Ally Financial Inc. 10-Q

Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations Cautionary Notice about Forward-Looking Statements and Other Terms From time to time we have made, and in the future will make, forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements can be identified by the fact that they do not relate strictly to historical or current facts. Forward-looking statements often use words such as “believe,” “expect,” “anticipate,” “intend,” “pursue,” “seek,” “continue,” “estimate,” “project,” “outlook,” “forecast,” “potential,” “target,” “objective,” “trend,” “plan,” “goal,” “initiative,” “priorities,” or other words of comparable meaning or future-tense or conditional verbs such as “may,” “will,” “should,” “would,” or “could.” Forward-looking statements convey our expectations, intentions, or forecasts about future events, circumstances, or results. This report, including any information incorporated by reference in this report, contains forward-looking statements. We also may make forward-looking statements in other documents that are filed or furnished with the SEC. In addition, we may make forward-looking statements orally or in writing to investors, analysts, members of the media, or others. All forward-looking statements, by their nature, are subject to assumptions, risks, and uncertainties, which may change over time and many of which are beyond our control. You should not rely on any forward-looking statement as a prediction or guarantee about the future. Actual future objectives, strategies, plans, prospects, performance, conditions, or results may differ materially from those set forth in any forward-looking statement. While no list of assumptions, risks, or uncertainties could be complete, some of the factors that may cause actual results or other future events or circumstances to differ from those in forward-looking statements include: • evolving local, regional, national, or international business, economic, or political conditions; • changes in laws or the regulatory or supervisory environment, including as a result of financial-services legislation, regulation, or policies or changes in government officials or other personnel; • changes in monetary, fiscal, or trade laws or policies, including as a result of actions by governmental agencies, central banks, or supranational authorities; • changes in accounting standards or policies; • changes in the automotive industry or the markets for new or used vehicles, including the rise of vehicle sharing and ride hailing, the development of autonomous and alternative-energy vehicles, and the impact of demographic shifts on attitudes and behaviors toward vehicle type, ownership, and use; • any instability or breakdown in the financial system, including as a result of the failure of a financial institution or other participants in it (such as the banking failures during 2023); • disruptions or shifts in investor sentiment or behavior in the securities, capital, or other financial markets, including financial or systemic shocks and volatility or changes in market liquidity, interest or currency rates, or valuations; • changes in business or consumer sentiment, preferences, or behavior, including spending, borrowing, or saving by businesses or households; • changes in our corporate or business strategies, the composition of our assets, or the way in which we fund those assets; • our ability to execute our business strategy for Ally Bank, including its digital focus; • our ability to optimize our automotive finance and insurance businesses and to continue diversifying into and growing other consumer and commercial business lines, including corporate finance, brokerage, and personal advice; • our ability to develop capital plans acceptable to the FRB and our ability to implement them, including any payment of dividends or share repurchases; • our ability to conduct appropriate stress tests and effectively plan for and manage capital or liquidity consistent with evolving business or operational needs, risk-management standards, and regulatory or supervisory requirements or expectations; • our ability to cost-effectively fund our business and operations, including through deposits (which could be subject to sudden withdrawals) and the capital markets; • changes in any credit rating assigned to Ally, including Ally Bank, or the ratings for our insurance business; • adverse publicity or other reputational harm to us, our service providers, or our senior officers; • our ability to develop, maintain, or market our products or services or to absorb unanticipated costs or liabilities associated with those products or services; 72 Table of Contents Management’s Discussion and Analysis Ally Financial Inc. • Form 10-Q • our ability to innovate, to anticipate the needs of current or future customers, to successfully compete, to increase or hold market share in changing competitive environments, or to deal with pricing or other competitive pressures; • the continuing profitability and viability of our dealer-centric automotive finance and insurance businesses, especially in the face of competition from captive finance companies and their automotive manufacturing sponsors and challenges to the dealer’s role as intermediary between manufacturers and purchasers; • our ability to appropriately underwrite loans that we originate or purchase and to otherwise manage credit risk; • changes in the credit, liquidity, or other financial condition of our customers, counterparties, service providers, or competitors; • our ability to effectively deal with economic, business, or market slowdowns or disruptions; • our ability to address heightened scrutiny and expectations from supervisory or other governmental authorities and to timely and credibly remediate related concerns or deficiencies; • judicial, regulatory, or administrative inquiries, examinations, investigations, proceedings, disputes, or rulings that create uncertainty for, or are adverse to, us or the financial services industry; • the potential outcomes of judicial, regulatory, or administrative inquiries, examinations, investigations, proceedings, or disputes to which we are or may be subject, and our ability to absorb and address any damages or other remedies that are sought or awarded, and any collateral consequences; • the performance and availability of third-party service providers on whom we rely in delivering products and services to our customers and otherwise conducting our business and operations; • our ability to manage and mitigate security risks, including our capacity to withstand cyberattacks; • our ability to maintain secure and functional financial, accounting, technology, data processing, or other operating systems or infrastructure; • the adequacy of our corporate governance, risk-management framework, compliance programs, or internal controls over financial reporting, including our ability to control lapses or deficiencies in financial reporting or to effectively mitigate or manage operational risk; • the efficacy of our methods or models in assessing business strategies or opportunities or in valuing, measuring, estimating, monitoring, or managing positions or risk; • our ability to keep pace with changes in technology, such as artificial intelligence, that affect us or our customers, counterparties, service providers, or competitors or to maintain rights or interests in associated intellectual property; • our ability to successfully make acquisitions or divestitures or to integrate acquired businesses; • the adequacy of our succession planning for key executives or other personnel and our ability to attract or retain qualified employees; • natural or man-made disasters, calamities, or conflicts, including terrorist events, cyber-warfare, and pandemics; • our ability to meet stakeholder expectations on sustainability-related issues; • policies and other actions of governments to manage and mitigate climate and other sustainability issues, and the effects of climate change or the transition to a lower-carbon economy on our business, operations, and reputation; or • other assumptions, risks, or uncertainties described in the Risk Factors (Part II, Item 1A herein), Management’s Discussion and Analysis of Financial Condition and Results of Operations (Part I, Item 2 herein), or the Notes to the Condensed Consolidated Financial Statements (Part I, Item 1 herein) in this Quarterly Report on Form 10-Q or described in any of the Company’s annual, quarterly or current reports. In addition, recent announcements regarding changes in U.S. trade policies and practices, as well as counter tariffs and other reciprocal actions by other jurisdictions, have contributed to increased volatility in financial markets and adversely affected economic conditions. Risks related to the continuation or escalation of tariffs and other trading restrictions, particularly to the extent impacting the automobile industry and related sectors, and the potential impact on inflation, global trade, new and used automobile sales, consumer purchasing power, customer creditworthiness and general economic conditions, could cause our financial results to differ from the anticipated results expressed or implied in any forward-looking statements. Any forward-looking statement made by us or on our behalf speaks only as of the date that it was made. We do not undertake to update any forward-looking statement to reflect the impact of events, circumstances, or results that arise after the date that the statement was made, 73 Table of Contents Management’s Discussion and Analysis Ally Financial Inc. • Form 10-Q except as required by applicable securities laws. You, however, should consult further disclosures (including disclosures of a forward-looking nature) that we may make in any subsequent Annual Report on Form 10-K, Quarterly Report on Form 10-Q, or Current Report on Form 8-K. Unless the context otherwise requires, the following definitions apply. The term “loans” means the following consumer and commercial products associated with our direct and indirect financing activities: loans, retail installment sales contracts, lines of credit, and other financing products excluding operating leases. The term “operating leases” means consumer- and commercial-vehicle lease agreements where Ally is the lessor and the lessee is generally not obligated to acquire ownership of the vehicle at lease-end or compensate Ally for the vehicle’s residual value. The terms “lend,” “finance,” and “originate” mean our direct extension or origination of loans, our purchase or acquisition of loans, or our purchase of operating leases, as applicable. The term “consumer” means all consumer products associated with our loan and operating-lease activities and all commercial retail installment sales contracts. The term “commercial” means all commercial products associated with our loan activities, other than commercial retail installment sales contracts. The term “partnerships” means business arrangements rather than partnerships as defined by law. 74 Table of Contents Management’s Discussion and Analysis Ally Financial Inc. • Form 10-Q Overview Ally Financial Inc. (together with its consolidated subsidiaries unless the context otherwise requires, Ally, the Company, we, us, or our) is a financial-services company with the nation’s largest all-digital bank and an industry-leading automotive financing and insurance business, driven by a mission to “Do It Right” and be a relentless ally for customers and communities. The Company serves customers with deposits and securities brokerage and investment advisory services as well as automotive financing and insurance offerings. The Company also includes a seasoned corporate finance business that offers capital for equity sponsors and middle-market companies. Ally is a Delaware corporation and is registered as a BHC under the BHC Act and an FHC under the GLB Act. Primary Business Lines Dealer Financial Services, which includes our Automotive Finance and Insurance operations, and Corporate Finance are our primary business lines. The remaining activity is reported in Corporate and Other, which primarily consists of centralized treasury activities as well as Ally Invest, our digital brokerage and personal advice offering, Ally Lending, Ally Credit Card, the management of our consumer mortgage portfolio, CRA loans and investments, and certain strategic investments through Ally Ventures. We closed the sale of Ally Lending on March 1, 2024. Consumer mortgage originations ceased during the second quarter of 2025, which has and will continue to result in a gradual run-off of our consumer mortgage loan portfolio. Additionally, we closed the sale of Ally Credit Card on April 1, 2025. For further information, refer to Note 2 to the Condensed Consolidated Financial Statements. The following table summarizes the operating results excluding discontinued operations of each business line. Operating results for each of the business lines are more fully described in the MD&A sections that follow. Three months ended September 30, Nine months ended September 30, ($ in millions) 2025 2024 Favorable/(unfavorable) % change 2025 2024 Favorable/(unfavorable) % change Total net revenue Dealer Financial Services Automotive Finance $ 1,409 $ 1,452 (3) $ 4,163 $ 4,402 (5) Insurance 453 467 (3) 1,299 1,242 5 Corporate Finance 136 146 (7) 396 431 (8) Corporate and Other 170 70 143 (67) 80 (184) Total $ 2,168 $ 2,135 2 $ 5,791 $ 6,155 (6) Income (loss) from continuing operations before income tax expense (benefit) Dealer Financial Services Automotive Finance $ 421 $ 355 19 $ 1,268 $ 1,419 (11) Insurance 79 102 (23) 109 132 (17) Corporate Finance 95 105 (10) 267 314 (15) Corporate and Other (82) (297) 72 (979) (1,138) 14 Total $ 513 $ 265 94 $ 665 $ 727 (9) • Our Dealer Financial Services business is one of the largest full-service automotive finance operations in the country and offers a wide range of financial services and insurance products to automotive dealerships and their customers. Dealer Financial Services comprises our Automotive Finance and Insurance segments. Our Automotive Finance operations include purchasing retail installment sales contracts and operating leases from dealers and automotive retailers, extending automotive loans directly to consumers, offering term loans to dealers, financing dealer floorplans and providing other lines of credit to dealers, supplying warehouse lines to automotive retailers, offering automotive-fleet financing, providing financing to companies and municipalities for the purchase or lease of vehicles, and supplying vehicle-remarketing services. Our success as an automotive finance provider is driven by the consistent and broad range of products and services we offer to dealers and automotive retailers. The automotive marketplace is dynamic and evolving, including substantial investments in electrification by automotive manufacturers and suppliers. We continue to identify and cultivate relationships with automotive retailers, including those with leading e-commerce platforms. We also operate an online direct-lending platform for consumers seeking direct financing. We believe these products will enable us to respond to the growing trends for a more streamlined and digital automotive financing process to serve both dealers and consumers. Additionally, we provide comprehensive automotive remarketing services, including the use of SmartAuction, our online auction platform, which efficiently supports dealer-to-dealer and other commercial wholesale vehicle transactions. SmartAuction provides diversified fee-based revenue and serves as a means of deepening relationships with our dealership customers. Beyond offering a full suite of solutions for our dealership customers, we also offer application pass-through programs for credit applications that do not meet our underwriting criteria, allowing dealers to provide expanded access to credit for consumers and improve sales at their dealership. Through our pass-through programs, we are able to monetize our declined applications by generating a combination of acquisition fee and servicing revenue for loans that are 75 Table of Contents Management’s Discussion and Analysis Ally Financial Inc. • Form 10-Q originated, sold to, and serviced on behalf of a third-party lender, or one-time acquisition fees for loans funded and serviced by a third party. Furthermore, our strong and expansive dealer relationships, comprehensive suite of products and services, full-spectrum financing, and depth of experience position us to evolve with future shifts in automobile technologies, including electrification. We have provided and continue to provide automobile financing for battery-electric and plug-in hybrid vehicles, including brands such as Tesla, Jeep, Alfa Romeo, and Chevrolet. This positions us to remain a leader in automotive financing as we believe the majority of these vehicles will be sold through dealerships and automotive retailers with whom we have an established relationship. Additionally, we continue to partner and build relationships with automotive manufacturers who use a direct-to-consumer model. During the nine months ended September 30, 2025, $1.5 billion of our consumer automotive retail loan originations and purchases, and $2.0 billion of our operating lease originations and purchases, were for battery-electric and plug-in hybrid vehicles. As of September 30, 2025, $3.0 billion of our consumer automotive finance receivables and loans had battery-electric or plug-in hybrid vehicles as the underlying collateral, and $4.4 billion of our investment in operating leases, net of accumulated depreciation, were battery-electric or plug-in hybrid vehicles. We have focused on developing dealer relationships beyond those relationships that primarily were developed through our previous role as a captive finance company for GM and a preferred provider for Stellantis. We have established relationships with thousands of automotive dealers through our customer-centric approach and specialized incentive programs designed to drive loyalty amongst dealers to our products and services. Outside of GM and Stellantis, our other OEM-franchised dealers include brands such as Ford, Toyota, Hyundai, Kia, Nissan, Honda, and others, including automotive manufacturers who use a direct-to-consumer model. Our non-OEM-franchised dealers and automotive retailers include used-vehicle-only retailers with a national presence, as well as online-only automotive retailers, such as Carvana, CarMax, and EchoPark. Our Insurance operations offer both consumer finance protection and insurance products sold primarily through the automotive dealer channel in the U.S. and Canada, and commercial insurance products sold directly to dealers in the U.S. Our insurance business provides a strong dealer value proposition through our deep industry knowledge, strong service levels, and diversified product suite that complements our automotive finance business in order to drive strong retention rates and help protect and grow the business of our dealer customers. In addition to our product offerings, we provide consultative services and training to assist dealers in optimizing F&I results while achieving high levels of customer satisfaction and regulatory compliance. We also advise dealers regarding necessary liability and physical damage coverages critical to protecting a dealer’s business. We continue to evolve our product suite and digital capabilities to position our business for future opportunities through growing third-party relationships and sales through our online direct-lending platform. We are a market-leading provider of dealer insurance products, offering a variety of commercial products and levels of coverage. Vehicle inventory insurance for dealers provides physical damage protection for dealers’ floorplan vehicles that may be financed by Ally, another lender, or may be owned by the dealer. Dealers who receive wholesale financing from us are eligible for insurance incentives such as automatic eligibility for our preferred insurance programs. We continue to grow our market position leveraging our scale and significant experience in this space. We also offer property, liability, and other ancillary coverages to dealers, and during the third quarter of 2025, we became the underwriting carrier on the majority of these product offerings. Our dealer F&I products are primarily distributed indirectly through the automotive dealer network which includes dealer relationships of approximately 1,500 in the U.S. where we serve 2.4 million consumers. As part of our focus on offering dealers a broad range of consumer F&I products, we offer VSCs, VMCs, and GAP products. Ally Premier Protection is our flagship VSC offering, which provides coverage for new and used vehicles of virtually all makes and models offering owners and lessees mechanical repair protection and roadside assistance beyond the manufacturer’s new vehicle warranty. Our GAP products cover certain amounts owed by a customer beyond their covered vehicle’s value in the event the vehicle is damaged or stolen and declared a total loss. We offer F&I products in Canada, where we serve over 500,000 consumers and are the preferred VSC and other protection plan provider for GM Canada. Our contract to serve as the preferred VSC and protection plan provider for GM Canada extends into the third quarter of 2027. We also underwrite ClearGuard on the SmartAuction platform, which is a protection product designed to minimize the risk to dealers from arbitration claims for eligible vehicles sold at auction. On a smaller scale, we also periodically assume other non-automotive insurance risks through quota share arrangements and perform services as an underwriting carrier for insurance programs managed by a third party where we cede the majority of such business to external reinsurance markets. Our dealer-centric business model, value-added products and services, full-spectrum financing, and business expertise proven over many credit cycles, make us a premier automotive finance and insurance company ready to support and strengthen over 21,000 active dealer relationships as of September 30, 2025. A dealer is considered to have an active relationship with us if we provided automotive financing, remarketing, or insurance services during the three months ended September 30, 2025. • Our Corporate Finance operations primarily offer senior-secured loans to private equity sponsor-owned U.S.-based middle-market companies and to well-established asset managers that mostly provide leveraged loans. The portfolio is composed of floating-rate asset-based and leveraged cash flow/enterprise value loans. Our Corporate Finance operations had $11.3 billion of assets at September 30, 2025, and generated $396 million of total net revenue during the nine months ended September 30, 2025, and continues to offer attractive returns and diversification benefits to our broader lending portfolio. Our Sponsor Finance business focuses on companies owned by private-equity sponsors with loans typically used for leveraged buyouts, refinancing and 76 Table of Contents Management’s Discussion and Analysis Ally Financial Inc. • Form 10-Q recapitalizations, mergers and acquisitions, growth, co-lending arrangements, turnarounds, and debtor-in-possession financings. Additionally, our Private Credit Finance business provides asset managers and other financing sources with facilities to partially fund their direct-lending activities. We have a commercial real estate product primarily focused on lending to skilled nursing facilities, senior housing, memory care facilities, and medical office buildings. Additionally, we have an energy vertical that finances large-scale energy and infrastructure projects. • Corporate and Other primarily consists of centralized corporate treasury activities such as management of the cash and corporate investment securities and loan portfolios, short- and long-term debt, retail and brokered deposit liabilities, derivative instruments, original issue discount, and the residual impacts of our corporate FTP and treasury ALM activities. Corporate and Other also includes activity related to certain equity investments, which primarily consist of FHLB and FRB stock, as well as other equity investments through Ally Ventures, our strategic investment business. Additionally, Corporate and Other includes the management of our consumer mortgage portfolio, CRA loans and investments, and reclassifications and eliminations between the reportable operating segments. Costs that are not allocated to our reportable operating segments as part of our COH methodology, which involves management judgment, are also included in Corporate and Other. These costs include operating costs of deposits, treasury activities, and other corporate activities. Corporate and Other includes the results of Ally Invest, our digital brokerage and advisory offering, which enables us to complement our competitive deposit products with low-cost investing. The digital advisory business aligns with our strategy to create a premier digital financial services company and provides additional sources of fee income through asset management and certain other fees, with minimal balance sheet utilization. This business also provides an additional source of low-cost deposits through arrangements with Ally Invest’s clearing broker. Corporate and Other included Ally Credit Card prior to the sale, which was completed on April 1, 2025. For further information, refer to Note 2 to the Condensed Consolidated Financial Statements. Corporate and Other includes the financial results of our mortgage operations, which consist of our held-for-sale and held-for-investment consumer mortgage loan portfolios. Consumer mortgage originations ceased during the second quarter of 2025, which has and will continue to result in a gradual run-off of our consumer mortgage loan portfolio. Corporate and Other includes our CRA loans. In its most recent performance evaluation in 2025, Ally Bank received an “Outstanding” rating for the CRA strategic plan (2023–2024). Failure by Ally Bank to maintain a “Satisfactory” or better rating on its most recent examination under the CRA may adversely affect our ability to expand our financial and related activities as an FHC or make acquisitions. On October 24, 2023, the U.S. banking agencies issued a final rule to modernize their regulations related to the CRA. The final rule amends their CRA regulations by introducing new tests to evaluate the CRA performance of banks, which most significantly impacts banks with over $2 billion in assets and imposes additional requirements on banks with over $10 billion in assets. Major changes to the CRA regulations include modifications related to the delineation of assessment areas, the overall evaluation framework including performance standards and metrics, the definition of community development activities, and data collection and reporting. Most provisions of the final rule will become effective on January 1, 2026, and the data reporting requirements will become effective on January 1, 2027. The final rule is stayed as to the plaintiff trade associations while a federal court considers the validity of the rule. On July 15, 2025, the FDIC Board of Directors voted to approve a notice of proposed rulemaking to be issued with the Federal Reserve and the Office of the Comptroller of the Currency to both rescind the CRA final rule and reinstate the CRA framework that existed prior to the final rule, with certain technical amendments. 