The Auto Channel Reports on Ally Financial Results for April 2011

NEW YORK, May 3, 2011: Ally Financial Inc. (Ally) today reported net income of $146 million for the first quarter of 2011, compared to $162 million for the first quarter of 2010. Net income was favorably affected by an income tax benefit resulting from a $101 million reversal of valuation allowance in Canada. Core pre-tax income, which reflects income from continuing operations before taxes and original issue discount (OID) amortization expense primarily from bond exchanges, totaled $428 million in the first quarter of 2011, compared to $584 million in the comparable prior year period.

"Ally has reported consistently profitable results for more than a year, and we are encouraged with the transformation to date and the progress we continue to see in the business," said Chief Executive Officer Michael A. Carpenter. "Our auto franchise is flourishing, as we continue to generate strong origination volume from an increasingly diversified customer base. Additionally, the consumer value-proposition at Ally Bank continues to resonate as our customer base grows and satisfaction levels remain in the top quartile. While core pre-tax income was lower due to the moderation of certain factors that benefited us last year, we expect profitability to improve over time, as our cost of funds continues to decline, our credit mix becomes more balanced and the original issue discount from bond exchanges runs off.

"We also took some very important steps during the quarter toward repaying the U.S. taxpayer's investment in Ally, including the sale of $2.7 billion of Ally trust preferred securities to third-party investors."