Ally(ALLY) - 2024 Q4 - Annual Results

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 $1,509 million, a decrease of $11 million compared to Q3 2024 and an increase of $7 million compared to Q4 2023[8] - Adjusted other revenue for Q4 2024 was $564 million, an increase of $8 million compared to Q3 2024 and $64 million compared to Q4 2023[8] - Provision for credit losses in Q4 2024 was $557 million, a decrease of $88 million compared to Q3 2024 and $30 million compared to Q4 2023[8] - Total noninterest expense for Q4 2024 was $1,360 million, an increase of $135 million compared to Q3 2024 and a decrease of $56 million compared to Q4 2023[8] - Net income attributable to common shareholders for Q4 2024 was $81 million, a decrease of $90 million compared to Q3 2024 and an increase of $46 million compared to Q4 2023[8] - Total assets at the end of Q4 2024 were $191,836 million, a decrease of $834 million compared to Q3 2024 and $4,493 million compared to Q4 2023[8] - Consumer loans at the end of Q4 2024 were $103,285 million, an increase of $190 million compared to Q3 2024 and a decrease of $1,692 million compared to Q4 2023[8] - Net interest margin for Q4 2024 was 3.30%, an increase of 0.01% compared to Q3 2024 and 0.11% compared to Q4 2023[8] - Common Equity Tier 1 (CET1) capital ratio at the end of Q4 2024 was 9.8%, unchanged from Q3 2024 and an increase of 0.4% compared to Q4 2023[8] - Adjusted earnings per share for Q4 2024 was $0.78, an increase of $0.35 compared to Q3 2024 and $0.39 compared to Q4 2023[8] - Total financing revenue and other interest income decreased by $78 million (2.2%) compared to 3Q 24 and $104 million (2.9%) compared to 4Q 23, totaling $3,528 million in 4Q 24[13] - Net financing revenue for 4Q 24 was $1,509 million, a decrease of $11 million (0.7%) from 3Q 24 but an increase of $7 million (0.5%) from 4Q 23[13] - Total interest expense decreased by $86 million (4.6%) compared to 3Q 24 and $109 million (5.7%) compared to 4Q 23, totaling $1,799 million in 4Q 24[13] - Net income available to common shareholders for 4Q 24 was $81 million, a decrease of $90 million (52.6%) from 3Q 24 but an increase of $46 million (131.4%) from 4Q 23[13] - Total assets decreased by $834 million (0.4%) compared to 3Q 24 and $4,493 million (2.3%) compared to 4Q 23, totaling $191,836 million in 4Q 24[17] - Total deposit liabilities decreased by $376 million (0.2%) compared to 3Q 24 and $3,092 million (2.0%) compared to 4Q 23, totaling $151,574 million in 4Q 24[17] - Total equity decreased by $511 million (3.5%) compared to 3Q 24 but increased by $200 million (1.5%) compared to 4Q 23, totaling $13,903 million in 4Q 24[17] - Insurance premiums and service revenue earned increased by $9 million (2.5%) compared to 3Q 24 and $33 million (9.9%) compared to 4Q 23, totaling $368 million in 4Q 24[13] - Provision for loan losses decreased by $88 million (13.6%) compared to 3Q 24 and $30 million (5.1%) compared to 4Q 23, totaling $557 million in 4Q 24[13] - Total noninterest expense increased by $135 million (11.0%) compared to 3Q 24 but decreased by $56 million (4.0%) compared to 4Q 23, totaling $1,360 million in 4Q 24[13] - Total assets decreased by $1.9 billion in FY 2024 compared to FY 2023, from $194.165 billion to $192.266 billion[20] - Total finance receivables and loans, net decreased by $3.69 billion in 4Q 2024 compared to 4Q 2023, from $140.326 billion to $136.636 billion[20] - Pre-tax income from continuing operations decreased by $267 million in FY 2024 compared to FY 2023, from $1.103 billion to $836 million[24] - Automotive Finance pre-tax income decreased by $398 million in FY 2024 compared to FY 2023, from $2.214 billion to $1.816 billion[24] - Core pre-tax income decreased by $198 million in FY 2024 compared to FY 2023, from $1.246 billion to $1.047 billion[24] - Total interest-bearing deposit liabilities decreased by $199 million in FY 2024 compared to FY 2023, from $152.915 billion to $152.716 billion[20] - Investment in operating leases, net decreased by $1.768 billion in FY 2024 compared to FY 2023, from $9.901 billion to $8.133 billion[20] - Retail deposit liabilities increased by $3.426 billion in FY 2024 compared to FY 2023, from $138.968 billion to $142.394 billion[20] - Long-term debt decreased by $2.42 billion in FY 2024 compared to FY 2023, from $19.226 billion to $16.806 billion[20] - Corporate Finance pre-tax income increased by $80 million in FY 2024 compared to FY 2023, from $354 million to $434 million[24] - Net financing revenue for Q4 2024 was $1,344 million, a decrease of $23 million compared to Q3 2024 and a decrease of $38 million compared to Q4 2023[28] - Total financing revenue and other interest income for Q4 2024 was $2,654 million, a decrease of $15 million compared to Q3 2024 but an increase of $80 million compared to Q4 2023[28] - Consumer loans at the end of Q4 2024 were $83,808 million, an increase of $412 million compared to Q3 2024 but a decrease of $606 million compared to Q4 2023[28] - Commercial loans at the end of Q4 2024 were $22,898 million, a decrease of $944 