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GM Financial Reports Second Quarter 2024 Operating Results

  • Second quarter net income of $610 million
  • Second quarter retail loan and operating lease originations of $13.6 billion
  • Earning assets of $120.8 billion at June 30, 2024
  • Available liquidity of $36.5 billion at June 30, 2024

GENERAL MOTORS FINANCIAL COMPANY, INC. (“GM Financial” or the “Company”) announced net income of $610 million for the quarter ended June 30, 2024, compared to $536 million for the quarter ended March 31, 2024, and $571 million for the quarter ended June 30, 2023. Net income for the six months ended June 30, 2024 was $1.1 billion, compared to $1.2 billion for the six months ended June 30, 2023.

Retail loan originations were $8.6 billion for the quarter ended June 30, 2024, compared to $8.3 billion for the quarter ended March 31, 2024, and $9.1 billion for the quarter ended June 30, 2023. Retail loan originations for the six months ended June 30, 2024 were $17.0 billion, compared to $18.2 billion for the six months ended June 30, 2023. The outstanding balance of retail finance receivables was $73.3 billion at June 30, 2024, compared to $73.2 billion at March 31, 2024 and $69.7 billion at June 30, 2023.

Operating lease originations were $5.0 billion for the quarter ended June 30, 2024, compared to $4.3 billion for the quarter ended March 31, 2024, and $4.6 billion for the quarter ended June 30, 2023. Operating lease originations for the six months ended June 30, 2024 were $9.3 billion, compared to $8.5 billion for the six months ended June 30, 2023. Leased vehicles, net was $30.3 billion at June 30, 2024, compared to $30.1 billion at March 31, 2024 and $31.6 billion at June 30, 2023.

The outstanding balance of commercial finance receivables was $17.1 billion at June 30, 2024, compared to $14.9 billion at March 31, 2024 and $11.5 billion at June 30, 2023.

Retail finance receivables 31-60 days delinquent were 2.1% of the portfolio at June 30, 2024 and 1.8% at June 30, 2023. Accounts more than 60 days delinquent were 0.7% of the portfolio at June 30, 2024 and 0.6% at June 30, 2023.

Annualized net charge-offs were 1.0% of average retail finance receivables for the quarter ended June 30, 2024 and 0.8% for the quarter ended June 30, 2023. For the six months ended June 30, 2024, annualized net charge-offs were 1.0%, compared to 0.8% for the six months ended June 30, 2023.

The Company had total available liquidity of $36.5 billion at June 30, 2024, consisting of $7.4 billion of cash and cash equivalents, $25.3 billion of borrowing capacity on unpledged eligible assets, $0.7 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 $14 million for the quarter ended June 30, 2024, compared to $32 million for the quarter ended March 31, 2024 and $37 million for the quarter ended June 30, 2023. Earnings for the six months ended June 30, 2024 were $45 million, compared to $78 million for the six months ended June 30, 2023.

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 June 30, 2024 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 June 30,

 

Six Months Ended June 30,

 

2024

 

2023

 

2024

 

2023

Revenue

 

 

 

 

 

 

 

Finance charge income

$

1,876

 

$

1,490

 

$

3,662

 

$

2,859

Leased vehicle income

 

1,803

 

 

1,820

 

 

3,603

 

 

3,638

Other income

 

239

 

 

187

 

 

464

 

 

343

Total revenue

 

3,918

 

 

3,498

 

 

7,729

 

 

6,840

Costs and expenses

 

 

 

 

 

 

 

Operating expenses

 

479

 

 

456

 

 

937

 

 

899

Leased vehicle expenses

 

972

 

 

1,011

 

 

2,019

 

 

2,050

Provision for loan losses

 

174

 

 

167

 

 

378

 

 

298

Interest expense

 

1,485

 

 

1,135

 

 

2,881

 

 

2,134

Total costs and expenses

 

3,109

 

 

2,768

 

 

6,215

 

 

5,381

Equity income

 

14

 

 

37

 

 

45

 

 

78

Income before income taxes

 

822

 

 

766

 

 

1,559

 

 

1,537

Income tax provision

 

212

 

 

195

 

 

412

 

 

382

Net income (loss)

 

610

 

 

571

 

 

1,147

 

 

1,155

Less: cumulative dividends on preferred stock

 

30

 

 

30

 

 

59

 

 

59

Net income (loss) attributable to common shareholder

$

581

 

$

541

 

$

1,088

 

$

1,096

 

Amounts may not add due to rounding.

