Ally Financial Inc. (ALLY) Earnings Call Transcript & Summary

Morning. This is Jason Goldberg. I cover the U.S. large-cap bank stocks here at Barclays. Thank you for attending our 19th Annual Global Financial Services Conference. Next up, we're very pleased to have Ally Financial. From Ally Jenn LaClair, Chief Financial Officer. Before we jump in, just keep in mind, in the upper right-hand corner of your screen, there are a few buttons. [Operator Instructions] So Jenn, good morning.

Good Morning.

Maybe the best place to start is just big picture on your perspectives. Now obviously, Ally has made considerable progress over the last 10 years, clearly establishing itself as a leading auto and insurance provider and also building the largest digital bank in the U.S. Let me just give us your view on the, what the next 10 years will hold for Ally, as investors try to grasp what the growth opportunities are ahead for you.

Great. Thank you so much, Jason, and good morning, everyone. It is an absolute pleasure to be here with all of you and to share an update on Ally. From a strategic priorities perspective, really, the first thing that we continue to focus on is executing our values for every one of our stakeholders. And that always starts, Jason, with our customers, which are 9 million strong and growing. In the second quarter, I'm sure you saw we hit the highest numbers of dealers, applications, bank customers as well as multiproduct customers. And we're about to hit about 50 consecutive quarters of growing our bank customers and 10 years of growing our dealer customers. And we've achieved that growth in our customer base, simply because of the strong value proposition that we provide to every one of our businesses and our consumers and dealers, and it starts with investing in technology, creating an easy, frictionless experience as well as delivering financial value for our customers. We were one of the first to completely eliminate overdraft fees on our checking product, and we continue to look for ways to add value for our customers. Second, our employees, we have a very simple philosophy here at Ally, which is we have to take care of those who take care of our customers. And we've been out first with a number of programs to support our employees through COVID. We just were out recently, increasing minimum wage to $20 an hour, and we've renewed our Own It program, which is a program that allows every one of our employees to be shareholders of the company. We started this program last year, and we've already seen through 2021 a 60% increase in the value of those Own It shares. So meaningfully looking for ways to differentiate for our employees. And then last but not least, relative to our values, Jason, continue to look for ways to be creative and contribute to our communities. We established our first-ever foundation. In 2020, we've continued to fund the foundation and specifically continue to look for ways to improve opportunities for minority and black investments as well as to augment educational and employment opportunities for underprivileged populations. The second priority, Jason, is really around continuing to grow and optimize every one of our businesses. And it starts first with auto. We just completed the month of August with our best origination flow since 15 years ago, continue to originate this year at a 7% yield. And for full year, we're expecting to hit about $45 billion in originations. And in the commercial side, clearly, some headwinds just in terms of inventory levels, but we are seeing some really nice natural hedges with used vehicle pricing continuing to be strong as well as lower LGD from higher collateral value. So just continuing to optimize and execute through our auto business and see a very long runway for growth in auto. And then shifting to the bank side, I think our story around being the first mover on digital deposits. We've grown that business to over $130 billion continuing to grow customers as well as balances, which have driven NIM as well as allowed us to very rapidly scale some of our newer businesses, which are moving nicely through the J curve and starting to accrete revenue as well as returns. And then last but not least, Jason, really continuing to execute and deliver a robust financial trajectory. You look at our IPO return levels were low single digits. We've kind of quadrupled our ROTCE to pre-pandemic levels, and we're well on our way to delivering a mid-teens-plus ROTCE. It's not rate dependent. It's not macroeconomic dependent. It's really reflective of the very strong businesses we've built on both sides of the balance sheet. And we've also increased book value about 80% since our IPO. So we will continue to execute that financial trajectory. And then Jason, you asked about kind of 10 years out and with the momentum that we see today as well as our track record, I can envision we are still continuing to be the preeminent auto and insurance provider in the industry as well as being that leading digital financial partner across all consumer products from the bank perspective.

So you mentioned ROTCE a couple of times. And I would say probably the most heavily debated question that we get on Ally. It's just understanding what is the sustainable return profile look like. On the second quarter earnings call, I think you increased the ROTCE target for 2022, 2023 to 15% plus. I think you said you outperformed that this year. But can you talk through whether 15% is a normalized or sustainable level for Ally? And just why is that the right level for Ally?

