ONEMAIN HOLDINGS, INC. REPORTS SECOND QUARTER 2024 RESULTS
OneMain Holdings, Inc. (NYSE: OMF) reported its Q2 2024 results, showing a pretax income of $92 million and net income of $71 million. The company's earnings per diluted share were $0.59, down from $0.85 in the prior year quarter. OneMain declared a quarterly dividend of $1.04 per share and repurchased 152,000 shares for $8 million. The Consumer and Insurance (C&I) segment reported adjusted pretax income of $163 million and adjusted net income of $122 million. Managed receivables grew 11% year-over-year to $23.7 billion. Consumer loan originations totaled $3.6 billion, down 4% from the previous year. The company's total revenue increased by 7% to $1.4 billion, driven by higher average net finance receivables.
OneMain Holdings, Inc. (NYSE: OMF) ha riportato i risultati del secondo trimestre 2024, mostrando un reddito ante imposte di 92 milioni di dollari e un reddito netto di 71 milioni di dollari. Gli utili per azione diluiti sono stati di 0,59 dollari, in calo rispetto a 0,85 dollari nello stesso trimestre dell'anno precedente. OneMain ha dichiarato un dividendo trimestrale di 1,04 dollari per azione e ha riacquistato 152.000 azioni per 8 milioni di dollari. Il segmento Consumer and Insurance (C&I) ha riportato un reddito ante imposte rettificato di 163 milioni di dollari e un reddito netto rettificato di 122 milioni di dollari. I crediti gestiti sono aumentati dell'11% anno su anno, raggiungendo i 23,7 miliardi di dollari. Le origini di prestiti al consumo sono ammontate a 3,6 miliardi di dollari, in calo del 4% rispetto all'anno precedente. Il fatturato totale dell'azienda è aumentato del 7%, raggiungendo 1,4 miliardi di dollari, sostenuto da maggiori crediti finanziari netti medi.
OneMain Holdings, Inc. (NYSE: OMF) informó sus resultados del segundo trimestre de 2024, mostrando un ingreso antes de impuestos de 92 millones de dólares y un ingreso neto de 71 millones de dólares. Las ganancias por acción diluidas fueron de 0,59 dólares, bajando de 0,85 dólares en el mismo trimestre del año anterior. OneMain declaró un dividendo trimestral de 1,04 dólares por acción y recompró 152,000 acciones por 8 millones de dólares. El segmento de Consumo y Seguros (C&I) reportó un ingreso ajustado antes de impuestos de 163 millones de dólares y un ingreso neto ajustado de 122 millones de dólares. Los créditos gestionados crecieron un 11% interanual, alcanzando 23,7 mil millones de dólares. Las originaciones de préstamos al consumo totalizaron 3,6 mil millones de dólares, un descenso del 4% respecto al año anterior. Los ingresos totales de la empresa aumentaron un 7% a 1,4 mil millones de dólares, impulsados por un mayor promedio de cuentas por cobrar financieras netas.
OneMain Holdings, Inc. (NYSE: OMF)는 2024년 2분기 결과를 발표하면서 세전 수익이 9,200만 달러이고 순이익이 7,100만 달러라고 밝혔다. 희석 주당 순이익은 0.59달러로, 전년 동기 0.85달러에서 감소했습니다. OneMain은 주당 1.04달러의 분기 배당금을 선언하고, 800만 달러에 152,000주를 재매입했습니다. 소비자 및 보험(C&I) 부문은 조정된 세전 수익이 1억 6,300만 달러와 조정된 순이익이 1억 2,200만 달러를 기록했습니다. 관리되는 채권은 전년 대비 11% 증가하여 237억 달러에 달했습니다. 소비자 대출 원천은 36억 달러로, 전년 대비 4% 감소했습니다. 회사의 총 수익은 14억 달러로 7% 증가했으며, 이는 평균 순 금융 채권 증가에 힘입은 것입니다.
OneMain Holdings, Inc. (NYSE: OMF) a annoncé ses résultats du deuxième trimestre 2024, révélant un revenu avant impôt de 92 millions de dollars et un revenu net de 71 millions de dollars. Les bénéfices par action diluée s'élevaient à 0,59 dollar, contre 0,85 dollar au cours du même trimestre de l'année précédente. OneMain a déclaré un dividende trimestriel de 1,04 dollar par action et a racheté 152 000 actions pour 8 millions de dollars. Le segment Consumer and Insurance (C&I) a rapporté un revenu avant impôt ajusté de 163 millions de dollars et un revenu net ajusté de 122 millions de dollars. Les créances gérées ont augmenté de 11 % d'une année sur l'autre, atteignant 23,7 milliards de dollars. Les origines de prêts à la consommation ont totalisé 3,6 milliards de dollars, en baisse de 4 % par rapport à l'année précédente. Le chiffre d'affaires total de l'entreprise a augmenté de 7 % pour atteindre 1,4 milliard de dollars, soutenu par une augmentation des créances financières nettes moyennes.
