EX-99.3 4 d167606dex993.htm EX-99.3

Exhibit 99.3

FIRST QUARTER 2021

FINANCIAL SUPPLEMENT

ALLY FINANCIAL INC. FORWARD-LOOKING STATEMENTS AND ADDITIONAL INFORMATION |  |

This document 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 document 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 future effects of COVID-19, the outlook for financial and operating metrics, and 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, 2020, 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 document 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.

1Q 2021 Preliminary Results |  | 2

ALLY FINANCIAL INC. TABLE OF CONTENTS |  |

|  | Page(s)
Consolidated Results |  |  |  |
Consolidated Financial Highlights |  |  | 4 |
Consolidated Income Statement |  |  | 5 |
Consolidated Period-End Balance Sheet |  |  | 6 |
Consolidated Average Balance Sheet |  |  | 7 |
Segment Detail |  |  |  |
Segment Highlights |  |  | 8 |
Automotive Finance |  |  | 9-10 |
Insurance |  |  | 11 |
Mortgage Finance |  |  | 12 |
Corporate Finance |  |  | 13 |
Corporate and Other |  |  | 14 |
Credit Related Information |  |  | 15-16 |
Supplemental Detail |  |  |  |
Capital |  |  | 17 |
Liquidity |  |  | 18 |
Net Interest Margin and Deposits |  |  | 19 |
Ally Bank Consumer Mortgage HFI Portfolios |  |  | 20 |
Earnings Per Share Related Information |  |  | 21 |
Adjusted Tangible Book Per Share Related Information |  |  | 22 |
Core ROTCE Related Information |  |  | 23 |
Adjusted Efficiency Ratio Related Information |  |  | 24 |

1Q 2021 Preliminary Results |  | 3

ALLY FINANCIAL INC. CONSOLIDATED FINANCIAL HIGHLIGHTS |  |

($ in millions, shares in thousands)

|  | QUARTERLY TRENDS |  | CHANGE VS.
Selected Income Statement Data |  | 1Q 21 |  | 4Q 20 |  | 3Q 20 |  | 2Q 20 |  | 1Q 20 |  | 4Q 20 |  | 1Q 20
Net financing revenue (excluding Core OID) (1) |  | $ | 1,382 |  |  | $ | 1,312 |  |  | $ | 1,209 |  |  | $ | 1,063 |  |  | $ | 1,154 |  |  | $ | 69 |  |  | $ | 227 |
Core OID |  |  | (10 | ) |  |  | (9 | ) |  |  | (9 | ) |  |  | (9 | ) |  |  | (8 | ) |  |  | (0 | ) |  |  | (1 | )
Net financing revenue (as reported) |  |  | 1,372 |  |  |  | 1,303 |  |  |  | 1,200 |  |  |  | 1,054 |  |  |  | 1,146 |  |  |  | 69 |  |  |  | 226 |
Other revenue (excluding change in fair value of equity securities) (2) |  |  | 548 |  |  |  | 567 |  |  |  | 471 |  |  |  | 465 |  |  |  | 451 |  |  |  | (18 | ) |  |  | 97 |
Change in fair value of equity securities (3) |  |  | 17 |  |  |  | 111 |  |  |  | 13 |  |  |  | 90 |  |  |  | (185 | ) |  |  | (95 | ) |  |  | 202 |
Other revenue (as reported) |  |  | 565 |  |  |  | 678 |  |  |  | 484 |  |  |  | 555 |  |  |  | 266 |  |  |  | (113 | ) |  |  | 299 |
Provision for loan losses |  |  | (13 | ) |  |  | 102 |  |  |  | 147 |  |  |  | 287 |  |  |  | 903 |  |  |  | (115 | ) |  |  | (916 | )
Total noninterest expense (4) |  |  | 943 |  |  |  | 1,023 |  |  |  | 905 |  |  |  | 985 |  |  |  | 920 |  |  |  | (80 | ) |  |  | 23 |
Pre-tax income (loss) from continuing operations |  |  | 1,007 |  |  |  | 856 |  |  |  | 632 |  |  |  | 337 |  |  |  | (411 | ) |  |  | 151 |  |  |  | 1,418 |
Income tax expense / (benefit) |  |  | 211 |  |  |  | 169 |  |  |  | 156 |  |  |  | 95 |  |  |  | (92 | ) |  |  | 42 |  |  |  | 303 |
(Loss) from discontinued operations, net of tax |  |  | - |  |  |  | - |  |  |  | - |  |  |  | (1 | ) |  |  | - |  |  |  | - |  |  |  | - |
Net income / (loss) attributable to common shareholders |  |  | 796 |  |  |  | 687 |  |  |  | 476 |  |  |  | 241 |  |  |  | (319 | ) |  |  | 109 |  |  |  | 1,115 |
Selected Balance Sheet Data (Period-End) |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Total assets |  | $ | 181,879 |  |  | $ | 182,165 |  |  | $ | 185,270 |  |  | $ | 184,061 |  |  | $ | 182,527 |  |  | $ | (286 | ) |  | $ | (648 | )
Consumer loans |  |  | 87,391 |  |  |  | 89,202 |  |  |  | 90,160 |  |  |  | 90,365 |  |  |  | 90,066 |  |  |  | (1,811 | ) |  |  | (2,675 | )
Commercial loans |  |  | 25,685 |  |  |  | 29,332 |  |  |  | 27,868 |  |  |  | 27,869 |  |  |  | 38,073 |  |  |  | (3,647 | ) |  |  | (12,388 | )
Allowance for loan losses |  |  | (3,152 | ) |  |  | (3,283 | ) |  |  | (3,379 | ) |  |  | (3,354 | ) |  |  | (3,245 | ) |  |  | 131 |  |  |  | 93 |
Deposits |  |  | 139,585 |  |  |  | 137,036 |  |  |  | 134,938 |  |  |  | 131,036 |  |  |  | 122,324 |  |  |  | 2,549 |  |  |  | 17,261 |
Total equity |  |  | 14,625 |  |  |  | 14,703 |  |  |  | 14,126 |  |  |  | 13,826 |  |  |  | 13,519 |  |  |  | (78 | ) |  |  | 1,106 |
Common Share Count |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Weighted average basic (5) |  |  | 375,229 |  |  |  | 376,081 |  |  |  | 375,658 |  |  |  | 375,051 |  |  |  | 375,723 |  |  |  | (852 | ) |  |  | (494 | )
Weighted average diluted (5) |  |  | 377,529 |  |  |  | 378,424 |  |  |  | 377,011 |  |  |  | 375,762 |  |  |  | 375,723 |  |  |  | (895 | ) |  |  | 1,806 |
Issued shares outstanding (period-end) |  |  | 371,805 |  |  |  | 374,674 |  |  |  | 373,857 |  |  |  | 373,837 |  |  |  | 373,155 |  |  |  | (2,870 | ) |  |  | (1,350 | )
Per Common Share Data |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Earnings per share (basic) (5) |  | $ | 2.12 |  |  | $ | 1.83 |  |  | $ | 1.27 |  |  | $ | 0.64 |  |  | $ | (0.85 | ) |  | $ | 0.29 |  |  | $ | 2.97 |
Earnings per share (diluted) (5) |  |  | 2.11 |  |  |  | 1.82 |  |  |  | 1.26 |  |  |  | 0.64 |  |  |  | (0.85 | ) |  |  | 0.29 |  |  |  | 2.96 |
Adjusted earnings per share (6) |  |  | 2.09 |  |  |  | 1.60 |  |  |  | 1.25 |  |  |  | 0.61 |  |  |  | (0.44 | ) |  |  | 0.49 |  |  |  | 2.54 |
Book value per share |  |  | 39.3 |  |  |  | 39.2 |  |  |  | 37.8 |  |  |  | 37.0 |  |  |  | 36.2 |  |  |  | 0.1 |  |  |  | 3.1 |
Tangible book value per share (7) |  |  | 38.3 |  |  |  | 38.2 |  |  |  | 36.7 |  |  |  | 35.9 |  |  |  | 35.0 |  |  |  | 0.1 |  |  |  | 3.3 |
Adjusted tangible book value per share (7) |  |  | 36.2 |  |  |  | 36.1 |  |  |  | 34.6 |  |  |  | 33.7 |  |  |  | 32.8 |  |  |  | 0.1 |  |  |  | 3.4 |
Select Financial Ratios |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Net interest margin (as reported) |  |  | 3.16% |  |  |  | 2.90% |  |  |  | 2.65% |  |  |  | 2.40% |  |  |  | 2.66% |  |  |  |  |  |  |  |  |
Net interest margin (ex. Core OID) (8) |  |  | 3.18% |  |  |  | 2.92% |  |  |  | 2.67% |  |  |  | 2.42% |  |  |  | 2.68% |  |  |  |  |  |  |  |  |
Cost of funds |  |  | 1.42% |  |  |  | 1.58% |  |  |  | 1.86% |  |  |  | 2.16% |  |  |  | 2.43% |  |  |  |  |  |  |  |  |
Cost of funds (ex. Core OID) (8) |  |  | 1.38% |  |  |  | 1.55% |  |  |  | 1.82% |  |  |  | 2.13% |  |  |  | 2.39% |  |  |  |  |  |  |  |  |
Efficiency Ratio (9) |  |  | 48.7% |  |  |  | 51.6% |  |  |  | 53.7% |  |  |  | 61.2% |  |  |  | 65.2% |  |  |  |  |  |  |  |  |
Adjusted efficiency ratio (8)(9) |  |  | 44.4% |  |  |  | 49.8% |  |  |  | 47.3% |  |  |  | 52.5% |  |  |  | 52.3% |  |  |  |  |  |  |  |  |
Return on average assets (10) |  |  | 1.7% |  |  |  | 1.5% |  |  |  | 1.0% |  |  |  | 0.5% |  |  |  | (0.7)% |  |  |  |  |  |  |  |  |
Return on average total equity (10) |  |  | 21.7% |  |  |  | 19.1% |  |  |  | 13.6% |  |  |  | 7.1% |  |  |  | (9.1)% |  |  |  |  |  |  |  |  |
Return on average tangible common equity (10) |  |  | 22.3% |  |  |  | 19.6% |  |  |  | 14.0% |  |  |  | 7.3% |  |  |  | (9.4)% |  |  |  |  |  |  |  |  |
Core ROTCE (11) |  |  | 24.1% |  |  |  | 18.7% |  |  |  | 15.2% |  |  |  | 7.6% |  |  |  | (5.4)% |  |  |  |  |  |  |  |  |
Capital Ratios (12) |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Common Equity Tier 1 (CET1) capital ratio |  |  | 11.1% |  |  |  | 10.6% |  |  |  | 10.4% |  |  |  | 10.1% |  |  |  | 9.3% |  |  |  |  |  |  |  |  |
Tier 1 capital ratio |  |  | 12.8% |  |  |  | 12.4% |  |  |  | 12.1% |  |  |  | 11.9% |  |  |  | 10.9% |  |  |  |  |  |  |  |  |
Total capital ratio |  |  | 14.6% |  |  |  | 14.1% |  |  |  | 14.1% |  |  |  | 13.8% |  |  |  | 12.8% |  |  |  |  |  |  |  |  |
Tier 1 leverage ratio |  |  | 9.8% |  |  |  | 9.4% |  |  |  | 9.0% |  |  |  | 8.9% |  |  |  | 8.9% |  |  |  |  |  |  |  |  |

(1) Represents a non-GAAP financial measure. Excludes Core OID. For more details refer to page 21.

(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 1/1/2018 in which such adjustments were recognized through other comprehensive income, a component of equity. For Non-GAAP calculation methodology and details see page 21.

(3) Change in fair value of equity securities impacts the Insurance and Corporate Finance segments. 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 1/1/2018 in which such adjustments were recognized through other comprehensive income, a component of equity.

(4) Including but not limited to employee related expenses, commissions and provision for losses and loss adjustment expense related to the insurance business, information technology expenses, servicing expenses, facilities expenses, marketing expenses, and other professional and legal expenses.

(5) Due to antidilutive effect of the net loss from pre-tax loss from continuing operations attributable to common shareholders for the first quarter 2020, basic weighted average common shares outstanding were used to calculate diluted earnings per share.

(6) Represents a non-GAAP financial measure. For more details refer to page 21.

(7) Represents a non-GAAP financial measure. For more details refer to page 22.

(8) Represents a non-GAAP financial measure. Excludes Core OID. For more details refer to page 21.

(9) Represents a non-GAAP financial measure. For more details refer to page 24.

(10) Return metrics are annualized.

(11) Return metrics are annualized. Represents a non-GAAP financial measure. For more details refer to page 23.

(12) For more details on final rules to address the impact of CECL on regulatory capital by allowing BHCs and banks, including Ally, see page 17.

1Q 2021 Preliminary Results |  | 4

ALLY FINANCIAL INC. CONSOLIDATED INCOME STATEMENT |  |

($ in millions)

