General Motors Financial Company, Inc. - FORM 8-K - EX-99.1 - November 5, 2020

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Exhibit 99.1

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GM FINANCIAL REPORTS THIRD QUARTER 2020
OPERATING RESULTS

•Third quarter net income of $893 million
•Retail loan and operating lease originations of $12.8 billion for the third quarter
•Earning assets of $96.5 billion at September 30, 2020
•Available liquidity of $29.1 billion at September 30, 2020

FORT WORTH, TEXAS November 5, 2020 – GENERAL MOTORS FINANCIAL COMPANY, INC.
(“GM Financial” or the “Company”) announced net income of $893 million for the quarter ended September 30, 2020, compared to $173 million for the quarter ended June 30, 2020, and $516 million for the quarter ended September 30, 2019. Net income was $1.2 billion for both the nine months ended September 30, 2020 and 2019.

Retail loan originations were $7.3 billion for the quarter ended September 30, 2020, compared to $8.7 billion for the quarter ended June 30, 2020, and $5.4 billion for the quarter ended September 30, 2019. Retail loan originations for the nine months ended September 30, 2020 were $22.5 billion, compared to $19.7 billion for the nine months ended September 30, 2019. The outstanding balance of retail finance receivables, net of fees was $48.7 billion at September 30, 2020, compared to $42.3 billion at December 31, 2019 and $42.0 billion at September 30, 2019.

Operating lease originations were $5.5 billion for the quarter ended September 30, 2020, compared to $3.2 billion for the quarter ended June 30, 2020, and $5.8 billion for the quarter ended September 30, 2019. Operating lease originations for the nine months ended September 30, 2020 were $13.7 billion, compared to $17.0 billion for the nine months ended September 30, 2019. Leased vehicles, net was $39.4 billion at September 30, 2020, compared to $42.1 billion at December 31, 2019 and $42.5 billion at September 30, 2019.

The outstanding balance of commercial finance receivables, net of fees was $8.5 billion at September 30, 2020, compared to $12.1 billion at December 31, 2019 and $13.3 billion at September 30, 2019.

Retail finance receivables 31-60 days delinquent were 2.1% of the portfolio at September 30, 2020 and 3.0% at September 30, 2019. Accounts more than 60 days delinquent were 0.8% of the portfolio at September 30, 2020 and 1.2% at September 30, 2019.

Annualized net charge-offs were 1.2% of average retail finance receivables for the quarter ended September 30, 2020 and 1.6% for the quarter ended September 30, 2019. Annualized net charge-offs were 1.5% for both the nine months ended September 30, 2020 and 2019.

The Company had total available liquidity of $29.1 billion at September 30, 2020, consisting of $4.7 billion of cash and cash equivalents, $20.9 billion of borrowing capacity on unpledged eligible assets, $0.5 billion of borrowing capacity on committed unsecured lines of credit, $1.0 billion of borrowing capacity on the Junior Subordinated Revolving Credit Facility from GM, and $2.0 billion of borrowing capacity on the GM Revolving 364-Day Credit Facility.

Earnings resulting from the Company's equity investment in joint ventures that conduct automotive finance operations in the Asia/Pacific region were $46 million for the quarter ended September 30, 2020, compared to $42 million for the quarter ended June 30, 2020, and $39 million for the quarter ended September 30, 2019. Earnings for the nine months ended September 30, 2020 were $113 million, compared to $126 million for the nine months ended September 30, 2019.



About GM Financial

General Motors Financial Company, Inc. is the wholly-owned captive finance subsidiary of General Motors Company and is headquartered in Fort Worth, Texas. In lieu of a conference call, management recorded remarks addressing the Company’s results of operations for the quarter ended September 30, 2020. This recording, along with the presentation slides and this release, will be posted to the Company’s website on November 5, 2020 by 11:00 a.m. central time. The recording and materials can be accessed via the Investor Relations section of the Company’s website at https://investor.gmfinancial.com.

Forward-Looking Statements

This release contains several “forward-looking statements.” Forward-looking statements are those that use words such as “believe,” “expect,” “intend,” “plan,” “may,” “likely,” “should,” “estimate,” “continue,” “future” or “anticipate” and other comparable expressions. These words indicate future events and trends. Forward-looking statements are our current views with respect to future events and financial performance. These forward-looking statements are subject to many assumptions, risks and uncertainties that could cause actual results to differ significantly from historical results or from those anticipated by us. The most significant risks are detailed from time to time in our filings and reports with the Securities and Exchange Commission, including our annual report on Form 10-K for the year ended December 31, 2019 and our subsequent quarterly reports on Form 10-Q. Such risks include - but are not limited to - the length and severity of the COVID-19 pandemic; GM's ability to sell new vehicles that we finance in the markets we serve; dealers' effectiveness in marketing our financial products to consumers; the viability of GM-franchised dealers that are commercial loan customers; the sufficiency, availability and cost of sources of financing, including credit facilities, securitization programs and secured and unsecured debt issuances; the adequacy of our underwriting criteria for loans and leases and the level of net charge-offs, delinquencies and prepayments on the loans and leases we purchase or originate; our ability to effectively manage capital or liquidity consistent with evolving business or operational needs, risk management standards and regulatory or supervisory requirements; the adequacy of our allowance for loan losses on our finance receivables; our ability to maintain and expand our market share due to competition in the automotive finance industry from a large number of banks, credit unions, independent finance companies and other captive automotive finance subsidiaries; changes in the automotive industry that result in a change in demand for vehicles and related vehicle financing; the effect, interpretation or application of new or existing laws, regulations, court decisions and accounting pronouncements; adverse determinations with respect to the application of existing laws, or the results of any audits from tax authorities, as well as changes in tax laws and regulations, supervision, enforcement and licensing across various jurisdictions; the prices at which used vehicles are sold in the wholesale auction markets; vehicle return rates, our ability to estimate residual value at the inception of a lease and the residual value performance on vehicles we lease; interest rate fluctuations and certain related derivatives exposure; our joint ventures in China, which we cannot operate solely for our benefit and over which we have limited control; changes in the determination of LIBOR and other benchmark rates; our ability to secure private customer and employee data or our proprietary information, manage risks related to security breaches and other disruptions to our networks and systems and comply with enterprise data regulations in all key market regions; foreign currency exchange rate fluctuations and other risks applicable to our operations outside of the U.S.; and changes in local, regional, national or international economic, social or political conditions. If one or more of these risks or uncertainties materialize, or if underlying assumptions prove incorrect, our actual results may vary materially from those expected, estimated or projected. It is advisable not to place undue reliance on any forward-looking statements. We undertake no obligation to, and do not, publicly update or revise any forward-looking statements, except as required by federal securities laws, whether as a result of new information, future events or otherwise.