OneMain Holdings, Inc. (NYSE: OMF) hat seine Ergebnisse für das zweite Quartal 2024 veröffentlicht und ein Ergebnis vor Steuern von 92 Millionen US-Dollar sowie ein Nettoeinkommen von 71 Millionen US-Dollar angegeben. Der verwässerte Gewinn pro Aktie betrug 0,59 US-Dollar, was einem Rückgang von 0,85 US-Dollar im Vergleich zum Vorjahresquartal entspricht. OneMain erklärte eine quartalsweise Dividende von 1,04 US-Dollar pro Aktie und kaufte 152.000 Aktien für 8 Millionen US-Dollar zurück. Das Segment Verbrauchs- und Versicherungswesen (C&I) berichtete von einem adjustierten Ergebnis vor Steuern von 163 Millionen US-Dollar und einem adjustierten Nettoeinkommen von 122 Millionen US-Dollar. Die verwalteten Forderungen stiegen um 11 % im Vergleich zum Vorjahr auf 23,7 Milliarden US-Dollar. Die Verbraucherkreditvergaben beliefen sich auf 3,6 Milliarden US-Dollar, was einem Rückgang von 4 % gegenüber dem Vorjahr entspricht. Der Gesamtumsatz des Unternehmens stieg um 7 % auf 1,4 Milliarden US-Dollar, unterstützt durch höhere durchschnittliche Finanzforderungen.
- Managed receivables grew 11% year-over-year to $23.7 billion
- Total revenue increased by 7% to $1.4 billion
- Declared quarterly dividend of $1.04 per share
- C&I adjusted earnings per diluted share increased to $1.02 from $1.01 in the prior year quarter
- Earnings per diluted share decreased to $0.59 from $0.85 in the prior year quarter
- Consumer loan originations down 4% year-over-year to $3.6 billion
- Interest expense increased 22% year-over-year to $295 million
- Provision for finance receivable losses up $36 million compared to the prior year period
Insights
OneMain Holdings' Q2 2024 results present a mixed picture. While the company's managed receivables grew 11% year-over-year to
The company's pretax income declined by
Credit quality metrics show some deterioration, with the 30+ days delinquency ratio increasing from
On a positive note, the company's C&I adjusted earnings per share slightly improved from
The company's liquidity position remains strong, with
Overall, while OneMain Holdings is showing resilience in a challenging economic environment, investors should closely monitor credit quality trends and the impact of rising interest rates on profitability in the coming quarters.
The Q2 2024 results for OneMain Holdings reveal some concerning trends in credit quality that warrant closer scrutiny. The increase in the 30+ days delinquency ratio from
More alarming is the significant jump in net charge-offs from
On a slightly positive note, the 90+ days delinquency ratio remained stable at
The company's allowance for finance receivable losses increased by
In conclusion, the deteriorating credit metrics pose a significant risk to OneMain Holdings' future performance. Management's ability to navigate these challenges through effective underwriting and collection strategies will be important in the coming quarters.
- 2Q 2024 Diluted EPS of
$0.59 - 2Q 2024 C&I adjusted diluted EPS of
$1.02 - 2Q 2024 Managed receivables of
$23.7 billion - Declared quarterly dividend of
per share$1.04 - Repurchased 152 thousand shares for
in 2Q$8 million
On July 31, 2024, OneMain declared a quarterly dividend of
During the quarter, the Company repurchased approximately 152 thousand shares of common stock for
"We are encouraged by the direction of credit and the growth in originations through the quarter," said Doug Shulman, Chairman and CEO of OneMain. "We continue to expand our product offerings to better serve our customers and drive sustainable and profitable growth for our shareholders."
The following segment results are reported on a non-GAAP basis. Refer to the required reconciliations of non-GAAP to comparable GAAP measures at the end of this press release.
