GM Financial Reports Second Quarter 2022 Operating Results | Business

GM Financial Reports Second Quarter 2022 Operating Results | Business

FORT WORTH, Texas–(BUSINESS WIRE)–Jul 26, 2022–

GENERAL MOTORS FINANCIAL COMPANY, INC. (“GM Financial” or the “Company”) announced net income of $829 million for the quarter ended June 30, 2022, compared to $962 million for the quarter ended March 31, 2022, and $1.2 billion for the quarter ended June 30, 2021. Net income for the six months ended June 30, 2022 was $1.8 billion, compared to $2.1 billion for the six months ended June 30, 2021.

Retail loan originations were $9.0 billion for the quarter ended June 30, 2022, compared to $8.1 billion for the quarter ended March 31, 2022, and $9.1 billion for the quarter ended June 30, 2021. Retail loan originations for the six months ended June 30, 2022 were $17.0 billion, compared to $17.4 billion for the six months ended June 30, 2021. The outstanding balance of retail finance receivables, net of fees was $61.2 billion at June 30, 2022, compared to $58.1 billion at December 31, 2021 and $56.4 billion at June 30, 2021.

Operating lease originations were $3.9 billion for the quarter ended June 30, 2022, compared to $3.5 billion for the quarter ended March 31, 2022, and $5.9 billion for the quarter ended June 30, 2021. Operating lease originations for the six months ended June 30, 2022 were $7.4 billion, compared to $11.6 billion for the six months ended June 30, 2021. Leased vehicles, net was $35.3 billion at June 30, 2022, compared to $37.9 billion at December 31, 2021 and $40.6 billion at June 30, 2021.

The outstanding balance of commercial finance receivables, net of fees was $7.7 billion at June 30, 2022, compared to $6.8 billion at December 31, 2021 and $5.7 billion at June 30, 2021.

Retail finance receivables 31-60 days delinquent were 1.8% of the portfolio at June 30, 2022 and 1.5% at June 30, 2021. Accounts more than 60 days delinquent were 0.6% of the portfolio at June 30, 2022 and 0.5% at June 30, 2021.

Annualized net charge-offs were 0.6% of average retail finance receivables for the quarter ended June 30, 2022 and 0.4% for the quarter ended June 30, 2021. For both the six months ended June 30, 2022 and 2021, annualized net charge-offs were 0.6%.

The Company had total available liquidity of $30.7 billion at June 30, 2022, consisting of $5.3 billion of cash and cash equivalents, $21.9 billion of borrowing capacity on unpledged eligible assets, $0.6 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 $50 million for the quarter ended June 30, 2022, compared to $54 million for the quarter ended March 31, 2022 and $50 million for the quarter ended June 30, 2021. Earnings for both the six months ended June 30, 2022 and 2021 were $104 million.

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. Additional materials addressing the Company’s results of operations for the quarter ended June 30, 2022 can be accessed via the Investor Relations section of the Company’s website at https://investor.gmfinancial.com.

General Motors Financial Company, Inc.

Condensed Consolidated Statements of Income

(Unaudited, in millions)

 

 

Three Months Ended June 30,

 

Six Months Ended June 30,

 

2022

 

2021

 

2022

 

2021

Revenue

 

 

 

 

 

 

 

Finance charge income

$

1,062

 

$

1,036

 

$

2,072

 

$

2,052

Leased vehicle income

 

1,989

 

 

2,304

 

 

4,056

 

 

4,625

Other income

 

95

 

 

86

 

 

175

 

 

156

Total revenue

 

3,146

 

 

3,426

 

 

6,302

 

 

6,833

Costs and expenses

 

 

 

 

 

 

 

Operating expenses

 

393

 

 

378

 

 

766

 

 

789

Leased vehicle expenses

 

856

 

 

825

 

 

1,711

 

 

2,069

Provision for loan losses

 

198

 

 

59

 

 

320

 

 

33

Interest expense

 

642

 

 

633

 

 

1,219

 

 

1,283

Total costs and expenses

 

2,089

 

 

1,895

 

 

4,016

 

 

4,174

Equity income

 

50

 

 

50

 

 

104

 

 

104

Income before income taxes

 

1,106

 

 

1,581

 

 

2,390

 

 

2,763

Income tax provision

 

277

 

 

401

 

 

599

 

 

705

Net income (loss)

 

829

 

 

1,180

 

 

1,791

 

 

2,058

Less: cumulative dividends on preferred stock

 

30

 

 

29

 

 

59

 

 

59

Net income (loss) attributable to common shareholder

$

799

 

$

1,151

 

$

1,731

 

$

1,999

 

Amounts may not add due to rounding.

