GM Financial Reports June Quarter Operating Results

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GM Financial Reports June Quarter Operating Results

  • Earnings of $178 million
  • Consumer loan and lease originations of $3.3 billion
  • End of period earning assets of $26.2 billion
  • Results reflect acquisition of international operations completed to date

FORT WORTH, Texas--(BUSINESS WIRE)-- GENERAL MOTORS FINANCIAL COMPANY, INC. ("GM Financial" or the "Company") announced earnings of $178 million for the quarter ended June 30, 2013, compared to $137 million for the quarter ended June 30, 2012. Earnings for the six months ended June 30, 2013 were $284 million, compared to $249 million for the six months ended June 30, 2012. Earnings include $16 million and $22 million in pre-tax acquisition and integration expenses for the quarter ended June 30, 2013 and the six month period ended June 30, 2013, respectively.

Consumer loan originations were $2.5 billion for the quarter ended June 30, 2013, compared to $1.4 billion for the quarter ended March 31, 2013, and $1.5 billion for the quarter ended June 30, 2012. Consumer loan originations in North America for the quarter ended June 30, 2013 were $1.4 billion. Consumer loan originations for the six months ended June 30, 2013 were $3.8 billion, compared to $2.9 billion for the six months ended June 30, 2012. Consumer loan originations in North America for the six months ended June 30, 2013 were $2.7 billion. The outstanding balance of consumer finance receivables totaled $18.6 billion at June 30, 2013.


Operating lease originations of General Motors Company ("GM") vehicles were $834 million for the quarter ended June 30, 2013, compared to $620 million for the quarter ended March 31, 2013 and $394 million for the quarter ended June 30, 2012. Operating lease originations for the six months ended June 30, 2013 were $1.5 billion, compared to $778 million for the six months ended June 30, 2012. Leased vehicles, net, totaled $2.7 billion at June 30, 2013.

The outstanding balance of commercial finance receivables was $4.9 billion at June 30, 2013 compared to $883 million at March 31, 2013 and $560 million at December 31, 2012. The outstanding balance of the North America commercial finance receivables at June 30, 2013 was $1.2 billion.

Consumer finance receivables 31-to-60 days delinquent were 3.4% of the portfolio at June 30, 2013, compared to 4.1% at June 30, 2012. Accounts more than 60 days delinquent were 1.4% of the portfolio at June 30, 2013, compared to 1.5% a year ago. Consumer finance receivables 31-to-60 and more than 60 days delinquent for North America were 5.3% and 1.8%, respectively, at June 30, 2013.

Annualized net credit losses were 1.4% of average consumer finance receivables for the quarter ended June 30, 2013, compared to 1.5% for the quarter ended June 30, 2012. For the six months ended June 30, 2013, annualized consumer net credit losses were 1.8%, compared to 2.0% last year. Annualized net credit losses for North America as a percent of average North America consumer finance receivables were 2.1% and 2.3%, respectively, for the three and six months ended June 30, 2013.

The Company had total available liquidity of $4.1 billion at June 30, 2013, consisting of $1.8 billion of unrestricted cash, approximately $1.6 billion of borrowing capacity on unpledged eligible assets, $76 million of borrowing capacity on unsecured lines of credit and $600 million on a line of credit from GM.

The Company acquired Ally Financial's auto finance and financial services operations in Germany, the United Kingdom, Italy, Sweden, Switzerland, Austria, Belgium, the Netherlands, Greece, Spain, Chile, Colombia and Mexico on April 1, 2013, and we acquired Ally Financial's auto finance and financial services operations in France and Portugal on June 1, 2013. The results of operations of the acquired entities since the applicable acquisition dates are included in our results for the three and six months ended June 30, 2013; accordingly, the information provided below in the Consolidated Statements of Income, the Consolidated Balance Sheet and the accompanying operational data for the three and six months ended June 30, 2012 represent only operations in North America. Furthermore, the presentation convention has been changed from "thousands" to "millions" to simplify the review and analysis of the financial information. Some prior period amounts may not round under the new convention in a manner consistent with the previous presentation.

About GM Financial

General Motors Financial Company, Inc. is the captive finance company for and a wholly-owned subsidiary of General Motors Company and is headquartered in Fort Worth, Texas. For more information, visit www.gmfinancial.com.