Consumer and Insurance Segment ("C&I")
C&I adjusted pretax income was
Management runs the business based on C&I capital generation, which it defines as C&I adjusted net income excluding the after-tax change in C&I allowance for finance receivable losses while still considering the current period C&I net charge-offs. C&I capital generation was
Managed receivables, which includes loans serviced for our whole loan sale partners and auto finance loans originated by third parties, were
Consumer loan originations totaled
Total revenue, comprising interest income and total other revenue, was
Interest expense was
The provision for finance receivable losses was
C&I Select Delinquency and Loss Ratios | June 30, 2024 | March 31, 2024 | June 30, 2023 | |||
Consumer loans: | ||||||
30+ days delinquency ratio | 5.45 % | 5.57 % | 5.09 % | |||
90+ days delinquency ratio | 2.33 % | 2.86 % | 2.33 % | |||
30-89 days delinquency ratio | 3.13 % | 2.72 % | 2.76 % | |||
Net charge-offs | 8.29 % | 8.58 % | 7.60 % |
Operating expense for the second quarter of 2024 was
Funding and Liquidity
As of June 30, 2024, the Company had principal debt balances outstanding of
Cash and cash equivalents, together with the Company's
Conference Call & Webcast Information
OneMain management will host a conference call and webcast to discuss the Company's results, outlook, and related matters at 9:00 am Eastern Time on Wednesday, July 31, 2024. Both the call and webcast are open to the general public. The general public is invited to listen to the call by dialing 800-343-1703 (
About OneMain Holdings, Inc.
OneMain Financial (NYSE: OMF) is the leader in offering nonprime consumers responsible access to credit and is dedicated to improving the financial well-being of hardworking Americans. We empower our customers to solve today's problems and reach a better financial future through personalized solutions available online and in 1,300 locations across 44 states. OneMain is committed to making a positive impact on the people and the communities we serve. For additional information, please visit www.OneMainFinancial.com.
Use of Non-GAAP Financial Measures
We report the operating results of Consumer and Insurance using the Segment Accounting Basis, which (i) reflects our allocation methodologies for interest expense and operating costs, to reflect the manner in which we assess our business results and (ii) excludes the impact of applying purchase accounting (eliminates premiums/discounts on our finance receivables and long-term debt at acquisition, as well as the amortization/accretion in future periods). Consumer and Insurance adjusted pretax income (loss), Consumer and Insurance adjusted net income (loss), and Consumer and Insurance adjusted earnings (loss) per diluted share are key performance measures used to evaluate the performance of our business. Consumer and Insurance adjusted pretax income (loss) represents income (loss) before income taxes on a Segment Accounting Basis and excludes restructuring charges, net loss resulting from repurchases and repayments of debt, acquisition-related transaction and integration expenses, regulatory settlements, and other items and strategic activities, which include direct costs associated with COVID-19 and the expense associated with cash-settled stock-based awards. We believe these non-GAAP financial measures are useful in assessing the profitability of our segment.
We also use Consumer and Insurance pretax capital generation and Consumer and Insurance capital generation, non-GAAP financial measures, as a key performance measure of our segment. Consumer and Insurance pretax capital generation represents Consumer and Insurance adjusted pretax income, as discussed above, and excludes the change in our Consumer and Insurance allowance for finance receivable losses in the period while still considering the Consumer and Insurance net charge-offs incurred during the period. Consumer and Insurance capital generation represents the after-tax effect of Consumer and Insurance pretax capital generation. We believe that these non-GAAP measures are useful in assessing the capital created in the period impacting the overall capital adequacy of the Company. We believe that the Company's reserves, combined with its equity, represent the Company's loss absorption capacity.
We utilize these non-GAAP measures in evaluating our performance. Additionally, these non-GAAP measures are consistent with the performance goals established in OMH's executive compensation program. These non-GAAP financial measures should be considered supplemental to, but not as a substitute for or superior to, income (loss) before income taxes, net income, or other measures of financial performance prepared in accordance with GAAP.
This document contains summarized information concerning the Company and its business, operations, financial performance and trends. No representation is made that the information in this document is complete. For additional financial, statistical and business related information see the Company's most recent Annual Report on Form 10-K and Quarterly Report on Form 10-Q filed with the
Cautionary Note Regarding Forward-Looking Statements
This document contains "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Statements preceded by, followed by or that otherwise include the words "anticipates," "appears," "assumes," "believes," "can," "continues," "could," "estimates," "expects," "forecasts," "foresees," "goal," "intends," "likely," "objective," "plans," "projects," "target," "trend," "remains," and similar expressions or future or conditional verbs such as "could," "may," "might," "should," "will" or "would" are intended to identify forward-looking statements, but these words are not the exclusive means of identifying forward-looking statements.
