Ally Financial : Q1 2019 Ally Financial Inc. Earnings Conference Call Presentation

Ally Financial Inc.

1Q 2019 Earnings Review

April 18, 2019

Contact Ally Investor Relations at [phone] or [e-mail]

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 statements about the outlook for various financial and operating metrics and statements about future capital allocation and actions. 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, 2018, 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 U.S. 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.

Unless the context otherwise requires, the following definitions apply. The term "loans" means the following consumer and commercial products associated with our direct and indirect financing activities: loans, retail installment sales contracts, lines of credit, and other financing products excluding operating leases. The term "operating leases" means consumer- and commercial- vehicle lease agreements where Ally is the lessor and the lessee is generally not obligated to acquire ownership of the vehicle at lease-end or compensate Ally for the vehicle's residual value. The terms "lend," "finance," and "originate" mean our direct extension or origination of loans, our purchase or acquisition of loans, or our purchase of operating leases as applicable. The term "consumer" means all consumer products associated with our loan and operating-lease activities and all commercial retail installment sales contracts. The term "commercial" means all commercial products associated with our loan activities, other than commercial retail installment sales contracts.

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GAAP and Core Results

($ millions except per share data)		1Q 19			4Q 18			3Q 18			2Q 18			1Q 18
GAAP net income attributable to common shareholders ("NIAC")	$	374	$		290	$		374	$		349	$		250
Core net income attributable to common shareholders (1)(2)	$	325	$		382	$		386	$		358	$		300
GAAP earnings per common share ("EPS") (diluted, NIAC)	$	0.92	$		0.70	$		0.88	$		0.81	$		0.57
Adjusted EPS (1)(3)	$	0.80	$		0.92	$		0.91	$		0.83	$		0.68
Return (net income) on GAAP shareholder's equity		11.1%			8.8%			11.4%			10.6%			7.5%
Core ROTCE (1)(4)		10.9%			13.4%			13.7%			12.8%			10.6%
GAAP common shareholder's equity per share	$	34.3	$		32.8	$		31.4	$		30.9	$		30.2
Adjusted tangible book value per share (1)(5)	$	31.4	$		29.9	$		28.6	$		28.1	$		27.4
Efficiency Ratio		51.9%			55.9%			53.6%			57.5%			58.0%
Adjusted Efficiency Ratio (1)(6)		48.9%			46.9%			46.0%			47.7%			50.1%
GAAP total net revenue	$	1,598	$		1,438	$		1,505	$		1,458	$		1,403
Adjusted total net revenue (1)(7)	$	1,535	$		1,556	$		1,521	$		1,471	$		1,463

(1)The following are non-GAAP financial measures which Ally believes are important to the reader of the Consolidated Financial Statements, but which are supplemental to and not a substitute for GAAP measures: Adjusted Earnings per Share (Adjusted EPS), Core Pre-Tax Income, Core Net Income Attributable to Common Shareholders, Core Return on Tangible Common Equity (Core ROTCE), Adjusted Efficiency Ratio, fully phased-in Common Equity Tier 1 (CET1) capital, Adjusted Total Net Revenue, Net Financing Revenue, excluding Core OID, Adjusted Other Revenue, Core original issue discount (Core OID) amortization expense, Core outstanding original issue discount balance (Core OID balance), and Adjusted Tangible Book Value per Share (Adjusted TBVPS). These measures are used by management and we believe are useful to investors in assessing the company's operating performance and capital. Refer to the Definitions of Non-GAAP Financial Measures and Other Key Terms, and Reconciliation to GAAP later in this document.

(2)Core net income attributable to common shareholders is a non-GAAP financial measure that serves as the numerator in the calculations of Adjusted EPS and Core ROTCE and that, like those measures, is believed by management to help the reader better understand the operating performance of the core businesses and their ability to generate earnings. See pages 23 and 24 for calculation methodology and details.

(3)Adjusted earnings per share (Adjusted EPS) is a non-GAAP financial measure that adjusts GAAP EPS for revenue and expense items that are typically strategic in nature or that management otherwise does not view as reflecting the operating performance of the company. Management believes Adjusted EPS can help the reader better understand the operating performance of the core businesses and their ability to generate earnings. See page 24 for calculation methodology and details.

(4)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 Core OID balance and the net deferred tax asset. See page 26 for calculation methodology and details.

(5)Adjusted tangible book value per share (Adjusted TBVPS) is a non-GAAP financial measure that reflects the book value of equity attributable to shareholders even if tax-effected Core OID balance were accelerated immediately through the financial statements. As a result, management believes Adjusted TBVPS provides the reader with an assessment of value that is more conservative than GAAP common shareholder's equity per share. See page 25 for calculation methodology and details.

(6)Adjusted efficiency ratio is a non-GAAP financial measure that management believes is helpful to readers in comparing the efficiency of its core banking and lending businesses with those of its peers. Adjusted efficiency ratio generally adjusts for Insurance segment revenue and expense, rep and warrant expense and Core OID. See page 27 for calculation methodology and details.

