Total Revenue

+98% YoY (from $2,067M in Q4 2023 to ~$4,093M in Q4 2024)

The dramatic increase is largely driven by a surge in the Insurance segment, which offset declines elsewhere by boosting overall revenue; this turnaround builds on prior underperformance by leveraging new OEM relationships and a strengthened insurance program. " "

Net Income

Reversed from $76M in Q4 2023 to –$14M in Q4 2024

The reversal to a net loss is attributable to negative contributions in key segments (notably Automotive Finance and Corporate Finance), despite strong insurance revenue gains; these shifts reflect both deteriorating operating results and changes in segment mixes over the periods. " "

Basic EPS

Fell from $0.16 to –$0.55

The drastic EPS decline mirrors the net income reversal, driven by negative performance in core segments and elevated operational challenges compared to the prior period. " "

Depreciation & Amortization

Dropped about 75% YoY (from $609M to $154M)

The significant decline in D&A expenses likely reflects changes in asset capitalization, reclassification, or adjustments from asset sales relative to previous period accounting practices, suggesting a one‐time or strategic change in expense recognition. "

Interest Expense

Declined modestly by ~6% YoY (from $1,908M to $1,799M)

Despite a challenging interest rate environment, strategic funding cost management and portfolio adjustments helped reduce interest expenses compared to earlier periods. "

Automotive Finance Segment

Contracted by approximately –243% YoY (from $1,412M to –$2,021M)

The segment’s performance turned sharply negative due to higher net charge-offs, increased loss reserves, lower lease terminations, and normalization in used vehicle values, contrasting with previously strong performance. " "

Insurance Segment

Increased massively from $45M to $1,443M

A record surge in this segment was driven by record written premiums ($384M), growth in the P&C vehicle inventory insurance program, and new OEM relationships that were not present in the prior period, leading to a dramatic revenue turnaround. " "

Corporate Finance Segment

Dropped from $128M to –$63M

A reversal in performance resulted from a decline in other revenue streams (including syndication income) and changes in credit performance, contrasting with the previously positive contribution in this segment. " "

Credit Performance

Consistently discussed across Q1–Q3 with focus on vintage challenges (notably the costly 2022 vintage) and early signs of improvement in the 2023 and 2024 vintages. " " "

Q4 emphasized improving credit performance with retail auto net charge-offs trending toward normalization (<2%), highlighted effective curtailment actions, and ongoing attention to elevated late-stage delinquencies. " "

Overall improvement with a shift from reliance on older, loss‐prone vintages toward newer, better performing vintages, despite continued caution regarding late-stage delinquencies.

Net Interest Margin

Across Q1–Q3, discussions centered on a medium-term target (around 4% by end-2025), with near-term volatility driven by deposit pricing and macro factors, while outlining asset mix shifts to higher-yield loans. " " "

Q4 maintained cautious guidance with a 2025 NIM outlook of 3.4% to 3.5%, emphasizing risks from interest rate movements and deposit competition while reinforcing medium-term expansion aspirations. " "

The sentiment remains cautious yet optimistic; near-term challenges persist but medium-term improvements are expected, with refined guidance reflective of evolving asset and liability dynamics.

Capital Management Strategies

Q1 and Q2 provided detailed coverage of CRT transactions, loan sales, and deconsolidation efforts to enhance capital flexibility, while Q3 had no specific mention. " " " "

In Q4, the discussion returned with emphasis on capital flexibility through the sale of the Credit Card business, execution of CRT transactions, and options for share repurchases. " "

An opportunistic and dynamic approach has been consistent, although Q3 saw no mention; overall, the strategy to optimize capital through asset sales and CRT remains a key and recurring focus.

Regulatory and Accounting Changes

Q1 through Q3 consistently addressed impacts such as the CECL phase-in, Basel III preparations, and evolving EV lease tax accounting methods, highlighting regulatory uncertainty and proactive adjustments to maintain capital buffers. " " " "

Q4 provided detailed commentary on specific changes including the EV lease tax credit deferral method, final phasing of CECL, and adjustments in capital due to ongoing regulatory uncertainties, particularly around AOCI considerations. " " "

Themes have remained steady and cautious; while the overall regulatory landscape is consistent across periods, Q4 offered increased detail on specific accounting adjustments, reflecting a heightened focus on managing regulatory impacts.

Auto Lending Dynamics and Concentration Risks

Q1 highlighted strong market share, robust yields, and diversification; Q2 focused on vintage performance shifts and the concentration risk posed by the 2022 vintage; Q3 emphasized origination volume and quality without explicit concentration mention. " " " "

Q4 provided a detailed look at auto lending dynamics with a focus on improved S-Tier originations (rising to 49%), stronger performance in newer vintages, and a targeted reduction in the 2022 vintage’s concentration (expected to fall from 20% to 10%). " " "

There is a positive trend with enhanced underwriting quality and reduced concentration risk, as the portfolio evolves toward higher credit tiers and the historically challenging vintage’s impact diminishes over time.

Underwriting and Loss Mitigation

Q1 touched indirectly on higher losses from the 2022 vintage; Q2 and Q3 detailed tightened underwriting, increased focus on S-tier originations, and proactive loss mitigation actions; discussions emphasized improved flow-to-loss trends and conservative credit policies. " " " "

Q4 expanded on these themes by discussing gradual curtailment adjustments, enhanced pricing actions, improved repossession timing, and robust communication strategies to mitigate losses and support better borrower outcomes. " "

There is a clear evolution toward improved risk management – underwriting practices have become more rigorous and loss mitigation strategies more refined over time, leading to increased confidence in managing credit losses.