|  | QUARTERLY TRENDS |  | CHANGE VS.
|  | 1Q 21 |  | 4Q 20 |  | 3Q 20 |  | 2Q 20 |  | 1Q 20 |  | 4Q 20 |  | 1Q 20
Financing revenue and other interest income |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Interest and fees on finance receivables and loans |  | $ | 1,582 |  |  | $ | 1,607 |  |  | $ | 1,602 |  |  | $ | 1,630 |  |  | $ | 1,742 |  |  | $ | (25 | ) |  | $ | (160 | )
Interest on loans held-for-sale |  |  | 5 |  |  |  | 6 |  |  |  | 5 |  |  |  | 4 |  |  |  | 2 |  |  |  | (1 | ) |  |  | 3 |
Total interest and dividends on investment securities |  |  | 124 |  |  |  | 130 |  |  |  | 162 |  |  |  | 187 |  |  |  | 213 |  |  |  | (6 | ) |  |  | (89 | )
Interest-bearing cash |  |  | 4 |  |  |  | 5 |  |  |  | 5 |  |  |  | 4 |  |  |  | 14 |  |  |  | (1 | ) |  |  | (10 | )
Other earning assets |  |  | 7 |  |  |  | 10 |  |  |  | 11 |  |  |  | 10 |  |  |  | 13 |  |  |  | (3 | ) |  |  | (6 | )
Operating leases |  |  | 370 |  |  |  | 365 |  |  |  | 360 |  |  |  | 343 |  |  |  | 367 |  |  |  | 5 |  |  |  | 3 |
Total financing revenue and other interest income |  |  | 2,092 |  |  |  | 2,123 |  |  |  | 2,145 |  |  |  | 2,178 |  |  |  | 2,351 |  |  |  | (31 | ) |  |  | (259 | )
Interest expense |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Interest on deposits |  |  | 306 |  |  |  | 367 |  |  |  | 452 |  |  |  | 541 |  |  |  | 592 |  |  |  | (61 | ) |  |  | (286 | )
Interest on short-term borrowings |  |  | 1 |  |  |  | 3 |  |  |  | 9 |  |  |  | 13 |  |  |  | 17 |  |  |  | (2 | ) |  |  | (16 | )
Interest on long-term debt |  |  | 250 |  |  |  | 274 |  |  |  | 309 |  |  |  | 318 |  |  |  | 348 |  |  |  | (24 | ) |  |  | (98 | )
Total interest expense |  |  | 557 |  |  |  | 644 |  |  |  | 770 |  |  |  | 872 |  |  |  | 957 |  |  |  | (87 | ) |  |  | (400 | )
Depreciation expense on operating lease assets |  |  | 163 |  |  |  | 176 |  |  |  | 175 |  |  |  | 252 |  |  |  | 248 |  |  |  | (13 | ) |  |  | (85 | )
Net financing revenue (as reported) |  | $ | 1,372 |  |  | $ | 1,303 |  |  | $ | 1,200 |  |  | $ | 1,054 |  |  | $ | 1,146 |  |  | $ | 69 |  |  | $ | 226 |
Other revenue |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Insurance premiums and service revenue earned |  |  | 280 |  |  |  | 287 |  |  |  | 276 |  |  |  | 263 |  |  |  | 277 |  |  |  | (7 | ) |  |  | 3 |
Gain on mortgage and automotive loans, net |  |  | 36 |  |  |  | 75 |  |  |  | 33 |  |  |  | 14 |  |  |  | (12 | ) |  |  | (39 | ) |  |  | 48 |
Loss on extinguishment of debt |  |  | (1 | ) |  |  | (52 | ) |  |  | (49 | ) |  |  | (1 | ) |  |  | (0 | ) |  |  | 51 |  |  |  | (1 | )
Other gain/loss on investments, net |  |  | 123 |  |  |  | 134 |  |  |  | 64 |  |  |  | 188 |  |  |  | (79 | ) |  |  | (11 | ) |  |  | 202 |
Other income, net of losses |  |  | 127 |  |  |  | 234 |  |  |  | 160 |  |  |  | 91 |  |  |  | 80 |  |  |  | (107 | ) |  |  | 47 |
Total other revenue |  |  | 565 |  |  |  | 678 |  |  |  | 484 |  |  |  | 555 |  |  |  | 266 |  |  |  | (113 | ) |  |  | 299 |
Total net revenue |  |  | 1,937 |  |  |  | 1,981 |  |  |  | 1,684 |  |  |  | 1,609 |  |  |  | 1,412 |  |  |  | (44 | ) |  |  | 525 |
Provision for loan losses |  |  | (13 | ) |  |  | 102 |  |  |  | 147 |  |  |  | 287 |  |  |  | 903 |  |  |  | (115 | ) |  |  | (916 | )
Noninterest expense |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Compensation and benefits expense |  |  | 395 |  |  |  | 340 |  |  |  | 342 |  |  |  | 334 |  |  |  | 360 |  |  |  | 55 |  |  |  | 35 |
Insurance losses and loss adjustment expenses |  |  | 63 |  |  |  | 62 |  |  |  | 85 |  |  |  | 142 |  |  |  | 74 |  |  |  | 1 |  |  |  | (11 | )
Goodwill impairment |  |  | - |  |  |  | - |  |  |  | - |  |  |  | 50 |  |  |  | - |  |  |  | - |  |  |  | - |
Other operating expenses |  |  | 485 |  |  |  | 621 |  |  |  | 478 |  |  |  | 459 |  |  |  | 486 |  |  |  | (136 | ) |  |  | (1 | )
Total noninterest expense |  |  | 943 |  |  |  | 1,023 |  |  |  | 905 |  |  |  | 985 |  |  |  | 920 |  |  |  | (80 | ) |  |  | 23 |
Pre-tax income (loss) from continuing operations |  | $ | 1,007 |  |  | $ | 856 |  |  | $ | 632 |  |  | $ | 337 |  |  | $ | (411 | ) |  | $ | 151 |  |  | $ | 1,418 |
Income tax expense / (benefit) from continuing operations |  |  | 211 |  |  |  | 169 |  |  |  | 156 |  |  |  | 95 |  |  |  | (92 | ) |  |  | 42 |  |  |  | 303 |
Net income (loss) from continuing operations |  |  | 796 |  |  |  | 687 |  |  |  | 476 |  |  |  | 242 |  |  |  | (319 | ) |  |  | 109 |  |  |  | 1,115 |
(Loss) from discontinued operations, net of tax |  |  | - |  |  |  | - |  |  |  | - |  |  |  | (1 | ) |  |  | - |  |  |  | - |  |  |  | - |
Net income (loss) |  | $ | 796 |  |  | $ | 687 |  |  | $ | 476 |  |  | $ | 241 |  |  | $ | (319 | ) |  | $ | 109 |  |  | $ | 1,115 |
Core Pre-Tax Income Walk |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Net financing revenue (ex. OID) (1) |  | $ | 1,382 |  |  | $ | 1,312 |  |  | $ | 1,209 |  |  | $ | 1,063 |  |  | $ | 1,154 |  |  | $ | 69 |  |  | $ | 227 |
Adjusted other revenue (2) |  |  | 548 |  |  |  | 567 |  |  |  | 471 |  |  |  | 465 |  |  |  | 451 |  |  |  | (18 | ) |  |  | 97 |
Provision for credit losses |  |  | (13 | ) |  |  | 102 |  |  |  | 147 |  |  |  | 287 |  |  |  | 903 |  |  |  | (115 | ) |  |  | (916 | )
Adjusted noninterest expense (3) |  |  | 943 |  |  |  | 1,023 |  |  |  | 905 |  |  |  | 935 |  |  |  | 920 |  |  |  | (80 | ) |  |  | 23 |
Core pre-tax income (loss) (4) |  | $ | 1,000 |  |  | $ | 754 |  |  | $ | 628 |  |  | $ | 306 |  |  | $ | (217 | ) |  | $ | 246 |  |  | $ | 1,217 |
Core OID |  |  | (10 | ) |  |  | (9 | ) |  |  | (9 | ) |  |  | (9 | ) |  |  | (8 | ) |  |  | (0 | ) |  |  | (1 | )
Change in the fair value of equity securities (5) |  |  | 17 |  |  |  | 111 |  |  |  | 13 |  |  |  | 90 |  |  |  | (185 | ) |  |  | (95 | ) |  |  | 202 |
Repositioning and other (6) |  |  | - |  |  |  | - |  |  |  | - |  |  |  | (50 | ) |  |  | - |  |  |  | - |  |  |  | - |
Pre-tax income (loss) from continuing operations |  | $ | 1,007 |  |  | $ | 856 |  |  | $ | 632 |  |  | $ | 337 |  |  | $ | (411 | ) |  | $ | 151 |  |  | $ | 1,418 |

(1) Represents a non-GAAP financial measure. Excludes Core OID. For more details refer to page 21.

(2) 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 1/1/2018 in which such adjustments were recognized through other comprehensive income, a component of equity. For more details refer to page 21.

(3) Represents a non-GAAP financial measure. Excludes Goodwill impairment at Ally Invest in 2Q 20. For more details refer to page 21.

(4) Core pre-tax income is a non-GAAP financial measure that adjusts pre-tax income from continuing operations by excluding (1) Core OID, (2) 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 1/1/2018 in which such adjustments were recognized through other comprehensive income, a component of equity and (3) repositioning and other which is primarily related to the extinguishment of high cost legacy debt, strategic activities and significant one-time items, as applicable for respective periods. 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.

(5) Change in fair value of equity securities impacts the Insurance and Corporate Finance segments. 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 1/1/2018 in which such adjustments were recognized through other comprehensive income, a component of equity.

(6) Repositioning and other includes a $50 million Goodwill impairment at Ally Invest in 2Q 20

1Q 2021 Preliminary Results |  | 5

ALLY FINANCIAL INC. CONSOLIDATED PERIOD-END BALANCE SHEET |  |

($ in millions)

|  | QUARTERLY TRENDS |  | CHANGE VS.
|  | 1Q 21 |  | 4Q 20 |  | 3Q 20 |  | 2Q 20 |  | 1Q 20 |  | 4Q 20 |  | 1Q 20
Assets |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Cash and cash equivalents |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Noninterest-bearing |  | $ | 747 |  |  | $ | 724 |  |  | $ | 719 |  |  | $ | 609 |  |  | $ | 453 |  |  | $ | 23 |  |  | $ | 294 |
Interest-bearing |  |  | 15,031 |  |  |  | 14,897 |  |  |  | 19,220 |  |  |  | 18,522 |  |  |  | 5,708 |  |  |  | 134 |  |  |  | 9,323 |
Total cash and cash equivalents |  |  | 15,778 |  |  |  | 15,621 |  |  |  | 19,939 |  |  |  | 19,131 |  |  |  | 6,161 |  |  |  | 157 |  |  |  | 9,617 |
Investment securities (1) |  |  | 35,711 |  |  |  | 32,154 |  |  |  | 31,871 |  |  |  | 31,228 |  |  |  | 31,619 |  |  |  | 3,557 |  |  |  | 4,092 |
Loans held-for-sale, net |  |  | 630 |  |  |  | 406 |  |  |  | 441 |  |  |  | 404 |  |  |  | 235 |  |  |  | 224 |  |  |  | 395 |
Finance receivables and loans, net |  |  | 113,076 |  |  |  | 118,534 |  |  |  | 118,028 |  |  |  | 118,234 |  |  |  | 128,139 |  |  |  | (5,458 | ) |  |  | (15,063 | )
Allowance for loan losses |  |  | (3,152 | ) |  |  | (3,283 | ) |  |  | (3,379 | ) |  |  | (3,354 | ) |  |  | (3,245 | ) |  |  | 131 |  |  |  | 93 |
Total finance receivables and loans, net |  |  | 109,924 |  |  |  | 115,251 |  |  |  | 114,649 |  |  |  | 114,880 |  |  |  | 124,894 |  |  |  | (5,327 | ) |  |  | (14,970 | )
Investment in operating leases, net |  |  | 9,944 |  |  |  | 9,639 |  |  |  | 9,454 |  |  |  | 9,088 |  |  |  | 9,064 |  |  |  | 305 |  |  |  | 880 |
Premiums receivables and other insurance assets |  |  | 2,725 |  |  |  | 2,679 |  |  |  | 2,662 |  |  |  | 2,609 |  |  |  | 2,576 |  |  |  | 46 |  |  |  | 149 |
Other assets |  |  | 7,167 |  |  |  | 6,415 |  |  |  | 6,254 |  |  |  | 6,721 |  |  |  | 7,978 |  |  |  | 752 |  |  |  | (811 | )
Total assets |  | $ | 181,879 |  |  | $ | 182,165 |  |  | $ | 185,270 |  |  | $ | 184,061 |  |  | $ | 182,527 |  |  | $ | (286 | ) |  | $ | (648 | )
Liabilities |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Deposit liabilities |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Noninterest-bearing |  | $ | 155 |  |  | $ | 128 |  |  | $ | 159 |  |  | $ | 134 |  |  | $ | 139 |  |  | $ | 27 |  |  | $ | 16 |
Interest-bearing |  |  | 139,430 |  |  |  | 136,908 |  |  |  | 134,779 |  |  |  | 130,902 |  |  |  | 122,185 |  |  |  | 2,522 |  |  |  | 17,245 |
Total deposit liabilities |  |  | 139,585 |  |  |  | 137,036 |  |  |  | 134,938 |  |  |  | 131,036 |  |  |  | 122,324 |  |  |  | 2,549 |  |  |  | 17,261 |
Short-term borrowings |  |  | - |  |  |  | 2,136 |  |  |  | 3,032 |  |  |  | 3,689 |  |  |  | 9,493 |  |  |  | (2,136 | ) |  |  | (9,493 | )
Long-term debt |  |  | 20,503 |  |  |  | 22,006 |  |  |  | 25,704 |  |  |  | 29,176 |  |  |  | 31,066 |  |  |  | (1,503 | ) |  |  | (10,563 | )
Interest payable |  |  | 453 |  |  |  | 412 |  |  |  | 748 |  |  |  | 697 |  |  |  | 710 |  |  |  | 41 |  |  |  | (257 | )
Unearned insurance premiums and service revenue |  |  | 3,487 |  |  |  | 3,438 |  |  |  | 3,401 |  |  |  | 3,338 |  |  |  | 3,305 |  |  |  | 49 |  |  |  | 182 |
Accrued expense and other liabilities |  |  | 3,226 |  |  |  | 2,434 |  |  |  | 3,321 |  |  |  | 2,299 |  |  |  | 2,110 |  |  |  | 792 |  |  |  | 1,116 |
Total liabilities |  | $ | 167,254 |  |  | $ | 167,462 |  |  | $ | 171,144 |  |  | $ | 170,235 |  |  | $ | 169,008 |  |  | $ | (208 | ) |  | $ | (1,754 | )
Equity |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Common stock and paid-in capital (2) |  | $ | 18,153 |  |  | $ | 18,350 |  |  | $ | 18,324 |  |  | $ | 18,307 |  |  | $ | 18,278 |  |  | $ | (197 | ) |  | $ | (125 | )
Accumulated deficit |  |  | (3,555 | ) |  |  | (4,278 | ) |  |  | (4,893 | ) |  |  | (5,296 | ) |  |  | (5,465 | ) |  |  | 723 |  |  |  | 1,910 |
Accumulated other comprehensive income / (loss) |  |  | 27 |  |  |  | 631 |  |  |  | 695 |  |  |  | 815 |  |  |  | 706 |  |  |  | (604 | ) |  |  | (679 | )
Total equity |  |  | 14,625 |  |  |  | 14,703 |  |  |  | 14,126 |  |  |  | 13,826 |  |  |  | 13,519 |  |  |  | (78 | ) |  |  | 1,106 |
Total liabilities and equity |  | $ | 181,879 |  |  | $ | 182,165 |  |  | $ | 185,270 |  |  | $ | 184,061 |  |  | $ | 182,527 |  |  | $ | (286 | ) |  | $ | (648 | )

(1) Includes held-to-maturity securities.

(2) Includes Treasury stock.

1Q 2021 Preliminary Results |  | 6

ALLY FINANCIAL INC. CONSOLIDATED AVERAGE BALANCE SHEET (1) |  |

($ in millions)

|  | QUARTERLY TRENDS |  | CHANGE VS.
|  | 1Q 21 |  | 4Q 20 |  | 3Q 20 |  | 2Q 20 |  | 1Q 20 |  | 4Q 20 |  | 1Q 20
Assets |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Interest-bearing cash and cash equivalents |  | $ | 15,363 |  |  | $ | 17,758 |  |  | $ | 20,719 |  |  | $ | 12,496 |  |  | $ | 4,853 |  |  | $ | (2,395 | ) |  | $ | 10,510 |
Investment securities and other earning assets |  |  | 34,694 |  |  |  | 33,107 |  |  |  | 32,059 |  |  |  | 32,201 |  |  |  | 32,694 |  |  |  | 1,587 |  |  |  | 2,000 |
Loans held-for-sale, net |  |  | 570 |  |  |  | 635 |  |  |  | 472 |  |  |  | 337 |  |  |  | 150 |  |  |  | (65 | ) |  |  | 420 |
Total finance receivables and loans, net (2) |  |  | 115,665 |  |  |  | 117,422 |  |  |  | 117,546 |  |  |  | 122,428 |  |  |  | 126,646 |  |  |  | (1,757 | ) |  |  | (10,980 | )
Investment in operating leases, net |  |  | 9,831 |  |  |  | 9,587 |  |  |  | 9,317 |  |  |  | 9,068 |  |  |  | 9,078 |  |  |  | 244 |  |  |  | 753 |
Total interest earning assets |  |  | 176,123 |  |  |  | 178,509 |  |  |  | 180,113 |  |  |  | 176,530 |  |  |  | 173,420 |  |  |  | (2,386 | ) |  |  | 2,703 |
Noninterest-bearing cash and cash equivalents |  |  | 531 |  |  |  | 505 |  |  |  | 536 |  |  |  | 432 |  |  |  | 418 |  |  |  | 26 |  |  |  | 113 |
Other assets |  |  | 8,502 |  |  |  | 8,112 |  |  |  | 8,137 |  |  |  | 8,250 |  |  |  | 7,583 |  |  |  | 390 |  |  |  | 919 |
Allowance for loan losses |  |  | (3,280 | ) |  |  | (3,363 | ) |  |  | (3,371 | ) |  |  | (3,227 | ) |  |  | (2,629 | ) |  |  | 83 |  |  |  | (651 | )
Total assets |  | $ | 181,876 |  |  | $ | 183,763 |  |  | $ | 185,415 |  |  | $ | 181,985 |  |  | $ | 178,792 |  |  | $ | (1,887 | ) |  | $ | 3,084 |
Liabilities |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Interest-bearing deposit liabilities |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Retail deposit liabilities |  | $ | 125,715 |  |  | $ | 122,166 |  |  | $ | 118,307 |  |  | $ | 111,152 |  |  | $ | 104,483 |  |  | $ | 3,549 |  |  | $ | 21,232 |
Other interest-bearing deposit liabilities (3) |  |  | 11,851 |  |  |  | 13,327 |  |  |  | 14,500 |  |  |  | 15,726 |  |  |  | 16,593 |  |  |  | (1,475 | ) |  |  | (4,742 | )
Total Interest-bearing deposit liabilities |  |  | 137,566 |  |  |  | 135,493 |  |  |  | 132,807 |  |  |  | 126,878 |  |  |  | 121,076 |  |  |  | 2,073 |  |  |  | 16,490 |
Short-term borrowings |  |  | 814 |  |  |  | 2,350 |  |  |  | 3,343 |  |  |  | 4,712 |  |  |  | 4,496 |  |  |  | (1,536 | ) |  |  | (3,682 | )
Long-term debt (4) |  |  | 21,173 |  |  |  | 24,103 |  |  |  | 28,512 |  |  |  | 30,554 |  |  |  | 33,122 |  |  |  | (2,930 | ) |  |  | (11,949 | )
Total interest-bearing liabilities (4) |  |  | 159,553 |  |  |  | 161,946 |  |  |  | 164,662 |  |  |  | 162,144 |  |  |  | 158,694 |  |  |  | (2,393 | ) |  |  | 859 |
Noninterest-bearing deposit liabilities |  |  | 152 |  |  |  | 149 |  |  |  | 157 |  |  |  | 136 |  |  |  | 141 |  |  |  | 3 |  |  |  | 11 |
Other liabilities |  |  | 7,038 |  |  |  | 6,819 |  |  |  | 6,472 |  |  |  | 5,343 |  |  |  | 6,137 |  |  |  | 219 |  |  |  | 901 |
Total liabilities |  | $ | 166,743 |  |  | $ | 168,914 |  |  | $ | 171,291 |  |  | $ | 167,623 |  |  | $ | 164,972 |  |  | $ | (2,171 | ) |  | $ | 1,771 |
Equity |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Total equity |  | $ | 15,133 |  |  | $ | 14,849 |  |  | $ | 14,124 |  |  | $ | 14,362 |  |  | $ | 13,820 |  |  | $ | 284 |  |  | $ | 1,313 |
Total liabilities and equity |  | $ | 181,876 |  |  | $ | 183,763 |  |  | $ | 185,415 |  |  | $ | 181,985 |  |  | $ | 178,792 |  |  | $ | (1,887 | ) |  | $ | 3,084 |

(1) Average balances are calculated using an average daily balance methodology

(2) Nonperforming finance receivables and loans are included in the average balances net of unearned income, unamortized premiums and discounts, and deferred fees and costs.

