- First quarter net income of $271 million
-
Retail loan and operating lease originations of $12.4
billion for the first quarter - Earning assets of $97.2 billion at March 31, 2019
- Available liquidity of $28.3 billion at March 31, 2019
FORT WORTH, Texas–(BUSINESS WIRE)–GENERAL MOTORS FINANCIAL COMPANY, INC. (“GM Financial” or the
“Company”) announced net income of $271 million for the quarter ended
March 31, 2019, compared to $318 million for the quarter ended December
31, 2018, and $369 million for the quarter ended March 31, 2018.
Retail loan originations were $7.2 billion for the quarter ended
March 31, 2019, compared to $8.4 billion for the quarter ended December
31, 2018, and $5.1 billion for the quarter ended March 31, 2018. The
outstanding balance of retail finance receivables, net of fees was $41.8
billion at March 31, 2019, compared to $40.7 billion at December 31,
2018 and $34.3 billion at March 31, 2018.
Operating lease originations were $5.2 billion for the quarter ended
March 31, 2019, compared to $5.2 billion for the quarter ended December
31, 2018, and $5.7 billion for the quarter ended March 31, 2018. Leased
vehicles, net was $43.1 billion at March 31, 2019, compared to $43.6
billion at December 31, 2018 and $43.4 billion at March 31, 2018.
The outstanding balance of commercial finance receivables, net of fees
was $12.4 billion at March 31, 2019, compared to $12.7 billion at
December 31, 2018 and $10.4 billion at March 31, 2018.
Retail finance receivables 31-60 days delinquent were 2.5% of the
portfolio at March 31, 2019 and 3.7% at March 31, 2018. Accounts more
than 60 days delinquent were 1.0% of the portfolio at March 31, 2019 and
1.7% at March 31, 2018.
Annualized net charge-offs were 1.6% of average retail finance
receivables for the quarter ended March 31, 2019 and 2.1% for the
quarter ended March 31, 2018.
The Company had total available liquidity of $28.3 billion at March 31,
2019, consisting of $5.3 billion of cash and cash equivalents, $19.7
billion of borrowing capacity on unpledged eligible assets, $0.3 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 joint ventures
that conduct automotive finance operations in China were $45 million for
the quarter ended March 31, 2019 compared to $42 million for the quarter
ended December 31, 2018, and $52 million for the quarter ended March 31,
2018.
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. In lieu of a conference call, management recorded
remarks addressing the Company’s results of operations for the quarter
ended March 31, 2019. This recording, along with the presentation slides
and this release, will be posted to the Company’s website on April 30,
2019 at 11:00 a.m. central time. The recording and materials can be
accessed via the Investor Relations section of the Company’s website at www.gmfinancial.com.
Forward-Looking Statements
This release 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, 2018. Such risks include – but are not limited to – GM’s
ability to sell new vehicles that we finance in the markets we serve;
the viability of GM-franchised dealers that are commercial loan
customers; changes in the automotive industry that result in a change in
demand for vehicles and related vehicle financing; the sufficiency,
availability and cost of sources of financing, including credit
facilities, securitization programs and secured and unsecured debt
issuances; our joint ventures in China, which we cannot operate solely
for our benefit and over which we have limited control; the adequacy of
our underwriting criteria for loans and leases and the level of net
charge-offs, delinquencies and prepayments on the loans and leases we
purchase or originate; the adequacy of our allowance for loan losses on
our finance receivables; the effect, interpretation or application of
new or existing laws, regulations, court decisions and accounting
pronouncements; adverse determinations with respect to the application
of existing laws, or the results of any audits from tax authorities, as
well as changes in tax laws and regulations, supervision, enforcement
and licensing across various jurisdictions; the prices at which used
vehicles are sold in the wholesale auction markets; vehicle return
rates, our ability to estimate residual value at the inception of a
lease and the residual value performance on vehicles we lease; interest
rate fluctuations and certain related derivatives exposure; foreign
currency exchange rate fluctuations and other risks applicable to our
operations outside of the U.S.; changes to the LIBOR calculation process
and potential phasing out of LIBOR; our ability to effectively manage
capital or liquidity consistent with evolving business or operational
needs, risk management standards, and regulatory or supervisory
requirements; changes in local, regional, national or international
economic, social or political conditions; our ability to maintain and
expand our market share due to competition in the automotive finance
industry from a large number of banks, credit unions, independent
finance companies and other captive automotive finance subsidiaries; our
ability to secure private customer and employee data or our proprietary
information, manage risks related to security breaches and other
disruptions to our networks and systems and comply with enterprise data
