Ally Financial : Q4 2020 Financial Supplement

FOURTH QUARTER 2020

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, 2019, 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.

4Q 2020 Preliminary Results

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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

4Q 2020 Preliminary Results

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ALLY FINANCIAL INC.

CONSOLIDATED FINANCIAL HIGHLIGHTS

($ in millions, shares in thousands)
						QUARTERLY TRENDS								CHANGE VS.					FULL YEAR
Selected Income Statement Data		4Q 20			3Q 20				2Q 20				1Q 20			4Q 19			3Q 20			4Q 19			FY 2020			FY 2019				CHANGE
Net financing revenue (excluding Core OID) (1)	$	1,312	$	1,209	$	1,063			$	1,154	$	1,164	$	103	$	149	$	4,739	$	4,662		$	76
Core OID		(9)			(9)				(9)				(8)			(8)			0			(2)			(36)			(29)				(6)
Net financing revenue (as reported)		1,303			1,200				1,054				1,146			1,156			103			147			4,703			4,633				70
Other revenue (excluding change in fair value of equity securities) (2)		567			471				465				451			458			96			108			1,954			1,672				282
Change in fair value of equity securities (3)		111			13				90				(185)			29			98			83			29			89				(60)
Other revenue (as reported)		678			484				555				266			487			194			191			1,983			1,761				222
Provision for loan losses		102			147				287				903			276			(45)			(174)			1,439			998				441
Total noninterest expense (4)		1,023			905				985				920			880			118			143			3,833			3,429				404
Pre-tax income (loss) from continuing operations		856			632				337				(411)			487			224			369			1,414			1,967				(553)
Income tax expense / (benefit)		169			156				95				(92)			106			13			63			328			246				82
(Loss) / income from discontinued operations, net of tax		-			-				(1)				-			(3)			-			3			(1)			(6)				5
Net income / (loss) attributable to common shareholders	$	687	$	476	$	241			$	(319)	$	378	$	211	$	309	$	1,085	$	1,715		$	(630)
Selected Balance Sheet Data (Period-End)
Total assets	$	182,165	$	185,270	$	184,061			$	182,527	$	180,644	$	(3,105)	$	1,521
Consumer loans		89,202			90,160				90,365				90,066			89,924			(958)			(722)
Commercial loans		29,332			27,868				27,869				38,073			38,307			1,464			(8,975)
Allowance for loan losses		(3,283)			(3,379)				(3,354)				(3,245)			(1,263)			96			(2,020)
Deposits		137,036			134,938				131,036				122,324			120,752			2,098			16,284
Total equity		14,703			14,126				13,826				13,519			14,416			577			287
Common Share Count
Weighted average basic (5)		376,081			375,658				375,051				375,723			380,793			423			(4,712)			375,629			393,234				(17,605)
Weighted average diluted (5)		378,424			377,011				375,762				375,723			383,391			1,412			(4,968)			377,101			395,395				(18,294)
Issued shares outstanding (period-end)		374,674			373,857				373,837				373,155			374,332			817			342
Per Common Share Data
Earnings per share (basic) (5)	$	1.83	$	1.27	$	0.64			$	(0.85)	$	0.99	$	0.56	$	0.83	$	2.89	$	4.36		$	(1.47)
Earnings per share (diluted) (5)		1.82			1.26				0.64				(0.85)			0.99			0.55			0.83			2.88			4.34				(1.46)
Adjusted earnings per share (6)		1.60			1.25				0.61				(0.44)			0.95			0.35			0.65			3.03			3.72				(0.70)
Book value per share		39.2			37.8				37.0				36.2			38.5			1.5			0.7
Tangible book value per share (7)		38.2			36.7				35.9				35.0			37.3			1.5			0.9
Adjusted tangible book value per share (7)		36.1			34.6				33.7				32.8			35.1			1.5			1.0
Select Financial Ratios
Net interest margin (as reported)		2.90%			2.65%				2.40%				2.66%			2.64%									2.65%			2.67%
Net interest margin (ex. Core OID) (8)		2.92%			2.67%				2.42%				2.68%			2.66%									2.67%			2.68%
Cost of funds		1.58%			1.86%				2.16%				2.43%			2.55%									2.00%			2.66%
Cost of funds (ex. Core OID) (8)		1.55%			1.82%				2.13%				2.39%			2.51%									1.97%			2.62%
Efficiency Ratio (9)		51.6%			53.7%				61.2%				65.2%			53.6%									57.3%			53.6%
Adjusted efficiency ratio (8)(9)		49.8%			47.3%				52.5%				52.3%			49.4%									50.3%			47.4%
Return on average assets (10)		1.5%			1.0%				0.5%				(0.7)%			0.8%									0.6%			1.0%
Return on average total equity (10)		19.1%			13.6%				7.1%				(9.1)%			10.5%									7.7%			12.4%
Return on average tangible common equity (10)		19.6%			14.0%				7.3%				(9.4)%			10.7%									7.9%			12.7%
Core ROTCE (11)		18.7%			15.2%				7.6%				(5.4)%			11.2%									9.1%			12.0%
Capital Ratios(12)
Common Equity Tier 1 (CET1) capital ratio		10.6%			10.4%				10.1%				9.3%			9.5%
Tier 1 capital ratio		12.4%			12.1%				11.9%				10.9%			11.2%
Total capital ratio		14.1%			14.1%				13.8%				12.8%			12.8%
Tier 1 leverage ratio		9.4%			9.0%				8.9%				8.9%			9.1%

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.

4Q 2020 Preliminary Results

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ALLY FINANCIAL INC.

CONSOLIDATED INCOME STATEMENT

					QUARTERLY TRENDS							CHANGE VS.					FULL YEAR
($ in millions)		4Q 20			3Q 20			2Q 20			1Q 20			4Q 19			3Q 20			4Q 19			FY 2020			FY 2019			CHANGE
Financing revenue and other interest income
Interest and fees on finance receivables and loans	$	1,607	$	1,602	$	1,630	$	1,742	$	1,811	$	5	$	(204)	$	6,581	$	7,337		$	(756)
Interest on loans held-for-sale		6			5			4			2			4			1			2			17			17				-
Total interest and dividends on investment securities		130			162			187			213			217			(32)			(87)			692			887				(195)
Interest-bearing cash		5			5			4			14			15			-			(10)			28			78				(50)
Other earning assets		10			11			10			13			17			(1)			(7)			44			68				(24)
Operating leases		365			360			343			367			378			5			(13)			1,435			1,470				(35)
Total financing revenue and other interest income		2,123			2,145			2,178			2,351			2,442			(22)			(319)			8,797			9,857				(1,060)
Interest expense
Interest on deposits		367			452			541			592			637			(85)			(270)			1,952			2,538				(586)
Interest on short-term borrowings		3			9			13			17			21			(6)			(18)			42			135				(93)
Interest on long-term debt		274			309			318			348			366			(35)			(92)			1,249			1,570				(321)
Total interest expense		644			770			872			957			1,024			(126)			(380)			3,243			4,243				(1,000)
Depreciation expense on operating lease assets		176			175			252			248			262			1			(86)			851			981				(130)
Net financing revenue (as reported)	$	1,303	$	1,200	$	1,054	$	1,146	$	1,156	$	103	$	147	$	4,703	$	4,633		$	70
Other revenue
Servicing fees		2			2			3			3			3			(1)			(1)			9			18				(8)
Insurance premiums and service revenue earned		287			276			263			277			285			11			2			1,103			1,087				16
Gain on mortgage and automotive loans, net		75			33			14			(12)			6			42			69			110			28				82
Loss on extinguishment of debt		(52)			(49)			(1)			-			-			(3)			(52)			(102)			(2)				(100)
Other gain/loss on investments, net		134			64			188			(79)			69			70			65			307			243				64
Other income, net of losses		233			157			89			77			125			76			108			555			386				169
Total other revenue		678			484			555			266			487			194			191			1,983			1,761				222
Total net revenue		1,981			1,684			1,609			1,412			1,643			297			338			6,686			6,394				292
Provision for loan losses		102			147			287			903			276			(45)			(174)			1,439			998				441
Noninterest expense
Compensation and benefits expense		340			342			334			360			312			(2)			28			1,376			1,222				154
Insurance losses and loss adjustment expenses		62			85			142			74			61			(23)			1			363			321				42
Goodwill impairment		-			-			50			-			-			-			-			50			-			50
Other operating expenses		621			478			459			486			507			143			114			2,044			1,886				158
Total noninterest expense		1,023			905			985			920			880			118			143			3,833			3,429				404
Pre-tax income (loss) from continuing operations	$	856	$	632	$	337	$	(411)	$	487	$	224	$	369	$	1,414	$	1,967		$	(553)
Income tax expense / (benefit) from continuing operations		169			156			95			(92)			106			13			63			328			246				82
Net income (loss) from continuing operations		687			476			242			(319)			381			211			306			1,086			1,721				(635)
Income / (Loss) from discontinued operations, net of tax		-			-			(1)			-			(3)			-			3			(1)			(6)				5
Net income (loss)	$	687	$	476	$	241	$	(319)	$	378	$	211	$	309	$	1,085	$	1,715		$	(630)
Core Pre-Tax Income Walk
Net financing revenue (ex. OID) (1)	$	1,312	$	1,209	$	1,063	$	1,154	$	1,164	$	103	$	149	$	4,739	$	4,662		$	76
Adjusted other revenue (2)		567			471			465			451			458			96			108			1,954			1,672				282
Provision for credit losses		102			147			287			903			276			(45)			(174)			1,439			998				441
Adjusted noninterest expense (3)		1,023			905			935			920			880			118			143			3,783			3,429				354
Core pre-tax income (loss) (4)	$	754	$	628	$	306	$	(217)	$	466	$	126	$	288	$	1,470	$	1,907		$	(437)
Core OID		(9)			(9)			(9)			(8)			(8)			0			(2)			(36)			(29)				(6)
Change in the fair value of equity securities (5)		111			13			90			(185)			29			98			83			29			89				(60)
Repositioning and other (6)		-			-			(50)			-			-			-			-			(50)			-				(50)
Pre-tax income (loss) from continuing operations	$	856		$	632		$	337		$	(411)		$	487		$	224		$	369		$	1,414		$	1,967			$	(553)

