Ally Financial : Q2 2019 Ally Financial Inc. Earnings Conference Call Presentation

Ally Financial Inc.

2Q 2019 Earnings Review

July 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.

2Q 2019 Preliminary Results	2

GAAP and Core Results

($ millions except per share data)		2Q 19			1Q 19			4Q 18			3Q 18			2Q 18
GAAP net income attributable to common shareholders ("NIAC")	$	582	$	374	$	290	$	374	$	349
Core net income attributable to common shareholders (1)(2)	$	387	$	325	$	382	$	386	$	358
GAAP earnings per common share ("EPS") (diluted, NIAC)	$	1.46	$	0.92	$	0.70	$	0.88	$	0.81
Adjusted EPS (1)(3)	$	0.97	$	0.80	$	0.92	$	0.91	$	0.83
Return (net income) on GAAP shareholder's equity		16.6%			11.1%			8.8%			11.4%			10.6%
Core ROTCE (1)(4)		12.4%			10.9%			13.4%			13.7%			12.8%
GAAP common shareholder's equity per share	$	36.4	$	34.3	$	32.8	$	31.4	$	30.9
Adjusted tangible book value per share (1)(5)	$	33.6	$	31.4	$	29.9	$	28.6	$	28.1
Efficiency Ratio		56.8%			51.9%			55.9%			53.6%			57.5%
Adjusted Efficiency Ratio (1)(6)		46.1%			48.9%			46.9%			46.0%			47.7%
GAAP total net revenue	$	1,552	$	1,598	$	1,438	$	1,505	$	1,458
Adjusted total net revenue (1)(7)	$	1,557	$	1,535	$	1,556	$	1,521	$	1,471

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.

2Q 2019 Preliminary Results	3

Second Quarter 2019 Highlights

Ongoing Execution and Sustained Progress

• Adjusted EPS(1) of 97 cents - up 17% YoY | Core ROTCE(1) of 12.4%
• • Adjusted total net revenue(1) of $1.56 billion - up 6% YoY
• Sustained optimization of auto business - higher risk-adjusted returns continue

▪

▪

Consumer auto originations of $9.7 billion - sourced from record 3.3 million applications

Continued retail auto portfolio yield expansion, up 50 bps YoY and lower YoY retail auto net-charge offs

• • Estimated retail auto originated yield(2) of 7.60% - up 56 bps YoY despite benchmark decreases YTD
  • Retail auto net-charge off rate of 0.95% - down 9 bps YoY
• Strong YoY deposit growth of $17.6 billion - deposit balances of $116.3 billion

▪

▪

2Q 19 retail deposit growth of $3.2 billion - highest second quarter growth ever for Ally Bank

Total retail deposit customers of 1.87 million, up ~100k in 2Q 19 - highest second quarter growth ever for Ally Bank

• Ongoing momentum in growth businesses and digital product offerings
• • Corporate Finance held-for-investment balances up 15% YoY
  • Ally Invest - self-directed net funded accounts up 24% YoY
  • Ally Home® - $0.6 billion direct-to-consumer originations in 2Q - highest quarterly direct-to-consumer originations
  • Agreed to acquire digital point-of-sale payment solution, Health Credit Services for $190 million
• Initiated $1.25 billion share repurchase program(3) in early July
• • Executed 2018 Capital Plan - repurchased $1 billion of common stock from July '18 - June '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.

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

common stock, & market conditions. Repurchase program does not obligate Ally to acquire a specific dollar amount or number of shares and may be extended, modified, or discontinued at any time.	4
2Q 2019 Preliminary Results

Core Metric Trends

Adjusted Earnings Per Share(1)

$0.91	$0.92	$0.97

$0.83$0.80

$0.65 $0.70 $0.68

$0.54	$0.56	$0.54	$0.58

$0.48

2Q 16

3Q 16

4Q 16

1Q 17

2Q 17

3Q 17

4Q 17

1Q 18

2Q 18

3Q 18

4Q 18

1Q 19

2Q 19

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

Adjusted Total Net Revenue(2)

($ millions)																				$1,556			$1,557
																							$1,535
									$1,472			$1,492			$1,471	$1,521
									$1,480	$1,463		$393		$393
													$396
										$392
														$379
$1,372	$1,399	$1,383	$1,391		$388		$381				$394		$356
			$388				$396
	$374			$392
														$1,113				$1,115		$1,129		$1,163		$1,139		$1,164
										$1,084		$1,099			$1,069
			$1,011
	$998			$991		$995
	2Q 16		3Q 16		4Q 16		1Q 17		2Q 17		3Q 17		4Q 17		1Q 18		2Q 18		3Q 18		4Q 18	1Q 19	2Q 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	$116.3
																$97.4	$98.7	$101.4	$106.2
																		$17.7
												$90.1	$93.3	$17.9
								$84.5	$86.2									$17.1
		$75.7	$79.0					$15.8		$17.0		$16.8
$72.8			$15.1		$15.2		$15.3
						$14.5
			$11.9		$12.4
	$11.6																					$84.6		$89.1		$95.4		$98.6
														$77.9		$81.7		$81.7
								$70.0		$71.1		$74.9
			$63.9		$66.6
	$61.2
	2Q 16		3Q 16	4Q 16	1Q 17	2Q 17	3Q 17	4Q 17	1Q 18	2Q 18	3Q 18	4Q 18		1Q 19		2Q 19
						Retail Deposits							Brokered / Other

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

2Q 2019 Preliminary Results

Adjusted Tangible Book Value per Share(3)

$33.6

$31.4

$29.9

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

$25.9 $26.3 $26.2 $26.6

2Q 16

3Q 16

4Q 16

1Q 17

2Q 17

3Q 17

4Q 17

1Q 18

2Q 18

3Q 18

4Q 18

1Q 19

2Q 19

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

5

Second Quarter 2019 Financial Results

($ millions; except per share data)										Increase / (Decrease) vs.
		2Q 19			1Q 19			2Q 18			1Q 19			2Q 18
Net financing revenue (excluding Core OID) (1)	$	1,164	$	1,139	$	1,115	$	25	$	49
Core OID		(7)			(7)			(21)			(0)			14
Net financing revenue (as reported)	$	1,157	$	1,132	$	1,094	$	25	$	63
Other revenue (excluding change in fair value of equity securities) (2)		393			396			356			(4)			37
Change in fair value of equity securities (2)		2			70			8			(67)			(6)
Other revenue (as reported)		395			466			364			(71)			31
Provision for loan losses		177			282			158			(105)			19
Noninterest expense		881			830			839			51			42

Pre-tax income from continuing operations	$	494	$	486	$	461	$	8	$	33
Income tax (benefit) / expense			(90)			111			113				(201)			(203)
(Loss) / income from discontinued operations, net of tax			(2)			(1)			1				(1)			(3)
Net income		$	582	$	374	$	349	$	208	$	233
				2Q 19			1Q 19			2Q 18				1Q 19			2Q 18
GAAP EPS (diluted)			$	1.46	$	0.92	$	0.81		$	0.53	$	0.65
Discontinued operations, net of tax			0.01			0.00			(0.00)				0.00			0.01
Core OID, net of tax				0.01			0.01			0.04				0.00			(0.02)
Change in fair value of equity securities, net of tax			(0.00)			(0.14)			(0.01)				0.13			0.01
Significant discrete tax items (4)			(0.50)			-			-				(0.50)			(0.50)
Adjusted EPS (3)			$	0.97		$	0.80		$	0.83			$	0.17		$	0.14
Core ROTCE (3)				12.4%			10.9%			12.8%
Adjusted Efficiency Ratio (3)			46.1%			48.9%			47.7%
Effective Tax Rate	Excluding discrete tax benefit of $201M:	22.5%	(4)	-18.2%			22.8%			24.5%

1. Represents a non-GAAP financial measure. Adjusted for Core OID. See pages 23 and 30 for calculation methodology and details.
2. Represents a non-GAAP financial measure. Adjusted 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. For Non-GAAP calculation methodology and details see page 30.
3. For Non-GAAP calculation methodology and details see pages 24, 26 and 27.
4. Significant discrete tax items do not relate to the operating performance of the core businesses. 2Q 19 effective tax rate was impacted primarily due to a release of valuation allowance on foreign tax credit carryforwards during the second quarter of 2019. Ally's effective tax rate was -18.2% for 2Q 19; excluding the discrete tax benefit of $201 million (0.50 EPS impact), the adjusted effective tax rate would be 22.5%, which represents a non-GAAP financial measure. See page 22 for calculation methodology.

