Investor Presentaiton
Auto Finance
4Q 2023 Preliminary Results
•
Auto pre-tax income of $294 million
•
Pre-tax income down YoY, primarily driven by lower net loss
performance in prior year period
Provision expense up QoQ driven by seasonal trends
Net financing revenue up YoY as strength in portfolio yield more
than offsets higher funding cost
Estimated retail originated yield of 10.81%, up 124bps YoY
Continued strength in retail auto originated yields driven by record
application flow and an accommodative origination environment
Portfolio migration driving retail auto portfolio yields ↑ 100bps YoY,
with continued momentum over the medium term driven by
strength in fixed rate pricing
Key Financials ($ millions)
Net financing revenue
Total other revenue
Total net revenue
Provision for credit losses
Noninterest expense (1)
Pre-tax income
Auto earning assets (EOP)
Key Statistics
Inc / (Dec) v.
4Q 23
3Q 23
4Q 22
$
1,330
$
(30)
$
5
82
3
(10)
1,412
(27)
(5)
492
48
116
626
8
22
$
294
$
(83)
$
(143)
$ 116,932
$
557
$
3,795
Remarketing gains ($ millions)
Average gain per vehicle
$
37
$
(20) $
6
$
1,422
Off-lease vehicles terminated (# units)
Application volume (# thousands)
26,237
3,321
(3,247)
(353)
$ (522) $ (54)
5,318
455
Retail Auto Yield Trends
40%
41%
43%
S-tier
Origination
Lease Portfolio Trends
Mix
31%
30%
Estimated
10.91%
10.68%
10.81% Originated
10.39%
Yield(2)
9.57%
8.81%
8.90%
8.98%
Portfolio
Yield
8.49%
7.98%
4Q 22
1Q 23
2Q 23
3Q 23
4Q 23
79%
76%
76%
76%
67%
Lessee &
Dealer
Buyout %
$70
$57
$31
4Q 22
$47
$37
1Q 23
2Q 23
3Q 23
4Q 23
$1,932
$2,335
$1,944
(2)
Portfolio Yield ex. Hedge:
7.37%
7.66%
7.87%
8.16%
8.43%
Estimated Retail Auto Originated Yield is a forward-looking financial measure. See page 38 for details.
For additional footnotes see page 39.
Avg. Gain/Unit
$1,476
$1,422
Remarketing
Gains
($ millions)
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