Yes, sure. This is a really important question, Jason, and one we spend a lot of time on in. The short answer is yes. That is the right level. We are a structurally more profitable company today than we ever have been, and it's reflective of the strong businesses that we've built. And let me get into some of those specific drivers. I do think it's important to kind of reflect on this. We are a unique company in a complex industry. So it does take some time to kind of drill in and understand the story. But if we look at our businesses and the transformation that we've driven, you think, first, about auto. We started as a captive finance company in a low-return business, and we very quickly migrated to be the #1 prime lender, kind of #1 in the belly of the curve. This is an area of the auto market that commands higher yields, it commands higher returns. And we have a unique value proposition and a unique strategic position simply because we've invested in sophisticated underwriting capabilities, servicing capabilities. We have a disposition engine through our SmartAuction platform. So we have unique capabilities in a high-return segment that we've only work to really deepen the strategic mode around over some time. And while we see really high dealer levels and application flows, we see a very long runway for growth and return optimization to come in our auto franchise. And then on the bank side, we -- as we talked about, we are one of the first movers in digital deposits. We've doubled the level of deposits since our IPO. We're at $130 billion plus in digital deposits. We have high 90-plus percent retention rates, and we've kind of completed 12 kind of consecutive years of growing those flows, which have allowed us to do 2 things: one, increase kind of the strength of the liability stack. We've run off significant high-cost 100% beta capital markets funding. For example, in unsecured, we've rolled down about $24 billion in unsecured funding at over 5% coupon, replaced out with low-cost deposits; and we also, second, see an opportunity within the 4 walls of deposits to continue to take down funding costs through CD repricing over the next several quarters. So on the liability side, tremendous transformation, much, much more strategic as well as lower cost liability stack today. And then last but not least, the newer businesses are rapidly moving through the J curve, Jason, and we see each one of those delivering a positive revenue and return contribution margin. And so as we scale our newer businesses, we expect to accrete returns over time. Now the second thing I'd say, just in addition to transforming our businesses, it's just continuing to manage risk. Credit risk is obviously one of the largest areas that we focus. If you look at our track record over the last 6 years, from a consolidated perspective, we've continued to perform under 100 basis points in NCOs. And that's because of the sophistication we've built out. We continue to augment our digital tools, harvest data to become smarter on underwriting as well as servicing. And then last but certainly not least here, Jason, thinking about capital allocation. This is a strength for Ally. We have delivered over $5 billion to shareholders via share repurchases as well as the dividend. We have lowered our share count by 25% since the inception of our buyback program, and we continue to look for ways and opportunities to deliver shareholder return through repurchases as well as the dividend. So you wrap it all up, Jason, you think about the strength of our businesses, the fact that they're not relying on rates, not relying on macroeconomics, but simply just need to continue to execute, same way we have in the past, our strong credit risk management and capital deployment, and we are very confident in that 15-plus percent return trajectory.

No, it makes sense. Now maybe delve into some of those topics a bit more. Organic growth is something we hope to spend a lot of time with, at this conference. Ally is in somewhat of a unique position relative to other banks for loan growth opportunities since the onset of the pandemic. Now obviously, the auto sector has been quite strong. But on top of that building scale in some of the other businesses like Ally Home and Ally Lending, how should investors think about loan growth from here? And just maybe should we expect the pace of growth you're generating to slow?

Yes, sure. Look, as we look across Ally, we are a growth company. I started with the customer growth that we've achieved through the second quarter, that will accompany and drive balance sheet growth, which will drive growth in revenue and returns. It's a very simple equation here. And quite frankly, Jason, we see growth opportunity across every single one of our portfolio. So starting with retail auto, which is our largest portfolio, we continue to look for ways going out into the future, doing increased dealer engagement. Right now, we have about 2/3 of our dealers that give us less than 5 contracts per month. We could easily double that, and we've continued to invest in distribution to increase access to applications, increased flows and that gives us robust opportunities in the future to continue to originate. We also have a very versatile model, right? We're seeing, right now, some of the highest levels of used originations. We've seen in the history of the company. But because we are very nimble across new, used, nameplates and have a sophisticated product set, we can take advantage of the unique dynamics across the market and continue to grow our originations and expect to continue to grow our retail auto balance sheet over time. Now commercial is a bit of a different story. We are seeing pressure on inventory. I think that's probably not news. The chip shortage continues to persist. But at some point, we will bottom out kind of end of this year, early next year, and that absolutely will be a growth driver for us. It's just going to take a little bit of time for the chip shortage to normalize and for inventory levels to normalize. You slide over to the bank, talk a lot about newer products, but let me put some numbers to the momentum we have there. In our direct-to-consumer mortgage, we will double the originations this year. We've been talking about kind of a $10 billion growth target. We're going to pull that forward into 2021, we'll likely hit $10 billion plus on our direct-to-consumer product. We expect that momentum to continue into '22 and beyond. Because we have a differentiated product and a great brand. On Ally Lending, this was a business that was just a couple of hundred million, couple of years ago, 2 years ago. We'll double the originations in Ally Lending this year. We'll achieve about $1 billion, and this is a high-growth market, high return, high yield and we originate a high FICO customer. So seeing really nice growth there as well as the opportunity for risk-adjusted returns. And then Corporate Finance continues to be a steady growth engine for the company. We actually hit the highest commitment levels. We've ever had here in Q2 and Q3, and we'd expect HFI to catch up and achieve that $8 billion that we've been talking about for some time now. And then outside of loans, I just want to hit on the securities portfolio for a minute because I think we've been very strategic about how we've managed our securities portfolio. And we're fortunate at Ally to have this great growth engine in Lending. We have a nice NIM trajectory, return trajectory that we don't have to rush into and deploy cash into securities at these rates. So we're going to continue to be really patient in terms of investment in securities. But hopefully, Jason, that gives you a bit of an overview. We're growing our customers, growing our balance sheet, and we see opportunities really across the board.

