FORT WORTH, Texas--(BUSINESS WIRE)--GENERAL MOTORS FINANCIAL COMPANY, INC. (“GM Financial” or the “Company”) announced net income of $173 million for the quarter ended June 30, 2020, compared to $167 million for the quarter ended March 31, 2020, and $403 million for the quarter ended June 30, 2019. Net income for the six months ended June 30, 2020 was $340 million, compared to $674 million for the six months ended June 30, 2019.
Retail loan originations were $8.7 billion for the quarter ended June 30, 2020, compared to $6.5 billion for the quarter ended March 31, 2020, and $7.1 billion for the quarter ended June 30, 2019. Retail loan originations for the six months ended June 30, 2020 were $15.2 billion, compared to $14.3 billion for the six months ended June 30, 2019. The outstanding balance of retail finance receivables, net of fees was $46.5 billion at June 30, 2020, compared to $42.3 billion at December 31, 2019 and $42.7 billion at June 30, 2019.
Operating lease originations were $3.2 billion for the quarter ended June 30, 2020, compared to $5.0 billion for the quarter ended March 31, 2020, and $5.9 billion for the quarter ended June 30, 2019. Operating lease originations for the six months ended June 30, 2020 were $8.2 billion, compared to $11.1 billion for the six months ended June 30, 2019. Leased vehicles, net was $39.6 billion at June 30, 2020, compared to $42.1 billion at December 31, 2019 and $42.9 billion at June 30, 2019.
The outstanding balance of commercial finance receivables, net of fees was $7.9 billion at June 30, 2020, compared to $12.1 billion at December 31, 2019 and $13.0 billion at June 30, 2019.
Retail finance receivables 31-60 days delinquent were 2.2% of the portfolio at June 30, 2020 and 2.5% at June 30, 2019. Accounts more than 60 days delinquent were 1.3% of the portfolio at June 30, 2020 and 1.2% at June 30, 2019.
Annualized net charge-offs were 1.5% of average retail finance receivables for the quarter ended June 30, 2020 and 1.4% for the quarter ended June 30, 2019. For the six months ended June 30, 2020, annualized net charge-offs were 1.6%, compared to 1.5% for the six months ended June 30, 2019.
The Company had total available liquidity of $25.0 billion at June 30, 2020, consisting of $6.5 billion of cash and cash equivalents, $15.2 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 $42 million for the quarter ended June 30, 2020, compared to $25 million for the quarter ended March 31, 2020, and $42 million for the quarter ended June 30, 2019. Earnings for the six months ended June 30, 2020 were $67 million, compared to $87 million for the six months ended June 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 June 30, 2020. This recording, along with the presentation slides and this release, will be posted to the Company’s website on July 29, 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 June 30, |
|
Six Months Ended June 30, |
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|
|
2020 |
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2019 |
|
2020 |
|
2019 |
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Revenue |
|
|
|
|
|
|
|
||||||||
|
Finance charge income |
$ |
966 |
|
|
$ |
1,008 |
|
|
$ |
1,972 |
|
|
$ |
1,995 |
|
|
Leased vehicle income |
2,386 |
|
|
2,512 |
|
|
4,849 |
|
|
5,021 |
|
||||
|
Other income |
71 |
|
|
119 |
|
|
163 |
|
|
243 |
|
||||
|
Total revenue |
3,423 |
|
|
3,639 |
|
|
6,984 |
|
|
7,259 |
|
||||
|
Costs and expenses |
|
|
|
|
|
|
|
||||||||
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Operating expenses |
345 |
|
|
377 |
|
|
703 |
|
|
747 |
|
||||
|
Leased vehicle expenses |
1,779 |
|
|
1,637 |
|
|
3,476 |
|
|
3,451 |
|
||||
|
Provision for loan losses |
327 |
|
|
179 |
|
|
793 |
|
|
354 |
|
||||
|
Interest expense |
788 |
|
|
952 |
|
|
1,623 |
|
|
1,899 |
|
||||
|
Total costs and expenses |
3,239 |
|
|
3,145 |
|
|
6,595 |
|
|
6,451 |
|
||||
|
Equity income |
42 |
|
|
42 |
|
|
67 |
|
|
87 |
|
||||
|
Income before income taxes |
226 |
|
|
536 |
|
|
456 |
|
|
895 |
|
||||
|
Income tax provision |
53 |
|
|
133 |
|
|
116 |
|
|
221 |
|
||||
|
Net income |
173 |
|
|
403 |
|
|
340 |
|
|
674 |
|
||||
|
Less: cumulative dividends on preferred stock |
22 |
|
|
22 |
|
|
45 |
|
|
45 |
|
||||
|
Net income attributable to common shareholder |
$ |
151 |
|
|
$ |
381 |
|
|
$ |
295 |
|
|
$ |
629 |
|
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Consolidated Balance Sheets (Unaudited, in millions) |
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|
June 30, 2020 |
|
December 31, 2019 |
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|
