Ally Bank 2011 Annual Report Download - page 80

Table of Contents
Management's Discussion and Analysis
Ally Financial Inc. • Form 10−K
The following table includes total commercial net charge−offs from finance receivables and loans at historical cost and related ratios reported at
carrying value before allowance for loan losses. Net charge−offs (recoveries) Net charge−off ratios (a)
Year ended December 31, ($ in millions) 2011 2010 2011 2010
Domestic
Commercial and industrial
Automobile $ 7 $ 18 — % 0.1 %
Mortgage (3) (3) (0.3) (0.2)
Other (b) (7) 158 (0.5) 6.7
Commercial real estate
Automobile 6 47 0.3 2.3
Mortgage (1) 44 n/m 136.3
Total domestic 2 264 — 0.9
Foreign
Commercial and industrial
Automobile (1) 16 — 0.2
Mortgage 8 3 25.0 3.9
Other 2 69 0.8 19.0
Commercial real estate
Automobile 1 2 0.3 1.0
Mortgage 27 48 60.9 38.7
Total foreign 37 138 0.4 1.5
Total commercial finance receivables and loans $ 39 $ 402 0.1 1.1
(a) Net charge−off ratios are calculated as net charge−offs divided by average outstanding finance receivables and loans excluding loans measured at fair value and loans held−for−sale
during the year for each loan category.
(b) Includes $148 million of Resort finance charge offs during the year ended December 31, 2010.
Our net charge−offs from commercial finance receivables and loans totaled $39 million for the year ended December 31, 2011, compared to $402
million in 2010. The decrease in net charge−offs were largely driven by an improved mix of loans in the existing portfolio driven by the wind−down of
certain commercial resort finance and real estate assets in prior periods and improvement in dealer performance.
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