Total Revenue

-47.8% YoY ( " " " " )

Total Revenue declined from $3,986 million in Q2 2024 to $2,082 million in Q2 2025 due to lower contributions from key segments such as Automotive Finance and Corporate Finance, despite a strong turnaround in Net Financing Revenue and a massive surge in Insurance. Previous periods showed volatility driven by high funding costs and changing portfolio yields which contributed to this overall shift in revenue mix. " " " "

Automotive Finance

-47% YoY ( " " )

Automotive Finance dropped from $2,628 million in Q2 2024 to $1,391 million in Q2 2025, driven by reduced consumer automotive loan financing revenue, lower lease gains, and subdued remarketing performance relative to the previous period’s strong figures. " "

Net Financing Revenue

Rebound from a loss of $56 million to $1,294 million ( " " )

Net Financing Revenue reversed its performance, moving from a loss of $56 million in Q2 2024 to $1,294 million in Q2 2025. This turnaround was driven by a shift in the portfolio toward higher-yielding asset classes, improved pricing and repricing outcomes, and factors such as a slightly shorter quarter contributing to positive net interest income, contrasting with the negative results of the previous period. " "

Insurance

+664% YoY (from $59 million to $452 million) ( " " )

The Insurance segment saw a dramatic surge, increasing from $59 million in Q2 2024 to $452 million in Q2 2025, due to robust growth in earned and written premiums that were supported by new OEM partnerships and strong inventory momentum—remarkably reversing the prior period’s low performance. " "

Corporate Finance

-41% YoY (from $215 million to $127 million) ( " " )

Corporate Finance fell from $215 million in Q2 2024 to $127 million in Q2 2025, as lower net financing margins and adjustments in portfolio performance impacted its revenue, echoing challenges seen in previous quarters where market and operational factors combined to reduce overall income. " "

Corporate and Other

Shift from a -$56 million loss to a +$112 million gain ( " " )

Corporate and Other reversed its performance from a loss of $56 million in Q2 2024 to a positive $112 million in Q2 2025. This recovery was driven by improved revenue from securities repositioning, lower noninterest expenses, and a reduction in credit loss provisions compared to the previous period’s mix of losses and expense pressures. " "

Net Interest Margin (NIM)

FY 2025

$3.4 billion to $3.5 billion " "

3.45% " "

no prior guidance

Capital Return

FY 2025

no prior guidance

10% CET1 "

no prior guidance

Credit Outlook

FY 2025

no prior guidance

Adjusted by removing 10 basis points at high end "

no prior guidance

Deposit Strategy

FY 2025

no prior guidance

Focus on seasonal repricing and deposit optimization "

no prior guidance

Auto Originations & Corporate Finance

FY 2025

no prior guidance

Auto originations at $11 billion and corporate finance at $11 billion (up $1.3 billion) "

no prior guidance

Retail Auto Loan Yields

FY 2025

High 9% to 10% "

9.82% "

no change

Net Interest Margin Outlook

In Q1 2025, Q4 2024, and Q3 2024, NIM was discussed in detail with benchmarks around 3.35%–4% and expectations of margin expansion driven by deposit repricing and asset mix improvements. " " " " " "

In Q2 2025, NIM was reported at 3.45% with acknowledged benefits from liquid savings and CD repricing offset by a 20‐bps drag from the credit card exit. " "

The sentiment remains confident with continued focus on margin expansion while adjusting expectations to address headwinds. " " "

Vulnerabilities

Previous periods highlighted vulnerabilities such as asset/liability sensitivity, interest rate risk, and competitive pressures in deposit pricing that could affect NIM. " " " "

Q2 2025 discussions pointed to near-term asset sensitivity and caution around significant rate cuts affecting NIM. "

Consistent caution is maintained; the focus remains on managing short‐term risks while being optimistic about medium‐term improvements. " "

Credit Quality, Delinquencies, and Charge‑off Trends

Across Q1 2025, Q4 2024, and Q3 2024, there was detailed discussion on improving charge‑off levels, evolving delinquency metrics, and expectations for normalized credit losses in retail auto and consolidated portfolios. " " " "