Yes. No, I want to land in there. Maybe we can try to unpack some of the things that you touched on, maybe starting just digging into the auto space. Obviously, you talked about some pretty strong trends, historically on payment rates, used car vehicles, near all-time highs. Consumer demand is strong, albeit with these chip shortages has led to low inventory levels. Ally has been a big beneficiary of all these dynamics. But at some point, right, the environment is going to begin to normalize. Maybe just provide insights in terms of how these dynamics or when these dynamics begin to shift? How are you preparing for them? And just kind of maybe your thoughts on kind of just near-term origination trends versus your expectations?

Yes, sure. I mean, I think it's been very clear that the auto ecosystem continues to be exceptionally robust this year. And I'd just like to remind everyone, as you look back through time, auto has been a very strong and durable asset class across many cycles and really comes down to the consumers' need for an auto, whether that's commuting to work, procuring goods and services, driving our kids around. For many Americans, having a car is a central part of functioning. And so we continue to see a high utility value for vehicles. To your point, auto -- retail auto continues to be high on the consumer debt payment waterfall. And so we continue to see strong payment activity and then it's a secured asset. So that also helps to protect from a loss perspective. But overall, demand has been exceptionally robust. As I mentioned, in particular, in used, as inventory levels have come down, we're seeing really strong demand in use. And we would expect new to have some latent pent-up demand with inventory levels down so low. So as inventory starts to come back, we'll be uniquely positioned to lean in new originations as well. From the supply side, chip shortage has really impacted, floor plan impacted new, but we do think that, that's going to come back over time, likely extend out to kind of mid-'22, but we do expect that to come back. And to your point, we have some really nice natural positive hedges with used vehicle values and high collateral values driving down loss, given default. As I take a step back, the dynamics this year will position us to really hit peak levels. And we talked about that in the second quarter earnings. I mean we will be at about $45 billion this year in originations at a 7% yield. It's the fourth year in a row that we're originating at yields at that level in spite of benchmark declines. Used vehicle values will be up some 25%, likely 30% this year. NCOs continue to trend at unprecedented levels. In fact, we had our first net recovery position in the second quarter here. It's first time in a 100-year history that we had a net recovery. And not only is the consumer healthy, but the dealer is healthy. We're at about 95-plus percent dealer profitability. So to your point, Jason, these trends are -- we're not modeling that they persist. In fact, if you look at that ROTCE guide that I've provided, we are expecting normalization across the board. Originations will come down, yields will come down sub-7% into kind of 6.50-plus percent yield, used vehicle values will normalize, down about 10% a year to get to pre-COVID levels in short order. And we're also modeling, Jason, that NCOs migrate back to more normalized levels in the foreseeable future in '22 and '23, kind of a rapid normalization. Now that's what we've modeled. I think, to your point, strong consumer balance sheet, continued strong asset class, there is a bull case here that would indicate that normalization will take some time. But like I've said many times in the past, we're not going to model these kind of historic highs or these trends to continue. Our mid-teens ROTCE is simply a reflection of normalized levels of profitability for the company. And then just if I can hit on a couple of other trends in the auto ecosystem, there were some inquiries around Stellantis and their announcement about building a captive. And we monitor every competitive action very closely. But in particular, on that one, it's going to take some time to build that out. We already compete shoulder to shoulder with their preferred lender and many captives across the industry and are very well positioned with our growth channel and our distribution strategy is to navigate that competitive movement. And then last but not least, Jason, just in terms of auto ecosystem, obviously, EV is attracting a lot of attention. And I just want to reiterate our position around EV. We're very well positioned to lead in EV. In fact, we have been originating against electric vehicles back to the 1990s when the first EV vehicle was manufactured. So we have capabilities there. Today, it's a small percent of our originations, but it's growing rapidly. We hit our highest level of EV originations in the second quarter. So it's small, but it's growing and we're well prepared to move as the industry evolves around EV.

