Ally Financial (ALLY) investor relations material

Strategic progress and financial performance

• Profitability has improved significantly over two years, driven by a focus on core franchises, risk management, and customer-centric culture.

• Guidance and medium-term targets remain on track, with strong customer growth and disciplined operating expense management.

• Operating expenses have been flat to slightly down in the first half, with low single-digit growth expected in the back half of the year.

• Capital strategy balances investment in high-return products and shareholder returns, supported by a resumed share repurchase program.

• The Focus strategy and technology investments have deepened dealer relationships and driven application growth.

Net interest margin (NIM) and rate environment

• NIM guidance for the year is 3.6%-3.7%, with expectations to exit above the high end despite headwinds from lease losses and rate changes.

• NIM expansion is anchored in pricing discipline, strong deposit growth, and remixing the balance sheet toward higher-yielding assets.

• Floating rate portfolios and disciplined deposit pricing help manage rate volatility; hedging and structural changes have reduced interest rate risk.

• Lease residual losses tied to Stellantis recalls are expected to persist through 2026, with diversification reducing future exposure.

• CD rate increases have been disciplined, and overall CD concentration has declined.

Credit quality and portfolio management

• Retail auto net charge-offs (NCOs) are guided at 1.8%-2% for the year, with normalization expected in the back half and a long-term target of 1.6%-1.8%.

• Used vehicle prices and constrained supply are expected to support credit quality over the next few years.

• Vintage curves for recent years are performing as expected, with dynamic pricing and underwriting adjustments at the microsegment level.

• No specific timeline for achieving normalized NCOs, with updated guidance to be provided in January.