2Q 2019 Preliminary Results	6

Balance Sheet and Net Interest Margin

($ millions)		2Q 19				1Q 19				2Q 18
		Average				Average				Average
		Balance	Yield			Balance	Yield			Balance	Yield
Retail Auto Loan	$	72,274	6.58%	$	70,981	6.47%	$	69,941	6.08%
Auto Lease (net of depreciation)		8,370	5.94%			8,389	5.56%			8,583	5.09%
Commercial Auto		34,757	4.75%			35,641	4.80%			35,470	4.20%
Corporate Finance		5,080	7.66%			4,825	7.48%			4,232	7.96%
Mortgage		17,841	3.71%			17,186	3.82%			14,767	3.59%
Cash, Securities and Other		36,348	2.96%			34,987	3.09%			30,499	2.77%
Total Earning Assets	$	174,670	5.17%	$	172,009	5.16%	$	163,492	4.83%
Unsecured Debt (1)(4)	$	12,749	6.32%	$	12,664	6.37%	$	15,728	5.76%
Secured Debt		13,722	3.16%			16,163	3.11%			17,638	2.65%
Deposits (2)		114,392	2.29%			109,309	2.20%			97,477	1.64%
Other Borrowings (3)		20,720	2.48%			21,712	2.48%			22,351	1.97%
Total Funding Sources (1)	$	161,583	2.70%	$	159,848	2.66%	$	153,194	2.23%
NIM (excluding Core OID) (1)		2.67%				2.69%				2.74%
NIM (as reported)		2.66%				2.67%				2.68%

1. Represents a non-GAAP financial measure. Excludes Core OID. See page 23 and 30 for calculation methodology and details.
2. Includes brokered (inclusive of sweep deposits) and other deposits (inclusive of mortgage escrow, dealer, and other deposits).
3. Includes Demand Notes, FHLB borrowings and Repurchase Agreements.
4. Includes trust preferred securities.

2Q 2019 Preliminary Results	7

Deposits

• Total deposits of $116.3 billion, up 18% YoY
• • Customer retention of 96% - stable and strong
• Deposits represent 72% of total funding(1)
• Cumulative retail portfolio beta of 48% since 3Q 15
• Record-highsecond quarter retail balance growth
• • Inflows from new and existing customers more than offset higher YoY tax outflows
  • 1.87 million retail deposit customers, up 23% YoY
• Ending retail deposits at $98.6 billion, up $16.9 billion YoY and up $3.2 billion QoQ
• • Average retail deposits up $15.6 billion YoY and up $5.0 billion QoQ
• Kiplinger's named Ally "Best Internet Bank" for the third consecutive year and "Best Bank for No-Fee, No Fuss"

Retail Deposit Balance Growth

Deposit Levels (EOP) and Customer Retention Rate

($ billions)

									$106.2	$113.3	$116.3
	$98.7		$101.4
														$17.9			$17.7
					$16.8			$17.1
	$17.0
									96%					96%			96%
	96%
			96%							$95.4			$98.6
	$81.7			$84.6			$89.1
	2Q 18	3Q 18			4Q 18			1Q 19	2Q 19
			Retail			Brokered / Other		Customer Retention Rate

Note: Brokered includes sweep deposits. Other includes mortgage escrow, dealer, and other deposits. See page 23 for Customer Retention Rate definition.

Deposit Mix and Retail Rate Trend	Retail Deposit Customer Growth
Deposit Composition (EOP) and Average Retail Portfolio Interest Rate	Retail Deposit Customer Growth
		(thousands)

	48%		49%		50%		50%		51%
					2.22%
				2.14%
					1.93%
			1.78%
	1.58%
	34%		34%		34%		34%		34%
	17%		17%
			16%		16%		15%
	2Q 18		3Q 18		4Q 18		1Q 19		2Q 19

41

59

			41
			52
			49
1,105		28	56
	41
	43

1,866

100

120

72

57

		Brokered / Other		Retail CD		MMA/OSA/Checking		Average Retail Portfolio Interest Rate	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 2Q 19
Note: Brokered includes sweep deposits. Other includes mortgage escrow, dealer, and other deposits.		8
2Q 2019 Preliminary Results				(1) Excludes Core OID balance.

Capital

• Preliminary fully phased-in Basel III CET1 ratio of 9.5%
• • QoQ increase driven by ongoing earnings growth and a discrete tax benefit on a valuation allowance release of $201 million
• Repurchased 7.8M shares in 2Q 19, completing $1 billion 2018 Capital Plan
• • 102 million shares repurchased, representing 18.8% reduction since program inception in mid-2016

Capital Ratios(1) and Risk-Weighted Assets

12.6%			12.7%							12.5%		12.7%
				12.3%
11.1%			11.1%						11.0%		11.2%
			10.8%
										9.5%
	9.3%			9.4%			9.3%
					9.1%

$142

$143

$147

$146

$146

2Q 18	3Q 18		4Q 18	1Q 19	2Q 19
Risk-Weighted Assets ($B)		Total Capital Ratio			Tier 1 Ratio			CET1

(1) All capital ratios represent fully phased-in Basel III, which are non-GAAP financial measures; See page 28 for details.

Shareholder Distributions - Share Repurchases and Common Stock Dividends

		2Q 19		Since
			Inception
Shares Repurchased (MM)		7.8		102.1
Dollars ($MM)		$229		$2,457
Average Price Paid Per Share		$29.42		$24.06
Shares Outstanding Decrease (net)		-1.7%		-18.8%

Note: 'Since Inception' is activity in 3Q 16 - 2Q 19. Shares Repurchased include shares withheld to cover income taxes owed by participants related to share-based incentive plans. Excludes commissions.

Outstanding Shares (# millions)	Dividend Per Share
2Q 16		2Q 16		$-
484
3Q 16	475	3Q 16		$0.08
4Q 16	467	4Q 16		$0.08
1Q 17	462	1Q 17		$0.08
2Q 17	452	2Q 17		$0.08
3Q 17	444	3Q 17		$0.12
4Q 17	437	4Q 17		$0.12
1Q 18	433	1Q 18		$0.13
2Q 18	426	2Q 18		$0.13
3Q 18	417	3Q 18		$0.15
4Q 18	405	4Q 18		$0.15
1Q 19	400	1Q 19		$0.17
2Q 19	393	2Q 19		$0.17

2Q 2019 Preliminary Results	9

Asset Quality

Consolidated Net Charge-Offs

					1.01%
	0.85%						0.84%							0.85%
									0.75%
																0.73%
										0.57%											0.56%
127%	105%	123%	175%	133%	115%	136%	176%
		3Q 17			4Q 17		1Q 18		2Q 18		3Q 18			4Q 18		1Q 19		2Q 19
						ALLL as % of Annualized NCOs					Annualized NCO Rate
Coverage Ratio
1.08%	1.04%	1.02%	1.00%	0.99%	0.96%	0.99%	0.99%

Note: Above loans are classified as held-for-investment and recorded at gross carrying value.