million compared to Q3 2024 and a decrease of $436 million compared to Q4 2023[28] - Total assets at the end of Q4 2024 were $113,057 million, a decrease of $526 million compared to Q3 2024 and a decrease of $2,244 million compared to Q4 2023[28] - Provision for credit losses for Q4 2024 was $495 million, a decrease of $84 million compared to Q3 2024 and an increase of $3 million compared to Q4 2023[28] - Total net revenue for Q4 2024 was $1,432 million, a decrease of $20 million compared to Q3 2024 and a decrease of $32 million compared to Q4 2023[28] - Net lease revenue for Q4 2024 was $130 million, a decrease of $17 million compared to Q3 2024 and a decrease of $28 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 $39.2 billion, a decrease of $0.8 billion compared to FY 2023[31] - Retail standard - new vehicle GM originations in FY 2024 were $4.2 billion, down $0.1 billion from FY 2023[31] - Used vehicle originations in FY 2024 were $24.5 billion, a decrease of $1.3 billion compared to FY 2023[31] - Super prime (760-999 FICO) originations in FY 2024 were $11.2 billion, an increase of $2.2 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 $16.4 billion, a decrease of $1.1 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, a decrease of $890 compared to FY 2023[31] - Total gain from off-lease remarketing in FY 2024 was $211 million, a decrease of $79 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 $1,621 million in FY 2024, up from $1,532 million in FY 2023, a growth of $89 million[33] - Insurance premiums and service revenue earned rose to $1,413 million in FY 2024, an increase of $142 million from $1,271 million in FY 2023[33] - Net financing revenue grew to $456 million in FY 2024, up by $26 million from $430 million in FY 2023[38] - Total assets decreased to $9,704 million in 4Q 2024, down by $694 million from $10,398 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 $1,472 million in FY 2024, up by $198 million from $1,274 million in FY 2023[33] - Pre-tax income rose to $434 million in FY 2024, an increase of $80 million from $354 million in FY 2023[38] - Compensation and benefits expense remained stable at $108 million in both FY 2024 and FY 2023[33] - Total noninterest expense increased to $1,453 million in FY 2024, up by $137 million from $1,316 million in FY 2023[33] - Net financing revenue decreased by $54 million in Q4 24 compared to Q3 24, totaling $592 million[40] - Interest expense dropped by $59 million in Q4 24 compared to Q3 24, reaching $573 million[40] - Total net revenue for Q4 24 was $67 million, a decrease of $3 million from Q3 24[40] - Provision for loan losses increased by $12 million in Q4 24 compared to Q3 24, totaling $67 million[40] - Compensation and benefits expense rose by $9 million in Q4 24 compared to Q3 24, reaching $235 million[40] - Goodwill impairment of $118 million was recorded in Q4 24, compared to none in Q3 24[40] - Total noninterest expense increased by $132 million in Q4 24 compared to Q3 24, totaling $444 million[40] - Pre-tax loss for Q4 24 was $444 million, an increase of $147 million from Q3 24[40] - Cash, trading, and investment securities increased by $224 million in Q4 24 compared to Q3 24, reaching $32,599 million[40] - Consumer loans decreased by $222 million in Q4 24 compared to Q3 24, totaling $19,477 million[40] - Ending loan balance decreased to $136,030 million in 4Q 24, down $1,471 million from 3Q 24 and $3,409 million from 4Q 23[43] - 30+ Accruing DPD increased to $3,800 million in 4Q 24, up 4.25% from 3Q 24 and down 1.45% from 4Q 23[43] - Net charge-offs rose to $543 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 $557 million in 4Q 24, down 13.64% from 3Q 24 and 5.11% from 4Q 23[43] - ALLL as % of Loans increased to 2.73% in 4Q 24, up from 2.69% in 3Q 24 and 2.57% in 4Q 23[43] - U.S. Auto 30+ Delinquent contract $ increased to $3,681 million in 4Q 24, up 4.16% from 3Q 24 and down 1.31% from 4Q 23[43] - U.S. Auto Annualized Net Charge-Offs increased to $488 million in 4Q 24, up 4.50% from 3Q 24 and 3.83% from 4Q 23[43] - Consumer Allowance for loan losses increased to $3,170 million in 4Q 24, up $4 million from 3Q 24 and $87 million from 4Q 23[46] - Consumer Other – Ally Credit Card Allowance for loan losses increased to $319 million in 4Q 24, up $12 million from 3Q 24 and $26 million from 4Q 23[46] - Risk-weighted assets decreased to $153.4 billion in 4Q 24, down $2.9 billion from 3Q 24 and $8.2 billion from 4Q 23[48] - Common Equity Tier 1 (CET1) capital ratio remained stable at 9.8% in 4Q 24, unchanged from 3Q 24 and up from 9.4% in 4Q 23[48] - Total capital ratio increased to 13.2% in 4Q 24, up from 12.9% in 3Q 24 and 12.4% in 4Q 23[48] - Tangible common equity / Tangible assets ratio decreased to 5.7% in 4Q 24, down from 5.9% in 3Q 24 but up from 5.4% in 4Q 23[48] - Total current available liquidity increased to $68.5 billion in 4Q 24, up $0.5 billion from 3Q 24 and $5.0 billion from 4Q 23[52] - Retail deposits increased to $143,430 million in 4Q 24, up $1,981 million from 3Q 24 and $1,165 million from 4Q 23[52