(3) Includes brokered (inclusive of sweep deposits) and other deposits (inclusive of mortgage escrow, and other deposits).

(4) Includes average Core OID balance of $1,023 million in 1Q 2021, $1,032 million in 4Q 2020, $1,041 million in 3Q 2020, $1,050 million in 2Q 2020, and $1,059 million in 1Q 20.

1Q 2021 Preliminary Results |  | 7

ALLY FINANCIAL INC. SEGMENT HIGHLIGHTS |  |

($ in millions)

|  | QUARTERLY TRENDS |  | CHANGE VS.
|  | 1Q 21 |  | 4Q 20 |  | 3Q 20 |  | 2Q 20 |  | 1Q 20 |  | 4Q 20 |  | 1Q 20
Pre-tax Income / (Loss) |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Automotive Finance |  | $ | 803 |  |  | $ | 563 |  |  | $ | 566 |  |  | $ | 329 |  |  | $ | (173 | ) |  | $ | 240 |  |  | $ | 976 |
Insurance |  |  | 141 |  |  |  | 183 |  |  |  | 78 |  |  |  | 128 |  |  |  | (105 | ) |  |  | (42 | ) |  |  | 246 |
Dealer Financial Services |  |  | 944 |  |  |  | 746 |  |  |  | 644 |  |  |  | 457 |  |  |  | (278 | ) |  |  | 198 |  |  |  | 1,222 |
Corporate Finance |  |  | 53 |  |  |  | 64 |  |  |  | 60 |  |  |  | 32 |  |  |  | (68 | ) |  |  | (11 | ) |  |  | 121 |
Mortgage Finance |  |  | 23 |  |  |  | 7 |  |  |  | 26 |  |  |  | 8 |  |  |  | 12 |  |  |  | 16 |  |  |  | 11 |
Corporate and Other (1) |  |  | (13 | ) |  |  | 39 |  |  |  | (98 | ) |  |  | (160 | ) |  |  | (77 | ) |  |  | (52 | ) |  |  | 64 |
Pre-tax income from continuing operations |  | $ | 1,007 |  |  | $ | 856 |  |  | $ | 632 |  |  | $ | 337 |  |  | $ | (411 | ) |  | $ | 151 |  |  | $ | 1,418 |
Core OID (2) |  |  | 10 |  |  |  | 9 |  |  |  | 9 |  |  |  | 9 |  |  |  | 8 |  |  |  | 0 |  |  |  | 1 |
Change in the fair value of equity securities (3) |  |  | (17 | ) |  |  | (111 | ) |  |  | (13 | ) |  |  | (90 | ) |  |  | 185 |  |  |  | 95 |  |  |  | (202 | )
Repositioning and other (4) |  |  | - |  |  |  | - |  |  |  | - |  |  |  | 50 |  |  |  | - |  |  |  | - |  |  |  | - |
Core pre-tax income (loss) (5) |  | $ | 1,000 |  |  | $ | 754 |  |  | $ | 628 |  |  | $ | 306 |  |  | $ | (217 | ) |  | $ | 246 |  |  | $ | 1,217 |

(1) Corporate and Other includes the impact of centralized asset and liability management, corporate overhead allocation activities, the legacy mortgage portfolio, Ally Invest activity, and Ally Lending activity.

(2) Core OID for all periods shown are applied to the pre-tax income of the Corporate and Other segment.

(3) Change in fair value of equity securities impacts the Insurance and Corporate Finance segments. 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 1/1/2018 in which such adjustments were recognized through other comprehensive income, a component of equity.

(4) Repositioning and other includes a $50 million Goodwill impairment at Ally Invest in 2Q 20

(5) Core pre-tax income is a non-GAAP financial measure that adjusts pre-tax income from continuing operations by excluding (1) Core OID, (2) 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 1/1/2018 in which such adjustments were recognized through other comprehensive income, a component of equity and (3) repositioning and other which is primarily related to the extinguishment of high cost legacy debt, strategic activities and significant one-time items, as applicable for respective periods. 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.

1Q 2021 Preliminary Results |  | 8

ALLY FINANCIAL INC. AUTOMOTIVE FINANCE - CONDENSED FINANCIAL STATEMENTS |  |

($ in millions)

|  | QUARTERLY TRENDS |  | CHANGE VS.
Income Statement |  | 1Q 21 |  | 4Q 20 |  | 3Q 20 |  | 2Q 20 |  | 1Q 20 |  | 4Q 20 |  | 1Q 20
Net financing revenue |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Consumer |  | $ | 1,251 |  |  | $ | 1,261 |  |  | $ | 1,253 |  |  | $ | 1,215 |  |  | $ | 1,202 |  |  | $ | (10 | ) |  | $ | 49 |
Commercial |  |  | 161 |  |  |  | 163 |  |  |  | 153 |  |  |  | 210 |  |  |  | 307 |  |  |  | (2 | ) |  |  | (146 | )
Operating leases |  |  | 370 |  |  |  | 365 |  |  |  | 360 |  |  |  | 343 |  |  |  | 367 |  |  |  | 5 |  |  |  | 3 |
Other interest income |  |  | - |  |  |  | 1 |  |  |  | 1 |  |  |  | 2 |  |  |  | 1 |  |  |  | (1 | ) |  |  | (1 | )
Total financing revenue and other interest income |  |  | 1,782 |  |  |  | 1,790 |  |  |  | 1,767 |  |  |  | 1,770 |  |  |  | 1,877 |  |  |  | (8 | ) |  |  | (95 | )
Interest expense |  |  | 413 |  |  |  | 461 |  |  |  | 490 |  |  |  | 529 |  |  |  | 589 |  |  |  | (48 | ) |  |  | (176 | )
Depreciation expense on operating lease assets: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Depreciation expense on operating lease assets (ex. remarketing) |  |  | 226 |  |  |  | 242 |  |  |  | 245 |  |  |  | 240 |  |  |  | 251 |  |  |  | (15 | ) |  |  | (25 | )
Remarketing gains / (losses) |  |  | 64 |  |  |  | 66 |  |  |  | 70 |  |  |  | (11 | ) |  |  | 2 |  |  |  | (1 | ) |  |  | 62 |
Total depreciation expense on operating lease assets |  |  | 163 |  |  |  | 176 |  |  |  | 175 |  |  |  | 252 |  |  |  | 248 |  |  |  | (13 | ) |  |  | (85 | )
Net financing revenue |  |  | 1,206 |  |  |  | 1,153 |  |  |  | 1,102 |  |  |  | 989 |  |  |  | 1,040 |  |  |  | 53 |  |  |  | 166 |
Other revenue |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Total other revenue |  |  | 62 |  |  |  | 56 |  |  |  | 61 |  |  |  | 40 |  |  |  | 47 |  |  |  | 6 |  |  |  | 15 |
Total net revenue |  |  | 1,268 |  |  |  | 1,209 |  |  |  | 1,163 |  |  |  | 1,029 |  |  |  | 1,087 |  |  |  | 59 |  |  |  | 181 |
Provision for credit losses |  |  | (22 | ) |  |  | 86 |  |  |  | 128 |  |  |  | 256 |  |  |  | 766 |  |  |  | (108 | ) |  |  | (788 | )
Noninterest expense |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Compensation and benefits |  |  | 145 |  |  |  | 134 |  |  |  | 134 |  |  |  | 133 |  |  |  | 148 |  |  |  | 11 |  |  |  | (3 | )
Other operating expenses |  |  | 342 |  |  |  | 426 |  |  |  | 335 |  |  |  | 311 |  |  |  | 346 |  |  |  | (84 | ) |  |  | (4 | )
Total noninterest expense |  |  | 487 |  |  |  | 560 |  |  |  | 469 |  |  |  | 444 |  |  |  | 494 |  |  |  | (73 | ) |  |  | (7 | )
Pre-tax Income / (loss) |  | $ | 803 |  |  | $ | 563 |  |  | $ | 566 |  |  | $ | 329 |  |  | $ | (173 | ) |  | $ | 240 |  |  | $ | 976 |
Memo: Net lease revenue |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Operating lease revenue |  | $ | 370 |  |  | $ | 365 |  |  | $ | 360 |  |  | $ | 343 |  |  | $ | 367 |  |  | $ | 5 |  |  | $ | 3 |
Depreciation expense on operating lease assets (ex. remarketing) |  |  | 226 |  |  |  | 242 |  |  |  | 245 |  |  |  | 240 |  |  |  | 251 |  |  |  | (15 | ) |  |  | (25 | )
Remarketing gains (losses), net of repo valuation |  |  | 64 |  |  |  | 66 |  |  |  | 70 |  |  |  | (11 | ) |  |  | 2 |  |  |  | (1 | ) |  |  | 62 |
Total depreciation expense on operating lease assets |  |  | 163 |  |  |  | 176 |  |  |  | 175 |  |  |  | 252 |  |  |  | 248 |  |  |  | (13 | ) |  |  | (85 | )
Net lease revenue |  | $ | 207 |  |  | $ | 189 |  |  | $ | 185 |  |  | $ | 91 |  |  | $ | 119 |  |  | $ | 18 |  |  | $ | 88 |
Balance Sheet (Period-End) |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Cash, trading and investment securities |  | $ | 23 |  |  | $ | 23 |  |  | $ | 23 |  |  | $ | 23 |  |  | $ | 23 |  |  | $ | - |  |  | $ | - |
Consumer loans |  |  | 73,826 |  |  |  | 73,443 |  |  |  | 73,484 |  |  |  | 72,378 |  |  |  | 72,463 |  |  |  | 383 |  |  |  | 1,363 |
Commercial loans |  |  | 19,208 |  |  |  | 23,141 |  |  |  | 21,854 |  |  |  | 21,708 |  |  |  | 31,390 |  |  |  | (3,933 | ) |  |  | (12,182 | )
Allowance for loan losses |  |  | (2,867 | ) |  |  | (2,986 | ) |  |  | (3,092 | ) |  |  | (3,084 | ) |  |  | (2,968 | ) |  |  | 119 |  |  |  | 101 |
Total finance receivables and loans, net |  |  | 90,167 |  |  |  | 93,598 |  |  |  | 92,246 |  |  |  | 91,002 |  |  |  | 100,885 |  |  |  | (3,431 | ) |  |  | (10,718 | )
Investment in operating leases, net |  |  | 9,944 |  |  |  | 9,639 |  |  |  | 9,454 |  |  |  | 9,088 |  |  |  | 9,064 |  |  |  | 305 |  |  |  | 880 |
Other assets |  |  | 1,432 |  |  |  | 1,534 |  |  |  | 1,643 |  |  |  | 1,903 |  |  |  | 1,582 |  |  |  | (102 | ) |  |  | (150 | )
Total assets |  | $ | 101,566 |  |  | $ | 104,794 |  |  | $ | 103,366 |  |  | $ | 102,016 |  |  | $ | 111,554 |  |  | $ | (3,228 | ) |  | $ | (9,988 | )

1Q 2021 Preliminary Results |  | 9

ALLY FINANCIAL INC. AUTOMOTIVE FINANCE - KEY STATISTICS |  |

|  | QUARTERLY TRENDS |  | CHANGE VS.
|  | 1Q 21 |  | 4Q 20 |  | 3Q 20 |  | 2Q 20 |  | 1Q 20 |  | 4Q 20 |  | 1Q 20
U.S. Consumer Originations (1) ($ in billions) |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Retail standard - new vehicle GM |  | $ | 1.0 |  |  | $ | 1.1 |  |  | $ | 1.0 |  |  | $ | 0.7 |  |  | $ | 1.0 |  |  | $ | (0.1 | ) |  | $ | 0.0 |
Retail standard - new vehicle Stellantis |  |  | 1.0 |  |  |  | 1.0 |  |  |  | 1.0 |  |  |  | 0.7 |  |  |  | 0.8 |  |  |  | 0.0 |  |  |  | 0.2 |
Retail standard - new vehicle Growth |  |  | 1.1 |  |  |  | 1.1 |  |  |  | 1.0 |  |  |  | 0.6 |  |  |  | 1.1 |  |  |  | 0.0 |  |  |  | 0.0 |
Used vehicle |  |  | 5.7 |  |  |  | 4.7 |  |  |  | 5.4 |  |  |  | 4.3 |  |  |  | 5.0 |  |  |  | 1.0 |  |  |  | 0.7 |
Lease |  |  | 1.4 |  |  |  | 1.2 |  |  |  | 1.4 |  |  |  | 0.9 |  |  |  | 1.2 |  |  |  | 0.2 |  |  |  | 0.1 |
Retail subvented |  |  | 0.0 |  |  |  | 0.0 |  |  |  | 0.0 |  |  |  | 0.0 |  |  |  | 0.0 |  |  |  | 0.0 |  |  |  | 0.0 |
Total originations |  | $ | 10.2 |  |  | $ | 9.1 |  |  | $ | 9.8 |  |  | $ | 7.2 |  |  | $ | 9.1 |  |  | $ | 1.1 |  |  | $ | 1.1 |
U.S. Consumer Originations - FICO Score |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Super Prime (740+) |  | $ | 2.2 |  |  | $ | 2.1 |  |  | $ | 2.3 |  |  | $ | 1.6 |  |  | $ | 2.1 |  |  | $ | 0.1 |  |  | $ | 0.1 |
Prime (660-739) |  |  | 4.2 |  |  |  | 3.7 |  |  |  | 3.9 |  |  |  | 2.9 |  |  |  | 3.4 |  |  |  | 0.5 |  |  |  | 0.8 |
Prime/Near (620-659) |  |  | 2.3 |  |  |  | 2.0 |  |  |  | 2.0 |  |  |  | 1.6 |  |  |  | 1.9 |  |  |  | 0.4 |  |  |  | 0.4 |
Non Prime (540-619) |  |  | 0.8 |  |  |  | 0.6 |  |  |  | 0.8 |  |  |  | 0.6 |  |  |  | 0.9 |  |  |  | 0.1 |  |  |  | (0.2 | )
Sub Prime (0-539) |  |  | 0.1 |  |  |  | 0.1 |  |  |  | 0.2 |  |  |  | 0.1 |  |  |  | 0.1 |  |  |  | 0.0 |  |  |  | 0.0 |
Commercial Services Group (2) |  |  | 0.6 |  |  |  | 0.6 |  |  |  | 0.5 |  |  |  | 0.4 |  |  |  | 0.6 |  |  |  | 0.0 |  |  |  | 0.0 |
Total originations |  | $ | 10.2 |  |  | $ | 9.1 |  |  | $ | 9.8 |  |  | $ | 7.2 |  |  | $ | 9.1 |  |  | $ | 1.1 |  |  | $ | 1.1 |
U.S. Consumer Retail Originations - Average FICO |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
New vehicle |  |  | 693 |  |  |  | 698 |  |  |  | 699 |  |  |  | 697 |  |  |  | 695 |  |  |  | (5 | ) |  |  | (2 | )
Used vehicle |  |  | 681 |  |  |  | 684 |  |  |  | 681 |  |  |  | 680 |  |  |  | 681 |  |  |  | (4 | ) |  |  | - |
Total retail originations |  |  | 685 |  |  |  | 690 |  |  |  | 687 |  |  |  | 685 |  |  |  | 686 |  |  |  | (5 | ) |  |  | (1 | )
U.S. Market |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Light vehicle sales (SAAR - units in millions) |  |  | 16.7 |  |  |  | 16.1 |  |  |  | 15.3 |  |  |  | 11.3 |  |  |  | 15.0 |  |  |  | 0.6 |  |  |  | 1.7 |
Light vehicle sales (quarterly - units in millions) |  |  | 3.9 |  |  |  | 4.2 |  |  |  | 3.9 |  |  |  | 3.0 |  |  |  | 3.5 |  |  |  | (0.3 | ) |  |  | 0.4 |
Dealer Engagement |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Total Active Dealers |  |  | 18,986 |  |  |  | 18,716 |  |  |  | 18,658 |  |  |  | 18,423 |  |  |  | 18,293 |  |  |  | 270 |  |  |  | 693 |
Total Application Volume (000s) |  |  | 3,284 |  |  |  | 2,804 |  |  |  | 3,240 |  |  |  | 3,099 |  |  |  | 2,987 |  |  |  | 480 |  |  |  | 298 |
Ally U.S. Commercial Outstandings EOP ($ in billions) |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Floorplan outstandings |  | $ | 13.5 |  |  | $ | 17.3 |  |  | $ | 16.0 |  |  | $ | 15.8 |  |  | $ | 26.1 |  |  | $ | (3.8 | ) |  | $ | (12.6 | )
Dealer loans and other |  |  | 5.7 |  |  |  | 5.9 |  |  |  | 5.8 |  |  |  | 5.9 |  |  |  | 5.3 |  |  |  | (0.2 | ) |  |  | 0.4 |
Total Commercial outstandings |  | $ | 19.2 |  |  | $ | 23.1 |  |  | $ | 21.9 |  |  | $ | 21.7 |  |  | $ | 31.4 |  |  | $ | (3.9 | ) |  | $ | (12.2 | )
U.S. Off-Lease Remarketing |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Off-lease vehicles terminated - on-balance sheet (# in units) |  |  | 30,488 |  |  |  | 30,480 |  |  |  | 28,917 |  |  |  | 26,785 |  |  |  | 20,419 |  |  |  | 8 |  |  |  | 10,069 |
Average gain / (loss) per vehicle |  | $ | 2,114 |  |  | $ | 2,150 |  |  | $ | 2,437 |  |  | $ | (421 | ) |  | $ | 121 |  |  | $ | (37 | ) |  | $ | 1,993 |
Total gain / (loss) ($ in millions) |  | $ | 64 |  |  | $ | 66 |  |  | $ | 70 |  |  | $ | (11 | ) |  | $ | 2 |  |  | $ | (1 | ) |  | $ | 62 |

(1) Some standard rate loan originations contain manufacturer sponsored cash back rebate incentives. Some lease originations contain rate subvention. While Ally may jointly develop marketing programs for these originations, Ally does not have exclusive rights to such originations under operating agreements with manufacturers.

