GM Financial Reports September Quarter 2016 Operating Results

• September quarter net income of $147 million
• Consumer loan and lease originations of $11.2 billion for the September quarter
• End of period earning assets of $73.8 billion
• Available liquidity of $15.4 billion at quarter end

FORT WORTH, Texas--(BUSINESS WIRE)--GENERAL MOTORS FINANCIAL COMPANY, INC. (“GM Financial” or the “Company”) announced net income of $147 million for the quarter ended September 30, 2016, compared to $179 million for the quarter ended September 30, 2015. Net income for the nine months ended September 30, 2016 was $500 million, compared to $515 million for the nine months ended September 30, 2015.

Retail loan originations were $5.1 billion for the quarter ended September 30, 2016, compared to $4.2 billion for the quarter ended June 30, 2016, and $4.7 billion for the quarter ended September 30, 2015. Retail loan originations for the nine months ended September 30, 2016 were $13.4 billion, compared to $13.1 billion for the nine months ended September 30, 2015. The outstanding balance of retail finance receivables was $32.2 billion at September 30, 2016.

Operating lease originations were $6.2 billion for the quarter ended September 30, 2016, compared to $6.5 billion for the quarter ended June 30, 2016, and $6.2 billion for the quarter ended September 30, 2015. Operating lease originations for the nine months ended September 30, 2016 were $19.4 billion, compared to $14.8 billion for the nine months ended September 30, 2015. Leased vehicles, net was $31.8 billion at September 30, 2016.

The outstanding balance of commercial finance receivables was $9.8 billion at September 30, 2016 compared to $9.4 billion at June 30, 2016 and $7.8 billion at September 30, 2015.

Retail finance receivables 31-60 days delinquent were 3.5% of the portfolio at September 30, 2016 and 4.0% at September 30, 2015. Accounts more than 60 days delinquent were 1.5% of the portfolio at September 30, 2016 and 1.6% at September 30, 2015.

Annualized net charge-offs were 2.0% of average retail finance receivables for the quarter ended September 30, 2016 and 1.9% for the quarter ended September 30, 2015. For the nine months ended September 30, 2016, annualized retail net charge-offs were 1.9%, compared to 1.8% for the nine months ended September 30, 2015.

The Company had total available liquidity of $15.4 billion at September 30, 2016, consisting of $2.6 billion of cash and cash equivalents, $11.6 billion of borrowing capacity on unpledged eligible assets, $0.6 billion of borrowing capacity on committed unsecured lines of credit and $0.6 billion of borrowing capacity on a Junior Subordinated Revolving Credit Facility from GM.

Earnings resulting from the Company's equity investment in SAIC-GMAC, a joint venture that conducts auto finance operations in China, were $36 million for the three months ended September 30, 2016 compared to $37 million for the three months ended June 30, 2016, and $29 million for the three months ended September 30, 2015. Earnings for the nine months ended September 30, 2016 were $109 million, compared to $85 million for the nine months ended September 30, 2015.

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. 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 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. 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, 2015. Such risks include – but are not limited to – changes in general economic and business conditions; GM’s ability to sell new vehicles that we finance in the markets we serve in North America, Latin America, China and Europe, particularly the United Kingdom where automobile sales may be negatively impacted due to the passage of the referendum to discontinue its membership in the European Union; interest rate and currency 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 and cost of sources of financing; the level of net charge-offs, delinquencies and prepayments on the loans and leases we originate; vehicle return rates and the residual value performance on vehicles we lease; the viability of GM-franchised dealers that are commercial loan customers; the prices at which used cars are sold in the wholesale markets; and changes in business strategy, including expansion of product lines and credit risk appetite, and acquisitions. If one or more of these risks or uncertainties materialize, or if underlying assumptions prove incorrect, actual events or results may differ materially. 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, Dollars in millions)
	Three Months Ended September 30,				Nine Months Ended September 30,
	2016		2015		2016		2015
Revenue
Finance charge income	$	837	$	842	$	2,481	$	2,544
Leased vehicle income		1,590		797		4,164		1,827
Other income		72		68		221		205
Total revenue		2,499		1,707		6,866		4,576
Costs and expenses
Operating expenses		392		320		1,069		945
Leased vehicle expenses		1,202		629		3,163		1,423
Provision for loan losses		172		144		519		440
Interest expense		541		412		1,505		1,183
Total costs and expenses		2,307		1,505		6,256		3,991
Equity income		36		29		109		85
Income before income taxes		228		231		719		670
Income tax provision		81		52		219		155
Net income	$	147	$	179	$	500	$	515

