Ally Bank 2012 Annual Report Download - page 28

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The following table presents selected balance sheet and ratio data.
Year ended December 31, ($ in millions)2012 2011 2010 2009 2008
Selected period-end balance sheet data:
Total assets $ 182,347 $ 184,059 $ 172,008 $ 172,306 $ 189,476
Long-term debt $ 74,561 $ 92,885 $ 86,703 $ 88,066 $ 115,935
Preferred stock/interests (a) $ 6,940 $ 6,940 $ 6,972 $ 12,180 $ 6,287
Total equity $ 19,898 $ 19,280 $ 20,398 $ 20,794 $ 21,854
Financial ratios
Efficiency ratio (b) 108.70 % 119.18 % 86.91% 140.87 % 46.61 %
Core efficiency ratio (b) 101.72 % 95.97 % 70.82% 112.64 % 213.76 %
Return on assets (c)
Net income (loss) from continuing operations 0.29 % (0.55)% 0.16% (3.97)% 2.65 %
Net income (loss) 0.65 % (0.09)% 0.58% (5.81)% 0.99 %
Core pretax (loss) income (0.23)% 0.01 % 0.96% (3.31)% (3.41)%
Return on equity (c)
Net income (loss) from continuing operations 2.80 % (4.99)% 1.39% (29.14)% 23.01 %
Net income (loss) 6.32 % (0.78)% 4.98% (42.65)% 8.55 %
Core pretax (loss) income (2.21)% 0.05 % 8.19% (24.31)% (29.61)%
Equity to assets (c) 10.30 % 11.10 % 11.69% 13.63 % 11.53 %
Net interest spread (c)(d) 1.14 % 0.59 % 0.97% 0.45 % (e)
Net interest spread excluding original issue discount (c)(d) 1.46 % 1.43 % 2.21% 1.84 % (e)
Net yield on interest-earning assets (c)(f) 1.37 % 0.84 % 1.15% 1.03 % (e)
Net yield on interest-earning assets excluding original issue discount (c)(f) 1.62 % 1.56 % 2.22% 2.08 % (e)
Regulatory capital ratios
Tier 1 capital (to risk-weighted assets) (g) 13.13 % 13.65 % 14.93% 14.12 % (e)
Total risk-based capital (to risk-weighted assets) (h) 14.07 % 14.69 % 16.30% 15.52 % (e)
Tier 1 leverage (to adjusted quarterly average assets) (i) 11.16 % 11.45 % 12.99% 12.68 % (e)
Total equity $ 19,898 $ 19,280 $ 20,398 $ 20,794 (e)
Goodwill and certain other intangibles (494) (493) (532) (534) (e)
Unrealized gains and other adjustments (1,715) (262) (309) (447) (e)
Trust preferred securities 2,543 2,542 2,541 2,540 (e)
Tier 1 capital (g) 20,232 21,067 22,098 22,353 (e)
Preferred equity (6,940) (6,940) (6,972) (12,180) (e)
Trust preferred securities (2,543) (2,542) (2,541) (2,540) (e)
Tier 1 common capital (non-GAAP) (j) $ 10,749 $ 11,585 $ 12,585 $ 7,633 (e)
Risk-weighted assets (k) $ 154,038 $ 154,319 $ 147,979 $ 158,326 (e)
Tier 1 common (to risk-weighted assets) (j) 6.98 % 7.51 % 8.50% 4.82 % (e)
(a) Effective June 30, 2009, we converted from a Delaware limited liability company into a Delaware corporation. Each unit of each class of common membership interest issued
and outstanding immediately prior to the conversion was converted into an equivalent number of shares of common stock with substantially the same rights and preferences as
the common membership interests. Upon conversion, holders of our preferred membership interests also received an equivalent number of shares of preferred stock with
substantially the same rights and preferences as the former preferred membership interests.
(b) The efficiency ratio equals total other noninterest expense divided by total net revenue. The core efficiency ratio equals total other noninterest expense divided by total net
revenue excluding original issue discount amortization expense and gain on extinguishment of debt related to the 2008 bond exchange.
(c) The 2012, 2011, 2010, and 2009 ratios were computed based on average assets and average equity using a combination of monthly and daily average methodologies. The 2008
ratios have been computed based on period-end total assets and period-end total equity at December 31, 2008.
(d) Net interest spread represents the difference between the rate on total interest-earning assets and the rate on total interest-bearing liabilities, excluding discontinued operations
for the periods shown.
(e) Not applicable at December 31, 2008 as we did not become a bank holding company until December 24, 2008.
(f) Net yield on interest-earning assets represents net financing revenue as a percentage of total interest-earning assets.
(g) Tier 1 capital generally consists of common equity, minority interests, qualifying noncumulative preferred stock, and the fixed rate cumulative preferred stock sold to Treasury
under TARP, less goodwill and other adjustments.
(h) Total risk-based capital is the sum of Tier 1 and Tier 2 capital. Tier 2 capital generally consists of preferred stock not qualifying as Tier 1 capital, limited amounts of
subordinated debt and the allowance for loan losses, and other adjustments. The amount of Tier 2 capital may not exceed the amount of Tier 1 capital.
(i) Tier 1 leverage equals Tier 1 capital divided by adjusted quarterly average total assets (which reflects adjustments for disallowed goodwill and certain intangible assets). The
minimum Tier 1 leverage ratio is 3% or 4% depending on factors specified in the regulations.
(j) We define Tier 1 common as Tier 1 capital less noncommon elements, including qualifying perpetual preferred stock, minority interest in subsidiaries, trust preferred securities,
and mandatorily convertible preferred securities. Ally considers various measures when evaluating capital utilization and adequacy, including the Tier 1 common equity ratio, in
addition to capital ratios defined by banking regulators. This calculation is intended to complement the capital ratios defined by banking regulators for both absolute and
comparative purposes. Because GAAP does not include capital ratio measures, Ally believes there are no comparable GAAP financial measures to these ratios. Tier 1 common
equity is not formally defined by GAAP or codified in the federal banking regulations and, therefore, is considered to be a non-GAAP financial measure. Ally believes the Tier
1 common equity ratio is important because we believe analysts and banking regulators may assess our capital adequacy using this ratio. Additionally, presentation of this
measure allows readers to compare certain aspects of our capital adequacy on the same basis to other companies in the industry.
(k) Risk-weighted assets are defined by regulation and are determined by allocating assets and specified off-balance sheet financial instruments into several broad risk categories.
Table of Contents Ally Financial Inc. • Form 10-K