(2) Commercial Services Group (CSG) are business customers. Average annualized credit losses of 40-45 bps on CSG loans from 2016 through 1Q21

1Q 2021 Preliminary Results |  | 10

ALLY FINANCIAL INC. INSURANCE - CONDENSED FINANCIAL STATEMENTS AND KEY STATISTICS |  |

($ in millions)

|  | QUARTERLY TRENDS |  | CHANGE VS.
Income Statement (GAAP View) |  | 1Q 21 |  | 4Q 20 |  | 3Q 20 |  | 2Q 20 |  | 1Q 20 |  | 4Q 20 |  | 1Q 20
Net financing revenue |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Total interest and fees on finance receivables and loans(1) |  | $ | 4 |  |  | $ | 1 |  |  | $ | - |  |  | $ | - |  |  | $ | - |  |  | $ | 3 |  |  | $ | 4 |
Interest and dividends on investment securities |  |  | 25 |  |  |  | 26 |  |  |  | 25 |  |  |  | 27 |  |  |  | 29 |  |  |  | (1 | ) |  |  | (4 | )
Interest bearing cash |  |  | - |  |  |  | 1 |  |  |  | 4 |  |  |  | 4 |  |  |  | 5 |  |  |  | (1 | ) |  |  | (5 | )
Total financing revenue and other interest revenue |  |  | 29 |  |  |  | 28 |  |  |  | 29 |  |  |  | 31 |  |  |  | 34 |  |  |  | 1 |  |  |  | (5 | )
Interest expense |  |  | 14 |  |  |  | 20 |  |  |  | 21 |  |  |  | 19 |  |  |  | 20 |  |  |  | (6 | ) |  |  | (6 | )
Net financing revenue |  |  | 15 |  |  |  | 8 |  |  |  | 8 |  |  |  | 12 |  |  |  | 14 |  |  |  | 7 |  |  |  | 1 |
Other revenue |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Insurance premiums and service revenue earned |  |  | 280 |  |  |  | 287 |  |  |  | 276 |  |  |  | 263 |  |  |  | 277 |  |  |  | (7 | ) |  |  | 3 |
Other gain / (loss) on investments, net |  |  | 98 |  |  |  | 131 |  |  |  | 59 |  |  |  | 172 |  |  |  | (142 | ) |  |  | (33 | ) |  |  | 240 |
Other income, net of losses |  |  | 1 |  |  |  | 3 |  |  |  | 3 |  |  |  | 3 |  |  |  | 2 |  |  |  | (2 | ) |  |  | (1 | )
Total other revenue |  |  | 379 |  |  |  | 421 |  |  |  | 338 |  |  |  | 438 |  |  |  | 137 |  |  |  | (42 | ) |  |  | 242 |
Total net revenue |  |  | 394 |  |  |  | 429 |  |  |  | 346 |  |  |  | 450 |  |  |  | 151 |  |  |  | (35 | ) |  |  | 243 |
Noninterest expense |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Compensation and benefits expense |  |  | 22 |  |  |  | 20 |  |  |  | 21 |  |  |  | 20 |  |  |  | 21 |  |  |  | 2 |  |  |  | 1 |
Insurance losses and loss adjustment expenses |  |  | 63 |  |  |  | 62 |  |  |  | 85 |  |  |  | 142 |  |  |  | 74 |  |  |  | 1 |  |  |  | (11 | )
Other operating expenses |  |  | 168 |  |  |  | 164 |  |  |  | 162 |  |  |  | 160 |  |  |  | 161 |  |  |  | 4 |  |  |  | 7 |
Total noninterest expense |  |  | 253 |  |  |  | 246 |  |  |  | 268 |  |  |  | 322 |  |  |  | 256 |  |  |  | 7 |  |  |  | (3 | )
Pre-tax Income / (Loss) |  | $ | 141 |  |  | $ | 183 |  |  | $ | 78 |  |  | $ | 128 |  |  | $ | (105 | ) |  | $ | (42 | ) |  | $ | 246 |
Memo: Income Statement (Managerial View) |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Insurance premiums and other income |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Insurance premiums and service revenue earned |  | $ | 280 |  |  | $ | 287 |  |  | $ | 276 |  |  | $ | 263 |  |  | $ | 277 |  |  | $ | (7 | ) |  | $ | 3 |
Investment income (adjusted) (2) |  |  | 102 |  |  |  | 28 |  |  |  | 54 |  |  |  | 95 |  |  |  | 54 |  |  |  | 73 |  |  |  | 48 |
Other income |  |  | 1 |  |  |  | 3 |  |  |  | 3 |  |  |  | 3 |  |  |  | 2 |  |  |  | (2 | ) |  |  | (1 | )
Total insurance premiums and other income |  |  | 383 |  |  |  | 318 |  |  |  | 333 |  |  |  | 361 |  |  |  | 333 |  |  |  | 64 |  |  |  | 50 |
Expense |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Insurance losses and loss adjustment expenses |  |  | 63 |  |  |  | 62 |  |  |  | 85 |  |  |  | 142 |  |  |  | 74 |  |  |  | 1 |  |  |  | (11 | )
Acquisition and underwriting expenses |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Compensation and benefit expense |  |  | 22 |  |  |  | 20 |  |  |  | 21 |  |  |  | 20 |  |  |  | 21 |  |  |  | 2 |  |  |  | 1 |
Insurance commission expense |  |  | 136 |  |  |  | 133 |  |  |  | 130 |  |  |  | 127 |  |  |  | 126 |  |  |  | 3 |  |  |  | 10 |
Other expense |  |  | 32 |  |  |  | 31 |  |  |  | 32 |  |  |  | 33 |  |  |  | 35 |  |  |  | 1 |  |  |  | (3 | )
Total acquistion and underwriting expense |  |  | 190 |  |  |  | 184 |  |  |  | 183 |  |  |  | 180 |  |  |  | 182 |  |  |  | 6 |  |  |  | 8 |
Total expense |  |  | 253 |  |  |  | 246 |  |  |  | 268 |  |  |  | 322 |  |  |  | 256 |  |  |  | 7 |  |  |  | (3 | )
Core pre-tax income / (loss) (2) |  |  | 130 |  |  |  | 72 |  |  |  | 65 |  |  |  | 39 |  |  |  | 77 |  |  |  | 57 |  |  |  | 53 |
Change in the fair value of equity securities (2) |  |  | 11 |  |  |  | 111 |  |  |  | 13 |  |  |  | 89 |  |  |  | (182 | ) |  |  | (99 | ) |  |  | 193 |
Income / (Loss) before income tax expense |  | $ | 141 |  |  | $ | 183 |  |  | $ | 78 |  |  | $ | 128 |  |  | $ | (105 | ) |  | $ | (42 | ) |  | $ | 246 |
Balance Sheet (Period-End) |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Cash, trading and investment securities |  | $ | 5,706 |  |  | $ | 5,421 |  |  | $ | 6,006 |  |  | $ | 5,920 |  |  | $ | 5,193 |  |  | $ | 285 |  |  | $ | 513 |
Intercompany loans(1) |  |  | 591 |  |  |  | 830 |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | (239 | ) |  |  | 591 |
Premiums receivable and other insurance assets |  |  | 2,738 |  |  |  | 2,693 |  |  |  | 2,674 |  |  |  | 2,621 |  |  |  | 2,594 |  |  |  | 45 |  |  |  | 144 |
Other assets |  |  | 186 |  |  |  | 193 |  |  |  | 264 |  |  |  | 199 |  |  |  | 633 |  |  |  | (7 | ) |  |  | (447 | )
Total assets |  | $ | 9,221 |  |  | $ | 9,137 |  |  | $ | 8,944 |  |  | $ | 8,740 |  |  | $ | 8,420 |  |  | $ | 84 |  |  | $ | 801 |
Key Statistics |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Total written premiums and revenue (3) |  | $ | 333 |  |  | $ | 312 |  |  | $ | 333 |  |  | $ | 267 |  |  | $ | 317 |  |  | $ | 21 |  |  | $ | 16 |
Loss ratio (4) |  |  | 22.4% |  |  |  | 21.6% |  |  |  | 30.3% |  |  |  | 53.4% |  |  |  | 26.5% |  |  |  |  |  |  |  |  |
Underwriting expense ratio (5) |  |  | 67.1% |  |  |  | 63.5% |  |  |  | 65.8% |  |  |  | 67.4% |  |  |  | 65.1% |  |  |  |  |  |  |  |  |
Combined ratio |  |  | 89.5% |  |  |  | 85.1% |  |  |  | 96.1% |  |  |  | 120.9% |  |  |  | 91.6% |  |  |  |  |  |  |  |  |

(1) Intercompany activity represents excess liquidity placed with corporate segment

(2)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 1/1/2018 in which such adjustments were recognized through other comprehensive income, a component of equity.

(3) Written premiums are net of ceded premium for reinsurance.

(4) Loss Ratio is calculated as Insurance losses and loss adjustment expenses divided by Insurance premiums and service revenue earned and Other Income, net of losses.

(5) Underwriting Expense Ratio is calculated as Compensation and benefits expense and Other operating expenses divided by Insurance premiums and service revenue earned and Other Income, net of losses.

1Q 2021 Preliminary Results |  | 11

ALLY FINANCIAL INC. MORTGAGE FINANCE - CONDENSED FINANCIAL STATEMENTS |  |

($ in millions)

|  | QUARTERLY TRENDS |  | CHANGE VS.
Income Statement |  | 1Q 21 |  | 4Q 20 |  | 3Q 20 |  | 2Q 20 |  | 1Q 20 |  | 4Q 20 |  | 1Q 20
Net financing revenue |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Total financing revenue and other interest income |  | $ | 93 |  |  | $ | 101 |  |  | $ | 121 |  |  | $ | 127 |  |  | $ | 138 |  |  | $ | (8 | ) |  | $ | (45 | )
Interest expense |  |  | 70 |  |  |  | 81 |  |  |  | 91 |  |  |  | 97 |  |  |  | 100 |  |  |  | (11 | ) |  |  | (30 | )
Net financing revenue |  |  | 23 |  |  |  | 20 |  |  |  | 30 |  |  |  | 30 |  |  |  | 38 |  |  |  | 3 |  |  |  | (15 | )
Gain on mortgage loans, net |  |  | 36 |  |  |  | 33 |  |  |  | 34 |  |  |  | 17 |  |  |  | 9 |  |  |  | 3 |  |  |  | 27 |
Other income, net of losses |  |  | 4 |  |  |  | 4 |  |  |  | 2 |  |  |  | 2 |  |  |  | 1 |  |  |  | - |  |  |  | 3 |
Total other revenue |  |  | 40 |  |  |  | 37 |  |  |  | 36 |  |  |  | 19 |  |  |  | 10 |  |  |  | 3 |  |  |  | 30 |
Total net revenue |  |  | 63 |  |  |  | 57 |  |  |  | 66 |  |  |  | 49 |  |  |  | 48 |  |  |  | 6 |  |  |  | 15 |
Provision for loan losses |  |  | (4 | ) |  |  | 3 |  |  |  | - |  |  |  | 3 |  |  |  | 1 |  |  |  | (7 | ) |  |  | (5 | )
Noninterest expense |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Compensation and benefits expense |  |  | 6 |  |  |  | 5 |  |  |  | 6 |  |  |  | 5 |  |  |  | 6 |  |  |  | 1 |  |  |  | - |
Other operating expense |  |  | 38 |  |  |  | 42 |  |  |  | 34 |  |  |  | 33 |  |  |  | 29 |  |  |  | (4 | ) |  |  | 9 |
Total noninterest expense |  |  | 44 |  |  |  | 47 |  |  |  | 40 |  |  |  | 38 |  |  |  | 35 |  |  |  | (3 | ) |  |  | 9 |
Pre-tax Income |  | $ | 23 |  |  | $ | 7 |  |  | $ | 26 |  |  | $ | 8 |  |  | $ | 12 |  |  | $ | 16 |  |  | $ | 11 |
Balance Sheet (Period-End) |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Finance receivables and loans, net: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Consumer loans |  | $ | 12,445 |  |  | $ | 14,632 |  |  | $ | 15,168 |  |  | $ | 16,429 |  |  | $ | 15,949 |  |  | $ | (2,187 | ) |  | $ | (3,504 | )
Allowance for loan losses |  |  | (16 | ) |  |  | (21 | ) |  |  | (20 | ) |  |  | (21 | ) |  |  | (18 | ) |  |  | 5 |  |  |  | 2 |
Total finance receivables and loans, net |  |  | 12,429 |  |  |  | 14,611 |  |  |  | 15,148 |  |  |  | 16,408 |  |  |  | 15,931 |  |  |  | (2,182 | ) |  |  | (3,502 | )
Other assets |  |  | 494 |  |  |  | 278 |  |  |  | 355 |  |  |  | 261 |  |  |  | 204 |  |  |  | 216 |  |  |  | 290 |
Total assets |  | $ | 12,923 |  |  | $ | 14,889 |  |  | $ | 15,503 |  |  | $ | 16,669 |  |  | $ | 16,135 |  |  | $ | (1,966 | ) |  | $ | (3,212 | )

1Q 2021 Preliminary Results |  | 12

ALLY FINANCIAL INC. CORPORATE FINANCE - CONDENSED FINANCIAL STATEMENTS |  |

($ in millions)

|  | QUARTERLY TRENDS |  | CHANGE VS.
Income Statement |  | 1Q 21 |  | 4Q 20 |  | 3Q 20 |  | 2Q 20 |  | 1Q 20 |  | 4Q 20 |  | 1Q 20
Net financing revenue |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Total financing revenue and other interest income |  | $ | 80 |  |  | $ | 89 |  |  | $ | 84 |  |  | $ | 92 |  |  | $ | 95 |  |  | $ | (9 | ) |  | $ | (15 | )
Interest expense |  |  | 9 |  |  |  | 10 |  |  |  | 9 |  |  |  | 15 |  |  |  | 27 |  |  |  | (1 | ) |  |  | (18 | )
Net financing revenue |  |  | 71 |  |  |  | 79 |  |  |  | 75 |  |  |  | 77 |  |  |  | 68 |  |  |  | (8 | ) |  |  | 3 |
Total other revenue (adjusted) (1) |  |  | 21 |  |  |  | 16 |  |  |  | 8 |  |  |  | 5 |  |  |  | 17 |  |  |  | 4 |  |  |  | 4 |
Total net revenue |  |  | 92 |  |  |  | 95 |  |  |  | 83 |  |  |  | 82 |  |  |  | 85 |  |  |  | (4 | ) |  |  | 7 |
Provision for loan losses |  |  | 13 |  |  |  | 9 |  |  |  | 1 |  |  |  | 25 |  |  |  | 114 |  |  |  | 4 |  |  |  | (101 | )
Noninterest expense |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Compensation and benefits expense |  |  | 20 |  |  |  | 14 |  |  |  | 13 |  |  |  | 14 |  |  |  | 21 |  |  |  | 6 |  |  |  | (1 | )
Other operating expense |  |  | 11 |  |  |  | 9 |  |  |  | 10 |  |  |  | 12 |  |  |  | 14 |  |  |  | 2 |  |  |  | (3 | )
Total noninterest expense |  |  | 31 |  |  |  | 23 |  |  |  | 23 |  |  |  | 26 |  |  |  | 35 |  |  |  | 8 |  |  |  | (4 | )
Core pre-tax income (1) |  |  | 48 |  |  |  | 63 |  |  |  | 59 |  |  |  | 31 |  |  |  | (64 | ) |  |  | (16 | ) |  |  | 112 |
Change in the fair value of equity securities (2) |  |  | 5 |  |  |  | 1 |  |  |  | 1 |  |  |  | 1 |  |  |  | (4 | ) |  |  | 5 |  |  |  | 9 |
Pre-tax Income / (loss) |  | $ | 53 |  |  | $ | 64 |  |  | $ | 60 |  |  | $ | 32 |  |  | $ | (68 | ) |  | $ | (11 | ) |  | $ | 121 |
Balance Sheet (Period-End) |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Equity securities |  | $ | 14 |  |  | $ | 7 |  |  | $ | 6 |  |  | $ | 5 |  |  | $ | 4 |  |  | $ | 7 |  |  | $ | 10 |
Loans held for sale |  |  | 229 |  |  |  | 205 |  |  |  | 207 |  |  |  | 265 |  |  |  | 133 |  |  |  | 24 |  |  |  | 96 |
Commercial loans |  |  | 6,285 |  |  |  | 6,006 |  |  |  | 5,883 |  |  |  | 6,031 |  |  |  | 6,549 |  |  |  | 279 |  |  |  | (264 | )
Allowance for loan losses |  |  | (187 | ) |  |  | (189 | ) |  |  | (180 | ) |  |  | (178 | ) |  |  | (191 | ) |  |  | 2 |  |  |  | 4 |
Total finance receivables and loans, net |  |  | 6,098 |  |  |  | 5,817 |  |  |  | 5,703 |  |  |  | 5,853 |  |  |  | 6,358 |  |  |  | 281 |  |  |  | (260 | )
Other assets |  |  | 80 |  |  |  | 79 |  |  |  | 79 |  |  |  | 83 |  |  |  | 77 |  |  |  | 1 |  |  |  | 3 |
Total assets |  | $ | 6,421 |  |  | $ | 6,108 |  |  | $ | 5,995 |  |  | $ | 6,206 |  |  | $ | 6,572 |  |  | $ | 313 |  |  | $ | (151 | )

(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 1/1/2018 in which such adjustments were recognized through other comprehensive income, a component of equity. See page 21 for more details.

