Ally Financial (ALLY) BancAnalysts Association of Boston Conference summary

Business momentum and strategic positioning

• Strong momentum in auto finance, digital banking, and corporate finance, with record application flow and deposit growth.

• Fully deposit-funded, enabling focus on pricing optimization and customer engagement.

• Corporate finance business on track for record pre-tax profit, with no charge-offs year-to-date.

• 15 years building the digital bank, 25 years in corporate finance, and over a century in auto finance.

• Positioned for net revenue growth through margin expansion and fee-driven business growth.

Balance sheet and portfolio mix

• Balance sheet growth expected to remain flat, but underlying portfolio mix is shifting.

• Running off lower-yielding assets like mortgages, while growing higher-yielding retail auto and corporate finance loans.

• Commercial loan balances are 25% below pre-pandemic levels, while retail loans and insurance are growing.

• Deposit funding at 90%, up from 75% pre-pandemic, supporting margin expansion.

Deposit and pricing strategy

• Shifted deposit strategy in 2024, reducing deposit pricing ahead of competitors.

• Optimizing deposit portfolio by increasing balances among engaged, less rate-sensitive customers.

• Focus on customers attracted by digital experience and value-added products.