Adjustments for Non-Cash Items (USD, millions)

Stock-Based Compensation (USD, millions)

Changes in Working Capital (USD, millions)

Capital Expenditures (CapEx) (USD, millions)

Proceeds from / Repayments of Debt (USD, millions)

Share Repurchases (USD, millions)

Dividend Payments (USD, millions)

Net Change in Cash (USD, millions)

8937b0a458729f4ee1198a71a5925b7773d33bb0faa1da3bd08378ba9f33d2f5

Cash and Cash Equivalents (USD, millions)

Short-term Debt (USD, millions)

Accrued Expenses (USD, millions)

Long-term Debt (USD, millions)

Shareholders' Equity (USD, millions)

Retained Earnings (USD, millions)

Common Stock (USD, millions)

5dfe12917708c03c660564f73b45f098a5a8e434f510c1efda92d2b845f077c9

Total financing revenue and other interest income (USD, millions)

Total interest expense (USD, millions)

Net depreciation expense on operating lease assets (USD, millions)

Total other revenue (USD, millions)

Total net revenue (USD, millions)

Provision for credit losses (USD, millions)

Total noninterest expense (USD, millions)

Income from continuing operations before income tax (benefit) expense (USD, millions)

Income tax (benefit) expense from continuing operations (USD, millions)

Net income from continuing operations (USD, millions)

Net income (USD, millions)

48319e06e195f5f4a92b21081e78ab2b114e9426f77cf8632ae528487ccf62f2

df516f3f8460d2de134601d12f7b3a8355eb83f6b3145d6dbb2fd3fda72719a8

Ally Financial’s net income from continuing operations in Q4 2023 was notably low due to several factors. The **Automotive Finance Segment** experienced a sharp decline with pre-tax income falling by **$143 million** (from **$437 million** to **$294 million**).  **[0001193125-24-010758_d691923dex992.htm:15]** **[0001193125-24-010758_d691923dex993.htm:13]**  Additionally, the **Corporate and Other Segment** worsened, with losses deepening by **$283 million** (from a loss of **$179 million** to a loss of **$462 million**).  **[0001193125-24-010758_d691923dex992.htm:15]** **[0001193125-24-010758_d691923dex993.htm:13]**  Moreover, increased **Repositioning Items** (rising from **$57 million** to **$172 million**) and a more adverse **Change in Fair Value of Equity Securities** (a negative impact growing from **$49 million** to **$74 million**) also contributed to the significantly reduced net income.  **[0001193125-24-010758_d691923dex992.htm:27]** **[0001193125-24-010758_d691923dex993.htm:13]** 

Why was net income from continuing operations so low in Q4 2023?

The sharp turnaround in other comprehensive income in Q4 2023 was primarily driven by a **substantial recovery in the value of available-for-sale securities**, which reversed a previous large loss. Specifically, the net unrealized gain on these securities was **$260 million** in 2023 compared to a loss of **$(3,982) million** in 2022. Additional contributing factors included a **$693 million net unrealized loss on securities transferred to held-to-maturity**, a small positive change of **$3 million** from translation adjustments and net investment hedges, a **cash flow hedge loss of $(27) million**, and the absence of a positive impact from defined benefit pension plans compared to the **$117 million gain** in 2022.  **[0000040729-24-000004_ally-20231231.htm:211]** 

What drove the sharp turnaround in other comprehensive income in Q4 2023?

The decline in net income from continuing operations in FY 2023 was primarily driven by several factors. **Lower net financing revenue** resulted from a decrease from **$6,850 million in FY 2022** to **$6,201 million in FY 2023**, due to rising interest expenses as benchmark rates increased, which offset the higher interest income from variable-rate loans.  **[0001193125-24-010758_d691923dex992.htm:32]** **[0001193125-24-010758_d691923dex993.htm:31]**  Additionally, there was a **higher provision for loan losses**, which increased from **$1,399 million to $1,968 million**, reflecting adjustments related to prior reserve reductions and increased credit loss provisions in 2023.  **[0001193125-24-010758_d691923dex992.htm:32]** **[0000040729-24-000004_ally-20231231.htm:131]**  The company also experienced **increased noninterest expense**, which rose by **$476 million** because of higher direct and allocated costs associated with business growth and repositioning.  **[0001193125-24-010758_d691923dex992.htm:32]** **[0001193125-24-010758_d691923dex993.htm:31]**  Finally, a **decline in other revenue** related to changes in the fair value of equity securities, with a swing of **$322 million**, further contributed to the lower net income.  **[0001193125-24-010758_d691923dex992.htm:32]** **[0001193125-24-010758_d691923dex993.htm:31]** 

What factors contributed to the lower net income from continuing operations in FY 2023?

