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GM Financial Reports Third Quarter 2022 Operating Results

  • Third quarter net income of $688 million
  • Third quarter retail loan and operating lease originations of $12.9 billion
  • Earning assets of $106.7 billion at September 30, 2022
  • Available liquidity of $28.3 billion at September 30, 2022

GENERAL MOTORS FINANCIAL COMPANY, INC. (“GM Financial” or the “Company”) announced net income of $688 million for the quarter ended September 30, 2022, compared to $829 million for the quarter ended June 30, 2022, and $822 million for the quarter ended September 30, 2021. Net income for the nine months ended September 30, 2022 was $2.5 billion, compared to $2.9 billion for the nine months ended September 30, 2021.

Retail loan originations were $9.4 billion for the quarter ended September 30, 2022, compared to $9.0 billion for the quarter ended June 30, 2022, and $7.8 billion for the quarter ended September 30, 2021. Retail loan originations for the nine months ended September 30, 2022 were $26.4 billion, compared to $25.2 billion for the nine months ended September 30, 2021. The outstanding balance of retail finance receivables, net of fees was $63.5 billion at September 30, 2022, compared to $58.1 billion at December 31, 2021 and $57.4 billion at September 30, 2021.

Operating lease originations were $3.5 billion for the quarter ended September 30, 2022, compared to $3.9 billion for the quarter ended June 30, 2022, and $3.8 billion for the quarter ended September 30, 2021. Operating lease originations for the nine months ended September 30, 2022 were $10.9 billion, compared to $15.5 billion for the nine months ended September 30, 2021. Leased vehicles, net was $33.8 billion at September 30, 2022, compared to $37.9 billion at December 31, 2021 and $39.7 billion at September 30, 2021.

The outstanding balance of commercial finance receivables, net of fees was $9.5 billion at September 30, 2022, compared to $6.8 billion at December 31, 2021 and $4.4 billion at September 30, 2021.

Retail finance receivables 31-60 days delinquent were 1.9% of the portfolio at September 30, 2022 and 1.7% at September 30, 2021. Accounts more than 60 days delinquent were 0.6% of the portfolio at September 30, 2022 and 0.5% at September 30, 2021.

Annualized net charge-offs were 0.7% of average retail finance receivables for the quarter ended September 30, 2022 and 0.5% for the quarter ended September 30, 2021. For the nine months ended September 30, 2022, annualized net charge-offs were 0.7%, compared to 0.6% for the nine months ended September 30, 2021.

The Company had total available liquidity of $28.3 billion at September 30, 2022, consisting of $4.1 billion of cash and cash equivalents, $20.8 billion of borrowing capacity on unpledged eligible assets, $0.5 billion of borrowing capacity on committed unsecured lines of credit, $1.0 billion of borrowing capacity on the Junior Subordinated Revolving Credit Facility from GM, and $2.0 billion of borrowing capacity on the GM Revolving 364-Day Credit Facility.

Earnings resulting from the Company's equity investment in joint ventures that conduct automotive finance operations in China were $44 million for the quarter ended September 30, 2022, compared to $50 million for the quarter ended June 30, 2022 and $53 million for the quarter ended September 30, 2021. Earnings for the nine months ended September 30, 2022 were $148 million, compared to $157 million for the nine months ended September 30, 2021.

About GM Financial

General Motors Financial Company, Inc. is the wholly owned captive finance subsidiary of General Motors Company and is headquartered in Fort Worth, Texas. Additional materials addressing the Company’s results of operations for the quarter ended September 30, 2022 can be accessed via the Investor Relations section of the Company’s website at https://investor.gmfinancial.com.

General Motors Financial Company, Inc.

Condensed Consolidated Statements of Income

(Unaudited, in millions)

 

 

Three Months Ended September 30,

 

Nine Months Ended September 30,

 

2022

 

2021

 

2022

 

2021

Revenue

 

 

 

 

 

 

 

Finance charge income

$

1,158

 

$

1,035

 

$

3,230

 

$

3,087

Leased vehicle income

 

1,912

 

 

2,246

 

 

5,967

 

 

6,871

Other income

 

118

 

 

73

 

 

292

 

 

229

Total revenue

 

3,187

 

 

3,354

 

 

9,489

 

 

10,187

Costs and expenses

 

 

 

 

 

 

 

Operating expenses

 

436

 

 

381

 

 

1,202

 

 

1,170

Leased vehicle expenses

 

939

 

 

1,088

 

 

2,650

 

 

3,157

Provision for loan losses

 

180

 

 

141

 

 

500

 

 

174

Interest expense

 

764

 

 

704

 

 

1,984

 

 

1,987

Total costs and expenses

 

2,320

 

 

2,314

 

 

6,336

 

 

6,488

Equity income

 

44

 

 

53

 

 

148

 

 

157

Income before income taxes

 

911

 

 

1,093

 

 

3,301

 

 

3,856

Income tax provision

 

223

 

 

271

 

 

822

 

 

976

Net income (loss)

 

688

 

 

822

 

 

2,479

 

 

2,880

Less: cumulative dividends on preferred stock

 

30

 

 

30

 

 

89

 

 

89

Net income (loss) attributable to common shareholder

$

659

 

$

792

 

$

2,390

 

$

2,791

 

Amounts may not add due to rounding.