Provision Expense

($ millions)
Provision Expense	2Q 18	3Q 18	4Q 18	1Q 19	2Q 19
Retail Auto	$	168	$	229	$	261	$	257	$	180
Commercial Auto		2		-		1		5		-
Mortgage Finance		-		2		(3)		2		-
Corporate Finance		(6)		8		10		23		3
Corp/Other		(6)		(6)		(3)		(5)		(6)
Total	$	158	$	233	$	266	$	282	$	177
Retail Auto Coverage Ratio	1.49%	1.49%	1.49%	1.50%	1.48%
Retail Auto Loan Bal (EOP, $ billions)	$	70.5	$	70.0	$	70.5	$	71.5	$	72.7

Note: Retail auto loans exclude fair value adjustments for loans in hedge accounting relationship.

Retail Auto Net Charge-Offs

				1.74%
																		1.48%
								1.47%
	1.45%
										1.32%
		$294	$253				$259		1.32%
$242							1.04%
						$233	$234		0.95%
							$182
																				$172
	3Q 17			4Q 17		1Q 18		2Q 18		3Q 18			4Q 18		1Q 19	2Q 19
						Net Charge-Offs ($M)							Annualized NCO Rate

Note: See page 23 for definition.

Retail Auto Delinquencies (60+ DPD)

(60+ DPD)

														0.70%
				0.64%
									0.57%
		0.56%															0.56%
									0.49%								0.48%
$379	$437			0.47%			$401	$495		$405
				$324	$345							$345
		3Q 17		4Q 17		1Q 18		2Q 18	3Q 18		4Q 18		1Q 19		2Q 19
30+ DPD				Delinquent Contracts ($M)							Delinquency Rate
3.05%	3.43%	2.61%	2.78%		3.06%	3.55%	2.56%	2.90%

Note: Includes accruing contracts only. Days-past-due ("DPD").

2Q 2019 Preliminary Results	10

Auto Finance - Results

• Pre-taxincome of $459 million, up $77 million YoY and up $130 million QoQ
• • Net financing revenue increased QoQ and YoY due to higher retail yields and retail portfolio growth
  • Other revenue down QoQ and YoY due to lower loan sale gain activity
  • Provision up YoY as lower net-charge offs were offset by reserve releases in the prior year that did not repeat
  • • QoQ decline from seasonally lower net charge-offs
• $114.7 billion of earning assets, relatively flat YoY due to retail asset growth offsetting lower commercial balances
• Continued optimization of adaptable and leading auto finance franchise
• • Strong application flow of 3.3 million in 2Q, up 8% YoY and highest level ever for Ally
  • Strong dealer relationships(2) at 18.1k in 2Q - 21 consecutive quarters of growth

					Increase/(Decrease) vs.
Key Financials ($ millions)		2Q 19				1Q 19			2Q 18
Net financing revenue	$	1,022	$	42	$	97
Total other revenue		61				(7)			(2)
Total net revenue		1,083				35			95
Provision for loan losses		180				(82)			10
Noninterest expense(1)		444				(13)			8
Pre-tax income	$	459	$	130	$	77
U.S. auto earning assets (EOP)	$	114,728	$	(827)	$	(68)
Net lease revenue ($ millions)
Operating lease revenue	$	363	$	2	$	(11)
Depreciation expense		261				(1)			(21)
Remarketing gains		23				8			7
Total depreciation expense		239				(7)			(26)
Net lease revenue	$	124	$	9	$	15
Lease yield, net		5.94%				0.38%			0.85%
Average gain per vehicle	$	776	$	203	$	329
Off-lease vehicles terminated		29,267				3,237			(6,652)

(On-balance sheet - # in units)

1. Noninterest expense includes corporate allocations of $180 million in 2Q 2019, $189 million in 1Q 2019, and $172 million in 2Q 2018

Retail Auto Portfolio, NCO ∆ YoY and Estimated Retail Auto Originated Yield(3)

Portfolio Yield

			Estimated Retail Auto Originated Yield (3)
									7.53%								7.56%				7.60%
			Retail auto net-charge off rate - YoY change										7.33%
							7.04%
													0.46%
														6.47%								6.48%							6.39% 6.47% 6.58%
							0.37%			0.37%
															6.21%		6.14%
				0.29%			6.13%
														0.26%							6.08% 6.20%
	5.84%
			5.90%												0.17%
		5.83%				5.70%
													0.08%
		0.14%										5.90% 5.90%
					5.58% 5.64% 5.66%	5.80%	5.82%
	5.31% 5.47%
										-0.07%
																					-0.13%										-0.09%
																					-0.15%
																					-0.16%
																															-0.26%

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 2Q 19

(2)	Dealer relationships include Ally active dealers, excluding RV Commercial and Consumer lines of business exited in 2Q 18
(3)	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.		11
2Q 2019 Preliminary Results

Auto Finance - Key Metrics

Consumer Originations

($ billions; % of $ originations)

		$9.5	$9.6												$9.2				$9.7
									$8.1					$8.2
		44%						45%								49%				50%
												47%					47%
		26%						28%
																	26%				25%				25%
										27%
		30%						27%
																	27%				26%				25%
										26%
		1Q 18						2Q 18				3Q 18	4Q 18				1Q 19	2Q 19
							GM						Chrysler							Growth

Note: See page 23 for definition

Consumer Assets

(End of period, $ billions)

$77.9	$79.2		$78.6	$78.9	$79.8	$81.2
														$8.3		$8.4
		$8.5		$8.6			$8.6		$8.4
				$70.5				$70.5				$71.5		$72.7
		$69.3			$70.0
		1Q 18		2Q 18	3Q 18		4Q 18				1Q 19		2Q 19
						Retail						Lease

Origination Mix

(% of $ originations)

	50%		51%			53%			52%			56%		54%
	11%		13%			12%			10%
								10%		11%
	39%
		36%			35%			38%			34%		35%
																											12%
		11%				11%					11%					10%					11%
	1Q 18		2Q 18			3Q 18			4Q 18			1Q 19		2Q 19
			New Retail			Lease			Used			Nonprime % of Total Retail

Note: See page 23 for definition

Commercial Assets

(Average balance, $ billions)
$35.5	$35.5		$34.5	$36.6	$35.6		$34.8
									$5.8
		$6.1			$6.2					$5.6
					$6.1				$5.7
									$30.8		$30.0
		$29.4			$29.3		$28.4				$29.0
		1Q 18			2Q 18	3Q 18		4Q 18		1Q 19	2Q 19
					Dealer Floorplan				Other Dealer Loans

Note: Held-for-investment ("HFI") asset balances reflect the average daily balance for the quarter.

