Tue, Jul 23, 7:36 PM (46 days ago)
General Motors Financial Company, Inc. reported a solid financial performance for the quarter ended June 30, 2024. Key highlights include: 1. **Revenue Growth**: Total revenue increased to $3.918 billion, up from $3.498 billion in the same quarter of 2023, driven by higher finance charge income from retail and commercial finance receivables. 2. **Net Income**: Net income rose to $610 million, compared to $571 million in the prior year, despite an increase in interest expense and provision for loan losses. 3. **Profit Margins**: Operating expenses as a percentage of average earning assets remained stable at 1.6%. Interest expense increased due to higher benchmark rates and increased average debt outstanding. 4. **Asset Quality**: Retail finance receivables more than 30 days delinquent increased to 2.8% from 2.5% a year ago. The allowance for loan losses as a percentage of retail finance receivables was 3.1%. 5. **Liquidity**: Available liquidity stood at $36.490 billion, exceeding the company's target to support at least six months of expected net cash outflows. 6. **Future Outlook**: The company expects delinquency and net charge-offs to increase over time but remain below historical levels due to improved credit mix. Overall, GM Financial demonstrated robust revenue growth and maintained strong liquidity, positioning itself well for future operations amidst a challenging economic environment.