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

4Q 2020 Preliminary Results

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ALLY FINANCIAL INC.

CONSOLIDATED PERIOD-END BALANCE SHEET

($ in millions)
						QUARTERLY TRENDS							CHANGE VS.
Assets		4Q 20			3Q 20			2Q 20			1Q 20			4Q 19			3Q 20			4Q 19
Cash and cash equivalents
Noninterest-bearing	$	724	$	719	$	609	$	453	$	619	$	5	$	105
Interest-bearing		14,897			19,220			18,522			5,708			2,936			(4,323)			11,961
Total cash and cash equivalents		15,621			19,939			19,131			6,161			3,555			(4,318)			12,066
Investment securities (1)		32,154			31,871			31,228			31,619			32,468			283			(314)
Loans held-for-sale, net		406			441			404			235			158			(35)			248
Finance receivables and loans, net		118,534			118,028			118,234			128,139			128,231			506			(9,697)
Allowance for loan losses		(3,283)			(3,379)			(3,354)			(3,245)			(1,263)			96			(2,020)
Total finance receivables and loans, net		115,251			114,649			114,880			124,894			126,968			602			(11,717)
Investment in operating leases, net		9,639			9,454			9,088			9,064			8,864			185			775
Premiums receivables and other insurance assets		2,679			2,662			2,609			2,576			2,558			17			121
Other assets		6,415			6,254			6,721			7,978			6,073			161			342
Total assets	$	182,165	$	185,270	$	184,061	$	182,527	$	180,644	$	(3,105)	$	1,521
Liabilities
Deposit liabilities
Noninterest-bearing	$	128	$	159	$	134	$	139	$	119	$	(31)	$	9
Interest-bearing		136,908			134,779			130,902			122,185			120,633			2,129			16,275
Total deposit liabilities		137,036			134,938			131,036			122,324			120,752			2,098			16,284
Short-term borrowings		2,136			3,032			3,689			9,493			5,531			(896)			(3,395)
Long-term debt		22,006			25,704			29,176			31,066			34,027			(3,698)			(12,021)
Interest payable		412			748			697			710			641			(336)			(229)
Unearned insurance premiums and service revenue		3,438			3,401			3,338			3,305			3,305			37			133
Accrued expense and other liabilities		2,434			3,321			2,299			2,110			1,972			(887)			462
Total liabilities	$	167,462	$	171,144	$	170,235	$	169,008	$	166,228	$	(3,682)	$	1,234
Equity
Common stock and paid-in capital (2)	$	18,350	$	18,324	$	18,307	$	18,278	$	18,350	$	26	$	-
Accumulated deficit		(4,278)			(4,893)			(5,296)			(5,465)			(4,057)			615			(221)
Accumulated other comprehensive income / (loss)		631			695			815			706			123			(64)			508
Total equity		14,703			14,126			13,826			13,519			14,416			577			287
Total liabilities and equity	$	182,165	$	185,270	$	184,061	$	182,527	$	180,644	$	(3,105)	$	1,521

1. Includes held-to-maturity securities.
2. Includes Treasury stock.

4Q 2020 Preliminary Results

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ALLY FINANCIAL INC.

CONSOLIDATED AVERAGE BALANCE SHEET (1)

($ in millions)																								FULL YEAR
					QUARTERLY TRENDS						CHANGE VS.
Assets		4Q 20			3Q 20			2Q 20			1Q 20			4Q 19			3Q 20			4Q 19		FY 2020		FY 2019		CHANGE
Interest-bearing cash and cash equivalents	$	17,758	$	20,719	$	12,496	$	4,853	$	3,811	$	(2,961)	$	13,947	$	13,985	$	3,837		$	10,148
Investment securities and other earning assets		33,107			32,059			32,201			32,694			33,680			1,048			(573)			32,516			32,357			159
Loans held-for-sale, net		635			472			337			150			405			163			230			399			375			24
Total finance receivables and loans, net (2)		117,422			117,546			122,428			126,646			127,184			(124)			(9,762)			120,991			128,654			(7,663)
Investment in operating leases, net		9,587			9,317			9,068			9,078			8,749			270			838			9,264			8,509			755
Total interest earning assets		178,509			180,113			176,530			173,420			173,829			(1,604)			4,680			177,155			173,732			3,423
Noninterest-bearing cash and cash equivalents		505			536			432			418			297			(31)			208			473			418			55
Other assets		8,112			8,137			8,250			7,583			7,232			(25)			880			8,021			6,864			1,157
Allowance for loan losses		(3,363)			(3,371)			(3,227)			(2,629)			(1,277)			8			(2,086)			(3,149)			(1,274)			(1,875)
Total assets	$	183,763	$	185,415	$	181,985	$	178,792	$	180,081	$	(1,652)	$	3,682	$	182,500	$	179,740		$	2,760
Liabilities
Interest-bearing deposit liabilities
Retail deposit liabilities	$	122,166	$	118,307	$	111,152	$	104,483	$	102,362	$	3,859	$	19,804	$	114,062	$	97,777		$	16,285
Other interest-bearing deposit liabilities (3)		13,327			14,500			15,726			16,593			17,553			(1,173)			(4,227)			15,030			17,467			(2,436)
Total Interest-bearing deposit liabilities		135,493			132,807			126,878			121,076			119,915			2,686			15,578			129,092			115,244			13,848
Short-term borrowings		2,350			3,343			4,712			4,496			4,283			(993)			(1,933)			3,721			5,686			(1,965)
Long-term debt (4)		24,103			28,512			30,554			33,122			34,954			(4,409)			(10,851)			29,058			38,466			(9,408)
Total interest-bearing liabilities (4)		161,946			164,662			162,144			158,694			159,152			(2,716)			2,794			161,871			159,396			2,475
Noninterest-bearing deposit liabilities		149			157			136			141			142			(8)			7			146			141			5
Other liabilities		6,819			6,472			5,343			6,137			6,352			347			467			6,195			6,215			(20)
Total liabilities	$	168,914	$	171,291	$	167,623	$	164,972	$	165,646	$	(2,377)	$	3,268	$	168,212	$	165,752		$	2,460
Equity
Total equity	$	14,849		$	14,124		$	14,362		$	13,820		$	14,435		$	725		$	414		$	14,288		$	13,988		$	300
Total liabilities and equity	$	183,763		$	185,415		$	181,985		$	178,792		$	180,081		$	(1,652)		$	3,682		$	182,500		$	179,740		$	2,760

1. Average balances are calculated using a combination of monthly and daily average methodologies.
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 $1,032 million in 4Q 20, $1,041 million in 3Q 20, $1,050 million in 2Q 20, $1,059 million in 1Q 20, and $1,067 million in 4Q 19. The average balance was $1,046 for full year 2020 and $1,078 for full year 2019.

4Q 2020 Preliminary Results

7

ALLY FINANCIAL INC.

