the five-year average of 13.6, suggesting it may be overvalued or fairly valued [15]

Core Viewpoint - The article discusses the potential of dividend growth stocks as a strategy for long-term investors amidst market chaos in 2025, highlighting three specific stocks as attractive buying opportunities. Group 1: American Express - American Express is well-positioned to withstand economic downturns due to its focus on wealthier customers and a low net write-off rate of 2.1% in Q1 2025, which is the lowest in the industry [4][3]. - Over half of American Express's revenue comes from credit card swipe fees, and 14% comes from annual fees, providing diverse revenue streams that can support the company during recessions [5]. - The stock is currently priced around $252 with a dividend yield of 1.16%, and the company has increased its dividend by 17% earlier this year, making it a strong candidate for long-term investment [6]. Group 2: Alphabet - Alphabet, the parent company of Google, has recently started paying dividends with a current yield of 0.52% at a share price of around $152, which is considered cheap given its growth potential in AI and cloud computing [7]. - Google Search revenue grew by 12.5% year-over-year to $54 billion, and its cloud division saw a 30% year-over-year revenue increase, indicating strong performance despite competition [8]. - Alphabet's annual dividend per share is $0.80, significantly lower than its free cash flow per share of $5.74, suggesting ample capacity for future dividend growth [9]. Group 3: Ally Financial - Ally Financial is currently trading at $31.60 with a high dividend yield of 3.8%, making it an attractive option for investors seeking strong and growing dividend income [11]. - The company, which operates as a digital bank focusing on automotive loans, faced challenges due to rising interest rates but is now seeing an expansion in its net interest margin (NIM), which increased to 3.31% from 3.16% year-over-year [12][13]. - Ally has the potential to grow its dividend per share again after being stagnant at $0.30 for the last 10 quarters, making it a compelling dividend growth stock [14].

Core Insights - Ally Financial reported first-quarter 2025 adjusted earnings of 58 cents per share, exceeding the Zacks Consensus Estimate of 43 cents, reflecting a 41.5% increase from the previous year [1] Financial Performance - The company completed the sale of Ally Credit Card on April 1, 2025, and executed two securities repositioning transactions to reduce AOCI volatility and improve interest rate risk [2] - Total GAAP net revenues for the quarter were $1.54 billion, down 22.9% year over year, missing the Zacks Consensus Estimate of $1.94 billion; adjusted total revenues were $2.07 billion, up 3.2% from the prior year [4] - Net financing revenues increased slightly to $1.49 billion, driven by lower funding costs, with an adjusted net interest margin of 3.35%, up 16 basis points [5] - Total non-interest expenses rose 24.9% year over year to $1.63 billion, exceeding the estimate of $1.20 billion; adjusted expenses, excluding repositioning-related charges, increased 1.7% to $1.32 billion [6] Asset Quality and Provisions - Total net finance receivables and loans were $130.1 billion, down 1.7% from the prior quarter; deposits slightly declined to $151.4 billion [7] - Non-performing loans increased to $1.42 billion, up 13.2% year over year; net charge-offs were $507 million, down 5.9% from the previous year [8] - The provision for loan losses was $191 million, a decrease of 62.3%, attributed to a reserve release related to the sale of Ally Credit Card [9] Capital Ratios - As of March 31, 2025, the total capital ratio improved to 12.8% from 12.5% year over year; the tier 1 capital ratio rose to 11% from 10.8% [10] Strategic Outlook - The company's restructuring initiatives, balance sheet repositioning, and rising consumer loan demand amid higher interest rates are expected to support financial performance; however, weak credit quality and elevated operating expenses present near-term challenges [11]

Group 1 - Ally Financial's shares have underperformed over the past year, declining by 12% due to concerns over increased credit losses [1] - The economic outlook is worsening, contributing to fears and pushing shares close to a 52-week low [1] - Q1 earnings did not change market sentiment regarding the company's performance [1]

Forward-Looking Statements and Additional Information Ally Financial Inc. 1Q 2025 Earnings Review April 17, 2025 Contact Ally Investor Relations at (866) 710-4623 or investor.relations@ally.com 1Q 2025 Preliminary Results 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 ...

Ally Financial (ALLY) came out with quarterly earnings of $0.58 per share, beating the Zacks Consensus Estimate of $0.43 per share. This compares to earnings of $0.45 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 34.88%. A quarter ago, it was expected that this auto finance company and bank would post earnings of $0.57 per share when it actually produced earnings of $0.78, delivering a surprise of 36.84%.Over the last four q ...

Exhibit 99.3 FIRST QUARTER 2025 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. T ...

Financial Data and Key Metrics Changes - In Q1 2025, adjusted earnings per share were 58 cents, with core pre-tax income of $247 million and adjusted net revenue of $2.1 billion, reflecting solid execution across core businesses [14][15] - Net interest margin for the quarter was 3.35%, up two basis points compared to the previous quarter [14][36] - The company reported a GAAP loss per share of 82 cents for the quarter, primarily due to a pre-tax loss related to securities repositioning [35] Business Line Data and Key Metrics Changes - In the auto finance business, consumer originations reached $10.2 billion, driven by 3.8 million applications, the highest quarterly application volume ever [19] - Insurance written premiums were $385 million, representing a 9% year-over-year increase, with the average number of insurance products sold per dealer increasing to 2.2% [21][22] - Corporate finance delivered pre-tax income of $76 million with a 25% return on equity, maintaining zero net charge-offs [23][24] Market Data and Key Metrics Changes - The digital bank served 3.3 million customers with balances reaching $146 billion, up nearly $3 billion quarter-over-quarter [26] - The company expects tax payments to result in lower deposits in Q2, aiming for approximately flat balances for the full year [27] Company Strategy and Development Direction - The company is focused on simplifying its organization and prioritizing resources in areas with demonstrated competitive advantage, including dealer financial services, corporate finance, and deposits [12] - A multi-year partnership with the WNBA was announced, reinforcing the company's commitment to brand strength and community engagement [10] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's strong position despite macroeconomic uncertainties, emphasizing the importance of focus and strategic execution [13][73] - The company anticipates some near-term volatility due to changes in trade policy but remains optimistic about long-term economic benefits [73] Other Important Information - The transfer of the credit card business to held for sale was completed, which is expected to strengthen the balance sheet [16][17] - The company has taken steps to manage interest rate risk and improve net interest income through strategic repositioning of its securities portfolio [42][43] Q&A Session Summary Question: How do tariffs impact the business? - Management acknowledged the evolving uncertainty regarding tariffs but emphasized the company's strong balance sheet and strategic positioning to navigate the environment [82][84] Question: Can you discuss the NIM outlook? - Management reiterated guidance of 3.4% to 3.5% for 2025, considering various rate scenarios and emphasizing resilience in the business model [92][93] Question: What is the outlook for credit performance? - Management indicated that while there are positive trends in delinquency and flow-to-loss rates, caution is warranted due to macroeconomic uncertainties [116] Question: What is the used car price outlook? - Management noted that used car prices are expected to remain elevated, potentially benefiting the business, but emphasized the uncertainty surrounding future price movements [126][127]