GM Financial Reports Third Quarter 2023 Operating Results
GENERAL MOTORS FINANCIAL COMPANY, INC. (“GM Financial” or the “Company”) announced net income of $558 million for the quarter ended September 30, 2023, compared to $571 million for the quarter ended June 30, 2023, and $688 million for the quarter ended September 30, 2022.
GENERAL MOTORS FINANCIAL COMPANY, INC. (“GM Financial” or the “Company”) announced net income of $558 million for the quarter ended September 30, 2023, compared to $571 million for the quarter ended June 30, 2023, and $688 million for the quarter ended September 30, 2022. Net income for the nine months ended September 30, 2023 was $1.7 billion, compared to $2.5 billion for the nine months ended September 30, 2022.
Retail loan originations were $9.5 billion for the quarter ended September 30, 2023, compared to $9.1 billion for the quarter ended June 30, 2023, and $9.4 billion for the quarter ended September 30, 2022. Retail loan originations for the nine months ended September 30, 2023 were $27.7 billion, compared to $26.4 billion for the nine months ended September 30, 2022. The outstanding balance of retail finance receivables, net of fees was $71.7 billion at September 30, 2023, compared to $69.7 billion at June 30, 2023 and $63.5 billion at September 30, 2022.
Operating lease originations were $4.3 billion for the quarter ended September 30, 2023, compared to $4.6 billion for the quarter ended June 30, 2023, and $3.5 billion for the quarter ended September 30, 2022. Operating lease originations for the nine months ended September 30, 2023 were $12.8 billion, compared to $10.9 billion for the nine months ended September 30, 2022. Leased vehicles, net was $31.1 billion at September 30, 2023, compared to $31.6 billion at June 30, 2023 and $33.8 billion at September 30, 2022.
The outstanding balance of commercial finance receivables, net of fees was $12.2 billion at September 30, 2023, compared to $11.5 billion at June 30, 2023 and $9.5 billion at September 30, 2022.
Retail finance receivables 31-60 days delinquent were 2.0% of the portfolio at September 30, 2023 and 1.9% at September 30, 2022. Accounts more than 60 days delinquent were 0.7% of the portfolio at September 30, 2023 and 0.6% at September 30, 2022.
Annualized net charge-offs were 1.0% of average retail finance receivables for the quarter ended September 30, 2023 and 0.7% for the quarter ended September 30, 2022. For the nine months ended September 30, 2023, annualized net charge-offs were 0.9%, compared to 0.7% for the nine months ended September 30, 2022.
The Company had total available liquidity of $29.7 billion at September 30, 2023, consisting of $4.1 billion of cash and cash equivalents, $22.1 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 $33 million for the quarter ended September 30, 2023, compared to $37 million for the quarter ended June 30, 2023 and $44 million for the quarter ended September 30, 2022. Earnings for the nine months ended September 30, 2023 were $111 million, compared to $148 million for the nine months ended September 30, 2022.
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 September 30, 2023 can be accessed via the Investor Relations section of the Company’s website at https://investor.gmfinancial.com.