SEGMENT HIGHLIGHTS

($ in millions)
					QUARTERLY TRENDS						CHANGE VS.				FULL YEAR
Pre-tax Income / (Loss)		4Q 20			3Q 20		2Q 20			1Q 20			4Q 19			3Q 20		4Q 19		FY 2020		FY 2019			CHANGE
Automotive Finance	$	563	$	566	$	329	$	(173)	$	401	$	(3)	$	162	$	1,285	$	1,618			$	(333)
Insurance		183			78			128			(105)			114			105			69			284			315				(31)
Dealer Financial Services		746			644			457			(278)			515			102			231			1,569			1,933				(364)
Corporate Finance		64			60			32			(68)			50			4			14			88			153				(65)
Mortgage Finance		7			26			8			12			2			(19)			5			53			40				13
Corporate and Other (1)		39			(98)			(160)			(77)			(80)			137			119			(296)			(159)				(137)
Pre-tax income from continuing operations	$	856	$	632	$	337	$	(411)	$	487	$	224	$	369	$	1,414	$	1,967			$	(553)
Core OID (2)		9			9			9			8			8			0			2			36			29				6
Change in the fair value of equity securities (3)		(111)			(13)			(90)			185			(29)			(98)			(83)			(29)			(89)				60
Repositioning and other (4)		-			-			50			-			-			-			-			50			-				50
Core pre-tax income (loss) (5)	$	754		$	628		$	306		$	(217)		$	466		$	126		$	288		$	1,470		$	1,907			$	(437)

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.

4Q 2020 Preliminary Results

8

ALLY FINANCIAL INC.

AUTOMOTIVE FINANCE - CONDENSED FINANCIAL STATEMENTS

($ in millions)
						QUARTERLY TRENDS							CHANGE VS.				FULL YEAR
Income Statement		4Q 20			3Q 20			2Q 20			1Q 20			4Q 19			3Q 20			4Q 19		FY 2020		FY 2019	CHANGE
Net financing revenue
Consumer	$	1,261	$	1,253	$	1,215	$	1,202	$	1,234	$	8	$	27	$	4,931	$	4,775		$	156
Commercial		163			153			210			307			342			10			(179)			833			1,561			(728)
Loans held-for-sale		-			-			-			-			(1)			-			1			-			-		-
Operating leases		365			360			343			367			378			5			(13)			1,435			1,470			(35)
Other interest income		1			1			2			1			1			-			-			5			8			(3)
Total financing revenue and other interest income		1,790			1,767			1,770			1,877			1,954			23			(164)			7,204			7,814			(610)
Interest expense		461			490			529			589			631			(29)			(170)			2,069			2,692			(623)
Depreciation expense on operating lease assets:
Depreciation expense on operating lease assets (ex. remarketing)		242			245			240			251			265			(4)			(24)			978			1,050			(72)
Remarketing gains / (losses)		66			70			(11)			2			3			(5)			63			127			69			58
Total depreciation expense on operating lease assets		176			175			252			248			262			1			(86)			851			981			(130)
Net financing revenue		1,153			1,102			989			1,040			1,061			51			92			4,284			4,141			143
Other revenue
Servicing fees		(1)			2			2			1			2			(3)			(3)			4			13			(10)
Other income		58			58			39			46			58			-			(1)			200			228			(27)
Total other revenue		56			61			40			47			61			(5)			(5)			204			249			(45)
Total net revenue		1,209			1,163			1,029			1,087			1,122			46			87			4,488			4,390			98
Provision for credit losses		86			128			256			766			255			(42)			(169)			1,236			962			274
Noninterest expense
Compensation and benefits		134			134			133			148			133			-			1			549			524			25
Other operating expenses		426			335			311			346			333			91			93			1,418			1,286			132
Total noninterest expense		560			469			444			494			466			91			94			1,967			1,810			157
Pre-tax Income / (loss)	$	563	$	566	$	329	$	(173)	$	401	$	(3)	$	162	$	1,285	$	1,618		$	(333)
Memo: Net lease revenue
Operating lease revenue	$	365	$	360	$	343	$	367	$	378	$	5	$	(13)	$	1,435	$	1,470		$	(35)
Depreciation expense on operating lease assets (ex. remarketing)		242			245			240			251			265			(4)			(24)			978			1,050			(72)
Remarketing gains (losses), net of repo valuation		66			70			(11)			2			3			(5)			63			127			69			58
Total depreciation expense on operating lease assets		176			175			252			248			262			1			(86)			851			981			(130)
Net lease revenue	$	189	$	185	$	91	$	119	$	116	$	4	$	73	$	584	$	489		$	95
Balance Sheet (Period-End)
Cash, trading and investment securities	$	23	$	23	$	23	$	23	$	23	$	-	$	-
Consumer loans		73,443			73,484			72,378			72,463			72,254			(41)			1,189
Commercial loans		23,141			21,854			21,708			31,390			32,490			1,287			(9,349)
Allowance for loan losses		(2,986)			(3,092)			(3,084)			(2,968)			(1,130)			106			(1,856)
Total finance receivables and loans, net		93,598			92,246			91,002			100,885			103,614			1,352			(10,016)
Investment in operating leases, net		9,639			9,454			9,088			9,064			8,864			185			775
Other assets		1,534			1,643			1,903			1,582			1,362			(109)			172
Total assets	$	104,794	$	103,366	$	102,016	$	111,554	$	113,863	$	1,428	$	(9,069)

4Q 2020 Preliminary Results

9

ALLY FINANCIAL INC.

AUTOMOTIVE FINANCE - KEY STATISTICS

								QUARTERLY TRENDS						CHANGE VS.				FULL YEAR
					4Q 20			3Q 20			2Q 20			1Q 20			4Q 19			3Q 20			4Q 19		FY 2020		FY 2019	CHANGE
U.S. Consumer Originations (1)($ in billions)
Retail standard - new vehicle GM	$	1.1	$	1.0	$	0.7	$	1.0	$	1.2	$	0.1	$	(0.1)	$	3.8	$	4.7		$	(0.9)
Retail standard - new vehicle Chrysler		1.0			1.0			0.7			0.8			0.8			0.0			0.2			3.4			3.3			0.1
Retail standard - new vehicle Growth		1.1			1.0			0.6			1.1			1.0			0.1			0.1			3.9			4.8			(0.9)
Used vehicle		4.7			5.4			4.3			5.0			3.9			(0.8)			0.7			19.3			19.0			0.3
Lease		1.2			1.4			0.9			1.2			1.2			(0.2)			0.0			4.6			4.4			0.2
Retail subvented		0.0			0.0			0.0			0.0			0.0			0.0			(0.0)			0.1			0.2			(0.1)
Total originations	$	9.1	$	9.8	$	7.2	$	9.1	$	8.1	$	(0.7)	$	0.9	$	35.1	$	36.3		$	(1.2)
U.S. Consumer Originations - FICO Score
Super Prime (740+)	$	2.1	$	2.3	$	1.6	$	2.1	$	2.1	$	(0.2)	$	0.0	$	8.1	$	8.7		$	(0.5)
Prime (660-739)		3.7			3.9			2.9			3.4			2.9			(0.2)			0.8			13.8			13.3			0.5
Prime/Near (620-659)		2.0			2.0			1.6			1.9			1.6			(0.1)			0.4			7.5			7.7			(0.2)
Non Prime (540-619)		0.6			0.8			0.6			0.9			0.8			(0.2)			(0.2)			3.0			3.5			(0.5)
Sub Prime (0-539)		0.1			0.2			0.1			0.1			0.1			(0.1)			0.0			0.5			0.4			0.1
Commercial Services Group (2)		0.6			0.5			0.4			0.6			0.7			0.1			0.0			2.2			2.7			(0.5)
Total originations	$	9.1	$	9.8	$	7.2	$	9.1	$	8.1	$	(0.7)	$	0.9	$	35.1	$	36.3		$	(1.2)
U.S. Market
Light vehicle sales (SAAR - units in millions)		16.6			15.8			11.6			15.4			17.2			0.8			(0.6)			14.8			17.1			(2.2)
Light vehicle sales (quarterly - units in millions)		4.2			3.9			3.0			3.5			4.3			0.3			(0.1)			14.5			17.0			(2.5)
GM market share		18.3%			16.9%			16.5%			17.7%			17.3%									17.4%			17.0%			0.5%
Chrysler market share		11.9%			13.0%			12.4%			12.8%			12.7%									12.5%			13.0%			(0.4%)
Ally U.S. Consumer Penetration
GM		4.5%			4.4%			4.0%			6.2%			5.6%									4.5%			5.6%
Chrysler		12.4%			12.8%			10.4%			13.2%			12.5%									12.4%			12.5%
Ally U.S. Commercial Outstandings EOP ($ in billions)
Floorplan outstandings	$	17.3	$	16.0	$	15.8	$	26.1	$	27.0	$	1.3	$	(9.7)
Dealer loans and other		5.9			5.8			5.9			5.3			5.5			0.1			0.4
Total Commercial outstandings	$	23.1	$	21.9	$	21.7	$	31.4	$	32.5	$	1.3	$	(9.3)
U.S. Off-Lease Remarketing
Off-lease vehicles terminated - on-balance sheet (# in units)	30,480	28,917	26,785	20,419	27,832			1,563			2,648	106,601	113,114		(6,513)
Average gain / (loss) per vehicle	$2,150	$2,437	$	(421)	$	121	$	99	$	(287)	$	2,051	$1,193	$	607		$	586
Total gain / (loss) ($ in millions)	$	66	$	70	$	(11)	$	2	$	3	$	(5)	$	63	$	127	$	69		$	58

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 2020

4Q 2020 Preliminary Results

10

ALLY FINANCIAL INC.

