FORT WORTH, Texas- GENERAL MOTORS FINANCIAL COMPANY, INC. (“GM Financial” or the “Company”) announced net income of $167 million for the quarter ended March 31, 2020, compared to $377 million for the quarter ended December 31, 2019, and $271 million for the quarter ended March 31, 2019.
Retail loan originations were $6.5 billion for the quarter ended March 31, 2020, compared to $5.5 billion for the quarter ended December 31, 2019, and $7.2 billion for the quarter ended March 31, 2019. The outstanding balance of retail finance receivables, net of fees was $42.5 billion at March 31, 2020, compared to $42.3 billion at December 31, 2019 and $41.8 billion at March 31, 2019.
Operating lease originations were $5.0 billion for the quarter ended March 31, 2020, compared to $5.4 billion for the quarter ended December 31, 2019, and $5.2 billion for the quarter ended March 31, 2019. Leased vehicles, net was $41.3 billion at March 31, 2020, compared to $42.1 billion at December 31, 2019 and $43.1 billion at March 31, 2019.
The outstanding balance of commercial finance receivables, net of fees was $12.3 billion at March 31, 2020, compared to $12.1 billion at December 31, 2019 and $12.4 billion at March 31, 2019.
Retail finance receivables 31-60 days delinquent were 2.7% of the portfolio at March 31, 2020 and 2.5% at March 31, 2019. Accounts more than 60 days delinquent were 1.1% of the portfolio at March 31, 2020 and 1.0% at March 31, 2019.
Annualized net charge-offs were 1.7% of average retail finance receivables for the quarter ended March 31, 2020 and 1.6% for the quarter ended March 31, 2019.
The Company had total available liquidity of $24.9 billion at March 31, 2020, consisting of $11.6 billion of cash and cash equivalents, $10.0 billion of borrowing capacity on unpledged eligible assets, $0.3 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 joint ventures that conduct automotive finance operations in China were $25 million for the quarter ended March 31, 2020, compared to $40 million for the quarter ended December 31, 2019, and $45 million for the quarter ended March 31, 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 March 31, 2020. This recording, along with the presentation slides and this release, will be posted to the Company’s website on May 6, 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.
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General Motors Financial Company, Inc. Consolidated Statements of Income (Unaudited, in millions) |
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Three Months Ended March 31, |
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2020 |
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2019 |
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Revenue |
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Finance charge income |
$ |
1,006 |
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$ |
987 |
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Leased vehicle income |
2,463 |
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|
2,509 |
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Other income |
92 |
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|
124 |
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Total revenue |
3,561 |
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|
3,620 |
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Costs and expenses |
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|
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Operating expenses |
358 |
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|
370 |
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Leased vehicle expenses |
1,697 |
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|
1,814 |
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Provision for loan losses |
466 |
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|
175 |
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Interest expense |
835 |
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|
947 |
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Total costs and expenses |
3,356 |
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|
3,306 |
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Equity income |
25 |
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|
45 |
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Income before income taxes |
230 |
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|
359 |
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Income tax provision |
63 |
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|
88 |
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Net income |
167 |
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|
271 |
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Less: cumulative dividends on preferred stock |
23 |
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|
23 |
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Net income attributable to common shareholder |
$ |
144 |
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$ |
248 |
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Consolidated Balance Sheets (Unaudited, in millions) |
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March 31, 2020 |
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December 31, 2019 |
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ASSETS |
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Cash and cash equivalents |
$ |
11,632 |
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$ |
3,311 |
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Finance receivables, net |
52,820 |
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|
53,473 |
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Leased vehicles, net |
41,296 |
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|
42,055 |
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Goodwill |
1,168 |
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|
1,185 |
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Equity in net assets of non-consolidated affiliates |
1,437 |
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|
1,455 |
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Related party receivables |
670 |
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|
678 |
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Other assets |
6,526 |
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|
7,060 |
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Total assets |
$ |
115,549 |
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$ |
109,217 |
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LIABILITIES AND SHAREHOLDERS' EQUITY |
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Liabilities |
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Secured debt |
$ |
46,170 |
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$ |
39,959 |
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Unsecured debt |
50,019 |
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|
48,979 |
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Deferred income |
3,480 |
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|
3,648 |
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Related party payables |
51 |
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|
82 |
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Other liabilities |
4,513 |
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3,823 |
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Total liabilities |
104,233 |
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96,491 |
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Total shareholders' equity |
11,316 |
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12,726 |
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Total liabilities and shareholders' equity |
$ |
115,549 |
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$ |
109,217 |
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Operational and Financial Data (Unaudited, Dollars in millions) |
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Three Months Ended March 31, |
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Originations |
2020 |
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2019 |
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Retail finance receivables originations |
$ |
6,497 |
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$ |
7,162 |
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Lease originations |
$ |
5,040 |
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$ |
5,210 |
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Three Months Ended March 31, |
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Average Earning Assets |
2020 |
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2019 |
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Average retail finance receivables |
$ |
42,416 |
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$ |
41,591 |
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Average commercial finance receivables |
11,678 |
|
12,167 |
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Average finance receivables |
54,094 |
|
53,758 |
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Average leased vehicles, net |
41,778 |
|
43,394 |
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Average earning assets |
$ |
95,872 |
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|
$ |
97,152 |
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Ending Earning Assets |
March 31, 2020 |
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December 31, 2019 |
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Retail finance receivables, net of fees |
$ |
42,504 |
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$ |
42,268 |
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Commercial finance receivables, net of fees |
12,282 |
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|
12,149 |
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Leased vehicles, net |
41,296 |
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|
42,055 |
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Ending earning assets |
$ |
96,082 |
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|
$ |
96,472 |
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Finance Receivables |
March 31, 2020 |
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December 31, 2019 |
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Retail |
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Retail finance receivables, net of fees |
$ |
42,504 |
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$ |
42,268 |
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Less: allowance for loan losses |
(1,879 |
) |
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(866 |
) |
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Total retail finance receivables, net |
40,625 |
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|
41,402 |
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Commercial |
|
|
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Commercial finance receivables, net of fees |
12,282 |
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|
12,149 |
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Less: allowance for loan losses |
(87 |
) |
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(78 |
) |
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Total commercial finance receivables, net |
12,195 |
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|
12,071 |
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Total finance receivables, net |
$ |
52,820 |
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|
$ |
53,473 |
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Allowance for Loan Losses |
March 31, 2020 |
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December 31, 2019 |
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Allowance for loan losses as a percentage of retail finance receivables, net of fees |
4.4 |
% |
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2.0 |
% |
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Allowance for loan losses as a percentage of commercial finance receivables, net of fees |
0.7 |
% |
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0.6 |
% |
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Delinquencies |
March 31, 2020 |
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March 31, 2019 |
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Loan delinquency as a percentage of ending retail finance receivables: |
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31 - 60 days |
2.7 |
% |
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2.5 |
% |
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Greater than 60 days |
1.1 |
|
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1.0 |
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Total |
3.8 |
% |
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3.5 |
% |
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Three Months Ended March 31, |
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Charge-offs and Recoveries |
2020 |
|
2019 |
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Charge-offs |
$ |
340 |
|
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$ |
307 |
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Less: recoveries |
(156 |
) |
|
(145 |
) |
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Net charge-offs |
$ |
184 |
|
|
$ |
162 |
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Net charge-offs as an annualized percentage of average retail finance receivables |
1.7 |
% |
|
1.6 |
% |
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Three Months Ended March 31, |
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Operating Expenses |
2020 |
|
2019 |
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Operating expenses as an annualized percentage of average earning assets |
1.5 |
% |
|
1.5 |
% |
