• Second quarter net income of $1.2 billion
  • Retail loan and operating lease originations of $15.0 billion for the second quarter
  • Earning assets of $102.7 billion at June 30, 2021
  • Available liquidity of $29.0 billion at June 30, 2021

FORT WORTH, Texas–(BUSINESS WIRE)–GENERAL MOTORS FINANCIAL COMPANY, INC. (“GM Financial” or the “Company”) announced net income of $1.2 billion for the quarter ended June 30, 2021, compared to $878 million for the quarter ended March 31, 2021, and $173 million for the quarter ended June 30, 2020. Net income for the six months ended June 30, 2021 was $2.1 billion, compared to $340 million for the six months ended June 30, 2020.

Retail loan originations were $9.1 billion for the quarter ended June 30, 2021, compared to $8.2 billion for the quarter ended March 31, 2021, and $8.7 billion for the quarter ended June 30, 2020. Retail loan originations for the six months ended June 30, 2021 were $17.4 billion, compared to $15.2 billion for the six months ended June 30, 2020. The outstanding balance of retail finance receivables, net of fees was $56.4 billion at June 30, 2021, compared to $51.3 billion at December 31, 2020 and $46.5 billion at June 30, 2020.

Operating lease originations were $5.9 billion for the quarter ended June 30, 2021, compared to $5.8 billion for the quarter ended March 31, 2021, and $3.2 billion for the quarter ended June 30, 2020. Operating lease originations for the six months ended June 30, 2021 were $11.6 billion, compared to $8.2 billion for the six months ended June 30, 2020. Leased vehicles, net was $40.6 billion at June 30, 2021, compared to $39.8 billion at December 31, 2020, and $39.6 billion at June 30, 2020.

The outstanding balance of commercial finance receivables, net of fees was $5.7 billion at June 30, 2021, compared to $9.1 billion at December 31, 2020 and $7.9 billion at June 30, 2020.

Retail finance receivables 31-60 days delinquent were 1.5% of the portfolio at June 30, 2021 and 2.2% at June 30, 2020. Accounts more than 60 days delinquent were 0.5% of the portfolio at June 30, 2021 and 1.3% at June 30, 2020.

Annualized net charge-offs were 0.4% of average retail finance receivables for the quarter ended June 30, 2021 and 1.5% for the quarter ended June 30, 2020. For the six months ended June 30, 2021, annualized net charge-offs were 0.6%, compared to 1.6% for the six months ended June 30, 2020.

The Company had total available liquidity of $29.0 billion at June 30, 2021, consisting of $4.4 billion of cash and cash equivalents, $21.1 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 $50 million for the quarter ended June 30, 2021, compared to $54 million for the quarter ended March 31, 2021 and $42 million for the quarter ended June 30, 2020. Earnings for the six months ended June 30, 2021 were $104 million, compared to $67 million for the six months ended June 30, 2020.

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, 2021. This recording, along with the presentation slides and this release, will be posted to the Company’s website on August 4, 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.

General Motors Financial Company, Inc.

Condensed Consolidated Statements of Income

(Unaudited, in millions)

    

 

Three Months Ended June 30,

 

Six Months Ended June 30,

 

2021

 

2020

 

2021

 

2020

Revenue

 

 

 

 

 

 

 

Finance charge income

$

1,036

 

 

$

966

 

 

$

2,052

 

 

$

1,972

 

Leased vehicle income

2,304

 

 

2,386

 

 

4,625

 

 

4,849

 

Other income

86

 

 

71

 

 

156

 

 

163

 

Total revenue

3,426

 

 

3,423

 

 

6,833

 

 

6,984

 

Costs and expenses

 

 

 

 

 

 

 

Operating expenses

378

 

 

345

 

 

789

 

 

703

 

Leased vehicle expenses

825

 

 

1,779

 

 

2,069

 

 

3,476

 

Provision for loan losses

59

 

 

327

 

 

33

 

 

793

 

Interest expense

633

 

 

788

 

 

1,283

 

 

1,623

 

Total costs and expenses

1,895

 

 

3,239

 

 

4,174

 

 

6,595

 

Equity income

50

 

 

42

 

 

104

 

 

67

 

Income before income taxes

1,581

 

 

226

 

 

2,763

 

 

456

 

Income tax provision

401

 

 

53

 

 

705

 

 

116

 

Net income

1,180

 

 

173

 

 

2,058

 

 

340

 

Less: cumulative dividends on preferred stock

29

 

 

22

 

 

59

 

 

45

 

Net income attributable to common shareholder

$

1,151

 

 