INSURANCE - CONDENSED FINANCIAL STATEMENTS AND KEY STATISTICS

($ in millions)
Income Statement (GAAP View)					QUARTERLY TRENDS							CHANGE VS.						FULL YEAR
	4Q 20			3Q 20			2Q 20			1Q 20			4Q 19			3Q 20		4Q 19			FY 2020			FY 2019			CHANGE
Net financing revenue
Total interest and fees on finance receivables and loans(1)	$	1	$	-	$	-	$	-	$	-	$	1	$	1	$	1	$	-	$	1
Interest and dividends on investment securities		26			25			27			29			29			1			(3)			107			113			(6)
Interest bearing cash		1			4			4			5			5			(3)			(4)			14			20			(6)
Total financing revenue and other interest revenue		28			29			31			34			34			(1)			(6)			122			133			(11)
Interest expense		20			21			19			20			21			(1)			(1)			80			79			1
Net financing revenue		8			8			12			14			13			-			(5)			42			54			(12)
Other revenue
Insurance premiums and service revenue earned		287			276			263			277			285			11			2			1,103			1,087			16
Other gain / (loss) on investments, net		131			59			172			(142)			51			72			80			220			175			45
Other income, net of losses		3			3			3			2			3			-			-			11			12			(1)
Total other revenue		421			338			438			137			339			83			82			1,334			1,274			60
Total net revenue		429			346			450			151			352			83			77			1,376			1,328			48
Noninterest expense
Compensation and benefits expense		20			21			20			21			20			(1)			-			82			80			2
Insurance losses and loss adjustment expenses		62			85			142			74			61			(23)			1			363			321			42
Other operating expenses		164			162			160			161			157			2			7			647			612			35
Total noninterest expense		246			268			322			256			238			(22)			8			1,092			1,013			79
Pre-tax Income / (Loss)	$	183	$	78	$	128	$	(105)	$	114	$	105	$	69	$	284	$	315	$	(31)
Memo: Income Statement (Managerial View)
Insurance premiums and service revenue earned	$	287	$	276	$	263	$	277	$	285	$	11	$	2	$	1,103	$	1,087	$	16
Investment income (adjusted) (1)		28			54			95			54			36			(26)			(7)			231			141			90
Other income		3			3			3			2			3			-			-			11			12			(1)
Total insurance premiums and other income		318			333			361			333			324			(15)			(5)			1,345			1,240			105
Expense
Insurance losses and loss adjustment expenses		62			85			142			74			61			(23)			1			363			321			42
Acquisition and underwriting expenses
Compensation and benefit expense		20			21			20			21			20			(1)			-			82			80			2
Insurance commission expense		133			130			127			126			123			3			10			516			475			41
Other expense		31			32			33			35			34			(1)			(3)			131			137			(6)
Total acquistion and underwriting expense		184			183			180			182			177			1			7			729			692			37
Total expense		246			268			322			256			238			(22)			8			1,092			1,013			79
Core pre-tax income / (loss) (2)		72			65			39			77			86			7			(13)			253			227			26
Change in the fair value of equity securities (2)		111			13			89			(182)			28			98			82			31			88			(57)
Income / (Loss) before income tax expense	$	183	$	78	$	128	$	(105)	$	114	$	105	$	69	$	284	$	315	$	(31)
Balance Sheet (Period-End)
Cash, trading and investment securities	$	5,421	$	6,006	$	5,920	$	5,193	$	5,742	$	(585)	$	(321)
Intercompany loans(1)		830			-			-			-			-			830			830
Premiums receivable and other insurance assets		2,693			2,674			2,621			2,594			2,576			19			117
Other assets		193			264			199			633			229			(71)			(36)
Total assets	$	9,137	$	8,944	$	8,740	$	8,420	$	8,547	$	193	$	590
Key Statistics
Total written premiums and revenue (3)	$	312	$	333	$	267	$	317	$	335	$	(21)	$	(23)	$	1,229	$	1,310	$	(81)
Loss ratio (4)		21.6 %			30.3 %			53.4 %			26.5 %			21.2 %									32.6 %			29.2 %
Underwriting expense ratio (5)		63.5 %			65.8 %			67.4 %			65.1 %			61.5 %									65.4 %			63.0 %
Combined ratio		85.1 %			96.1 %			120.9 %			91.6 %			82.7 %									98.0 %			92.2 %

(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.

1. Written premiums are net of ceded premium for reinsurance.
2. 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.
3. 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.

4Q 2020 Preliminary Results

11

ALLY FINANCIAL INC.

MORTGAGE FINANCE - CONDENSED FINANCIAL STATEMENTS

($ in millions)
						QUARTERLY TRENDS						CHANGE VS.				FULL YEAR
Income Statement		4Q 20			3Q 20			2Q 20			1Q 20			4Q 19			3Q 20			4Q 19		FY 2020		FY 2019	CHANGE
Net financing revenue
Total financing revenue and other interest income	$	101	$	121	$	127	$	138	$	137	$	(20)	$	(36)	$	487	$	577		$	(90)
Interest expense		81			91			97			100			101			(10)			(20)			369			406			(37)
Net financing revenue		20			30			30			38			36			(10)			(16)			118			171			(53)
Gain on mortgage loans, net		33			34			17			9			6			(1)			27			93			20			73
Other income, net of losses		4			2			2			1			-			2			4			9			2			7
Total other revenue		37			36			19			10			6			1			31			102			22			80
Total net revenue		57			66			49			48			42			(9)			15			220			193			27
Provision for loan losses		3			-			3			1			3			3			-			7			5			2
Noninterest expense
Compensation and benefits expense		5			6			5			6			7			(1)			(2)			22			31			(9)
Other operating expense		42			34			33			29			30			8			12			138			117			21
Total noninterest expense		47			40			38			35			37			7			10			160			148			12
Pre-tax Income	$	7	$	26	$	8	$	12	$	2	$	(19)	$	5	$	53	$	40		$	13
Balance Sheet (Period-End)
Finance receivables and loans, net:
Consumer loans	$	14,632	$	15,168	$	16,429	$	15,949	$	16,181	$	(536)	$	(1,549)
Allowance for loan losses		(21)			(20)			(21)			(18)			(19)			(1)			(2)
Total finance receivables and loans, net		14,611			15,148			16,408			15,931			16,162			(537)			(1,551)
Other assets		278			355			261			204			117			(77)			161
Total assets	$	14,889	$	15,503	$	16,669	$	16,135	$	16,279	$	(614)	$	(1,390)

4Q 2020 Preliminary Results

12

ALLY FINANCIAL INC.

CORPORATE FINANCE - CONDENSED FINANCIAL STATEMENTS

($ in millions)
						QUARTERLY TRENDS						CHANGE VS.					FULL YEAR
Income Statement		4Q 20			3Q 20			2Q 20			1Q 20			4Q 19			3Q 20		4Q 19		FY 2020		FY 2019	CHANGE
Net financing revenue
Total financing revenue and other interest income	$	89	$	84	$	92	$	95	$	93	$	5	$	(4)	$	360	$	373		$	(13)
Interest expense		10			9			15			27			29			1			(19)			61			134			(73)
Net financing revenue		79			75			77			68			64			4			15			299			239			60
Total other revenue (adjusted) (1)		16			8			5			17			15			8			2			46			43			3
Total net revenue		95			83			82			85			79			12			17			345			282			63
Provision for loan losses		9			1			25			114			7			8			2			149			36			113
Noninterest expense
Compensation and benefits expense		14			13			14			21			13			1			1			62			58			4
Other operating expense		9			10			12			14			9			(1)			-			45			37			8
Total noninterest expense		23			23			26			35			22			-			1			107			95			12
Core pre-tax income (1)		63			59			31			(64)			50			4			14			89			151			(62)
Change in the fair value of equity securities (2)		1			1			1			(4)			-			(0)			0			(1)			2			(3)
Pre-tax Income / (loss)	$	64	$	60	$	32	$	(68)	$	50	$	4	$	14	$	88	$	153		$	(65)
Balance Sheet (Period-End)
Equity securities	$	7	$	6	$	5	$	4	$	8	$	1	$	(1)
Loans held for sale		205			207			265			133			100			(2)			105
Commercial loans		6,006			5,883			6,031			6,549			5,688			123			318
Allowance for loan losses		(189)			(180)			(178)			(191)			(77)			(9)			(112)
Total finance receivables and loans, net		5,817			5,703			5,853			6,358			5,611			114			206
Other assets		79			79			83			77			68			-			11
Total assets	$	6,108	$	5,995	$	6,206	$	6,572	$	5,787	$	113	$	321

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.