(2) 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 1/1/2018 in which such adjustments were recognized through other comprehensive income, a component of equity.

1Q 2021 Preliminary Results |  | 13

ALLY FINANCIAL INC. CORPORATE AND OTHER - CONDENSED FINANCIAL STATEMENTS |  |

($ in millions)

|  | QUARTERLY TRENDS |  | CHANGE VS.
Income Statement |  | 1Q 21 |  | 4Q 20 |  | 3Q 20 |  | 2Q 20 |  | 1Q 20 |  | 4Q 20 |  | 1Q 20
Net financing revenue |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Total financing revenue and other interest income |  | $ | 108 |  |  | $ | 115 |  |  | $ | 144 |  |  | $ | 158 |  |  | $ | 207 |  |  | $ | (7 | ) |  | $ | (99 | )
Interest expense |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Core original issue discount amortization |  |  | 10 |  |  |  | 9 |  |  |  | 9 |  |  |  | 9 |  |  |  | 8 |  |  |  | - |  |  |  | 1 |
Other interest expense |  |  | 41 |  |  |  | 63 |  |  |  | 150 |  |  |  | 203 |  |  |  | 213 |  |  |  | (21 | ) |  |  | (171 | )
Total interest expense |  |  | 51 |  |  |  | 72 |  |  |  | 159 |  |  |  | 212 |  |  |  | 221 |  |  |  | (21 | ) |  |  | (170 | )
Net financing revenue / (loss) |  |  | 57 |  |  |  | 43 |  |  |  | (15 | ) |  |  | (54 | ) |  |  | (14 | ) |  |  | 14 |  |  |  | 71 |
Other revenue |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Loss on extinguishment of debt |  |  | (1 | ) |  |  | (52 | ) |  |  | (49 | ) |  |  | (1 | ) |  |  | (0 | ) |  |  | 51 |  |  |  | (1 | )
Other gain on investments, net |  |  | 20 |  |  |  | 1 |  |  |  | 5 |  |  |  | 15 |  |  |  | 67 |  |  |  | 19 |  |  |  | (47 | )
Gain/(loss) on mortgage and automotive loans, net |  |  | - |  |  |  | 42 |  |  |  | (1 | ) |  |  | (3 | ) |  |  | (21 | ) |  |  | (42 | ) |  |  | 21 |
Other income, net of losses (1) |  |  | 39 |  |  |  | 156 |  |  |  | 85 |  |  |  | 41 |  |  |  | 13 |  |  |  | (117 | ) |  |  | 26 |
Total other revenue |  |  | 58 |  |  |  | 147 |  |  |  | 40 |  |  |  | 52 |  |  |  | 59 |  |  |  | (89 | ) |  |  | (1 | )
Total net revenue |  |  | 115 |  |  |  | 190 |  |  |  | 25 |  |  |  | (2 | ) |  |  | 45 |  |  |  | (75 | ) |  |  | 70 |
Provision for loan losses |  |  | - |  |  |  | 4 |  |  |  | 18 |  |  |  | 3 |  |  |  | 22 |  |  |  | (4 | ) |  |  | (22 | )
Noninterest expense |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Compensation and benefits expense |  |  | 202 |  |  |  | 167 |  |  |  | 168 |  |  |  | 162 |  |  |  | 164 |  |  |  | 35 |  |  |  | 38 |
Goodwill impairment |  |  | - |  |  |  | - |  |  |  | - |  |  |  | 50 |  |  |  | - |  |  |  | - |  |  |  | - |
Other operating expense (2) |  |  | (74 | ) |  |  | (20 | ) |  |  | (63 | ) |  |  | (57 | ) |  |  | (64 | ) |  |  | (54 | ) |  |  | (10 | )
Total noninterest expense |  |  | 128 |  |  |  | 147 |  |  |  | 105 |  |  |  | 155 |  |  |  | 100 |  |  |  | (19 | ) |  |  | 28 |
Pre-tax (loss) income |  | $ | (13 | ) |  | $ | 39 |  |  | $ | (98 | ) |  | $ | (160 | ) |  | $ | (77 | ) |  | $ | (52 | ) |  | $ | 64 |
Balance Sheet (Period-End) |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Cash, trading and investment securities |  | $ | 45,746 |  |  | $ | 42,324 |  |  | $ | 45,775 |  |  | $ | 44,411 |  |  | $ | 32,560 |  |  | $ | 3,422 |  |  | $ | 13,186 |
Loans held-for-sale |  |  | 117 |  |  |  | 110 |  |  |  | 78 |  |  |  | 48 |  |  |  | 34 |  |  |  | 7 |  |  |  | 83 |
Consumer loans |  |  | 1,120 |  |  |  | 1,127 |  |  |  | 1,508 |  |  |  | 1,558 |  |  |  | 1,654 |  |  |  | (7 | ) |  |  | (534 | )
Commercial loans |  |  | 192 |  |  |  | 185 |  |  |  | 131 |  |  |  | 130 |  |  |  | 134 |  |  |  | 7 |  |  |  | 58 |
Intercompany loans(3) |  |  | (591 | ) |  |  | (830 | ) |  |  | - |  |  |  | - |  |  |  | - |  |  |  | 239 |  |  |  | (591 | )
Allowance for loan losses |  |  | (82 | ) |  |  | (87 | ) |  |  | (87 | ) |  |  | (71 | ) |  |  | (68 | ) |  |  | 5 |  |  |  | (14 | )
Total finance receivables and loans, net |  |  | 639 |  |  |  | 395 |  |  |  | 1,552 |  |  |  | 1,617 |  |  |  | 1,720 |  |  |  | 244 |  |  |  | (1,081 | )
Other assets |  |  | 5,246 |  |  |  | 4,408 |  |  |  | 4,057 |  |  |  | 4,354 |  |  |  | 5,532 |  |  |  | 838 |  |  |  | (286 | )
Total assets |  | $ | 51,748 |  |  | $ | 47,237 |  |  | $ | 51,462 |  |  | $ | 50,430 |  |  | $ | 39,846 |  |  | $ | 4,511 |  |  | $ | 11,902 |
Core OID Amortization Schedule (4) |  | 2021 |  | 2022 |  | 2023 |  | 2024 |  | 2025 & After |  |  |  |
Remaining Core OID amortization expense |  | $ | 29 |  |  | $ | 45 |  |  | $ | 52 |  |  | $ | 60 |  |  |  | Avg = $52/yr |  |  |  |  |  |  |  |  |

(1) Includes the impact of centralized asset and liability management, corporate overhead allocation activities, the legacy mortgage portfolio, Ally Invest activity, and Ally Lending activity.

(2) Other operating expenses includes corporate overhead allocated to the other business segments. Amounts of corporate overhead allocated were $257 million for 1Q21, $254 million for 4Q20, $234 million for 3Q20, $242 million for 2Q20 and $256 million for 1Q20. The receiving business segment records the allocation of corporate overhead expense within other operating expenses.

(3) Intercompany loan related to activity between Insurance and Corporate for liquidity purposes.

(4) Represents a non-GAAP financial measure. For more details refer to page 21.

1Q 2021 Preliminary Results |  | 14

ALLY FINANCIAL INC. CREDIT RELATED INFORMATION |  |

($ in millions)

|  | QUARTERLY TRENDS |  | CHANGE VS.
Asset Quality - Consolidated (1) |  | 1Q 21 |  | 4Q 20 |  | 3Q 20 |  | 2Q 20 |  | 1Q 20 |  | 4Q 20 |  | 1Q 20
Ending loan balance |  | $ | 113,068 |  |  | $ | 118,526 |  |  | $ | 118,020 |  |  | $ | 118,226 |  |  | $ | 128,129 |  |  | $ | (5,458 | ) |  | $ | (15,061 | )
30+ Accruing DPD |  | $ | 1,122 |  |  | $ | 1,914 |  |  | $ | 1,840 |  |  | $ | 1,695 |  |  | $ | 2,416 |  |  | $ | (792 | ) |  | $ | (1,294 | )
30+ Accruing DPD % |  |  | 0.99% |  |  |  | 1.61% |  |  |  | 1.56% |  |  |  | 1.43% |  |  |  | 1.89% |  |  |  |  |  |  |  |  |
60+ Accruing DPD |  | $ | 244 |  |  | $ | 438 |  |  | $ | 366 |  |  | $ | 349 |  |  | $ | 489 |  |  | $ | (194 | ) |  | $ | (245 | )
60+ Accruing DPD % |  |  | 0.22% |  |  |  | 0.37% |  |  |  | 0.31% |  |  |  | 0.30% |  |  |  | 0.38% |  |  |  |  |  |  |  |  |
Non-performing loans (NPLs) |  | $ | 1,439 |  |  | $ | 1,522 |  |  | $ | 1,493 |  |  | $ | 1,532 |  |  | $ | 1,396 |  |  | $ | (83 | ) |  | $ | 43 |
Net charge-offs (NCOs) |  | $ | 118 |  |  | $ | 198 |  |  | $ | 122 |  |  | $ | 178 |  |  | $ | 266 |  |  | $ | (80 | ) |  | $ | (148 | )
Net charge-off rate (2) |  |  | 0.41% |  |  |  | 0.67% |  |  |  | 0.41% |  |  |  | 0.58% |  |  |  | 0.84% |  |  |  |  |  |  |  |  |
Provision for loan losses |  | $ | (13 | ) |  | $ | 102 |  |  | $ | 147 |  |  | $ | 287 |  |  | $ | 903 |  |  | $ | (115 | ) |  | $ | (916 | )
Allowance for loan losses (ALLL) |  | $ | 3,152 |  |  | $ | 3,283 |  |  | $ | 3,379 |  |  | $ | 3,354 |  |  | $ | 3,245 |  |  | $ | (131 | ) |  | $ | (93 | )
ALLL as % of Loans (3) (4) |  |  | 2.79% |  |  |  | 2.78% |  |  |  | 2.87% |  |  |  | 2.85% |  |  |  | 2.54% |  |  |  |  |  |  |  |  |
ALLL as % of NPLs (3) |  |  | 219% |  |  |  | 216% |  |  |  | 226% |  |  |  | 219% |  |  |  | 232% |  |  |  |  |  |  |  |  |
ALLL as % of NCOs (3) |  |  | 667% |  |  |  | 414% |  |  |  | 691% |  |  |  | 471% |  |  |  | 305% |  |  |  |  |  |  |  |  |
US Auto Delinquencies - HFI Retail Contract $‘s |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
30+ Delinquent contract $ |  | $ | 1,059 |  |  | $ | 1,834 |  |  | $ | 1,658 |  |  | $ | 1,599 |  |  | $ | 2,322 |  |  | $ | (775 | ) |  | $ | (1,263 | )
% of retail contract $ outstanding |  |  | 1.43% |  |  |  | 2.49% |  |  |  | 2.25% |  |  |  | 2.20% |  |  |  | 3.19% |  |  |  |  |  |  |  |  |
60+ Delinquent contract $ |  | $ | 233 |  |  | $ | 428 |  |  | $ | 350 |  |  | $ | 341 |  |  | $ | 478 |  |  |  |  |  |  |  |  |
% of retail contract $ outstanding |  |  | 0.32% |  |  |  | 0.58% |  |  |  | 0.47% |  |  |  | 0.47% |  |  |  | 0.66% |  |  |  |  |  |  |  |  |
U.S. Auto Annualized Net Charge-Offs - HFI Retail Contract $‘s |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Net charge-offs |  | $ | 97 |  |  | $ | 186 |  |  | $ | 117 |  |  | $ | 137 |  |  | $ | 262 |  |  | $ | (89 | ) |  | $ | (165 | )
% of avg. HFI assets (2) |  |  | 0.53% |  |  |  | 1.01% |  |  |  | 0.64% |  |  |  | 0.76% |  |  |  | 1.44% |  |  |  |  |  |  |  |  |
U.S. Auto Annualized Net Charge-Offs - HFI Commercial Contract $‘s |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Net charge-offs |  | $ | 0 |  |  | $ | 7 |  |  | $ | 4 |  |  | $ | 1 |  |  | $ | 2 |  |  | $ | (7 | ) |  | $ | (2 | )
% of avg. HFI assets (2) |  |  | -% |  |  |  | 0.12% |  |  |  | 0.07% |  |  |  | 0.02% |  |  |  | 0.03% |  |  |  |  |  |  |  |  |

(1) Loans within this table are classified as held-for-investment recorded at amortized cost as these loans are included in our allowance for loan losses.

(2) Net charge-off ratios are calculated as annualized net charge-offs divided by average outstanding finance recievables and loans excluding loans measured at fair value, conditional repurchase loans and loans held-for-sale during the year for each loan category.

(3) ALLL coverage ratios are based on the allowance for loan losses related to loans held-for-investment excluding those loans held at fair value as a percentage of the unpaid principal balance, net of premiums and discounts.

(4) Excludes $173 million of fair value adjustment for loans in hedge accounting relationships in 1Q21, $225 million in 4Q20, $277 million in 3Q20, $334 million in 2Q20 and $370 million in 1Q20.

