Ally Bank 2012 Annual Report Download - page 62

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The following table includes consumer 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 Net charge-off ratios (a)
Year ended December 31, ($ in millions)2012 2011 2012 2011
Domestic
Consumer automobile $ 267 $ 249 0.5% 0.6%
Consumer mortgage
1st Mortgage 82 115 1.2 1.7
Home equity 56 74 2.0 2.3
Total domestic 405 438 0.7 0.8
Foreign
Consumer automobile 102 72 0.6 0.4
Consumer mortgage
1st Mortgage —44.4 1.2
Home equity ————
Total foreign 102 76 0.6 0.4
Total consumer finance receivables and loans $ 507 $ 514 0.7 0.7
(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.
Our net charge-offs from total consumer automobile finance receivables and loans were $369 million for the year ended December 31,
2012, compared to $321 million for the year ended December 31, 2011. The $18 million increase in net charge-offs from the domestic
automobile finance receivables and loans for the year ended December 31, 2012, was driven primarily by higher outstandings as the net
charge-off rate improved.
Our net charge-offs from total consumer mortgage receivables and loans were $138 million for the year ended December 31, 2012,
compared to $193 million in 2011. The decrease was driven by the improved mix of remaining loans as the lower quality legacy loans
continued to runoff.
The following table summarizes the unpaid principal balance of total consumer loan originations for the periods shown. Total consumer
loan originations include loans classified as finance receivables and loans and loans held-for-sale during the period.
Year ended December 31, ($ in millions)2012 2011
Domestic
Consumer automobile $ 30,351 $ 32,933
Consumer mortgage
1st Mortgage 32,465 56,258
Home equity ——
Total domestic 62,816 89,191
Foreign
Consumer automobile 9,653 9,983
Consumer mortgage
1st Mortgage —1,403
Home equity ——
Total foreign 9,653 11,386
Total consumer loan originations $ 72,469 $ 100,577
Total automobile-originated loans decreased $2.9 billion for the year ended December 31, 2012, compared to 2011. The decrease was
primarily due to lower retail penetration at both GM and Chrysler. Total mortgage-originated loans decreased $25.2 billion for the year ended
December 31, 2012. The decline in loan production was primarily driven by the reduction in correspondent lending.
Consumer loan originations retained on-balance sheet as held-for-investment were $42.2 billion at December 31, 2012, compared to
$44.6 billion at December 31, 2011. The decrease was primarily due to lower retail penetration at both GM and Chrysler.
Table of Contents
Management's Discussion and Analysis
Ally Financial Inc. • Form 10-K