77 Table of Contents Management’s Discussion and Analysis Ally Financial Inc. • Form 10-Q Macroeconomic Environment We employ an internal team of economists to enhance our planning and forecasting capabilities. This team conducts industry and market research, monitors economic risks, and helps support various forms of scenario planning. This group closely monitors macroeconomic trends, such as unemployment rate and sales of new light motor vehicles, given the nature of our business and the potential impacts on our exposure to risks. As of August 31, 2025, the unemployment rate increased to 4.3%. Sales of new light motor vehicles rose to an average annual rate of 16.4 million during July and August of 2025. Sales of new light motor vehicles remain below the pre-pandemic annual pace of 17.0 million in 2019, which has limited incoming used vehicle supply and supported used vehicle values. Our baseline forecast utilized in calculating the quantitative allowance for loan losses as of September 30, 2025, anticipated the unemployment rate peaking at approximately 4.6% in the second quarter of 2026, before reverting to the historical mean of approximately 5.8% by the third quarter of 2028. Additionally, our baseline forecast anticipated deceleration of GDP growth as measured on a quarter-over-quarter seasonally adjusted annualized rate basis through the fourth quarter of 2025, followed by increases in GDP growth through the second quarter of 2026, before reverting to the historical mean of approximately 2.1% by the second quarter of 2028, and increases in new light vehicle sales on a seasonally adjusted annualized rate basis from more than 15 million units in the third quarter of 2025, to approximately 16 million units by the first quarter of 2027, before reverting to the historical mean of 15 million units by the third quarter of 2028. We also maintain a qualitative allowance framework to account for ongoing risks and volatility in the macroeconomic environment, including the impacts from tariffs, inflation, consumer financial health, and geopolitical uncertainty, that could adversely impact frequency of loss and LGD. Refer to the Risk Management section of this MD&A for further discussion on our allowance for loan losses. Macroeconomic risks remain elevated due to impacts from tariffs, inflation, and geopolitical uncertainty. Uncertainty around the scope and timing of changes to fiscal, regulatory, and trade policies, as well as impacts from recent legislative action (such as “H.R. 1”, commonly referred to as the “One Big Beautiful Bill Act”) could act as a source of volatility in our baseline forecasts, particularly with respect to real GDP growth, inflation, unemployment, vehicle sales, and other consumer measures, which could materially impact our risk profile. Announcements regarding changes in U.S. trade policies and practices, as well as counter tariffs and other reciprocal actions by other jurisdictions, have continued to contribute to increased volatility in financial markets and could adversely affect economic conditions. Risks related to the continuation or escalation of tariffs and other trading restrictions, particularly to the extent impacting the automobile industry and related sectors, and the potential impact on inflation, global trade, new and used automobile prices and sales, consumer purchasing power, customer creditworthiness and general economic conditions, could cause our financial results to differ from the anticipated results expressed or implied in any forward-looking statements. 78 Table of Contents Management’s Discussion and Analysis Ally Financial Inc. • Form 10-Q Consolidated Results of Operations The following table summarizes our consolidated operating results for the periods shown. Refer to the reportable operating segment sections of the MD&A that follow for a more complete discussion of operating results by business line. Three months ended September 30, Nine months ended September 30, ($ in millions) 2025 2024 Favorable/(unfavorable) % change 2025 2024 Favorable/(unfavorable) % change Net financing revenue and other interest income Total financing revenue and other interest income $ 3,387 $ 3,574 (5) $ 10,105 $ 10,694 (6) Total interest expense 1,578 1,885 16 4,846 5,673 15 Net depreciation expense on operating lease assets 225 169 (33) 681 516 (32) Net financing revenue and other interest income 1,584 1,520 4 4,578 4,505 2 Other revenue Insurance premiums and service revenue earned 361 359 1 1,084 1,045 4 (Loss) gain on mortgage and automotive loans, net (3) 6 (150) (6) 18 (133) Other gain (loss) on investments, net 56 74 (24) (382) 96 n/m Other income, net of losses 170 176 (3) 517 491 5 Total other revenue 584 615 (5) 1,213 1,650 (26) Total net revenue 2,168 2,135 2 5,791 6,155 (6) Provision for credit losses 415 645 36 990 1,609 38 Noninterest expense Compensation and benefits expense 447 435 (3) 1,382 1,396 1 Insurance losses and loss adjustment expenses 141 135 (4) 505 428 (18) Goodwill impairment — — n/m 305 — n/m Other operating expenses 652 655 — 1,944 1,995 3 Total noninterest expense 1,240 1,225 (1) 4,136 3,819 (8) Income from continuing operations before income tax expense 513 265 94 665 727 (9) Income tax expense from continuing operations 115 67 (72) 140 167 16 Net income from continuing operations $ 398 $ 198 101 $ 525 $ 560 (6) Financial ratios: Return on average assets (a) 0.84 % 0.41 % n/m 0.37 % 0.39 % n/m Return on average equity (a) 10.56 % 5.46 % n/m 4.84 % 5.37 % n/m Equity to assets (a) 7.98 % 7.52 % n/m 7.72 % 7.22 % n/m Common dividend payout ratio (b) 25.21 % 54.55 % n/m 62.94 % 57.69 % n/m n/m = not meaningful (a) The ratios were based on average assets and average total equity using an average daily balance methodology. (b) The common dividend payout ratio was calculated using basic earnings per common share. We earned net income from continuing operations of $398 million and $525 million for the three months and nine months ended September 30, 2025, respectively, compared to $198 million and $560 million for the three months and nine months ended September 30, 2024. The increase in income for the three months ended September 30, 2025, was primarily driven by lower provision for credit losses and higher net financing revenue and other interest income, partially offset by an increase in tax expense from continuing operations. The decrease in income for the nine months ended September 30, 2025, was primarily driven by other loss on investments, net, and higher total noninterest expense, partially offset by lower provision for credit losses and higher net financing revenue and other interest income. Net financing revenue and other interest income increased $64 million and $73 million for the three months and nine months ended September 30, 2025, respectively, as compared to the same periods in 2024. The increases for the three months and nine months ended September 30, 2025, were primarily driven by lower total interest expense in response to lower benchmark interest rates, which decreased our cost of funds associated with our deposit liabilities. The increases were partially offset by the sale of Ally Credit Card, which closed on April 1, 2025, and unfavorable remarketing performance on our off-lease vehicles resulting from lower auction prices on the sale of specific vehicle models and lower termination volume. 79 Table of Contents Management’s Discussion and Analysis Ally Financial Inc. • Form 10-Q Insurance premiums and service revenue earned was $361 million and $1.1 billion for the three months and nine months ended September 30, 2025, respectively, compared to $359 million and $1.0 billion for the three months and nine months ended September 30, 2024. The increases for the three months and nine months ended September 30, 2025, were primarily driven by growth in our vehicle inventory insurance business as we continue to grow new relationships. Other gain (loss) on investments, net, was a gain of $56 million and a loss of $382 million for the three months and nine months ended September 30, 2025, respectively, compared to gains of $74 million and $96 million for the three months and nine months ended September 30, 2024. The decrease for the three months ended September 30, 2025, was primarily due to lower gains from equity securities as compared to the same period in 2024. The decrease for the nine months ended September 30, 2025, compared to the same period in 2024, was primarily attributable to our balance sheet repositioning of a portion of our available-for-sales securities during the nine months ended September 30, 2025. Refer to Note 7 to the Condensed Consolidated Financial Statements for additional information. Other income, net of losses, decreased $6 million for the three months ended September 30, 2025, and increased $26 million for the nine months ended September 30, 2025, compared to the same periods in 2024. The decrease for the three months ended September 30, 2025, was primarily due to lower late charges and other administrative fees from the sale of Ally Credit Card, partially offset by favorable performance from equity-method investments. The increase for the nine months ended September 30, 2025, was primarily driven by favorable performance from equity-method investments, partially offset by lower late charges and other administrative fees. The provision for credit losses decreased $230 million and $619 million for the three months and nine months ended September 30, 2025, respectively, compared to the three months and nine months ended September 30, 2024. The decrease in provision for credit losses for the three months ended September 30, 2025, was primarily driven by lower net charge-offs within our consumer other portfolio due to the sale of Ally Credit Card and lower net charge-offs within our consumer automotive portfolio. The decrease in provision for credit losses for the nine months ended September 30, 2025, was primarily driven by a provision benefit associated with the sale of Ally Credit Card and lower net charge-offs within our consumer automotive portfolio. Refer to the Risk Management section of this MD&A for further discussion on our provision for credit losses. Noninterest expense increased $15 million and $317 million for the three months and nine months ended September 30, 2025, respectively, as compared to the same periods in 2024. The increase for the three months ended September 30, 2025, was primarily due to higher compensation and benefits, and higher insurance losses and loss adjustment expenses from insurance portfolio growth. The increase for the nine months ended September 30, 2025, was primarily driven by the impairment of goodwill associated with the sale of Ally Credit Card, in addition to higher insurance losses and loss adjustment expenses from our vehicle inventory insurance business. The increase was partially offset by lower operating expenses and lower compensation and benefits. We recognized total income tax expense from continuing operations of $115 million and $140 million for the three months and nine months ended September 30, 2025, respectively, compared to $67 million and $167 million for the three months and nine months ended September 30, 2024. The increase in income tax expense for the three months ended September 30, 2025, compared to the same period in 2024, was primarily due to the tax effects of an increase in pretax earnings during the three months ended September 30, 2025. The decrease in income tax expense for the nine months ended September 30, 2025, compared to the same period in 2024, was primarily due to the tax effects of a decrease in pre-tax earnings during the nine months ended September 30, 2025. 80 Table of Contents Management’s Discussion and Analysis Ally Financial Inc. • Form 10-Q Dealer Financial Services Results for Dealer Financial Services are presented by reportable operating segment, which includes our Automotive Finance and Insurance operations. Automotive Finance Results of Operations The following table summarizes the operating results of our Automotive Finance operations. The amounts presented are before the elimination of balances and transactions with our other reportable operating segments. Three months ended September 30, Nine months ended September 30, ($ in millions) 2025 2024 Favorable/(unfavorable) % change 2025 2024 Favorable/(unfavorable) % change Net financing revenue and other interest income Consumer $ 1,961 $ 1,889 4 $ 5,757 $ 5,534 4 Commercial 338 432 (22) 1,008 1,278 (21) Loans held-for-sale 2 — n/m 7 2 n/m Operating leases 365 316 16 1,068 1,005 6 Total financing revenue and other interest income 2,666 2,637 1 7,840 7,819 — Interest expense 1,128 1,101 (2) 3,286 3,176 (3) Net depreciation expense on operating lease assets (a) 225 169 (33) 681 516 (32) Net financing revenue and other interest income 1,313 1,367 (4) 3,873 4,127 (6) Other revenue (Loss) gain on automotive loans, net (3) — n/m (5) 1 n/m Other income, net of losses 99 85 16 295 274 8 Total other revenue 96 85 13 290 275 5 Total net revenue 1,409 1,452 (3) 4,163 4,402 (5) Provision for credit losses 410 579 29 1,231 1,410 13 Noninterest expense Compensation and benefits expense 172 165 (4) 521 503 (4) Other operating expenses 406 353 (15) 1,143 1,070 (7) Total noninterest expense 578 518 (12) 1,664 1,573 (6) Income from continuing operations before income tax expense $ 421 $ 355 19 $ 1,268 $ 1,419 (11) Total assets $ 113,726 $ 113,583 — $ 113,726 $ 113,583 — n/m = not meaningful (a) Includes net remarketing gains of $1 million and net remarketing losses of $18 million for the three months and nine months ended September 30, 2025, respectively, compared to net remarketing gains of $24 million and $129 million for the three months and nine months ended September 30, 2024. Our Automotive Finance operations earned income from continuing operations before income tax expense of $421 million and $1.3 billion for the three months and nine months ended September 30, 2025, respectively, compared to $355 million and $1.4 billion for the three months and nine months ended September 30, 2024. For the three months ended September 30, 2025, the increase was primarily due to lower provision for credit losses, partially offset by higher total noninterest expense and higher net depreciation expense on operating lease assets. For the nine months ended September 30, 2025, the decrease was primarily due to higher net depreciation expense on operating lease assets and higher total noninterest expense, partially offset by lower provision for credit losses. Consumer automotive loan financing revenue and other interest income increased $72 million and $223 million for the three months and nine months ended September 30, 2025, respectively, compared to the same periods in 2024. The increases were primarily driven by higher average consumer assets resulting from origination growth and higher portfolio yields as higher yielding originations replace maturity of lower yielding assets resulting from pricing actions. Commercial loan financing revenue and other interest income decreased $94 million and $270 million for the three months and nine months ended September 30, 2025, respectively, compared to the three months and nine months ended September 30, 2024. The decreases 81 Table of Contents Management’s Discussion and Analysis Ally Financial Inc. • Form 10-Q were primarily due to lower average outstanding wholesale floorplan balances within the Stellantis dealer channel and lower yield driven by lower benchmark interest rates, as our commercial automotive loans are generally variable-rate. Interest expense increased $27 million and $110 million for the three months and nine months ended September 30, 2025, respectively, compared to the same periods in 2024. The increases for the three months and nine months ended September 30, 2025, were primarily driven by higher funding costs as a result of a gradual shift in the composition of our consumer portfolios to loans and leases originated during a higher interest rate environment. Total net operating lease revenue decreased $7 million and $102 million for the three months and nine months ended September 30, 2025, respectively, compared to the same periods in 2024. The decreases in net operating lease revenue for the three months and nine months ended September 30, 2025, were driven by lower remarketing performance. We recognized net remarketing gains of $1 million and net remarketing losses of $18 million for the three months and nine months ended September 30, 2025, respectively, compared to net remarketing gains of $24 million and $129 million for the three months and nine months ended September 30, 2024. The decreases in remarketing gains for the three months and nine months ended September 30, 2025, were primarily driven by lower auction prices on the sale of specific vehicle models and lower termination volume. Refer to the Operating Lease Residual Risk Management section of this MD&A for further discussion. The provision for credit losses decreased $169 million and $179 million for the three months and nine months ended September 30, 2025, respectively, compared to the three months and nine months ended September 30, 2024. The decreases in provision for credit losses for the three months and nine months ended September 30, 2025, were primarily driven by lower net charge-offs within our consumer automotive portfolio. Additionally, for the three months and nine months ended September 30, 2024, our consumer automotive portfolio experienced an increase in reserves, which included additional reserves associated with the estimated impact of Hurricane Helene. Refer to the Risk Management section of this MD&A for further discussion on our provision for credit losses. Total noninterest expense increased $60 million and $91 million for the three months and nine months ended September 30, 2025, respectively, compared to the same periods in 2024. The increases for the three months and nine months ended September 30, 2025, were primarily due to increased expenses to support the growth of our consumer product suite and expand our digital capabilities and portfolio of products. The following table presents the average balance and yield of the loan and operating lease portfolios of our Automotive Financing operations. Three months ended September 30, Nine months ended September 30, 2025 2024 2025 2024 ($ in millions) Average balance (a) Yield Average balance (a) Yield Average balance (a) Yield Average balance (a) Yield Finance receivables and loans, net (b) Consumer automotive (c) $ 84,590 9.20 % $ 83,622 8.99 % $ 84,067 9.16 % $ 83,815 8.82 % Commercial Wholesale floorplan (d) 14,771 6.65 17,535 7.76 14,886 6.65 17,458 7.72 Other commercial automotive (e) 6,348 5.66 6,348 5.65 6,327 5.65 6,369 5.64 Investment in operating leases, net (f) 8,255 6.70 8,038 7.22 8,044 6.43 8,433 7.72 (a) Average balances are calculated using an average daily balance methodology. Refer to Note 1 to the Consolidated Financial Statements in our 2024 Annual Report on Form 10-K for further information regarding our basis of presentation and significant accounting policies, which are in accordance with U.S. GAAP. (b) Nonperforming finance receivables and loans are included in the average balances. For information on our accounting policies regarding nonperforming status, refer to Note 1 to the Consolidated Financial Statements in our 2024 Annual Report on Form 10-K. (c) Excludes the effects of derivative financial instruments designated as hedges, which is included within Corporate and Other. Including the impact of hedging activities, the yield was 9.27% and 9.24% for the three months and nine months ended September 30, 2025, respectively, and 9.29% and 9.18% for the three months and nine months ended September 30, 2024. (d) Excludes the effects of derivative financial instruments designated as hedges, which is included within Corporate and Other. Including the impact of hedging activities, the yield was 6.42% and 6.44% for the three months and nine months ended September 30, 2025, respectively, and 7.68% and 7.67% for the three months and nine months ended September 30, 2024. (e) Consists primarily of automotive dealer term loans, including those to finance dealership land and buildings, and dealer fleet financing. (f) Yield includes net gains on the sale of off-lease vehicles of $1 million and net losses of $18 million for the three months and nine months ended September 30, 2025, respectively, and net gains of $24 million and $129 million for the three months and nine months ended September 30, 2024. Excluding these gains and losses on sale, the yield was 6.64% and 6.72% for the three months and nine months ended September 30, 2025, respectively, compared to 6.03% and 5.68% for the three months and nine months ended September 30, 2024. 82 Table of Contents Management’s Discussion and Analysis Ally Financial Inc. • Form 10-Q During the three months and nine months ended September 30, 2025, our portfolio yield for consumer automotive loans, excluding the impact of hedging activities, increased 21 and 34 basis points, respectively, as compared to the same periods in 2024. The increases for the three months and nine months ended September 30, 2025, were primarily driven by a shift in portfolio mix as higher yielding originations replace the maturity of lower yielding assets resulting from pricing actions. Our portfolio yield for consumer automotive loans, including the effects of derivative financial instruments designated as hedges, were 7 and 8 basis points higher than our portfolio yield for consumer automotive loans excluding the effects of derivative financial instruments designated as hedges for the three months and nine months ended September 30, 2025, respectively. This is attributable to the execution of hedging strategies that are used to mitigate interest rate risks. The effects of derivative financial instruments designated as hedges are included within Corporate and Other. Refer to Note 19 to the Condensed Consolidated Financial Statements for further discussion. During the three months and nine months ended September 30, 2025, our portfolio yield for commercial wholesale floorplan loans, excluding the impact of hedging activities, decreased 111 and 107 basis points, respectively, compared to the same periods in 2024. The decreases were primarily due to lower benchmark interest rates, as our commercial automotive loans are generally variable-rate. Our portfolio yield for investment in operating leases, net, including gains and losses on the sale of off-lease vehicles, decreased 52 and 129 basis points to 6.70% and 6.43% for the three months and nine months ended September 30, 2025, respectively, as compared to 7.22% and 7.72% for the three months and nine months ended September 30, 2024. The decreases were due to lower remarketing gains, which decreased $23 million and $147 million for the three months and nine months ended September 30, 2025, compared to the same periods in 2024. Refer to the Operating Lease Residual Risk Management section of this MD&A for further discussion. 