Condensed Consolidated Balance Sheets

(Unaudited, in millions)

 

 

September 30, 2022

 

December 31, 2021

ASSETS

 

 

 

Cash and cash equivalents

$

4,079

 

$

3,948

Finance receivables, net of allowance for loan losses of $2,086 and $1,886

 

70,845

 

 

62,979

Leased vehicles, net

 

33,778

 

 

37,929

Goodwill

 

1,168

 

 

1,169

Equity in net assets of non-consolidated affiliates

 

1,705

 

 

1,717

Related party receivables

 

506

 

 

301

Other assets

 

7,730

 

 

5,743

Total assets

$

119,811

 

$

113,786

LIABILITIES AND SHAREHOLDERS' EQUITY

 

 

 

Liabilities

 

 

 

Secured debt

$

40,733

 

$

39,338

Unsecured debt

 

53,090

 

 

53,223

Deferred income

 

2,299

 

 

2,551

Related party payables

 

213

 

 

313

Other liabilities

 

8,384

 

 

4,567

Total liabilities

 

104,720

 

 

99,992

Total shareholders' equity

 

15,091

 

 

13,794

Total liabilities and shareholders' equity

$

119,811

 

$

113,786

 

Amounts may not add due to rounding.

Operational and Financial Data

(Unaudited, Dollars in millions)

Amounts may not add due to rounding

 

 

Three Months Ended September 30,

 

Nine Months Ended September 30,

Originations

2022

 

2021

 

2022

 

2021

Retail finance receivables originations

$

9,396

 

$

7,800

 

$

26,431

 

$

25,163

Lease originations

$

3,503

 

$

3,849

 

$

10,915

 

$

15,482

 

Three Months Ended September 30,

 

Nine Months Ended September 30,

Average Earning Assets

2022

 

2021

 

2022

 

2021

Average retail finance receivables

$

62,549

 

$

57,216

 

$

60,614

 

$

54,962

Average commercial finance receivables

 

8,200

 

 

4,994

 

 

7,655

 

 

6,436

Average finance receivables

 

70,749

 

 

62,210

 

 

68,269

 

 

61,398

Average leased vehicles, net

 

34,581

 

 

40,255

 

 

35,943

 

 

40,266

Average earning assets

$

105,330

 

$

102,465

 

$

104,212

 

$

101,664

Ending Earning Assets

September 30, 2022

 

December 31, 2021

Retail finance receivables, net of fees

$

63,461

 

$

58,093

Commercial finance receivables, net of fees

 

9,471

 

 

6,772

Leased vehicles, net

 

33,778

 

 

37,929

Ending earning assets

$

106,710

 

$

102,794

Finance Receivables

September 30, 2022

 

December 31, 2021

Retail

 

 

 

Retail finance receivables, net of fees

$

63,461

 

 

$

58,093

 

Less: allowance for loan losses

 

(2,044

)

 

 

(1,839

)

Total retail finance receivables, net

 

61,416

 

 

 

56,254

 

Commercial

 

 

 

Commercial finance receivables, net of fees

 

9,471

 

 

 

6,772

 

Less: allowance for loan losses

 

(42

)

 

 

(47

)

Total commercial finance receivables, net

 

9,429

 

 

 

6,725

 

Total finance receivables, net

$

70,845

 

 

$

62,979

 

Allowance for Loan Losses

September 30, 2022

 

December 31, 2021

Allowance for loan losses as a percentage of retail finance receivables, net of fees

3.2

%

 

3.2

%

Allowance for loan losses as a percentage of commercial finance receivables, net of fees

0.4

%

 

0.7

%

Delinquencies

September 30, 2022

 

September 30, 2021

Loan delinquency as a percentage of ending retail finance receivables:

 

 

 

31 - 60 days

1.9

%

 

1.7

%

Greater than 60 days

0.6

 

 

0.5

 

Total

2.5

%

 

2.2

%

 

Three Months Ended September 30,

 

Nine Months Ended September 30,

Charge-offs and Recoveries

2022

 

2021

 

2022

 

2021

Charge-offs

$

289

 

 

$

207

 

 

$

811

 

 

$

664

 

Less: recoveries

 

(171

)

 

 

(133

)

 

 

(510

)

 

 

(426

)

Net charge-offs

$

118

 

 

$

74

 

 

$

301

 

 

$

238

 

Net charge-offs as an annualized percentage of average retail finance receivables

 

0.7

%

 

 

0.5

%

 

 

0.7

%

 

 

0.6

%

 

Three Months Ended September 30,

 

Nine Months Ended September 30,

Operating Expenses

2022

 

2021

 

2022

 

2021

Operating expenses as an annualized percentage of average earning assets

1.6

%

 

1.5

%

 

1.5

%

 

1.5

%

 

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