FORT WORTH, Texas--(BUSINESS WIRE)--GENERAL MOTORS FINANCIAL COMPANY, INC. (“GM Financial” or the “Company”) announced net income of $776 million for the quarter ended December 31, 2020, compared to $893 million for the quarter ended September 30, 2020, and $377 million for the quarter ended December 31, 2019. Net income was $2.0 billion for the year ended December 31, 2020 compared to $1.6 billion for the year ended December 31, 2019.

Retail loan originations were $7.6 billion for the quarter ended December 31, 2020, compared to $7.3 billion for the quarter ended September 30, 2020, and $5.5 billion for the quarter ended December 31, 2019. Retail loan originations for the year ended December 31, 2020 were $30.1 billion, compared to $25.1 billion for the year ended December 31, 2019. The outstanding balance of retail finance receivables, net of fees was $51.3 billion at December 31, 2020, compared to $42.3 billion at December 31, 2019.

Operating lease originations were $6.0 billion for the quarter ended December 31, 2020, compared to $5.5 billion for the quarter ended September 30, 2020, and $5.4 billion for the quarter ended December 31, 2019. Operating lease originations for the year ended December 31, 2020 were $19.7 billion, compared to $22.4 billion for the year ended December 31, 2019. Leased vehicles, net was $39.8 billion at December 31, 2020, compared to $42.1 billion at December 31, 2019.

The outstanding balance of commercial finance receivables, net of fees was $9.1 billion at December 31, 2020, compared to $12.1 billion at December 31, 2019.

Retail finance receivables 31-60 days delinquent were 2.1% of the portfolio at December 31, 2020 and 3.2% at December 31, 2019. Accounts more than 60 days delinquent were 0.8% of the portfolio at December 31, 2020 and 1.3% at December 31, 2019.

Annualized net charge-offs were 0.9% of average retail finance receivables for the quarter ended December 31, 2020 and 1.8% for the quarter ended December 31, 2019. For the year ended December 31, 2020, net charge-offs were 1.3%, compared to 1.6% for the year ended December 31, 2019.

The Company had total available liquidity of $27.6 billion at December 31, 2020, consisting of $5.1 billion of cash and cash equivalents, $19.0 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 China were $34 million for the quarter ended December 31, 2020, compared to $46 million for the quarter ended September 30, 2020, and $40 million for the quarter ended December 31, 2019. Earnings for the year ended December 31, 2020 were $147 million, compared to $166 million for the year ended December 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 and full year ended December 31, 2020. This recording, along with the presentation slides and this release, will be posted to the Company’s website on February 10, 2021 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, 2020 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 lease inception 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.

 

General Motors Financial Company, Inc.

Consolidated Statements of Income

(Unaudited, in millions)

 

 

Three Months Ended
December 31,

 

Years Ended December 31,

 

2020

 

2019

 

2020

 

2019

Revenue

 

 

 

 

 

 

 

Finance charge income

$

1,025

 

 

$

1,033

 

 

$

3,996

 

 

$

4,071

 

Leased vehicle income

2,327

 

 

2,496

 

 

9,530

 

 

10,032

 

Other income

74

 

 

107

 

 

305

 

 

451

 

Total revenue

3,426

 

 

3,636

 

 

13,831

 

 

14,554

 

Costs and expenses

 

 

 

 

 

 

 

Operating expenses

393

 

 

433

 

 

1,490

 

 

1,564

 

Leased vehicle expenses

1,280

 

 

1,660

 

 

5,882

 

 

6,685

 

Provision for loan losses

57

 

 

222

 

 

881

 

 

726

 

Interest expense

691

 

 

863

 

 

3,023

 

 

3,641

 

Total costs and expenses

2,421

 

 

3,178

 

 

11,276

 

 

12,616

 

Equity income

34

 

 

40

 

 

147

 

 

166

 

Income before income taxes

1,039

 

 

498

 

 

2,702

 

 

2,104

 

Income tax provision

263

 

 

121

 

 

693

 

 

537

 

Net income

776

 

 

377

 

 

2,009

 

 

1,567

 

Less: cumulative dividends on preferred stock

29

 

 

22

 

 

98

 

 

90

 

Net income attributable to common shareholder

$

747

 

 

$

355

 

 

$

1,911

 

 

$

1,477

 

 

Consolidated Balance Sheets

(Unaudited, in millions)

 

 

December 31, 2020

 

December 31, 2019

ASSETS

 

 

 

Cash and cash equivalents

$

5,063

 

 

$

3,311

 