Forward-looking statements are not statements of historical fact but instead represent only management's current beliefs regarding future events, objectives, goals, projections, strategies, performance, and future plans, and underlying assumptions and other statements related thereto. You should not place undue reliance on these forward-looking statements. By their nature, forward-looking statements are subject to risks, uncertainties, assumptions and other important factors that may cause actual results, performance or achievements to differ materially from those expressed in or implied by such forward-looking statements. Important factors that could cause actual results, performance, or achievements to differ materially from those expressed in or implied by forward-looking statements include, without limitation, the following: adverse changes and volatility in general economic conditions, including the interest rate environment and the financial markets; the sufficiency of our allowance for finance receivable losses; increased levels of unemployment and personal bankruptcies; the current inflationary environment and related trends affecting our customers; natural or accidental events such as earthquakes, hurricanes, pandemics, floods or wildfires affecting our customers, collateral, or our facilities; a failure in or breach of our information, operational or security systems or infrastructure or those of third parties, including as a result of cyber incidents, war or other disruptions; the adequacy of our credit risk scoring models; geopolitical risks, including recent geopolitical actions outside the
If one or more of these or other risks or uncertainties materialize, or if our underlying assumptions prove to be incorrect, our actual results may vary materially from what we may have expressed or implied by these forward-looking statements. You should specifically consider the factors identified in this document that could cause actual results to differ before making an investment decision to purchase our securities. Furthermore, new risks and uncertainties arise from time to time, and it is impossible for us to predict those events or how they may affect us.
Forward looking statements included in this document speak only as of the date on which they were made. We undertake no obligation to update or revise any forward-looking statements, whether written or oral, to reflect events or circumstances after the date of this document or to reflect the occurrence of unanticipated events or the non-occurrence of anticipated events, whether as a result of new information, future developments or otherwise, except as required by law.
OneMain Holdings, Inc. | |||||||||||||||
CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED) | |||||||||||||||
Quarter Ended | Fiscal Year | ||||||||||||||
(unaudited, $ in millions, except per share amounts) | Jun 30, | Mar 31, | Dec 31, | Sep 30, | Jun 30, | 2023 | 2022 | ||||||||
Interest income | $ 1,219 | $ 1,173 | $ 1,187 | $ 1,167 | $ 1,117 | $ 4,564 | $ 4,435 | ||||||||
Interest expense | (297) | (277) | (270) | (267) | (244) | (1,019) | (892) | ||||||||
Net interest income | 922 | 896 | 917 | 900 | 873 | 3,545 | 3,543 | ||||||||
Provision for finance receivable losses | (575) | (431) | (446) | (410) | (479) | (1,721) | (1,402) | ||||||||
Net interest income after provision for finance receivable | 347 | 465 | 471 | 490 | 394 | 1,824 | 2,141 | ||||||||
Insurance | 111 | 112 | 113 | 113 | 112 | 448 | 445 | ||||||||
Investment | 30 | 32 | 32 | 32 | 27 | 116 | 61 | ||||||||
Gain on sales of finance receivables | 6 | 6 | 10 | 11 | 13 | 52 | 63 | ||||||||