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General Motors Financial Company, Inc.
Consolidated Statements of Income
(Unaudited, in millions)
Three Months Ended September 30,Nine Months Ended September 30,
2020201920202019
Revenue
Finance charge income
$999 $1,043 $2,971 $3,038 
Leased vehicle income
2,354 2,515 7,203 7,536 
Other income
68 101 231 344 
  Total revenue3,421 3,659 10,405 10,918 
Costs and expenses
Operating expenses
394 384 1,097 1,131 
Leased vehicle expenses
1,126 1,574 4,602 5,025 
Provision for loan losses
31 150 824 504 
Interest expense
709 879 2,332 2,778 
             Total costs and expenses2,260 2,987 8,855 9,438 
Equity income
46 39 113 126 
Income before income taxes
1,207 711 1,663 1,606 
Income tax provision
314 195 430 416 
Net income
893 516 1,233 1,190 
Less: cumulative dividends on preferred stock
24 23 69 68 
Net income attributable to common shareholder
$869 $493 $1,164 $1,122 
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Consolidated Balance Sheets
(Unaudited, in millions)
 
September 30, 2020December 31, 2019
ASSETS
Cash and cash equivalents
$4,705 $3,311 
Finance receivables, net
55,153 53,473 
Leased vehicles, net
39,358 42,055 
Goodwill
1,167 1,185 
Equity in net assets of non-consolidated affiliates
1,485 1,455 
Related party receivables
566 678 
Other assets
6,777 7,060 
Total assets
$109,211 $109,217 
LIABILITIES AND SHAREHOLDERS' EQUITY
Liabilities
Secured debt
$35,671 $39,959 
Unsecured debt
53,151 48,979 
Deferred income
3,093 3,648 
Related party payables
235 82 
Other liabilities
4,514 3,823 
Total liabilities
96,66496,491
Total shareholders' equity
12,54712,726
Total liabilities and shareholders' equity
$109,211 $109,217 
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Operational and Financial Data
(Unaudited, Dollars in millions)
Three Months Ended September 30,Nine Months Ended September 30,
Originations
2020201920202019
Retail finance receivables originations
$7,301 $5,407 $22,491 $19,682 
Lease originations
$5,532 $5,843 $13,737 $16,964 


Three Months Ended September 30,Nine Months Ended September 30,
Average Earning Assets
2020201920202019
Average retail finance receivables
$47,818 $42,311 $45,016 $42,103 
Average commercial finance receivables
8,04613,118 9,89712,614
Average finance receivables
55,86455,429 54,91354,717
Average leased vehicles, net
39,50442,75440,56243,059
Average earning assets
$95,368 $98,183 $95,475 $97,776 


Ending Earning Assets
September 30, 2020December 31, 2019
Retail finance receivables, net of fees
$48,695 $42,268 
Commercial finance receivables, net of fees
8,461 12,149 
Leased vehicles, net
39,358 42,055 
Ending earning assets
$96,514 $96,472 


Finance Receivables
September 30, 2020December 31, 2019
Retail
Retail finance receivables, net of fees
$48,695 $42,268 
Less: allowance for loan losses
(1,936)(866)
Total retail finance receivables, net
46,759 41,402 
Commercial
Commercial finance receivables, net of fees
8,461 12,149 
Less: allowance for loan losses
(67)(78)
Total commercial finance receivables, net
8,394 12,071 
Total finance receivables, net
$55,153 $53,473 
    












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Allowance for Loan Losses
September 30, 2020December 31, 2019
Allowance for loan losses as a percentage of retail finance receivables, net of fees
4.0 %2.0 %
Allowance for loan losses as a percentage of commercial finance receivables, net of fees
0.8 %0.6 %


Delinquencies
September 30, 2020September 30, 2019
Loan delinquency as a percentage of ending retail finance receivables:
    31 - 60 days
2.1 %3.0 %
    Greater than 60 days
0.8 1.2 
Total
2.9 %4.2 %


Three Months Ended September 30,Nine Months Ended September 30,
Charge-offs and Recoveries
2020201920202019
Charge-offs
$280 $300 $876 $886 
Less: recoveries
(133)(133)(378)(410)
Net charge-offs
$147 $167 $498 $476 
Net charge-offs as an annualized percentage of average retail finance receivables
1.2 %1.6 %1.5 %1.5 %

Three Months Ended September 30,Nine Months Ended September 30,
Operating Expenses
2020201920202019
Operating expenses as an annualized percentage of average earning assets
1.6 %1.6 %1.5 %1.5 %





Investor Relations contact:
Stephen Jones
Vice President, Investor Relations
(817) 302-7119
Investors@gmfinancial.com

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General Motors Financial Company, Inc. Reports