Condensed Consolidated Balance Sheets

(Unaudited, in millions)

 

 

June 30, 2024

 

December 31, 2023

ASSETS

 

 

 

Cash and cash equivalents

$

7,448

 

$

5,282

Finance receivables, net of allowance for loan losses $2,311 and $2,344

 

88,151

 

 

84,637

Leased vehicles, net

 

30,345

 

 

30,582

Goodwill and intangible assets

 

1,176

 

 

1,184

Equity in net assets of nonconsolidated affiliates

 

1,675

 

 

1,670

Related party receivables

 

595

 

 

540

Other assets

 

7,932

 

 

8,116

Total assets

$

137,322

 

$

132,011

LIABILITIES AND SHAREHOLDERS' EQUITY

 

 

 

Liabilities

 

 

 

Secured debt

$

44,630

 

$

45,243

Unsecured debt

 

65,476

 

 

60,084

Deferred income

 

2,320

 

 

2,313

Related party payables

 

518

 

 

445

Other liabilities

 

8,841

 

 

8,383

Total liabilities

 

121,785

 

 

116,468

Total shareholders' equity

 

15,538

 

 

15,542

Total liabilities and shareholders' equity

$

137,322

 

$

132,011

 

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 June 30,

 

Six Months Ended June 30,

Originations

2024

 

2023

 

2024

 

2023

Retail finance receivables originations

$

8,623

 

$

9,102

 

$

16,952

 

$

18,206

Lease originations

 

4,963

 

 

4,585

 

 

9,271

 

 

8,511

Total originations

$

13,586

 

$

13,687

 

$

26,223

 

$

26,717

 

Three Months Ended June 30,

 

Six Months Ended June 30,

Average Earning Assets

2024

 

2023

 

2024

 

2023

Average retail finance receivables

$

73,553

 

$

68,705

 

$

73,199

 

$

67,664

Average commercial finance receivables

 

15,858

 

 

10,954

 

 

15,003

 

 

10,891

Average finance receivables

 

89,411

 

 

79,659

 

 

88,202

 

 

78,555

Average leased vehicles, net

 

30,203

 

 

31,680

 

 

30,284

 

 

31,994

Average earning assets

$

119,614

 

$

111,339

 

$

118,486

 

$

110,549

Ending Earning Assets

June 30, 2024

 

December 31, 2023

Retail finance receivables

$

73,335

 

$

72,729

Commercial finance receivables

 

17,127

 

 

14,251

Leased vehicles, net

 

30,345

 

 

30,582

Ending earning assets

$

120,807

 

$

117,562

Finance Receivables

June 30, 2024

 

December 31, 2023

Retail

 

 

 

Retail finance receivables

$

73,335

 

 

$

72,729

 

Less: allowance for loan losses

 

(2,261

)

 

 

(2,308

)

Total retail finance receivables, net

 

71,074

 

 

 

70,421

 

Commercial

 

 

 

Commercial finance receivables

 

17,127

 

 

 

14,251

 

Less: allowance for loan losses

 

(50

)

 

 

(36

)

Total commercial finance receivables, net

 

17,078

 

 

 

14,216

 

Total finance receivables, net

$

88,151

 

 

$

84,637

 

Allowance for Loan Losses

June 30, 2024

 

December 31, 2023

Allowance for loan losses as a percentage of retail finance receivables

3.1 %

 

3.2 %

Allowance for loan losses as a percentage of commercial finance receivables

0.3 %

 

0.3 %

Delinquencies

June 30, 2024

 

June 30, 2023

Loan delinquency as a percentage of retail finance receivables:

 

 

 

31 - 60 days

2.1

%

 

1.8

%

Greater than 60 days

0.7

 

 

0.6

 

Total

2.8

%

 

2.5

%

 

Three Months Ended June 30,

 

Six Months Ended June 30,

Charge-offs and Recoveries

 

2024

 

 

 

2023

 

 

 

2024

 

 

 

2023

 

Charge-offs

$

411

 

 

$

323

 

 

$

816

 

 

$

645

 

Less: recoveries

 

(222

)

 

 

(191

)

 

 

(434

)

 

 

(377

)

Net charge-offs

$

189

 

 

$

132

 

 

$

382

 

 

$

269

 

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

 

1.0

%

 

 

0.8

%

 

 

1.0

%

 

 

0.8

%

 

Three Months Ended June 30,

 

Six Months Ended June 30,

Operating Expenses

2024

 

2023

 

2024

 

2023

Operating expenses as an annualized percentage of average earning assets

1.6 %

 

1.6 %

 

1.6 %

 

1.6 %

 

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