In Q2 2025, credit quality trends continue to show improvements with lower net charge‑offs and declining delinquencies, partly benefiting from prior asset repositioning and enhanced digital servicing. " "

The focus on credit normalization persists with an overall optimistic but cautious tone as improvements continue despite macro uncertainties. " " "

Capital Position, Strategic Focus, and Share Repurchase Capability

Earlier periods (Q1, Q4 2024, and Q3 2024) emphasized strong CET1 ratios, disciplined capital allocation, strategic focus on core businesses, and the intention to eventually resume share repurchases. " " " " "

Q2 2025 reported over $4 billion in excess capital, strong liquidity (over $66 billion), and ongoing repositioning efforts while prioritizing organic capital generation over immediate repurchases. " "

A robust capital position continues to be a priority, with stable strategic focus and a measured approach to share repurchases as capital generation remains strong. " "

Impact of the Credit Card Business Exit on Margins

In Q1 2025 and Q4 2024, the exit was expected to cause a 15–20‑bps drag on NIM yet offset by lower credit costs and improved capital metrics. " " "

Q2 2025 confirmed a 20‑bps drag on NIM while also noting that revenue impacts were balanced by growth in other segments and improved provision expenses. " " "

Although the negative impact persists, its effects are being managed effectively, maintaining overall confidence despite this headwind. " " "

Competitive Pressure in Auto Origination and Used Car Market Dynamics

Discussions in Q3 2024, Q4 2024, and Q1 2025 noted rising bank competition, strategic shifts in origination quality, and used car market dynamics influenced by tariffs and seasonality. " " " " "

Q2 2025 reiterated strong application volumes, record retail origination yields (nearly 9.82%), and robust used car price support for credit performance. " "

Consistent outlook with a competitive environment managed through differentiation and a continued positive view on used car price dynamics, enhancing overall market positioning. " "

Macroeconomic Uncertainty and Interest Rate Sensitivity

Prior calls (Q3 2024, Q4 2024, Q1 2025) discussed uncertainties from inflation, tariff changes, and the pace of Fed rate cuts, alongside strategies to manage interest rate sensitivity through deposit pricing and securities repositioning. " " " " "

In Q2 2025, macro concerns and rate sensitivities were acknowledged while maintaining confidence in achieving medium‑term NIM targets amid a cautious but adaptive approach. " " "

Ongoing uncertainty is recognized; however, confidence in risk management and resilient NIM guidance creates a balanced sentiment focused on medium‑term stabilization. " "

Loss Mitigation Strategies and Delayed Recognition of Credit Losses

Q1 2025, Q4 2024, and Q3 2024 provided detailed discussions on proactive servicing measures, repossession timing, communication efforts, and monitoring of delinquency flows to mitigate losses, with improved payment behaviors reducing eventual losses. " " " "

In Q2 2025, there was no dedicated discussion on these topics, suggesting that previous strategies may have been integrated into ongoing processes without needing additional emphasis. "

The topic appears less highlighted in Q2 2025, indicating that loss mitigation strategies have been successfully embedded and may now be viewed as part of routine operations. " "

Upcoming Accounting Changes (CECL, EV Lease Tax Credits) Affecting Capital

Q3 2024, Q4 2024, and Q1 2025 featured extensive commentary on the upcoming final phase‑in of CECL (with around 20‑bps impacts) and potential changes in the accounting method for EV lease tax credits, outlining near‑term impacts and medium‑term neutrality or adjustments. " " " " "

In Q2 2025, these changes are not a focal point—capital ratios remain strong, indicating that the anticipated impacts have been absorbed and are now part of the ongoing capital profile. "

The focus on upcoming accounting changes has diminished as firms absorb the adjustments; earlier concerns have transitioned into a stable capital framework. " "

Return on Capital Targets

In Q3 2024, Q4 2024, and Q1 2025, the company set mid‑teens ROE/ROTCE or return on capital targets, linking them to margin expansion and normalization of credit losses, with a clear strategic focus on delivering these returns over the medium term. " " "

Q2 2025 did not explicitly restate these targets, though core ROTCE figures were mentioned in the context of overall financial performance. "

Return on capital objectives remain implicit in the overall performance narrative; while less frequently spotlighted in Q2, the underlying target remains a critical driver for long‑term strategy. " "