2Q 2019 Preliminary Results	12

Insurance

• Pre-taxincome breakeven for 2Q 19, down $11 million YoY and down $145 million QoQ
• Core pre-tax loss(1) of $4 million, down $7 million YoY and down $84 million QoQ
• • Earned premiums up YoY driven by vehicle inventory insurance portfolio growth and rate increases
  • Loss expense up QoQ driven by seasonally higher weather losses (hail and tornado storms)

				Increase/(Decrease) vs.
Key Financials ($ millions)		2Q 19			1Q 19			2Q 18
Premiums, service revenue earned and other	$	263		$	(2)		$	22
Losses and loss adjustment expenses		127			68			26
Acquisition and underwriting expenses(2)		174			6			7
Total underwriting (loss) / income		(38)			(76)			(11)
Investment income and other (adjusted) (1)		34			(8)			4
Core pre-tax (loss) / income(1)	$	(4)		$	(84)		$	(7)
Change in fair value of equity securities (1)		4			(61)			(4)
Pre-tax income	$	-		$	(145)		$	(11)
Total assets (EOP)	$	8,241		$	62		$	607

• • YoY increase driven by lower than average weather losses in PY and portfolio growth
• Written premiums of $314 million, up $36 million YoY
• • Continued momentum from the Growth channel
  • Highest 2Q written premiums for Ally in 10 years

Key Statistics - Insurance Ratios	2Q 19		1Q 19		2Q 18
Loss ratio	48.5%	22.2%	41.9%
Underwriting expense ratio	65.9%		63.5%		69.4%
Combined ratio	114.4%	85.7%	111.2%

1. Represents a non-GAAP financial measure. Excludes equity fair value adjustments related to 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 29 for details.
2. Noninterest expense includes corporate allocations of $13 million in 2Q 2019, $13 million in 1Q 2019, and $12 million in 2Q 2018

Insurance Losses

($ millions)										$127
				$101
										$25
						$77
			$63		$19
$54						$54	$59		$69
				$24
			$51
	$19		$22			$21		$20		$23
		$12
	$6							$4		$6
							$32
	$28		$29		$31			$30		$30		$33

Insurance Written Premiums	$323			$314
($ millions)	$265 $275	$298	$305
$272	$278
$240 $220

4Q 17

1Q 18

2Q 18

3Q 18

4Q 18

1Q 19

2Q 19

1Q 17

2Q 17

3Q 17

4Q 17

1Q 18

2Q 18

3Q 18

4Q 18

1Q 19

2Q 19

VSC Losses

Weather Losses

(3)

Other Losses

(3) 2Q 2017 - 2Q 2019 Weather Losses net of reinsurance coverage. Note: See page 23 for definition	13
2Q 2019 Preliminary Results

Corporate Finance

• Pre-taxincome of $46 million
• Core pre-tax income(1) of $48 million, up $39 million QoQ and down $10 million YoY
• • Net financing revenue up driven by strong loan growth
  • Provision expense down QoQ driven by higher reserves related to specific exposures in the PQ
• Held-for-investmentportfolio of $4.8 billion as of 2Q 19, up 15% YoY
• • Highly diversified portfolio with continued expansion into new verticals, led by experienced cycle-tested teams

Corporate Finance Outstandings Loan Portfolio by Industry - 6/30/2019

		Paper Printing &
	Other	Publishing	Food And Beverages
Chemicals & Metals	5%	2%
4%
4%
Wholesale
5%
Construction			Health Services
1%
		Services	26%
Other Manufactured

Prod.
4%	Manufacturing
Machinery. Equip.
Elect.	Other
7%
Auto & Transportation
14%	Other Services
	28%

				Increase/(Decrease) vs.
Key Financials ($ millions)		2Q 19			1Q 19			2Q 18
Net financing revenue	$	61	$	7		$	4
Total other revenue (adjusted) (1)		12			5			(2)
Total net revenue (adjusted) (1)		73			12			2
Provision for loan losses		3			(20)			9
Noninterest expense(2)		22			(7)			3
Core pre-tax income (1)	$	48	$	39		$	(10)
Change in fair value of equity securities (1)		(2)			(6)			(2)
Pre-tax income	$	46	$	33		$	(12)
Total assets (EOP)	$	4,980	$	(26)		$	522

1. Represents a non-GAAP financial measure. Excludes equity fair value adjustments related to 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 29 for details.
2. Noninterest expense includes corporate allocations of $7 million in 2Q 2019, $8 million in 1Q 2019, and $6 million in 2Q 2018.

Corporate Finance Held-for-investment Loans and Unfunded Commitments

(end of period balances, $ billions)

											$2.1
							$2.1						$2.2
	$2.1			$1.7
											$5.0			$4.8
				$4.4			$4.6
	$4.2
	2Q 18		3Q 18	4Q 18				1Q 19	2Q 19
			Held-for-investment loans				Unfunded Commitments

2Q 2019 Preliminary Results	14

Mortgage Finance

• Pre-taxincome of $14 million
• • Net financing revenue up YoY driven by asset balance growth from bulk purchase activity
  • • Held-for-investmentportfolio at $16.5 billion, up 24% YoY
    • QoQ decline driven by faster prepayments and higher premium amortization
  • Provision expense down QoQ driven primarily by strong credit performance
• Direct-to-consumeroriginations of $0.6 billion - highest quarter since product launch in 2016
• • 52% of originations in 2Q were Ally Bank retail deposit customers
• Better.com implementation progressing well
• • Pilot program launched in early July 2019 in Texas
  • Expect broader market integration by year-end

				Increase/(Decrease) vs.
Key Financials ($ millions)		2Q 19			1Q 19			2Q 18
Net financing revenue	$	46	$	(4)		$	2
Total other revenue		4			2			2
Total net revenue	$	50	$	(2)		$	4
Provision for loan losses		-			(2)			-
Noninterest expense(1)		36			(1)			4
Pre-tax income	$	14	$	1		$	-
Total assets (EOP)	$	16,584	$	283		$	3,199

Mortgage Finance HFI Portfolio		2Q 19			1Q 19			2Q 18
Net Carry Value ($ billions)	$	16.5	$	16.2	$	13.3
Wtd. Avg. LTV/CLTV (2)		60.6%			60.7%			60.2%
Refreshed FICO		774			772			772

1. Noninterest expense includes corporate allocations of $19 million in 2Q 2019, $20 million in 1Q 2019, and $16 million in 2Q 2018.
2. 1st lien only. Updated home values derived using a combination of appraisals, Broker price opinion (BPOs), Automated Valuation Models (AVMs) and Metropolitan Statistical Area (MSA) level house price indices.

Mortgage Finance Held-for-Investment Assets ($ billions)

		Bulk Purchase Activity
$0.9	$1.7	$0.6	$1.2	$0.7

$13.3 $14.8 $15.2 $16.2 $16.5

2Q 18	3Q 18	4Q 18	1Q 19	2Q 19

2Q 2019 Preliminary Results	15

Conclusion

Consistent Execution Along Our Strategic Path

Dominant Franchises

Leading	Leading
Auto Finance
Digital
Insurance
Bank
Partner

Relentless	'Do It Right'
Customer	Culture &
Focus	Values

Core Competencies

• Ongoing optimization of auto & insurance
• Sustained deposit growth & customer acquisition
• Scale in expanded digital product offerings
• Efficient capital management & disciplined risk management
• Ongoing execution along earnings growth path
• Culture of relentless focus on customers, communities, associates and shareholders

Focused on Driving Long-term Shareholder Value

2Q 2019 Preliminary Results	16

Supplemental

Supplemental

Results by Segment

Pre-Tax Income												Increase/(Decrease) vs.
($ millions)		2Q 19				1Q 19			2Q 18				1Q 19			2Q 18
Automotive Finance	$	459	$	329	$	382		$	130	$	77
Insurance		-				145			11				(145)			(11)
Dealer Financial Services	$	459		$	474		$	393			$	(15)		$	66
Corporate Finance		46				13			58				33			(12)
Mortgage Finance		14				13			14				1			-
Corporate and Other		(25)				(14)			(4)				(11)			(21)
Pre-tax income from continuing operations	$	494	$	486	$	461		$	8	$	33
Core OID (1)			7				7			21				0			(14)
Change in fair value of equity securities (2)			(2)				(70)			(8)				67			6
Core pre-tax income (3)	$	499	$	423	$	474		$	76	$	25

1. Core OID for all periods shown is applied to the pre-tax income of the Corporate and Other segment.
2. Change in fair value of equity securities impacts the Insurance and Corporate Finance segments. Reflects equity fair value adjustments related to 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 29 for details.
3. Core pre-tax income is a non-GAAP financial measure that adjusts pre-tax income from continuing operations for Core OID and equity fair value adjustments related to ASU 2016-01. Management believes core pre-tax income can help the reader better understand the operating performance of the core businesses and their ability to generate earnings. See pages 23 and 29 for calculation methodology and details.

