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GM Financial Reports Full Year and Fourth Quarter 2024 Operating Results

1. GM Financial's net income fell to $215 million in Q4 2024. 2. The company recorded a $320 million impairment charge on its investment. 3. Retail loan originations increased to $10.6 billion from $9.4 billion in Q3 2024. 4. Outstanding retail finance receivables reached $76.1 billion, up from $74.4 billion. 5. Total revenue rose to $4.1 billion, a significant yearly increase.

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FAQ

Why Neutral?

Despite lower net income, loan originations improved, creating mixed signals.

How important is it?

Results indicate financial health impacting GM's overall business, especially in financing.

Why Short Term?

Immediate impacts due to quarterly results but long-term trends may stabilize.

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GMSAIC
FORT WORTH, Texas--(BUSINESS WIRE)--GENERAL MOTORS FINANCIAL COMPANY, INC. (“GM Financial” or the “Company”) announced net income of $215 million for the quarter ended December 31, 2024, compared to $499 million for the quarter ended September 30, 2024, and $532 million for the quarter ended December 31, 2023. Net income for the year ended December 31, 2024 was $1.9 billion, compared to $2.2 billion for the year ended December 31, 2023. The Company recorded a $320 million impairment charge to write down its SAIC-GMAC equity investment to its fair value. Net income adjusted for this impairment was $535 million for the quarter ended December 31, 2024 and $2.2 billion for the year ended December 31, 2024. Retail loan originations were $10.6 billion for the quarter ended December 31, 2024, compared to $9.4 billion for the quarter ended September 30, 2024, and $8.3 billion for the quarter ended December 31, 2023. Retail loan originations for the year ended December 31, 2024 were $37.0 billion, compared to $36.0 billion for the year ended December 31, 2023. The outstanding balance of retail finance receivables was $76.1 billion at December 31, 2024, compared to $74.4 billion at September 30, 2024 and $72.7 billion at December 31, 2023. Operating lease originations were $4.9 billion for the quarter ended December 31, 2024, compared to $4.9 billion for the quarter ended September 30, 2024, and $4.3 billion for the quarter ended December 31, 2023. Operating lease originations for the year ended December 31, 2024 were $19.1 billion, compared to $17.1 billion for the year ended December 31, 2023. Leased vehicles, net was $31.6 billion at December 31, 2024, compared to $31.0 billion at September 30, 2024 and $30.6 billion at December 31, 2023. The outstanding balance of commercial finance receivables was $19.9 billion at December 31, 2024, compared to $19.0 billion at September 30, 2024 and $14.3 billion at December 31, 2023. Retail finance receivables 31-60 days delinquent were 2.5% of the portfolio at December 31, 2024 and 2.3% at December 31, 2023. Accounts more than 60 days delinquent were 0.9% of the portfolio at December 31, 2024 and 0.8% at December 31, 2023. Annualized net charge-offs were 1.3% of average retail finance receivables for the quarter ended December 31, 2024 and 1.2% for the quarter ended December 31, 2023. For the year ended December 31, 2024 net charge-offs were 1.2%, compared to 0.9% for the year ended December 31, 2023. The Company had total available liquidity of $30.3 billion at December 31, 2024, consisting of $5.1 billion of cash and cash equivalents, $21.5 billion of borrowing capacity on unpledged eligible assets, $0.7 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. Equity income from the Company's equity investment in joint ventures that conduct automotive finance operations in China was $9 million for the quarter ended December 31, 2024, compared to $10 million for the quarter ended September 30, 2024 and $27 million for the quarter ended December 31, 2023. Equity income for the year ended December 31, 2024 was $64 million, compared to $138 million for the year ended December 31, 2023. 