1Q 2021 Preliminary Results |  | 15

ALLY FINANCIAL INC. CREDIT RELATED INFORMATION, CONTINUED |  |

($ in millions)

Automotive Finance (1) |  | QUARTERLY TRENDS |  | CHANGE VS.
Consumer |  | 1Q 21 |  | 4Q 20 |  | 3Q 20 |  | 2Q 20 |  | 1Q 20 |  | 4Q 20 |  | 1Q 20
Allowance for loan losses |  | $ | 2,809 |  |  | $ | 2,902 |  |  | $ | 2,982 |  |  | $ | 2,963 |  |  | $ | 2,833 |  |  | $ | (93 | ) |  | $ | (24 | )
Total consumer loans (2) |  | $ | 73,998 |  |  | $ | 73,668 |  |  | $ | 73,761 |  |  | $ | 72,712 |  |  | $ | 72,832 |  |  | $ | 330 |  |  | $ | 1,166 |
Coverage ratio (3) |  |  | 3.80% |  |  |  | 3.95% |  |  |  | 4.06% |  |  |  | 4.09% |  |  |  | 3.91% |  |  |  |  |  |  |  |  |
Commercial |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Allowance for loan losses |  | $ | 58 |  |  | $ | 84 |  |  | $ | 110 |  |  | $ | 121 |  |  | $ | 135 |  |  | $ | (26) |  |  | $ | (77) |
Total commercial loans |  | $ | 19,208 |  |  | $ | 23,141 |  |  | $ | 21,854 |  |  | $ | 21,708 |  |  | $ | 31,390 |  |  | $ | (3,933) |  |  | $ | (12,182) |
Coverage ratio |  |  | 0.30% |  |  |  | 0.36% |  |  |  | 0.51% |  |  |  | 0.56% |  |  |  | 0.43% |  |  |  |  |  |  |  |  |
Mortgage (1) |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Consumer |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Mortgage Finance |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Allowance for loan losses |  | $ | 16 |  |  | $ | 21 |  |  | $ | 20 |  |  | $ | 21 |  |  | $ | 18 |  |  | $ | (5 | ) |  | $ | (2) |
Total consumer loans |  | $ | 12,445 |  |  | $ | 14,632 |  |  | $ | 15,168 |  |  | $ | 16,429 |  |  | $ | 15,949 |  |  | $ | (2,187 | ) |  | $ | (3,504) |
Coverage ratio |  |  | 0.13% |  |  |  | 0.15% |  |  |  | 0.13% |  |  |  | 0.13% |  |  |  | 0.11% |  |  |  |  |  |  |  |  |
Mortgage - Legacy |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Allowance for loan losses |  | $ | 10 |  |  | $ | 12 |  |  | $ | 19 |  |  | $ | 21 |  |  | $ | 21 |  |  | $ | (2) |  |  | $ | (11) |
Total consumer loans |  | $ | 458 |  |  | $ | 495 |  |  | $ | 904 |  |  | $ | 984 |  |  | $ | 1,061 |  |  | $ | (37) |  |  | $ | (603) |
Coverage ratio |  |  | 2.19% |  |  |  | 2.40% |  |  |  | 2.09% |  |  |  | 2.08% |  |  |  | 1.99% |  |  |  |  |  |  |  |  |
Total Mortgage |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Allowance for loan losses |  | $ | 26 |  |  | $ | 33 |  |  | $ | 39 |  |  | $ | 42 |  |  | $ | 39 |  |  | $ | (7 | ) |  | $ | (13 | )
Total consumer loans |  | $ | 12,903 |  |  | $ | 15,127 |  |  | $ | 16,072 |  |  | $ | 17,413 |  |  | $ | 17,010 |  |  | $ | (2,224 | ) |  | $ | (4,107 | )
Coverage ratio |  |  | 0.20% |  |  |  | 0.22% |  |  |  | 0.24% |  |  |  | 0.24% |  |  |  | 0.23% |  |  |  |  |  |  |  |  |
Consumer Other (1)(4) |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Allowance for loan losses |  | $ | 69 |  |  | $ | 73 |  |  | $ | 67 |  |  | $ | 49 |  |  | $ | 45 |  |  | $ | (4 | ) |  | $ | 24 |
Total consumer loans |  | $ | 482 |  |  | $ | 399 |  |  | $ | 319 |  |  | $ | 232 |  |  | $ | 214 |  |  | $ | 83 |  |  | $ | 268 |
Coverage ratio |  |  | 14.33% |  |  |  | 18.38% |  |  |  | 20.93% |  |  |  | 21.06% |  |  |  | 21.23% |  |  |  |  |  |  |  |  |
Corporate Finance (1) |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Allowance for loan losses |  | $ | 187 |  |  | $ | 189 |  |  | $ | 180 |  |  | $ | 178 |  |  | $ | 191 |  |  | $ | (2 | ) |  | $ | (4) |
Total commercial loans |  | $ | 6,285 |  |  | $ | 6,006 |  |  | $ | 5,883 |  |  | $ | 6,031 |  |  | $ | 6,549 |  |  | $ | 279 |  |  | $ | (264) |
Coverage ratio |  |  | 2.98% |  |  |  | 3.14% |  |  |  | 3.05% |  |  |  | 2.95% |  |  |  | 2.92% |  |  |  |  |  |  |  |  |
Corporate and Other (1) |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Allowance for loan losses |  | $ | 3 |  |  | $ | 2 |  |  | $ | 1 |  |  | $ | 1 |  |  | $ | 2 |  |  | $ | 1 |  |  | $ | 1 |
Total commercial loans |  | $ | 192 |  |  | $ | 185 |  |  | $ | 131 |  |  | $ | 130 |  |  | $ | 134 |  |  | $ | 7 |  |  | $ | 58 |
Coverage ratio |  |  | 1.36% |  |  |  | 1.36% |  |  |  | 1.13% |  |  |  | 1.13% |  |  |  | 1.36% |  |  |  |  |  |  |  |  |

(1) ALLL coverage ratios are based on the domestic allowance as a percentage of finance receivables and loans reported at their gross carrying value, which includes the principal amount outstanding, net of unearned income, unamortized deferred fees reduced by costs on originated loans, unamortized premiums and discounts on purchased loans, unamortized basis adjustments arising from the designation of finance receivables and loans as the hedged item in qualifying fair value hedge relationships, and cumulative principal charge-offs. Excludes loans held at fair value.

(2) Includes $173 million of fair value adjustment for loans in hedge accounting relationships in 1Q21, $225 million in 4Q20, $277 million in 3Q20, $334 million in 2Q20 and $370 million in 1Q20.

(3) Excludes $173 million of fair value adjustment for loans in hedge accounting relationships in 1Q21, $225 million in 4Q20, $277 million in 3Q20, $334 million in 2Q20 and $370 million in 1Q20.

(4) Represents Health Credit Services (HCS) which Ally acquired in 4Q19 (now Ally Lending).

1Q 2021 Preliminary Results |  | 16

ALLY FINANCIAL INC. CAPITAL |  |

($ in billions)

|  | QUARTERLY TRENDS |  | CHANGE VS.
Capital |  | 1Q 21 |  | 4Q 20 |  | 3Q 20 |  | 2Q 20 |  | 1Q 20 |  | 4Q 20 |  | 1Q 20
Risk-weighted assets |  | $ | 138.8 |  |  | $ | 139.8 |  |  | $ | 137.6 |  |  | $ | 137.0 |  |  | $ | 146.1 |  |  | $ | (1.0 | ) |  | $ | (7.3 | )
Common Equity Tier 1 (CET1) capital ratio |  |  | 11.1% |  |  |  | 10.6% |  |  |  | 10.4% |  |  |  | 10.1% |  |  |  | 9.3% |  |  |  |  |  |  |  |  |
Tier 1 capital ratio |  |  | 12.8% |  |  |  | 12.4% |  |  |  | 12.1% |  |  |  | 11.9% |  |  |  | 10.9% |  |  |  |  |  |  |  |  |
Total capital ratio |  |  | 14.6% |  |  |  | 14.1% |  |  |  | 14.1% |  |  |  | 13.8% |  |  |  | 12.8% |  |  |  |  |  |  |  |  |
Tangible common equity / Tangible assets (1)(2) |  |  | 7.8% |  |  |  | 7.9% |  |  |  | 7.4% |  |  |  | 7.3% |  |  |  | 7.2% |  |  |  |  |  |  |  |  |
Tangible common equity / Risk-weighted assets (1) |  |  | 10.3% |  |  |  | 10.2% |  |  |  | 10.0% |  |  |  | 9.8% |  |  |  | 9.0% |  |  |  |  |  |  |  |  |
Shareholders’ equity |  | $ | 14.6 |  |  | $ | 14.7 |  |  | $ | 14.1 |  |  | $ | 13.8 |  |  | $ | 13.5 |  |  | $ | (0.1 | ) |  | $ | 1.1 |
add: CECL phase-in adjustment |  |  | 1.2 |  |  |  | 1.2 |  |  |  | 1.2 |  |  |  | 1.2 |  |  |  | 1.2 |  |  |  | - |  |  |  | - |
less:   Certain AOCI items and other adjustments |  |  | (0.4 | ) |  |  | (1.0 | ) |  |  | (1.1 | ) |  |  | (1.2 | ) |  |  | (1.2 | ) |  |  | 0.6 |  |  |  | 0.8 |
Common Equity Tier 1 capital |  | $ | 15.4 |  |  | $ | 14.9 |  |  | $ | 14.3 |  |  | $ | 13.8 |  |  | $ | 13.5 |  |  | $ | 0.5 |  |  | $ | 1.9 |
Common Equity Tier 1 capital |  | $ | 15.4 |  |  | $ | 14.9 |  |  | $ | 14.3 |  |  | $ | 13.8 |  |  | $ | 13.5 |  |  | $ | 0.5 |  |  | $ | 1.9 |
add: Trust preferred securities |  |  | 2.5 |  |  |  | 2.5 |  |  |  | 2.5 |  |  |  | 2.5 |  |  |  | 2.5 |  |  |  | - |  |  |  | - |
less:   Other adjustments |  |  | (0.1 | ) |  |  | (0.1 | ) |  |  | (0.1 | ) |  |  | (0.1 | ) |  |  | (0.1 | ) |  |  | - |  |  |  | - |
Tier 1 capital |  | $ | 17.8 |  |  | $ | 17.3 |  |  | $ | 16.7 |  |  | $ | 16.2 |  |  | $ | 16.0 |  |  | $ | 0.5 |  |  | $ | 1.8 |
Tier 1 capital |  | $ | 17.8 |  |  | $ | 17.3 |  |  | $ | 16.7 |  |  | $ | 16.2 |  |  | $ | 16.0 |  |  | $ | 0.5 |  |  | $ | 1.8 |
add: Qualifying subordinated debt |  |  | 0.8 |  |  |  | 0.8 |  |  |  | 1.0 |  |  |  | 1.0 |  |  |  | 1.0 |  |  |  | - |  |  |  | (0.2 | )
add: Allowance for loan and lease losses includible in Tier 2 capital and other adjustments |  |  | 1.6 |  |  |  | 1.7 |  |  |  | 1.6 |  |  |  | 1.6 |  |  |  | 1.7 |  |  |  | (0.1 | ) |  |  | (0.1 | )
Total capital |  | $ | 20.2 |  |  | $ | 19.8 |  |  | $ | 19.3 |  |  | $ | 18.9 |  |  | $ | 18.6 |  |  | $ | 0.4 |  |  | $ | 1.6 |
Total shareholders’ equity |  | $ | 14.6 |  |  | $ | 14.7 |  |  | $ | 14.1 |  |  | $ | 13.8 |  |  | $ | 13.5 |  |  | $ | (0.1 | ) |  | $ | 1.1 |
Goodwill and intangible assets, net of deferred tax liabilities |  |  | (0.4 | ) |  |  | (0.4 | ) |  |  | (0.4 | ) |  |  | (0.4 | ) |  |  | (0.4 | ) |  |  | - |  |  |  | - |
Tangible common equity (1) |  | $ | 14.2 |  |  | $ | 14.3 |  |  | $ | 13.7 |  |  | $ | 13.4 |  |  | $ | 13.1 |  |  | $ | (0.1 | ) |  | $ | 1.1 |
Total assets |  | $ | 181.9 |  |  | $ | 182.2 |  |  | $ | 185.3 |  |  | $ | 184.1 |  |  | $ | 182.5 |  |  | $ | (0.3 | ) |  | $ | (0.6 | )
less:   Goodwill and intangible assets, net of deferred tax liabilities |  |  | (0.4 | ) |  |  | (0.4 | ) |  |  | (0.4 | ) |  |  | (0.4 | ) |  |  | (0.4 | ) |  |  | - |  |  |  | - |
Tangible assets (2) |  | $ | 181.5 |  |  | $ | 181.8 |  |  | $ | 184.9 |  |  | $ | 183.7 |  |  | $ | 182.1 |  |  | $ | (0.3 | ) |  | $ | (0.6 | )

Note: Numbers may not foot due to rounding

(1) Represents a non-GAAP financial measure. 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 tax-effected Core OID balance and net deferred tax asset.

(2) Represents a non-GAAP financial measure. Ally defines tangible assets as total assets less goodwill and intangible assets, net of deferred tax liabilities.

In December 2018, the FRB and other U.S. banking agencies approved a final rule to address the impact of CECL on regulatory capital by allowing BHCs and banks, including Ally, the option to phase in the day-one impact of CECL over a three-year period. In March 2020, the FRB and other U.S. banking agencies issued an interim final rule that became effective on March 31, 2020, and provided an alternative option for banks to temporarily delay the impacts of CECL, relative to the incurred loss methodology for estimating the allowance for loan losses, on regulatory capital. A final rule that was largely unchanged from the March 2020 interim final rule was issued by the FRB and other U.S. banking agencies in August 2020, and became effective in September 2020. For regulatory capital purposes, these rules permitted us to delay recognizing the estimated impact of CECL on regulatory capital until after a two-year deferral period, which for us extends through December 31, 2021. Beginning on January 1, 2022, we will be required to phase in 25% of the previously deferred estimated capital impact of CECL, with an additional 25% to be phased in at the beginning of each subsequent year until fully phased in by the first quarter of 2025. Under these rules, firms that adopt CECL and elect the five-year transition will calculate the estimated impact of CECL on regulatory capital as the day-one impact of adoption plus 25% of the subsequent change in allowance during the two-year deferral period, which according to the final rule approximates the impact of CECL relative to an incurred loss model. We adopted this transition option during the first quarter of 2020, and plan to phase in the regulatory capital impacts of CECL based on this five-year transition period.

1Q 2021 Preliminary Results |  | 17

ALLY FINANCIAL INC. LIQUIDITY |  |

($ in billions)

|  | QUARTERLY TRENDS |  | CHANGE VS.
Consolidated Available Liquidity |  | 1Q 21 |  | 4Q 20 |  | 3Q 20 |  | 2Q 20 |  | 1Q 20 |  | 4Q 20 |  | 1Q 20
Liquid cash and cash equivalents (1) |  | $ | 15.2 |  |  | $ | 14.9 |  |  | $ | 19.3 |  |  | $ | 18.6 |  |  | $ | 5.7 |  |  | $ | 0.3 |  |  | $ | 9.5 |
Highly liquid securities (2) |  |  | 28.0 |  |  |  | 24.8 |  |  |  | 23.5 |  |  |  | 23.4 |  |  |  | 24.0 |  |  |  | 3.2 |  |  |  | 4.0 |
Current committed unused capacity |  |  | 0.4 |  |  |  | 0.6 |  |  |  | 1.4 |  |  |  | 1.6 |  |  |  | 0.4 |  |  |  | -0.2 |  |  |  | -0.0 |
Total current available liquidity |  | $ | 43.6 |  |  | $ | 40.3 |  |  | $ | 44.2 |  |  | $ | 43.5 |  |  | $ | 30.1 |  |  | $ | 3.3 |  |  | $ | 13.5 |
Unsecured Long-Term Debt Maturity Profile |  | 2021 |  | 2022 |  | 2023 |  | 2024 |  | 2025 |  | 2026 & After |  |
Consolidated remaining maturities (3) |  | $ | 0.6 |  |  | $ | 1.1 |  |  | $ | 2.0 |  |  | $ | 1.5 |  |  | $ | 2.3 |  |  | $ | 2.5 |  |  |  |  |

(1) May include the restricted cash accumulation for retained notes maturing within the following 30 days and returned to Ally on the distribution date

(2) Includes unencumbered UST, Agency debt, Agency MBS, and highly liquid Corporates

(3) Excludes retail notes and trust preferred securities; as of 3/31/2021. Reflects notional value of outstanding bond. Excludes total GAAP OID and capitalized transaction costs.