(7)Adjusted total net revenue is a non-GAAP financial measure that adjusts GAAP total net revenue for Core OID and for change in the fair value of equity securities due to the implementation of ASU 2016-01 which requires change in the fair value of equity securities to be recognized in current period net income as compared to periods prior to 1/1/18 in which such adjustments were recognized through other comprehensive income, a component of equity. See page 30 for calculation methodology and details.

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First Quarter 2019 Highlights

Delivering Sustained Progress

> Adjusted EPS(1) of 80 cents - up 17% YoY | Core ROTCE(1) of 10.9%, up 37 bps YoY

▪Adjusted total net revenue(1) over $1.5 billion - up 5% YoY

>Steady execution of auto optimization - driving improved risk-adjusted returns

▪Consumer auto originations of $9.2 billion - sourced from 3.2 million applications, highest application quarter ever

▪Estimated retail auto originated yield(2) of 7.56% - up 108 bps YoY with consistent credit profile

▪Retail auto net-charge off rate of 1.32% - down 15 bps YoY

>Strong YoY deposit growth of $15.9 billion - deposit balances of $113.3 billion

▪1Q 19 retail deposit growth of $6.3 billion - highest quarterly growth ever; 2nd consecutive quarter of highest growth

▪Total retail deposit customers of 1.8 million - grew by 120,000 during 1Q 19, highest quarter ever

>Ongoing momentum in growth businesses and digital product offerings

▪Corporate Finance held-for-investment balances up 17% YoY

▪Ally Invest - highest quarterly net funded account growth since acquisition; net funded accounts up 24% YoY

▪ Ally Home® - highest quarterly direct-to-consumer production | Announcing Better.com partnership

>Ally Board of Directors authorized up to $1.25 billion in common share repurchases(3)

▪Authorization for 3Q 19 - 2Q 20, increased from previously announced $1.0 billion authorization from 3Q 18 - 2Q 19

(1)Represents a non-GAAP financial measure. See pages 24, 26 and 30 for calculation methodology and details.

(2)Estimated Retail Auto Originated Yield is a forward-lookingnon-GAAP financial measure determined by calculating the estimated average annualized yield for loans originated during the period.

(3)Actions in connection with the repurchase program will be subject to various factors, including Ally's capital and liquidity positions, regulatory and accounting considerations (including Accounting Standards Update 2016-13, Financial Instruments - Credit Losses , commonly known as CECL), Ally's financial and operational performance, alternative uses of capital, the trading price of Ally's

common stock, and market conditions. The repurchase program does not obligate Ally to acquire a specific dollar amount or number of shares and may be extended, modified, or discontinued at	4
any time.

Core Metric Trends

Adjusted Earnings Per Share(1)

$0.91 $0.92

$0.83$0.80

$0.65 $0.70 $0.68

	$0.54	$0.56	$0.54	$0.58
$0.52
				$0.48

1Q 16

2Q 16

3Q 16

4Q 16

1Q 17

2Q 17

3Q 17

4Q 17

1Q 18

2Q 18

3Q 18

4Q 18

1Q 19

(1) Represents a non-GAAP financial measure. See page 24 for details.

Adjusted Total Net Revenue(2)

($ millions)
																						$1,521			$1,556		$1,535
											$1,472		$1,480		$1,492		$1,463			$1,471					$393
																							$392				$396
																$379
$1,344		$1,372		$1,399		$1,383			$1,391			$388		$381				$394			$356
					$388
										$396
			$374				$392
	$380															$1,113					$1,115		$1,129		$1,163		$1,139
												$1,084		$1,099				$1,069
					$1,011
	$964		$998				$991			$995
	1Q 16		2Q 16		3Q 16		4Q 16			1Q 17		2Q 17		3Q 17		4Q 17		1Q 18			2Q 18		3Q 18		4Q 18		1Q 19
			Net financing revenue (excluding Core OID)																Other Revenue (adjusted)

(2) Represents a non-GAAP financial measure. See page 30 for details.

Total Deposits

($ billions)																												$113.3
																	$93.3				$97.4		$98.7		$101.4$106.2
															$90.1														$17.9
					$75.7				$79.0		$84.5		$86.2								$15.8		$17.0		$16.8		$17.1
			$72.8														$15.3
$70.3															$15.2
													$15.1
											$14.5
					$11.9				$12.4
	$11.3		$11.6																						$84.6		$89.1		$95.4
																	$77.9				$81.7		$81.7
											$70.0		$71.1		$74.9
					$63.9				$66.6
	$59.0		$61.2
	1Q 16		2Q 16		3Q 16				4Q 16		1Q 17		2Q 17		3Q 17		4Q 17				1Q 18		2Q 18		3Q 18		4Q 18		1Q 19
							Retail Deposits												Brokered / Other

Note: Brokered includes sweep deposits. Other includes mortgage escrow, dealer, and other deposits.

Adjusted Tangible Book Value per Share(3)

$31.4

$29.9

$27.4 $28.2 $28.1 $27.4 $28.1 $28.6

$25.4 $25.9 $26.3 $26.2 $26.6

1Q 16

2Q 16

3Q 16

4Q 16

1Q 17

2Q 17

3Q 17

4Q 17

1Q 18

2Q 18

3Q 18

4Q 18

1Q 19

(3) Represents a non-GAAP financial measure. See page 25 for details.

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