Ally Financial (ALLY) Bernstein 42nd Annual Strategic Decisions Conference summary

Strategic focus and business pivots

• Emphasized a "focused forward" strategy, concentrating on Dealer Financial Services, Consumer Bank, and Corporate Finance, while exiting the card business and mortgage origination to focus on areas with competitive advantage and scale.

• Achieved significant earnings growth, with EPS up 60% year-over-year and first quarter EPS up 90%, alongside a 400 basis point increase in ROTCE to 11%.

• Reduced risk profile by eliminating unsecured credit and long-dated mortgages, using proceeds from asset sales to restructure the balance sheet.

• Maintained disciplined expense management, targeting a 1% expense growth guide for the year.

• Built a stronger foundation for future growth and resilience against macroeconomic uncertainty.

Dealer Financial Services and competitive advantages

• Deep, long-term dealer relationships are a core differentiator, supported by a comprehensive suite of solutions including retail loans, commercial lending, insurance, and digital platforms like SmartAuction.

• Application volumes rose 16% in Q1 despite lower vehicle sales, reflecting strong dealer engagement.

• High tech and high touch approach combines digital tools with human underwriters, enabling rapid, tailored decisions and strong risk management.

• Fee income from SmartAuction and pass-through programs is growing at high single digits, providing capital-efficient, recurring revenue streams.

• Insurance offerings deepen dealer engagement, with about a third of dealers using at least one insurance product.

Corporate Finance and private credit

• Corporate Finance represents about a third of a $40 billion commercial lending business, with growth driven by long-standing client relationships and a credit-first approach.

• Retail deposit funding provides both durability and cost-of-funds advantages, supporting growth and resilience.

• Exposure to private credit is managed conservatively, with no losses or non-accruals in lender finance to date.

• Growth is opportunity-driven, not capital constrained, with new verticals like energy being explored.