Okay. A lot in there as well. And just one thing is, I guess, you mentioned originations pretty attracting $45 billion. I think your guidance was $40 billion to $45 billion. So is it safe to say that we're operating at the upper end of expectations there?

Yes, you got it, Jason.

And then just -- we got a couple of questions from the audience. You mentioned kind of used car prices, up 25%, 30%. I think there was some questions of, do you think that kits stay elevated for longer because of what we've seen with the recent hurricane?

Yes. I do think that there's a case for used vehicle values staying elevated for longer. I wouldn't necessarily say that there's one thing driving that. The hurricane could have some small impact, but there's some bigger trends there. Obviously, the chip shortage is one, I think, a lot to be determined on how quickly that is resolved. That could drive our used vehicle prices much higher for longer. There's also many fewer vehicles coming off lease. So the total number of used vehicles is expected to decline over time. And so Jason, while hurricane could have some modest impact, there are some bigger trends across the industry that could create a case for higher used vehicle values over time.

And my next question I have was on Stellantis, which you just addressed, so I'll skip that. And maybe shift gears on to the insurance side. Insurance has obviously been a strong performer over the last few years, with solid results and steady growth evidenced, written premium volumes and ongoing expansion of the products. Maybe just provide perspectives on how important this product is at the dealership level and just what's your outlook for that segment?

Yes, sure. And insurance is one of our unique products at Ally. So I do think it's important to spend some time on it. We see a lot of value in insurance, and it's really value to the consumer, value to the dealer and value to Ally. And you start with the consumer, you think about auto is one of the largest investments that a consumer makes and our insurance product helps to protect that investment from a maintenance as well as a GAAP perspective, and it's an easy to procure service as you think about kind of the synergies with purchasing your vehicle. From a dealer perspective, insurance provides access to diversified revenue and income profitability for the dealer. In fact, per transaction, insurance is about 1/3 of the profitability of a vehicle. So it's really important to dealer economics to have access to insurance products. And then from an Ally perspective, there's great synergies from a distribution through our auto channel, and we've recently realigned our insurance segment under auto to take advantage of the increased dealer count as well as the increase in dealer engagement. We think there's a long runway to continue to grow our insurance business by aligning the strategic synergies across auto and insurance. And then from a financial perspective, it provides diversification benefit. It's a product that doesn't consume balance sheet, it's not credit sensitive. And it tends to deliver countercyclic value over time. And we've seen that in 2020 as well as 2021. Our $6 billion insurance asset generated about $200 million in capital gains, realized income in 2020. We're seeing -- actually year-to-date, Friday, we're seeing a very similar number come through in 2021. And so it allows us to be opportunistic with our portfolio and generate outsized returns in some of the more volatile periods in capital markets. So we like the return profile on a bad weather year, it's 20-plus or so percent ROTCE. In a good year, it could be 30-plus percent. So it really adds significant value to Ally as well. And then as I mentioned, a long runway for growth in this product. We've continued to increase earned premiums in insurance with the increase in dealer distribution and strategies there. We see continued growth from a written and earned premium perspective. Property and casualty has come down a bit, simply because inventory has come down. But over time, as inventory increases, we should see growth in P&C written premium as well. And similar to on the auto side, there is a natural hedge there because as inventory levels have come down, we've also seen our claims and our loss levels come down on P&C as well. But net-net, Jason, really like the strategic financial value of this segment and are going to look to continue to grow it as we move forward.

All right. Maybe turning to the digital bank, Ally is kind of, I would say, earlier than most to that channel. You got mortgage brokerage and secured lending, all posting strong growth in the first half of the year. Just how you continue to differentiate yourself and build scale with these products now that basically everyone is digital?