2Q 2019 Preliminary Results	18

Supplemental

Funding and Liquidity

• Ally Bank funded assets at 91% up 5 pts YoY
• Deposits at 72% of total funding (excluding Core OID balance)(a) up 8 pts YoY
• Wholesale funding in 2Q:
• • $0.76 billion of new retail secured funding
  • $0.75 billion of new 5-year unsecured bonds
• Total liquidity levels at $26.3 billion as of 6/30/19

Growth in Bank Funded Assets

($ billions)

		$164.3	$171.3	$180.4
$156.3	$157.9

											86%	91%
						73%				77%
		68%

2Q 15		2Q 16	2Q 17		2Q 18	2Q 19
		Ally Bank Assets			Non-Bank Assets

Unsecured Long-Term Debt Maturities(1)

Funding Mix

		Principal Amount
Maturity Date	Coupon	Outstanding(2)
		($ billions)
11/18/2019	3.75	$0.80
3/15/2020	8.00	$0.97
3/30/2020	4.13	$0.75
9/15/2020	7.50	$0.46
2021+(3)	5.86	$7.14

1. Excludes retail notes, demand notes and trust preferred securities.
2. Reflects notional value of outstanding bond. Excludes total GAAP OID and capitalized transaction costs.
3. Weighted average coupon based on notional value and corresponding coupon for all unsecured bonds as of January 1st of the respective year. Does not reflect weighted average interest expense for the respective year. 2021+ excludes ~$2.7 billion Trust Preferred securities (excluding OID/issuance costs).

2Q 2019 Preliminary Results

	52%		59%		64%						Deposits
					72%				FHLB /
											Other
	8%
			11%								Secured Debt
	24%			14%
		17%
				13%
				12%
	16%						7%
		13%
			10%		8%				Unsecured Debt
	2Q 16		2Q 17		2Q 18		2Q 19				(ex. Core OID)

Note: excludes Core OID balance. See page 30 for details.

Note: Total Liquidity includes cash & cash equivalents, highly liquid securities and current committed unused capacity. See page 18 of the Financial Supplement for more details.

(a) Excludes Core OID balance. See page 30 for details.

19

Supplemental

Corporate and Other

• Corporate and Other includes the impact of centralized asset and liability management, corporate overhead allocation activities, the legacy mortgage portfolio and Ally Invest activity
• Pre-taxloss of $25 million, down $21 million YoY and down $11 million QoQ
• • Net financing revenue down primarily driven by higher deposit funding costs
  • Other revenue up QoQ and YoY primarily driven by investment gains
• Total assets up $4.7 billion YoY

				Increase/(Decrease) vs.
Key Financials ($ millions)		2Q 19			1Q 19			2Q 18
Net financing revenue	$	13	$	(23)	$	(42)
Total other revenue		34			9			15
Total net revenue	$	47	$	(14)		$	(27)
Provision for loan losses		(6)			(1)			-
Noninterest expense		78			(2)			(6)
Pre-tax (loss) / income	$	(25)	$	(11)	$	(21)
Core OID (1)		7			0			(14)
Core pre-tax (loss) / income (2)	$	(18)	$	(11)	$	(35)
Cash & securities	$	29,733	$	770	$	5,083
Held-for-investment loans, net(3)		1,578			(17)			(247)
Other		4,377			93			(101)
Total assets	$	35,688	$	846	$	4,735

1. Represents a non-GAAP financial measure. See page 30 for details.
2. Represents a non-GAAP financial measure. See page 29 for calculation methodology and details.
3. Primarily HFI legacy mortgage portfolio.

• Higher investment securities balance partially offset by legacy mortgage portfolio run-off

Ally Invest Details (brokerage)		2Q 19			1Q 19			2Q 18
Net Funded Accounts (thousands)		336.6			320.2			270.7
Average Customer Trades Per Day (thousands)		18.3			19.5			18.0
Total Customer Cash Balances ($ millions)	$	1,229	$	1,209	$	1,166
Total Net Customer Assets ($ millions)	$	7,149	$	6,796	$	5,990

2Q 2019 Preliminary Results	20

Supplemental

Interest Rate Sensitivity

Net Financing Revenue Impacts (1): Baseline vs. Forward Curve
		2Q 19				1Q 19
($ millions)		Gradual (2)		Instantaneous			Gradual (2)		Instantaneous
-100 bp	$	(60)	$	(147)	$	5	$	(10)
+100 bp	$	43	$	28	$	3	$	(23)
Stable rate environment		n/m	$	(60)			n/m	$	(0)

1. Net financing revenue impacts reflect a rolling 12-month view. See page 23 for additional details.
2. Gradual changes in interest rates are recognized over 12 months.

2Q 2019 Preliminary Results	21

Supplemental

Deferred Tax Asset

Deferred Tax Asset					2Q 19(1)						1Q 19(1)
($ millions)	Gross DTA/(DTL)			Valuation		Net DTA/(DTL)		Net DTA/(DTL)
	Balance			Allowance			Balance			Balance
Net Operating Loss (Federal)	$	8	$	-	$	8	$	8
Tax Credit Carryforwards		1,471			(757)			714			662
State/Local Tax Carryforwards		143			(95)			48			60
Other Deferred Tax Liabilities, net (2)		(622)			-			(622)			(613)
Net Deferred Tax Assets	$	1,000	$	(852)	$	148	$	117

1. GAAP does not prescribe a method for calculating individual elements of deferred taxes for interim periods; therefore, these balances are estimates.
2. Primarily book / tax timing differences.

Deferred Tax Asset Utilization

2Q Effective Tax Rate Details

2Q 19

($ millions)

Adjusted Effective Tax Rate

22.5%

Discrete Tax Item ($201 million)

-40.7%

GAAP Effective Tax Rate

-18.2%

$447

$420

Note: Significant discrete tax items do not relate to the operating

performance of the core businesses. 2Q 19 effective tax rate was

$300

impacted primarily due to a release of valuation allowance on foreign

tax credit carryforwards during the second quarter of 2019. Ally's

$251

$221

effective tax rate was -18.2% for 2Q 19; excluding the discrete tax

benefit of $201 million (0.50 EPS impact), the adjusted effective tax

$143

$117

$148

rate would be 22.5%, which represents a non-GAAP financial measure.

$56

$84

2Q 18

3Q 18

4Q 18

1Q 19

2Q 19

Net GAAP DTA Balance

Disallowed DTA

Note: reflects Basel III fully phased-in disallowed DTA. See page 28 for more details.

2Q 2019 Preliminary Results	22

Supplemental

Notes on Non-GAAP and Other Financial Measures

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, Adjusted Other Revenue, Core original issue discount (Core OID) amortization expense and Core outstanding original issue discount balance (Core OID balance), Net Financing Revenue, excluding Core OID 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.