Consolidated Balance Sheets
(Unaudited, Dollars in millions)
	September 30, 2016		December 31, 2015
ASSETS
Cash and cash equivalents	$	2,588	$	3,061
Finance receivables, net		41,132		36,781
Leased vehicles, net		31,775		20,172
Restricted cash		2,055		1,941
Goodwill		1,198		1,189
Equity in net assets of non-consolidated affiliates		940		986
Property and equipment, net of accumulated depreciation		253		219
Deferred income taxes		310		231
Related party receivables		850		573
Other assets		1,010		751
Total assets	$	82,111	$	65,904
LIABILITIES AND SHAREHOLDER'S EQUITY
Liabilities
Secured debt	$	35,237	$	30,689
Unsecured debt		33,526		23,657
Accounts payable and accrued expenses		1,419		1,218
Deferred income		2,226		1,454
Deferred income taxes		299		129
Related party payables		407		362
Other liabilities		379		343
Total liabilities		73,493		57,852
Shareholder's equity		8,618		8,052
Total liabilities and shareholder's equity	$	82,111	$	65,904

Operational and Financial Data
(Unaudited, Dollars in millions)
	Three Months Ended September 30,
Originations	2016									2015
	North America			International			Total			North America			International			Total
Retail finance receivables originations	$	3,360		$	1,698		$	5,058		$	3,155		$	1,586		$	4,741
GM lease originations	$	6,113		$	57		$	6,170		$	6,161		$	19		$	6,180
GM new vehicle loans and leases as a percent of total
loan and lease originations		87.4	%		87.8	%		87.5	%		87.8	%		84.5	%		87.3	%

	Nine Months Ended September 30,
	2016									2015
	North America			International			Total			North America			International			Total
Retail finance receivables originations	$	8,485		$	4,912		$	13,397		$	8,070		$	5,037		$	13,107
GM lease originations	$	19,280		$	158		$	19,438		$	14,755		$	56		$	14,811
GM new vehicle loans and leases as a percent of total
loan and lease originations		88.0	%		87.1	%		87.9	%		83.0	%		84.8	%		83.3	%

	Three Months Ended September 30,
Average Earning Assets	2016						2015
	North America		International		Total		North America		International		Total
Average retail finance receivables	$	20,088	$	11,425	$	31,513	$	16,435	$	11,396	$	27,831
Average commercial finance receivables		5,005		4,424		9,429		3,475		4,258		7,733
Average finance receivables		25,093		15,849		40,942		19,910		15,654		35,564
Average leased vehicles, net		29,934		186		30,120		14,875		66		14,941
Average earning assets	$	55,027	$	16,035	$	71,062	$	34,785	$	15,720	$	50,505

	Nine Months Ended September 30,
	2016						2015
	North America		International		Total		North America		International		Total
Average retail finance receivables	$	19,266	$	11,262	$	30,528	$	15,084	$	11,650	$	26,734
Average commercial finance receivables		4,565		4,502		9,067		3,312		4,358		7,670
Average finance receivables		23,831		15,764		39,595		18,396		16,008		34,404
Average leased vehicles, net		26,104		142		26,246		11,236		50		11,286
Average earning assets	$	49,935	$	15,906	$	65,841	$	29,632	$	16,058	$	45,690

Ending Earning Assets	September 30, 2016						September 30, 2015
	North America		International		Total		North America		International		Total
Retail finance receivables	$	20,766	$	11,480	$	32,246	$	16,994	$	10,993	$	27,987
Commercial finance receivables		5,328		4,432		9,760		3,503		4,342		7,845
Leased vehicles		31,570		205		31,775		16,843		72		16,915
Ending earning assets	$	57,664	$	16,117	$	73,781	$	37,340	$	15,407	$	52,747

