Ally Financial's (ALLY) Capital Plan Includes Quarterly Dividend of 8c and $700M Buyback

Ally Financial Inc. (NYSE: ALLY) today announced that the Federal Reserve did not object to the company's capital plan as part of the Comprehensive Capital Analysis and Review. Ally's capital plan includes the following actions, which remain subject to consideration and approval by the Ally Board of Directors:

• a quarterly cash dividend of $0.08 per share of the company's common stock, the first of which is expected to be payable in August; and
• authorization to repurchase up to $700 million of the company's common stock from time to time through the second quarter of 2017.

Ally Chief Executive Officer Jeffrey Brown commented, "The Federal Reserve's non-objection of these capital actions is a significant milestone to Ally and speaks to the company's overall financial strength and continued focus on safety and soundness. The inaugural dividend since becoming publicly-traded is a critical step in returning capital to Ally stockholders. Further, being able to buy back common shares will serve as a key tool for driving long-term value creation."

Any shares acquired under the proposed repurchase program are expected to be used for general corporate purposes and to be available for resale, including in connection with the company's compensation and employee-benefit plans. The proposed repurchase program would enable the company to acquire shares through open market purchases or privately negotiated transactions, including through a Rule 10b5-1 plan, at the discretion of the company's management and on terms (including quantity, timing, and price) that the company's management determines to be necessary, appropriate, or advisable.

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