$

151

 

 

$

1,999

 

 

$

295

 

Condensed Consolidated Balance Sheets

(Unaudited, in millions)

    

 

June 30, 2021

 

December 31, 2020

ASSETS

 

 

 

Cash and cash equivalents

$

4,378

 

 

$

5,063

 

Finance receivables, net

60,212

 

 

58,390

 

Leased vehicles, net

40,596

 

 

39,819

 

Goodwill

1,174

 

 

1,173

 

Equity in net assets of non-consolidated affiliates

1,704

 

 

1,581

 

Related party receivables

611

 

 

643

 

Other assets

7,247

 

 

7,156

 

Total assets

$

115,922

 

 

$

113,825

 

LIABILITIES AND SHAREHOLDERS’ EQUITY

 

 

 

Liabilities

 

 

 

Secured debt

$

38,999

 

 

$

39,982

 

Unsecured debt

54,571

 

 

52,443

 

Deferred income

2,933

 

 

3,048

 

Related party payables

358

 

 

269

 

Other liabilities

4,596

 

 

4,485

 

Total liabilities

101,457

 

 

100,227

 

Total shareholders’ equity

14,465

 

 

13,598

 

Total liabilities and shareholders’ equity

$

115,922

 

 

$

113,825

 

Operational and Financial Data

(Unaudited, Dollars in millions)

    

 

Three Months Ended June 30,

 

Six Months Ended June 30,

Originations

2021

 

2020

 

2021

 

2020

Retail finance receivables originations

$

9,131

 

 

$

8,693

 

 

$

17,363

 

 

$

15,190

 

Lease originations

$

5,873

 

 

$

3,165

 

 

$

11,633

 

 

$

8,205

 

 

Three Months Ended June 30,

 

Six Months Ended June 30,

Average Earning Assets

2021

 

2020

 

2021

 

2020

Average retail finance receivables

$

55,108

 

 

$

44,636

 

 

$

53,838

 

 

$

43,564

 

Average commercial finance receivables

6,166

 

 

10,061

 

 

7,156

 

 

10,668

 

Average finance receivables

61,274

 

 

54,697

 

 

60,994

 

 

54,232

 

Average leased vehicles, net

40,545

 

 

40,346

 

 

40,320

 

 

41,028

 

Average earning assets

$

101,819

 

 

$

95,043

 

 

$

101,314

 

 

$

95,260

 

Ending Earning Assets

June 30, 2021

 

December 31, 2020

Retail finance receivables, net of fees

$

56,357

 

 

$

51,288

 

Commercial finance receivables, net of fees

5,705

 

 

9,080

 

Leased vehicles, net

40,596

 

 

39,819

 

Ending earning assets

$

102,658

 

 

$

100,187

 

Finance Receivables

June 30, 2021

 

December 31, 2020

Retail

 

 

 

Retail finance receivables, net of fees

$

56,357

 

 

$

51,288

 

Less: allowance for loan losses

(1,805

)

 

(1,915

)

Total retail finance receivables, net

54,552

 

 

49,373

 

Commercial

 

 

 

Commercial finance receivables, net of fees

5,705

 

 

9,080

 

Less: allowance for loan losses

(45

)

 

(63

)

Total commercial finance receivables, net

5,660

 

 

9,017

 

Total finance receivables, net

$

60,212

 

 

$

58,390

 

Allowance for Loan Losses

June 30, 2021

 

December 31, 2020

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

3.2

%

 

3.7

%

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

0.8

%

 

0.7

%

Delinquencies

June 30, 2021

 

June 30, 2020

Loan delinquency as a percentage of ending retail finance receivables:

 

 

 

31 – 60 days

1.5

%

 

2.2

%

Greater than 60 days

0.5

 

 

1.3

 

Total

2.0

%

 

3.5

%

 

Three Months Ended June 30,

 

Six Months Ended June 30,

Charge-offs and Recoveries

2021

 

2020

 

2021

 

2020

Charge-offs

$

204

 

 

$

256

 

 

$

457

 

 

$

596

 

Less: recoveries

(144

)

 

(89

)

 

(293

)

 

(245

)

Net charge-offs

$

60

 

 

$

167

 

 

$

164

 

 

$

351

 

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

0.4

%

 

1.5

%

 

0.6

%

 

1.6

%

 

Three Months Ended June 30,

 

Six Months Ended June 30,

Operating Expenses

2021

 

2020

 

2021

 

2020

Operating expenses as an annualized percentage of average earning assets

1.5

%

 

1.5

%

 

1.6

%

 

1.5

%

            

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