1Q 2021 Preliminary Results |  | 18

ALLY FINANCIAL INC. NET INTEREST MARGIN AND DEPOSITS |  |

($ in millions)

|  | QUARTERLY TRENDS |  | CHANGE VS.
Average Balance Details |  | 1Q 21 |  | 4Q 20 |  | 3Q 20 |  | 2Q 20 |  | 1Q 20 |  | 4Q 20 |  | 1Q 20
Retail Auto Loans |  | $ | 73,500 |  |  | $ | 73,401 |  |  | $ | 72,999 |  |  | $ | 72,262 |  |  | $ | 72,550 |  |  | $ | 99 |  |  | $ | 950 |
Auto Lease (net of dep) |  |  | 9,831 |  |  |  | 9,587 |  |  |  | 9,317 |  |  |  | 9,068 |  |  |  | 9,078 |  |  |  | 244 |  |  |  | 753 |
Commercial Auto |  |  | 21,341 |  |  |  | 22,418 |  |  |  | 21,265 |  |  |  | 26,106 |  |  |  | 30,472 |  |  |  | (1,077 | ) |  |  | (9,131 | )
Corporate Finance |  |  | 6,338 |  |  |  | 6,203 |  |  |  | 6,188 |  |  |  | 6,580 |  |  |  | 6,088 |  |  |  | 135 |  |  |  | 250 |
Mortgage(1) |  |  | 14,310 |  |  |  | 15,445 |  |  |  | 17,096 |  |  |  | 17,422 |  |  |  | 17,296 |  |  |  | (1,135 | ) |  |  | (2,986 | )
Consumer Other(2) |  |  | 444 |  |  |  | 366 |  |  |  | 285 |  |  |  | 221 |  |  |  | 225 |  |  |  | 78 |  |  |  | 219 |
Cash and Cash equivalents |  |  | 15,363 |  |  |  | 17,758 |  |  |  | 20,719 |  |  |  | 12,496 |  |  |  | 4,853 |  |  |  | (2,395 | ) |  |  | 10,510 |
Investment Securities and Other |  |  | 34,996 |  |  |  | 33,331 |  |  |  | 32,244 |  |  |  | 32,375 |  |  |  | 32,858 |  |  |  | 1,665 |  |  |  | 2,138 |
Total Earning Assets |  | $ | 176,123 |  |  | $ | 178,509 |  |  | $ | 180,113 |  |  | $ | 176,530 |  |  | $ | 173,420 |  |  | $ | (2,386) |  |  | $ | 2,703 |
Interest Revenue |  |  | 1,929 |  |  |  | 1,947 |  |  |  | 1,970 |  |  |  | 1,926 |  |  |  | 2,103 |  |  |  | (18 | ) |  |  | (174 | )
Unsecured Debt (ex. Core OID balance) (3)(6) |  | $ | 12,910 |  |  | $ | 12,735 |  |  | $ | 12,315 |  |  | $ | 11,627 |  |  | $ | 12,182 |  |  | $ | 175 |  |  | $ | 728 |
Secured Debt |  |  | 3,793 |  |  |  | 5,289 |  |  |  | 6,154 |  |  |  | 8,122 |  |  |  | 9,193 |  |  |  | (1,496 | ) |  |  | (5,400 | )
Deposits (4) |  |  | 137,718 |  |  |  | 135,642 |  |  |  | 132,964 |  |  |  | 127,014 |  |  |  | 121,217 |  |  |  | 2,076 |  |  |  | 16,501 |
Other Borrowings (5) |  |  | 6,307 |  |  |  | 9,462 |  |  |  | 14,427 |  |  |  | 16,567 |  |  |  | 17,302 |  |  |  | (3,155 | ) |  |  | (10,995 | )
Total Funding Sources (ex. Core OID balance) (3) |  | $ | 160,728 |  |  | $ | 163,128 |  |  | $ | 165,860 |  |  | $ | 163,330 |  |  | $ | 159,894 |  |  | $ | (2,400 | ) |  | $ | 834 |
Interest Expense (ex. Core OID) (3) |  |  | 547 |  |  |  | 635 |  |  |  | 761 |  |  |  | 863 |  |  |  | 949 |  |  |  | (88 | ) |  |  | (402 | )
Net Financing Revenue (ex. Core OID) (3) |  | $ | 1,382 |  |  | $ | 1,312 |  |  | $ | 1,209 |  |  | $ | 1,063 |  |  | $ | 1,154 |  |  | $ | 70 |  |  | $ | 228 |
Net Interest Margin (yield details) |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Retail Auto Loan |  |  | 6.66% |  |  |  | 6.57% |  |  |  | 6.56% |  |  |  | 6.48% |  |  |  | 6.54% |  |  |  | 0.09% |  |  |  | 0.12% |
Retail Auto Loan (excl. hedge impacts) |  |  | 6.90% |  |  |  | 6.83% |  |  |  | 6.83% |  |  |  | 6.77% |  |  |  | 6.66% |  |  |  | 0.07% |  |  |  | 0.24% |
Auto Lease (net of dep) |  |  | 8.57% |  |  |  | 7.82% |  |  |  | 7.89% |  |  |  | 4.10% |  |  |  | 5.22% |  |  |  | 0.75% |  |  |  | 3.35% |
Commercial Auto |  |  | 3.49% |  |  |  | 3.34% |  |  |  | 3.30% |  |  |  | 3.55% |  |  |  | 4.11% |  |  |  | 0.15% |  |  |  | (0.62)% |
Corporate Finance |  |  | 5.14% |  |  |  | 5.69% |  |  |  | 5.40% |  |  |  | 5.64% |  |  |  | 6.27% |  |  |  | (0.55)% |  |  |  | (1.13)% |
Mortgage |  |  | 2.74% |  |  |  | 2.74% |  |  |  | 3.00% |  |  |  | 3.15% |  |  |  | 3.45% |  |  |  | -% |  |  |  | (0.71)% |
Consumer Other |  |  | 14.95% |  |  |  | 16.68% |  |  |  | 17.77% |  |  |  | 14.09% |  |  |  | 13.52% |  |  |  | (1.73)% |  |  |  | 1.43% |
Cash and Cash Equivalents |  |  | 0.10% |  |  |  | 0.10% |  |  |  | 0.11% |  |  |  | 0.12% |  |  |  | 1.16% |  |  |  | -% |  |  |  | (1.06)% |
Investment Securities and Other |  |  | 1.55% |  |  |  | 1.70% |  |  |  | 2.14% |  |  |  | 2.47% |  |  |  | 2.79% |  |  |  | (0.15)% |  |  |  | (1.24)% |
Total Earning Assets |  |  | 4.44% |  |  |  | 4.34% |  |  |  | 4.35% |  |  |  | 4.39% |  |  |  | 4.88% |  |  |  | 0.10% |  |  |  | (0.44)% |
Unsecured Debt (ex. Core OID & Core OID balance) (2)(5) |  |  | 5.42% |  |  |  | 5.45% |  |  |  | 5.74% |  |  |  | 6.11% |  |  |  | 6.32% |  |  |  | (0.03)% |  |  |  | (0.90)% |
Secured Debt |  |  | 3.35% |  |  |  | 3.07% |  |  |  | 2.94% |  |  |  | 2.64% |  |  |  | 2.82% |  |  |  | 0.28% |  |  |  | 0.53% |
Deposits (3) |  |  | 0.90% |  |  |  | 1.08% |  |  |  | 1.35% |  |  |  | 1.72% |  |  |  | 1.97% |  |  |  | (0.18)% |  |  |  | (1.07)% |
Other Borrowings(4) |  |  | 2.47% |  |  |  | 2.18% |  |  |  | 2.36% |  |  |  | 2.25% |  |  |  | 2.34% |  |  |  | 0.29% |  |  |  | 0.13% |
Total Funding Sources (ex. Core OID & Core OID balance) (2) |  |  | 1.38% |  |  |  | 1.55% |  |  |  | 1.82% |  |  |  | 2.13% |  |  |  | 2.39% |  |  |  | (0.17)% |  |  |  | (1.01)% |
NIM (as reported) |  |  | 3.16% |  |  |  | 2.90% |  |  |  | 2.65% |  |  |  | 2.40% |  |  |  | 2.66% |  |  |  | 0.26% |  |  |  | 0.50% |
NIM (ex. Core OID & Core OID balance) (2) |  |  | 3.18% |  |  |  | 2.92% |  |  |  | 2.67% |  |  |  | 2.42% |  |  |  | 2.68% |  |  |  | 0.26% |  |  |  | 0.50% |
Ally Bank Deposits |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Key Deposit Statistics |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Average retail CD maturity (months) |  |  | 20.0 |  |  |  | 19.7 |  |  |  | 19.6 |  |  |  | 19.6 |  |  |  | 19.9 |  |  |  | 0.3 |  |  |  | 0.1 |
Average retail deposit rate |  |  | 0.81% |  |  |  | 0.97% |  |  |  | 1.26% |  |  |  | 1.64% |  |  |  | 1.88% |  |  |  |  |  |  |  |  |
End of Period Deposit Levels |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Retail |  | $ | 128,370 |  |  | $ | 124,357 |  |  | $ | 120,789 |  |  | $ | 115,813 |  |  | $ | 106,068 |  |  | $ | 4,013 |  |  | $ | 22,301 |
Brokered & other |  | $ | 11,215 |  |  | $ | 12,680 |  |  | $ | 14,149 |  |  | $ | 15,223 |  |  | $ | 16,256 |  |  | $ | (1,465 | ) |  | $ | (5,041 | )
Total deposits |  | $ | 139,585 |  |  | $ | 137,036 |  |  | $ | 134,938 |  |  | $ | 131,036 |  |  | $ | 122,324 |  |  | $ | 2,549 |  |  | $ | 17,262 |
Deposit Mix |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Retail CD |  |  | 30% |  |  |  | 33% |  |  |  | 34% |  |  |  | 36% |  |  |  | 38% |  |  |  |  |  |  |  |  |
MMA/OSA/Checking |  |  | 62% |  |  |  | 58% |  |  |  | 56% |  |  |  | 53% |  |  |  | 49% |  |  |  |  |  |  |  |  |
Brokered(3) |  |  | 8% |  |  |  | 9% |  |  |  | 10% |  |  |  | 11% |  |  |  | 13% |  |  |  |  |  |  |  |  |

(1) ‘Mortgage includes held-for-investment (HFI) loans from the Mortgage Finance segment and the HFI legacy mortgage portfolio in run-off at the Corporate and Other segment.

(2) Consumer Other’ consists of unsecured consumer lending from point-of-sale financing.

(3) Represents a non-GAAP financial measure. Excludes Core OID from interest expense and Core OID balance from Unsecured Debt.

(4) Includes retail, brokered, and other deposits. Brokered includes sweep deposits. Other includes mortgage escrow and other deposits.

(5) Includes Demand Notes (terminated on 3/1/21), FHLB Borrowings and Repurchase Agreements.

(6) Includes trust preferred securities.

1Q 2021 Preliminary Results |  | 19

ALLY FINANCIAL INC. ALLY BANK CONSUMER MORTGAGE HFI PORTFOLIOS (PERIOD-END) |  |

($ in billions) |  | QUARTERLY TRENDS
Mortgage Finance HFI Portfolio |  | 1Q 21 |  | 4Q 20 |  | 3Q 20 |  | 2Q 20 |  | 1Q 20
Loan Value |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Gross carry value |  | $ | 12.4 |  |  | $ | 14.6 |  |  | $ | 15.2 |  |  | $ | 16.4 |  |  | $ | 15.9 |
Net carry value |  | $ | 12.4 |  |  | $ | 14.6 |  |  | $ | 15.1 |  |  | $ | 16.4 |  |  | $ | 15.9 |
Estimated Pool Characteristics |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
% Second lien |  |  | 0.0% |  |  |  | 0.0% |  |  |  | 0.0% |  |  |  | 0.0% |  |  |  | 0.0% |
% Interest only |  |  | 0.0% |  |  |  | 0.0% |  |  |  | 0.0% |  |  |  | 0.0% |  |  |  | 0.0% |
% 30+ Day delinquent(1)(2) |  |  | 0.8% |  |  |  | 0.8% |  |  |  | 1.3% |  |  |  | 0.6% |  |  |  | 0.5% |
% Low/No documentation |  |  | 0.2% |  |  |  | 0.2% |  |  |  | 0.2% |  |  |  | 0.2% |  |  |  | 0.2% |
% Non-primary residence |  |  | 4.9% |  |  |  | 4.8% |  |  |  | 4.7% |  |  |  | 4.6% |  |  |  | 4.5% |
Refreshed FICO(3) |  |  | 775 |  |  |  | 776 |  |  |  | 776 |  |  |  | 774 |  |  |  | 772 |
Wtd. Avg. LTV/CLTV (4) |  |  | 57.5% |  |  |  | 60.1% |  |  |  | 60.3% |  |  |  | 60.4% |  |  |  | 60.0% |
Corporate Other Legacy Mortgage HFI Portfolio |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Loan Value |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Gross carry value |  | $ | 0.5 |  |  | $ | 0.5 |  |  | $ | 0.9 |  |  | $ | 1.0 |  |  | $ | 1.1 |
Net carry value |  | $ | 0.4 |  |  | $ | 0.5 |  |  | $ | 0.9 |  |  | $ | 1.0 |  |  | $ | 1.0 |
Estimated Pool Characteristics |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
% Second lien |  |  | 18.0% |  |  |  | 19.8% |  |  |  | 12.6% |  |  |  | 13.2% |  |  |  | 13.6% |
% Interest only |  |  | 0.1% |  |  |  | 0.1% |  |  |  | 0.1% |  |  |  | 0.1% |  |  |  | 0.1% |
% 30+ Day delinquent(1)(2) |  |  | 7.0% |  |  |  | 7.1% |  |  |  | 4.7% |  |  |  | 4.0% |  |  |  | 5.1% |
% Low/No documentation |  |  | 22.5% |  |  |  | 22.2% |  |  |  | 24.0% |  |  |  | 23.4% |  |  |  | 23.1% |
% Non-primary residence |  |  | 3.7% |  |  |  | 3.6% |  |  |  | 7.1% |  |  |  | 6.9% |  |  |  | 7.1% |
Refreshed FICO(3) |  |  | 731 |  |  |  | 733 |  |  |  | 733 |  |  |  | 730 |  |  |  | 730 |
Wtd. Avg. LTV/CLTV (4) |  |  | 62.2% |  |  |  | 62.8% |  |  |  | 59.2% |  |  |  | 62.1% |  |  |  | 63.0% |

1) MBA Delinquency buckets were used for First Lien products and OTS Delinquency buckets were used for all others

2) %30+Day Delinquency bucket excludes loans which are current but are in bankruptcy

3) Refreshed FICO includes the entire Bank HFI portfolio, inclusive of SBO. Previously, SBO loans had been excluded from our reporting

4) 1st lien only. Updated home values derived using a combination of appraisals, BPOs, AVMs and MSA level house price indices

1Q 2021 Preliminary Results |  | 20

ALLY FINANCIAL INC. EARNINGS PER SHARE RELATED INFORMATION |  |

($ in millions, shares in thousands)