ASSETS |
|
|
|
||||
|
Cash and cash equivalents |
$ |
6,512 |
|
|
$ |
3,311 |
|
|
Finance receivables, net |
|
52,262 |
|
|
|
53,473 |
|
|
Leased vehicles, net |
|
39,601 |
|
|
|
42,055 |
|
|
Goodwill |
|
1,167 |
|
|
|
1,185 |
|
|
Equity in net assets of non-consolidated affiliates |
|
1,484 |
|
|
|
1,455 |
|
|
Related party receivables |
|
1,570 |
|
|
|
678 |
|
|
Other assets |
|
8,729 |
|
|
|
7,060 |
|
|
Total assets |
$ |
111,325 |
|
|
$ |
109,217 |
|
|
LIABILITIES AND SHAREHOLDERS' EQUITY |
|
|
|
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|
Liabilities |
|
|
|
||||
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Secured debt |
$ |
40,308 |
|
|
$ |
39,959 |
|
|
Unsecured debt |
|
51,944 |
|
|
|
48,979 |
|
|
Deferred income |
|
3,185 |
|
|
|
3,648 |
|
|
Related party payables |
|
65 |
|
|
|
82 |
|
|
Other liabilities |
|
4,770 |
|
|
|
3,823 |
|
|
Total liabilities |
|
100,272 |
|
|
|
96,491 |
|
|
Total shareholders' equity |
|
11,053 |
|
|
|
12,726 |
|
|
Total liabilities and shareholders' equity |
$ |
111,325 |
|
|
$ |
109,217 |
|
|
Operational and Financial Data (Unaudited, Dollars in millions) |
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|
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Three Months Ended June 30, |
|
Six Months Ended June 30, |
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Originations |
2020 |
|
2019 |
|
2020 |
2019 |
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|
Retail finance receivables originations |
$ |
8,693 |
|
$ |
7,113 |
|
$ |
15,190 |
$ |
14,275 |
|
|
Lease originations |
$ |
3,165 |
|
$ |
5,911 |
|
$ |
8,205 |
$ |
11,121 |
|
|
|
Three Months Ended June 30, |
|
Six Months Ended June 30, |
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|
Average Earning Assets |
2020 |
|
2019 |
|
2020 |
|
2019 |
||||
|
Average retail finance receivables |
$ |
44,636 |
|
$ |
42,447 |
|
$ |
43,564 |
|
$ |
42,018 |
|
Average commercial finance receivables |
|
10,061 |
|
|
12,606 |
|
|
10,668 |
|
|
12,389 |
|
Average finance receivables |
|
54,697 |
|
|
55,053 |
|
|
54,232 |
|
|
54,407 |
|
Average leased vehicles, net |
|
40,346 |
|
|
42,998 |
|
|
41,028 |
|
|
43,216 |
|
Average earning assets |
$ |
95,043 |
|
$ |
98,051 |
|
$ |
95,260 |
|
$ |
97,623 |
|
Ending Earning Assets |
June 30, 2020 |
|
December 31, 2019 |
||||
|
Retail finance receivables, net of fees |
$ |
46,489 |
|
|
$ |
42,268 |
|
|
Commercial finance receivables, net of fees |
7,884 |
|
|
12,149 |
|
||
|
Leased vehicles, net |
39,601 |
|
|
42,055 |
|
||
|
Ending earning assets |
$ |
93,974 |
|
|
$ |
96,472 |
|
|
Finance Receivables |
June 30, 2020 |
|
December 31, 2019 |
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|
Retail |
|
|
|
||||
|
Retail finance receivables, net of fees |
$ |
46,489 |
|
|
$ |
42,268 |
|
|
Less: allowance for loan losses |
(2,044 |
) |
|
(866 |
) |
||
|
Total retail finance receivables, net |
44,445 |
|
|
41,402 |
|
||
|
Commercial |
|
|
|
||||
|
Commercial finance receivables, net of fees |
7,884 |
|
|
12,149 |
|
||
|
Less: allowance for loan losses |
(67 |
) |
|
(78 |
) |
||
|
Total commercial finance receivables, net |
7,817 |
|
|
12,071 |
|
||
|
Total finance receivables, net |
$ |
52,262 |
|
|
$ |
53,473 |
|
|
Allowance for Loan Losses |
June 30, 2020 |
|
December 31, 2019 |
||
|
Allowance for loan losses as a percentage of retail finance receivables, net of fees |
4.4 |
% |
|
2.0 |
% |
|
Allowance for loan losses as a percentage of commercial finance receivables, net of fees |
0.8 |
% |
|
0.6 |
% |
|
Delinquencies |
June 30, 2020 |
|
June 30, 2019 |
||
|
Loan delinquency as a percentage of ending retail finance receivables: |
|
|
|
||
|
31 - 60 days |
2.2 |
% |
|
2.5 |
% |
|
Greater than 60 days |
1.3 |
|
|
1.2 |
|
|
Total |
3.5 |
% |
|
3.7 |
% |
|
|
Three Months Ended June 30, |
|
Six Months Ended June 30, |
||||||||||||
|
Charge-offs and Recoveries |
2020 |
|
2019 |
|
2020 |
|
2019 |
||||||||
|
Charge-offs |
$ |
256 |
|
|
$ |
279 |
|
|
$ |
596 |
|
|
$ |
586 |
|
|
Less: recoveries |
|
(89 |
) |
|
|
(132 |
) |
|
|
(245 |
) |
|
|
(277 |
) |
|
Net charge-offs |
$ |
167 |
|
|
$ |
147 |
|
|
$ |
351 |
|
|
$ |
309 |
|
|
Net charge-offs as an annualized percentage of average retail finance receivables |
|
1.5 |
% |
|
|
1.4 |
% |
|
|
1.6 |
% |
|
|
1.5 |
% |
|
|
Three Months Ended June 30, |
|
Six Months Ended June 30, |
||||||||
|
Operating Expenses |
2020 |
|
2019 |
|
2020 |
|
2019 |
||||
|
Operating expenses as an annualized percentage of average earning assets |
1.5 |
% |
|
1.5 |
% |
|
1.5 |
% |
|
1.5 |
% |
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