83 Table of Contents Management’s Discussion and Analysis Ally Financial Inc. • Form 10-Q Automotive Financing Volume Consumer Automotive Financing The following table presents retail loan originations and purchases by credit tier and product type. Used retail New retail Credit Tier (a) Volume ($ in billions) % Share of volume Average FICO® Volume ($ in billions) % Share of volume Average FICO® Three months ended September 30, 2025 S $ 2.6 37 759 $ 1.7 55 769 A 2.9 42 687 1.1 35 687 B 1.0 15 641 0.3 10 650 C 0.3 4 604 — — 615 D 0.1 1 573 — — 579 E 0.1 1 552 — — 554 Total retail loan originations $ 7.0 100 702 $ 3.1 100 725 Three months ended September 30, 2024 S $ 2.4 41 761 $ 1.3 52 759 A 2.5 42 689 1.0 40 687 B 0.7 12 643 0.2 8 651 C 0.2 3 605 — — 616 D 0.1 2 573 — — 566 Total retail loan originations $ 5.9 100 707 $ 2.5 100 716 Nine months ended September 30, 2025 S $ 7.5 37 762 $ 5.0 55 771 A 8.5 42 689 3.3 36 687 B 2.9 15 644 0.7 8 650 C 0.8 4 607 0.1 1 611 D 0.3 1 573 — — 571 E 0.1 1 553 — — 553 Total retail loan originations $ 20.1 100 704 $ 9.1 100 726 Nine months ended September 30, 2024 S $ 7.4 40 759 $ 3.8 49 757 A 8.0 43 689 3.2 42 687 B 2.4 13 643 0.7 9 652 C 0.6 3 603 — — 617 D 0.2 1 567 — — 567 Total retail loan originations $ 18.6 100 706 $ 7.7 100 714 (a) Represents Ally’s internal credit score, incorporating numerous borrower and structure attributes including: severity and aging of delinquency; number of credit inquiries; LTV ratio; term; payment-to-income ratio; and debt-to-income ratio. We periodically update our underwriting scorecard, which can have an impact on our credit tier scoring. 84 Table of Contents Management’s Discussion and Analysis Ally Financial Inc. • Form 10-Q The following table presents the percentage of total retail loan originations and purchases, in dollars, by the loan term in months. Three months ended September 30, Nine months ended September 30, 2025 2024 2025 2024 0–71 17 % 15 % 17 % 15 % 72–75 60 61 60 62 76 + 23 24 23 23 Total retail loan originations 100 % 100 % 100 % 100 % Retail loan originations with a term of 76 months or more represented 23% of total retail loan originations for both the three months and nine months ended September 30, 2025, compared to 24% and 23% for the three months and nine months ended September 30, 2024, respectively. Substantially all the loans originated with a term of 76 months or more during both the three months and nine months ended September 30, 2025, and 2024, were considered to be prime and in credit tiers S, A, or B. Our underwriting processes are designed to consider various deal structure variables—such as payment-to-income, LTV, debt-to-income, and FICO® score—that compensate for longer loan terms and mitigate underwriting risk. During the three months ended September 30, 2025, approximately 84% of our used retail loan originations were for vehicles with a model year of 2019 or newer. According to the Bureau of Transportation Statistics, the average age of light vehicles in operation in the United States during 2024 was approximately 13 years. Substantially all used retail loan originations with a term of 76 months or more during the three months ended September 30, 2025, were for vehicles with a model year of 2019 or newer. The following table presents the percentage of total outstanding retail loans by origination year. September 30, 2025 2024 Pre-2021 3 % 8 % 2021 7 13 2022 13 22 2023 18 28 2024 27 29 2025 32 — Total retail 100 % 100 % The following tables present the total retail loan and operating lease origination and purchase dollars and percentage mix by product type and by channel. Consumer automotive financing originations % Share of Ally originations Three months ended September 30, ($ in millions) 2025 2024 2025 2024 Used retail $ 7,038 $ 5,887 60 63 New retail 3,130 2,546 27 27 Lease 1,527 957 13 10 Total consumer automotive financing originations (a) $ 11,695 $ 9,390 100 100 (a) Includes CSG originations of $1.0 billion and $856 million for the three months ended September 30, 2025, and 2024, respectively. Consumer automotive financing originations % Share of Ally originations Nine months ended September 30, ($ in millions) 2025 2024 2025 2024 Used retail $ 20,143 $ 18,562 61 64 New retail 9,170 7,744 28 27 Lease 3,533 2,617 11 9 Total consumer automotive financing originations (a) $ 32,846 $ 28,923 100 100 (a) Includes CSG originations of $2.8 billion and $2.9 billion for the nine months ended September 30, 2025, and 2024, respectively. 85 Table of Contents Management’s Discussion and Analysis Ally Financial Inc. • Form 10-Q Consumer automotive financing originations % Share of Ally originations Three months ended September 30, ($ in millions) 2025 2024 2025 2024 GM dealers $ 2,718 $ 1,997 23 21 Stellantis dealers 1,472 1,521 13 16 Other dealers and automotive retailers OEM-franchised dealers (a) 4,734 3,698 40 40 Non-OEM-franchised dealers and automotive retailers 2,771 2,174 24 23 Total other dealers and automotive retailers 7,505 5,872 64 63 Total consumer automotive financing originations $ 11,695 $ 9,390 100 100 (a) Includes automotive manufacturers with a direct-to-consumer model. Consumer automotive financing originations % Share of Ally originations Nine months ended September 30, ($ in millions) 2025 2024 2025 2024 GM dealers $ 7,461 $ 6,482 23 22 Stellantis dealers 4,222 4,770 13 17 Other dealers and automotive retailers OEM-franchised dealers (a) 13,424 11,094 41 38 Non-OEM-franchised dealers and automotive retailers 7,739 6,577 23 23 Total other dealers and automotive retailers 21,163 17,671 64 61 Total consumer automotive financing originations $ 32,846 $ 28,923 100 100 (a) Includes automotive manufacturers with a direct-to-consumer model. Total consumer automotive loan and operating lease originations increased $2.3 billion and $3.9 billion for the three months and nine months ended September 30, 2025, respectively, compared to the same periods in 2024. The increases were primarily driven by higher industry new and used vehicle sales, increased demand for electric vehicle leasing, and strong dealer engagement. We have included origination metrics by loan term and FICO® Score within this MD&A. In addition, we employ our own risk evaluation, including proprietary risk models, in evaluating credit risk, as described in the section titled Automotive Financing Volume—Acquisition and Underwriting within the MD&A in our 2024 Annual Report on Form 10-K. 86 Table of Contents Management’s Discussion and Analysis Ally Financial Inc. • Form 10-Q The following tables present the percentage of retail loan and operating lease originations and purchases, in dollars, by FICO® Score and product type. We define prime consumer automotive loans primarily as those loans with a FICO® Score at origination of 620 or greater. Used retail New retail Lease Three months ended September 30, 2025 2024 2025 2024 2025 2024 760 + 24 % 25 % 30 % 25 % 48 % 54 % 720–759 14 15 13 13 18 17 660–719 28 29 25 28 22 20 620–659 18 17 16 17 8 6 540–619 10 9 4 4 3 2 < 540 2 2 — — — — Unscored (a) 4 3 12 13 1 1 Total consumer automotive financing originations 100 % 100 % 100 % 100 % 100 % 100 % (a) Unscored are primarily CSG contracts with business entities that have no FICO® Score. Used retail New retail Lease Nine months ended September 30, 2025 2024 2025 2024 2025 2024 760 + 24 % 25 % 31 % 23 % 50 % 53 % 720–759 14 15 13 13 18 16 660–719 28 29 25 28 21 20 620–659 18 17 15 17 7 7 540–619 10 8 4 4 3 2 < 540 2 2 — — — — Unscored (a) 4 4 12 15 1 2 Total consumer automotive financing originations 100 % 100 % 100 % 100 % 100 % 100 % (a) Unscored are primarily CSG contracts with business entities that have no FICO® Score. Originations with a FICO® Score of less than 620 (considered nonprime) represented 9% of total consumer loan and operating lease originations for both the three months and nine months ended September 30, 2025, respectively, compared to 8% for both the three months and nine months ended September 30, 2024. Consumer loans and operating leases with FICO® Scores of less than 540 represented 1% of total originations for both the three months and nine months ended September 30, 2025, and 1% for both the same periods in 2024. Nonprime applications are subject to more stringent underwriting criteria (for example, maximum payment-to-income ratio, maximum debt-to-income ratio, and maximum amount financed), and our nonprime loan portfolio generally does not include any loans with a term of 76 months or more. The carrying value of our held-for-investment, nonprime consumer automotive loans before allowance for loan losses was $8.3 billion and $8.2 billion at September 30, 2025, and December 31, 2024, respectively, or approximately 9.8% and 9.7% of our total consumer automotive loans at September 30, 2025, and December 31, 2024. For discussion of our credit-risk-management practices and performance, refer to the section below titled Risk Management . During the fourth quarter of 2025, we amended our relationship with Carvana, a leading e-commerce platform for buying and selling used vehicles. Specifically, we increased our committed facility by $2.0 billion to a maximum of $6.0 billion to support our continued efforts to optimize risk-adjusted returns. This commitment is effective for 364 days. As part of the agreement, we continue to purchase finance receivables on a periodic basis within prescribed eligibility requirements and risk appetite, consistent with purchase practices in prior years. All the finance receivables purchased through this channel are used vehicles, and are included in non-OEM-franchised dealers and automotive retailers in our consumer origination metrics. While different vintages and credit tiers exhibit varying performance, collectively to date, finance receivables purchased from Carvana have generally exhibited consistent delinquency and loss performance compared to loans with similar credit characteristics acquired through our indirect dealer channel. Consumer finance receivables and loans sourced from Carvana represented 9.6% and 8.6% of our total consumer automotive finance receivables and loans as of September 30, 2025, and December 31, 2024, respectively. Loan purchases from Carvana were 11% and 10% of our total consumer automotive financing originations during the three months and nine months ended September 30, 2025, respectively, as compared to 8% and 7% for the same periods in 2024. For discussion of manufacturer marketing incentives, refer to the section titled Automotive Financing Volume—Manufacturer Marketing Incentives within the MD&A in our 2024 Annual Report on Form 10-K. 87 Table of Contents Management’s Discussion and Analysis Ally Financial Inc. • Form 10-Q Commercial Wholesale Financing Volume The following table presents the percentage of average balance of our commercial wholesale floorplan finance receivables, in dollars, by product type and by channel. Average balance Three months ended September 30, Nine months ended September 30, ($ in millions) 2025 2024 2025 2024 Stellantis new vehicles 29 % 38 % 29 % 41 % GM new vehicles 27 26 28 24 Other new vehicles 23 20 23 19 Used vehicles 21 16 20 16 Total 100 % 100 % 100 % 100 % Total commercial wholesale finance receivables $ 14,771 $ 17,535 $ 14,886 $ 17,458 Average commercial wholesale financing receivables outstanding decreased $2.8 billion and $2.6 billion during the three months and nine months ended September 30, 2025, respectively, as compared to the same periods in 2024. The decreases for the three months and nine months ended September 30, 2025, as compared to the same periods in 2024, were primarily due to a decrease within the Stellantis dealer channel. Carvana's commercial line of credit totals $1.5 billion, with a scheduled maturity in the second quarter of 2027. The line of credit represents a commitment to fund Carvana’s wholesale floorplan financing of used vehicles and is consistent in form and structure with our other wholesale floorplan financing arrangements. This includes the line of credit being fully collateralized to mitigate counterparty credit risk in the event of a default. At September 30, 2025, Carvana’s gross wholesale floorplan assets outstanding balance was $73 million. Other Commercial Automotive Financing We also provide other forms of commercial financing for the automotive industry including automotive dealer term and revolving loans and automotive fleet financing. Automotive dealer term and revolving loans are loans that we make to dealers to finance other aspects of the dealership business, including acquisitions. These loans are usually secured by real estate or other dealership assets and are typically personally guaranteed by the individual owners of the dealership. Additionally, these loans generally include cross-collateral and cross-default provisions. Automotive fleet financing credit lines may be obtained by dealers, their affiliates, and other independent companies that are used to purchase vehicles, which they lease or rent to others. The average balances of other commercial automotive loans remained unchanged for the three months ended September 30, 2025, and decreased $42 million for the nine months ended September 30, 2025, compared to the same periods in 2024, resulting in an average balance of $6.3 billion for both the three months and nine months ended September 30, 2025. 88 Table of Contents Management’s Discussion and Analysis Ally Financial Inc. • Form 10-Q Insurance Results of Operations The following table summarizes the operating results of our Insurance operations. The amounts presented are before the elimination of balances and transactions with our other reportable segments. Three months ended September 30, Nine months ended September 30, ($ in millions) 2025 2024 Favorable/(unfavorable) % change 2025 2024 Favorable/(unfavorable) % change Insurance premiums and other income Insurance premiums and service revenue earned $ 361 $ 359 1 $ 1,084 $ 1,045 4 Interest and dividends on investment securities, cash and cash equivalents, and other earning assets, net (a) 33 30 10 93 83 12 Other gain on investments, net (b) 56 75 (25) 111 104 7 Other income, net of losses 3 3 — 11 10 10 Total insurance premiums and other income 453 467 (3) 1,299 1,242 5 Expense Insurance losses and loss adjustment expenses 141 135 (4) 505 428 (18) Acquisition and underwriting expense Compensation and benefits expense 29 27 (7) 85 81 (5) Insurance commissions expense 158 164 4 474 486 2 Other expenses 46 39 (18) 126 115 (10) Total acquisition and underwriting expense 233 230 (1) 685 682 — Total expense 374 365 (2) 1,190 1,110 (7) Income from continuing operations before income tax expense $ 79 $ 102 (23) $ 109 $ 132 (17) Total assets $ 9,848 $ 9,455 4 $ 9,848 $ 9,455 4 Insurance premiums and service revenue written $ 385 $ 384 — $ 1,119 $ 1,082 3 Combined ratio (c) 102.6 % 100.6 % 108.7 % 105.3 % (a) Includes interest expense of $16 million and $45 million for the three months and nine months ended September 30, 2025, respectively, and $13 million and $40 million for the three months and nine months ended September 30, 2024. (b) Includes net unrealized gains on equity securities of $27 million and $43 million for the three months and nine months ended September 30, 2025, respectively, and net unrealized gains of $56 million and $46 million for the three months and nine months ended September 30, 2024 . (c) Management uses a combined ratio as a primary measure of underwriting profitability. Underwriting profitability is indicated by a combined ratio under 100% and is calculated as the sum of all incurred losses and expenses (excluding interest and income tax expense) divided by the total of premiums and service revenue earned and other income (excluding interest, dividends, and other investment activity). Our Insurance operations earned income from continuing operations before income tax expense of $79 million and $109 million for the three months and nine months ended September 30, 2025, respectively, compared to income of $102 million and $132 million for the three months and nine months ended September 30, 2024. The decrease for the three months ended September 30, 2025, was primarily driven by a decrease in other gain on investments, as a result of lower unrealized gains on our equity portfolio. The decrease for the nine months ended September 30, 2025, was primarily driven by higher insurance losses and loss adjustment expenses, partially offset by higher insurance premiums and other income from growth in our insurance portfolio and higher investment income. Insurance premiums and service revenue earned was $361 million and $1.1 billion for the three months and nine months ended September 30, 2025, respectively, compared to $359 million and $1.0 billion for the same periods in 2024. The increases for the three months and nine months ended September 30, 2025, were primarily driven by growth in our vehicle inventory insurance business as we continue to grow new relationships. Other gain on investments, net was $56 million and $111 million for the three months and nine months ended September 30, 2025, respectively, compared to $75 million and $104 million for the same periods in 2024. This consisted of realized capital gains of $28 million and $68 million during the three months and nine months ended September 30, 2025, compared to $19 million and $58 million for the same periods in 2024. The decrease for the three months ended September 30, 2025, was driven by net unrealized gains on equity securities of $27 million for the three months ended September 30, 2025, compared to $56 million during the same period in 2024, partially offset by higher realized gains. The increase for the nine months ended September 30, 2025, was driven by higher realized gains, partially offset by net unrealized gains on equity securities of $43 million for the nine months ended September 30, 2025, compared to $46 million during the same period in 2024. 89 Table of Contents Management’s Discussion and Analysis Ally Financial Inc. • Form 10-Q Insurance losses and loss adjustment expenses totaled $141 million and $505 million for the three months and nine months ended September 30, 2025, respectively, compared to $135 million and $428 million for the same periods in 2024. The increase for the three months ended September 30, 2025, was primarily due to insurance portfolio growth. The increase for the nine months ended September 30, 2025, was primarily due to higher weather losses driven by growth in our vehicle inventory insurance business. During the three months and nine months ended September 30, 2025, weather-related loss and loss adjustment expenses from our vehicle inventory insurance business were $22 million and $171 million, respectively, compared to $26 million and $121 million during the same periods in 2024. We utilized our excess of loss reinsurance and ceded weather-related losses on our vehicle inventory insurance business during the first three quarters of 2024, and the first quarter of 2025, as losses exceeded the retention limit, helping to partially mitigate the impact of weather losses, primarily due to severe hailstorms. In April 2025, we renewed our annual excess of loss reinsurance agreement and continue to utilize this coverage for our vehicle inventory insurance to manage our risk of weather-related losses, under which retention limits vary for each quarter. Our combined ratio was 102.6% and 108.7% for the three months and nine months ended September 30, 2025, respectively, compared to 100.6% and 105.3% for the same periods in 2024. The increase for the three months ended September 30, 2025, as compared to the same period in 2024, was primarily driven by higher insurance losses and loss adjustment expenses and higher acquisition and underwriting expenses, partially offset by insurance portfolio growth. The increase for the nine months ended September 30, 2025, was primarily driven by higher net weather losses compared to the same period in 2024, partially offset by higher earned premiums from our vehicle inventory insurance business. Premium and Service Revenue Written The following table summarizes premium and service revenue written by product, net of premiums ceded to reinsurers, and premiums and service revenue assumed from third parties. VSC and GAP revenue are earned over the life of the service contract on a basis proportionate to the anticipated loss pattern. Refer to Note 3 to the Consolidated Financial Statements in our 2024 Annual Report on Form 10-K for further discussion of this revenue stream. Three months ended September 30, Nine months ended September 30, ($ in millions) 2025 2024 2025 2024 Finance and insurance products Vehicle service contracts $ 169 $ 188 $ 514 $ 553 Guaranteed asset protection and other finance and insurance products (a) 91 71 248 202 Total finance and insurance products 260 259 762 755 Property and casualty insurance (b) 108 115 323 287 Other premium and service revenue written (c) 17 10 34 40 Total $ 385 $ 384 $ 1,119 $ 1,082 (a) Other financial and insurance products include VMCs, ClearGuard, and other ancillary products. (b) P&C insurance includes vehicle inventory insurance and dealer ancillary products including property and liability coverage earned on a straight-line basis. (c) Primarily includes non-automotive assumed reinsurance and revenue associated with performing services as an underwriting carrier. Insurance premiums and service revenue written was $385 million and $1.1 billion for the three months and nine months ended September 30, 2025, respectively, compared to $384 million and $1.1 billion for the same periods in 2024. The increase for the three months ended September 30, 2025, was primarily due to growth in our GAP and other ancillary F&I products, as well as other diversified non-automotive written premiums, partially offset by lower VSC volume and higher P&C reinsurance costs. The increase for the nine months ended September 30, 2025, was primarily due to higher written premiums from our P&C business primarily driven by growth in vehicle inventory insurance business relationships, increasing our market share, and higher finance and insurance products, partially offset by higher reinsurance costs. Cash and Investments A significant aspect of our Insurance operations is the investment of proceeds from premiums and other revenue sources. We use these investments to satisfy our obligations related to future claims at the time these claims are settled. Our Insurance operations have an Investment Committee, which develops guidelines and strategies for these investments. The guidelines established by this committee reflect our risk appetite, liquidity requirements, regulatory requirements, and rating agency considerations, among other factors. 90 Table of Contents Management’s Discussion and Analysis Ally Financial Inc. • Form 10-Q The following table summarizes the composition of our Insurance operations cash and investment portfolio at fair value. ($ in millions) September 30, 2025 December 31, 2024 Cash and cash equivalents Noninterest-bearing cash $ 102 $ 91 Interest-bearing cash 509 527 Total cash and cash equivalents 611 618 Equity securities 864 867 Available-for-sale securities Debt securities U.S. Treasury and federal agencies 590 464 U.S. States and political subdivisions 318 361 Foreign government 204 194 Agency mortgage-backed residential 1,155 853 Mortgage-backed residential 200 206 Corporate debt 1,903 1,754 Total available-for-sale securities (amortized cost of $4,663 and $4,274) 4,370 3,832 Total cash, cash equivalents, and securities $ 5,845 $ 5,317 In addition to these cash and investment securities, the Insurance segment has interest-bearing intercompany arrangements with Corporate and Other, callable on demand. The intercompany loan balance due to Insurance was $696 million and $864 million at September 30, 2025, and December 31, 2024, respectively, and related interest income of $5 million and $14 million was recognized for the three months and nine months ended September 30, 2025, compared to $4 million and $11 million for the same periods in 2024. 