Ally Financial Inc - Company Profile

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Ally Financial Inc: Segment Analysis

Business Description

Ally Financial Inc (Ally Financial) is a provider of banking and dealer finance services to retail, business and corporate clients, and automotive dealers. As of December 31, 2022, it reported assets of US$191.8 billion, net finance receivables and loans of US$132 billion, and deposits of US$152.3 billion.

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Business Segments

Overview

Offers automotive financing services to consumers and automotive dealers, and automotive and equipment financing services to municipalities and companies. Automotive finance services comprise loans and leases, retail installment sales contracts, financing dealer floor-plans, term loans, other lines of credit to warehouse lines of companies, fleet financing, and financing to municipalities and companies for buying or leasing vehicles and equipment, and vehicle remarketing services. Strives to strengthen and expand its dealer relationships.

Performance

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Overview

Comprises centralized corporate treasury activities such as management of corporate investment securities, cash, and loan portfolios, retail and brokered deposit liabilities, short and long-term debts, original issue discount, derivative instruments, and the residual impact of corporate funds-transfer pricing. Contains equity investments that include Federal Home Loan Bank and Federal Reserve System stocks, administration of legacy mortgage portfolio that contains loans originated before January 1, 2009, eliminations, and reclassification among the reportable operating segments.

Performance

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Overview

Offers senior secured leveraged asset-based loans and cash flow to the US-based middle-market companies. Offers commercial real estate product to companies in the health-care industry. Emphasizes on businesses owned by private equity sponsors with loans mainly used for mergers and acquisitions, leveraged buyouts, restructuring, debt refinancing, and working capital. Also provides financing to technology- and healthcare-based companies.

Performance

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Overview

Provides insurance products and consumer financial protection through the automotive dealer channel. Sells commercial insurance offerings directly to dealers. Underwrites commercial insurance coverage that mainly insure dealer’s wholesale vehicle inventory. Offers vehicle service contracts (VSCs), guaranteed asset protection waivers (GAP), and vehicle maintenance contracts (VMCs) to dealers.

Performance

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Overview

Comprises management of held-for-investment and sale of consumer mortgage loan portfolio that contains bulk purchases of high-quality low-to-moderate income (LMI) and jumbo mortgage loans originated from third-parties. Also offers direct-to-consumer mortgage under Ally Home brand, which comprises a wide range of jumbo and conforming fixed and adjustable-rate mortgage products with the intervention of a third-party fulfillment partner. Jumbo mortgage loans are accounted for as held-for-investment and conforming mortgage loans are accounted for held-for-sale.

Performance

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