- Checking the near-term outlook, Ally Financial (NYSE:ALLY) sees provision expense rising to $280M-$290M this quarter, impacted by delayed tax refunds and lower credit tier performance. Net financing revenue should be "fairly flat" with lease yield of about 5.5% impacted by lower vehicle prices; this should improve seasonally in Q2.
- The company expects to buy back a "significant" number of shares at a discount to book value.
- 2017 adjusted EPS growth is seen at 5-15%; the medium-term target is 15% CAGR. Core ROTCE is seen at 10% plus or minus this year; medium-term target is 12% plus or minus. Adjusted efficiency ratio is seen at 45-47% this year; medium-term target is low 40s.
- Presentation slides