Net loss on repurchases and repayments of debt | (12) | (2) | (1) | — | — | — | (27) | ||||||||
Other | 39 | 32 | 32 | 29 | 33 | 119 | 87 | ||||||||
Total other revenues | 174 | 180 | 186 | 185 | 185 | 735 | 629 | ||||||||
Operating expenses | (382) | (391) | (388) | (381) | (397) | (1,530) | (1,457) | ||||||||
Insurance policy benefits and claims | (47) | (50) | (49) | (48) | (44) | (189) | (158) | ||||||||
Total other expenses | (429) | (441) | (437) | (429) | (441) | (1,719) | (1,615) | ||||||||
Income before income taxes | 92 | 204 | 220 | 246 | 138 | 840 | 1,155 | ||||||||
Income taxes | (21) | (49) | (55) | (52) | (35) | (199) | (283) | ||||||||
Net income | $ 71 | $ 155 | $ 165 | $ 194 | $ 103 | $ 641 | $ 872 | ||||||||
Weighted average number of diluted shares | 120.2 | 120.2 | 120.1 | 120.8 | 120.6 | 120.6 | 124.4 | ||||||||
Diluted EPS | $ 0.59 | $ 1.29 | $ 1.38 | $ 1.61 | $ 0.85 | $ 5.32 | $ 7.01 | ||||||||
Book value per basic share | $ 26.33 | $ 26.81 | $ 26.60 | $ 25.86 | $ 25.39 | $ 26.60 | $ 24.91 | ||||||||
Return on assets | 1.1 % | 2.6 % | 2.7 % | 3.2 % | 1.8 % | 2.7 % | 3.9 % | ||||||||
Change in allowance for finance receivable losses | $ (79) | $ 26 | $ (31) | $ (57) | $ (94) | $ (185) | $ (216) | ||||||||
Net charge-offs | (496) | (457) | (415) | (353) | (385) | (1,536) | (1,186) | ||||||||
Provision for finance receivable losses | $ (575) | $ (431) | $ (446) | $ (410) | $ (479) | $ (1,721) | $ (1,402) |
Note: | Quarters may not sum to fiscal year due to rounding. | |
On January 1, 2023, the Company adopted ASU 2018-12, Financial Services - Insurance: Targeted Improvements to the Accounting for Long-Duration Contracts. In accordance with this standard, the Company has recast its fiscal year 2022 financial information to reflect the effects of the adoption. |
OneMain Holdings, Inc. | ||||||||||
CONSOLIDATED BALANCE SHEETS (UNAUDITED) | ||||||||||
As of | ||||||||||
(unaudited, $ in millions) | Jun 30, | Mar 31, | Dec 31, | Sep 30, | Jun 30, | |||||
Assets | ||||||||||
Cash and cash equivalents | $ 667 | $ 831 | $ 1,014 | $ 1,190 | $ 1,021 | |||||
Investment securities | 1,681 | 1,691 | 1,719 | 1,635 | 1,710 | |||||
Net finance receivables | 22,365 | 21,083 | 21,349 | 21,067 | 20,510 | |||||
Unearned insurance premium and claim reserves | (753) | (749) | (771) | (772) | (761) | |||||
Allowance for finance receivable losses | (2,564) | (2,454) | (2,480) | (2,449) | (2,392) | |||||
Net finance receivables, less unearned insurance premium and claim reserves and allowance for finance | 19,048 | 17,880 | 18,098 | 17,846 | 17,357 | |||||
Restricted cash and restricted cash equivalents | 630 | 599 | 534 | 580 | 532 | |||||
Goodwill | 1,474 | 1,437 | 1,437 | 1,437 | 1,437 | |||||
Other intangible assets | 289 | 259 | 260 | 260 | 260 | |||||
Other assets | 1,296 | 1,211 | 1,232 | 1,198 | 1,194 | |||||
Total assets | $ 25,085 | $ 23,908 | $ 24,294 | $ 24,146 | $ 23,511 | |||||
Liabilities and Shareholders' Equity | ||||||||||
Long-term debt | $ 20,671 | $ 19,520 | $ 19,813 | $ 19,851 | $ 19,195 | |||||
Insurance claims and policyholder liabilities | 594 | 597 | 615 | 599 | 616 | |||||
Deferred and accrued taxes | 10 | 34 | 9 | 6 | 5 | |||||
Other liabilities | 657 | 543 | 671 | 581 | 637 | |||||
Total liabilities | 21,932 | 20,694 | 21,108 | 21,037 | 20,453 | |||||
Common stock | 1 | 1 | 1 | 1 | 1 | |||||
Additional paid-in capital | 1,723 | 1,718 | 1,715 | 1,706 | 1,702 | |||||
Accumulated other comprehensive loss | (95) | (91) | (87) | (129) | (114) | |||||
Retained earnings | 2,263 | 2,318 | 2,285 | 2,240 | 2,168 | |||||
Treasury stock | (739) | (732) | (728) | (709) | (699) | |||||
Total shareholders' equity | 3,153 | 3,214 | 3,186 | 3,109 | 3,058 | |||||
