Ally Bank 2015 Annual Report Download - page 4

key objectives we set forth two years
ago during our initial public oering
and kept the promises made to our
shareholders.
Customers
At the core of our strength as a
company is the relentless focus we
put on our customers – delivering
competitive products, oering a high
level of service and working to be their
ally. This customer-centric philosophy
is a cornerstone of our success and has
led to a consistently growing base of
customers.
Since 2010, we have posted a
compounded annual customer
growth rate of 7 percent, and in 2015,
we reached in excess of 5.5 million
customers. This base of customers
oers signicant potential for the
future, as currently there is little
product overlap between our deposit
and auto customers. We believe there is
potential to deepen these relationships
and introduce these consumers to
broader Ally oerings to meet their
nancial needs.
Ally is also attracting a growing number
of millennial customers with 47 percent
of our new deposit customers falling
into this demographic group and
comprising 24 percent of our overall
customer base. This is an important
population in nancial services, as their
personal nance needs increase and
generational wealth transfers occur.
As a leader in digital nancial services,
Ally is well positioned with millennial
customers, particularly as their need
for both credit and deposit products
increases.
From an auto dealer perspective, Ally
has grown its base of active dealers
by 5 percent over the last year to
about 17,500 dealers, and nearly 25
percent of these dealers currently use
more than four of our products. Our
approximately 11,000 Growth Channel
dealers represent a substantial part of
our overall active dealer network and
reect a broad range of nameplates.
pride in the pristine composition of
our balance sheet, the diversied
nature of our funding prole and
adaptability of our operations to pursue
thoughtful opportunities as shifts in the
marketplace occur.
Retail deposits also continued to grow,
driving greater funding eciency
and stability, and our expanding base
of loyal customers presents future
opportunities to broaden and deepen
our relationships.
Our corporate nance business also
made strides, growing its average
portfolio balances by 30 percent
during the year and expanding into the
technology sector.
As I step back and look at these
accomplishments in total – solid
protability, achievement of
sustainable returns, removal of legacy
capital instruments, and exceptional
operational results – I am proud to say
that we have successfully achieved the
We also achieved a return on tangible
common equity (ROTCE) of more than
9 percent, improving more than 150
basis points year-over-year. Likewise,
we achieved our stated eciency
target of the mid-40 percent range for
2015, which drove positive operating
leverage. Contributing in part to
this improvement was the removal
of approximately $300 million in
controllable expenses over the past
two years.
Operationally, Ally’s results in 2015
were nothing short of exceptional,
with the company exceeding targets
for retail deposit growth and auto
originations. Our auto nance business
posted $41 billion in originations and
is more diversied than ever, with the
shift of capital from the incentivized
and lease business toward retail auto
contracts becoming a signicant
contributor toward consistent earnings.
Ally is building a successful business
for the long term. We take great
• Expanded active dealer network by 750+ to
17,500 dealers
• Built Ally Bank’s loyal deposit customer base to
1.1 million
• Ranked Best Online Bank by MONEY® Magazine for
fth year
• Working with online auto retailers and dealers to oer
digital auto nancing options
• Launched mobile virtual assistant, Ally Assist, for
deposit customers
• Sold more than 5 million vehicles on SmartAuction
internet auction since inception
• Introduced Ally Premier Protection, our industry-
leading vehicle protection plan
• Driving a distinctive culture of innovation, adaptability,
creativity and inclusion
• Provided free nancial education to 80,000+
consumers via Ally Wallet Wise program
• In 2015, Ally employees volunteered approximately
7,400 hours with nonprots across the U.S.
Building a Better Financial Services Company
Customers
Innovation
Culture & Community
II