Yes. Yes. So on the bank, I think we are still differentiated. And we have been a leader in this space over time, and you've seen the growth we've driven through our deposit business as well as what we're seeing in terms of our newer products. So we are absolutely still differentiated, and that differentiation comes from the selling. We have a simple model. There's no channel conflict. We don't have to worry about back book repricing or kind of changing our infrastructure, our distribution around. We just are simply digital. We also focus on the customer, I think, in unique ways. We've recently launched a lot of new engagement products. Our savings toolkit is an example of that. About 1/3 of our customers are enrolled in a tool that we just rolled out 18, 24 months ago. And so I think we are differentiated in our digital capabilities. And then we continue to look to financially differentiate, and that's, that announcement on eliminating overdrafts. That's a bold move for the industry and think about the great rates that we can pay, again, without repricing our back book and creating a lot of NIM drag. So I do think that we are differentiated, not only for what we are, but what we're not. So that's number one. Number two, just as we think about the strategic value of our deposit business, it's been about that liability optimization that's fueling NIM, but it's also about continuing to grow our customer expansion [indiscernible] about to hit our 17th consecutive quarter of growing our multiproduct customers. So it's really created kind of a strategic growth engine for these newer products, and that has lowered our cost to acquire. It's allowed us to scale up very quickly across invest, across our mortgage business and even across Ally Lending, which is not necessarily a cross-sell product, but it does benefit from the larger brand halo that we have at Ally Bank. So net-net, I do think we're differentiated. We won't be complacent around that. We'll continue to look for ways to add value to our customers to continue to grow from a deposit perspective as well as across the overall bank platforms.

Great. So we have about 10 minutes left, and I'm only halfway to my questions. So...

All right. I'll try to speed it up here.

But maybe shift gears to the NIM. Obviously, Ally has been a big stand out in terms of net interest margin performance relative to other banks just benefiting from the cost of funds improvement. Obviously, you've done a good job in the auto yields and strong used car pricing have helped. You've talked about that mid- to high 3% range over the 2022, 2023 time frame and maybe even doing a bit better than that. Just talk to some of the key drivers in achieving this? And just how sensitive is that to rates?

Yes, sure. And NIM is absolutely a bright spot in the story. And as we talk about our company being structurally more profitable, a big part of this is the NIM transformation that we've seen. And pre -- over the last several years, we've kind of delivered a 2% to 2.5% NIM because of the balance sheet transformation that we have driven. We expect that to be well into the 3%. We were at of 3.57% in the second quarter here. We see a long runway to continue to improve that through the end of this year and into next year. And to your question on drivers, it really is on both sides of the balance sheet. It's continuing to execute in the prime space of auto, which commands a higher yield. It's continuing to build a deeper strategic moat so that we can protect our position and protect our pricing in that space and continuing to grow out those dealer relationships that really matter. And then we've continued to invest in higher yield products. So Ally Lending is an example, growing our corporate finance book and even direct-to-consumer mortgage has helped to propel and stabilize the earning asset yield. And then on the liability side, I think we've talked about this quite a bit, but we've been able to significantly bring down cost of funds, about 150 basis points since 2019 peak. And we see an opportunity to keep that rate lower for longer, both industry dynamics where we've got some of the lowest loan-to-deposit ratios in history, that should help to slow the increase of rate paid on deposits. And then our position in deposits where we're already core funded. We have strong value not only from rate, but from digital, from low fees. So we feel really good, Jason, about navigating the next rate cycle and being able to lag and keep rates lower for longer.

I guess I don't think it's -- when you do our model, you talk about the other revenue line of the mid-$400 million range per quarter. The last several quarters, I think you've been about $500 million. Is there a new normal for that -- a new, new normal line because that line used to be in the 300s. Or should we expect that kind of recent performance to normalize?

Yes. So let me hit on some of the outsized impact. So we've taken several capital markets gains, and we'll continue to be opportunistic. But Jason, quite frankly, we don't model capital markets gains in our guide. So think about what I just mentioned on insurance, but our securities portfolios generated gains. We've had CRA gains, Ally Ventures. And so we'll continue to be very nimble, but quite frankly, some of those outsized growth numbers, we're just not modeling in the guide. We do believe that there's growth opportunities across every category of other revenue. In fact, every one of our businesses generate some kind of other revenue. We talked about insurance. In the auto space, we have a unique asset called SmartAuction. We've actually sold 6.5 million cars through our SmartAuction engine with a long runway for growth, both units and value. And we continue to see growth trajectory, as I've mentioned, through our newer products, Invest, Mortgage and Ally Lending as well. Trying to go faster here for you, Jason.

