GM Financial Reports Full Year and Fourth Quarter 2021 Operating Results

  • Full year net income of $3.8 billion; fourth quarter net income of $909 million
  • Full year retail loan and operating lease originations of $50.9 billion; $10.2 billion for the fourth quarter
  • Earning assets of $102.8 billion at December 31, 2021
  • Available liquidity of $26.7 billion at December 31, 2021

FORT WORTH, Texas–(BUSINESS WIRE)–GENERAL MOTORS FINANCIAL COMPANY, INC. (“GM Financial” or the “Company”) announced net income of $909 million for the quarter ended December 31, 2021, compared to $822 million for the quarter ended September 30, 2021, and $776 million for the quarter ended December 31, 2020. Net income for the year ended December 31, 2021 was $3.8 billion, compared to $2.0 billion for the year ended December 31, 2020.

Retail loan originations were $7.5 billion for the quarter ended December 31, 2021, compared to $7.8 billion for the quarter ended September 30, 2021, and $7.6 billion for the quarter ended December 31, 2020. Retail loan originations for the year ended December 31, 2021 were $32.6 billion, compared to $30.1 billion for the year ended December 31, 2020. The outstanding balance of retail finance receivables, net of fees was $58.1 billion at December 31, 2021, compared to $51.3 billion at December 31, 2020.

Operating lease originations were $2.8 billion for the quarter ended December 31, 2021, compared to $3.8 billion for the quarter ended September 30, 2021, and $6.0 billion for the quarter ended December 31, 2020. Operating lease originations for the year ended December 31, 2021 were $18.3 billion, compared to $19.7 billion for the year ended December 31, 2020. Leased vehicles, net was $37.9 billion at December 31, 2021, compared to $39.8 billion at December 31, 2020.

The outstanding balance of commercial finance receivables, net of fees was $6.8 billion at December 31, 2021, compared to $9.1 billion at December 31, 2020.

Retail finance receivables 31-60 days delinquent were 1.8% of the portfolio at December 31, 2021 and 2.1% at December 31, 2020. Accounts more than 60 days delinquent were 0.6% of the portfolio at December 31, 2021 and 0.8% at December 31, 2020.

Annualized net charge-offs were 0.6% of average retail finance receivables for the quarter ended December 31, 2021 and 0.9% for the quarter ended December 31, 2020. For the year ended December 31, 2021, net charge-offs were 0.6%, compared to 1.3% for the year ended December 31, 2020.

The Company had total available liquidity of $26.7 billion at December 31, 2021, consisting of $3.9 billion of cash and cash equivalents, $19.3 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 $44 million for the quarter ended December 31, 2021, compared to $53 million for the quarter ended September 30, 2021 and $34 million for the quarter ended December 31, 2020. Earnings for the year ended December 31, 2021 were $201 million, compared to $147 million for the year ended December 31, 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. Additional materials addressing the Company’s results of operations for the quarter and full year ended December 31, 2021 can be accessed via the Investor Relations section of the Company’s website at https://investor.gmfinancial.com.

Forward-Looking Statements

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, 2021 and our subsequent quarterly reports on Form 10-Q. Such risks include – but are not limited to – 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; the length and severity of the COVID-19 pandemic; our ability to secure private data, proprietary information, manage risks related to security breaches and other disruptions to networks and systems owned or maintained by us or third parties 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.; changes in local, regional, national or international economic, social or political conditions; and impact and uncertainties related to climate related events and climate change legislation. 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 law, whether as a result of new information, future events or otherwise.

 

General Motors Financial Company, Inc.

Condensed Consolidated Statements of Income

(Unaudited, in millions)

 

Three Months Ended December 31,

 

Years Ended December 31,

 

2021

 

2020

 

2021

 

2020

Revenue

 

 

 

 

 

 

 

Finance charge income

$

1,016

 

$

1,025

 

$

4,103

 

$

3,996

Leased vehicle income

 

2,155

 

 

2,327

 

 

9,026

 

 

9,530

Other income

 

61

 

 

74

 

 

290

 

 

305

Total revenue

 

3,232

 

 

3,426

 

 

13,419

 

 

13,831

Costs and expenses

 

 

 

 

 

 

 

Operating expenses

 

478

 

 

393

 

 

1,648

 

 

1,490

Leased vehicle expenses

 

985

 

 

1,280

 

 

4,142

 

 

5,882

Provision for loan losses

 

74

 

 

57

 

 

248

 

 

881

Interest expense

 

559

 

 

691

 

 

2,546

 

 

3,023

Total costs and expenses

 

2,096

 

 

2,421

 

 

8,584

 

 

11,276

Equity income

 

44

 

 

34

 

 

201

 

 

147

Income before income taxes

 

1,180

 

 

1,039

 

 

5,036

 

 

2,702

Income tax provision

 

271

 

 

263

 