91 Table of Contents Management’s Discussion and Analysis Ally Financial Inc. • Form 10-Q Corporate Finance Results of Operations The following table summarizes the activities of our Corporate Finance operations. The amounts presented are before the elimination of balances and transactions with our reportable segments. Three months ended September 30, Nine months ended September 30, ($ in millions) 2025 2024 Favorable/(unfavorable) % change 2025 2024 Favorable/(unfavorable) % change Net financing revenue and other interest income Interest and fees on finance receivables and loans $ 236 $ 245 (4) $ 686 $ 758 (9) Interest on loans held-for-sale 2 3 (33) 6 11 (45) Interest expense 127 139 9 369 428 14 Net financing revenue and other interest income 111 109 2 323 341 (5) Total other revenue 25 37 (32) 73 90 (19) Total net revenue 136 146 (7) 396 431 (8) Provision for credit losses 8 11 27 20 13 (54) Noninterest expense Compensation and benefits expense 19 17 (12) 63 61 (3) Other operating expenses 14 13 (8) 46 43 (7) Total noninterest expense 33 30 (10) 109 104 (5) Income from continuing operations before income tax expense $ 95 $ 105 (10) $ 267 $ 314 (15) Total assets $ 11,343 $ 10,398 9 $ 11,343 $ 10,398 9 Our Corporate Finance operations earned income from continuing operations before income tax expense of $95 million and $267 million for the three months and nine months ended September 30, 2025, respectively, compared to $105 million and $314 million for the three months and nine months ended September 30, 2024. The decreases for the three months and nine months ended September 30, 2025, were primarily due to lower total other revenue. Additionally, the decrease for the nine months ended September 30, 2025, was driven by lower net financing revenue and other interest income and higher provision for credit losses. Net financing revenue and other interest income was $111 million and $323 million for the three months and nine months ended September 30, 2025, respectively, compared to $109 million and $341 million for the three months and nine months ended September 30, 2024. The decrease for the nine months ended September 30, 2025, was primarily driven by lower accelerated deferred fees from early loan payoffs, which were elevated during the nine months ended September 30, 2024. Other revenue decreased $12 million and $17 million for the three months and nine months ended September 30, 2025, respectively, compared to the three months and nine months ended September 30, 2024. The decreases for the three months and nine months ended September 30, 2025, were primarily driven by lower syndication income. Additionally, the decreases were driven by lower fee income on revolving credit lines due to higher utilization as compared to the three months and nine months ended September 30, 2024. The provision for credit losses decreased $3 million for the three months ended September 30, 2025, and increased $7 million for the nine months ended September 30, 2025, as compared to the same periods in 2024. The decrease for the three months ended September 30, 2025, was primarily driven by lower portfolio growth as compared to the three months ended September 30, 2024. The increase for the nine months ended September 30, 2025, was primarily driven by portfolio growth. Refer to the Risk Management section of this MD&A for further discussion on our provision for credit losses. Total noninterest expense increased $3 million and $5 million for the three months and nine months ended September 30, 2025, respectively, compared to the three months and nine months ended September 30, 2024. The increases were primarily due to higher direct and allocated expenses related to the growth of the business. 92 Table of Contents Management’s Discussion and Analysis Ally Financial Inc. • Form 10-Q Credit Portfolio The following table presents loans held-for-sale, the amortized cost of finance receivables and loans outstanding, unfunded lending commitments, and total serviced loans of our Corporate Finance operations. As of September 30, 2025, 62% of our loans and 61% of our lending commitments were asset based, with all in a first-lien position. Additionally, total criticized exposures were 9.4% and 14.2% of total Corporate Finance finance receivables and loans at September 30, 2025, and December 31, 2024, respectively. ($ in millions) September 30, 2025 December 31, 2024 Loans held-for-sale, net $ 78 $ 105 Finance receivables and loans (a) $ 11,289 $ 9,593 Unfunded lending commitments (b) $ 7,931 $ 7,913 Total serviced loans $ 14,661 $ 12,820 (a) Includes $9.0 billion and $8.1 billion of commercial and industrial loans at September 30, 2025, and December 31, 2024, respectively, and $2.3 billion and $1.5 billion of commercial real estate loans at September 30, 2025, and December 31, 2024, respectively. Our commercial real estate loans are primarily focused on lending to skilled nursing facilities, senior housing, memory care facilities, and medical office buildings. There are no exposures related to commercial office buildings. (b) Includes unused revolving credit line commitments for loans held-for-sale and finance receivables and loans, signed commitment letters, and standby letter of credit facilities, which are issued on behalf of clients and may contingently require us to make payments to a third-party beneficiary in the event of a draw by the beneficiary thereunder. As many of these commitments are subject to borrowing base agreements and other restrictive covenants or may expire without being fully drawn, the stated amounts of these unfunded commitments are not necessarily indicative of future cash requirements. The following table presents the percentage of total finance receivables and loans of our Corporate Finance operations by industry concentration. The finance receivables and loans are reported at amortized cost. September 30, 2025 December 31, 2024 Industry Financial services 42.3 % 42.1 % Health services 19.4 15.1 Services 13.5 14.3 Chemicals and metals 7.8 7.4 Machinery, equipment, and electronics 5.6 6.7 Automotive and transportation 4.8 7.0 Wholesale 3.4 3.0 Construction 1.4 1.3 Retail trade 0.8 1.0 Other manufactured products 0.7 1.5 Other 0.3 0.6 Total finance receivables and loans 100.0 % 100.0 % 93 Table of Contents Management’s Discussion and Analysis Ally Financial Inc. • Form 10-Q Corporate and Other The following table summarizes the activities of Corporate and Other, which primarily consist of centralized corporate treasury activities such as management of the cash and corporate investment securities and loan portfolios, short- and long-term debt, retail and brokered deposit liabilities, derivative instruments, original issue discount, and the residual impacts of our corporate FTP and treasury ALM activities. Corporate and Other also includes certain equity investments, which primarily consist of FHLB and FRB stock as well as other strategic investments through Ally Ventures, the management of our consumer mortgage portfolio, the activity related to Ally Invest, Ally Lending, Ally Credit Card, CRA loans and investments, and reclassifications and eliminations between the reportable operating segments. Additionally, Corporate and Other includes costs that are not allocated to our reportable operating segments as part of our COH methodology, which involves management judgment. Refer to Note 23 to the Condensed Consolidated Financial Statements for more information. Three months ended September 30, Nine months ended September 30, ($ in millions) 2025 2024 Favorable/(unfavorable) % change 2025 2024 Favorable/(unfavorable) % change Net financing revenue and other interest income Interest and fees on finance receivables and loans (a) $ 134 $ 319 (58) $ 542 $ 980 (45) Interest on loans held-for-sale 2 2 — 4 35 (89) Interest and dividends on investment securities and other earning assets (b) 211 231 (9) 619 699 (11) Interest on cash and cash equivalents 87 94 (7) 270 269 — Total financing revenue and other interest income 434 646 (33) 1,435 1,983 (28) Interest expense Original issue discount amortization (c) 19 17 (12) 55 51 (8) Other interest expense (d) 288 615 53 1,091 1,978 45 Total interest expense 307 632 51 1,146 2,029 44 Net financing revenue and other interest income 127 14 n/m 289 (46) n/m Other revenue Gain (loss) on mortgage and automotive loans, net — 6 (100) (1) 17 (106) Other loss on investments, net — (2) 100 (493) (9) n/m Other income, net of losses 43 52 (17) 138 118 17 Total other revenue 43 56 (23) (356) 126 n/m Total net revenue 170 70 143 (67) 80 (184) Provision for credit losses (3) 55 105 (261) 186 n/m Total noninterest expense (e) 255 312 18 1,173 1,032 (14) Loss from continuing operations before income tax benefit $ (82) $ (297) 72 $ (979) $ (1,138) 14 Total assets $ 56,794 $ 59,234 (4) $ 56,794 $ 59,234 (4) n/m = not meaningful (a) Includes financing revenue from our consumer mortgage portfolio and impacts associated with hedging activities within our automotive loan portfolio. Additionally includes financing revenue from our consumer other portfolios prior to the completion of the sale of Ally Credit Card on April 1, 2025. (b) Includes impacts associated with hedging activities of our available-for-sale securities. (c) Amortization is included as interest on long-term debt in the Condensed Consolidated Statement of Comprehensive Income. (d) Includes the residual impacts of our FTP methodology and impacts of hedging activities of certain debt obligations. (e) Includes reductions of $233 million and $661 million for the three months and nine months ended September 30, 2025, respectively, and $204 million and $612 million for the three months and nine months ended September 30, 2024, related to the allocation of COH expenses to other segments. The receiving segments record their allocation of COH expense within other operating expense. 94 Table of Contents Management’s Discussion and Analysis Ally Financial Inc. • Form 10-Q The following table summarizes total assets for Corporate and Other. ($ in millions) September 30, 2025 December 31, 2024 Cash and cash equivalents and securities $ 32,382 $ 32,599 Other investments 3,507 3,442 Mortgage finance receivables and loans, net 16,236 17,215 Credit card finance receivables and loans, net (a) — 1,975 Other (b) 4,669 4,519 Total assets $ 56,794 $ 59,750 (a) We closed the sale of Ally Credit Card on April 1, 2025. Refer to Note 2 to the Condensed Consolidated Financial Statements for additional information. (b) Primarily includes net deferred tax assets, net property and equipment, and goodwill. Refer to Note 11 to the Condensed Consolidated Financial Statements for additional information. The following table presents the scheduled remaining amortization of the original issue discount at September 30, 2025. Year ended December 31, ($ in millions) 2025 2026 2027 2028 2029 2030 and thereafter (a) Total Original issue discount Outstanding balance at year end $ 689 $ 607 $ 513 $ 406 $ 283 $ — Total amortization (b) 19 82 94 107 123 283 $ 708 (a) The maximum annual scheduled amortization for any individual year is $143 million in 2030. (b) The amortization is included as interest on long-term debt in the Condensed Consolidated Statement of Comprehensive Income. Corporate and Other incurred a loss from continuing operations before income tax benefit of $82 million and $979 million for the three months and nine months ended September 30, 2025, respectively, compared to $297 million and $1.1 billion for the three months and nine months ended September 30, 2024. The decrease in loss for the three months ended September 30, 2025, was primarily driven by higher net financing revenue, lower provision for credit losses, and lower noninterest expense. The decrease in loss for the nine months ended September 30, 2025, was primarily driven by lower provision for credit losses and higher net financing revenue, partially offset by lower total other revenue and higher noninterest expense. Total financing revenue and other interest income was $434 million and $1.4 billion for the three months and nine months ended September 30, 2025, respectively, compared to $646 million and $2.0 billion for the three months and nine months ended September 30, 2024. The decreases for the three months and nine months ended September 30, 2025, were primarily driven by lower average assets due to the sale of Ally Credit Card on April 1, 2025, lower income from our hedging activities, and the continued run-off of our consumer mortgage portfolio. Additionally, the decrease for the nine months ended September 30, 2025, was driven by lower average assets due to the sale of Ally Lending in the first quarter of 2024. Total interest expense decreased $325 million and $883 million for the three months and nine months ended September 30, 2025, respectively, compared to the three months and nine months ended September 30, 2024. Interest expense in our Corporate and Other segment includes our external borrowing costs less the amount charged to our operating segments, which is based on our FTP methodology. The decreases in interest expense for the three months and nine months ended September 30, 2025, were primarily driven by a lower interest rate environment when compared to the three months and nine months ended September 30, 2024, as well as the sale of Ally Credit Card. Total other revenue decreased $13 million and $482 million for the three months and nine months ended September 30, 2025, respectively, compared to the three months and nine months ended September 30, 2024. The decreases for the three months and nine months ended September 30, 2025, were driven by lower late charges and other administrative fees as a result of the sale of Ally Credit Card. Additionally, the decrease for the nine months ended September 30, 2025, was driven by a balance sheet repositioning of a portion of our available-for-sale securities during the first quarter of 2025. Refer to Note 7 to the Condensed Consolidated Financial Statements for additional information. The provision for credit losses decreased $58 million and $447 million for the three months and nine months ended September 30, 2025, respectively, compared to the three months and nine months ended September 30, 2024. The decrease in provision for credit losses for the three months ended September 30, 2025, was primarily driven by lower net charge-offs within our consumer other portfolio due to the sale of Ally Credit Card. The decrease in provision for credit losses for the nine months ended September 30, 2025, was driven by a provision benefit associated with the sale of Ally Credit Card. Refer to the Risk Management section of this MD&A for further discussion on our provision for credit losses. Noninterest expense decreased $57 million and increased $141 million for the three months and nine months ended September 30, 2025, respectively, compared to the three months and nine months ended September 30, 2024. The decrease for the three months ended September 30, 2025, was primarily driven by lower operating expenses as a result of the sale of Ally Credit Card. The increase for the nine 95 Table of Contents Management’s Discussion and Analysis Ally Financial Inc. • Form 10-Q months ended September 30, 2025, was primarily driven by the impairment of goodwill associated with the sale of Ally Credit Card, partially offset by lower operating expenses as a result of the sales of Ally Credit Card and Ally Lending, and lower compensation and benefits. Cash and Securities The following table summarizes the composition of the cash and securities portfolio at fair value for Corporate and Other. ($ in millions) September 30, 2025 December 31, 2024 Cash and cash equivalents Noninterest-bearing cash $ 327 $ 431 Interest-bearing cash 9,308 9,243 Total cash and cash equivalents 9,635 9,674 Equity securities — 1 Available-for-sale securities Debt securities U.S. Treasury and federal agencies 1,604 1,409 U.S. States and political subdivisions 236 256 Agency mortgage-backed residential 11,667 12,800 Agency mortgage-backed commercial 4,782 3,984 Asset-backed 25 129 Total available-for-sale securities (amortized cost of $20,997 and $22,536) 18,314 18,578 Held-to-maturity securities Debt securities Agency mortgage-backed residential 1,126 739 Mortgage-backed residential 3,308 3,465 Asset-backed retained notes 59 89 Total held-to-maturity securities (amortized cost of $4,433 and $4,346) 4,493 4,293 Total cash, cash equivalents, and securities $ 32,442 $ 32,546 Other Investments The following table summarizes other investments at carrying value for Corporate and Other. Refer to Note 1 to the Consolidated Financial Statements in our 2024 Annual Report on Form 10-K for further information on these investments. ($ in millions) September 30, 2025 December 31, 2024 Other assets Proportional amortization investments (a) $ 2,080 $ 2,131 Nonmarketable equity investments 792 730 Equity-method investments (b) 635 581 Total other investments $ 3,507 $ 3,442 (a) Proportional amortization investments includes qualifying LIHTC, NMTC, and HTC investments. (b) Primarily comprises 77 and 66 investments made in connection with our CRA program at September 30, 2025, and December 31, 2024, respectively. The carrying value of these investments was $626 million and $573 million at September 30, 2025, and December 31, 2024, respectively. Nonmarketable equity investments and equity-method investments include strategic investments made through Ally Ventures. Ally Ventures identifies, invests in, and builds relationships with key startups. At September 30, 2025, the carrying value of investments made through Ally Ventures was $34 million, comprising 18 investments, as compared to $36 million, comprising 19 investments at December 31, 2024. Refer to Note 11 to the Condensed Consolidated Financial Statements for additional information. 96 Table of Contents Management’s Discussion and Analysis Ally Financial Inc. • Form 10-Q Ally Invest Ally Invest is our digital brokerage and advisory offering, which enables us to complement our competitive deposit products with low-cost and commission-free investing. The following table presents trading days and average customer trades per day, the number of funded accounts, total net customer assets, and total customer cash balances as of the end of each of the last five quarters. September 30, 2025 June 30, 2025 March 31, 2025 December 31, 2024 September 30, 2024 Trading days (a) 63.5 62.0 60.0 63.0 63.5 Average customer trades per day, (in thousands) 26.6 26.6 30.6 29.3 26.9 Funded accounts (b) (in thousands) 534 532 533 532 532 Total net customer assets (b) ($ in millions) $ 21,049 $ 19,257 $ 17,130 $ 18,459 $ 17,466 Total customer cash balances (b) ($ in millions) $ 1,508 $ 1,476 $ 1,406 $ 1,436 $ 1,393 (a) Represents the number of days the NYSE and other U.S. stock exchange markets are open for trading. A half day represents a day when the U.S. markets close early. (b) Represents activity across the brokerage, robo and advisory portfolios. During the three months ended September 30, 2025, total funded accounts remained relatively flat from the prior quarter and from the third quarter of 2024. Average customer trades per day were flat from the prior quarter and decreased 1% from the third quarter of 2024, driven by evolving market conditions and customer engagement. Additionally, net customer assets increased 9% from the prior quarter and increased 21% from the third quarter of 2024, as a result of changes in equity market valuations. Mortgage Mortgage operations consist of our held-for-sale and held-for-investment consumer mortgage loan portfolios. Consumer mortgage originations ceased during the second quarter of 2025, which has and will continue to result in a gradual run-off of our consumer mortgage loan portfolio. The following table presents the net UPB, net UPB as a percentage of total, WAC, premium net of discounts, LTV, and FICO® Scores for the products in our consumer mortgage held-for-investment loan portfolio. Product Net UPB (a) ($ in millions) % of total net UPB WAC Net premium (discount) ($ in millions) Average refreshed LTV (b) (c) Average refreshed FICO® (d) September 30, 2025 Adjustable-rate $ 375 2 4.03 % $ 1 41.05 % 774 Fixed-rate 15,888 98 3.14 (11) 46.43 782 Total $ 16,263 100 3.16 $ (10) 46.30 782 December 31, 2024 Adjustable-rate $ 450 3 4.36 % $ 2 46.01 % 770 Fixed-rate 16,793 97 3.15 (10) 47.96 782 Total $ 17,243 100 3.18 $ (8) 47.91 782 (a) Represents UPB, net of charge-offs. (b) Updated home values were derived using a combination of appraisals, broker price opinions, automated valuation models, and metropolitan statistical area level house price indices. (c) Consists of only first-lien mortgages. (d) Updated to reflect changes in credit score since loan origination. Ally Credit Card On April 1, 2025, we closed the sale of Ally Credit Card. For further information, refer to Note 2 to the Condensed Consolidated Financial Statements. 97 Table of Contents Management’s Discussion and Analysis Ally Financial Inc. • Form 10-Q Risk Management Managing the risk/reward trade-off is a fundamental component of operating our businesses, and all employees are responsible for managing risk. We use multiple layers of defense to identify, monitor, and manage current and emerging risks. • Business lines — Responsible for owning and managing all the risks that emanate from their risk-taking activities, including business units and support functions. • Independent risk management — Operates independent of the business lines and is responsible for establishing and maintaining our risk-management framework and promulgating it enterprise-wide. Independent risk management also provides an objective, critical assessment of risks and — through oversight, effective challenge, and other means — evaluates whether Ally remains aligned with its risk appetite. • Internal audit — Provides its own independent assessments regarding the quality of our loan portfolios as well as the effectiveness of our risk management, internal controls, and governance. Internal audit includes Audit Services and the Loan Review Group. Our risk-management framework is overseen by the RC. The RC sets the risk appetite across our company while risk-oriented management committees, the executive leadership team, and our associates identify and monitor current and emerging risks and manage those risks within our risk appetite. Our primary types of risks include credit risk, insurance/underwriting risk, liquidity risk, market risk, business/strategic risk, reputation risk, operational risk, model risk, information technology/cybersecurity/data risk, compliance risk, and conduct risk. For more information on our risk management process, refer to the Risk Management MD&A section of our 2024 Annual Report on Form 10-K. In addition to the primary risks that we manage, climate-related risk has been identified as an emerging risk. Climate-related risk refers to the risk of loss or change in business activities arising from climate change and represents a transverse risk that could impact other risks within Ally’s risk-management framework, such as credit risk from negatively impacted borrowers, reputation risk from increased stakeholder concerns, and operational risk from physical climate risks. Refer to the section titled Climate-Related Risk within this section for more information. 98 Table of Contents Management’s Discussion and Analysis Ally Financial Inc. • Form 10-Q Loan and Operating Lease Exposure The following table summarizes the exposures from our loan and operating-lease activities based on our reportable operating segments. ($ in millions) September 30, 2025 December 31, 2024 Finance receivables and loans Automotive Finance (a) $ 106,778 $ 106,655 Insurance (b) 10 15 Corporate Finance 11,289 9,593 Corporate and Other (c) (d) 16,490 19,767 Total finance receivables and loans 134,567 136,030 Loans held-for-sale Automotive Finance 15 5 Corporate Finance 78 105 Corporate and Other 86 50 Total loans held-for-sale 179 160 Total on-balance-sheet loans 134,746 136,190 Off-balance-sheet securitized loans Automotive Finance 1,156 1,730 Whole-loan sales Automotive Finance 1,901 1,155 Corporate and Other (d) — 86 Total off-balance-sheet loans (e) 3,057 2,971 Operating lease assets Automotive Finance 8,599 7,991 Total operating lease assets 8,599 7,991 Total loan and operating lease exposure $ 146,402 $ 147,152 (a) Includes a liability of $51 million associated with fair value hedging adjustments at December 31, 2024. Refer to Note 19 to the Condensed Consolidated Financial Statements for additional information. (b) Represents insurance advance agreements with dealers that we administer through a noninsurance entity. These advances are included within our automotive commercial and industrial portfolio class. (c) Primarily includes our consumer mortgage portfolio at both September 30, 2025, and December 31, 2024. (d) Includes Credit Card. We closed the sale of Ally Credit Card on April 1, 2025. Refer to Note 2 to the Condensed Consolidated Financial Statements for additional information. (e) Represents the current unpaid principal balance of outstanding loans based on our customary representation and warranty provisions. The risks inherent in our loan and operating lease exposures are largely driven by changes in the overall economy (including GDP trends and inflationary pressures), used vehicle and housing prices, unemployment levels, real personal income, household savings, and their impact on our borrowers. The potential financial statement impact of these exposures varies depending on the accounting classification and future expected disposition strategy. We retain most of our consumer automotive loans as they complement our core business model, but we do sell loans from time to time on an opportunistic basis. We ultimately manage the associated risks based on the underlying economics of the exposure. Our operating lease residual risk may be more volatile than credit risk in stressed macroeconomic scenarios. While all operating leases are exposed to potential reductions in used vehicle values, only those where we take possession of the vehicle are affected by potential reductions in used vehicle values. Credit Risk Credit risk is defined as the risk of loss arising from an obligor not meeting its contractual obligations to us. Credit risk includes consumer credit risk, commercial credit risk, and counterparty credit risk. Credit risk is a major source of potential economic loss to us. Credit risk is monitored by the executive leadership team and our associates, and is regularly reported to and reviewed with the RC. Management oversees credit decisioning, account servicing activities, and credit-risk-management processes, and manages credit risk exposures within our risk appetite. In addition, our Loan Review Group provides an independent assessment of the quality of our credit portfolios and credit-risk-management practices and reports its findings to the RC on a regular basis. To mitigate risk, we have implemented specific policies and practices across business lines, utilizing both qualitative and quantitative analyses. This reflects our commitment to maintaining an independent and ongoing assessment of credit risk and credit quality. Our