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

Strategic focus and business pivots

• Adopted a "focused forward" strategy, concentrating on Dealer Financial Services, Consumer Bank, and Corporate Finance, while exiting the card business and mortgage originations to enhance competitive advantage and risk profile.

• These core segments are large, attractive, and fragmented markets where relevant scale enables compounding advantages and growth.

• Recent results show strong earnings growth, improved CET1, and higher ROTCE, supported by disciplined expense management and risk reduction.

• Capital from divestitures was used to restructure the balance sheet, further strengthening the foundation.

Navigating macroeconomic uncertainty

• Maintains a disciplined, data-driven approach to credit and underwriting, adjusting strategies to manage uncertainty and conflicting economic signals.

• Portfolio performance remains strong, with ongoing enhancements in servicing and underwriting.

• Focus on being measured and responsive to evolving data, ensuring resilience in volatile environments.

Dealer Financial Services: Relationship-driven growth

• Deep, long-term dealer relationships are a core competitive advantage, fostering trust and consistent engagement through cycles.

• Offers a comprehensive suite of solutions, including retail loans, commercial lending, insurance, SmartAuction, and fee-based services.

• Application volumes are up despite lower vehicle sales, reflecting strong dealer partnerships and top-of-funnel performance.

• High tech and high touch approach combines digital tools with human expertise, enabling rapid, tailored underwriting and service.