regulations in all key market regions; and changes in business strategy,
including expansion of product lines and credit risk appetite,
acquisitions and divestitures. If one or more of these risks or
uncertainties materialize, or if underlying assumptions prove incorrect,
our actual results may vary materially from those expected, estimated or
projected. 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. | ||||||||
| Condensed Consolidated Statements of Income | ||||||||
| (Unaudited, in millions) | ||||||||
| Three Months Ended March 31, | ||||||||
| 2019 | 2018 | |||||||
| Revenue | ||||||||
| Finance charge income | $ | 987 | $ | 866 | ||||
| Leased vehicle income | 2,509 | 2,447 | ||||||
| Other income | 124 | 98 | ||||||
| Total revenue | 3,620 | 3,411 | ||||||
| Costs and expenses | ||||||||
| Operating expenses | 370 | 365 | ||||||
| Leased vehicle expenses | 1,814 | 1,787 | ||||||
| Provision for loan losses | 175 | 136 | ||||||
| Interest expense | 947 | 732 | ||||||
| Total costs and expenses | 3,306 | 3,020 | ||||||
| Equity income | 45 | 52 | ||||||
| Income before income taxes | 359 | 443 | ||||||
| Income tax provision | 88 | 74 | ||||||
| Net income | 271 | 369 | ||||||
| Less: cumulative dividends on preferred stock | 23 | 14 | ||||||
| Net income attributable to common shareholder | $ | 248 | $ | 355 | ||||
| Condensed Consolidated Balance Sheets | ||||||||
| (Unaudited, in millions) | ||||||||
| March 31, 2019 | December 31, 2018 | |||||||
| ASSETS | ||||||||
| Cash and cash equivalents | $ | 5,286 | $ | 4,883 | ||||
| Finance receivables, net | 53,229 | 52,512 | ||||||
| Leased vehicles, net | 43,052 | 43,559 | ||||||
| Goodwill | 1,187 | 1,186 | ||||||
| Equity in net assets of non-consolidated affiliates | 1,429 | 1,355 | ||||||
| Related party receivables | 640 | 729 | ||||||
| Other assets | 6,422 | 5,696 | ||||||
| Total assets | $ | 111,245 | $ | 109,920 | ||||
| LIABILITIES AND SHAREHOLDERS’ EQUITY | ||||||||
| Liabilities | ||||||||
| Secured debt | $ | 41,625 | $ | 42,835 | ||||
| Unsecured debt | 50,506 | 48,153 | ||||||
| Deferred income | 3,633 | 3,605 | ||||||
| Related party payables | 66 | 63 | ||||||
| Other liabilities | 3,431 | 3,605 | ||||||
| Total liabilities | 99,261 | 98,261 | ||||||
| Total shareholders’ equity | 11,984 | 11,659 | ||||||
| Total liabilities and shareholders’ equity | $ | 111,245 | $ | 109,920 | ||||
| Operational and Financial Data | ||||||||||
| (Unaudited, Dollars in millions) | ||||||||||
| Three Months Ended March 31, | ||||||||||
|
Originations |
2019 | 2018 | ||||||||
| Retail finance receivables originations | $ | 7,162 | $ | 5,078 | ||||||
| GM lease originations | $ | 5,210 | $ | 5,712 | ||||||
| Three Months Ended March 31, | ||||||||||
|
Average Earning Assets |
2019 | 2018 | ||||||||
| Average retail finance receivables | $ | 41,591 | $ | 33,471 | ||||||
| Average commercial finance receivables | 12,167 | 10,068 | ||||||||
| Average finance receivables | 53,758 | 43,539 | ||||||||
| Average leased vehicles, net | 43,394 | 43,177 | ||||||||
| Average earning assets | $ | 97,152 | $ | 86,716 | ||||||
|
Ending Earning Assets |
March 31, 2019 | December 31, 2018 | ||||||||
| Retail finance receivables, net of fees | $ | 41,785 | $ | 40,702 | ||||||
| Commercial finance receivables, net of fees | 12,368 | 12,721 | ||||||||
| Leased vehicles, net | 43,052 | 43,559 | ||||||||
| Ending earning assets | $ | 97,205 | $ | 96,982 | ||||||
|
Total Finance Receivables |
March 31, 2019 | December 31, 2018 | ||||||||
| Retail | ||||||||||
| Retail finance receivables, net of fees | $ | 41,785 | $ | 40,702 | ||||||
| Less: allowance for loan losses | (862 | ) | (844 | ) | ||||||
| Total retail finance receivables, net | 40,923 | 39,858 | ||||||||
| Commercial | ||||||||||
| Commercial finance receivables, net of fees | 12,368 | 12,721 | ||||||||
| Less: allowance for loan losses | (62 | ) | (67 | ) | ||||||
| Total commercial finance receivables, net | 12,306 | 12,654 | ||||||||
| Total finance receivables, net | $ | 53,229 | $ | 52,512 | ||||||
|
Allowance for Loan Losses |
March 31, 2019 | December 31, 2018 | ||||||||
|
Allowance for loan losses as a percentage of retail finance receivables, net of fees |
2.1 | % | 2.1 | % | ||||||
|
Allowance for loan losses as a percentage of commercial finance receivables, net of fees |
0.5 | % | 0.5 | % | ||||||
|
Delinquencies |
March 31, 2019 | March 31, 2018 | ||||||||
|
Loan delinquency as a percentage of ending retail finance receivables: |
||||||||||
| 31 – 60 days | 2.5 | % | 3.7 | % | ||||||
| Greater than 60 days | 1.0 | 1.7 | ||||||||
| Total | 3.5 | % | 5.4 | % | ||||||
| Three Months Ended March 31, | ||||||||||
|
Charge-offs and Recoveries |
2019 | 2018 | ||||||||
| Charge-offs | $ | 307 | $ | 295 | ||||||
| Less: recoveries | (145 | ) | (123 | ) | ||||||
| Net charge-offs | $ | 162 | $ | 172 | ||||||
|
Net charge-offs as an annualized percentage of average retail finance receivables |
1.6 | % | 2.1 | % | ||||||
| Three Months Ended March 31, | ||||||||||
|
Operating Expenses |
2019 | 2018 | ||||||||
|
Operating expenses as an annualized percentage of average earning assets |
1.5 | % | 1.7 | % | ||||||
Contacts
Stephen Jones
Vice President, Investor Relations
(817) 302-7119
[email protected]