Total liabilities and shareholders' equity | $ 25,085 | $ 23,908 | $ 24,294 | $ 24,146 | $ 23,511 |
OneMain Holdings, Inc. | ||||||||||
CONSOLIDATED KEY FINANCIAL METRICS (UNAUDITED) | ||||||||||
As of | ||||||||||
(unaudited, $ in millions) | Jun 30, | Mar 31, | Dec 31, | Sep 30, | Jun 30, | |||||
Liquidity | ||||||||||
Cash and cash equivalents | $ 667 | $ 831 | $ 1,014 | $ 1,190 | $ 1,021 | |||||
Cash and cash equivalents unavailable for general corporate purposes | 211 | 165 | 148 | 169 | 196 | |||||
Unencumbered receivables | 7,927 | 8,306 | 8,427 | 7,715 | 8,577 | |||||
Undrawn conduit facilities | 6,399 | 6,399 | 6,399 | 6,175 | 6,175 | |||||
Undrawn corporate revolver | 1,325 | 1,325 | 1,325 | 1,250 | 1,250 | |||||
Undrawn credit card revolving variable funding note facilities | 300 | 300 | — | — | — | |||||
Drawn conduit facilities | 1 | 1 | 1 | — | — | |||||
Net adjusted debt | $ 20,043 | $ 18,682 | $ 18,775 | $ 18,658 | $ 18,198 | |||||
Total Shareholders' equity | $ 3,153 | $ 3,214 | $ 3,186 | $ 3,109 | $ 3,058 | |||||
Goodwill | (1,474) | (1,437) | (1,437) | (1,437) | (1,437) | |||||
Other intangible assets | (289) | (259) | (260) | (260) | (260) | |||||
Junior subordinated debt | 172 | 172 | 172 | 172 | 172 | |||||
Adjusted tangible common equity | 1,562 | 1,690 | 1,661 | 1,584 | 1,533 | |||||
Allowance for finance receivable losses, net of tax (1) | 1,923 | 1,840 | 1,860 | 1,837 | 1,794 | |||||
Adjusted capital | $ 3,485 | $ 3,530 | $ 3,521 | $ 3,421 | $ 3,327 | |||||
Net leverage (net adjusted debt to adjusted capital) | 5.8x | 5.3x | 5.3x | 5.5x | 5.5x |
(1) | Income taxes assume a |
OneMain Holdings, Inc. | |||||||||||||||
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES (UNAUDITED) | |||||||||||||||
Quarter Ended | Fiscal Year | ||||||||||||||
(unaudited, $ in millions) | Jun 30, | Mar 31, | Dec 31, | Sep 30, | Jun 30, | 2023 | 2022 | ||||||||
Consumer & Insurance | $ 145 | $ 203 | $ 220 | $ 250 | $ 138 | $ 845 | $ 1,169 | ||||||||
Other | — | — | (1) | (4) | — | (6) | — | ||||||||
Segment to GAAP adjustment | (53) | 1 | 1 | — | — | 1 | (14) | ||||||||
Income before income taxes - GAAP basis | $ 92 | $ 204 | $ 220 | $ 246 | $ 138 | $ 840 | $ 1,155 | ||||||||
Consumer & Insurance pretax income | $ 145 | $ 203 | $ 220 | $ 250 | $ 138 | $ 845 | $ 1,169 | ||||||||
Restructuring charges | — | 27 | — | — | — | — | 7 | ||||||||
Net loss on repurchases and repayments of debt | 12 | 2 | — | — | — | — | 26 | ||||||||
Acquisition-related transaction and integration expenses | 2 | 1 | — | — | — | — | — | ||||||||
Regulatory settlements | — | — | 2 | — | 24 | 26 | — | ||||||||
Other (1) | 4 | — | 1 | 2 | — | 3 | 4 | ||||||||
Consumer & Insurance adjusted pretax income (non-GAAP) | $ 163 | $ 233 | $ 223 | $ 252 | $ 162 | $ 874 | $ 1,206 | ||||||||
Reconciling items (2) | $ (71) | $ (29) | $ (2) | $ (2) | $ (24) | $ (28) | $ (51) | ||||||||
Consumer & Insurance | $ 22,428 | $ 21,083 | $ 21,349 | $ 21,068 | $ 20,511 | $ 21,349 | $ 19,987 | ||||||||
Segment to GAAP adjustment | (63) | — | — | (1) | (1) | — | (1) | ||||||||
Net finance receivables - GAAP basis | $ 22,365 | $ 21,083 | $ 21,349 | $ 21,067 | $ 20,510 | $ 21,349 | $ 19,986 | ||||||||
Consumer & Insurance | $ 2,571 | $ 2,454 | $ 2,480 | $ 2,449 | $ 2,392 | $ 2,480 | $ 2,315 | ||||||||
Segment to GAAP adjustment | (7) | — | — | — | — | — | (4) | ||||||||
Allowance for finance receivable losses - GAAP basis | $ 2,564 | $ 2,454 | $ 2,480 | $ 2,449 | $ 2,392 | $ 2,480 | $ 2,311 |
Note: | Quarters may not sum to fiscal year due to rounding. | |