4Q 2020 Preliminary Results

13

ALLY FINANCIAL INC.

CORPORATE AND OTHER - CONDENSED FINANCIAL STATEMENTS

($ in millions)					QUARTERLY TRENDS						CHANGE VS.				FULL YEAR
Income Statement		4Q 20			3Q 20			2Q 20			1Q 20			4Q 19			3Q 20			4Q 19		FY 2020		FY 2019	CHANGE
Net financing revenue
Total financing revenue and other interest income	$	115	$	144	$	158	$	207	$	224	$	(29)	$	(109)	$	624	$	960		$	(336)
Interest expense
Core original issue discount amortization		9			9			9			8			8			0			2			36			29			6
Other interest expense		63			150			203			213			234			(87)			(172)			628			903			(274)
Total interest expense		72			159			212			221			242			(87)			(170)			664			932			(268)
Net financing (loss) / revenue		43			(15)			(54)			(14)			(18)			58			61			(40)			28			(68)
Other revenue
Loss on extinguishment of debt		(52)			(49)			(1)			-			-			(3)			(52)			(102)			(2)			(100)
Other gain on investments, net		1			5			15			67			18			(4)			(17)			88			63			25
Gain/(loss) on mortgage and automotive loans, net		42			(1)			(3)			(21)			-			43			42			17			-		17
Other income, net of losses (1)		156			85			41			13			48			71			108			295			110			185
Total other revenue		147			40			52			59			66			107			81			298			171			127
Total net revenue		190			25			(2)			45			48			165			142			258			199			59
Provision for loan losses		4			18			3			22			11			(14)			(7)			47			(5)			52
Noninterest expense
Compensation and benefits expense		167			168			162			164			139			(1)			28			661			529			132
Goodwill impairment		-			-			50			-			-			-			-			50			-		50
Other operating expense (2)		(20)			(63)			(57)			(64)			(22)			43			2			(204)			(166)			(38)
Total noninterest expense		147			105			155			100			117			42			30			507			363			144
Pre-tax (loss) income	$	39	$	(98)	$	(160)	$	(77)	$	(80)	$	137	$	119	$	(296)	$	(159)		$	(137)
Balance Sheet (Period-End)
Cash, trading and investment securities	$	42,324	$	45,775	$	44,411	$	32,560	$	30,250	$	(3,451)	$	12,074
Loans held-for-sale		110			78			48			34			30			32			80
Consumer loans		1,127			1,508			1,558			1,654			1,489			(381)			(362)
Commercial loans		185			131			130			134			129			54			56
Intercompany loans(3)		(830)			-			-			-			-			(830)			(830)
Allowance for loan losses		(87)			(87)			(71)			(68)			(37)			-			(50)
Total finance receivables and loans, net		395			1,552			1,617			1,720			1,581			(1,157)			(1,186)
Other assets		4,408			4,057			4,354			5,532			4,307			351			101
Total assets	$	47,237	$	51,462	$	50,430	$	39,846	$	36,168	$	(4,225)	$	11,069
Core OID Amortization Schedule (4)		2021			2022			2023			2024		2025 & After
Remaining Core OID amortization expense	$	41	$	47	$	54	$	62		Avg = $51/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 $254 million for 4Q20, $234 million for 3Q20, $242 million for 2Q20, $256 million for 1Q20 and $225 million for 4Q19. Full year amounts were $986 million in 2020 and $899 million in 2019. 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.

4Q 2020 Preliminary Results

14

ALLY FINANCIAL INC.

CREDIT RELATED INFORMATION

($ in millions)
					QUARTERLY TRENDS						CHANGE VS.					FULL YEAR
Asset Quality - Consolidated (1)		4Q 20			3Q 20			2Q 20			1Q 20			4Q 19			3Q 20			4Q 19		FY 2020		FY 2019			CHANGE
Ending loan balance	$	118,526	$	118,020	$	118,226	$	128,129	$	128,220	$	506	$	(9,694)
30+ Accruing DPD	$	1,914	$	1,840	$	1,695	$	2,416	$	2,709	$	74	$	(795)
30+ Accruing DPD %		1.61%			1.56%			1.43%			1.89%			2.11%
60+ Accruing DPD	$	438	$	366	$	349	$	489	$	553	$	72	$	(115)
60+ Accruing DPD %		0.37%			0.31%			0.30%			0.38%			0.43%
Non-performing loans (NPLs)	$	1,522	$	1,493	$	1,532	$	1,396	$	1,036	$	29	$	486
Net charge-offs (NCOs)	$	198	$	122	$	178	$	266	$	290	$	76	$	(92)	$	764	$	976			$	(212)
Net charge-off rate (2)		0.67%			0.41%			0.58%			0.84%			0.91%									0.63%			0.76%
Provision for loan losses	$	102	$	147	$	287	$	903	$	276	$	(45)	$	(174)	$	1,439	$	998			$	441
Allowance for loan losses (ALLL)	$	3,283	$	3,379	$	3,354	$	3,245	$	1,263	$	(96)	$	2,020
ALLL as % of Loans (3) (4)		2.78%			2.87%			2.85%			2.54%			0.99%
ALLL as % of NPLs (3)		216%			226%			219%			232%			122%
ALLL as % of NCOs (3)		414%			691%			471%			305%			109%
US Auto Delinquencies - HFI Retail Contract $'s
30+ Delinquent contract $	$	1,834	$	1,658	$	1,599	$	2,322	$	2,616	$	176	$	(782)
% of retail contract $ outstanding		2.49%			2.25%			2.20%			3.19%			3.61%
60+ Delinquent contract $	$	428	$	350	$	341	$	478	$	540	$	78	$	(112)
% of retail contract $ outstanding		0.58%			0.47%			0.47%			0.66%			0.75%
U.S. Auto Annualized Net Charge-Offs - HFI Retail Contract $'s
Net charge-offs	$	186	$	117	$	137	$	262	$	271	$	69	$	(85)	$	702	$	930			$	(228)
% of avg. HFI assets (2)		1.01%			0.64%			0.76%			1.44%			1.49%									0.96%			1.29%
U.S. Auto Annualized Net Charge-Offs - HFI Commercial Contract $'s
Net charge-offs	$	7	$	4	$	1	$	2	$	10	$	3	$	(3)	$	14	$	12			$	2
% of avg. HFI assets (2)		0.12%			0.07%			0.02%			0.03%			0.12%									0.05%			0.04%

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 $225 million of fair value adjustment for loans in hedge accounting relationships in 4Q20, $277 million in 3Q20, $334 million in 2Q20, $370 million in 1Q20 and $135 million in 4Q19.

4Q 2020 Preliminary Results

15

ALLY FINANCIAL INC.