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 and full year ended December 31, 2024 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 December 31, Years Ended December 31, 2024 2023 2024 2023 Revenue Finance charge income $ 2,042 $ 1,725 $ 7,669 $ 6,204 Leased vehicle income 1,866 1,808 7,297 7,266 Other income 206 210 909 754 Total revenue 4,114 3,742 15,875 14,224 Costs and expenses Operating expenses 387 458 1,802 1,818 Leased vehicle expenses 1,067 1,000 4,113 4,047 Provision for loan losses 353 293 1,029 826 Interest expense 1,598 1,311 6,030 4,685 Total costs and expenses 3,405 3,062 12,974 11,376 Equity income (loss) 9 27 64 138 Impairment of investment in nonconsolidated affiliate (320 ) — (320 ) — Income (loss) before income taxes 399 707 2,645 2,985 Income tax provision (benefit) 184 175 784 741 Net income (loss) 215 532 1,860 2,245 Less: cumulative dividends on preferred stock 30 30 119 119 Net income (loss) attributable to common shareholder $ 185 $ 502 $ 1,742 $ 2,126   Amounts may not add due to rounding.          Condensed Consolidated Balance Sheets (Unaudited, in millions)    December 31, 2024 December 31, 2023 ASSETS Cash and cash equivalents $ 5,094 $ 5,282 Finance receivables, net of allowance for loan losses $2,458 and $2,344 93,510 84,637 Leased vehicles, net 31,586 30,582 Goodwill and intangible assets 1,169 1,184 Equity in net assets of nonconsolidated affiliates 1,206 1,670 Related party receivables 473 540 Other assets 7,992 8,116 Total assets $ 141,030 $ 132,011 LIABILITIES AND SHAREHOLDERS' EQUITY Liabilities Secured debt $ 49,573 $ 45,243 Unsecured debt 64,691 60,084 Deferred income 2,389 2,313 Related party payables 106 445 Other liabilities 9,079 8,383 Total liabilities 125,838 116,468 Total shareholders' equity 15,193 15,542 Total liabilities and shareholders' equity $ 141,030 $ 132,011   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 December 31, Years Ended December 31, Reconciliation for Net Income - Adjusted 2024 2023 2024 2023 Net income $ 215 $ 532 $ 1,860 $ 2,245 Adjustment - impairment charge 320 — 320 — Net income - adjusted $ 535 $ 532 $ 2,181 $ 2,245     Three Months Ended December 31, Years Ended December 31, Originations 2024 2023 2024 2023 Retail finance receivables originations $ 10,637 $ 8,272 $ 36,960 $ 35,977 Lease originations 4,943 4,280 19,089 17,113 Total originations $ 15,580 $ 12,552 $ 56,049 $ 53,090     Three Months Ended December 31, Years Ended December 31, Average Earning Assets 2024 2023 2024 2023 Average retail finance receivables $ 75,318 $ 72,449 $ 73,917 $ 69,678 Average commercial finance receivables 19,609 12,953 16,704 11,646 Average finance receivables 94,927 85,402 90,621 81,324 Average leased vehicles, net 31,288 30,781 30,641 31,521 Average earning assets $ 126,215 $ 116,183 $ 121,262 $ 112,845     Ending Earning Assets December 31, 2024 December 31, 2023 Retail finance receivables $ 76,066 $ 72,729 Commercial finance receivables 19,901 14,251 Leased vehicles, net 31,586 30,582 Ending earning assets $ 127,554 $ 117,562     Finance Receivables December 31, 2024 December 31, 2023 Retail Retail finance receivables $ 76,066 $ 72,729 Less: allowance for loan losses (2,400 ) (2,308 ) Total retail finance receivables, net 73,667 70,421 Commercial Commercial finance receivables 19,901 14,251 Less: allowance for loan losses (58 ) (36 ) Total commercial finance receivables, net 19,843 14,216 Total finance receivables, net $ 93,510 $ 84,637     Allowance for Loan Losses December 31, 2024 December 31, 2023 Allowance for loan losses as a percentage of retail finance receivables 3.2 % 3.2 % Allowance for loan losses as a percentage of commercial finance receivables 0.3 % 0.3 %     Delinquencies December 31, 2024 December 31, 2023 Loan delinquency as a percentage of retail finance receivables: 31 - 60 days 2.5 % 2.3 % Greater than 60 days 0.9 0.8 Total 3.4 % 3.0 %     Three Months Ended December 31, Years Ended December 31, Charge-offs and Recoveries 2024 2023 2024 2023 Charge-offs $ 499 $ 411 $ 1,754 $ 1,423 Less: recoveries (249 ) (195 ) (901 ) (767 ) Net charge-offs $ 250 $ 217 $ 853 $ 656 Net charge-offs as an annualized percentage of average retail finance receivables 1.3 % 1.2 % 1.2 % 0.9 %     Three Months Ended December 31, Years Ended December 31, Operating Expenses 2024 2023 2024 2023 Operating expenses as an annualized percentage of average earning assets 1.2 % 1.6 % 1.5 % 1.6 %    

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