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General Motors Financial Company, Inc. Condensed Consolidated Statements of Income (Unaudited, in millions)
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|||||||||||||||
|
|
Three Months Ended September 30, |
|
Nine Months Ended September 30, |
||||||||||||
|
|
|
2023 |
|
|
|
2022 |
|
|
|
2023 |
|
|
|
2022 |
|
|
Revenue |
|
|
|
|
|
|
|
||||||||
|
Finance charge income |
$ |
1,621 |
|
|
$ |
1,158 |
|
|
$ |
4,480 |
|
|
$ |
3,230 |
|
|
Leased vehicle income |
|
1,820 |
|
|
|
1,912 |
|
|
|
5,458 |
|
|
|
5,967 |
|
|
Other income |
|
200 |
|
|
|
118 |
|
|
|
543 |
|
|
|
292 |
|
|
Total revenue |
|
3,641 |
|
|
|
3,187 |
|
|
|
10,481 |
|
|
|
9,489 |
|
|
Costs and expenses |
|
|
|
|
|
|
|
||||||||
|
Operating expenses |
|
461 |
|
|
|
436 |
|
|
|
1,359 |
|
|
|
1,202 |
|
|
Leased vehicle expenses |
|
998 |
|
|
|
939 |
|
|
|
3,048 |
|
|
|
2,650 |
|
|
Provision for loan losses |
|
235 |
|
|
|
180 |
|
|
|
533 |
|
|
|
500 |
|
|
Interest expense |
|
1,240 |
|
|
|
764 |
|
|
|
3,374 |
|
|
|
1,984 |
|
|
Total costs and expenses |
|
2,933 |
|
|
|
2,320 |
|
|
|
8,314 |
|
|
|
6,336 |
|
|
Equity income |
|
33 |
|
|
|
44 |
|
|
|
111 |
|
|
|
148 |
|
|
Income before income taxes |
|
741 |
|
|
|
911 |
|
|
|
2,278 |
|
|
|
3,301 |
|
|
Income tax provision |
|
184 |
|
|
|
223 |
|
|
|
565 |
|
|
|
822 |
|
|
Net income (loss) |
|
558 |
|
|
|
688 |
|
|
|
1,713 |
|
|
|
2,479 |
|
|
Less: cumulative dividends on preferred stock |
|
30 |
|
|
|
30 |
|
|
|
89 |
|
|
|
89 |
|
|
Net income (loss) attributable to common shareholder |
$ |
528 |
|
|
$ |
659 |
|
|
$ |
1,624 |
|
|
$ |
2,390 |
|
|
Amounts may not add due to rounding. |
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Condensed Consolidated Balance Sheets (Unaudited, in millions)
|
|||||||
|
|
September 30, 2023 |
|
December 31, 2022 |
||||
|
ASSETS |
|
|
|
||||
|
Cash and cash equivalents |
$ |
4,112 |
|
$ |
4,005 |
||
|
Finance receivables, net of allowance for loan losses $2,258 and $2,096 |
|
81,650 |
|
|
|
74,514 |
|
|
Leased vehicles, net |
|
31,061 |
|
|
|
32,701 |
|
|
Goodwill and intangible assets |
|
1,182 |
|
|
|
1,171 |
|
|
Equity in net assets of nonconsolidated affiliates |
|
1,691 |
|
|
|
1,665 |
|
|
Related party receivables |
|
869 |
|
|
|
495 |
|
|
Other assets |
|
9,423 |
|
|
|
7,995 |
|
|
Total assets |
$ |
129,986 |
|
|
$ |
122,545 |
|
|
LIABILITIES AND SHAREHOLDERS' EQUITY |
|
|
|
||||
|
Liabilities |
|
|
|
||||
|
Secured debt |
$ |
45,271 |
|
|
$ |
42,131 |
|
|
Unsecured debt |
|
57,244 |
|
|
|
54,723 |
|
|
Deferred income |
|
2,308 |
|
|
|
2,248 |
|
|
Related party payables |
|
477 |
|
|
|
115 |
|
|
Other liabilities |
|
9,274 |
|
|
|
8,318 |
|
|
Total liabilities |
|
114,574 |
|
|
|
107,535 |
|
|
Total shareholders' equity |
|
15,412 |
|
|
|
15,010 |
|
|
Total liabilities and shareholders' equity |
$ |
129,986 |
|
|
$ |
122,545 |
|
|
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 September 30, |
|
Nine Months Ended September 30, |
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Originations |
|
2023 |
|
|
|
2022 |
|
|
|
2023 |
|
|
|
2022 |
|
|
Retail finance receivables originations |
$ |