Condensed Consolidated Balance Sheets

(Unaudited, in millions)

 

 

June 30, 2022

 

December 31, 2021

ASSETS

 

 

 

Cash and cash equivalents

$

5,275

 

$

3,948

Finance receivables, net of allowance for loan losses of $2,027 and $1,886

 

66,847

 

 

62,979

Leased vehicles, net

 

35,307

 

 

37,929

Goodwill

 

1,171

 

 

1,169

Equity in net assets of non-consolidated affiliates

 

1,760

 

 

1,717

Related party receivables

 

502

 

 

301

Other assets

 

6,917

 

 

5,743

Total assets

$

117,778

 

$

113,786

LIABILITIES AND SHAREHOLDERS’ EQUITY

 

 

 

Liabilities

 

 

 

Secured debt

$

38,095

 

$

39,338

Unsecured debt

 

55,509

 

 

53,223

Deferred income

 

2,377

 

 

2,551

Related party payables

 

80

 

 

313

Other liabilities

 

6,874

 

 

4,567

Total liabilities

 

102,935

 

 

99,992

Total shareholders’ equity

 

14,844

 

 

13,794

Total liabilities and shareholders’ equity

$

117,778

 

$

113,786

 

Amounts may not add due to rounding.

Operational and Financial Data

(Unaudited, Dollars in millions)

Amounts may not add due to rounding

 

 

Three Months Ended June 30,

 

Six Months Ended June 30,

Originations

2022

 

2021

 

2022

 

2021

Retail finance receivables originations

$

8,961

 

$

9,131

 

$

17,035

 

$

17,363

Lease originations

$

3,870

 

$

5,873

 

$

7,412

 

$

11,633

 

Three Months Ended June 30,

 

Six Months Ended June 30,

Average Earning Assets

2022

 

2021

 

2022

 

2021

Average retail finance receivables

$

60,451

 

$

55,108

 

$

59,624

 

$

53,838

Average commercial finance receivables

 

7,716

 

 

6,166

 

 

7,345

 

 

7,156

Average finance receivables

 

68,167

 

 

61,274

 

 

66,969

 

 

60,994

Average leased vehicles, net

 

35,998

 

 

40,545

 

 

36,630

 

 

40,320

Average earning assets

$

104,165

 

$

101,819

 

$

103,598

 

$

101,314

Ending Earning Assets

June 30, 2022

 

December 31, 2021

Retail finance receivables, net of fees

$

61,208

 

$

58,093

Commercial finance receivables, net of fees

 

7,666

 

 

6,772

Leased vehicles, net

 

35,307

 

 

37,929

Ending earning assets

$

104,181

 

$

102,794

Finance Receivables

June 30, 2022

 

December 31, 2021

Retail

 

 

 

Retail finance receivables, net of fees

$

61,208

 

 

$

58,093

 

Less: allowance for loan losses

 

(1,987

)

 

 

(1,839

)

Total retail finance receivables, net

 

59,220

 

 

 

56,254

 

Commercial

 

 

 

Commercial finance receivables, net of fees

 

7,666

 

 

 

6,772

 

Less: allowance for loan losses

 

(40

)

 

 

(47

)

Total commercial finance receivables, net

 

7,626

 

 

 

6,725

 

Total finance receivables, net

$

66,847

 

 

$

62,979

 

Allowance for Loan Losses

June 30, 2022

 

December 31, 2021

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

3.2

%

 

3.2

%

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

0.5

%

 

0.7

%

Delinquencies

June 30, 2022

 

June 30, 2021

Loan delinquency as a percentage of ending retail finance receivables:

 

 

 

31 – 60 days

1.8

%

 

1.5

%

Greater than 60 days

0.6

 

 

0.5

 

Total

2.4

%

 

2.0

%

 

Three Months Ended June 30,

 

Six Months Ended June 30,

Charge-offs and Recoveries

2022

 

2021

 

2022

 

2021

Charge-offs

$

247

 

 

$

204

 

 

$

521

 

 

$

457

 

Less: recoveries

 

(161

)

 

 

(144

)

 

 

(339

)

 

 

(293

)

Net charge-offs

$

86

 

 

$

60

 

 

$

183

 

 

$

164

 

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

 

0.6

%

 

 

0.4

%

 

 

0.6

%

 

 

0.6

%

 

Three Months Ended June 30,

 

Six Months Ended June 30,

Operating Expenses

2022

 

2021

 

2022

 

2021

Operating expenses as an annualized percentage of average earning assets

1.5

%

 

1.5

%

 

1.5

%

 

1.6

%

 

View source version on businesswire.com:https://www.businesswire.com/news/home/20220725005836/en/

CONTACT: Investor Relations contact:

Stephen Jones

Vice President, Investor Relations

(817) 302-7119

[email protected]

KEYWORD: UNITED STATES NORTH AMERICA TEXAS

INDUSTRY KEYWORD: PROFESSIONAL SERVICES AUTOMOTIVE OTHER AUTOMOTIVE AUTOMOTIVE MANUFACTURING GENERAL AUTOMOTIVE MANUFACTURING FINANCE

SOURCE: General Motors Financial Company, Inc.

Copyright Business Wire 2022.

PUB: 07/26/2022 06:07 AM/DISC: 07/26/2022 06:07 AM

http://www.businesswire.com/news/home/20220725005836/en

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