 

1,247

 

 

693

Net income

 

909

 

 

776

 

 

3,789

 

 

2,009

Less: cumulative dividends on preferred stock

 

30

 

 

29

 

 

119

 

 

98

Net income attributable to common shareholder

$

879

 

$

747

 

$

3,670

 

$

1,911

 

Condensed Consolidated Balance Sheets

(Unaudited, in millions)

 

December 31, 2021

 

December 31, 2020

ASSETS

 

 

 

Cash and cash equivalents

$

3,948

 

$

5,063

Finance receivables, net

 

62,979

 

 

58,390

Leased vehicles, net

 

37,929

 

 

39,819

Goodwill

 

1,169

 

 

1,173

Equity in net assets of non-consolidated affiliates

 

1,717

 

 

1,581

Related party receivables

 

301

 

 

643

Other assets

 

5,743

 

 

7,156

Total assets

$

113,786

 

$

113,825

LIABILITIES AND SHAREHOLDERS’ EQUITY

 

 

 

Liabilities

 

 

 

Secured debt

$

39,338

 

$

39,982

Unsecured debt

 

53,223

 

 

52,443

Deferred income

 

2,551

 

 

3,048

Related party payables

 

313

 

 

269

Other liabilities

 

4,567

 

 

4,485

Total liabilities

 

99,992

 

 

100,227

Total shareholders’ equity

 

13,794

 

 

13,598

Total liabilities and shareholders’ equity

$

113,786

 

$

113,825

 

Operational and Financial Data

(Unaudited, Dollars in millions)

 

Three Months Ended December 31,

 

Years Ended December 31,

Originations

2021

 

2020

 

2021

 

2020

Retail finance receivables originations

$

7,458

 

$

7,620

 

$

32,621

 

$

30,111

Lease originations

$

2,786

 

$

5,961

 

$

18,268

 

$

19,698

 

 

Three Months Ended December 31,

 

Years Ended December 31,

Average Earning Assets

2021

 

2020

 

2021

 

2020

Average retail finance receivables

$

57,624

 

$

50,087

 

$

55,633

 

$

46,313

Average commercial finance receivables

 

5,482

 

 

8,939

 

 

6,300

 

 

9,713

Average finance receivables

 

63,106

 

 

59,026

 

 

61,933

 

 

56,026

Average leased vehicles, net

 

38,829

 

 

39,621

 

 

39,871

 

 

40,345

Average earning assets

$

101,935

 

$

98,647

 

$

101,804

 

$

96,371

 

Ending Earning Assets

December 31, 2021

 

December 31, 2020

Retail finance receivables, net of fees

$

58,093

 

$

51,288

Commercial finance receivables, net of fees

 

6,772

 

 

9,080

Leased vehicles, net

 

37,929

 

 

39,819

Ending earning assets

$

102,794

 

$

100,187

 

Finance Receivables

December 31, 2021

 

December 31, 2020

Retail

 

 

 

Retail finance receivables, net of fees

$

58,093

 

 

$

51,288

 

Less: allowance for loan losses

 

(1,839

)

 

 

(1,915

)

Total retail finance receivables, net

 

56,254

 

 

 

49,373

 

Commercial

 

 

 

Commercial finance receivables, net of fees

 

6,772

 

 

 

9,080

 

Less: allowance for loan losses

 

(47

)

 

 

(63

)

Total commercial finance receivables, net

 

6,725

 

 

 

9,017

 

Total finance receivables, net

$

62,979

 

 

$

58,390

 

 

Allowance for Loan Losses

December 31, 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

0.7

%

 

0.7

%

 

Delinquencies

December 31, 2021

 

December 31, 2020

Loan delinquency as a percentage of ending retail finance receivables:

 

 

 

31 – 60 days

1.8

%

 

2.1

%

Greater than 60 days

0.6

 

 

0.8

 

Total

2.4

%

 

2.9

%

 

 

Three Months Ended December 31,

 

Years Ended December 31,

Charge-offs and Recoveries

2021

 

2020

 

2021

 

2020

Charge-offs

$

233

 

 

$

273

 

 

$

897

 

 

$

1,149

 

Less: recoveries

 

(145

)

 

 

(159

)

 

 

(571

)

 

 

(537

)

Net charge-offs

$

88

 

 

$

114

 

 

$

326

 

 

$

612

 

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

 

0.6

%

 

 

0.9

%

 

 

0.6

%

 

 

1.3

%

 

 

Three Months Ended December 31,

 

Years Ended December 31,

Operating Expenses

2021

 

2020

 

2021

 

2020

Operating expenses as an annualized percentage of average earning assets

1.9

%

 

1.6

%

 

1.6

%

 

1.5

%

 

Contacts

Investor Relations contact:

Stephen Jones

Vice President, Investor Relations

(817) 302-7119

Investors@gmfinancial.com

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