I want to make sure you have credit and capital in. But on credit, obviously, recoveries in the last quarter in auto, so it's been phenomenal. The correlation between unemployment and losses just didn't really happen. And obviously, severity is not there, given strong used car prices. But what trends are you seeing in your portfolios? And how are you thinking about loss expectations, reserve trends from here?

Yes. And I think just as you said, across the industry, seeing strong credit performance, both from frequency of default as well as loss given default. And Ally is no exception with our first recovery quarter in 100-year history in Q2. Now we would expect some of those trends to kind of pick up a bit in the last half here just because we have some seasonality. But based on kind of payment trends as well as used vehicle pricing lowering that LGD, we are expecting to be materially lower from an NCO perspective versus last year. And then I think what's important here is in the guide we've provided, we do assume rapid acceleration of NCOs. And I think as we've mentioned, strong consumer balance sheet, unemployment trends, favorable. Job openings continue to increase relative to the unemployed levels. So we do think that there's a bull case out there that could take longer to normalize, but we are not expecting that in our model. Now from a reserve perspective, we have one of the most robust reserves in the industry. We have kind of a conservative approach to our CECL modeling. But we will take that down over time as we see NCOs continue to perform as well as the path of COVID and the ultimate macroeconomics become clear to us.

Got it. And then just on capital management, you've talked about a CET1 target of 9% despite of the stock buyback you've done, you sold over 11%. Could you maybe talk to just how you're thinking about the pulling and managing capital? And then when or how do we get back to that 9% level?

Yes. Our capital levels are some of the highest we've seen in history, 11.3%. We have some kind of over $3 billion in excess capital. And really, we're going to deploy that across the 3 priorities that are -- a couple of priorities that we've mentioned many times. It starts, first, with the customers. We've talked a lot about the customer growth opportunities we have, the growth in RWA. There some technical kind of 80 basis points or so CET1 will consume just through CECL, the phase-in. But really, Jason, it starts, first and foremost, with our customers and continuing to support the growth that we see there. The second is around the buyback. We still like the economics of buyback. We obviously increased our buyback to $2 billion. It's one of the highest levels we've ever had in the company, and we'll continue to look for ways to augment our buyback program, balancing it with our strategic priorities going forward. And then the dividend, we aim to pay a competitive dividend. We've taken it up 6x in as many years, and that's an important part of the equation here. We want to make sure that our dividend is competitive. On M&A, that's something you've heard J.B. say many times, we don't have to do something, but we are a growth company. We are looking to add capabilities. So if we do find the right company, with the right customer value, synergies with Ally as well as shareholder returns, that is something that we would just look at opportunistically. But as J.B. said, it's not something that we have to do. So specifically on normalization, Jason, we're going to be patient, right? We have a great trajectory. We don't need to quickly deploy capital. We're going to make sure we get it right, to support our strategic priorities as well as to return accretive capital to our shareholders.

No, it makes sense. Makes sense. So Jenn, a lot of positive momentum to a lot of areas, wind and your sails. I guess what risks are you watching most closely? And kind of what are you doing to mitigate or address those concerns?

Yes. I mean, I think the first one, Jason, is just navigating the uncertainty that has presented itself over the last 18, 24 months. And we're doing that by continuing to have a robust balance sheet, robust cash, robust capital. We continue to hold a robust reserve. And so we believe that we are very well positioned. Should we see a large swing in the macroeconomic or the health of the consumer. But that is something, obviously, that's top of mind, not only for the consumers, but for our employees, just navigating COVID and the unique circumstances that we find ourselves in every day. Second, I'd say just from a regulatory perspective, continuing to be mindful of changing dynamics there, continuing to make sure that we maintain strong relationships, that we are doing what's right for our customers and what's right for our employees, and that typically positions us well from a regulatory perspective. But that is also something that's top of mind, and we see a lot of potential changes on the horizon there. We want to be well prepared, whether that's changes in tax rate, whether that's changes in regulation, we believe that we're well prepared for that. And obviously, cyber is a big area that we continue to invest in. We've talked about the growth in revenue, but we continue to invest in cyber and really important areas to protect our customers and to protect Ally. And then last but not least, there are so many competitors. I mean just look at your roster of attendees at your financial conference. We continue to attract competition, fintechs, big tax, they're not always operating on an even playing field, and so we have to be incredibly mindful on constantly be learning from competition and making sure that we can -- we have that value add and we can deliver the financial performance that we have guided towards. So hopefully, that gives you some color, Jason. I think I'm almost out of time here.

Yes. No, very, very helpful, Jenn. Thank you so much for participating, again to our conference.

Thank you, Jason. Have a great day.

Thank you.