GM Financial Reports First Quarter 2023 Operating Results

  • First quarter net income of $584 million
  • First quarter retail loan and operating lease originations of $13.0 billion
  • Earning assets of $110.2 billion at March 31, 2023
  • Available liquidity of $30.8 billion at March 31, 2023

FORT WORTH, Texas--()--GENERAL MOTORS FINANCIAL COMPANY, INC. (“GM Financial” or the “Company”) announced net income of $584 million for the quarter ended March 31, 2023, compared to $605 million for the quarter ended December 31, 2022, and $962 million for the quarter ended March 31, 2022.

Retail loan originations were $9.1 billion for the quarter ended March 31, 2023, compared to $8.3 billion for the quarter ended December 31, 2022, and $8.1 billion for the quarter ended March 31, 2022. The outstanding balance of retail finance receivables, net of fees was $67.7 billion at March 31, 2023, compared to $65.3 billion at December 31, 2022 and $59.5 billion at March 31, 2022.

Operating lease originations were $3.9 billion for the quarter ended March 31, 2023, compared to $3.5 billion for both the quarters ended December 31, 2022 and March 31, 2022. Leased vehicles, net was $31.8 billion at March 31, 2023, compared to $32.7 billion at December 31, 2022 and $36.6 billion at March 31, 2022.

The outstanding balance of commercial finance receivables, net of fees was $10.6 billion at March 31, 2023, compared to $11.3 billion at December 31, 2022 and $7.4 billion at March 31, 2022.

Retail finance receivables 31-60 days delinquent were 1.8% of the portfolio at March 31, 2023 and 1.7% at March 31, 2022. Accounts more than 60 days delinquent were 0.5% of the portfolio at both March 31, 2023 and March 31, 2022.

Annualized net charge-offs were 0.8% of average retail finance receivables for the quarter ended March 31, 2023 and 0.7% for the quarter ended March 31, 2022.

The Company had total available liquidity of $30.8 billion at March 31, 2023, consisting of $4.4 billion of cash and cash equivalents, $23.0 billion of borrowing capacity on unpledged eligible assets, $0.5 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 $41 million for the quarter ended March 31, 2023, compared to $25 million for the quarter ended December 31, 2022 and $54 million for the quarter ended March 31, 2022.

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 March 31, 2023 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 March 31,

 

2023

 

2022

Revenue

 

 

 

Finance charge income

$

1,368

 

$

1,010

Leased vehicle income

 

1,818

 

 

2,066

Other income

 

156

 

 

80

Total revenue

 

3,343

 

 

3,156

Costs and expenses

 

 

 

Operating expenses

 

442

 

 

372

Leased vehicle expenses

 

1,039

 

 

855

Provision for loan losses

 

131

 

 

122

Interest expense

 

1,000

 

 

577

Total costs and expenses

 

2,613

 

 

1,926

Equity income

 

41

 

 

54

Income before income taxes

 

771

 

 

1,284

Income tax provision

 

186

 

 

322

Net income (loss)

 

584

 

 

962

Less: cumulative dividends on preferred stock

 

30

 

 

30

Net income (loss) attributable to common shareholder

$

555

 

$

932

 

Amounts may not add due to rounding.

Condensed Consolidated Balance Sheets

(Unaudited, in millions)

 

 

March 31, 2023

 

December 31, 2022

ASSETS

 

 

 

Cash and cash equivalents

$

4,352

 

$

4,005

Finance receivables, net of allowance for loan losses of $2,152 and $2,096

 

76,178

 

 

74,514

Leased vehicles, net

 

31,848

 

 

32,701

Goodwill and intangible assets

 

1,180

 

 

1,171

Equity in net assets of non-consolidated affiliates

 

1,725

 

 

1,665

Related party receivables

 

639

 

 

495

Other assets

 

7,643

 

 

7,995

Total assets

$

123,565

 

$

122,545

LIABILITIES AND SHAREHOLDERS' EQUITY

 

 

 

Liabilities

 

 

 

Secured debt

$

41,253

 

$

42,131

Unsecured debt

 

56,814

 

 

54,723

Deferred income

 

2,250

 

 

2,248

Related party payables

 

457

 

 

115

Other liabilities

 

7,590

 

 

8,318

Total liabilities

 

108,364

 

 

107,535

Total shareholders' equity

 

15,201

 

 

15,010

Total liabilities and shareholders' equity

$

123,565

 

$

122,545

 

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 March 31,

Originations

2023

 

2022

Retail finance receivables originations

$

9,104

 

$

8,074

Lease originations

$

3,926

 

$

3,542

 

Three Months Ended March 31,

Average Earning Assets

2023

 

2022

Average retail finance receivables

$

66,614

 

$

58,827

Average commercial finance receivables

 

10,762

 

 

6,987

Average finance receivables

 

77,376

 

 

65,814

Average leased vehicles, net

 

32,272

 

 

37,249

Average earning assets

$

109,648

 

$

103,063

Ending Earning Assets

March 31, 2023

 

December 31, 2022

Retail finance receivables, net of fees

$

67,704

 

$

65,322

Commercial finance receivables, net of fees

 

10,627

 

 

11,288

Leased vehicles, net

 

31,848

 

 

32,701

Ending earning assets

$

110,179

 

$

109,311

Finance Receivables

March 31, 2023

 

December 31, 2022

Retail

 

 

 

Retail finance receivables, net of fees

$

67,704

 

 

$

65,322

 

Less: allowance for loan losses

 

(2,123

)

 

 

(2,062

)

Total retail finance receivables, net

 

65,581

 

 

 

63,260

 

Commercial

 

 

 

Commercial finance receivables, net of fees

 

10,627

 

 

 

11,288

 

Less: allowance for loan losses

 

(29

)

 

 

(34

)

Total commercial finance receivables, net

 

10,597

 

 

 

11,254

 

Total finance receivables, net

$

76,178

 

 

$

74,514

 

Allowance for Loan Losses

March 31, 2023

 

December 31, 2022

Allowance for loan losses as a percentage of retail finance receivables, net of fees

3.1

%

 

3.2

%

Allowance for loan losses as a percentage of commercial finance receivables, net of fees

0.3

%

 

0.3

%

Delinquencies

March 31, 2023

 

March 31, 2022

Loan delinquency as a percentage of ending retail finance receivables:

 

 

 

31 - 60 days

1.8

%

 

1.7

%

Greater than 60 days

0.5

 

 

0.5

 

Total

2.3

%

 

2.2

%

 

Three Months Ended March 31,

Charge-offs and Recoveries

2023

 

2022

Charge-offs

$

322

 

 

$

275

 

Less: recoveries

 

(186

)

 

 

(177

)

Net charge-offs

$

136

 

 

$

97

 

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

 

0.8

%

 

 

0.7

%

 

Three Months Ended March 31,

Operating Expenses

2023

 

2022

Operating expenses as an annualized percentage of average earning assets

1.6

%

 

1.5

%

 

Contacts

Investor Relations contact:
Stephen Jones
Vice President, Investor Relations
(817) 302-7119
Investors@gmfinancial.com

Contacts

Investor Relations contact:
Stephen Jones
Vice President, Investor Relations
(817) 302-7119
Investors@gmfinancial.com