1. Accelerated issuance expense (Accelerated OID) is the recognition of issuance expenses related to calls of redeemable debt.
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. Core net income attributable to common shareholders adjusts GAAP net income attributable to common shareholders for discontinued operations net of tax, tax-effected Core OID expense, tax-effected repositioning items primarily related to the extinguishment of high-cost legacy debt and strategic activities, certain discrete tax items and preferred stock capital actions and tax-effected changes in equity investments measured at fair value. See page 24 for calculation methodology and details.
3. Core original issue discount (Core OID) amortization expense is a non-GAAP financial measure for OID, primarily related to bond exchange OID which excludes international operations and future issuances. See page 30 for calculation methodology and details.
4. Core outstanding original issue discount balance (Core OID balance) is a non-GAAP financial measure for outstanding OID, primarily related to bond exchange OID which excludes international operations and future issuances. See page 30 for calculation methodology and details.
5. Core pre-taxincome is a non-GAAP financial measure that adjusts pre-tax income from continuing operations by excluding (1) Core OID and (2) repositioning items primarily related to the extinguishment of high-cost legacy debt and strategic activities and (3) equity fair value adjustments related to 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. Management believes core pre-tax income can help the reader better understand the operating performance of the core businesses and their ability to generate earnings. See page 29 for calculation methodology and details.
6. Interest rate risk modeling - We prepare our forward-looking baseline forecasts of net financing revenue taking into consideration anticipated future business growth, asset/liability positioning, and interest rates based on the implied forward curve. The analysis is highly dependent upon a variety of assumptions including the repricing characteristics of retail deposits with both contractual and non-contractual maturities. Based on current market conditions, actual beta on our total retail deposits portfolio has been approximately 48% since the third quarter of 2015. We continually monitor industry and competitive repricing activity along with other market factors when contemplating deposit pricing actions. Please see the 10-Q for more details.
7. Net charge-offratios are calculated as annualized net charge-offs divided by average outstanding finance receivables and loans excluding loans measured at fair value and loans held-for-sale.
8. Tangible Common Equity is a non-GAAP financial measure that is defined as common stockholders' equity less goodwill and identifiable intangible assets, net of deferred tax liabilities. Ally considers various measures when evaluating capital adequacy, including tangible common equity. Ally believes that tangible common equity is important because we believe readers may assess our capital adequacy using this measure. Additionally, presentation of this measure allows readers to compare certain aspects of our capital adequacy on the same basis to other companies in the industry. For purposes of calculating Core return on tangible common equity (Core ROTCE), tangible common equity is further adjusted for Core OID balance and net deferred tax asset. See page 25 for more details.
9. U.S. consumer auto originations
10. • New Retail - standard and subvented rate new vehicle loans
    • Lease - new vehicle lease originations
    • Used - used vehicle loans
    • Growth - total originations from non-GM/Chrysler dealers and direct-to-consumer loans
    • Nonprime - originations with a FICO® Score of less than 620
11. Customer retention rate is the annualized 3-month rolling average of 1 minus the monthly attrition rate.

11) Growth channel for Insurance includes all non-GMvolume.		23
2Q 2019 Preliminary Results

Supplemental

GAAP to Core Results - Adjusted Earnings per Share

Adjusted Earnings per Share ("Adjusted EPS")																		QUARTERLY TREND
			2Q 19			1Q 19			4Q 18			3Q 18			2Q 18			1Q 18			4Q 17			3Q 17			2Q 17			1Q 17			4Q 16			3Q 16			2Q 16
Numerator($ millions)
GAAP net income attributable to common shareholders		$	582	$	374	$	290	$	374	$	349	$	250	$	181	$	282	$	252	$	214	$	248	$	209	$	345
Discontinued operations, net of tax			2			1			(1)			-			(1)			2			(2)			(2)			2			(1)			(2)			52			(3)
Core OID			7			7			23			22			21			20			19			18			17			16			15			15			14
Repositioning items			-			-			-			-			-			-			-			-			-			-			-			-			4
Change in the fair value of equity securities			(2)			(70)			95			(6)			(8)			40			-			-			-			-			-			-			-
Tax on Core OID, repositioning items, & change in the fair value of equity securities			(1)			13			(25)			(3)			(3)			(13)			(7)			(6)			(6)			(6)			(5)			(5)			(6)
(tax rate 21% starting 1Q18, 35% starting 1Q16; 34% prior)
Significant discrete tax items			(201)			-			-			-			-			-			119			-			-			-			-			-			(91)
Series A actions			-			-			-			-			-			-			-			-			-			-			-			-			1
Core net income attributable to common shareholders	[a]	$	387	$	325	$	382	$	386	$	358	$	300	$	310	$	292	$	265	$	224	$	256	$	271	$	263
Denominator
Weighted-average common shares outstanding - (Diluted, thousands)	[b]		399,916			405,959			414,750			424,784			432,554			438,931			444,985			451,078			458,819			466,829			474,505			483,575			486,074
Metric
GAAP EPS		$	1.46	$	0.92	$	0.70	$	0.88	$	0.81	$	0.57	$	0.41	$	0.63	$	0.55	$	0.46	$	0.52	$	0.43	$	0.71
Discontinued operations, net of tax			0.01			0.00			(0.00)			-			(0.00)			0.00			(0.00)			(0.00)			0.00			(0.00)			(0.00)			0.11			(0.01)
Core OID			0.02			0.02			0.06			0.05			0.05			0.05			0.04			0.04			0.04			0.04			0.03			0.03			0.03
Repositioning items			-			-			-			-			-			-			-			-			-			-			-			-			0.01
Change in the fair value of equity securities			(0.01)			(0.17)			0.23			(0.01)			(0.02)			0.09			-			-			-			-			-			-			-
Tax on Core OID, repositioning items, & change in the fair value of equity securities			(0.00)			0.03			(0.06)			(0.01)			(0.01)			(0.03)			(0.01)			(0.01)			(0.01)			(0.01)			(0.01)			(0.01)			(0.01)
(tax rate 21% starting 1Q18, 35% starting 1Q16; 34% prior)
Significant discrete tax items			(0.50)			-			-			-			-			-			0.27			-			-			-			-			-			(0.19)
Series A actions per share			-			-			-			-			-			-			-			-			-			-			-			-			0.00
Adjusted EPS	[a] / [b]	$	0.97	$	0.80	$	0.92	$	0.91	$	0.83	$	0.68	$	0.70	$	0.65	$	0.58	$	0.48	$	0.54	$	0.56	$	0.54

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. In the numerator of Adjusted EPS, GAAP net income attributable to common shareholders is adjusted for the following items: (1) excludes discontinued operations, net of tax, as Ally is primarily a domestic company and sales of international businesses and other discontinued operations in the past have significantly impacted GAAP EPS, (2) adds back the tax-effectednon-cash Core OID, (3) adds back tax-effected repositioning items primarily related to the extinguishment of high-cost legacy debt and strategic activities, (4) excludes equity fair value adjustments (net of tax) related to 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, (5) excludes certain discrete tax items that do not relate to the operating performance of the core businesses, and (6) adjusts for preferred stock capital actions (e.g., Series A and Series G) that have been taken by the company to normalize its capital structure.

