Financial Data and Key Metrics Changes - Adjusted EPS for 2025 was $3.81, up 62% year-over-year [7] - Core ROTCE increased to 10.4%, up more than 300 basis points compared to 2024 [7] - Adjusted net revenue reached $8.5 billion, a 3% increase year-over-year, and a 6% increase when excluding the sale of the card business [11] - CET1 ended the year at 10.2%, with fully phased-in CET1 at 8.3%, up 120 basis points in 2025 [11][37] Business Line Data and Key Metrics Changes - Retail auto and corporate finance loans grew by 5% in 2025, driven by strong momentum in core franchises [13] - Dealer Financial Services originated $43.7 billion in consumer loans, an 11% increase year-over-year [16] - Written premiums in insurance exceeded $1.5 billion, marking a record for Ally [18] - Corporate finance delivered a 28% ROE with strong year-over-year growth in the loan portfolio [18] Market Data and Key Metrics Changes - Retail deposit balances reached $144 billion, reinforcing Ally's position as the largest all-digital direct bank in the U.S. [19] - The customer base grew to 3.5 million, marking the 17th consecutive year of customer growth [20] Company Strategy and Development Direction - The company undertook a strategic refresh in 2025, focusing on investing in areas with clear competitive advantages [6] - A $2 billion open-ended share repurchase authorization was announced, indicating confidence in future growth [14] - The focus remains on organic growth while also considering share repurchases as a capital deployment option [15] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism for 2026, emphasizing the importance of bridging strategy to execution [89] - The company is focused on building strong volumes with appropriate margins in the auto franchise and continuing momentum in corporate finance [90] - Management remains cautious about macroeconomic uncertainties, particularly regarding the labor market and used vehicle prices [95][101] Other Important Information - The company executed two credit risk transfer transactions totaling $10 billion in notional retail auto loans [12] - Adjusted non-interest expense was approximately flat year-over-year, with controllable expenses down 1% [30] Q&A Session Summary Question: Clarification on NIM progression - Management confirmed expectations for NIM to be down in Q1 but expressed confidence in a strong exit trajectory for the year [70][72] Question: Retail auto coverage ratio - Management indicated that reserve releases are not factored into return expectations and are balancing credit quality against macroeconomic uncertainties [78][80] Question: Contextualizing 2026 - Management expressed optimism for 2026, focusing on strong fundamentals and disciplined expense management while being cautious about macroeconomic risks [89][95] Question: Credit performance and delinquencies - Management acknowledged that while delinquencies are improving, macroeconomic factors like unemployment could weigh on future performance [102][104]