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Cash and cash equivalents - Noninterest-bearing (USD, millions)

Cash and cash equivalents - Interest-bearing (USD, millions)

Total cash and cash equivalents (USD, millions)

Equity securities (USD, millions)

Available-for-sale securities (USD, millions)

Held-to-maturity securities (USD, millions)

Loans held-for-sale, net (USD, millions)

Finance receivables and loans, net of unearned income (USD, millions)

Allowance for loan losses (USD, millions)

Total finance receivables and loans, net (USD, millions)

Investment in operating leases, net (USD, millions)

Premiums receivable and other insurance assets (USD, millions)

Other assets (USD, millions)

Assets of operations held-for-sale (USD, millions)

Total assets (USD, millions)

Deposit liabilities - Noninterest-bearing (USD, millions)

Deposit liabilities - Interest-bearing (USD, millions)

Total deposit liabilities (USD, millions)

Short-term borrowings (USD, millions)

Long-term debt (USD, millions)

Interest payable (USD, millions)

Unearned insurance premiums and service revenue (USD, millions)

Accrued expenses and other liabilities (USD, millions)

Liabilities of operations held-for-sale (USD, millions)

Total liabilities (USD, millions)

Common stock and paid-in capital (USD, millions)

Preferred stock (USD, millions)

Retained earnings (USD, millions)

Accumulated other comprehensive loss (USD, millions)

Treasury stock, at cost (USD, millions)

Total equity (USD, millions)

Total liabilities and equity (USD, millions)

35e8168f44f225f6c87b49e780a8157111e803268038cfac021ec25e4463e662

Ally Financial’s operating cash flow experienced a significant decline in Q4 2023 primarily due to a **$162 million decrease in net income**, which was largely driven by **unfavorable market conditions and broader macroeconomic factors**.  **[0000040729-24-000012_ally-20240331.htm:150]** 

Why did operating cash flow plummet in Q4 2023?

The lower annual operating cash flow in FY 2023 was primarily driven by **unfavorable market conditions** created by the broader **macroeconomic environment**, which significantly impacted operating cash inflows.  **[0000040729-24-000004_ally-20231231.htm:190]** 

What factors contributed to the lower annual operating cash flow in FY 2023?

The significantly lower operating cash flow in Q3 2024 reflects several non-cash adjustments. Specifically, during the nine months ended September 30, 2024, there was a **$462 million decrease** in the net change in interest payable, a **$210 million decrease** in the net change in other assets, and a **$182 million decrease** in the net change in other liabilities. These decreases were only partially offset by a **$79 million increase** in net cash inflows from loans held-for-sale activity, ultimately leading to the lower operating cash flow observed in Q3 2024.  **[0000040729-24-000023_ally-20240930.htm:178]** **[0000040729-24-000023_ally-20240930.htm:8]** 

Why is operating cash flow significantly lower in Q3 2024?

52ae9a7ef9da40b13ce0fedbb0b717ec37a2f2816ac3ecab2f724f41eeabf1e1

Gain on mortgage and automotive loans, net (USD, millions)

Other gain on investments, net (USD, millions)

ce34a8fc4989df0422cb40e07c9464833868dafcc9978bead6b0f530e2954523

Automotive Finance

- Net Financing Revenue

- Other Revenue

Insurance

Mortgage Finance

Corporate Finance

Corporate and Other

Total Revenue

3354d09af2d48cba073820f6ebc83ba17f3c7d35a01faa25626d5500cf71670c

Ally Financial (ALLY)

Financials