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ACF General Motors Financial

Filed: 5 May 21, 8:38am
Exhibit 99.1

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GM FINANCIAL REPORTS FIRST QUARTER 2021
OPERATING RESULTS

First quarter net income of $878 million
Retail loan and operating lease originations of $14.0 billion for the first quarter
Earning assets of $100.8 billion at March 31, 2021
Available liquidity of $30.2 billion at March 31, 2021

FORT WORTH, TEXAS May 5, 2021GENERAL MOTORS FINANCIAL COMPANY, INC.
(“GM Financial” or the “Company”) announced net income of $878 million for the quarter ended March 31, 2021, compared to $776 million for the quarter ended December 31, 2020, and $167 million for the quarter ended March 31, 2020.

Retail loan originations were $8.2 billion for the quarter ended March 31, 2021, compared to $7.6 billion for the quarter ended December 31, 2020, and $6.5 billion for the quarter ended March 31, 2020. The outstanding balance of retail finance receivables, net of fees was $53.4 billion at March 31, 2021, compared to $51.3 billion at December 31, 2020 and $42.5 billion at March 31, 2020.

Operating lease originations were $5.8 billion for the quarter ended March 31, 2021, compared to $6.0 billion for the quarter ended December 31, 2020, and $5.0 billion for the quarter ended March 31, 2020. Leased vehicles, net was $40.3 billion at March 31, 2021, compared to $39.8 billion at December 31, 2020, and $41.3 billion at March 31, 2020.

The outstanding balance of commercial finance receivables, net of fees was $7.0 billion at March 31, 2021, compared to $9.1 billion at December 31, 2020 and $12.3 billion at March 31, 2020.

Retail finance receivables 31-60 days delinquent were 1.4% of the portfolio at March 31, 2021 and 2.7% at March 31, 2020. Accounts more than 60 days delinquent were 0.5% of the portfolio at March 31, 2021 and 1.1% at March 31, 2020.

Annualized net charge-offs were 0.8% of average retail finance receivables for the quarter ended March 31, 2021 and 1.7% for the quarter ended March 31, 2020.

The Company had total available liquidity of $30.2 billion at March 31, 2021, consisting of $6.3 billion of cash and cash equivalents, $20.4 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 $54 million for the quarter ended March 31, 2021, compared to $34 million for the quarter ended December 31, 2020 and $25 million for the quarter ended March 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. In lieu of a conference call, management recorded remarks addressing the Company’s results of operations for the quarter ended March 31, 2021. This recording, along with the presentation slides and this release, will be posted to the Company’s website on May 5, 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.




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General Motors Financial Company, Inc.
Condensed Consolidated Statements of Income
(Unaudited, in millions)
Three Months Ended March 31,
20212020
Revenue
Finance charge income$1,016 $1,006 
Leased vehicle income2,321 2,463 
Other income70 92 
  Total revenue3,407 3,561 
Costs and expenses
Operating expenses411 358 
Leased vehicle expenses1,244 1,697 
Provision for loan losses(26)466 
Interest expense650 835 
             Total costs and expenses2,279 3,356 
Equity income54 25 
Income before income taxes1,182 230 
Income tax provision304 63 
Net income878 167 
Less: cumulative dividends on preferred stock30 23 
Net income attributable to common shareholder$848 $144 
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Condensed Consolidated Balance Sheets
(Unaudited, in millions)
 March 31, 2021December 31, 2020
ASSETS
Cash and cash equivalents$6,343 $5,063 
Finance receivables, net58,585 58,390 
Leased vehicles, net40,343 39,819 
Goodwill1,169 1,173 
Equity in net assets of non-consolidated affiliates1,630 1,581 
Related party receivables669 643 
Other assets6,451 7,156 
Total assets$115,190 $113,825 
LIABILITIES AND SHAREHOLDERS' EQUITY
Liabilities
Secured debt$39,965 $39,982 
Unsecured debt53,730 52,443 
Deferred income2,989 3,048 
Related party payables210 269 
Other liabilities4,496 4,485 
Total liabilities101,390100,227
Total shareholders' equity13,80013,598
Total liabilities and shareholders' equity$115,190 $113,825 
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Operational and Financial Data
(Unaudited, Dollars in millions)
Three Months Ended March 31,
Originations20212020
Retail finance receivables originations$8,232 $6,497 
Lease originations$5,760 $5,040 


Three Months Ended March 31,
Average Earning Assets20212020
Average retail finance receivables$52,519 $42,416 
Average commercial finance receivables8,11311,678 
Average finance receivables60,63254,094 
Average leased vehicles, net40,10241,778
Average earning assets$100,734 $95,872 


Ending Earning AssetsMarch 31, 2021December 31, 2020
Retail finance receivables, net of fees$53,397 $51,288 
Commercial finance receivables, net of fees7,023 9,080 
Leased vehicles, net40,343 39,819 
Ending earning assets$100,763 $100,187 


Finance ReceivablesMarch 31, 2021December 31, 2020
Retail
Retail finance receivables, net of fees$53,397 $51,288 
Less: allowance for loan losses(1,784)(1,915)
Total retail finance receivables, net51,613 49,373 
Commercial
Commercial finance receivables, net of fees7,023 9,080 
Less: allowance for loan losses(51)(63)
Total commercial finance receivables, net6,972 9,017 
Total finance receivables, net$58,585 $58,390 
    












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Allowance for Loan LossesMarch 31, 2021December 31, 2020
Allowance for loan losses as a percentage of retail finance receivables, net of fees3.3 %3.7 %
Allowance for loan losses as a percentage of commercial finance receivables, net of fees0.7 %0.7 %


DelinquenciesMarch 31, 2021March 31, 2020
Loan delinquency as a percentage of ending retail finance receivables:
    31 - 60 days1.4 %2.7 %
    Greater than 60 days0.5 1.1 
Total1.9 %3.8 %


Three Months Ended March 31,
Charge-offs and Recoveries20212020
Charge-offs$253 $340 
Less: recoveries(149)(156)
Net charge-offs$104 $184 
Net charge-offs as an annualized percentage of average retail finance receivables0.8 %1.7 %

Three Months Ended March 31,
Operating Expenses20212020
Operating expenses as an annualized percentage of average earning assets1.7 %1.5 %





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

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