9,499 |
|
|
$ |
9,396 |
|
|
$ |
27,705 |
|
|
$ |
26,431 |
|
|
Lease originations |
$ |
4,323 |
|
|
$ |
3,503 |
|
|
$ |
12,834 |
|
|
$ |
10,915 |
|
|
|
Three Months Ended September 30, |
|
Nine Months Ended September 30, |
||||||||||||
|
Average Earning Assets |
|
2023 |
|
|
|
2022 |
|
|
|
2023 |
|
|
|
2022 |
|
|
Average retail finance receivables |
$ |
70,881 |
|
|
$ |
62,549 |
|
|
$ |
68,740 |
|
|
$ |
60,614 |
|
|
Average commercial finance receivables |
|
11,760 |
|
|
|
8,200 |
|
|
|
11,179 |
|
|
|
7,655 |
|
|
Average finance receivables |
|
82,641 |
|
|
|
70,749 |
|
|
|
79,919 |
|
|
|
68,269 |
|
|
Average leased vehicles, net |
|
31,326 |
|
|
|
34,581 |
|
|
|
31,771 |
|
|
|
35,943 |
|
|
Average earning assets |
$ |
113,967 |
|
|
$ |
105,330 |
|
|
$ |
111,690 |
|
|
$ |
104,212 |
|
|
Ending Earning Assets |
September 30, 2023 |
|
December 31, 2022 |
||||
|
Retail finance receivables, net of fees |
$ |
71,704 |
|
$ |
65,322 |
||
|
Commercial finance receivables, net of fees |
|
12,204 |
|
|
|
11,288 |
|
|
Leased vehicles, net |
|
31,061 |
|
|
|
32,701 |
|
|
Ending earning assets |
$ |
114,969 |
|
|
$ |
109,311 |
|
|
Finance Receivables |
September 30, 2023 |
|
December 31, 2022 |
||||
|
Retail |
|
|
|
||||
|
Retail finance receivables, net of fees |
$ |
71,704 |
|
|
$ |
65,322 |
|
|
Less: allowance for loan losses |
|
(2,224 |
) |
|
|
(2,062 |
) |
|
Total retail finance receivables, net |
|
69,480 |
|
|
|
63,260 |
|
|
Commercial |
|
|
|
||||
|
Commercial finance receivables, net of fees |
|
12,204 |
|
|
|
11,288 |
|
|
Less: allowance for loan losses |
|
(34 |
) |
|
|
(34 |
) |
|
Total commercial finance receivables, net |
|
12,170 |
|
|
|
11,254 |
|
|
Total finance receivables, net |
$ |
81,650 |
|
|
$ |
74,514 |
|
|
Allowance for Loan Losses |
September 30, 2023 |
|
December 31, 2022 |
||
|
Allowance for loan losses as a percentage of retail finance receivables, net of fees |
3.1 |
% |
|
3.2 |
% |
|
Allowance for loan losses as a percentage of commercial finance receivables, net of fees |
0.3 |
% |
|
0.3 |
% |
|
Delinquencies |
September 30, 2023 |
|
September 30, 2022 |
||
|
Loan delinquency as a percentage of ending retail finance receivables: |
|
|
|
||
|
31 - 60 days |
2.0 |
% |
|
1.9 |
% |
|
Greater than 60 days |
0.7 |
|
|
0.6 |
|
|
Total |
2.7 |
% |
|
2.5 |
% |
|
|
Three Months Ended September 30, |
|
Nine Months Ended September 30, |
||||||||||||
|
Charge-offs and Recoveries |
|
2023 |
|
|
|
2022 |
|
|
|
2023 |
|
|
|
2022 |
|
|
Charge-offs |
$ |
366 |
|
|
$ |
289 |
|
|
$ |
1,012 |
|
|
$ |
811 |
|
|
Less: recoveries |
|
(196 |
) |
|
|
(171 |
) |
|
|
(573 |
) |
|
|
(510 |
) |
|
Net charge-offs |
$ |
171 |
|
|
$ |
118 |
|
|
$ |
439 |
|
|
$ |
301 |
|
|
Net charge-offs as an annualized percentage of average retail finance receivables |
|
1.0 |
% |
|
|
0.7 |
% |
|
|
0.9 |
% |
|
|
0.7 |
% |
|
|
Three Months Ended September 30, |
|
Nine Months Ended September 30, |
||||||||
|
Operating Expenses |
2023 |
|
2022 |
|
2023 |
|
2022 |
||||
|
Operating expenses as an annualized percentage of average earning assets |
1.6 |
% |
|
1.6 |
% |
|
1.6 |
% |
|
1.5 |
% |
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