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Ally Financial capital ratios exceed regulatory minimums under stress test

Ally FinancialInc. expects to see a pretax net loss of about $2.8 billion overthe nine-quarter forecast horizon considered in the Dodd-Frank Act stresstest's severely adverse scenario.

The test, which has a forecast horizon starting in the thirdquarter of 2016 and continuing through the third quarter of 2018, entails ascenario with a severe recession and includes multiple idiosyncraticoperational risk events that directly impact Ally's operations.

Due to the severity of the economic scenario, the companyexpects that light vehicle sales would decline, thereby reducing futureindustry revenue opportunities from retail and lease originations, as well asfrom dealer floorplan financing.

The company's projected capital ratios under the scenarioexceeded all regulatory minimums throughout the stress horizon.

Ally Financial's common equity Tier 1 ratio under theseverely adverse scenario is projected to be 8.9%, compared with the requiredminimum of 7.7%.

The Tier 1 capital ratio is expected to be 11.3%, comparedwith a required 9.5% minimum. Its minimum total risk-based capital ratio isexpected to be 13.5%, compared with the required minimum of 11.5%.

Ally Financial's Tier 1 leverage ratio is projected at 9.5%,compared with the required minimum of 8.2%.