|  | QUARTERLY TRENDS |  | CHANGE VS.
Earnings Per Share Data |  | 1Q 21 |  | 4Q 20 |  | 3Q 20 |  | 2Q 20 |  | 1Q 20 |  | 4Q 20 |  | 1Q 20
GAAP net income (loss) attributable to common shareholders |  | $ | 796 |  |  | $ | 687 |  |  | $ | 476 |  |  | $ | 241 |  |  | $ | (319 | ) |  | $ | 109 |  |  | $ | 1,115 |
Weighted-average common shares outstanding - basic (1) |  |  | 375,229 |  |  |  | 376,081 |  |  |  | 375,658 |  |  |  | 375,051 |  |  |  | 375,723 |  |  |  | (852 | ) |  |  | (494 | )
Weighted-average common shares outstanding - diluted (1) |  |  | 377,529 |  |  |  | 378,424 |  |  |  | 377,011 |  |  |  | 375,762 |  |  |  | 375,723 |  |  |  | (895 | ) |  |  | 1,806 |
Issued shares outstanding (period-end) |  |  | 371,805 |  |  |  | 374,674 |  |  |  | 373,857 |  |  |  | 373,837 |  |  |  | 373,155 |  |  |  | (2,870 | ) |  |  | (1,350 | )
Net income (loss) per share - basic (1) |  | $ | 2.12 |  |  | $ | 1.83 |  |  | $ | 1.27 |  |  | $ | 0.64 |  |  | $ | (0.85 | ) |  | $ | 0.29 |  |  | $ | 2.97 |
Net income (loss) per share - diluted (1) |  | $ | 2.11 |  |  | $ | 1.82 |  |  | $ | 1.26 |  |  | $ | 0.64 |  |  | $ | (0.85 | ) |  | $ | 0.29 |  |  | $ | 2.96 |
Adjusted Earnings per Share (“Adjusted EPS”) |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Numerator |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
GAAP net income (loss) attributable to common shareholders |  | $ | 796 |  |  | $ | 687 |  |  | $ | 476 |  |  | $ | 241 |  |  | $ | (319 | ) |  | $ | 109 |  |  | $ | 1,115 |
Discontinued operations, net of tax |  |  | - |  |  |  | - |  |  |  | - |  |  |  | 1 |  |  |  | - |  |  |  | - |  |  |  | - |
Core OID |  |  | 10 |  |  |  | 9 |  |  |  | 9 |  |  |  | 9 |  |  |  | 8 |  |  |  | 0 |  |  |  | 1 |
Change in the fair value of equity securities (2) |  |  | (17 | ) |  |  | (111 | ) |  |  | (13 | ) |  |  | (90 | ) |  |  | 185 |  |  |  | 95 |  |  |  | (202 | )
Core OID & change in the fair value of equity securities tax (tax rate 21%) |  |  | 1 |  |  |  | 21 |  |  |  | 1 |  |  |  | 17 |  |  |  | (41 | ) |  |  | (20 | ) |  |  | 42 |
Repositioning and other (3) |  |  | - |  |  |  | - |  |  |  | - |  |  |  | 50 |  |  |  | - |  |  |  | - |  |  |  | - |
Core net income attributable to common shareholders (4) |  | $ | 790 |  |  | $ | 606 |  |  | $ | 473 |  |  | $ | 228 |  |  | $ | (166 | ) |  | $ | 184 |  |  | $ | 956 |
Denominator |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Weighted-average common shares outstanding - diluted (1) |  |  | 377,529 |  |  |  | 378,424 |  |  |  | 377,011 |  |  |  | 375,762 |  |  |  | 375,723 |  |  |  | (895 | ) |  |  | 1,806 |
Adjusted EPS (5) |  | $ | 2.09 |  |  | $ | 1.60 |  |  | $ | 1.25 |  |  | $ | 0.61 |  |  | $ | (0.44 | ) |  | $ | 0.49 |  |  | $ | 2.54 |
Memo |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Original Issue Discount Amortization Expense |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Core original issue discount (Core OID) amortization expense (6) |  | $ | 10 |  |  | $ | 9 |  |  | $ | 9 |  |  | $ | 9 |  |  | $ | 8 |  |  | $ | 0 |  |  | $ | 1 |
Other OID |  |  | 3 |  |  |  | 3 |  |  |  | 3 |  |  |  | 4 |  |  |  | 3 |  |  |  | - |  |  |  | - |
GAAP original issue discount amortization expense |  | $ | 12 |  |  | $ | 13 |  |  | $ | 12 |  |  | $ | 12 |  |  | $ | 11 |  |  | $ | - |  |  | $ | 1 |
Outstanding Original Issue Discount Balance |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Core outstanding original issue discount balance (Core OID balance) (7) |  | $ | (1,018 | ) |  | $ | (1,027 | ) |  | $ | (1,037 | ) |  | $ | (1,046 | ) |  | $ | (1,055 | ) |  | $ | 10 |  |  | $ | 37 |
Other outstanding OID balance |  |  | (34 | ) |  |  | (37 | ) |  |  | (48 | ) |  |  | (46 | ) |  |  | (34 | ) |  |  | 3 |  |  |  | - |
GAAP outstanding original issue discount balance |  | $ | (1,052 | ) |  | $ | (1,064 | ) |  | $ | (1,084 | ) |  | $ | (1,092 | ) |  | $ | (1,089 | ) |  | $ | 12 |  |  | $ | 37 |
Adjusted Other Revenue |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
GAAP Other Revenue |  | $ | 565 |  |  | $ | 678 |  |  | $ | 484 |  |  | $ | 555 |  |  | $ | 266 |  |  | $ | (113 | ) |  | $ | 299 |
Change in the fair value of equity securities (2) |  |  | (17 | ) |  |  | (111 | ) |  |  | (13 | ) |  |  | (90 | ) |  |  | 185 |  |  |  | 95 |  |  |  | (202 | )
Adjusted Other Revenue |  | $ | 548 |  |  | $ | 567 |  |  | $ | 471 |  |  | $ | 465 |  |  | $ | 451 |  |  | $ | (18 | ) |  | $ | 97 |
Net Financing Revenue (ex. Core OID) |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
GAAP net financing revenue |  | $ | 1,372 |  |  | $ | 1,303 |  |  | $ | 1,200 |  |  | $ | 1,054 |  |  | $ | 1,146 |  |  | $ | 69 |  |  | $ | 226 |
Core OID |  |  | 10 |  |  |  | 9 |  |  |  | 9 |  |  |  | 9 |  |  |  | 8 |  |  |  | 0 |  |  |  | 1 |
Net Financing Revenue (ex. Core OID) |  | $ | 1,382 |  |  | $ | 1,312 |  |  | $ | 1,209 |  |  | $ | 1,063 |  |  | $ | 1,154 |  |  | $ | 69 |  |  | $ | 227 |
Adjusted Noninterest Expense |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
GAAP Noninterest expense |  | $ | 943 |  |  | $ | 1,023 |  |  | $ | 905 |  |  | $ | 985 |  |  | $ | 920 |  |  | $ | (80 | ) |  | $ | 23 |
Repositioning and other (3) |  |  | - |  |  |  | - |  |  |  | - |  |  |  | (50 | ) |  |  | - |  |  |  | - |  |  |  | - |
Adjusted Noninterest Expense |  | $ | 943 |  |  | $ | 1,023 |  |  | $ | 905 |  |  | $ | 935 |  |  | $ | 920 |  |  | $ | (80 | ) |  | $ | 23 |

(1) Due to antidilutive effect of the net loss from pre-tax loss from continuing operations attributable to common shareholders for the first quarter 2020, basic weighted average common shares outstanding were used to calculate diluted earnings per share

(2) Change in fair value of equity securities impacts the Insurance and Corporate Finance segments. 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 1/1/2018 in which such adjustments were recognized through other comprehensive income, a component of equity.

(3) Repositioning and other includes a $50 million Goodwill impairment at Ally Invest in 2Q 20

(4) 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, repositioning and other which is primarily related to the extinguishment of high cost legacy debt, strategic activities and significant one-time items, significant discrete tax items and tax-effected changes in equity investments measured at fair value, as applicable for respective periods

(5) 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-effected non-cash Core OID, (3) adjusts for tax-effected repositioning and other which are primarily related to the extinguishment of high cost legacy debt, strategic activities and significant other one-time items, (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, and (5) excludes significant discrete tax items that do not relate to the operating performance of the core businesses, and 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, as applicable for respective periods.

(6) Core original issue discount (Core OID) amortization expense is a non-GAAP financial measure for OID, and is believed by management to help the reader better understand the activity removed from: Core pre-tax income (loss), Core net income (loss) attributable to common shareholders, Adjusted EPS, Core ROTCE, Adjusted efficiency ratio, Adjusted total net revenue, and Net financing revenue (excluding Core OID). Core OID is primarily related to bond exchange OID which excludes international operations and future issuances.

(7) Core outstanding original issue discount balance (Core OID balance) is a non-GAAP financial measure for outstanding OID, and is believed by management to help the reader better understand the balance removed from Core ROTCE and Adjusted TBVPS. Core OID balance is primarily related to bond exchange OID which excludes international operations and future issuances.

1Q 2021 Preliminary Results |  | 21

ALLY FINANCIAL INC. ADJUSTED TANGIBLE BOOK PER SHARE RELATED INFORMATION |  |

($ in billions, shares in thousands)

|  | QUARTERLY TRENDS |  | CHANGE VS.
Adjusted Tangible Book Value Per Share (“Adjusted TBVPS”) Information |  | 1Q 21 |  | 4Q 20 |  | 3Q 20 |  | 2Q 20 |  | 1Q 20 |  | 4Q 20 |  | 1Q 20
Numerator |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
GAAP common shareholder’s equity |  | $ | 14.6 |  |  | $ | 14.7 |  |  | $ | 14.1 |  |  | $ | 13.8 |  |  | $ | 13.5 |  |  | $ | (0.1 | ) |  | $ | 1.1 |
Goodwill and identifiable intangibles, net of DTLs |  |  | (0.4 | ) |  |  | (0.4 | ) |  |  | (0.4 | ) |  |  | (0.4 | ) |  |  | (0.4 | ) |  |  | - |  |  |  | 0.1 |
Tangible common equity |  |  | 14.2 |  |  |  | 14.3 |  |  |  | 13.7 |  |  |  | 13.4 |  |  |  | 13.1 |  |  |  | (0.1 | ) |  |  | 1.2 |
Tax-effected Core OID balance (21% tax rate) |  |  | (0.8 | ) |  |  | (0.8 | ) |  |  | (0.8 | ) |  |  | (0.8 | ) |  |  | (0.8 | ) |  |  | - |  |  |  | - |
Adjusted tangible book value (1) |  | $ | 13.4 |  |  | $ | 13.5 |  |  | $ | 12.9 |  |  | $ | 12.6 |  |  | $ | 12.2 |  |  | $ | (0.1 | ) |  | $ | 1.2 |
Denominator |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Issued shares outstanding (period-end, thousands) |  |  | 371,805 |  |  |  | 374,674 |  |  |  | 373,857 |  |  |  | 373,837 |  |  |  | 373,155 |  |  |  | (2,870 | ) |  |  | (1,350 | )
GAAP common shareholder’s equity per share |  | $ | 39.3 |  |  | $ | 39.2 |  |  | $ | 37.8 |  |  | $ | 37.0 |  |  | $ | 36.2 |  |  | $ | 0.1 |  |  | $ | 3.1 |
Goodwill and identifiable intangibles, net of DTLs per share |  |  | (1.0 | ) |  |  | (1.0 | ) |  |  | (1.0 | ) |  |  | (1.0 | ) |  |  | (1.2 | ) |  |  | - |  |  |  | 0.2 |
Tangible common equity per share |  |  | 38.3 |  |  |  | 38.2 |  |  |  | 36.7 |  |  |  | 35.9 |  |  |  | 35.0 |  |  |  | 0.1 |  |  |  | 3.3 |
Tax-effected Core OID balance (21% tax rate) per share |  |  | (2.2 | ) |  |  | (2.2 | ) |  |  | (2.2 | ) |  |  | (2.2 | ) |  |  | (2.2 | ) |  |  | - |  |  |  | 0.1 |
Adjusted tangible book value per share(1) |  | $ | 36.2 |  |  | $ | 36.1 |  |  | $ | 34.6 |  |  | $ | 33.7 |  |  | $ | 32.8 |  |  | $ | 0.1 |  |  | $ | 3.4 |

(1) 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 and (3) Series G discount which reduces tangible common equity as the company has normalized its capital structure, as applicable for respective periods.

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.

1Q 2021 Preliminary Results |  | 22

ALLY FINANCIAL INC. CORE ROTCE RELATED INFORMATION |  |

($ in millions) unless noted otherwise

|  | QUARTERLY TRENDS |  | CHANGE VS.
Core Return on Tangible Common Equity (“Core ROTCE”) |  | 1Q 21 |  | 4Q 20 |  | 3Q 20 |  | 2Q 20 |  | 1Q 20 |  | 4Q 20 |  | 1Q 20
Numerator |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
GAAP net income attributable to common shareholders |  | $ | 796 |  |  | $ | 687 |  |  | $ | 476 |  |  | $ | 241 |  |  | $ | (319 | ) |  | $ | 109 |  |  | $ | 1,115 |
Discontinued operations, net of tax |  |  | - |  |  |  | - |  |  |  | - |  |  |  | 1 |  |  |  | - |  |  |  | - |  |  |  | - |
Core OID |  |  | 10 |  |  |  | 9 |  |  |  | 9 |  |  |  | 9 |  |  |  | 8 |  |  |  | 0 |  |  |  | 1 |
Change in the fair value of equity securities (1) |  |  | (17 | ) |  |  | (111 | ) |  |  | (13 | ) |  |  | (90 | ) |  |  | 185 |  |  |  | 95 |  |  |  | (202 | )
Core OID & change in the fair value of equity securities tax (tax rate 21%) (1) |  |  | 1 |  |  |  | 21 |  |  |  | 1 |  |  |  | 17 |  |  |  | (41 | ) |  |  | (20 | ) |  |  | 42 |
Repositioning and other (2) |  |  | - |  |  |  | - |  |  |  | - |  |  |  | 50 |  |  |  | - |  |  |  | - |  |  |  | - |
Core net income attributable to common shareholders (3) |  | $ | 790 |  |  | $ | 606 |  |  | $ | 473 |  |  | $ | 228 |  |  | $ | (166 | ) |  | $ | 184 |  |  | $ | 956 |
Denominator (average, $ billions) |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
GAAP shareholder’s equity |  | $ | 14.7 |  |  | $ | 14.4 |  |  | $ | 14.0 |  |  | $ | 13.7 |  |  | $ | 14.0 |  |  | $ | 0.2 |  |  | $ | 0.7 |
Goodwill & identifiable intangibles, net of deferred tax liabilities (“DTLs”) |  |  | (0.4 | ) |  |  | (0.4 | ) |  |  | (0.4 | ) |  |  | (0.4 | ) |  |  | (0.4 | ) |  |  | 0.0 |  |  |  | 0.1 |
Tangible common equity |  | $ | 14.3 |  |  | $ | 14.0 |  |  | $ | 13.6 |  |  | $ | 13.3 |  |  | $ | 13.5 |  |  | $ | 0.3 |  |  | $ | 0.8 |
Core OID balance |  |  | (1.0 | ) |  |  | (1.0 | ) |  |  | (1.0 | ) |  |  | (1.1 | ) |  |  | (1.1 | ) |  |  | - |  |  |  | - |
Net deferred tax asset (“DTA”) |  |  | (0.1 | ) |  |  | (0.1 | ) |  |  | (0.1 | ) |  |  | (0.2 | ) |  |  | (0.1 | ) |  |  | (0.1 | ) |  |  | - |
Normalized common equity (4) |  | $ | 13.1 |  |  | $ | 12.9 |  |  | $ | 12.4 |  |  | $ | 12.0 |  |  | $ | 12.3 |  |  | $ | 0.2 |  |  | $ | 0.8 |
Core Return on Tangible Common Equity (5) |  |  | 24.1% |  |  |  | 18.7% |  |  |  | 15.2% |  |  |  | 7.6% |  |  |  | -5.4% |  |  |  |  |  |  |  |  |

(1) Change in fair value of equity securities impacts the Insurance and Corporate Finance segments. 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 1/1/2018 in which such adjustments were recognized through other comprehensive income, a component of equity.

(2) Repositioning and other includes a $50 million Goodwill impairment at Ally Invest in 2Q 20

(3) 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, repositioning and other which is primarily related to the extinguishment of high cost legacy debt, strategic activities and significant one-time items, significant discrete tax items and tax-effected changes in equity investments measured at fair value, as applicable for respective periods.

(4) Normalized common equity is a non-GAAP measure calculated using 2 period average

(5) 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 significant 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, repositioning and other which is primarily related to the extinguishment of high cost legacy debt, strategic activities and significant onetime items, tax-effected Core OID, fair value adjustments (net of tax) related to ASU 2016-01, effective 1/1/2018, which requires change in the fair value of equity securities to be recognized in current period net income as compared to prior periods in which such adjustments were recognized through other comprehensive income, a component of equity, significant discrete tax items, and preferred stock capital actions, as applicable for respective periods

| 2. | In the denominator, GAAP shareholder’s equity is adjusted for goodwill and identifiable intangibles net of DTL, Core OID balance, and net DTA.

1Q 2021 Preliminary Results |  | 23

ALLY FINANCIAL INC. ADJUSTED EFFICIENCY RATIO RELATED INFORMATION |  |

($ in millions)

|  | QUARTERLY TREND |  | CHANGE VS.
Adjusted Efficiency Ratio Calculation |  | 1Q 21 |  | 4Q 20 |  | 3Q 20 |  | 2Q 20 |  | 1Q 20 |  | 4Q 20 |  | 1Q 20
Numerator |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
GAAP Noninterest expense |  | $ | 943 |  |  | $ | 1,023 |  |  | $ | 905 |  |  | $ | 985 |  |  | $ | 920 |  |  | $ | (80 | ) |  | $ | 23 |
Insurance expense |  |  | (253 | ) |  |  | (246 | ) |  |  | (268 | ) |  |  | (322 | ) |  |  | (256 | ) |  |  | (7 | ) |  |  | 3 |
Repositioning and other (1) |  |  | - |  |  |  | - |  |  |  | - |  |  |  | (50 | ) |  |  | - |  |  |  | - |  |  |  | - |
Adjusted noninterest expense for the efficiency ratio |  | $ | 690 |  |  | $ | 777 |  |  | $ | 637 |  |  | $ | 613 |  |  | $ | 664 |  |  | $ | (87 | ) |  | $ | 26 |
Denominator |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Total net revenue |  | $ | 1,937 |  |  | $ | 1,981 |  |  | $ | 1,684 |  |  | $ | 1,609 |  |  | $ | 1,412 |  |  | $ | (44 | ) |  | $ | 525 |
Core OID |  |  | 10 |  |  |  | 9 |  |  |  | 9 |  |  |  | 9 |  |  |  | 8 |  |  |  | - |  |  |  | 1 |
Insurance revenue |  |  | (394 | ) |  |  | (429 | ) |  |  | (346 | ) |  |  | (450 | ) |  |  | (151 | ) |  |  | 35 |  |  |  | (243 | )
Adjusted net revenue for the efficiency ratio |  | $ | 1,553 |  |  | $ | 1,561 |  |  | $ | 1,347 |  |  | $ | 1,168 |  |  | $ | 1,269 |  |  | $ | (9 | ) |  | $ | 283 |
Adjusted Efficiency Ratio (2) |  |  | 44.4% |  |  |  | 49.8% |  |  |  | 47.3% |  |  |  | 52.5% |  |  |  | 52.3% |  |  |  |  |  |  |  |  |

(1) Repositioning and other includes a $50 million Goodwill impairment at Ally Invest in 2Q 20

(2) 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, Rep and warrant expense, and repositioning and other which is primarily related to the extinguishment of high cost legacy debt, strategic activities and significant one-time items, as applicable for respective periods. In the denominator, total net revenue is adjusted for Insurance segment revenue and Core OID. See page 11 for the combined ratio for the Insurance segment which management uses as a primary measure of underwriting profitability for the Insurance business.

1Q 2021 Preliminary Results |  | 24