NEW YORK — Ally Financial's North American Automotive
Finance, which includes operations for the U.S. and Canada, watched both its
pre-tax income and loan originations soften during the third quarter.

The company reported this morning that its third-quarter
pre-tax income settled at $510 million, down from $551 million in the
corresponding prior-year period.

"This decrease was mainly driven by a larger loan loss
provision primarily resulting from strong asset growth and higher charge-offs
in-line with portfolio growth," Ally officials said. "It was partially offset
by strong net financing revenue, which improved $101 million year-over-year,
mainly driven by a growing portfolio.

"Lower gain on whole loan sales and lower servicing fee
income also affected the results," they continued.

North American originations during the third quarter were
$10.6 billion, compared to $11.1 billion in the corresponding prior year
period. Ally explained growth in the lease and diversified channels pushed
origination levels in the quarter.

Looking only at the U.S., third-quarter originations totaled
$9.6 billion, down slightly from $10.0 billion the company produced in the
year-ago quarter.

Breaking down this year's third-quarter U.S. origination
figure, the sum was comprised of $4.7 billion of new retail loans, $2.3 billion
of used retail contracts and $2.6 billion of leases.

The company noted U.S. diversified new retail originations
increased 34 percent year-over-year, while U.S. lease originations grew 53
percent compared to the third quarter of 2011.

Officials added combined, used, lease and diversified new
retail originations continue to account for more than 50 percent of total U.S
consumer originations.

Earning assets for North American Automotive Finance, which
are on-balance sheet assets comprised primarily of consumer receivables, the
consumer held-for-sale portfolio, leases and commercial receivables, totaled
$106 billion, up 18 percent compared to the end of the third quarter of last
year.

Ally also mentioned consumer earning assets totaled $73
billion, up 22 percent year-over-year, as strong originations continued to
outpace asset run-off.

The company's commercial earning assets grew to $33 billion
as of Sept. 30, compared to $30 billion at the end of the comparable prior-year
period.

"The year-over-year increase was largely driven by higher
dealer inventory levels to support growing auto industry sales," officials
said.

Despite from comparable dips, Ally chief executive officer
Michael Carpenter cheered the company's third-quarter auto performance.

"The U.S. auto finance franchise continued to produce strong
and consistent results despite a highly competitive market with earning assets
up 21 percent and net financing revenue up 22 percent from last year,"
Carpenter said.

Ally Repays $2.9 Billion of Debt Issued Under TLGP

In other company news, Ally Financial earlier this week announced
it has repaid $2.9 billion in debt issued under the FDIC's Temporary Liquidity
Guarantee Program (TLGP). The company issued this debt on Oct. 30, 2009 with a
maturity date of Oct. 30 of this year.

"The TLGP enabled Ally to access another source of liquidity
during a time when there were limited options for financial institutions. This
liquidity was a key contributor in Ally being able to continue offering
financing options for thousands of auto dealers across the U.S. and millions of
their customers during the financial crisis," said Ally senior executive vice
president of finance and corporate planning Jeffrey Brown.

"Ally continues to make significant progress in executing
our strategic plans, and the announcements we have made in recent weeks will
further enable us to repay the assistance from government programs," Brown
continued.

Brown added the final Ally debt issuance guaranteed under
the TLGP will be repaid in December and totals $4.5 billion.