GM Financial Reports First Quarter 2023 Operating Results
GENERAL MOTORS FINANCIAL COMPANY, INC. (“GM Financial” or the “Company”) announced net income of $584 million for the quarter ended March 31, 2023, compared to $605 million for the quarter ended December 31, 2022, and $962 million for the quarter ended March 31, 2022.
Retail loan originations were $9.1 billion for the quarter ended March 31, 2023, compared to $8.3 billion for the quarter ended December 31, 2022, and $8.1 billion for the quarter ended March 31, 2022. The outstanding balance of retail finance receivables, net of fees was $67.7 billion at March 31, 2023, compared to $65.3 billion at December 31, 2022 and $59.5 billion at March 31, 2022.
Operating lease originations were $3.9 billion for the quarter ended March 31, 2023, compared to $3.5 billion for both the quarters ended December 31, 2022 and March 31, 2022. Leased vehicles, net was $31.8 billion at March 31, 2023, compared to $32.7 billion at December 31, 2022 and $36.6 billion at March 31, 2022.
The outstanding balance of commercial finance receivables, net of fees was $10.6 billion at March 31, 2023, compared to $11.3 billion at December 31, 2022 and $7.4 billion at March 31, 2022.
Retail finance receivables 31-60 days delinquent were 1.8% of the portfolio at March 31, 2023 and 1.7% at March 31, 2022. Accounts more than 60 days delinquent were 0.5% of the portfolio at both March 31, 2023 and March 31, 2022.
Annualized net charge-offs were 0.8% of average retail finance receivables for the quarter ended March 31, 2023 and 0.7% for the quarter ended March 31, 2022.
The Company had total available liquidity of $30.8 billion at March 31, 2023, consisting of $4.4 billion of cash and cash equivalents, $23.0 billion of borrowing capacity on unpledged eligible assets, $0.5 billion of borrowing capacity on committed unsecured lines of credit, $1.0 billion of borrowing capacity on the Junior Subordinated Revolving Credit Facility from GM, and $2.0 billion of borrowing capacity on the GM Revolving 364-Day Credit Facility.
Earnings resulting from the Company's equity investment in joint ventures that conduct automotive finance operations in China were $41 million for the quarter ended March 31, 2023, compared to $25 million for the quarter ended December 31, 2022 and $54 million for the quarter ended March 31, 2022.
About GM Financial
General Motors Financial Company, Inc. is the wholly owned captive finance subsidiary of General Motors Company and is headquartered in Fort Worth, Texas. Additional materials addressing the Company’s results of operations for the quarter ended March 31, 2023 can be accessed via the Investor Relations section of the Company’s website at https://investor.gmfinancial.com.
General Motors Financial Company, Inc.
Condensed Consolidated Statements of Income
(Unaudited, in millions)
Three Months Ended March 31,
2023
2022
Revenue
$
1,368
$
1,010
Leased vehicle income
1,818
2,066
Other income
156
80
Total revenue
3,343
3,156
Costs and expenses
Operating expenses
442
372
Leased vehicle expenses
1,039
855
Provision for loan losses
131
122
Interest expense
1,000
577
Total costs and expenses
2,613
1,926
41
54
771
1,284
Income tax provision
186
322
Net income (loss)
584
962
Less: cumulative dividends on preferred stock
30
30
Net income (loss) attributable to common shareholder
$
555
$
932
Amounts may not add due to rounding.
Condensed Consolidated Balance Sheets
(Unaudited, in millions)
March 31, 2023
December 31, 2022
ASSETS
Cash and cash equivalents
$
4,352
$
4,005
Finance receivables, net of allowance for loan losses of $2,152 and $2,096
76,178
74,514
Leased vehicles, net
31,848
32,701
Goodwill and intangible assets
1,180
1,171
Equity in net assets of non-consolidated affiliates
1,725
1,665
Related party receivables
639
495
Other assets
7,643
7,995
Total assets
$
123,565
$
122,545
LIABILITIES AND SHAREHOLDERS' EQUITY
Liabilities
Secured debt
$
41,253
$
42,131
Unsecured debt
56,814
54,723
Deferred income
2,250
2,248
Related party payables
457
115
Other liabilities
7,590
8,318
Total liabilities
108,364
107,535
Total shareholders' equity
15,201
15,010
Total liabilities and shareholders' equity
$
123,565
$
122,545
Amounts may not add due to rounding.
Operational and Financial Data
(Unaudited, Dollars in millions)
Amounts may not add due to rounding
Three Months Ended March 31,
Originations
2023
2022
Retail finance receivables originations
$
9,104
$
8,074
Lease originations
$
3,926
$
3,542
Three Months Ended March 31,
Average Earning Assets
2023
2022
Average retail finance receivables
$
66,614
$
58,827
Average commercial finance receivables
10,762
6,987
Average finance receivables
77,376
65,814
Average leased vehicles, net
32,272
37,249
Average earning assets
$
109,648
$
103,063
Ending Earning Assets
March 31, 2023
December 31, 2022
Retail finance receivables, net of fees
$
67,704
$
65,322
Commercial finance receivables, net of fees
10,627
11,288
Leased vehicles, net
31,848
32,701
Ending earning assets
$
110,179
$
109,311
Finance Receivables
March 31, 2023
December 31, 2022
Retail
Retail finance receivables, net of fees
$
67,704
$
65,322
Less: allowance for loan losses
(2,123
)
(2,062
)
Total retail finance receivables, net
65,581
63,260
Commercial
Commercial finance receivables, net of fees
10,627
11,288
Less: allowance for loan losses
(29
)
(34
)
Total commercial finance receivables, net
10,597
11,254
Total finance receivables, net
$
76,178
$
74,514
Allowance for Loan Losses
March 31, 2023
December 31, 2022
Allowance for loan losses as a percentage of retail finance receivables, net of fees
3.1
%
3.2
%
Allowance for loan losses as a percentage of commercial finance receivables, net of fees
0.3
%
0.3
%
Delinquencies
March 31, 2023
March 31, 2022
Loan delinquency as a percentage of ending retail finance receivables:
31 - 60 days
1.8
%
1.7
%
Greater than 60 days
0.5
0.5
Total
2.3
%
2.2
%
Three Months Ended March 31,
Charge-offs and Recoveries
2023
2022
Charge-offs
$
322
$
275
Less: recoveries
(186
)
(177
)
Net charge-offs
$
136
$
97
Net charge-offs as an annualized percentage of average retail finance receivables
0.8
%
0.7
%
Three Months Ended March 31,
Operating Expenses
2023
2022
Operating expenses as an annualized percentage of average earning assets
1.6
%
1.5
%
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