policies 99 Table of Contents Management’s Discussion and Analysis Ally Financial Inc. • Form 10-Q require an objective and timely assessment of the overall quality of the consumer and commercial loan and operating lease portfolios. This includes the identification of relevant trends that affect the collectability of the portfolios, microsegments of the portfolios that are potential problem areas, loans and operating leases with potential credit weaknesses, and the assessment of the adequacy of internal credit risk policies and procedures. Our consumer and commercial loan and operating lease portfolios are subject to periodic stress tests, which include economic scenarios whose severity mirrors those developed and distributed by the FRB to assess how the portfolios may perform in a severe economic downturn. In addition, we establish and maintain underwriting policies and limits across our portfolios and higher risk segments (for example, nonprime) based on our risk appetite. Another important aspect to managing credit risk involves the need to carefully monitor and manage the performance and pricing of our loan products with the aim of generating appropriate risk-adjusted returns. When considering pricing, various granular risk-based factors are considered such as expected loss rates, loss volatility, anticipated operating costs, and targeted returns on equity. We carefully monitor credit losses and trends in credit losses relative to expected credit losses at contract inception. We closely monitor our loan performance and profitability in light of forecasted economic conditions and manage credit risk and expectations of losses in the portfolio. We manage credit risk based on the risk profile of the borrower, the source of repayment, the underlying collateral, and current market and economic conditions. We monitor the credit risk profile of individual borrowers, various segmentations (for example, geographic region, product type, industry segment), as well as the aggregate portfolio. We perform quarterly analyses of the consumer automotive, consumer mortgage, consumer other, and commercial portfolios to assess the adequacy of the allowance for loan losses based on historical, current, and anticipated trends. Refer to Note 8 to the Condensed Consolidated Financial Statements for additional information. Additionally, we utilize numerous collection strategies to mitigate loss and provide ongoing support to customers in financial distress. We have enhanced our collection strategies to include customized messaging, digital communication, and proactive monitoring of vendor performance. We may offer several types of assistance to aid our customers based on their willingness and ability to repay their loan. As part of certain programs, we offer loan modifications to qualified borrowers, including payment extensions, interest rate concessions, and principal forgiveness. Furthermore, we manage our credit exposure to financial counterparties based on the risk profile of the counterparty. Within our policies we have established standards and requirements for managing counterparty risk exposures in a safe and sound manner. Counterparty credit risk is derived from multiple exposure types including derivatives, securities trading, securities financing transactions, lending arrangements, and certain cash balances. For more information on derivative counterparty credit risk, refer to Note 19 to the Condensed Consolidated Financial Statements. We employ an internal team of economists to enhance our planning and forecasting capabilities. This team conducts industry and market research, monitors economic risks, and helps support various forms of scenario planning. This group closely monitors macroeconomic trends, such as unemployment rate and sales of new light motor vehicles, given the nature of our business and the potential impacts on our exposure to risks. As of August 31, 2025, the unemployment rate increased to 4.3%. Sales of new light motor vehicles rose to an average annual rate of 16.4 million during July and August of 2025. Sales of new light motor vehicles remain below the pre-pandemic annual pace of 17.0 million in 2019, which has limited incoming used vehicle supply and supported used vehicle values. Additionally, used vehicle values may be impacted by availability, the price of new vehicles, or changes in customer preferences. However, macroeconomic risks remain elevated as a result of impacts from tariffs, inflation, consumer financial health, and geopolitical uncertainty. Consumer Credit Portfolio During the three months and nine months ended September 30, 2025, the credit performance of the consumer loan portfolio reflected our underwriting strategy to originate a diversified portfolio of consumer automotive loan assets, including new, used, prime and nonprime finance receivables and loans, and high-quality jumbo and LMI mortgage loans that were obtained through bulk loan purchases and direct-to-consumer mortgage originations. Consumer mortgage originations ceased during the second quarter of 2025, which has and will continue to result in a gradual run-off of our consumer mortgage loan portfolio. For the nine months ended September 30, 2025, the consumer loan portfolio also included revolving, unsecured loans through Ally Credit Card. We closed the sale of Ally Credit Card on April 1, 2025. For further information, refer to Note 2 to the Condensed Consolidated Financial Statements. The carrying value of our nonprime held-for-investment consumer automotive loans before allowance for loan losses represented approximately 9.8% and 9.7% of our total consumer automotive loans at September 30, 2025, and December 31, 2024, respectively. For information on our consumer credit risk practices and policies regarding delinquencies, nonperforming status, and charge-offs, refer to Note 1 to the Consolidated Financial Statements in our 2024 Annual Report on Form 10-K. 100 Table of Contents Management’s Discussion and Analysis Ally Financial Inc. • Form 10-Q The following table includes consumer finance receivables and loans recorded at amortized cost. Outstanding Nonperforming Accruing past due 90 days or more (a) ($ in millions) September 30, 2025 December 31, 2024 September 30, 2025 December 31, 2024 September 30, 2025 December 31, 2024 Consumer automotive (b) (c) $ 84,994 $ 83,757 $ 1,140 $ 1,231 $ — $ — Consumer mortgage 16,253 17,234 70 54 — — Consumer other (d) — 2,294 — 90 — — Total consumer finance receivables and loans $ 101,247 $ 103,285 $ 1,210 $ 1,375 $ — $ — (a) Loans are generally in nonaccrual status when principal or interest has been delinquent for 90 days or more, or when full collection is not expected. Refer to Note 1 to the Consolidated Financial Statements in our 2024 Annual Report on Form 10-K for additional information on our accounting policy for finance receivables and loans on nonaccrual status. (b) Certain finance receivables and loans are included in fair value hedging relationships. Refer to Note 19 to the Condensed Consolidated Financial Statements for additional information. (c) Includes outstanding CSG loans of $8.8 billion and $9.3 billion at September 30, 2025, and December 31, 2024, respectively, and RV loans of $299 million and $360 million at September 30, 2025, and December 31, 2024, respectively. (d) Consists of credit card finance receivables and loans. We closed the sale of Ally Credit Card on April 1, 2025. Refer to Note 2 to the Condensed Consolidated Financial Statements for additional information. Total consumer finance receivables and loans decreased $2.0 billion at September 30, 2025, compared with December 31, 2024. The decrease was primarily due to the sale of Ally Credit Card, which closed on April 1, 2025. Additionally, our consumer mortgage finance receivables and loans decreased $981 million, primarily due to portfolio runoff, as we ceased mortgage originations during the second quarter of 2025. The decrease was partially offset by an increase of $1.2 billion of consumer automotive finance receivables and loans, primarily due to loan originations outpacing portfolio paydown. Total consumer nonperforming finance receivables and loans at September 30, 2025, decreased $165 million to $1.2 billion from December 31, 2024. Refer to Note 8 to the Condensed Consolidated Financial Statements for additional information. Nonperforming consumer finance receivables and loans as a percentage of total outstanding consumer finance receivables and loans was 1.2% and 1.3% at September 30, 2025, and December 31, 2024, respectively. Consumer automotive loans 30 days or more past due decreased $408 million to $4.2 billion at September 30, 2025, as compared to December 31, 2024. During the nine months ended September 30, 2025, we observed a decline in delinquency trends within our consumer automotive portfolio, primarily driven by seasonality and improvements from changes made to our underwriting strategies. The following tables present consumer net charge-offs and write-downs from transfers to loans held-for-sale from finance receivables and loans at amortized cost and related ratios. Net charge-offs (recoveries) Write-downs from transfers to held-for-sale Total Net charge-off ratios (a) Combined ratios (b) Three months ended September 30, ($ in millions) 2025 2024 2025 2024 2025 2024 2025 2024 2025 2024 Consumer automotive $ 399 $ 467 $ — $ — $ 399 $ 467 1.9 % 2.2 % 1.9 % 2.2 % Consumer mortgage (3) (1) — — (3) (1) (0.1) — (0.1) — Consumer other (c) — 52 — — — 52 — 9.9 — 9.9 Total consumer finance receivables and loans $ 396 $ 518 $ — $ — $ 396 $ 518 1.6 2.0 1.6 2.0 (a) Net charge-off ratios are calculated as net charge-offs divided by average outstanding finance receivables and loans excluding loans measured at fair value and loans held-for-sale during the period for each loan category. (b) Net charge-off and write-downs from transfers to held-for-sale ratios are calculated as net charge-offs and write-downs from transfers to held-for-sale divided by average outstanding finance receivables and loans excluding loans measured at fair value and loans held-for-sale during the period for each loan category. (c) Consists of Credit Card. We closed the sale of Ally Credit Card on April 1, 2025. Refer to Note 2 to the Condensed Consolidated Financial Statements for additional information. 101 Table of Contents Management’s Discussion and Analysis Ally Financial Inc. • Form 10-Q Net charge-offs (recoveries) Write-downs from transfers to held-for-sale (a) Total Net charge-off ratios (b) Combined ratios (c) Nine months ended September 30, ($ in millions) 2025 2024 2025 2024 2025 2024 2025 2024 2025 2024 Consumer automotive $ 1,210 $ 1,322 $ — $ 5 $ 1,210 $ 1,327 1.9 % 2.1 % 1.9 % 2.1 % Consumer mortgage (4) (2) — — (4) (2) — — — — Consumer other (d) 63 176 — — 63 176 n/m 11.6 n/m 11.6 Total consumer finance receivables and loans $ 1,269 $ 1,496 $ — $ 5 $ 1,269 $ 1,501 1.7 1.9 1.7 1.9 n/m = not meaningful (a) Consumer automotive includes a $5 million reduction of allowance from the completion of a retail securitization transactions during the nine months ended September 30, 2024, resulting in the deconsolidation of the assets and liabilities from our Condensed Consolidated Balance Sheet. (b) Net charge-off ratios are calculated as net charge-offs divided by average outstanding finance receivables and loans excluding loans measured at fair value and loans held-for-sale during the period for each loan category. (c) Net charge-off and write-downs from transfers to held-for-sale ratios are calculated as net charge-offs and write-downs from transfers to held-for-sale divided by average outstanding finance receivables and loans excluding loans measured at fair value and loans held-for-sale during the period for each loan category. (d) Consists of Credit Card. We closed the sale of Ally Credit Card on April 1, 2025. Refer to Note 2 to the Condensed Consolidated Financial Statements for additional information. Our net charge-offs from total consumer finance receivables and loans were $396 million and $1.3 billion for the three months and nine months ended September 30, 2025, respectively, compared to $518 million and $1.5 billion for the three months and nine months ended September 30, 2024. The decreases for the three months and nine months ended September 30, 2025, were primarily driven by lower net charge-offs within our consumer automotive portfolio, reflecting our pricing and underwriting strategies, and stability in used vehicle prices. The decreases were also driven by lower net charge-offs within our consumer other portfolio due to the sale of Ally Credit Card, which closed on April 1, 2025. The following table summarizes total consumer loan originations for the periods shown. Total consumer loan originations include loans classified as finance receivables and loans held-for-sale during the period. Three months ended September 30, Nine months ended September 30, ($ in millions) 2025 2024 2025 2024 Consumer automotive (a) $ 10,605 $ 8,512 $ 30,354 $ 26,655 Consumer mortgage (b) (c) — 257 95 751 Total consumer loan originations $ 10,605 $ 8,769 $ 30,449 $ 27,406 (a) Includes loans purchased under forward flow agreements with automotive retailers, as well as $437 million and $1.0 billion of loans originated as held-for-sale for the three months and nine months ended September 30, 2025, respectively, and $79 million and $349 million for the three months and nine months ended September 30, 2024. (b) Excludes bulk loan purchases and includes $95 million of loans originated as held-for-sale for the nine months ended September 30, 2025, and $255 million and $702 million for the three months and nine months ended September 30, 2024, respectively. (c) Consumer mortgage originations ceased during the second quarter of 2025. Total consumer loan originations increased $1.8 billion and $3.0 billion for the three months and nine months ended September 30, 2025, respectively, as compared to the same periods in 2024, primarily due to higher originations within our consumer automotive loan portfolio as a result of higher industry new and used vehicle sales. The increases were partially offset by a decrease in consumer mortgage originations, as mortgage originations ceased during the second quarter of 2025. 102 Table of Contents Management’s Discussion and Analysis Ally Financial Inc. • Form 10-Q The following table shows the percentage of consumer finance receivables and loans by state concentration based on amortized cost. September 30, 2025 (a) December 31, 2024 Consumer automotive Consumer mortgage Consumer other (b) Consumer automotive Consumer mortgage Consumer other California 8.4 % 40.4 % — % 8.5 % 39.9 % 9.3 % Texas 13.5 7.1 — 13.5 7.2 7.8 Florida 9.2 6.1 — 9.3 6.2 9.1 North Carolina 4.8 1.8 — 4.6 1.9 3.0 Pennsylvania 4.5 2.1 — 4.5 2.1 4.1 Georgia 4.0 2.9 — 4.0 2.9 3.7 New York 4.0 1.8 — 3.8 1.9 5.4 New Jersey 3.3 2.5 — 3.3 2.5 3.5 Illinois 3.1 2.8 — 3.2 2.8 4.6 Ohio 3.3 0.4 — 3.3 0.4 4.5 Other United States 41.9 32.1 — 42.0 32.2 45.0 Total consumer loans 100.0 % 100.0 % — % 100.0 % 100.0 % 100.0 % (a) Presentation is in descending order as a percentage of total consumer finance receivables and loans at September 30, 2025. (b) We closed the sale of Ally Credit Card on April 1, 2025. Refer to Note 2 to the Condensed Consolidated Financial Statements for additional information. We monitor our consumer loan portfolio for concentration risk across the states in which we lend. The highest concentrations of consumer loans are in California and Texas, which represented an aggregate of 26.0% of our total outstanding consumer finance receivables and loans at both September 30, 2025, and December 31, 2024. Our consumer mortgage loan portfolio concentration within California, which is primarily composed of high-quality jumbo mortgage loans, generally aligns to the California share of jumbo mortgages nationally. Commercial Credit Portfolio For information on our commercial credit risk practices and policies regarding delinquencies, nonperforming status, and charge-offs, refer to Note 1 to the Consolidated Financial Statements in our 2024 Annual Report on Form 10-K. The following table includes total commercial finance receivables and loans reported at amortized cost. Outstanding Nonperforming Accruing past due 90 days or more (a) ($ in millions) September 30, 2025 December 31, 2024 September 30, 2025 December 31, 2024 September 30, 2025 December 31, 2024 Commercial Commercial and industrial Automotive $ 17,137 $ 18,259 $ 9 $ 15 $ — $ — Other (b) (c) 9,169 8,212 124 94 — — Commercial real estate 7,014 6,274 10 2 — — Total commercial finance receivables and loans $ 33,320 $ 32,745 $ 143 $ 111 $ — $ — (a) Loans are generally in nonaccrual status when principal or interest has been delinquent for 90 days or more, or when full collection is not expected. Refer to Note 1 to the Consolidated Financial Statements in our 2024 Annual Report on Form 10-K for additional information on our accounting policy for finance receivables and loans on nonaccrual status. (b) Other commercial and industrial primarily includes senior secured commercial lending largely associated with our Corporate Finance operations. (c) Includes PCD loans acquired during the nine months ended September 30, 2025. Total commercial finance receivables and loans outstanding increased $575 million from December 31, 2024, to $33.3 billion at September 30, 2025. Results were driven by a $1.7 billion increase in our Corporate Finance segment. This was partially offset by a $1.1 billion decrease in our Automotive Finance segment, primarily within the commercial and industrial receivables class, due to lower wholesale floorplan balances. Total commercial nonperforming finance receivables and loans were $143 million at September 30, 2025, reflecting an increase of $32 million compared to December 31, 2024. Nonperforming commercial finance receivables and loans as a percentage of outstanding commercial finance receivables and loans was 0.4% and 0.3% at September 30, 2025, and December 31, 2024, respectively. 103 Table of Contents Management’s Discussion and Analysis Ally Financial Inc. • Form 10-Q The following table includes total commercial net charge-offs from finance receivables and loans at amortized cost and related ratios. Three months ended September 30, Nine months ended September 30, Net charge-offs (recoveries) Net charge-off ratios (a) Net charge-offs (recoveries) Net charge-off ratios (a) ($ in millions) 2025 2024 2025 2024 2025 2024 2025 2024 Commercial Commercial and industrial Automotive $ — $ — — % — % $ — $ (3) — % — % Other (1) (1) — — (1) (2) — — Total commercial finance receivables and loans $ (1) $ (1) — — $ (1) $ (5) — — (a) Net charge-off ratios are calculated as net charge-offs divided by average outstanding finance receivables and loans excluding loans measured at fair value and loans held-for-sale during the period for each loan category. Commercial Real Estate The commercial real estate portfolio consists of finance receivables and loans issued primarily to automotive dealers. Commercial real estate finance receivables and loans was $7.0 billion and $6.3 billion at September 30, 2025, and December 31, 2024, respectively, which represented 5.2% and 4.6% of total outstanding finance receivables and loans at September 30, 2025, and December 31, 2024, respectively. There was $4.7 billion of commercial real estate loans included in the Automotive Finance segment at both September 30, 2025, and December 31, 2024, and $2.3 billion and $1.5 billion of commercial real estate loans included in the Corporate Finance segment at September 30, 2025, and December 31, 2024, respectively. As of both September 30, 2025, and December 31, 2024, we had no exposures related to commercial office buildings . The following table presents the percentage of total commercial real estate finance receivables and loans by state concentration based on amortized cost. September 30, 2025 December 31, 2024 Florida 17.6 % 16.0 % Texas 12.8 14.1 California 8.7 6.6 New York 7.5 5.4 Ohio 4.8 5.6 North Carolina 3.9 4.8 Michigan 3.8 4.1 Georgia 3.0 3.3 Illinois 2.5 2.6 Missouri 2.4 2.9 Other United States 33.0 34.6 Total commercial real estate finance receivables and loans 100.0 % 100.0 % Commercial Criticized Exposure Finance receivables and loans classified as special mention, substandard, or doubtful are reported as criticized. These classifications are based on regulatory definitions and generally represent finance receivables and loans within our portfolio that have a higher default risk or have already defaulted. These finance receivables and loans require additional monitoring and review including specific actions to mitigate our potential loss. Total criticized exposures decreased $665 million from December 31, 2024, to $2.8 billion at September 30, 2025. The decrease in total criticized exposures was primarily driven by a decrease in Special Mention loans within the commercial and industrial portfolio class of our Automotive Finance and Corporate Finance operations. Total criticized exposures were 8.3% and 10.5% of total commercial finance receivables and loans at September 30, 2025, and December 31, 2024, respectively, representing strong overall credit performance. 104 Table of Contents Management’s Discussion and Analysis Ally Financial Inc. • Form 10-Q The following table presents the percentage of total commercial criticized finance receivables and loans by industry concentration based on amortized cost. September 30, 2025 December 31, 2024 Industry Automotive 65.7 % 64.4 % Electronics 12.1 12.8 Services 9.8 9.0 Other 12.4 13.8 Total commercial criticized finance receivables and loans 100.0 % 100.0 % Repossessed and Foreclosed Assets We classify a repossessed or foreclosed asset as held-for-sale, which is included in other assets on our Condensed Consolidated Balance Sheet, when physical possession of the collateral is taken. We dispose of the acquired collateral in a timely fashion in accordance with regulatory requirements. For more information on repossessed and foreclosed assets, refer to Note 1 to the Consolidated Financial Statements in our 2024 Annual Report on Form 10-K. Repossessed consumer automotive loan assets in our Automotive Finance operations were $221 million and $207 million at September 30, 2025, and December 31, 2024, respectively, and foreclosed consumer mortgage assets were $1 million at both September 30, 2025, and December 31, 2024. Repossessed commercial automotive loan assets in our Automotive Finance operations were $1 million and $2 million at September 30, 2025, and December 31, 2024, respectively. Allowance for Loan Losses Our quantitatively determined allowance under CECL is impacted by certain forecasted economic factors as further described in Note 1 to the Consolidated Financial Statements in our 2024 Annual Report on Form 10-K. For example, our consumer automotive allowance for loan losses is most sensitive to state-level unemployment rates. Our process for determining the allowance for loan losses considers a borrower’s willingness and ability to pay and considers other factors, including loan modification programs. In addition to our quantitative allowance for loan losses, we also incorporate qualitative adjustments that may relate to idiosyncratic risks, climate-related events, changes in current economic conditions that may not be reflected in quantitatively derived results, and other macroeconomic uncertainty. We also monitor model performance, using model error and related assessments, and we may incorporate qualitative reserves to adjust our quantitatively determined allowance if we observe deterioration in model performance. Additionally, we perform a sensitivity analysis of our allowance utilizing varying macroeconomic scenarios, as described further within Critical Accounting Estimates — Allowance for Credit Losses within the MD&A of our 2024 Annual Report on Form 10-K. Through September 30, 2025, forecasted economic variables incorporated into our quantitative allowance processes were updated to include the current macroeconomic environment and our future expectations reflecting slow GDP growth in the near term. This included (but was not limited to) the following: the unemployment rate peaking at approximately 4.6% in the second quarter of 2026, before reverting to the historical mean of approximately 5.8% by the third quarter of 2028, deceleration of GDP growth as measured on a quarter-over-quarter seasonally adjusted annualized rate basis through the fourth quarter of 2025, followed by increases in GDP growth through the second quarter of 2026, before reverting to the historical mean of approximately 2.1% by the second quarter of 2028, and increases in new light vehicle sales on a seasonally adjusted annualized rate basis from more than 15 million units in the third quarter of 2025, to approximately 16 million units by the first quarter of 2027, before reverting to the historical mean of 15 million units by the third quarter of 2028. Additionally, we maintain a qualitative allowance framework to account for ongoing risks and volatility in the macroeconomic environment, including the impacts from tariffs, inflation, consumer financial health, and geopolitical uncertainty, that could adversely impact frequency of loss and LGD. Our overall allowance for loan losses increased $44 million from the prior quarter to $3.5 billion at September 30, 2025, representing 2.6% and 2.7% as a percentage of total finance receivables at September 30, 2025, and December 31, 2024, respectively. 