FORT WORTH, Texas — General Motors Financial posted
year-over-year gains in quarterly earnings and loan originations as company
executives highlighted how they helped the parent automaker maintain its "industry
leading leadership" for subprime loan penetration.

GM Financial indicated the OEM reached a subprime loan
penetration of 8.6 percent in the second quarter, above what the company said
was an industry average of 6.4 percent.

For the quarter that ended June 30, GM Financial reported earnings
of $178 million, up from $137 million the company generated in the second
quarter of last year.  Earnings for the
six-month span came in at $284 million, up from $249 million during the first six
months of last year.

Officials pointed out earnings include $16 million and $22
million in pre-tax acquisition and integration expenses for the quarter and the
six-month period of this year, respectively.

The company reported consumer loan originations totaled $2.5
billion in the second quarter, rising from $1.4 billion during the previous
quarter and $1.5 billion a year earlier.

The outstanding balance of consumer finance receivables
totaled $18.6 billion on June 30.

The company noted operating lease originations for GM
vehicles totaled $834 million in the second quarter, up from $620 million in
the previous quarter and $394 million in the year-ago quarter.

GM Financial highlighted operating lease originations for the
first six months of this year came in at $1.5 billion, compared to $778 million
for the six months of last year.

"On the leasing side, the motor company is targeting higher
lease penetration. With our help, the lease penetration has now reached 20
percent, still slightly behind the industry average, but on a mix-adjusted
basis, getting to about the point where the motor company wants to be," GM
Financial president and chief executive officer Dan Berce said.

"Canadian lease penetration is still lagging the overall
market," Berce continued. "The banks in Canada continue to offer extended-term
financing, in many cases 84- and 96-month terms at very, very low rates, making
it pretty hard for our lease product to compete.

"The linkage between GM Financial and the motor company
continues to increase," he went on to say. "As I mentioned, 60 percent of our
originations now are of a GM vehicle in the U.S. and Canada. We have meaningful shares of GM's subprime and lease
market at 34 percent and 21 percent, respectively."

GM Financial indicated that consumer finance receivables
31-to-60 days delinquent stood at 3.4 percent of the portfolio at the close of
the second quarter, down from 4.1 percent a year earlier.

The company's accounts more than 60 days delinquent came in
at 1.4 percent of the portfolio on June 30, compared to 1.5 percent a year ago.

Consumer finance receivables 31-to-60 and more than 60 days
delinquent for North American accounts were 5.3 percent and 1.8 percent, respectively, on
June 30, the company reported.

GM Financial also indicated that its annualized net credit
losses were 1.4 percent of average consumer finance receivables for the second quarter,
compared to 1.5 percent a year earlier.

The company had total available liquidity of $4.1 billion as
of June 30,  consisting of $1.8 billion
of unrestricted cash, approximately $1.6 billion of borrowing capacity on
unpledged eligible assets, $76 million of borrowing capacity on unsecured lines
of credit and $600 million on a line of credit from GM.

Impact of the CFPB

Similar to questioning that occurred during recent conference
calls conducted by the publicly traded dealer groups, GM Financial responded to
investment analysts inquiring about the business impact of regulatory enforcement
made by the Consumer Financial Protection Bureau.

"I think every consumer finance company is preparing for
the inevitable CFPB exam, and we are no different," Berce said. "So, we have,
historically, done a great job on compliance and don't have any areas we think
that we are vulnerable in. By the same token, we have beefed up our compliance
effort.

"A few areas the CFPB is focusing on are consumer complaints
and third-party vendor management," he continued. "We have refocused on each of
those areas, like every other consumer finance company. The auto finance
specific, probably the area that the CFPB has their sights on the most, is the
payment rate participation to dealers when we source business.

"I think the CFPB, if it were up to them, they would rather
see flat rates, flat payments to dealers for sourcing business rather than a
rate participation," Berce went on to say. "It remains to be seen how that
shakes out, but I don't think it will have much of an impact on our economics,
whether we pay flat or participation. The whole industry will change together,
if that's the way the cards fall."

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