2Q 2019 Preliminary Results	24

Supplemental

GAAP to Core Results - Adjusted TBVPS

Adjusted Tangible Book Value per Share ("Adjusted TBVPS")													QUARTERLY TREND
			2Q 19		1Q 19		4Q 18		3Q 18		2Q 18		1Q 18		4Q 17		3Q 17		2Q 17		1Q 17		4Q 16		3Q 16		2Q 16
Numerator ($ billions)
GAAP common shareholder's equity		$	14.3	$	13.7	$	13.3	$	13.1	$	13.1	$	13.1	$	13.5	$	13.6	$	13.5	$	13.4	$	13.3	$	13.6	$	13.6
Goodwill and identifiable intangibles, net of DTLs			(0.3)		(0.3)		(0.3)		(0.3)		(0.3)		(0.3)		(0.3)		(0.3)		(0.3)		(0.3)		(0.3)		(0.3)		(0.3)
Tangible common equity			14.0		13.4		13.0		12.8		12.8		12.8		13.2		13.3		13.2		13.1		13.0		13.3		13.3
Tax-effected Core OID balance
(21% tax rate starting 4Q17, 35% starting 1Q16; 34% prior)			(0.9)		(0.9)		(0.9)		(0.9)		(0.9)		(0.9)		(0.9)		(0.8)		(0.8)		(0.8)		(0.8)		(0.8)		(0.8)
Adjusted tangible book value	[a]	$	13.2	$	12.6	$	12.1	$	11.9	$	12.0	$	11.9	$	12.3	$	12.5	$	12.4	$	12.3	$	12.2	$	12.5	$	12.5
Denominator
Issued shares outstanding (period-end,thousands)	[b]		392,775		399,761		404,900		416,591		425,752		432,691		437,054		443,796		452,292		462,193		467,000		475,470		483,753
Metric
GAAP shareholder's equity per share		$	36.4	$	34.3	$	32.8	$	31.4	$	30.9	$	30.2	$	30.9	$	30.6	$	29.8	$	28.9	$	28.5	$	28.7	$	28.1
Preferred equity per share			-		-		-		-		-		-		-		-		-		-		-		-		-
GAAP common shareholder's equity per share		$	36.4	$	34.3	$	32.8	$	31.4	$	30.9	$	30.2	$	30.9	$	30.6	$	29.8	$	28.9	$	28.5	$	28.7	$	28.1
Goodwill and identifiable intangibles, net of DTLs per share			(0.7)		(0.7)		(0.7)		(0.7)		(0.7)		(0.7)		(0.7)		(0.6)		(0.6)		(0.6)		(0.6)		(0.6)		(0.6)
Tangible common equity per share			35.7		33.6		32.1		30.7		30.2		29.6		30.2		29.9		29.2		28.3		27.9		28.0		27.6
Tax-effected Core OID balance
(21% tax rate starting 4Q17, 35% starting 1Q16; 34% prior) per share			(2.2)		(2.1)		(2.1)		(2.1)		(2.1)		(2.1)		(2.1)		(1.8)		(1.7)		(1.7)		(1.7)		(1.7)		(1.7)
Adjusted tangible book value per share	[a] / [b]	$	33.6	$	31.4	$	29.9	$	28.6	$	28.1	$	27.4	$	28.1	$	28.2	$	27.4	$	26.6	$	26.2	$	26.3	$	25.9

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 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. Adjusted TBVPS generally adjusts common equity for: (1) goodwill and identifiable intangibles, net of DTLs, and (2) tax-effected Core OID balance to reduce tangible common equity in the event the corresponding discounted bonds are redeemed/tendered. Note: In December 2017, tax-effected Core OID balance was adjusted from a statutory U.S. Federal tax rate of 35% to 21% ("rate") as a result of changes to U.S. tax law. The adjustment conservatively increased the tax-effected Core OID balance and consequently reduced Adjusted TBVPS as any acceleration of the non-cash charge in future periods would flow through the financial statements at a 21% rate versus a previously modeled 35% rate.

2Q 2019 Preliminary Results	25

Supplemental

GAAP to Core Results - Core ROTCE

Core Return on Tangible Common Equity ("Core ROTCE")						QUARTERLY TREND
			2Q 19			1Q 19			4Q 18			3Q 18			2Q 18
Numerator($ millions)
GAAP net income attributable to common shareholders		$	582	$	374	$	290	$	374	$	349
Discontinued operations, net of tax			2			1			(1)			-			(1)
Core OID			7			7			23			22			21
Change in the fair value of equity securities			(2)			(70)			95			(6)			(8)
Tax on Core OID & change in the fair value of equity securities
(tax rate 21% starting in 1Q18)			(1)			13			(25)			(3)			(3)
Significant discrete tax items & other			(201)			-			-			-			-
Core net income attributable to common shareholders	[a]	$	387	$	325	$	382	$	386	$	358
Denominator(2-period average, $ billions)
GAAP shareholder's equity		$	14.0	$	13.5	$	13.2	$	13.1	$	13.1
Goodwill & identifiable intangibles, net of deferred tax liabilities ("DTLs")			(0.3)			(0.3)			(0.3)			(0.3)			(0.3)
Tangible common equity		$	13.7	$	13.2	$	12.9	$	12.8	$	12.8
Core OID balance			(1.1)			(1.1)			(1.1)			(1.1)			(1.1)
Net deferred tax asset ("DTA")			(0.1)			(0.2)			(0.4)			(0.4)			(0.5)
Normalized common equity	[b]	$	12.5	$	11.9	$	11.4	$	11.2	$	11.2
Core Return on Tangible Common Equity	[a] / [b]		12.4%			10.9%			13.4%			13.7%			12.8%

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 net DTA. Ally's Core net income attributable to common shareholders for purposes of calculating Core ROTCE is based on the actual effective tax rate for the period adjusted for any discrete tax items including tax reserve releases, which aligns with the methodology used in calculating adjusted earnings per share.

1. In the numerator of Core ROTCE, GAAP net income attributable to common shareholders is adjusted for discontinued operations net of tax, tax-effected Core OID, fair value adjustments (net of tax) related to 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, and certain discrete tax items.
2. In the denominator, GAAP shareholder's equity is adjusted for preferred equity and goodwill and identifiable intangibles net of DTL, Core OID balance, and net DTA.

2Q 2019 Preliminary Results	26

Supplemental

GAAP to Core Results - Adjusted Efficiency Ratio

Adjusted Efficiency Ratio						QUARTERLY TREND
			2Q 19			1Q 19			4Q 18			3Q 18			2Q 18
Numerator($ millions)
GAAP noninterest expense		$	881	$	830	$	804	$	807	$	839
Rep and warrant expense			(0)			-			1			(0)			2
Insurance expense			(301)			(227)			(215)			(241)			(268)
Adjusted noninterest expense for the efficiency ratio	[a]	$	580	$	603	$	590	$	566	$	573
Denominator($ millions)
Total net revenue		$	1,552	$	1,598	$	1,438	$	1,505	$	1,458
Core OID			7			7			23			22			21
Insurance revenue			(301)			(372)			(202)			(296)			(279)
Adjusted net revenue for the efficiency ratio	[b]	$	1,258	$	1,233	$	1,259	$	1,231	$	1,200
Adjusted Efficiency Ratio	[a] / [b]		46.1%			48.9%			46.9%			46.0%			47.7%

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. In the numerator of Adjusted efficiency ratio, total noninterest expense is adjusted for Insurance segment expense and Rep and warrant expense. In the denominator, total net revenue is adjusted for Insurance segment revenue and Core OID. See page 13 for the combined ratio for the Insurance segment which management uses as a primary measure of underwriting profitability for the Insurance segment.

2Q 2019 Preliminary Results	27

Supplemental

Notes on Non-GAAP and Other Financial Measures

Regulatory Capital - Basel III transition to fully phased-in ($ billions)		2Q 19		1Q 19		4Q 18		3Q 18		2Q 18
Numerator
Common equity tier 1 capital	$	13.9	$	13.6	$	13.4	$	13.4	$	13.3
Denominator
Risk-weighted assets (transition)	$	145.8	$	145.9	$	146.6	$	142.2	$	141.6
DTAs arising from temporary differences that could not be realized through NOL,
net of VA and net of DTLs phased-in during transition		0.2		0.1		0.2		0.3		0.3
Risk-weighted assets (fully phased-in)	$	146.0	$	146.0	$	146.8	$	142.5	$	141.9
Metric
Common equity tier 1 (transition)		9.5%		9.3%		9.1%		9.4%		9.4%
Common equity tier 1 (fully phased-in)		9.5%		9.3%		9.1%		9.4%		9.3%

Common Equity Tier 1 ("CET1") capital fully phased-in: Under the Basel III regulatory framework as adopted in the United States, banking organizations like the company are required to comply with a minimum ratio of common equity tier 1 capital to risk-weighted assets (CET1 Capital Ratio). Common equity tier 1 capital generally consists of common stock (plus any related surplus and net of any treasury stock), retained earnings, accumulated other comprehensive income, and minority interests in the common equity of consolidated subsidiaries, subject to specified conditions and adjustments. The obligation to comply with the minimum CET1 Capital Ratio is subject to ongoing transition periods and other provisions under Basel III. Management believes that both the transitional CET1 Capital Ratio and the fully phased-in CET1 Capital Ratio are helpful

to readers in evaluating the company's capital utilization and adequacy in absolute terms and relative to its peers. The fully phased-in CET1 Capital Ratio is a non-GAAP

financial measure that is reconciled to the transitional CET1 Capital Ratio above.