105 Table of Contents Management’s Discussion and Analysis Ally Financial Inc. • Form 10-Q The following tables present an analysis of the activity in the allowance for loan losses on finance receivables and loans for the three months and nine months ended September 30, 2025, and 2024, respectively. Three months ended September 30, 2025 ($ in millions) Consumer automotive Consumer mortgage Total consumer Commercial Total Allowance at July 1, 2025 $ 3,166 $ 17 $ 3,183 $ 233 $ 3,416 Charge-offs (a) (662) — (662) — (662) Recoveries 263 3 266 1 267 Net charge-offs (399) 3 (396) 1 (395) Provision for credit losses Provision due to change in portfolio size 23 — 23 5 28 Provision due to incremental charge-offs 399 (3) 396 (1) 395 Provision due to all other factors (3) — (3) (5) (8) Total provision for credit losses 419 (3) 416 (1) 415 Other (b) — — — 24 24 Allowance at September 30, 2025 $ 3,186 $ 17 $ 3,203 $ 257 $ 3,460 Net charge-offs to average finance receivables and loans outstanding for the three months ended September 30, 2025 1.9 % (0.1) % 1.6 % — % 1.2 % Ratio of allowance for loan losses to annualized net charge-offs at September 30, 2025 2.0 (1.6) 2.0 (167.5) 2.2 (a) Refer to Note 1 to the Consolidated Financial Statements in our 2024 Annual Report on Form 10-K for information regarding our charge-off policies. (b) Commercial includes $24 million of allowance for loan losses recognized on PCD loans acquired during the three months ended September 30, 2025. Nine months ended September 30, 2025 ($ in millions) Consumer automotive Consumer mortgage Consumer other (a) Total consumer Commercial Total Allowance at January 1, 2025 $ 3,170 $ 19 $ 319 $ 3,508 $ 206 $ 3,714 Charge-offs (b) (1,937) (2) (68) (2,007) (2) (2,009) Recoveries 727 6 5 738 3 741 Net charge-offs (1,210) 4 (63) (1,269) 1 (1,268) Provision for credit losses Provision due to change in portfolio size 44 — — 44 16 60 Provision due to incremental charge-offs 1,210 (4) 63 1,269 (1) 1,268 Provision due to all other factors (28) — (320) (348) 10 (338) Total provision for credit losses 1,226 (4) (257) 965 25 990 Other (c) — (2) 1 (1) 25 24 Allowance at September 30, 2025 $ 3,186 $ 17 $ — $ 3,203 $ 257 $ 3,460 Net charge-offs to average finance receivables and loans outstanding for the nine months ended September 30, 2025 1.9 % — % n/m 1.7 % — % 1.3 % Ratio of allowance for loan losses to annualized net charge-offs at September 30, 2025 2.0 (3.6) — 1.9 (169.5) 2.0 n/m = not meaningful (a) Consists of Credit Card. We closed the sale of Ally Credit Card on April 1, 2025. Refer to Note 2 to the Condensed Consolidated Financial Statements for additional information. (b) Refer to Note 1 to the Consolidated Financial Statements in our 2024 Annual Report on Form 10-K for information regarding our charge-off policies. (c) Commercial includes $24 million of allowance for loan losses recognized on PCD loans acquired during the nine months ended September 30, 2025. 106 Table of Contents Management’s Discussion and Analysis Ally Financial Inc. • Form 10-Q Three months ended September 30, 2024 ($ in millions) Consumer automotive Consumer mortgage Consumer other (a) Total consumer Commercial Total Allowance at July 1, 2024 $ 3,055 $ 19 $ 302 $ 3,376 $ 196 $ 3,572 Charge-offs (b) (683) — (61) (744) — (744) Recoveries 216 1 9 226 1 227 Net charge-offs (467) 1 (52) (518) 1 (517) Provision for credit losses Provision due to change in portfolio size (11) (1) 18 6 5 11 Provision due to incremental charge-offs 467 (1) 52 518 (1) 517 Provision due to all other factors 122 (1) (12) 109 8 117 Total provision for credit losses 578 (3) 58 633 12 645 Other — 2 (1) 1 (1) — Allowance at September 30, 2024 $ 3,166 $ 19 $ 307 $ 3,492 $ 208 $ 3,700 Net charge-offs to average finance receivables and loans outstanding for the three months ended September 30, 2024 2.2 % — % 9.9 % 2.0 % — % 1.5 % Ratio of allowance for loan losses to annualized net charge-offs at September 30, 2024 1.7 (2.9) 1.5 1.7 (41.9) 1.8 (a) Consists of Credit Card. We closed the sale of Ally Credit Card on April 1, 2025. Refer to Note 2 to the Condensed Consolidated Financial Statements for additional information. (b) Refer to Note 1 to the Consolidated Financial Statements in our 2024 Annual Report on Form 10-K for information regarding our charge-off policies. Nine months ended September 30, 2024 ($ in millions) Consumer automotive Consumer mortgage Consumer other (a) Total consumer Commercial Total Allowance at January 1, 2024 $ 3,083 $ 21 $ 293 $ 3,397 $ 190 $ 3,587 Charge-offs (b) (1,976) (1) (199) (2,176) (2) (2,178) Recoveries 654 3 23 680 7 687 Net charge-offs (1,322) 2 (176) (1,496) 5 (1,491) Write-downs from transfers to held-for-sale (c) (5) — — (5) — (5) Provision for credit losses Provision due to change in portfolio size 3 (2) 27 28 (4) 24 Provision due to incremental charge-offs 1,322 (2) 176 1,496 (5) 1,491 Provision due to all other factors 85 (2) (12) 71 23 94 Total provision for credit losses 1,410 (6) 191 1,595 14 1,609 Other — 2 (1) 1 (1) — Allowance at September 30, 2024 $ 3,166 $ 19 $ 307 $ 3,492 $ 208 $ 3,700 Net charge-offs to average finance receivables and loans outstanding for the nine months ended September 30, 2024 2.1 % — % 11.6 % 1.9 % — % 1.4 % Net charge-offs and write-downs from transfers to held-for-sale to average finance receivables and loans outstanding for the nine months ended September 30, 2024 2.1 % — % 11.6 % 1.9 % — % 1.4 % Ratio of allowance for loan losses to annualized net charge-offs at September 30, 2024 1.8 (5.2) 1.3 1.8 (29.7) 1.9 Ratio of allowance for loan losses to annualized net charge-offs and write-downs from transfers to held-for-sale at September 30, 2024 1.8 (5.2) 1.3 1.7 (29.7) 1.9 (a) Consists of Credit Card. We closed the sale of Ally Credit Card on April 1, 2025. Refer to Note 2 to the Condensed Consolidated Financial Statements for additional information. (b) Refer to Note 1 to the Consolidated Financial Statements in our 2024 Annual Report on Form 10-K for information regarding our charge-off policies. (c) Consumer automotive includes a $5 million reduction of allowance from the completion of a retail securitization transaction during the nine months ended September 30, 2024, resulting in the deconsolidation of the assets and liabilities from our Condensed Consolidated Balance Sheet. 107 Table of Contents Management’s Discussion and Analysis Ally Financial Inc. • Form 10-Q Consumer automotive Consumer mortgage Consumer other (a) Total consumer Commercial Total September 30, 2025 Allowance for loan losses to finance receivables and loans outstanding (b) 3.7 % 0.1 % — % 3.2 % 0.8 % 2.6 % Allowance for loan losses to total nonperforming finance receivables and loans (b) 279.5 % 23.4 % — % 264.7 % 180.2 % 255.8 % Nonaccrual loans to finance receivables and loans outstanding 1.3 % 0.4 % — % 1.2 % 0.4 % 1.0 % September 30, 2024 Allowance for loan losses to finance receivables and loans outstanding (b) 3.8 % 0.1 % 14.1 % 3.4 % 0.6 % 2.7 % Allowance for loan losses to total nonperforming finance receivables and loans (b) 262.9 % 40.6 % 364.1 % 261.6 % 133.2 % 248.4 % Nonaccrual loans to finance receivables and loans outstanding 1.4 % 0.3 % 3.9 % 1.3 % 0.5 % 1.1 % (a) Consists of Credit Card. We closed the sale of Ally Credit Card on April 1, 2025. Refer to Note 2 to the Condensed Consolidated Financial Statements for additional information. (b) Coverage percentages are based on the allowance for loan losses related to finance receivables and loans excluding those loans held at fair value as a percentage of the amortized cost. The allowance for consumer loan losses as of September 30, 2025, decreased $289 million compared to September 30, 2024, reflecting a decrease of $307 million in the consumer other allowance, partially offset by an increase of $20 million in the consumer automotive allowance. The decrease in the allowance for consumer loan losses was primarily driven by the sale of the Ally Credit Card on April 1, 2025. The decrease was partially offset by an increase of $20 million in the consumer automotive allowance, primarily driven by portfolio growth. The allowance for commercial loan losses as of September 30, 2025, increased $49 million compared to September 30, 2024. The increase was primarily driven by increased specific reserve activity in our Corporate Finance operations. Provision for Loan Losses The following table summarizes the provision for loan losses by loan portfolio class. Three months ended September 30, Nine months ended September 30, ($ in millions) 2025 2024 2025 2024 Consumer automotive $ 419 $ 578 $ 1,226 $ 1,410 Consumer mortgage (3) (3) (4) (6) Consumer other (a) — 58 (257) 191 Total consumer 416 633 965 1,595 Commercial Commercial and industrial Automotive (8) 1 3 (1) Other 2 9 10 11 Commercial real estate 5 2 12 4 Total commercial (1) 12 25 14 Total provision for loan losses $ 415 $ 645 $ 990 $ 1,609 (a) Consists of Credit Card. We closed the sale of Ally Credit Card on April 1, 2025. Refer to Note 2 to the Condensed Consolidated Financial Statements for additional information. The provision for consumer credit losses decreased $217 million and $630 million for the three months and nine months ended September 30, 2025, respectively, compared to the three months and nine months ended September 30, 2024. The decreases in provision for consumer credit losses for the three months and nine months ended September 30, 2025, were primarily driven by lower net charge-offs within our consumer other portfolio, as a result of the sale of Ally Credit Card on April 1, 2025, and lower net charge-offs within our consumer automotive portfolio. Additionally, for the nine months ended September 30, 2025, the decrease in provision for consumer credit losses was also primarily driven by a provision benefit associated with the sale of Ally Credit Card. The provision for commercial credit losses decreased $13 million for the three months ended September 30, 2025, and increased $11 million for the nine months ended September 30, 2025, respectively, compared to the three months and nine months ended September 30, 108 Table of Contents Management’s Discussion and Analysis Ally Financial Inc. • Form 10-Q 2024. The decrease for the three months ended September 30, 2025, was primarily driven by a decrease in specific reserves in our commercial automotive portfolio and lower portfolio growth in our Corporate Finance operations as compared to the three months ended September 30, 2024. The increase for the nine months ended September 30, 2025, was primarily driven by an increase in portfolio growth in our Corporate Finance operations as compared to the same period in 2024. Allowance for Loan Losses by Type The following table summarizes the allocation of the allowance for loan losses by loan portfolio class. 2025 2024 September 30, ($ in millions) Allowance for loan losses Allowance as a % of loans outstanding Allowance as a % of total allowance for loan losses Allowance for loan losses Allowance as a % of loans outstanding Allowance as a % of total allowance for loan losses Consumer automotive $ 3,186 3.7 92.1 $ 3,166 3.8 85.6 Consumer mortgage 17 0.1 0.5 19 0.1 0.5 Consumer other (a) — — — 307 14.1 8.3 Total consumer loans 3,203 3.2 92.6 3,492 3.4 94.4 Commercial Commercial and industrial Automotive 21 0.1 0.6 17 0.1 0.5 Other 186 2.0 5.4 154 1.8 4.1 Commercial real estate 50 0.7 1.4 37 0.6 1.0 Total commercial loans 257 0.8 7.4 208 0.6 5.6 Total allowance for loan losses $ 3,460 2.6 100.0 $ 3,700 2.7 100.0 (a) Represents the allowance for loan losses on credit card finance receivables and loans. We closed the sale of Ally Credit Card on April 1, 2025. Refer to Note 2 to the Condensed Consolidated Financial Statements for additional information. Market Risk Our financing, investing, and insurance activities give rise to market risk, or the potential change in the value of our assets (including securities, assets held for sale, loans, and operating leases) and liabilities (including deposits and debt) due to movements in market variables, such as interest rates, spreads, foreign-exchange rates, equity prices, off-lease vehicle prices, and other components such as liquidity. The impact of changes in benchmark interest rates on our balance sheet represents an exposure to market risk and can affect our expected earnings. We primarily use interest rate derivatives to manage our interest rate risk exposure. During the third quarter of 2025, the Federal Reserve lowered the federal funds target range to 4.00–4.25%, and subsequently lowered to 3.75–4.00% during the fourth quarter of 2025, in response to a weakening labor market. Continued high benchmark interest rates led to pricing impacts across the balance sheet. Refer to the section below titled Net Financing Revenue Sensitivity Analysis for additional information on how future rate changes may impact net financing revenue. The fair value of our spread-sensitive assets is also exposed to spread risk. Spread is the amount of additional return over the benchmark interest rates that an investor would demand for taking exposure to primarily credit and liquidity risk of an instrument. Generally, an increase in spreads would result in a decrease in fair value measurement. We are also exposed to marginal foreign-currency risk primarily from Canadian denominated assets and liabilities. We enter into foreign currency hedges to mitigate foreign exchange risk. We have exposure to changes in the value of equity securities with readily determinable fair values primarily related to our Insurance operations. For such equity securities, we use equity derivatives to manage our exposure to equity price fluctuations. As part of our CRA program, we make investments in small business investment company funds, community and workforce development funds, tax credit funds, and other CRA-eligible funds that do not qualify as proportional amortization investments. Many of these CRA funds feature private equity or venture capital structures and are accounted for using the equity method of accounting. We recognize our share of the investee’s earnings based on the performance of the funds. We recognized gains of $12 million and $31 million related to these investments during the three months and nine months ended September 30, 2025, respectively, as compared to a $2 million gain and a $9 million loss during the same periods in 2024. The gains for the three months and nine months ended September 30, 2025, were primarily due to the underlying performance of several investments in venture capital firms. There were no indications of impairment within our portfolio of CRA-eligible funds as of September 30, 2025. In addition, we are exposed to changes in the value of other nonmarketable equity investments without readily determinable fair market values, which may cause volatility in our earnings. 109 Table of Contents Management’s Discussion and Analysis Ally Financial Inc. • Form 10-Q As of September 30, 2025, we had $3.0 billion of cumulative net unrealized losses, inclusive of tax effects, on our debt securities. During the three months and nine months ended September 30, 2025, we recorded $254 million and $538 million of net unrealized gains, inclusive of tax effects, on our available-for-sale securities, respectively. Unrealized gains and losses are recorded in other comprehensive income within our Condensed Consolidated Statement of Comprehensive Income, and are generally not realized unless we sell the securities prior to their stated maturity date. Refer to Note 16 to the Condensed Consolidated Financial Statements for additional information. In the first quarter of 2025, we executed a balance sheet repositioning of a portion of our available-for-sale securities as a result of our capital allocation planning related to the sale of Ally Credit Card. In connection with the repositioning, we sold lower-yielding securities with an amortized cost of approximately $4.6 billion for proceeds of $4.1 billion, resulting in a pre-tax loss of $495 million during the nine months ended September 30, 2025. We reinvested the proceeds in shorter duration, highly liquid securities at current market rates. For the nine months ended September 30, 2025, management determined that there were no expected credit losses for available-for-sale or held-to-maturity securities in an unrealized loss position. Refer to Note 7 to the Condensed Consolidated Financial Statements for additional information. In the second quarter of 2025, we repositioned pay-fixed interest rate swaps with a notional of approximately $4.7 billion to reduce our exposure to potential aggressive near-term Federal Reserve easing of benchmark interest rates and reduce potential exposure to higher for longer interest rates. The composition of our balance sheet, including shorter-duration fixed-rate consumer automotive loans and variable-rate commercial loans, along with our primary funding source of retail deposits, partially mitigates market risk. Additionally, we maintain risk-management controls that measure and monitor market risk using a variety of analytical techniques including market value and sensitivity analysis. Refer to Note 19 to the Condensed Consolidated Financial Statements for additional information. For information regarding our insured and uninsured deposit liabilities, refer to the Liquidity Management, Funding, and Regulatory Capital section of this MD&A . Net Financing Revenue Sensitivity Analysis Interest rate risk represents one of our most significant exposures to market risk. We actively monitor the level of exposure to movements in interest rates and take actions to mitigate adverse impacts these movements may have on future earnings. We use a sensitivity analysis of net financing revenue as our primary metric to measure and manage the interest rate risk of our financial instruments. In addition to net financing revenue sensitivities, EVE is used as a long-term interest rate risk measurement tool and a component of our interest rate risk management framework. EVE measures the present value of aggregate lifetime cash flows based on balance sheet and off-balance sheet positions at a specific point-in-time. We determine EVE sensitivities using a multitude of rate scenarios where the present value of future cash flows is recalculated using shocked interest rates. Interest rate risk metrics are reported at each regularly scheduled meeting of the ALCO and of the RC. Reporting includes exposure relative to risk limits, impacts to a range of rate scenarios, and sensitivity tests of key assumptions. The execution of our current business strategy generally results in shorter-duration, fixed-rate consumer automotive loans comprising the majority of our assets and liquid, floating-rate retail deposits comprising the majority of our liabilities. This, in turn, results in a structurally liability sensitive balance sheet as our floating-rate retail deposits reprice faster than our fixed-rate consumer automotive loans when interest rates change. We prepare forward-looking baseline forecasts of pretax net financing revenue as well as anticipated future business growth, actions to alter our asset/liability positioning, and interest rates based on the implied forward curve. The analysis is highly dependent upon a variety of assumptions, one of the most significant being the repricing characteristics of retail deposits with both contractual and non-contractual maturities. We monitor industry and competitive repricing activity along with other business and market factors when developing deposit pricing assumptions. Modeled simulations are then used to assess changes in pretax net financing revenue in multiple interest rate scenarios relative to the baseline forecast. The changes in net financing revenue relative to the baseline are defined as the sensitivity. Our simulations incorporate contractual cash flows and assumed repricing characteristics for assets, liabilities, and off-balance sheet exposures and incorporate the assumed effects of changing interest rates on the prepayment and attrition rates of certain assets and liabilities. Our simulations do not assume any specific future actions are taken to mitigate the impacts of changing interest rates. These simulations measure the potential changes in our pretax net financing revenue over the following 12 months. We test a number of alternative rate scenarios, including immediate and gradual parallel shocks to the implied forward curve. We also evaluate nonparallel shocks to interest rates and stresses to certain term points on the yield curve in isolation to capture and monitor a variety of risks. Simulation results are driven by underlying models and assumptions that are based on trend behavior and other historical information. The underlying models and assumptions, including retail deposit pricing, are regularly monitored and evaluated, and may be updated accordingly as observed trends materialize. For example, we updated our retail deposit pricing assumptions throughout 2024, which generally increased the liability sensitivity of our balance sheet as retail deposits are assumed to reprice faster in a rising rate scenario than in a decreasing rate scenario. As a result, if future trends or behaviors deviate from those reflected in the models, actual sensitivities may vary—perhaps significantly—from those that are modeled. Actual sensitivities may differ for other reasons as well, including unplanned changes in balance sheet composition, timing of asset and liability repricing, the yield curve, customer behavior, macroeconomic conditions, the competitive environment, and management strategies. Accordingly, we do not treat the sensitivities as forecasts of net financing revenue but instead use them as a tool in managing interest rate risk. We also assess Ally’s sensitivity to interest rate risk through the performance of sensitivity testing of key assumptions including, but not limited to, prepayments and retail automotive and deposit repricing on a routine basis. 