CREDIT RELATED INFORMATION, CONTINUED

($ in millions)
Automotive Finance (1)						QUARTERLY TRENDS								CHANGE VS.
Consumer		4Q 20			3Q 20				2Q 20				1Q 20			4Q 19			3Q 20			4Q 19
Allowance for loan losses	$	2,902	$	2,982	$	2,963			$	2,833	$	1,075	$	(80)	$	1,827
Total consumer loans (2)	$	73,668	$	73,761	$	72,712			$	72,832	$	72,390	$	(93)	$	1,278
Coverage ratio (3)		3.95%			4.06%				4.09%				3.91%			1.49%
Commercial
Allowance for loan losses	$	84	$	110	$	121			$	135	$	55	$	(26)	$	29
Total commercial loans	$	23,141	$	21,854	$	21,708			$	31,390	$	32,490	$	1,287	$	(9,349)
Coverage ratio		0.36%			0.51%				0.56%				0.43%			0.17%
Mortgage (1)
Consumer
Mortgage Finance
Allowance for loan losses	$	21	$	20	$	21			$	18	$	19	$	1	$	2
Total consumer loans	$	14,632	$	15,168	$	16,429			$	15,949	$	16,181	$	(536)	$	(1,549)
Coverage ratio		0.15%			0.13%				0.13%				0.11%			0.12%
Mortgage - Legacy
Allowance for loan losses	$	12	$	19	$	21			$	21	$	27	$	(7)	$	(15)
Total consumer loans	$	495	$	904	$	984			$	1,061	$	1,141	$	(409)	$	(646)
Coverage ratio		2.40%			2.09%				2.08%				1.99%			2.35%
Total Mortgage
Allowance for loan losses	$	33	$	39	$	42			$	39	$	46	$	(6)	$	(13)
Total consumer loans	$	15,127	$	16,072	$	17,413			$	17,010	$	17,322	$	(945)	$	(2,195)
Coverage ratio		0.22%			0.24%				0.24%				0.23%			0.27%
Consumer Other (1)(4)
Allowance for loan losses	$	73	$	67	$	49			$	45	$	9	$	6	$	64
Total consumer loans	$	399	$	319	$	232			$	214	$	201	$	80	$	197
Coverage ratio		18.38%			20.93%				21.06%				21.23%			4.65%
Corporate Finance (1)
Allowance for loan losses	$	189	$	180	$	178			$	191	$	77	$	9	$	112
Total commercial loans	$	6,006	$	5,883	$	6,031			$	6,549	$	5,688	$	123	$	318
Coverage ratio		3.14%			3.05%				2.95%				2.92%			1.35%
Corporate and Other (1)
Allowance for loan losses	$	2	$	1	$	1			$	2	$	1	$	1	$	1
Total commercial loans	$	185	$	131	$	130			$	134	$	129	$	54	$	56
Coverage ratio		1.36%			1.13%				1.13%				1.36%			0.69%

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 $225 million of fair value adjustment for loans in hedge accounting relationships in 4Q20, $277 million in 3Q20, $334 million in 2Q20, $370 million in 1Q20 and $135 million in 4Q19.
3. Excludes $225 million of fair value adjustment for loans in hedge accounting relationships in 4Q20, $277 million in 3Q20, $334 million in 2Q20, $370 million in 1Q20 and $135 million in 4Q19.
4. Represents Health Credit Services (HCS) which Ally acquired in 4Q19 (now Ally Lending).

4Q 2020 Preliminary Results

16

ALLY FINANCIAL INC. CAPITAL

($ in billions)

Capital

Risk-weighted assets

Common Equity Tier 1 (CET1) capital ratio

Tier 1 capital ratio

Total capital ratio

Tangible common equity / Tangible assets (1)(2)

Tangible common equity / Risk-weighted assets (1)

Shareholders' equity

add: CECL phase-in adjustment

less: Certain AOCI items and other adjustments Common Equity Tier 1 capital

Common Equity Tier 1 capital add: Trust preferred securities less: Other adjustments

Tier 1 capital

Tier 1 capital

add: Qualifying subordinated debt

add: Allowance for loan and lease losses includible in Tier 2 capital and other adjustments Total capital

Total shareholders' equity

Goodwill and intangible assets, net of deferred tax liabilities

Tangible common equity (1)

Total assets

less: Goodwill and intangible assets, net of deferred tax liabilities Tangible assets (2)

Note: Numbers may not foot due to rounding

					QUARTERLY TRENDS								CHANGE VS.
	4Q 20			3Q 20				2Q 20				1Q 20			4Q 19			3Q 20			4Q 19
$	139.8	$	137.6	$	137.0			$	146.1	$	145.1	$	2.2	$	(5.3)
	10.6%			10.4%				10.1%				9.3%			9.5%
	12.4%			12.1%				11.9%				10.9%			11.2%
	14.1%			14.1%				13.8%				12.8%			12.8%
	7.9%			7.4%				7.3%				7.2%			7.8%
	10.2%			10.0%				9.8%				9.0%			9.6%
$	14.7	$	14.1	$	13.8			$	13.5	$	14.4	$	0.6	$	0.3
	1.2			1.2	$	1.2				1.2			-			0.0			-
	(1.0)			(1.1)				(1.2)				(1.2)			(0.6)			0.1			(0.4)
$	14.9		$	14.3			$	13.8			$	13.5		$	13.8		$	0.6		$	1.1
$	14.9	$	14.3	$	13.8			$	13.5	$	13.8	$	0.6	$	1.1
	2.5			2.5				2.5				2.5			2.5			0.0			0.0
	(0.1)			(0.1)				(0.1)				(0.1)			(0.1)			0.0			0.0
$	17.3		$	16.7			$	16.2			$	16.0		$	16.3		$	0.6		$	1.0
$	17.3	$	16.7	$	16.2			$	16.0	$	16.3	$	0.6	$	1.0
	0.8			1.0				1.0				1.0			1.0			(0.2)			(0.2)
	1.7			1.6				1.6				1.7			1.2			0.1			0.5
$	19.8		$	19.3			$	18.9			$	18.6		$	18.5		$	0.5		$	1.3
$	14.7	$	14.1	$	13.8			$	13.5	$	14.4	$	0.6	$	0.3
	(0.4)			(0.4)				(0.4)				(0.4)			(0.5)			0.0			0.1
$	14.3		$	13.7			$	13.4			$	13.1		$	14.0		$	0.6		$	0.3
$	182.2	$	185.3	$	184.1			$	182.5	$	180.6	$	(3.1)	$	1.6
	(0.4)			(0.4)				(0.4)				(0.4)			(0.5)			0.0			0.1
$	181.8		$	184.9			$	183.7			$	182.1		$	180.2		$	(3.1)		$	1.6

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 funal rule was issued by the FRB and other U.S. banking agencies in August 2020, and became effectivein 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.

4Q 2020 Preliminary Results

17

ALLY FINANCIAL INC.

LIQUIDITY

($ in billions)

							QUARTERLY TRENDS								CHANGE VS.
Consolidated Available Liquidity		4Q 20			3Q 20				2Q 20				1Q 20			4Q 19			3Q 20			4Q 19
Liquid cash and cash equivalents (1)	$	14.9	$	19.3	$	18.6			$	5.7	$	3.1	$	(4.4)	$	11.8
Highly liquid securities (2)		24.8			23.5				23.4				24.0			24.7			1.3			0.1
Current committed unused capacity			0.6			1.4				1.6				0.4			2.1			(0.8)			(1.5)
Total current available liquidity		$	40.3		$	44.2			$	43.5			$	30.1		$	29.9		$	(3.9)		$	10.4
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 and Agency MBS
3. Excludes retail notes, demand notes and trust preferred securities; as of 12/31/2020. Reflects notional value of outstanding bond. Excludes total GAAP OID and capitalized transaction costs.

4Q 2020 Preliminary Results

18

ALLY FINANCIAL INC.

NET INTEREST MARGIN AND DEPOSITS

($ in millions)						QUARTERLY TRENDS							CHANGE VS.					FULL YEAR
Average Balance Details		4Q 20			3Q 20				2Q 20			1Q 20			4Q 19			3Q 20			4Q 19			FY 2020			FY 2019			CHANGE
Retail Auto Loans	$	73,401	$	72,999	$	72,262	$	72,550	$	72,626	$	402	$	775	$	72,805	$	72,268	$	537
Auto Lease (net of dep)		9,587			9,317				9,068			9,078			8,749			270			838			9,264			8,509			755
Commercial Auto		22,418			21,265				26,106			30,472			31,921			1,153			(9,503)			25,048			33,886			(8,838)
Commercial Finance		6,203			6,188				6,580			6,088			5,526			15			677			6,265			5,162			1,103
Mortgage		15,445			17,096				17,422			17,296			17,140			(1,651)			(1,695)			16,812			17,473			(661)
Cash and Cash Equivalents		17,758			20,719				12,496			4,853			3,811			(2,961)			13,947			13,985			3,837			10,148
Investment Securities and Other(1)		33,697			32,529				32,596			33,083			34,056			1,168			(359)			32,976			32,597			379
Total Earning Assets	$	178,509	$	180,113	$	176,530	$	173,420	$	173,829	$	(1,604)	$	4,680	$	177,155	$	173,732	$	3,423
Interest Revenue		1,947			1,970				1,926			2,103			2,180			(23)			(233)			7,946			8,876			(930)
Unsecured Debt (ex. Core OID balance) (2)(5)	$	12,735	$	12,315	$	11,627	$	12,182	$	12,741	$	420	$	(6)	$	12,216	$	12,831	$	(614)
Secured Debt		5,289			6,154				8,122			9,193			9,563			(866)			(4,275)			7,181			12,302			(5,121)
Deposits (3)		135,642			132,964				127,014			121,217			120,057			2,679			15,585			129,238			115,385			13,853
Other Borrowings (4)		9,462			14,427				16,567			17,302			18,000			(4,966)			(8,538)			14,426			20,097			(5,671)
Total Funding Sources (ex. Core OID balance) (2)	$	163,128	$	165,860	$	163,330	$	159,894	$	160,361	$	(2,732)	$	2,767	$	163,061	$	160,615	$	2,446
Interest Expense (ex. Core OID) (2)		635			761				863			949			1,016			(126)			(381)			3,207			4,215			(1,008)
Net Financing Revenue (ex. Core OID) (2)	$	1,312	$	1,209	$	1,063	$	1,154	$	1,164	$	103	$	148	$	4,739	$	4,661	$	78

