GM Financial Reports Full Year and Fourth Quarter 2022 Operating Results
GENERAL MOTORS FINANCIAL COMPANY, INC. (“GM Financial” or the “Company”) announced net income of $605 million for the quarter ended December 31, 2022, compared to $688 million for the quarter ended September 30, 2022, and $909 million for the quarter ended December 31, 2021. Net income for the year ended December 31, 2022 was $3.1 billion, compared to $3.8 billion for the year ended December 31, 2021.
Retail loan originations were $8.3 billion for the quarter ended December 31, 2022, compared to $9.4 billion for the quarter ended September 30, 2022, and $7.5 billion for the quarter ended December 31, 2021. Retail loan originations for the year ended December 31, 2022 were $34.8 billion, compared to $32.6 billion for the year ended December 31, 2021. The outstanding balance of retail finance receivables, net of fees was $65.3 billion at December 31, 2022, compared to $58.1 billion at December 31, 2021.
Operating lease originations were $3.5 billion for both the quarters ended December 31, 2022 and September 30, 2022, compared to $2.8 billion for the quarter ended December 31, 2021. Operating lease originations for the year ended December 31, 2022 were $14.4 billion, compared to $18.3 billion for the year ended December 31, 2021. Leased vehicles, net was $32.7 billion at December 31, 2022, compared to $37.9 billion at December 31, 2021.
The outstanding balance of commercial finance receivables, net of fees was $11.3 billion at December 31, 2022, compared to $6.8 billion at December 31, 2021.
Retail finance receivables 31-60 days delinquent were 2.1% of the portfolio at December 31, 2022 and 1.8% at December 31, 2021. Accounts more than 60 days delinquent were 0.7% of the portfolio at December 31, 2022 and 0.6% at December 31, 2021.
Annualized net charge-offs were 0.9% of average retail finance receivables for the quarter ended December 31, 2022 and 0.6% for the quarter ended December 31, 2021. For the year ended December 31, 2022, net charge-offs were 0.7%, compared to 0.6% for the year ended December 31, 2021.
The Company had total available liquidity of $29.5 billion at December 31, 2022, consisting of $4.0 billion of cash and cash equivalents, $22.0 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 $25 million for the quarter ended December 31, 2022, compared to $44 million for both the quarters ended September 30, 2022 and December 31, 2021. Earnings for the year ended December 31, 2022 were $173 million, compared to $201 million for the year ended December 31, 2021.
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 and full year ended December 31, 2022 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 December 31,
Years Ended December 31,
2022
2021
2022
2021
Revenue
Finance charge income
$
1,291
$
1,016
$
4,521
$
4,103
Leased vehicle income
1,844
2,155
7,811
9,026
Other income
142
61
434
290
Total revenue
3,277
3,232
12,766
13,419
Costs and expenses
Operating expenses
460
478
1,662
1,648
Leased vehicle expenses
1,017
985
3,668
4,142
Provision for loan losses
154
74
654
248
Interest expense
897
559
2,881
2,546
Total costs and expenses
2,528
2,096
8,864
8,584
Equity income
25
44
173
201
Income before income taxes
775
1,180
4,076
5,036
Income tax provision
169
271
992
1,247
Net income (loss)
605
909
3,084
3,789
Less: cumulative dividends on preferred stock
30
30
119
119
Net income (loss) attributable to common shareholder
$
576
$
879
$
2,966
$
3,670
Amounts may not add due to rounding.
Condensed Consolidated Balance Sheets
(Unaudited, in millions)
December 31, 2022
December 31, 2021
ASSETS
Cash and cash equivalents
$
4,005
$
3,948
Finance receivables, net of allowance for loan losses of $2,096 and $1,886
74,514
62,979
Leased vehicles, net
32,701
37,929
Goodwill
1,171
1,169
Equity in net assets of non-consolidated affiliates
1,665
1,717
Related party receivables
495
301
Other assets
7,995
5,743
Total assets
$
122,545
$
113,786
LIABILITIES AND SHAREHOLDERS' EQUITY
Liabilities
Secured debt
$
42,131
$
39,338
Unsecured debt
54,723
53,223
Deferred income
2,248
2,551
Related party payables
115
313
Other liabilities
8,318
4,567
Total liabilities
107,535
99,992
Total shareholders' equity
15,010
13,794
Total liabilities and shareholders' equity
$
122,545
$
113,786
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 December 31,
Years Ended December 31,
Originations
2022
2021
2022
2021
Retail finance receivables originations
$
8,329
$
7,458
$
34,760
$
32,621
Lease originations
$
3,511
$
2,786
$
14,427
$
18,268
Three Months Ended December 31,
Years Ended December 31,
Average Earning Assets
2022
2021
2022
2021
Average retail finance receivables
$
64,695
$
57,624
$
61,650
$
55,633
Average commercial finance receivables
10,369
5,482
8,350
6,300
Average finance receivables
75,064
63,106
70,000
61,933
Average leased vehicles, net
33,218
38,829
35,271
39,871
Average earning assets
$
108,282
$
101,935
$
105,271
$
101,804
Ending Earning Assets
December 31, 2022
December 31, 2021
Retail finance receivables, net of fees
$
65,322
$
58,093
Commercial finance receivables, net of fees
11,288
6,772
Leased vehicles, net
32,701
37,929
Ending earning assets
$
109,311
$
102,794
Finance Receivables
December 31, 2022
December 31, 2021
Retail
Retail finance receivables, net of fees
$
65,322
$
58,093
Less: allowance for loan losses
(2,062
)
(1,839
)
Total retail finance receivables, net
63,260
56,254
Commercial
Commercial finance receivables, net of fees
11,288
6,772
Less: allowance for loan losses
(34
)
(47
)
Total commercial finance receivables, net
11,254
6,725
Total finance receivables, net
$
74,514
$
62,979
Allowance for Loan Losses
December 31, 2022
December 31, 2021
Allowance for loan losses as a percentage of retail finance receivables, net of fees
3.2
%
3.2
%
Allowance for loan losses as a percentage of commercial finance receivables, net of fees
0.3
%
0.7
%
Delinquencies
December 31, 2022
December 31, 2021
Loan delinquency as a percentage of ending retail finance receivables:
31 - 60 days
2.1
%
1.8
%
Greater than 60 days
0.7
0.6
Total
2.8
%
2.4
%
Three Months Ended December 31,
Years Ended December 31,
Charge-offs and Recoveries
2022
2021
2022
2021
Charge-offs
$
327
$
233
$
1,138
$
897
Less: recoveries
(174
)
(145
)
(685
)
(571
)
Net charge-offs
$
153
$
88
$
453
$
326
Net charge-offs as an annualized percentage of average retail finance receivables
0.9
%
0.6
%
0.7
%
0.6
%
Three Months Ended December 31,
Years Ended December 31,
Operating Expenses
2022
2021
2022
2021
Operating expenses as an annualized percentage of average earning assets
1.7
%
1.9
%
1.6
%
1.6
%
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