Ally Bank 2015 Annual Report Download - page 5

In addition to the operational
opportunities ahead, we also have
nancial opportunities that will drive
results. Ally will have lower preferred
dividends going forward as a result
of the capital actions in 2015, and we
will continue to benet from increased
levels of bank funding. We also aim to
initiate a dividend and share buyback
program in 2016, pending regulatory
approval.
On the regulatory front, Ally Bank was
recently approved to become a state
member bank, thereby simplifying
the company’s regulatory structure
by having a single federal regulator
for both the parent and the banking
subsidiary. This is a key step that
will enable Ally to have a regulatory
environment more in line with
institutions of our size and scope.
We are committed to continuing to
raise the bar and drive strong results
along a number of dimensions and build
this company to be successful through
a variety of economic and market
cycles. While we are pleased with our
results in 2015, we are energized by
the opportunities that are ahead for
2016 and beyond. I am honored to lead
this great company and know we have
planted the seeds to ensure a bright
future for our customers, employees
and shareholders.
Thank you for your continued support
of Ally.
a bid. The wholesale version of the
SmartAuction platform crossed over
5 million sales in 2015, and we believe
this digital platform has even greater
potential in the broader marketplace.
As we evaluated opportunities for
additional consumer nancing
products, we started rst by listening
to our customers. Among the most
requested new products by Ally
customers are a credit card and
mortgage.
In 2016, we will launch both of these
oerings with the same customer-
friendly approach that consumers
expect from Ally. The credit card is
expected mid-year, and the mortgage
oering will follow later in the year and
oer asset diversication and some
earnings growth. We will not retain the
mortgage servicing rights and will have
limited rep and warrant risk.
Our auto business will still be at the
heart of what we do, and we continue to
evaluate additional product and service
opportunities. Our approach to product
diversication is to deliver oerings
that deepen and expand our customer
relationships, while also being good
stewards of capital and taking steps
that drive shareholder returns over
time.
Value Creation
As we focus on making Ally a great
company, we know part of that is also
making it a great investment. Our goal
for 2016 is to deliver earnings per share
growth of approximately 15 percent
and a core ROTCE of between 10 and
12 percent.
Approximately one-third of Ally’s total
originations in 2015 were from the
Growth Channel and each year our
number of relationships, as well as
contracts per month from this group,
have increased. Our high-tech and
high-touch business model is key to
building, retaining and expanding
these relationships over time, and
that model applies to brick-and-
mortar dealerships, as well as online
marketplaces. We are paying careful
attention to customer behaviors and
changes in preferences to not only
shop, but also nance a vehicle online.
Innovation
Ally’s spirit of innovation has been
a connective thread that drives the
adaptability and marketplace success
of our franchises. We were the original
disrupter in online banking, and the
breadth and depth of our approach to
the indirect auto nance business has
been unmatched and a dening force in
the industry.
As digitization continues to transform
the nancial services marketplace,
Ally is uniquely positioned. We have a
leading marketplace standing in digital
nancial services, a brand and business
model that support the trend in
consumer preferences, and the safety
and soundness of a bank.
As we look ahead, we will be making
incremental investments in products
and technology that continue to evolve
the business and drive shareholder
returns over time. This includes
building our capabilities to support
the move toward digital interfaces in
the auto buying process, both from a
dealer and consumer perspective.
Over the past year, Ally has forged
relationships with online auto retailers
Beepi and Carvana, as well as began
to explore a pilot of a consumer-to-
business adaptation of our leading
digital auto auction. This platform
would enable consumers to post and
sell their vehicle to dealers who placed
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Capitalize on the shift
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Ensure our businesses are
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Participate in thoughtful
customer expansion
opportunities in 2016
Looking to the Future
Capitalize on the shift
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Jerey Brown
Chief Executive Ocer
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