Forward-Looking Statements

Except for the historical information contained herein, the matters discussed in this news release include forward-looking statements which are the Company's 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 those anticipated by the Company. The most significant of these risks are detailed from time to time in the Company's filings and reports with the Securities and Exchange Commission including the Company's annual report on Form 10-K for the year ended December 31, 2012. Such risks include - but are not limited to - our ability to close the acquisition of the remaining portions of Ally Financial's international operations that we have not already acquired and integrate the operations that we have acquired and will acquire into our business successfully, changes in general economic and business conditions, GM's ability to sell new vehicles that we finance, our dependence on the financial condition of GM dealers, interest rate and exchange rate fluctuations, our financial condition and liquidity, as well as future cash flows and earnings, competition, the effect, interpretation or application of new or existing laws, regulations, court decisions and accounting pronouncements, the availability of sources of financing, the level of net charge-offs, delinquencies and prepayments on the loans and leases we originate, the prices at which used cars are sold in the wholesale auction markets, changes in business strategy, including acquisitions and expansion of product lines and credit risk appetite, and significant litigation. If one or more of these risks of uncertainties materializes, or if underlying assumptions prove incorrect, the Company's actual results may vary materially from those expected, estimated or projected. Actual events or results may differ materially. It is advisable not to place undue reliance on any forward-looking statements. The Company undertakes no obligation to, and does 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.

    
 
General Motors Financial Company, Inc.
Consolidated Statements of Income
(Unaudited, in Millions)
 
Three Months EndedSix Months Ended
June 30,June 30,
2013  20122013  2012
Revenue
Finance charge income$647$404$1,062$762
Leased vehicle income13666243119
Other income 53 17 71 37
 836 487 1,376 918
Costs and expenses
Operating expenses19193299191
Leased vehicle expenses1015118192
Provision for loan losses10062194110
Interest expense16464246127
Acquisition and integration expenses 16  22 
 572 270 942 520
Income before income taxes264217434398
Income tax provision 86 80 150 149
Net income$178$137$284$249
   
 
Consolidated Balance Sheets
(Unaudited, in Millions)
 
June 30, 2013December 31, 2012
Assets
Cash and cash equivalents$1,757$1,289
Finance receivables, net22,94510,998
Restricted cash1,426744
Property and equipment, net12152
Leased vehicles, net2,6551,703
Deferred income taxes120107
Goodwill1,1581,108
Related party receivables10566
Other assets 298 130
Total assets$30,585$16,197
Liabilities and Shareholder's Equity
Liabilities
Secured debt$17,548$9,378
Unsecured debt5,2381,500
Accounts payable and accrued expenses486217
Deferred income12370
Taxes payable12493
Related party taxes payable644559
Other liabilities1351
Related party payable 385 
Total liabilities 24,683 11,818
 
Shareholder's equity 5,902 4,379
Total liabilities and shareholder's equity$30,585$16,197
  
 
Operational Data
(Unaudited, Dollars in Millions)
 
Three Months Ended
June 30,
2013  2012
North America  International  TotalNorth America
Consumer finance receivables originations$1,351$1,117$2,468$1,489
GM lease originations$834$834$394

GM new vehicle loans and leases as a percent of total loan and lease originations

58.8%86.0%68.0%45.4%
 
 
Six Months Ended
June 30,
20132012
North AmericaInternationalTotalNorth America
Consumer finance receivables originations$2,710$1,117$3,827$2,885
GM lease originations$1,454$1,454$778

GM new vehicle loans and leases as a percent of total loan and lease originations

55.2%86.0%61.7%45.0%
 
 
Three Months Ended
June 30,
20132012
North AmericaInternationalTotalNorth America
Average consumer finance receivables$11,323$6,957$18,280$10,238

Average commercial finance receivables

 1,059 

 

3,515

 

 

4,574

  56 
Average finance receivables12,382

10,472

22,854

10,294
Average leased vehicles, net 2,410  7  2,417  1,231 
Average earning assets$14,792 $

10,479

 $

25,271

 $11,525 
 
 
Six Months Ended
June 30,
20132012
North America

International

TotalNorth America
Average consumer finance receivables$11,200$3,615$14,815$10,030
Average commercial finance receivables 882  1,725  2,607  32 
Average finance receivables12,0825,34017,42210,062
Average leased vehicles, net 2,150  

4

  

2,154

  1,100 
Average earning assets$14,232 $

5,344

 $

19,576

 $11,162 
        
 
June 30, 2013December 31, 2012
North AmericaInternationalTotalNorth America
Consumer finance receivables$11,379$7,238$18,617$10,993
Commercial finance receivables1,1693,7924,961560
Leased vehicles, net 2,650  5  2,655  1,703 
Ending Earning Assets$15,198 $11,035 $26,233 $13,256 
 
 
June 30, 2013December 31, 2012
ConsumerNorth AmericaInternationalTotalNorth America

Pre-acquisition consumer finance receivables - outstanding balance

$1,432 $1,305 $2,737 $2,162 

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