Net Interest Margin (yield details)

Retail Auto Loan

Retail Auto Loan (excl. hedge impact)

Auto Lease (net of dep)

Commercial Auto

Corporate Finance

Mortgage

Cash and Cash Equivalents

Investment Securities and Other(1)

Total Earning Assets

Unsecured Debt (ex. Core OID & Core OID balance) (2)(5) Secured Debt

Deposits (3)

Other Borrowings(4)

Total Funding Sources (ex. Core OID & Core OID balance) (2) NIM (as reported)

NIM (ex. Core OID & Core OID balance) (2) Ally Bank Deposits

Key Deposit Statistics

Average retail CD maturity (months)

Average retail deposit rate

End of Period Deposit Levels

Retail

Brokered & other

Total deposits

Deposit Mix

Retail CD

MMA/OSA/Checking

Brokered

	6.57%			6.56%			6.48%			6.54%			6.68%			0.01%			(0.10)%	6.54%	6.60%	(0.06)%
	6.83%			6.83%			6.77%			6.66%			6.74%			-%			0.09%	6.77%	6.61%	0.17%
	7.82%			7.89%			4.10%			5.22%			5.19%			(0.07)%			2.64%	6.30%	5.74%	0.56%
	3.34%			3.30%			3.55%			4.11%			4.25%			0.04%			(0.92)%	3.62%	4.61%	(0.99)%
	5.69%			5.40%			5.64%			6.27%			6.65%			0.30%			(0.96)%	5.74%	7.23%	(1.49)%
	2.74%			3.00%			3.15%			3.45%			3.46%			(0.26)%			(0.72)%	3.09%	3.63%	(0.54)%
	0.10%			0.11%			0.12%			1.16%			1.61%			(0.01)%			(1.52)%	0.20%	2.02%	(1.83)%
	1.86%			2.28%			2.55%			2.85%			2.83%			(0.42)%			(0.97)%		2.38%		2.98%		(0.59)%
	4.34%			4.35%			4.39%			4.88%			4.97%			(0.01)%			(0.63)%	4.49%	5.11%	(0.62)%
	5.45%			5.74%			6.11%			6.32%			6.20%			(0.28)%			(0.75)%	5.89%	6.26%	(0.37)%
	3.07%			2.94%			2.64%			2.82%			2.92%			0.11%			0.14%	2.84%	3.07%	(0.23)%
	1.08%			1.35%			1.72%			1.97%			2.11%			(0.29)%			(1.03)%	1.51%	2.20%	(0.69)%
	2.18%			2.36%			2.25%			2.34%			2.42%			(0.18)%			(0.24)%		2.29%		2.47%		(0.18)%
	1.55%			1.82%			2.13%			2.39%			2.51%			(0.28)%			(0.96)%	1.97%	2.62%	(0.65)%
	2.90%			2.65%			2.40%			2.66%			2.64%			0.25%			0.26%	2.65%	2.67%	(0.02)%
	2.92%			2.67%			2.42%			2.68%			2.66%			0.25%			0.26%	2.67%	2.68%	(0.01)%
	19.7			19.6			19.6			19.9			20.1			0.1			(0.4)
	0.97%			1.26%			1.64%			1.88%			2.02%
$	124,357	$	120,789	$	115,813	$	106,068	$	103,734	$	3,568	$	20,623
	12,680			14,149			15,223			16,256			17,018			(1,469)			(4,338)
$	137,036	$	134,938	$	131,036	$	122,324	$	120,752	$	2,098	$	16,284
	33%			34%			36%			38%			37%
	58%			56%			53%			49%			49%
	9%			10%			11%			13%			14%

1. 'Other' includes held-for-investment consumer loans associated with Health Credit Services (HCS), now Ally Lending.
2. Represents a non-GAAP financial measure. Excludes Core OID from interest expense and Core OID balance from Unsecured Debt.
3. Includes retail, brokered, and other deposits. Brokered includes sweep deposits. Other includes mortgage escrow and other deposits.
4. Includes Demand Notes, FHLB Borrowings and Repurchase Agreements.
5. Includes trust preferred securities.

4Q 2020 Preliminary Results

19

ALLY FINANCIAL INC.

ALLY BANK CONSUMER MORTGAGE HFI PORTFOLIOS (PERIOD-END)

($ in billions)						QUARTERLY TRENDS
Mortgage Finance HFI Portfolio		4Q 20			3Q 20				2Q 20		1Q 20			4Q 19
Loan Value
Gross carry value	$	14.6	$	15.2	$	16.4			$	15.9	$	16.2
Net carry value	$	14.6	$	15.1	$	16.4			$	15.9	$	16.2
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%			1.3%				0.6%				0.5%			0.5%
% Low/No documentation		0.2%			0.2%				0.2%				0.2%			0.1%
% Non-primary residence		4.8%			4.7%				4.6%				4.5%			4.5%
Refreshed FICO(3)		776			776				774				772			774
Wtd. Avg. LTV/CLTV (4)		60.1%			60.3%				60.4%				60.0%			60.3%
Corporate Other Legacy Mortgage HFI Portfolio
Loan Value
Gross carry value	$	0.5	$	0.9	$	1.0			$	1.1	$	1.1
Net carry value	$	0.5	$	0.9	$	1.0			$	1.0	$	1.1
Estimated Pool Characteristics
% Second lien		19.8%			12.6%				13.2%				13.6%			13.9%
% Interest only		0.1%			0.1%				0.1%				0.1%			0.1%
% 30+ Day delinquent(1)(2)		7.1%			4.7%				4.0%				5.1%			5.4%
% Low/No documentation		22.2%			24.0%				23.4%				23.1%			23.5%
% Non-primary residence		3.6%			7.1%				6.9%				7.1%			7.2%
Refreshed FICO(3)		733			733				730				730			730
Wtd. Avg. LTV/CLTV (4)		62.8%			59.2%				62.1%				63.0%			63.8%

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

4Q 2020 Preliminary Results

20

ALLY FINANCIAL INC.