On January 1, 2023, the Company adopted ASU 2018-12, Financial Services - Insurance: Targeted Improvements to the Accounting for Long-Duration Contracts. In accordance with this standard, the Company has recast its fiscal year 2022 financial information to reflect the effects of the adoption. | ||
(1) | Includes strategic activities and other items. | |
(2) | Reconciling items consist of Segment to GAAP adjustment and the adjustments to Pretax income – segment accounting basis for C&I and Other. The adjustments to Other adjusted pretax income (loss) are not disclosed in the table above due to immateriality. |
OneMain Holdings, Inc. | |||||||||||||||
CONSUMER & INSURANCE SEGMENT (UNAUDITED) (Non-GAAP) | |||||||||||||||
Quarter Ended | Fiscal Year | ||||||||||||||
(unaudited, in millions, except per share amounts) | Jun 30, | Mar 31, | Dec 31, | Sep 30, | Jun 30, | 2023 | 2022 | ||||||||
Interest income | $ 1,210 | $ 1,172 | $ 1,186 | $ 1,166 | $ 1,115 | $ 4,559 | $ 4,429 | ||||||||
Interest expense | (295) | (276) | (271) | (265) | (242) | (1,015) | (886) | ||||||||
Net interest income | 915 | 896 | 915 | 901 | 873 | 3,544 | 3,543 | ||||||||
Provision for finance receivable losses | (515) | (431) | (446) | (410) | (479) | (1,721) | (1,399) | ||||||||
Net interest income after provision for finance receivable losses | 400 | 465 | 469 | 491 | 394 | 1,823 | 2,144 | ||||||||
Insurance | 111 | 112 | 113 | 113 | 112 | 448 | 445 | ||||||||
Investment | 30 | 32 | 32 | 32 | 27 | 116 | 61 | ||||||||
Gain on sales of finance receivables | 6 | 6 | 10 | 11 | 13 | 52 | 63 | ||||||||
Other | 37 | 30 | 30 | 26 | 30 | 111 | 75 | ||||||||
Total other revenues | 184 | 180 | 185 | 182 | 182 | 727 | 644 | ||||||||
Operating expenses | (374) | (362) | (382) | (373) | (370) | (1,487) | (1,424) | ||||||||
Insurance policy benefits and claims | (47) | (50) | (49) | (48) | (44) | (189) | (158) | ||||||||
Total other expenses | (421) | (412) | (431) | (421) | (414) | (1,676) | (1,582) | ||||||||
Adjusted pretax income (non-GAAP) | 163 | 233 | 223 | 252 | 162 | 874 | 1,206 | ||||||||
Income taxes (1) | (41) | (58) | (56) | (63) | (40) | (219) | (302) | ||||||||
Adjusted net income (non-GAAP) | $ 122 | $ 175 | $ 167 | $ 189 | $ 122 | $ 655 | $ 904 | ||||||||
Weighted average number of diluted shares | 120.2 | 120.2 | 120.1 | 120.8 | 120.6 | 120.6 | 124.4 | ||||||||
C&I adjusted diluted EPS | $ 1.02 | $ 1.45 | $ 1.39 | $ 1.57 | $ 1.01 | $ 5.43 | $ 7.27 | ||||||||
Note: | Quarters may not sum to fiscal year due to rounding. | |
On January 1, 2023, the Company adopted ASU 2018-12, Financial Services - Insurance: Targeted Improvements to the Accounting for Long-Duration Contracts. In accordance with this standard, the Company has recast its fiscal year 2022 financial information to reflect the effects of the adoption. | ||
(1) | Income taxes assume a |
OneMain Holdings, Inc. | |||||||||||||||
CONSUMER & INSURANCE SEGMENT METRICS (UNAUDITED) | |||||||||||||||
Quarter Ended | Fiscal Year | ||||||||||||||
(unaudited, $ in millions) | Jun 30, | Mar 31, | Dec 31, | Sep 30, | Jun 30, | 2023 | 2022 | ||||||||
Net finance receivables - personal loans | $ 20,073 | $ 19,854 | $ 20,274 | $ 20,176 | $ 19,797 | $ 20,274 | $ 19,498 | ||||||||
Net finance receivables - auto finance | 1,889 | 843 | 745 | 660 | 555 | 745 | 382 | ||||||||
Net finance receivables - consumer loans | 21,962 | 20,697 | 21,019 | 20,836 | 20,352 | 21,019 | 19,880 | ||||||||
Net finance receivables - credit cards | 466 | 386 | 330 | 232 | 159 | 330 | 107 | ||||||||
Net finance receivables | $ 22,428 | $ 21,083 | $ 21,349 | $ 21,068 | $ 20,511 | $ 21,349 | $ 19,987 | ||||||||
Allowance for finance receivable losses | $ 2,571 | $ 2,454 | $ 2,480 | $ 2,449 | $ 2,392 | $ 2,480 | $ 2,315 | ||||||||
