GM Financial Reports March Quarter 2017 Operating Results

• March quarter net income of $202 million
• Retail loan and lease originations of $12.8 billion for the March quarter
• End of period earning assets of $85.1 billion
• Available liquidity of $12.4 billion at quarter-end

FORT WORTH, Texas--(BUSINESS WIRE)--GENERAL MOTORS FINANCIAL COMPANY, INC. (“GM Financial” or the “Company”) announced net income of $202 million for the quarter ended March 31, 2017, compared to $164 million for the quarter ended March 31, 2016.

Retail loan originations were $6.5 billion for the quarter ended March 31, 2017, compared to $4.7 billion for the quarter ended December 31, 2016, and $4.1 billion for the quarter ended March 31, 2016. The outstanding balance of retail finance receivables was $36.0 billion at March 31, 2017.

Operating lease originations were $6.3 billion for the quarter ended March 31, 2017, compared to $5.9 billion for the quarter ended December 31, 2016, and $6.8 billion for the quarter ended March 31, 2016. Leased vehicles, net was $37.3 billion at March 31, 2017.

The outstanding balance of commercial finance receivables was $11.8 billion at March 31, 2017 compared to $11.1 billion at December 31, 2016 and $9.2 billion at March 31, 2016.

Retail finance receivables 31-60 days delinquent were 2.8% of the portfolio at March 31, 2017 and 3.1% at March 31, 2016. Accounts more than 60 days delinquent were 1.2% of the portfolio at March 31, 2017 and 1.4% at March 31, 2016.

Annualized net charge-offs were 1.9% of average retail finance receivables for the quarter ended March 31, 2017 and 1.9% for the quarter ended March 31, 2016.

The Company had total available liquidity of $12.4 billion at March 31, 2017, consisting of $2.7 billion of cash and cash equivalents, $8.3 billion of borrowing capacity on unpledged eligible assets, $0.4 billion of borrowing capacity on committed unsecured lines of credit and $1.0 billion of borrowing capacity on a Junior Subordinated Revolving Credit Facility from GM.

Earnings resulting from the Company's equity investment in SAIC-GMAC, a joint venture that conducts auto finance operations in China, were $47 million for the three months ended March 31, 2017 compared to $42 million for the three months ended December 31, 2016, and $36 million for the three months ended March 31, 2016.

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. For more information, visit www.gmfinancial.com.

Forward-Looking Statements

This presentation contains several “forward-looking statements.” Forward-looking statements are those that use words such as “believe,” “expect,” “intend,” “plan,” “may,” “likely,” “should,” “estimate,” “continue,” “future” or "anticipate" and other comparable expressions. These words indicate future events and trends. Forward-looking statements are our current views with respect to future events and financial performance. These forward-looking statements are subject to many assumptions, risks and uncertainties that could cause actual results to differ significantly from historical results or from those anticipated by us. The most significant risks are detailed from time to time in our filings and reports with the Securities and Exchange Commission, including our annual report on Form 10-K for the year ended December 31, 2016. Such risks include - but are not limited to - GM’s ability to sell new vehicles that we finance in the markets we serve in North America, Latin America, China and Europe, particularly the United Kingdom where automobile sales may be negatively impacted due to the passage of the referendum to discontinue its membership in the European Union; the viability of GM-franchised dealers that are commercial loan customers; the availability and cost of sources of financing; the level of net charge-offs, delinquencies and prepayments on the loans and leases we originate; the effect, interpretation or application of new or existing laws, regulations, court decisions and accounting pronouncements; the prices at which used cars are sold in the wholesale auction markets; vehicle return rates and the residual value performance on vehicles we lease; interest rate and currency exchange rate fluctuations; our financial condition and liquidity, as well as future cash flows and earnings; changes in general and economic business conditions; competition; our ability to manage risks related to security breaches and other disruptions to our networks and systems; changes in business strategy, including expansion of product lines and credit risk appetite, acquisitions and divestitures; and risks and uncertainties associated with the consummation of the sale of GM's Opel/Vauxhall businesses, certain other assets in Europe and certain of our European subsidiaries and branches to the PSA Group, including satisfaction of closing conditions. If one or more of these risks or uncertainties materialize, or if underlying assumptions prove incorrect, actual events or results may differ materially. It is advisable not to place undue reliance on any forward-looking statements. We undertake no obligation to, and do not, publicly update or revise any forward-looking statements, except as required by federal securities laws, whether as a result of new information, future events or otherwise.

General Motors Financial Company, Inc.
Consolidated Statements of Income
(Unaudited, Dollars in millions)
	Three Months Ended March 31,
	2017		2016
Revenue
Finance charge income	$	862	$	818
Leased vehicle income		1,942		1,184
Other income		75		73
Total revenue		2,879		2,075
Costs and expenses
Operating expenses		392		334
Leased vehicle expenses		1,438		893
Provision for loan losses		217		196
Interest expense		619		463
Total costs and expenses		2,666		1,886
Equity income		47		36
Income before income taxes		260		225
Income tax provision		58		61
Net income	$	202	$	164