Finance receivables, net

58,390

 

 

53,473

 

Leased vehicles, net

39,819

 

 

42,055

 

Goodwill

1,173

 

 

1,185

 

Equity in net assets of non-consolidated affiliates

1,581

 

 

1,455

 

Related party receivables

643

 

 

678

 

Other assets

7,156

 

 

7,060

 

Total assets

$

113,825

 

 

$

109,217

 

LIABILITIES AND SHAREHOLDERS' EQUITY

 

 

 

Liabilities

 

 

 

Secured debt

$

39,982

 

 

$

39,959

 

Unsecured debt

52,443

 

 

48,979

 

Deferred income

3,048

 

 

3,648

 

Related party payables

269

 

 

82

 

Other liabilities

4,485

 

 

3,823

 

Total liabilities

100,227

 

 

96,491

 

Total shareholders' equity

13,598

 

 

12,726

 

Total liabilities and shareholders' equity

$

113,825

 

 

$

109,217

 

 

Operational and Financial Data

(Unaudited, Dollars in millions)

 

 

Three Months Ended
December 31,

 

Years Ended December 31,

Originations

2020

 

2019

 

2020

 

2019

Retail finance receivables originations

$

7,620

 

 

$

5,468

 

 

$

30,111

 

 

$

25,150

 

Lease originations

$

5,961

 

 

$

5,402

 

 

$

19,698

 

 

$

22,366

 

 

 

Three Months Ended
December 31,

 

Years Ended December 31,

Average Earning Assets

2020

 

2019

 

2020

 

2019

Average retail finance receivables

$

50,087

 

 

$

42,112

 

 

$

46,313

 

 

$

42,112

 

Average commercial finance receivables

8,939

 

 

12,184

 

 

9,713

 

 

12,429

 

Average finance receivables

59,026

 

 

54,296

 

 

56,026

 

 

54,541

 

Average leased vehicles, net

39,621

 

 

42,346

 

 

40,345

 

 

42,881

 

Average earning assets

$

98,647

 

 

$

96,642

 

 

$

96,371

 

 

$

97,422

 

 

Ending Earning Assets

December 31, 2020

 

December 31, 2019

Retail finance receivables, net of fees

$

51,288

 

 

$

42,268

 

Commercial finance receivables, net of fees

9,080

 

 

12,149

 

Leased vehicles, net

39,819

 

 

42,055

 

Ending earning assets

$

100,187

 

 

$

96,472

 

 

Finance Receivables

December 31, 2020

 

December 31, 2019

Retail

 

 

 

Retail finance receivables, net of fees

$

51,288

 

 

$

42,268

 

Less: allowance for loan losses

(1,915)

 

 

(866)

 

Total retail finance receivables, net

49,373

 

 

41,402

 

Commercial

 

 

 

Commercial finance receivables, net of fees

9,080

 

 

12,149

 

Less: allowance for loan losses

(63)

 

 

(78)

 

Total commercial finance receivables, net

9,017

 

 

12,071

 

Total finance receivables, net

$

58,390

 

 

$

53,473

 

 

Allowance for Loan Losses

December 31, 2020

 

December 31, 2019

Allowance for loan losses as a percentage of retail finance receivables, net of fees

3.7

%

 

2.0

%

Allowance for loan losses as a percentage of commercial finance receivables, net of fees

0.7

%

 

0.6

%

 

Delinquencies

December 31, 2020

 

December 31, 2019

Loan delinquency as a percentage of ending retail finance receivables:

 

 

 

31 - 60 days

2.1

%

 

3.2

%

Greater than 60 days

0.8

 

 

1.3

 

Total

2.9

%

 

4.5

%

 

 

Three Months Ended December 31,

 

Years Ended December 31,

Charge-offs and Recoveries

2020

 

2019

 

2020

 

2019

Charge-offs

$

273

 

 

$

332

 

 

$

1,149

 

 

$

1,218

 

Less: recoveries

(159)

 

 

(138)

 

 

(537)

 

 

(548)

 

Net charge-offs

$

114

 

 

$

194

 

 

$

612

 

 

$

670

 

Net charge-offs as an annualized percentage of average retail finance receivables

0.9

%

 

1.8

%

 

1.3

%

 

1.6

%

 

 

Three Months Ended December 31,

 

Years Ended December 31,

Operating Expenses

2020

 

2019

 

2020

 

2019

Operating expenses as an annualized percentage of average earning assets

1.6

%

 

1.8

%

 

1.5

%

 

1.6

%

 

 

Contacts

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