Investor Presentaiton
4Q 2023 Preliminary Results
Retail Auto Credit Performance
2023 NCOs in-line with guide (1.8%); seasonally adjusted NCOs to peak in first half of 2024
Full year 2023 NCO rate of 1.77%; 4Q NCOs at low-end of 2.2% -2.4% guide driven by stable flow-to-loss rates and
strong front book performance, partially offset by softer used vehicle values
1H '24 NCO rates expected to be impacted by ↓ used vehicle values, ↑ unemployment and peak losses on
2H '22 vintage (~18 mos. on book), partially offset by strong front book performance
Used vehicle values ↓ ~5% in 1H ‘24; unemployment peaking at 4.4%
Year-over-year change in 30+ day delinquency rates ↓ four quarters in a row
'23 vintage 30+ day DQs currently outperforming ‘22 vintage and continues to improve with each additional month on book
Recent originations contain a higher mix of loans from the highest credit tier (2Q '23 and forward), supporting lower
seasonally adjusted NCOs in 2H '24 as 2023 vintages reach peak loss
Change in YoY 30-Day DQ Rates (1)
30+ Day DQs by Vintage (1)
2022 | 2023
Retail Auto Portfolio Mix by Vintage
2.45%
0.82% excluding
impact from retail
auto loan sales
1.42%
1.22%
1.08%
0.92%
0.86%
1.23%
1.29%
MO. 7
2.45%
2.23%
2.2.3%
MO. 12
2023
2024
38%
38%
4Q 22
1Q 23 2Q 23
3Q 23 4Q 23
13579 11 13 15
Months
17
19 21
23
(1)
Includes accruing contracts only
2022
2023
29%
27%
2022
19%
'21 and
33%
'21 and
Prior
Prior
16%
4Q '23
4Q '24
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