2Q 2019 Preliminary Results	28

Supplemental

Notes on Non-GAAP and Other Financial Measures

($ millions)					2Q 19										1Q 19										2Q 18
						Core OID &		Change in the									Core OID &		Change in the									Core OID &		Change in the
							fair value of										fair value of										fair value of
			GAAP		Repositioning			Non-GAAP(1)			GAAP		Repositioning			Non-GAAP(1)			GAAP		Repositioning			Non-GAAP(1)
						Items			equity									Items			equity									Items			equity
								securities											securities											securities
Consolidated Ally
Net financing revenue	$	1,157	$	7	$	-			1,164	$	1,132	$	7	$	-	$	1,139	$	1,094	$	21	$	-	$	1,115
Total other revenue		395			-			(2)			393			466			-			(70)			396			364			-			(8)			356
Provision for loan losses		177			-			-			177			282			-			-			282			158			-			-			158
Noninterest expense			881			-			-			881			830			-			-			830			839			-			-			839
Pre-tax income from continuing operations	$	494	$	7	$	(2)	$	499	$	486	$	7	$	(70)	$	423	$	461	$	21	$	(8)	$	474
Corporate / Other
Net financing revenue	$	13	$	7	$	-	$	20	$	36	$	7	$	-	$	43	$	55	$	21	$	-	$	76
Total other revenue		34			-			-			34			25			-			-			25			19			-			-			19
Provision for loan losses		(6)			-			-			(6)			(5)			-			-			(5)			(6)			-			-			(6)
Noninterest expense			78			-			-			78			80			-			-			80			84			-			-			84
Pre-tax (loss) income from continuing operations	$	(25)	$	7	$	-	$	(18)	$	(14)	$	7	$	-	$	(7)	$	(4)	$	21	$	-	$	17
Insurance
Premiums, service revenue earned and other	$	263	$	-	$	-	$	263	$	265	$	-	$	-	$	265	$	241	$	-	$	-	$	241
Losses and loss adjustment expenses		127			-			-			127			59			-			-			59			101			-			-			101
Acquisition and underwriting expenses		174			-			-			174			168			-			-			168			167			-			-			167
Investment income and other			38			-			(4)			34			107			-			(65)			42			38			-			(8)			30
Pre-tax income from continuing operations	$	-	$	-	$	(4)	$	(4)	$	145	$	-	$	(65)	$	80	$	11	$	-	$	(8)	$	3
Corporate Finance
Net financing revenue	$	61	$	-	$	-	$	61	$	54	$	-	$	-	$	54	$	57	$	-	$	-	$	57
Total other revenue		10			-			2			12			11			-			(4)			7			14			-			(0)			14
Provision for loan losses		3			-			-			3			23			-			-			23			(6)			-			-			(6)
Noninterest expense			22			-			-			22			29			-			-			29			19			-			-			19
Pre-tax income from continuing operations	$	46	$	-	$	2	$	48	$	13	$	-	$	(4)	$	9	$	58	$	-	$	(0)	$	58

(1) Non-GAAP line items walk to Core pre-tax income, a non-GAAP financial measure that adjusts pre-tax income. See page 23 for definitions.

2Q 2019 Preliminary Results	29

Supplemental

Notes on Non-GAAP and Other Financial Measures

Net Financing Revenue (ex. Core OID)																																	QUARTERLY TREND
($ millions)			2Q 19				1Q 19			4Q 18					3Q 18			2Q 18			1Q 18			4Q 17			3Q 17				2Q 17				1Q 17				4Q 16			3Q 16			2Q 16
GAAP Net Financing Revenue		$	1,157			$	1,132			$	1,140			$	1,107	$	1,094	$	1,049	$	1,094	$	1,081	$	1,067			$		979			$		976		$	996			$	984
Core OID			7				7				23						22				21					20				19			18					17						16					15				15					14
Net Financing Revenue (ex. Core OID)	[a]	$	1,164			$	1,139			$	1,163			$	1,129	$	1,115	$	1,069	$	1,113	$	1,099	$	1,084			$		995			$		991		$	1,011			$	998
Adjusted Other Revenue																																	QUARTERLY TREND
($ millions)			2Q 19				1Q 19			4Q 18					3Q 18			2Q 18			1Q 18			4Q 17			3Q 17				2Q 17				1Q 17				4Q 16			3Q 16			2Q 16
GAAP Other Revenue		$	395			$	466			$	298			$	398	$		364	$		354	$	379	$	381	$	388			$		396			$		392		$	388			$	374
Accelerated OID & repositioning items			-				-				-							-				-					-				-				-					-						-					-				-					-
Change in the fair value of equity securities			(2)				(70)			95						(6)				(8)				40				-				-						-						-					-				-					-
Adjusted Other Revenue	[b]	$	393			$	396			$	393			$	392	$		356	$		394	$	379	$	381	$	388			$		396			$		392		$	388			$	374
Adjusted Total Net Revenue
($ millions)
Adjusted Total Net Revenue	[a]+[b]	$	1,557			$	1,535			$	1,556			$	1,521	$	1,471	$	1,463	$	1,492	$	1,480	$	1,472			$ 1,391			$ 1,383		$	1,399			$	1,372
Original issue discount amortization expense																																				QUARTERLY TREND
($ millions)							2Q 19				1Q 19					4Q 18			3Q 18			2Q 18			1Q 18		4Q 17		3Q 17			2Q 17				1Q 17			4Q 16			3Q 16				2Q 16
Core original issue discount (Core OID) amortization expense (1)			$		7			$		7			$			23	$			22	$	21		$	20	$		19	$		18	$	17	$	16		$	15	$	15			$	14
Other OID								3					3							2					4			4				4				5				5			5				5				6			6					4
GAAP original issue discount amortization expense					$		10			$		10			$			26	$			25	$	25		$	24	$		24	$		23	$	22	$	21		$	21	$	21			$	18
Outstanding original issue discount balance																																				QUARTERLY TREND
($ millions)							2Q 19				1Q 19					4Q 18			3Q 18			2Q 18			1Q 18		4Q 17		3Q 17			2Q 17				1Q 17			4Q 16			3Q 16				2Q 16
Core outstanding original issue discount balance (Core OID balance)	$	(1,078)			$	(1,085)			$	(1,092)	$	(1,115)	$	(1,137)	$	(1,158)	$	(1,178)	$	(1,197)	$	(1,215)	$	(1,232)	$	(1,249)	$	(1,264)		$	(1,279)
Other outstanding OID balance								(44)					(39)							(43)			(46)			(49)			(53)				(57)				(62)			(67)				(72)			(77)			(83)				(88)
GAAP outstanding original issue discount balance					$	(1,122)			$	(1,125)			$	(1,135)	$	(1,161)	$	(1,187)	$	(1,211)	$	(1,235)	$	(1,259)	$	(1,282)	$	(1,304)	$	(1,326)	$	(1,347)		$	(1,367)

1. Excludes accelerated OID. See page 23 for definitions.

Note: Accelerated OID and repositioning items primarily related to the extinguishment of high-cost legacy debt and strategic activities. Equity fair value adjustments related to ASU 2016-01 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 23 for definitions.

2Q 2019 Preliminary Results	30