Ally Bank 2011 Annual Report Download - page 110

Table of Contents
Management's Discussion and Analysis
Ally Financial Inc. • Form 10−K
Statistical Tables
The accompanying supplemental information should be read in conjunction with the more detailed information, including our Consolidated Financial
Statements and the notes thereto, which appear elsewhere in this Annual Report.
Net Interest Margin Tables
The following tables present an analysis of net interest margin excluding discontinued operations for the periods shown.
2011 2010 2009
Year ended December 31, ($ in millions) Average balance (a)
Interest
income/
interest
expense Yield/ rate Average balance (a)
Interest
income/
interest
expense Yield/ rate Average balance (a)
Interest
income/
interest
expense Yield/ rate
Assets
Interest−bearing cash and cash equivalents $ 12,376 $ 54 0.44% $ 13,964 $ 69 0.49% $ 14,065 $ 98 0.70%
Trading assets 366 19 5.19 252 15 5.95 985 132 13.40
Investment securities (b) 14,551 373 2.56 11,312 339 3.00 9,446 211 2.23
Loans held−for−sale, net 9,365 332 3.55 13,506 601 4.45 12,542 416 3.32
Finance receivables and loans, net (c) (d) 110,650 6,635 6.00 92,224 6,546 7.10 92,567 6,471 6.99
Investment in operating leases, net (e) 9,031 1,260 13.95 12,064 1,693 14.03 21,441 1,916 8.94
Total interest−earning assets 156,339 8,673 5.55 143,322 9,263 6.46 151,046 9,244 6.12
Noninterest−bearing cash and cash equivalents 1,305 686 1,144
Other assets 24,948 35,040 28,910
Allowance for loan losses (1,756) (2,363) (3,208)
Total assets $ 180,836 $ 176,685 $ 177,892
Liabilities
Interest−bearing deposit liabilities $ 41,136 $ 700 1.70% $ 33,355 $ 641 1.92% $ 24,159 $ 677 2.80%
Short−term borrowings 7,209 314 4.36 7,601 324 4.26 9,356 465 4.97
Long−term debt (f) (g) (h) 90,410 5,209 5.76 87,270 5,701 6.53 97,939 5,949 6.07
Total interest−bearing liabilities (f) (g) (i) 138,755 6,223 4.48 128,226 6,666 5.20 131,454 7,091 5.39
Noninterest−bearing deposit liabilities 2,239 2,082 1,955
Total funding sources (g) (j) 140,994 6,223 4.41 130,308 6,666 5.12 133,409 7,091 5.32
Other liabilities 19,682 25,666 20,231
Total liabilities 160,676 155,974 153,640
Total equity 20,160 20,711 24,252
Total liabilities and equity $ 180,836 $ 176,685 $ 177,892
Net financing revenue $ 2,450 $ 2,597 $ 2,153
Net interest spread (k) 1.07% 1.26% 0.73%
Net interest spread excluding original issue discount (k) 1.79% 2.32% 1.75%
Net interest spread excluding original issue discount and including
noninterest−bearing deposit liabilities (k) 1.85% 2.38% 1.82%
Net yield on interest earning assets (l) 1.57% 1.81% 1.43%
Net yield on interest earning assets excluding original issue discount (l) 2.15% 2.65% 2.18%
(a) Average balances are calculated using a combination of monthly and daily average methodologies.
(b) Excludes income on equity investments of $25 million, $17 million and $9 million at December 31, 2011, 2010 and 2009, respectively. Yields on available−for−sale debt securities
are based on fair value as opposed to historical cost.
(c) Nonperforming finance receivables and loans are included in the average balances. For information on our accounting policies regarding nonperforming status refer to Note 1 to the
Consolidated Financial Statements.
(d) Includes other interest income of $20 million, $9 million and $92 million at December 31, 2011, 2010 and 2009, respectively.
(e) Includes gains on sale of $395 million, $723 million and $530 million during the year ended December 31, 2011, 2010 and 2009, respectively. Excluding these gains on sale, the
yield would be 9.58%, 8.04% and 9.64% at December 31, 2011, 2010 and 2009, respectively.
(f) Includes the effects of derivative financial instruments designated as hedges.
(g) Average balance includes $2,522 million, $3,710 million and $4,804 million related to original issue discount at December 31, 2011, 2010 and 2009, respectively. Interest expense
includes original issue discount amortization of $912 million, $1,204 million and $1,143 million during the year ended December 31, 2011, 2010 and 2009, respectively.
(h) Excluding original issue discount the rate on long−term debt was 4.62%, 4.94% and 4.68% at December 31, 2011, 2010 and 2009, respectively.
(i) Excluding original issue discount the rate on total interest−bearing liabilities was 3.76%, 4.14% and 4.37% at December 31, 2011, 2010 and 2009, respectively.
(j) Excluding original issue discount the rate on total funding sources is 3.70%, 4.08% and 4.30% at December 31, 2011, 2010, and 2009, respectively.
(k) Net interest spread represents the difference between the rate on total interest earning assets and the rate on total interest−bearing liabilities.
(l) Net yield on interest earning assets represents net financing revenue as a percentage of total interest earning assets.
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