Total Finance Receivables	September 30, 2016									December 31, 2015
	North America			International			Total			North America			International			Total
Retail
Retail finance receivables, net of fees^(a,b)	$	20,766		$	11,480		$	32,246		$	18,148		$	10,976		$	29,124
Less: allowance for loan losses		(695	)		(127	)		(822	)		(618	)		(117	)		(735	)
Total retail finance receivables, net		20,071			11,353			31,424			17,530			10,859			28,389
Commercial
Commercial finance receivables, net of fees		5,328			4,432			9,760			4,051			4,388			8,439
Less: allowance for loan losses		(33	)		(19	)		(52	)		(23	)		(24	)		(47	)
Total commercial finance receivables, net		5,295			4,413			9,708			4,028			4,364			8,392
Total finance receivables, net	$	25,366		$	15,766		$	41,132		$	21,558		$	15,223		$	36,781

(a)	Includes $1.3 billion and $1.1 billion of direct-financing leases at September 30, 2016 and December 31, 2015.
(b)	Net of unearned income, unamortized premiums and discounts, and deferred fees and costs of $200 million and $179 million at September 30, 2016 and December 31, 2015.

Allowance for Loan Losses	September 30, 2016						December 31, 2015
	North America		International		Total		North America		International		Total
Allowance for loan losses as a percentage of retail
finance receivables, net of fees	3.3	%	1.1	%	2.5	%	3.4	%	1.1	%	2.5	%
Allowance for loan losses as a percentage of
commercial finance receivables, net of fees	0.6	%	0.4	%	0.5	%	0.6	%	0.5	%	0.6	%

Delinquencies	September 30, 2016						September 30, 2015
	North America		International		Total		North America		International		Total
Loan delinquency as a percent of ending retail finance
receivables:
31 - 60 days	4.9	%	0.9	%	3.5	%	6.1	%	0.9	%	4.0	%
Greater than 60 days	1.9	%	0.9	%	1.5	%	2.1	%	0.8	%	1.6	%
Total	6.8	%	1.8	%	5.0	%	8.2	%	1.7	%	5.6	%

	Three Months Ended September 30,
Charge-offs and Recoveries	2016									2015
	North America			International			Total			North America			International			Total
Charge-offs	$	253		$	41		$	294		$	221		$	35		$	256
Less: recoveries		(118	)		(16	)		(134	)		(111	)		(13	)		(124	)
Net charge-offs	$	135		$	25		$	160		$	110		$	22		$	132
Net annualized charge-offs as a percent of average
retail finance receivables		2.7	%		0.9	%		2.0	%		2.7	%		0.8	%		1.9	%
Recoveries as a percentage of gross repossession
charge-offs^(a)		52.3	%								56.2	%

(a)	Charge-offs for the International Segment primarily include the write-down of receivables to net realizable value. As a result, a calculation of recoveries as a percentage of gross charge-offs is not meaningful.

	Nine Months Ended September 30,
	2016									2015
	North America			International			Total			North America			International			Total
Charge-offs	$	740		$	113		$	853		$	609		$	101		$	710
Less: recoveries		(378	)		(39	)		(417	)		(321	)		(36	)		(357	)
Net charge-offs	$	362		$	74		$	436		$	288		$	65		$	353
Net annualized charge-offs as a percent of average
retail finance receivables		2.5	%		0.9	%		1.9	%		2.6	%		0.7	%		1.8	%
Recoveries as a percentage of gross repossession
charge-offs^(a)		53.8	%								57.5	%

(a)	Charge-offs for the International Segment primarily include the write-down of receivables to net realizable value. As a result, a calculation of recoveries as a percentage of gross charge-offs is not meaningful.

	Three Months Ended September 30,
Operating Expenses	2016						2015
	North America		International		Total		North America		International		Total
Annualized operating expenses as a percent of average
earning assets	1.7	%	3.8	%	2.2	%	2.1	%	3.4	%	2.5	%

	Nine Months Ended September 30,
	2016						2015
	North America		International		Total		North America		International		Total
Annualized operating expenses as a percent of average
earning assets	1.8	%	3.5	%	2.2	%	2.4	%	3.5	%	2.8	%