EARNINGS PER SHARE RELATED INFORMATION

($ in millions, shares in thousands)					QUARTERLY TRENDS							CHANGE VS.					FULL YEAR
Earnings Per Share Data		4Q 20			3Q 20			2Q 20			1Q 20			4Q 19			3Q 20			4Q 19			FY 2020			FY 2019			CHANGE
GAAP net income (loss) attributable to common shareholders	$	687	$	476	$	241	$	(319)	$	378	$	211	$	309	$	1,085	$	1,715	$	(630)
Weighted-average common shares outstanding - basic (1)		376,081			375,658			375,051			375,723			380,793			423			(4,712)			375,629			393,234			(17,605)
Weighted-average common shares outstanding - diluted (1)		378,424			377,011			375,762			375,723			383,391			1,412			(4,968)			377,101			395,395			(18,294)
Issued shares outstanding (period-end)		374,674			373,857			373,837			373,155			374,332			817			342			374,674			374,332			342
Net income (loss) per share - basic (1)	$	1.83		$	1.27		$	0.64		$	(0.85)		$	0.99		$	0.56		$	0.83		$	2.89		$	4.36		$	(1.47)
Net income (loss) per share - diluted (1)	$	1.82	$	1.26	$	0.64	$	(0.85)	$	0.99	$	0.55	$	0.83	$	2.88	$	4.34	$	(1.46)
Adjusted Earnings per Share ("Adjusted EPS")
Numerator
GAAP net income (loss) attributable to common shareholders	$	687	$	476	$	241	$	(319)	$	378	$	211	$	309	$	1,085	$	1,715	$	(630)
Discontinued operations, net of tax		-			-			1			-			3			0			(3)			1			6			(5)
Core OID		9			9			9			8			8			0			2			36			29			6
Change in the fair value of equity securities (2)		(111)			(13)			(90)			185			(29)			(98)			(83)			(29)			(89)			60
Core OID & change in the fair value of equity securities tax (tax rate 21%)		21			1			17			(41)			4			21			17			(1)			13			(14)
Repositioning and other (3)		-			-			50			-			-			-			-			50			-			50
Significant discrete tax items		-			-			-			-			-			-			-			-			(201)			201
Core net income attributable to common shareholders (4)	$	606	$	473	$	228	$	(166)	$	364	$	134	$	242	$	1,141	$	1,472	$	(331)
Denominator
Weighted-average common shares outstanding - diluted (1)		378,424			377,011			375,762			375,723			383,391			1,412			(4,968)			377,101			395,395			(18,294)
Adjusted EPS (5)	$	1.60	$	1.25	$	0.61	$	(0.44)	$	0.95	$	0.35	$	0.65	$	3.03	$	3.72	$	(0.70)
Memo
Original Issue Discount Amortization Expense
Core original issue discount (Core OID) amortization expense (6)	$	9	$	9	$	9	$	8	$	8	$	0	$	2	$	36	$	29	$	6
Other OID		3			3			4			3			3			0			0			12			13			(1)
GAAP original issue discount amortization expense	$	13	$	12	$	12	$	11	$	11	$	0	$	2	$	48	$	42	$	6
Outstanding Original Issue Discount Balance
Core outstanding original issue discount balance (Core OID balance) (7)	$	(1,027)	$	(1,037)	$	(1,046)	$	(1,055)	$	(1,063)	$	9	$	36	$	(1,027)	$	(1,063)	$	36
Other outstanding OID balance		(37)			(48)			(46)			(34)			(37)			11			0			(37)			(37)			0
GAAP outstanding original issue discount balance	$	(1,064)	$	(1,084)	$	(1,092)	$	(1,089)	$	(1,100)	$	20	$	36	$	(1,064)	$	(1,100)	$	36
Adjusted Other Revenue
GAAP Other Revenue	$	678	$	484	$	555	$	266	$	487	$	194	$	191	$	1,983	$	1,761	$	222
Change in the fair value of equity securities (2)		(111)			(13)			(90)			185			(29)			(98)			(83)			(29)			(89)			60
Adjusted Other Revenue	$	567	$	471	$	465	$	451	$	458	$	96	$	108	$	1,954	$	1,672	$	282
Net Financing Revenue (ex. Core OID)
GAAP net financing revenue	$	1,303	$	1,200	$	1,054	$	1,146	$	1,156	$	103	$	147	$	4,703	$	4,633	$	70
Core OID		9			9			9			8			8			0			2			36			29			6
Net Financing Revenue (ex. Core OID)	$	1,312	$	1,209	$	1,063	$	1,154	$	1,164	$	103	$	149	$	4,739	$	4,662	$	76
Adjusted Noninterest Expense
GAAP Noninterest expense	$	1,023	$	905	$	985	$	920	$	880	$	118	$	143	$	3,833	$	3,429	$	404
Repositioning and other (3)		-			-			(50)			-			-			-			-			(50)			-			(50)
Adjusted Noninterest Expense	$	1,023		$	905		$	935		$	920		$	880		$	118		$	143		$	3,783		$	3,429		$	354

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-effectednon-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.

4Q 2020 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		4Q 20			3Q 20			2Q 20			1Q 20			4Q 19			3Q 20			4Q 19
Numerator
GAAP common shareholder's equity	$	14.7	$	14.1	$	13.8	$	13.5	$	14.4	$	0.6	$	0.3
Goodwill and identifiable intangibles, net of DTLs		(0.4)			(0.4)			(0.4)			(0.4)			(0.5)			0.0			0.1
Tangible common equity		14.3			13.7			13.4			13.1			14.0			0.6			0.4
Tax-effected Core OID balance (21% tax rate)		(0.8)			(0.8)			(0.8)			(0.8)			(0.8)			0.0			0.0
Adjusted tangible book value (1)	$	13.5	$	12.9	$	12.6	$	12.2	$	13.1	$	0.6	$	0.4
Denominator
Issued shares outstanding (period-end, thousands)		374,674			373,857			373,837			373,155			374,332			817			342
GAAP common shareholder's equity per share	$	39.2	$	37.8	$	37.0	$	36.2	$	38.5	$	1.5	$	0.7
Goodwill and identifiable intangibles, net of DTLs per share		(1.0)			(1.0)			(1.0)			(1.2)			(1.2)			0.0			0.2
Tangible common equity per share		38.2			36.7			35.9			35.0			37.3			1.5			0.9
Tax-effected Core OID balance (21% tax rate) per share		(2.2)			(2.2)			(2.2)			(2.2)			(2.2)			0.0			0.1
Adjusted tangible book value per share(1)	$	36.1		$	34.6		$	33.7		$	32.8		$	35.1		$	1.5		$	1.0

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.

4Q 2020 Preliminary Results

22

ALLY FINANCIAL INC.

CORE ROTCE RELATED INFORMATION

($ in millions) unless noted otherwise					QUARTERLY TRENDS						CHANGE VS.				FULL YEAR
Core Return on Tangible Common Equity ("Core ROTCE")	4Q 20		3Q 20		2Q 20		1Q 20		4Q 19		3Q 20		4Q 19		FY 2020		FY 2019	CHANGE
Numerator
GAAP net income attributable to common shareholders	$	687	$	476	$	241	$	(319)	$	378	$	211	$	309	$	1,085	$	1,715			$	(630)
Discontinued operations, net of tax		-			-			1			-			3			-			(3)			1			6				(5)
Core OID		9			9			9			8			8			-			2			36			29				6
Change in the fair value of equity securities (1)		(111)			(13)			(90)			185			(29)			(98)			(83)			(29)			(89)				60
Core OID & change in the fair value of equity securities		21			1			17			(41)			4			21			17			(1)			13				(14)
tax (tax rate 21%) (1)
Repositioning and other (2)		-			-			50			-			-			-			-			50			-		50
Significant discrete tax items		-			-			-			-			-			-			-			-			(201)				201
Core net income attributable to common shareholders (3)	$	606	$	473	$	228	$	(166)	$	364	$	134	$	242	$	1,141	$	1,472			$	(331)
Denominator (average, $ billions)
GAAP shareholder's equity	$	14.4	$	14.0	$	13.7	$	14.0	$	14.4	$	0.4	$	0.0	$	14.1	$	13.8			$	0.3
Goodwill & identifiable intangibles, net of deferred tax		(0.4)			(0.4)			(0.4)			(0.4)			(0.4)			0.0			0.0			(0.4)			(0.4)				0.0
liabilities ("DTLs")
Tangible common equity	$	14.0	$	13.6	$	13.3	$	13.5	$	14.1	$	0.4	$	(0.1)	$	13.7	$	13.5			$	0.2
Core OID balance		(1.0)			(1.0)			(1.1)			(1.1)			(1.1)			0.0			0.1			(1.0)			(1.1)				0.0
Net deferred tax asset ("DTA")		(0.1)			(0.1)			(0.2)			(0.1)			(0.0)			0.0			(0.1)			(0.1)			(0.2)				0.1
Normalized common equity (4)	$	12.9	$	12.4	$	12.0	$	12.3	$	13.0	$	0.5	$	(0.1)	$	12.6	$	12.2			$	0.3
Core Return on Tangible Common Equity (5)		18.7 %			15.2%			7.6 %			(5.4)%			11.2 %									9.1 %			12.0 %

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
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.
6. 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.

4Q 2020 Preliminary Results

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ALLY FINANCIAL INC.

ADJUSTED EFFICIENCY RATIO RELATED INFORMATION

($ in millions)					QUARTERLY TREND						CHANGE VS.				FULL YEAR
Adjusted Efficiency Ratio Calculation	4Q 20		3Q 20		2Q 20		1Q 20		4Q 19		3Q 20		4Q 19			FY 2020			FY 2019	CHANGE
Numerator
GAAP Noninterest expense	$	1,023	$	905	$	985	$	920	$	880	$	118	$	143	$	3,833	$	3,429		$	404
Rep and warrant expense		(0)			-			-			-			-			(0)			(0)			(0)			(0)			0
Insurance expense		(246)			(268)			(322)			(256)			(238)			22			(8)			(1,092)			(1,013)			(79)
Repositioning		-			-			(50)			-			-			-			-			(50)			-		(50)
Adjusted noninterest expense for
$	777	$	637	$	613	$	664	$	642	$	140	$	135	$	2,691	$	2,416		$	275
the efficiency ratio

Denominator

Total net revenue

Core OID

Insurance revenue

Adjusted net revenue for the efficiency ratio

Adjusted Efficiency Ratio (2)

$1,981	$ 1,684	$ 1,609	$1,412	$1,643	$	297	$	338	$	6,686	$	6,394	$	292
9	9	9	8	8			0			2			36			29			6
(429)	(346)	(450)	(151)	(352)			(83)			(77)			(1,376)			(1,328)			(48)
$1,561	$ 1,347	$ 1,168	$1,269	$1,299	$	214	$	263	$	5,346	$	5,095	$	250
49.8 %		47.3 %		52.5 %		52.3 %		49.4 %									50.3 %			47.4 %

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

1. 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.

4Q 2020 Preliminary Results

24