110 Table of Contents Management’s Discussion and Analysis Ally Financial Inc. • Form 10-Q In a stable rate scenario that assumes spot rates as of September 30, 2025, remain constant through the simulation and assumes no pricing actions, net financing revenue over the next 12 months is expected to decrease by $95 million versus the baseline forecast, due to the shape of the implied forward curve. The following table presents the pretax dollar impact to baseline forecasted net financing revenue over the next 12 months assuming various parallel shocks to the implied forward curve as of September 30, 2025, and December 31, 2024. September 30, 2025 December 31, 2024 Gradual (a) Instantaneous Gradual (a) Instantaneous Change in interest rates ($ in millions) ($ in millions) +200 basis points $ 3 $ (256) $ 28 $ (184) +100 basis points 3 (121) 14 (86) -100 basis points (13) 24 (23) 4 (a) Gradual changes in interest rates are recognized over 12 months. Since December 31, 2024, the implied forward curve has steepened, driven by the front end, as expected declines in the Federal Funds Rate increased. During the nine months ended September 30, 2025, the sale of Ally Credit Card reduced our floating-rate asset balances, which was partially offset by an increase in floating-rate commercial loans. Additionally, we saw a shift from CDs to liquid deposits. The impact of these changes is reflected in our baseline net financing revenue forecast. As of September 30, 2025, our balance sheet is modestly asset sensitive in the near term due to our floating-rate assets and pay-fixed hedge position. However, our balance sheet remains liability sensitive over the medium term, driven by the assumed repricing of our deposits and market-based funding outpacing the assumed repricing of our floating-rate assets and pay-fixed swaps. Our interest rate risk position is influenced by the impact of hedging activity, which primarily consists of interest rate swaps designated as fair value hedges of certain fixed-rate assets and fixed-rate debt instruments. Additionally, we use interest rate floor contracts designated as cash flow hedges on certain floating-rate assets. The size, maturity, and mix of our hedging activities are adjusted as our balance sheet, ALM objectives, and the interest rate environment evolve over time. Operating Lease Residual Risk Management We are exposed to residual risk on vehicles in the consumer operating lease portfolio. This operating lease residual risk represents the possibility that the actual proceeds realized upon the sale of returned vehicles will be lower than the projection of these values used in establishing the pricing at lease inception. Our operating lease portfolio, net of accumulated depreciation was $8.6 billion and $8.0 billion as of September 30, 2025, and December 31, 2024, respectively. The expected lease residual value of our operating lease portfolio at scheduled termination was $6.9 billion and $6.5 billion as of September 30, 2025, and December 31, 2024, respectively. Certain of our operating leases are covered by residual guarantees with counterparties, which partially mitigates the residual value risk to the extent the counterparties are able to meet the terms of the contractual agreements. As of September 30, 2025, and December 31, 2024, consumer operating leases with a carrying value, net of accumulated depreciation, of $3.5 billion and $1.9 billion, respectively, were covered by OEM residual value guarantees. Refer to Note 9 to the Condensed Consolidated Financial Statements for further information. For information on our valuation of automotive operating lease residuals including periodic revisions through adjustments to depreciation expense based on current and forecasted market conditions, refer to the section titled Critical Accounting Estimates — Valuation of Automotive Operating Lease Assets and Residuals within the MD&A of our 2024 Annual Report on Form 10-K. Operating Lease Vehicle Terminations and Remarketing The following table summarizes the volume of operating lease terminations and average gain per vehicle, as well as our methods of vehicle sales at lease termination, stated as a percentage of total operating lease vehicle disposals. Three months ended September 30, Nine months ended September 30, 2025 2024 2025 2024 Off-lease vehicles terminated (in units) 21,608 31,033 69,853 104,560 Average gain (loss) per vehicle ($ per unit) $ 53 $ 771 $ (249) $ 1,231 Method of vehicle sales Sale to dealer, lessee, and other 47 % 52 % 45 % 55 % Auction Internet 45 36 44 35 Physical 8 12 11 10 We recognized an average gain per vehicle of $53 and an average loss per vehicle of $249 for the three months and nine months ended September 30, 2025, respectively, compared to an average gain per vehicle of $771 and $1,231 for the same periods in 2024. The decreases in 111 Table of Contents Management’s Discussion and Analysis Ally Financial Inc. • Form 10-Q remarketing performance during the three months and nine months ended September 30, 2025, as compared to the same periods in 2024, were primarily due to lower auction prices on the sale of specific vehicle models. The method of vehicle sales is largely dependent on the level of used vehicle values at lease termination compared to contractual residual values at lease inception. Off-lease vehicles sold to lessees and dealers decreased 10% and 18% for the three months and nine months ended September 30, 2025, as compared to the same periods in 2024. Operating Lease Portfolio Mix We monitor concentrations of our consumer operating lease portfolio by OEM, vehicle type, and OEM residual value guarantee status. The following table presents the concentration of our outstanding operating leases exposures by OEM, disaggregated by those with and without OEM residual value guarantees. September 30, 2025 2024 Operating lease exposures with OEM residual value guarantees (a) 41 % 16 % Operating lease exposures without OEM residual value guarantees Stellantis 38 66 GM 13 7 Other OEMs 8 11 Total exposures without OEM residual value guarantees 59 84 Total operating lease exposures 100 % 100 % (a) Primarily represents an exposure with one automotive manufacturer at both September 30, 2025, and 2024. As of September 30, 2025, and December 31, 2024, $4.4 billion and $3.0 billion of our investment in operating leases, net of accumulated depreciation, were battery-electric or plug-in hybrid vehicles, respectively. Substantially all of our investment in operating leases of battery-electric vehicles are covered by an OEM residual value guarantee of approximately 50% of the vehicles’ contract residual value. Refer to Note 9 to the Condensed Consolidated Financial Statements for more information regarding our investment in operating leases. September 30, 2025 2024 Sport utility vehicle 66 % 70 % Car 23 10 Truck 11 20 Climate-Related Risk We have identified and defined climate-related risk as an emerging risk. Pursuant to our risk-management framework, emerging risks include those that are newly-identified or evolving and have the potential to significantly impact Ally, but their nature and magnitude may not yet be fully known or may be rapidly changing. Refer to the section titled Risk Factors in Part I, Item 1A of our 2024 Annual Report on Form 10-K for information on climate-related risks. Climate-related risk is generally categorized into two major categories: (1) risk related to the transition to a lower-carbon economy (transition risk) and (2) risk related to the physical impacts of climate change (physical risk). Transition risk considers how changes in policy, technology, and market preference could pose operational, financial, and reputational risk to companies. Physical risk from climate change can be acute or chronic. Acute physical risk refers to risks that are event-driven such as increased severity of extreme climate events, including tornadoes, hurricanes, or floods. Chronic physical risks refer to long-term shifts in climate patterns, such as sustained higher temperatures, that may, for example, cause sea levels to rise. We recognize (1) the importance of understanding, preparing for and taking timely preventive action against potentially material climate-change impacts, (2) investor demand for consistent and comparable climate and environmental risk data, and (3) shifting federal and state policy focus and an increase in regulatory discussion about potential requirements and oversight. Ally is committed to developing an appropriate climate risk mitigation strategy focusing on the enhancement of our climate risk management capabilities and embedding climate risk considerations into the existing ERM framework to effectively manage climate-related financial and non-financial risks consistent with regulatory guidelines and industry best practices. 112 Table of Contents Management’s Discussion and Analysis Ally Financial Inc. • Form 10-Q Liquidity Management, Funding, and Regulatory Capital Overview The purpose of liquidity management is to enable us to meet loan and operating lease demand, debt maturities, deposit withdrawals, and other cash commitments under both normal operating conditions as well as periods of economic or financial stress. Our primary objective is to maintain cost-effective, stable and diverse sources of funding capable of sustaining the organization throughout all market cycles. Sources of funding include both retail and brokered deposits and secured and unsecured market-based funding across various maturity, interest rate, and investor profiles. Additional liquidity is available through a pool of unencumbered highly liquid securities, repurchase agreements, advances from the FHLB of Pittsburgh, the FRB Standing Repo Facility, and the FRB Discount Window. We define liquidity risk as the risk that an institution’s financial condition or overall safety and soundness is adversely affected by the actual or perceived inability to liquidate assets or obtain adequate funding or to easily unwind or offset specific exposures without significantly lowering market prices because of inadequate market depth or market disruptions. Liquidity risk can arise from a variety of institution-specific or market-related events that could have a negative impact on cash flows available to the organization. Effective management of liquidity risk positions an organization to meet cash flow obligations caused by unanticipated events. Managing liquidity needs and contingent funding exposures has proven essential to the solvency of financial institutions. The ALCO, chaired by the Corporate Treasurer, is responsible for overseeing our funding and liquidity strategies. Corporate Treasury is responsible for managing our liquidity positions within limits approved by ALCO, the ERMC, and the RC. As part of managing liquidity risk, Corporate Treasury prepares monthly forecasts depicting anticipated funding needs and sources of funds, executes our funding strategies, and manages liquidity under normal as well as more severely stressed macroeconomic environments. Oversight and monitoring of liquidity risk are provided by Independent Risk Management. The monthly liquidity forecasts demonstrate our ability to generate and obtain adequate amounts of cash to meet loan and operating lease demand, debt maturities, deposit withdrawals, and other cash commitments under normal operating conditions throughout the forecast horizon (currently through December 2028). Refer to Note 13 to the Condensed Consolidated Financial Statements for a summary of the scheduled maturity of long-term debt as of September 30, 2025. In recent years, we have become less reliant on market-based funding, reducing our exposure to disruptions in wholesale funding markets. Funding Strategy Liquidity and ongoing profitability are largely dependent on the timely and cost-effective access to retail deposits and funding in various segments of the capital markets. We focus on maintaining diversified funding sources across a broad base of depositors, lenders, and investors to meet liquidity needs throughout different economic cycles, including periods of financial distress. These funding sources include retail and brokered deposits, public and private asset-backed securitizations, unsecured debt, FHLB advances, and repurchase agreements. Our access to diversified funding sources enhances funding flexibility and results in a more cost-effective funding strategy over the long term. We evaluate funding markets on an ongoing basis to achieve an appropriate balance of unsecured and secured funding sources and maturity profiles. We manage our funding to achieve a well-balanced portfolio across a spectrum of risk, maturity, and cost-of-funds characteristics. Optimizing funding at Ally Bank continues to be a key part of our long-term liquidity strategy. We optimize our funding sources at Ally Bank by prioritizing retail deposits, and maintaining access to diversified funding sources. Retail deposits are complemented by brokered deposits, repurchase agreements, securitizations, and access to FHLB funding. Assets are primarily originated by Ally Bank to reduce parent company exposures and funding requirements, and to utilize consumer deposit-taking capabilities. This allows us to use bank funding for substantially all our automotive finance and other assets and to provide a sustainable long-term funding channel for the business, while also improving the cost of funds for the enterprise. Liquidity Risk Management Multiple metrics are used to measure liquidity risk, manage the liquidity position, identify related trends, and monitor these trends and metrics against established limits. These metrics include comprehensive stress tests that measure the sufficiency of the liquidity portfolio over stressed horizons ranging from overnight to 12 months, a stability ratio that measures longer-term structural liquidity, and concentration ratios that enable prudent funding diversification. In addition, we have established internal management routines designed to review all aspects of liquidity and funding plans, evaluate the adequacy of liquidity buffers, review stress testing results, and assist management in the execution of its funding strategy and risk-management accountabilities. Our liquidity stress testing is designed to allow us to operate our businesses and to meet our contractual and contingent obligations, including unsecured debt maturities, for at least 12 months, assuming our normal access to funding is disrupted by severe market-wide and enterprise-specific events. We maintain available liquidity in the form of cash, unencumbered highly liquid securities, available FHLB capacity, and the FRB Discount Window capacity. This available liquidity is held at various legal entities and is subject to regulatory restrictions and tax implications that may limit our ability to transfer funds across entities. 113 Table of Contents Management’s Discussion and Analysis Ally Financial Inc. • Form 10-Q The following table summarizes our total available liquidity. ($ in millions) September 30, 2025 December 31, 2024 Liquid cash and equivalents (a) $ 9,536 $ 9,561 FHLB unused pledged borrowing capacity (b) 10,265 12,211 Unencumbered highly liquid securities (c) 19,916 19,950 FRB Discount Window pledged capacity (d) 26,927 26,734 Total available liquidity $ 66,644 $ 68,456 (a) Excludes restricted cash and foreign currency cash balances. (b) Pledged assets are primarily composed of consumer mortgage finance receivables and loans, as well as real-estate-backed loans within our Automotive Finance and Corporate Finance businesses, and non-agency mortgage-backed securities. (c) Includes unencumbered U.S. federal government, U.S. agency, and highly liquid corporate debt securities. (d) Pledged assets are composed of consumer automotive finance receivables and loans. Refer to Note 13 to the Condensed Consolidated Financial Statements for information on assets pledged to the FRB. Recent Funding and Liquidity Developments Key funding highlights from January 1, 2025, to date were as follows: • In May 2025, we accessed the unsecured debt capital markets and raised $750 million through the issuance of senior notes, which provided additional liquidity at Ally Financial Inc. In July 2025, we accessed the unsecured debt capital markets and issued $600 million of senior notes, which provided additional liquidity at Ally Financial Inc. • We raised $550 million through the issuance of credit-linked notes. The related proceeds are held within a cash collateral account as restricted cash and cash equivalents recorded within other assets on the Condensed Consolidated Balance Sheet. Funding Sources The following table summarizes our sources of funding and the amount outstanding under each category for the periods shown. September 30, 2025 December 31, 2024 ($ in millions) On-balance-sheet funding % Share of funding On-balance-sheet funding % Share of funding Deposits $ 148,410 88 $ 151,574 89 Debt Secured financings 9,546 6 8,058 5 Institutional term debt 10,316 6 10,169 6 Retail term notes 766 — 893 — Total debt (a) 20,628 12 19,120 11 Total on-balance-sheet funding $ 169,038 100 $ 170,694 100 (a) Includes hedge basis adjustments as described in Note 19 to the Condensed Consolidated Financial Statements. Refer to Note 13 to the Condensed Consolidated Financial Statements for a summary of the scheduled maturity of long-term debt at September 30, 2025. Deposits Ally Bank is a digital direct bank with no branch network that obtains retail deposits directly from customers. We offer competitive rates and fees on a full spectrum of retail deposit products, including savings accounts, money-market demand accounts, CDs, interest-bearing spending accounts, trust accounts, and IRAs. Our primary funding source is retail deposits, which we believe, at scale, is the most efficient and stable source of funding for us when compared to other funding sources. Retail deposits constituted 84% of our total on-balance-sheet funding sources at September 30, 2025. Total deposits, which include brokered deposits obtained through third-party intermediaries, constituted 88% of total on-balance-sheet funding at September 30, 2025. 114 Table of Contents Management’s Discussion and Analysis Ally Financial Inc. • Form 10-Q Total uninsured deposits as calculated per regulatory guidance includes affiliate and intercompany deposits, which we believe have different risk profiles than other uninsured deposits. The amounts presented below remove affiliate and intercompany deposits from total uninsured deposits. We believe that the presentation of uninsured deposits adjusted for the impact of the affiliate deposits provides enhanced clarity of uninsured deposits at risk. September 30, 2025 December 31, 2024 ($ in millions) Amount % of total deposits Amount % of total deposits Uninsured deposits Total uninsured deposits, as calculated per regulatory guidelines $ 16,930 12 $ 17,921 12 Less: Affiliate and intercompany deposits 5,522 4 6,320 4 Total uninsured deposits, excluding affiliate and intercompany deposits $ 11,408 8 $ 11,601 8 On November 16, 2023, the FDIC finalized a rule that imposes a special assessment to recover the costs to the DIF resulting from the FDIC’s use, in March 2023, of the systemic risk exception to the least-cost resolution test under the FDI Act in connection with the receiverships of SVB and Signature. The rule provides that the total loss estimate will be periodically adjusted and the FDIC retains the ability to cease collection early, extend the special assessment collection period and impose a final shortfall special assessment on a one-time basis. We paid $14 million in special assessments during the nine months ended September 30, 2025. As of September 30, 2025, our FDIC special assessment liability was $13 million. The following table shows Ally Bank’s total primary retail deposit customers and deposit balances as of the end of each of the last five quarters. September 30, 2025 June 30, 2025 March 31, 2025 December 31, 2024 September 30, 2024 Total primary retail deposit customers (in thousands) 3,405 3,360 3,330 3,272 3,255 Deposits ($ in millions) Retail $ 141,843 $ 143,158 $ 146,069 $ 143,430 $ 141,449 Brokered 5,037 3,244 3,949 6,737 9,082 Other (a) 1,530 1,464 1,410 1,407 1,419 Total deposits $ 148,410 $ 147,866 $ 151,428 $ 151,574 $ 151,950 (a) Other deposits include mortgage escrow deposits. Other deposits also include a deposit related to Ally Invest customer cash balances deposited at Ally Bank by a third party of $1.4 billion as of September 30, 2025, and $1.3 billion as of each of the periods ended June 30, 2025, March 31, 2025, and December 31, 2024, and $1.2 billion as of September 30, 2024. During the nine months ended September 30, 2025, our total deposit base decreased $3.2 billion. During the nine months ended September 30, 2025, our retail deposits decreased $1.6 billion bringing the total retail deposits portfolio to $141.8 billion as of September 30, 2025. We added approximately 133,000 retail deposit customers during the nine months ended September 30, 2025, ending with approximately 3.4 million retail deposit customers as of September 30, 2025. During the nine months ended September 30, 2025, we proactively implemented pricing actions to reduce rates paid on several of our key deposit product offerings. These pricing actions reduced deposit balances from our most rate sensitive customers, which were more than offset by deposit growth from new customers. Brokered deposits decreased $1.7 billion during the nine months ended September 30, 2025, due to brokered deposit maturities and calls. During the nine months ended September 30, 2025, our CD deposit liabilities decreased $6.5 billion while our savings, money market, and spending account deposit liabilities increased $3.2 billion. This trend was primarily due to customer migration to liquid savings as fixed-rate CD maturities occurred during the nine months ended September 30, 2025. Strong customer acquisition and retention rates continue to deliver a favorable funding mix. Overall, we continue to maintain a relentless focus on customer experience and competitive rates. Approximately 92% of retail deposits at Ally Bank, excluding affiliate and intercompany deposits, were FDIC-insured as of September 30, 2025. Our total available liquidity exceeded our uninsured retail deposit liabilities by $55.2 billion as of September 30, 2025. For additional information on our deposit funding by type, refer to Note 12 to the Condensed Consolidated Financial Statements. We continue to be recognized for the totality of experience and value we provide our customers. This includes our recent recognition as one of American Banker’s 2025 Top-Performing Banks and Forbes World’s Best Banks for 2025 and Best Mobile Banking Apps of 2025. Our commitment to customer service was recognized by Newsweek, who ranked Ally Bank the #1 Online Bank for Customer Service. Additionally, Nerdwallet names us “Best Bank” and “Best Bank for CDs” in 2025 and Bankrate also named Ally as “Best Bank Overall”, “Best Online Bank”, “Best CD”, “Best Money Market Account” and “Best Checking Account”. Additionally, Barron’s and Wall Street Journal both recognized our Ally Invest Robo Portfolios as best in class in 2025. Securitizations and Secured Financings In addition to building a larger deposit base in recent years, we maintain a presence in the securitization markets to finance our automotive loan portfolios. Securitizations and secured funding transactions, collectively referred to as securitization transactions due to their 115 Table of Contents Management’s Discussion and Analysis Ally Financial Inc. • Form 10-Q similarities, allow us to convert our automotive finance receivables into cash earlier than what would have occurred in the normal course of business. For additional details surrounding our securitization activities, refer to the section titled Liquidity Management, Funding, and Regulatory Capital in our 2024 Annual Report on Form 10-K. These securitization transactions may meet the criteria to be accounted for as off-balance-sheet securitization transactions if we do not hold a potentially significant economic interest or do not provide servicing or asset management functions for the financial assets held by the securitization entity. Our securitization transactions may not meet the required criteria to be accounted for as off-balance-sheet securitization transactions; therefore, they are accounted for as secured borrowings. For information regarding our off-balance sheet arrangements and securitization activities, refer to Note 1 and Note 11 to the Consolidated Financial Statements in our 2024 Annual Report on Form 10-K. During the nine months ended September 30, 2025, we raised $550 million through the issuance of credit-linked notes. The proceeds from this issuance constitute prefunded credit protection for mezzanine tranches of the reference portfolio and are recognized as restricted cash and cash equivalents in other assets on our Condensed Consolidated Balance Sheet. This transaction is structured to enable us to apply the securitization framework under U.S. Basel III when determining RWA for our retained exposure. We have access to funding through advances with the FHLB. These advances are primarily secured by consumer and commercial mortgage finance receivables and loans and investment securities. As of September 30, 2025, we had pledged $26.1 billion of assets to the FHLB resulting in $17.4 billion in total funding capacity with $7.1 billion of debt outstanding. At September 30, 2025, $64.0 billion of our total assets were restricted as collateral for the payment of debt obligations accounted for as secured borrowings. Refer to Note 13 to the Condensed Consolidated Financial Statements for further discussion. Unsecured Financings We have long-term unsecured debt outstanding from retail term note programs. These programs are composed of callable fixed-rate instruments with fixed maturity dates. There were $766 million of retail term notes outstanding at September 30, 2025. The remainder of our unsecured debt is composed of institutional term debt. In May 2025, we accessed the unsecured debt capital markets and raised $750 million through the issuance of senior notes. In July 2025, we raised an additional $600 million through the issuance of senior notes. Refer to Note 13 to the Condensed Consolidated Financial Statements for additional information about our outstanding long-term unsecured debt. Other Secured and Unsecured Short-term Borrowings We have access to repurchase agreements. A repurchase agreement is a transaction in which the firm sells financial instruments to a buyer, typically in exchange for cash, and simultaneously enters into an agreement to repurchase the same or substantially the same financial instruments from the buyer at a stated price plus accrued interest at a future date. The securities sold in repurchase agreements include U.S. government and federal agency obligations. As of September 30, 2025, we had $529 million debt outstanding under repurchase agreements. Additionally, we have access to the FRB Discount Window and can borrow funds to meet short-term liquidity demands. The FRB, however, is not a primary source of funding for day-to-day business. Instead, it is a liquidity source that can be accessed in stressed environments or periods of market disruption. As of September 30, 2025, we had assets pledged and restricted as collateral to the FRB totaling $33.7 billion, resulting in $26.9 billion in total funding capacity with no debt outstanding. Guaranteed Securities Certain senior notes (collectively, the Guaranteed Notes) issued by Ally Financial Inc. (referred to within this section as the Parent) are unconditionally guaranteed on a joint and several basis by IB Finance, a subsidiary of the Parent and the direct parent of Ally Bank, and Ally US LLC, a subsidiary of the Parent (together, the Guarantors, and the guarantee provided by each such Guarantor, the Note Guarantees). The Guarantors are primary obligors with respect to payment when due, whether at maturity, by acceleration or otherwise, of all payment obligations of the Parent in respect of the Guaranteed Notes pursuant to the terms of the applicable indenture. At both September 30, 2025, and December 31, 2024, the outstanding principal balance of the Guaranteed Notes was $2.0 billion, with the last scheduled maturity to take place in 2031. The Note Guarantees rank equally in right of payment with the applicable Guarantor’s existing and future unsubordinated unsecured indebtedness and are subordinate to any secured indebtedness of the applicable Guarantor to the extent of the value of the assets securing such indebtedness. The Note Guarantees are structurally subordinate to indebtedness and other liabilities (including trade payables and lease obligations, and in the case of Ally Bank, its deposits) of any nonguarantor subsidiaries of the applicable Guarantor to the extent of the value of the assets of such subsidiaries. The Note Guarantees and all other obligations of the Guarantors will terminate and be of no further force or effect (i) upon a permissible sale, disposition, or other transfer (including through merger or consolidation) of a majority of the equity interests (including any sale, disposition or other transfer following which the applicable Guarantor is no longer a subsidiary of the Parent), of the applicable Guarantor, or (ii) upon the discharge of the Parent’s obligations related to the Guaranteed Notes. 