Consolidated Balance Sheets
(Unaudited, Dollars in millions)
	March 31, 2017		December 31, 2016
ASSETS
Cash and cash equivalents	$	2,694	$	3,201
Finance receivables, net		46,910		43,190
Leased vehicles, net		37,302		34,526
Goodwill		1,200		1,196
Equity in net assets of non-consolidated affiliates		998		944
Property and equipment, net of accumulated depreciation		291		279
Deferred income taxes		284		274
Related party receivables		617		510
Other assets		4,244		3,645
Total assets	$	94,540	$	87,765
LIABILITIES AND SHAREHOLDER'S EQUITY
Liabilities
Secured debt	$	42,579	$	39,270
Unsecured debt		37,370		34,606
Accounts payable and accrued expenses		1,501		1,474
Deferred income		2,588		2,365
Deferred income taxes		259		220
Related party payables		448		400
Other liabilities		803		737
Total liabilities		85,548		79,072
Shareholder's equity		8,992		8,693
Total liabilities and shareholder's equity	$	94,540	$	87,765

Operational and Financial Data
(Unaudited, Dollars in millions)
	Three Months Ended March 31,
Originations	2017									2016
	North America			International			Total			North America			International			Total
Retail finance receivables originations	$	4,817		$	1,697		$	6,514		$	2,580		$	1,563		$	4,143
GM lease originations	$	6,260		$	53		$	6,313		$	6,720		$	32		$	6,752
GM new vehicle loans and leases as a percentage of
total loan and lease originations		87.2	%		87.4	%		87.2	%		89.1	%		86.5	%		88.7	%

	Three Months Ended March 31,
Average Earning Assets	2017						2016
	North America		International		Total		North America		International		Total
Average retail finance receivables	$	22,698	$	11,395	$	34,093	$	18,622	$	10,963	$	29,585
Average commercial finance receivables		6,635		4,533		11,168		4,109		4,510		8,619
Average finance receivables		29,333		15,928		45,261		22,731		15,473		38,204
Average leased vehicles, net		35,687		262		35,949		22,190		97		22,287
Average earning assets	$	65,020	$	16,190	$	81,210	$	44,921	$	15,570	$	60,491

Ending Earning Assets	March 31, 2017						March 31, 2016
	North America		International		Total		North America		International		Total
Retail finance receivables, net of fees	$	24,354	$	11,650	$	36,004	$	18,806	$	11,466	$	30,272
Commercial finance receivables, net of fees		7,016		4,796		11,812		4,427		4,802		9,229
Leased vehicles, net		37,018		284		37,302		24,422		116		24,538
Ending earning assets	$	68,388	$	16,730	$	85,118	$	47,655	$	16,384	$	64,039

Total Finance Receivables	March 31, 2017									December 31, 2016
	North America			International			Total			North America			International			Total
Retail
Retail finance receivables, net of fees^(a,b)	$	24,354		$	11,650		$	36,004		$	21,786		$	11,124		$	32,910
Less: allowance for loan losses		(718	)		(134	)		(852	)		(666	)		(127	)		(793	)
Total retail finance receivables, net		23,636			11,516			35,152			21,120			10,997			32,117
Commercial
Commercial finance receivables, net of fees		7,016			4,796			11,812			6,527			4,596			11,123
Less: allowance for loan losses		(34	)		(20	)		(54	)		(30	)		(20	)		(50	)
Total commercial finance receivables, net		6,982			4,776			11,758			6,497			4,576			11,073
Total finance receivables, net	$	30,618		$	16,292		$	46,910		$	27,617		$	15,573		$	43,190

(a)	Includes $1.6 billion and $1.3 billion of direct-finance leases at March 31, 2017 and December 31, 2016.
(b)	Net of unearned income, unamortized premiums and discounts, and deferred fees and costs of $199 million and $191 million at March 31, 2017 and December 31, 2016.

Allowance for Loan Losses	March 31, 2017						December 31, 2016
	North America		International		Total		North America		International		Total
Allowance for loan losses as a percentage of retail
finance receivables, net of fees	2.9	%	1.2	%	2.4	%	3.1	%	1.1	%	2.4	%
Allowance for loan losses as a percentage of
commercial finance receivables, net of fees	0.5	%	0.4	%	0.5	%	0.5	%	0.4	%	0.4	%

Delinquencies	March 31, 2017						March 31, 2016
	North America		International		Total		North America		International		Total
Loan delinquency as a percentage of ending retail
finance receivables:
31 - 60 days	3.6	%	1.0	%	2.8	%	4.5	%	1.0	%	3.1	%
Greater than 60 days	1.3	%	1.1	%	1.2	%	1.6	%	0.9	%	1.4	%
Total	4.9	%	2.1	%	4.0	%	6.1	%	1.9	%	4.5	%

	Three Months Ended March 31,
Charge-offs and Recoveries	2017									2016
	North America			International			Total			North America			International			Total
Charge-offs	$	266		$	41		$	307		$	259		$	34		$	293
Less: recoveries		(135	)		(12	)		(147	)		(139	)		(11	)		(150	)
Net charge-offs	$	131		$	29		$	160		$	120		$	23		$	143
Net charge-offs as an annualized percentage of average
retail finance receivables		2.3	%		1.0	%		1.9	%		2.6	%		0.8	%		1.9	%
Recoveries as a percentage of gross repossession
charge-offs^(a)		51.6	%								54.1	%

(a)	Charge-offs for the International Segment primarily include the write-down of receivables to net realizable value. As a result, a calculation of recoveries as a percentage of gross charge-offs is not meaningful.

	Three Months Ended March 31,
Operating Expenses	2017						2016
	North America		International		Total		North America		International		Total
Operating expenses as an annualized percentage of
average earning assets	1.5	%	3.6	%	2.0	%	1.8	%	3.5	%	2.2	%