Ally Financial Inc at BancAnalysts Association Of Boston Conference Transcript

The following is excerpted from the question-and-answer section of the transcript.

Question: Ruth Nagle - Fidelity Investments - Analyst : Okay. So I'm going to just kind of start high level. And I think you've had very strong results this year after some challenges in previous year. So could we just kind of start from the very high level on where we finished Q3 and Q4? How does that kind of set us up for your 2026 outlook?

Question: Ruth Nagle - Fidelity Investments - Analyst : Great. Okay. So maybe you mentioned the drivers to the ROE. So let's turn to some of those drivers. The NIM expansion is central to the investment case. So the Fed cut rates just last week, I think it was last week. And it looks like there could be another rate cut even in December. So can you talk about how the NIM evolves from here? And with the lower rates, what that means to that high 3s target you have?

Question: Ruth Nagle - Fidelity Investments - Analyst : Okay. Thanks. I guess the other area to touch on is on average assets. And I think you've talked about them being down for the year. But we've actually seen some growth happening. And I think you've also kind of adjusted that outlook to say that end of period would be -- would actually see some higher balance. So can you -- maybe just talk about the momentum you see and how that comes through to 2026?

Question: Ruth Nagle - Fidelity Investments - Analyst : So maybe we could pivot to competition because I think that there's been banks that have been more interested in the space. They tend to come in and come out, and it seems like this is a period where we are seeing -- more traditional banks come back into the auto space. Can you talk about what that looks like? And what that means for the competitive environment and yields?

Question: Ruth Nagle - Fidelity Investments - Analyst : Okay. Thanks. So the other kind of area that I think to talk about is credit performance. And that's also part of the Ally improvement of normalization of auto credits. So you've mentioned that we saw in the third-quarter results, so that's going the right way. The concern in the market is like we see these other players that are having problems. And so I think it'd be really interesting to hear your thoughts about what you think for Ally and what that looks like? And you've kind of already highlighted that it's normalizing, but how does that -- the industry kind of impact any of that for you?

Question: Ruth Nagle - Fidelity Investments - Analyst : So Russ, is there any difference you can see in the -- your subprime book? I mean, I know you've also originated a lot more of the S prime. That's grown in your origination volumes. But if you kind of think about that 9% to 10% that you have at subprime, is there any new trend or anything to call out there?

Question: Ruth Nagle - Fidelity Investments - Analyst : Okay. Thanks. And then just kind of another topical news is the US government shutdown. Is that -- has that shown up anywhere in either demand or credit or anything -- any comments around the US government shutdown?

Question: Ruth Nagle - Fidelity Investments - Analyst : Okay. So I know you mentioned this. I mean, you've tightened underwriting a couple of years ago now. Has there been -- have you made any additional changes in underwriting?

Question: Ruth Nagle - Fidelity Investments - Analyst : Okay. I'm going to pivot for a little bit, and I'm sure we'll get back to auto finance again. But I want to talk about the Corporate Finance business because it's also been some news flow around that with the NDFI exposure that you have and some other people having issues in that segment. So I think you have about $4 billion of exposure. Can you just spend a minute talking about where that exposure is? And how you think about that part of your portfolio?

Question: Ruth Nagle - Fidelity Investments - Analyst : And Russ, does -- is there any industry concentrations or specific focus areas? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. NOVEMBER 07, 2025 / 12:30PM, ALLY.N - Ally Financial Inc at BancAnalysts Association Of Boston Conference

Question: Ruth Nagle - Fidelity Investments - Analyst : Okay. Maybe we could focus on some of the other revenue sources that you have because I think you've been trying to build out more fee-based revenues. Can you talk a little bit about those opportunities?

Question: Ruth Nagle - Fidelity Investments - Analyst : And no credit exposure to it.

Question: Ruth Nagle - Fidelity Investments - Analyst : Okay. Thanks. Why don't we switch to expenses. I think, again, talking about the 15% ROE project target. Expenses and disciplined expense management is a key part of getting that. So can you talk a little bit about areas of investing? Because I feel like there's always new technology, new opportunities to invest and how you balance that with keeping expenses -- expense growth moderate?

Question: Ruth Nagle - Fidelity Investments - Analyst : Do you have any big tech investment plans, any big initiatives or projects coming up? Or is it -- should we think about it as more kind of investment as usual?

Question: Ruth Nagle - Fidelity Investments - Analyst : Okay. So I want to -- before we open up for questions, I want to ask about capital because that's been also an area of focus that you've been building capital. And if we look at your adjusted CET1, you're now at 8%, which is kind of getting, I think, towards your goal of 9%. Can you talk about kind of the trajectory to get to 9% and then the opportunity to start repurchasing shares because you are very -- you generate organic capital. So let's talk about that. REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. NOVEMBER 07, 2025 / 12:30PM, ALLY.N - Ally Financial Inc at BancAnalysts Association Of Boston Conference

Question: Ruth Nagle - Fidelity Investments - Analyst : Okay. Thanks. I'm going to poll the audience and see if there's any questions for Russ. We have one upfront. Unidentified Participant Russ, thanks for your time coming here. Question just on how you're thinking about used car prices, how they're trajecting? There's been some news recently with some softness there and give us a sense as to how you're managing through that.

Question: Ruth Nagle - Fidelity Investments - Analyst : Used car prices are still significantly above pre-pandemic level?

Question: Ruth Nagle - Fidelity Investments - Analyst : And what does the supply look like for the dealers today? I mean, is the new autos -- I know for a while, there was limited supply. Is that normalized?

Question: Ruth Nagle - Fidelity Investments - Analyst : I think we can stop there. I think we're out of time. So Russ, thank you very much. Appreciate you coming. REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. NOVEMBER 07, 2025 / 12:30PM, ALLY.N - Ally Financial Inc at BancAnalysts Association Of Boston Conference