116 Table of Contents Management’s Discussion and Analysis Ally Financial Inc. • Form 10-Q The following tables present summarized financial data for the Parent and the Guarantors on a combined basis. The Guarantors, both of which the Parent is deemed to possess control over, are fully consolidated after eliminating intercompany balances and transactions. Summarized financial data for nonguarantor subsidiaries is excluded. Three months ended September 30, Nine months ended September 30, ($ in millions) 2025 2024 2025 2024 Net financing loss and other interest income (a) $ (241) $ (222) $ (717) $ (654) Dividends from bank subsidiaries 450 450 700 750 Total other revenue 45 38 127 100 Total net revenue 254 266 110 196 Provision for credit losses 2 5 5 10 Total noninterest expense 103 98 320 352 Income (loss) from continuing operations before income tax benefit 149 163 (215) (166) Income tax benefit from continuing operations (b) (76) (73) (233) (230) Income from continuing operations 225 236 18 64 Net Income (c) $ 225 $ 236 $ 18 $ 64 (a) Net financing loss and other interest income is primarily driven by interest expense on long-term debt. (b) There is a significant variation in the customary relationship between pretax income and income tax benefit due to our accounting policy elections and consolidated tax adjustments. The income tax benefit excludes tax effects on dividends from subsidiaries. (c) Excludes the Parent’s and Guarantors’ share of income of all nonguarantor subsidiaries. ($ in millions) September 30, 2025 December 31, 2024 Total assets (a) $ 7,128 $ 7,436 Total liabilities $ 12,611 $ 12,644 (a) Excludes investments in all nonguarantor subsidiaries. Cash Flows The following summarizes the activity reflected in the Condensed Consolidated Statement of Cash Flows. While this information may be helpful to highlight certain macro trends and business strategies, the cash flow analysis may not be as helpful when analyzing changes in our net earnings and net assets. We believe that in addition to the traditional cash flow analysis, the discussion related to liquidity, dividends, and ALM herein may provide more useful context in evaluating our liquidity position and related activity. Net cash provided by operating activities was $3.1 billion and $3.6 billion for the nine months ended September 30, 2025, and 2024, respectively. The change was primarily due to a $336 million decrease in net cash inflows from loans held-for-sale activity. Net cash used in investing activities was $813 million, and net cash provided by investing activities was $3.8 billion for the nine months ended September 30, 2025, and 2024, respectively. The change was primarily due to a $2.3 billion increase in net cash outflows from loans held-for-investment activity, a $1.8 billion increase in net cash outflows related to operating lease assets, and a $463 million increase in net cash outflows related to available-for-sale securities. Net cash used in financing activities was $2.1 billion and $5.5 billion for the nine months ended September 30, 2025, and 2024, respectively. The change was primarily attributable to net cash inflows related to short-term borrowings of $3.8 billion, partially offset by a net decrease in deposits of $342 million. Capital Planning and Stress Tests Under the Tailoring Rules, we are generally subject to supervisory stress testing on a two-year cycle and exempted from mandated company-run capital stress testing requirements. We are also required to submit an annual capital plan to the FRB. Our annual capital plan must include an assessment of our expected uses and sources of capital and a description of all planned capital actions over a nine-quarter planning horizon, including any issuance of a debt or equity capital instrument, any dividend or other capital distribution, and any similar action that the FRB determines could have an impact on our capital. The plan must also include a detailed description of our process for assessing capital adequacy, including a discussion of how we, under expected and stressful conditions, will maintain capital commensurate with our risks and above the minimum regulatory capital ratios, will serve as a source of strength to Ally Bank, and will maintain sufficient capital to continue our operations by maintaining ready access to funding, meeting our obligations to creditors and other counterparties, and continuing to serve as a credit intermediary. The Tailoring Rules align capital planning, supervisory stress testing, and stress capital buffer requirements for large banking organizations, like Ally. As a Category IV firm, Ally is expected to have the ability to elect to participate in the supervisory stress test—and receive a correspondingly updated stress capital buffer requirement—in a year in which Ally would not generally be subject to the 117 Table of Contents Management’s Discussion and Analysis Ally Financial Inc. • Form 10-Q supervisory stress test. Refer to the section titled Basel Capital Framework in Note 18 to the Condensed Consolidated Financial Statements for further discussion about our stress capital buffer requirements. During a year in which Ally does not undergo a supervisory stress test, we would receive an updated stress capital buffer requirement only to reflect our updated planned common-stock dividends. Ally did not elect to participate in the 2023 or 2025 supervisory stress tests, but was subject to the 2024 supervisory stress test. We received an updated preliminary stress capital buffer requirement based on our 2023 capital plan submission from the FRB in June 2023 that remained unchanged at 2.5%. The 2.5% stress capital buffer requirement was finalized in July 2023 and became effective in October 2023. We submitted our 2024 capital plan to the FRB in April 2024, and received an updated preliminary stress capital buffer requirement from the FRB in June 2024 of 2.6%. The updated 2.6% stress capital buffer requirement was finalized in August 2024, and became effective in October 2024. We submitted our 2025 capital plan to the FRB in April 2025, and received in June 2025 an updated preliminary stress capital buffer requirement that remained unchanged at 2.6%. The 2.6% stress capital buffer requirement was finalized in August 2025, and became effective in October 2025. In February 2023 and December 2024, we accessed the unsecured debt capital markets each time issuing $500 million of additional subordinated notes, which qualify as Tier 2 capital for Ally under U.S. Basel III. In June 2024, November 2024, and August 2025, we accessed the debt capital markets and issued $330 million ,$440 million, and $550 million, respectively, of credit-linked notes based on reference portfolios of $3.0 billion, $4.0 billion, and $5.0 billion of consumer automotive loans. The proceeds from these credit-linked notes issuances constitute prefunded credit protection for mezzanine tranches of the respective reference portfolio and are recognized as restricted cash and cash equivalents in other assets on our Condensed Consolidated Balance Sheet. These transactions are structured to enable us to apply the securitization framework under U.S. Basel III when determining RWA for our retained exposure, which recognizes the credit risk mitigation benefits and generally provides lower risk weights relative to those assigned to consumer automotive loans that are not securitized. Our ability to make capital distributions, including our ability to pay dividends or repurchase shares of our common stock, will continue to be subject to the FRB’s review and our internal governance requirements, including approval by our Board. The amount and size of any future dividends and share repurchases also will be subject to various factors, including Ally’s capital and liquidity positions, accounting and regulatory considerations (including any restrictions that may be imposed by the FRB and any changes to capital, liquidity, and other regulatory requirements that may be proposed or adopted by the U.S. banking agencies), the taxation of share repurchases, financial and operational performance, alternative uses of capital, common-stock price, and general market conditions, and may be extended, modified, or discontinued at any time. 118 Table of Contents Management’s Discussion and Analysis Ally Financial Inc. • Form 10-Q Regulatory Capital We became subject to U.S. Basel III on January 1, 2015, although a number of its provisions—including capital buffers and certain regulatory capital deductions—were subject to phase-in periods. For further information on U.S. Basel III, refer to Note 18 to the Condensed Consolidated Financial Statements. The following table presents selected regulatory capital data under U.S. Basel III. September 30, ($ in millions) 2025 2024 (a) Common Equity Tier 1 capital ratio 10.07 % 9.79 % Tier 1 capital ratio 11.57 % 11.24 % Total capital ratio 13.44 % 12.90 % Tier 1 leverage ratio (to adjusted quarterly average assets) (b) 9.18 % 8.99 % Total equity $ 15,117 $ 14,725 CECL phase-in adjustment (c) — 296 Preferred stock (d) (2,324) (2,324) Goodwill and certain other intangibles (187) (707) Deferred tax assets arising from net operating loss and tax credit carryforwards (e) (388) (106) AOCI-related adjustments (f) 2,966 3,414 Common Equity Tier 1 capital 15,184 15,298 Preferred stock (d) 2,324 2,324 Other adjustments (68) (58) Tier 1 capital 17,440 17,564 Qualifying subordinated debt and other instruments qualifying as Tier 2 984 696 Qualifying allowance for loan losses and other adjustments 1,835 1,913 Total capital $ 20,259 $ 20,173 Risk-weighted assets (g) $ 150,738 $ 156,322 (a) Capital amounts and ratios are based on regulatory filings of Ally and Ally Bank, and have not been adjusted for September 30, 2024, to reflect our change in the method of accounting for ITCs. Refer to Note 1 to the Consolidated Financial Statements in our 2024 Annual Report on Form 10-K for additional information about this change in accounting principle. (b) Tier 1 leverage ratio equals Tier 1 capital divided by adjusted quarterly average total assets, which both reflect adjustments for disallowed goodwill, certain intangible assets, and disallowed deferred tax assets. (c) We elected to delay recognizing the estimated impact of CECL on regulatory capital until after a two-year deferral period, which for us extended through December 31, 2021. Beginning on January 1, 2022, we phased in 25% of the previously deferred estimated capital impact of CECL, with an additional 25% phased in at the beginning of each subsequent year until fully phased in by the first quarter of 2025. As of January 1, 2025, the estimated impact of CECL on regulatory capital was fully phased in. Refer to Note 18 to the Condensed Consolidated Financial Statements for further information. (d) Refer to Note 15 to the Condensed Consolidated Financial Statements for additional details about our non-cumulative perpetual preferred stock. (e) Contains deferred tax assets required to be deducted from capital under U.S. Basel III. (f) Comprises adjustments related to our accumulated other comprehensive income opt-out election, which allows us to exclude most elements of accumulated other comprehensive income from regulatory capital. (g) Risk-weighted assets are defined by regulation and are generally determined by allocating assets and specified off-balance sheet exposures to various risk categories. Credit Ratings The cost and availability of unsecured financing are influenced by credit ratings, which are intended to be an indicator of the creditworthiness of a particular company, security, or obligation. Lower ratings result in higher borrowing costs and reduced access to capital markets. This is particularly true for certain institutional investors whose investment guidelines require investment-grade ratings on term debt and the two highest rating categories for short-term debt (particularly money-market investors). 119 Table of Contents Management’s Discussion and Analysis Ally Financial Inc. • Form 10-Q Nationally recognized statistical rating organizations rate substantially all our debt. The following table summarizes our current ratings and outlook by the respective nationally recognized rating agencies. Rating agency Short-term Senior unsecured debt Outlook Fitch (a) F3 BBB- Stable Moody’s (b) P-3 Baa3 Stable S&P (c) A-3 BBB- Stable DBRS (d) R-2 (high) BBB Stable (a) Fitch affirmed our senior unsecured debt rating of BBB-, short-term rating of F3, and affirmed our outlook of Stable on March 3, 2025. (b) Moody’s affirmed our senior unsecured rating of Baa3, our short-term rating of P-3, and affirmed our outlook of Stable on August 20, 2025. (c) S&P affirmed our senior unsecured debt rating of BBB-, short-term rating of A-3, and affirmed our outlook of Stable on October 7, 2024. (d) DBRS affirmed our senior unsecured debt rating of BBB, affirmed our short-term rating of R-2 (high), and affirmed our outlook of Stable on February 11, 2025. As illustrated by the issuer ratings above, as of September 30, 2025, Ally holds an investment-grade rating from all the respective nationally recognized rating agencies. Rating agencies indicate that they base their ratings on many quantitative and qualitative factors, which may include capital adequacy, liquidity, asset quality, business mix, level and quality of earnings, and the current operating, legislative, and regulatory environment. Rating agencies themselves could make or be required to make substantial changes to their ratings policies and practices—particularly in response to legislative and regulatory changes. Potential changes in rating methodology, as well as in the legislative and regulatory environment, and the timing of those changes could impact our ratings, which as noted above could increase our borrowing costs and reduce our access to capital. A credit rating is not a recommendation to buy, sell, or hold securities, and the ratings are subject to revision or withdrawal at any time by the assigning rating agency. Each rating should be evaluated independently of any other rating. Critical Accounting Estimates We identified critical accounting estimates that, as a result of judgments, uncertainties, uniqueness, and complexities of the underlying accounting standards and operations involved could result in material changes to our financial condition, results of operations, or cash flows under different conditions or using different assumptions. Our most critical accounting estimates are as follows: • Allowance for loan losses • Valuation of automotive lease assets and residuals • Fair value of financial instruments • Determination of provision for income taxes We did not substantively change any material aspect of our methodologies and processes used in developing any of the estimates described above from what was described in the Consolidated Financial Statements in our 2024 Annual Report on Form 10-K. Refer to Note 1 to the Condensed Consolidated Financial Statements for further discussion regarding the methodology used in calculating the provision for income taxes for interim financial reporting. 120 Table of Contents Management’s Discussion and Analysis Ally Financial Inc. • Form 10-Q Statistical Table The accompanying supplemental information should be read in conjunction with the more detailed information, including our Condensed Consolidated Financial Statements and the notes thereto, which appears elsewhere in this Quarterly Report. Net Interest Margin Table The following tables present an analysis of net yield on interest-earning assets (or net interest margin) for the periods shown. 2025 2024 Increase (decrease) due to Three months ended September 30, ($ in millions) Average balance (a) Interest income/interest expense Yield/rate Average balance (a) Interest income/interest expense Yield/rate Volume Yield/rate Total Assets Interest-bearing cash and cash equivalents (b) (c) $ 8,465 $ 92 4.28 % $ 7,867 $ 102 5.14 % $ 8 $ (18) $ (10) Investment securities (d) 27,798 241 3.44 29,044 253 3.46 (11) (1) (12) Loans held-for-sale, net 141 6 17.37 267 5 8.27 (2) 3 1 Finance receivables and loans, net (d) (e) 133,419 2,674 7.95 137,625 2,889 8.35 (88) (127) (215) Investment in operating leases, net (f) 8,255 140 6.70 8,038 147 7.22 4 (11) (7) Other earning assets 652 9 5.56 651 9 5.77 — — — Total interest-earning assets 178,730 3,162 7.02 183,492 3,405 7.38 (243) Noninterest-bearing cash and cash equivalents 251 266 Other assets 11,699 11,711 Allowance for loan losses (3,437) (3,584) Total assets $ 187,243 $ 191,885 Liabilities and equity Interest-bearing deposit liabilities (d) $ 147,491 $ 1,302 3.50 % $ 152,075 $ 1,616 4.23 % $ (49) $ (265) $ (314) Short-term borrowings 897 11 4.54 994 13 5.22 (1) (1) (2) Long-term debt 16,375 265 6.41 16,597 256 6.13 (3) 12 9 Total interest-bearing liabilities 164,763 1,578 3.80 169,666 1,885 4.42 (307) Noninterest-bearing deposit liabilities 169 166 Total funding sources 164,932 1,578 3.80 169,832 1,885 4.42 Other liabilities (g) 7,362 — — 7,619 — — — — — Total liabilities 172,294 177,451 Total equity 14,949 14,434 Total liabilities and equity $ 187,243 $ 191,885 Net financing revenue and other interest income $ 1,584 $ 1,520 $ 64 Net interest spread (h) 3.22 % 2.96 % Net yield on interest-earning assets (i) 3.51 % 3.29 % (a) Average balances are calculated using an average daily balance methodology. Refer to Note 1 to the Consolidated Financial Statements in our 2024 Annual Report on Form 10-K for further information regarding our basis of presentation and significant accounting policies, which are in accordance with U.S. GAAP. (b) Includes restricted interest-bearing cash and cash equivalents recorded in other assets on the Condensed Consolidated Balance Sheet. (c) Includes interest expense related to margin received on derivative contracts of $3 million for the three months ended September 30, 2024. Excluding this expense, the annualized yield was 5.29% for the three months ended September 30, 2024. (d) Includes the effects of derivative financial instruments designated as hedges. Refer to Note 19 to the Condensed Consolidated Financial Statements for further information about the effects of our hedging activities. (e) Nonperforming finance receivables and loans are included in the average balances. For information on our accounting policies regarding nonperforming status, refer to Note 1 to the Consolidated Financial Statements in our 2024 Annual Report on Form 10-K. (f) Yield includes gains on the sale of off-lease vehicles of $1 million and $24 million for the three months ended September 30, 2025, and September 30, 2024, respectively. Excluding gains on the sale of off-lease vehicles, the annualized yield was 6.64% and 6.03% for the three months ended September 30, 2025, and September 30, 2024, respectively. (g) Represents interest expense on tax liabilities included in other liabilities on the Condensed Consolidated Balance Sheet. The interest expense on tax liabilities is included in the net yield on interest-earning assets and excluded from the interest spread. For more information on our accounting policies regarding income taxes, refer to Note 1 to the Consolidated Financial Statements in our 2024 Annual Report on Form 10-K. (h) Net interest spread represents the difference between the rate on total interest-earning assets and the rate on total interest-bearing liabilities. (i) Net yield on interest-earning assets represents annualized net financing revenue and other interest income as a percentage of total interest-earning assets. 121 Table of Contents Management’s Discussion and Analysis Ally Financial Inc. • Form 10-Q 2025 2024 Increase (decrease) due to Nine months ended September 30, ($ in millions) Average balance (a) Interest income/interest expense Yield/rate Average balance (a) Interest income/interest expense Yield/rate Volume Yield/rate Total Assets Interest-bearing cash and cash equivalents (b) (c) $ 8,896 $ 285 4.28 % $ 7,618 $ 287 5.03 % $ 48 $ (50) $ (2) Investment securities (d) 27,781 701 3.37 28,962 763 3.52 (31) (31) (62) Loans held-for-sale, net 147 17 15.16 289 20 9.06 (10) 7 (3) Finance receivables and loans, net (d) (e) (f) 133,772 8,007 8.00 138,204 8,561 8.27 (275) (279) (554) Investment in operating leases, net (g) 8,044 387 6.43 8,433 489 7.72 (23) (79) (102) Other earning assets 634 27 5.76 661 30 6.21 (1) (2) (3) Earning assets of operations held-for-sale (h) — — — 423 28 8.77 (28) — (28) Total interest-earning assets 179,274 9,424 7.03 184,590 10,178 7.36 (754) Noninterest-bearing cash and cash equivalents 320 312 Other assets 11,860 11,639 Allowance for loan losses (3,513) (3,577) Total assets $ 187,941 $ 192,964 Liabilities and equity Interest-bearing deposit liabilities (d) $ 148,750 $ 4,034 3.63 % $ 153,177 $ 4,861 4.24 % $ (140) $ (687) $ (827) Short-term borrowings 502 17 4.32 1,656 63 5.10 (44) (2) (46) Long-term debt 16,580 794 6.41 16,757 748 5.96 (8) 54 46 Total interest-bearing liabilities 165,832 4,845 3.91 171,590 5,672 4.42 (827) Noninterest-bearing deposit liabilities 153 154 Total funding sources 165,985 4,845 3.91 171,744 5,672 4.42 Other liabilities (i) 7,441 1 n/m 7,291 1 n/m n/m n/m — Total liabilities 173,426 179,035 Total equity 14,515 13,929 Total liabilities and equity $ 187,941 $ 192,964 Net financing revenue and other interest income $ 4,578 $ 4,505 $ 73 Net interest spread (j) 3.12 % 2.94 % Net yield on interest-earning assets (k) 3.41 % 3.26 % n/m = not meaningful (a) Average balances are calculated using an average daily balance methodology. Refer to Note 1 to the Consolidated Financial Statements in our 2024 Annual Report on Form 10-K for further information regarding our basis of presentation and significant accounting policies, which are in accordance with U.S. GAAP. (b) Includes restricted interest-bearing cash and cash equivalents recorded in other assets on the Condensed Consolidated Balance Sheet. (c) Includes interest expense related to margin received on derivative contracts of $4 million and $17 million for the nine months ended September 30, 2025, and September 30, 2024, respectively. Excluding this expense, the annualized yield was 4.33% and 5.33% for the nine months ended September 30, 2025, and September 30, 2024, respectively. (d) Includes the effects of derivative financial instruments designated as hedges. Refer to Note 19 to the Condensed Consolidated Financial Statements for further information about the effects of our hedging activities. (e) Nonperforming finance receivables and loans are included in the average balances. For information on our accounting policies regarding nonperforming status, refer to Note 1 to the Consolidated Financial Statements in our 2024 Annual Report on Form 10-K. (f) Includes average balances of credit card finance receivables and loans, net, that were transferred to loans held-for-sale on March 31, 2025, prior to the completion of the sale of Ally Credit Card on April 1, 2025. Refer to Note 2 to the Condensed Consolidated Financial Statements for further information. (g) Yield includes losses on the sale of off-lease vehicles of $18 million and gains on the sale of off-lease vehicles of $129 million for the nine months ended September 30, 2025, and September 30, 2024, respectively. Excluding the loss or gain on sale, the annualized yield was 6.72% and 5.68% for the nine months ended September 30, 2025, and September 30, 2024, respectively. (h) Includes average balances of Ally Lending earning assets prior to the completion of the sale on March 1, 2024, which were transferred to assets of operations held-for-sale at December 31, 2023. (i) Represents interest expense on tax liabilities included in other liabilities on the Condensed Consolidated Balance Sheet. The interest expense on tax liabilities is included in the net yield on interest-earning assets and excluded from the interest spread. For more information on our accounting policies regarding income taxes, refer to Note 1 to the Consolidated Financial Statements in our 2024 Annual Report on Form 10-K. (j) Net interest spread represents the difference between the rate on total interest-earning assets and the rate on total interest-bearing liabilities. (k) Net yield on interest-earning assets represents annualized net financing revenue and other interest income as a percentage of total interest-earning assets. 122 Table of Contents Management’s Discussion and Analysis Ally Financial Inc. • Form 10-Q Recently Issued Accounting Standards Refer to Note 1 to the Condensed Consolidated Financial Statements. 123 Table of Contents Quantitative and Qualitative Disclosures about Market Risk Ally Financial Inc. • Form 10-Q Item 3. Quantitative and Qualitative Disclosures about Market Risk Refer to the Market Risk section of Item 2, Management’s Discussion and Analysis of Financial Condition and Results of Operations. 124 Table of Contents Controls and Procedures Ally Financial Inc. • Form 10-Q