Allowance ratio | 11.46 % | 11.64 % | 11.62 % | 11.62 % | 11.66 % | 11.62 % | 11.58 % | ||||||||
Net finance receivables | 22,428 | 21,083 | 21,349 | 21,068 | 20,511 | 21,349 | 19,987 | ||||||||
Finance receivables serviced for our whole loan sale partners | 1,229 | 871 | 882 | 864 | 849 | 882 | 766 | ||||||||
Managed receivables | $ 23,657 | $ 21,954 | $ 22,231 | $ 21,932 | $ 21,360 | $ 22,231 | $ 20,753 | ||||||||
Average net finance receivables - personal loans | $ 19,937 | $ 20,117 | $ 20,273 | $ 20,032 | $ 19,495 | $ 19,788 | $ 19,151 | ||||||||
Average net finance receivables - auto finance | 1,843 | 786 | 707 | 608 | 504 | 559 | 226 | ||||||||
Average net finance receivables - consumer loans | 21,780 | 20,903 | 20,980 | 20,640 | 19,999 | 20,347 | 19,377 | ||||||||
Average net finance receivables - credit cards | 430 | 364 | 281 | 193 | 137 | 181 | 65 | ||||||||
Average net receivables | 22,210 | 21,267 | 21,261 | 20,833 | 20,136 | 20,528 | 19,442 | ||||||||
Average receivables serviced for our whole loan sale partners | 1,195 | 867 | 881 | 864 | 852 | 852 | 610 | ||||||||
Average managed receivables | $ 23,405 | $ 22,134 | $ 22,142 | $ 21,697 | $ 20,988 | $ 21,380 | $ 20,052 | ||||||||
Note: | Ratios may not sum due to rounding. |
OneMain Holdings, Inc. | |||||||||||||||
CONSUMER & INSURANCE KEY METRICS (UNAUDITED) (Non-GAAP) | |||||||||||||||
Quarter Ended | Fiscal Year | ||||||||||||||
(unaudited, in millions) | Jun 30, | Mar 31, | Dec 31, | Sep 30, | Jun 30, | 2023 | 2022 | ||||||||
Adjusted pretax income (non-GAAP) | $ 163 | $ 233 | $ 223 | $ 252 | $ 162 | $ 874 | $ 1,206 | ||||||||
Provision for finance receivable losses | 515 | 431 | 446 | 410 | 479 | 1,721 | 1,399 | ||||||||
Net charge-offs | (496) | (457) | (415) | (353) | (385) | (1,536) | (1,186) | ||||||||
Change in C&I allowance for finance receivable losses | 19 | (26) | 31 | 57 | 94 | 185 | 213 | ||||||||
Pretax capital generation (non-GAAP) | 182 | 207 | 254 | 309 | 256 | 1,059 | 1,419 | ||||||||
Capital generation, net of tax(1) (non-GAAP) | $ 136 | $ 155 | $ 191 | $ 232 | $ 192 | $ 794 | $ 1,064 | ||||||||
C&I average net receivables | $ 22,210 | $ 21,267 | $ 21,261 | $ 20,833 | $ 20,136 | $ 20,528 | $ 19,442 | ||||||||
Capital generation return on receivables (non-GAAP) | 2.9 % | 2.9 % | 3.6 % | 4.4 % | 3.8 % | 3.9 % | 5.5 % | ||||||||
Note: | Consumer & Insurance financial information is presented on an adjusted Segment Accounting Basis. Amounts may not sum to fiscal year due to rounding. | |
On January 1, 2023, the Company adopted ASU 2018-12, Financial Services - Insurance: Targeted Improvements to the Accounting for Long-Duration Contracts. In accordance with this standard, the Company has recast its fiscal year 2022 financial information to reflect the effects of the adoption. | ||
(1) | Income taxes assume a |
OneMain Holdings, Inc. | |||||||||||||||
CONSUMER & INSURANCE CONSUMER LOANS METRICS (UNAUDITED) | |||||||||||||||
Quarter Ended | Fiscal Year | ||||||||||||||
(unaudited, $ in millions) | Jun 30, | Mar 31, | Dec 31, | Sep 30, | Jun 30, | 2023 | 2022 | ||||||||
Gross charge-offs | $ 553 | $ 522 | $ 468 | $ 410 | $ 446 | $ 1,768 | $ 1,431 | ||||||||
Recoveries | (75) | (77) | (60) | (63) | (67) | (258) | (252) | ||||||||
Net charge-offs | $ 478 | $ 445 | $ 408 | $ 347 | $ 379 | $ 1,510 | $ 1,179 | ||||||||
Gross charge-off ratio | 9.68 % | 10.05 % | 8.82 % | 7.89 % | 8.94 % | 8.69 % | 7.39 % | ||||||||
Recovery ratio | (1.39 %) | (1.48 %) | (1.13 %) | (1.21 %) | (1.34 %) | (1.27 %) | (1.30 %) | ||||||||
Net charge-off ratio | 8.29 % | 8.58 % | 7.70 % | 6.68 % | 7.60 % | 7.42 % | 6.09 % | ||||||||
Average net receivables | $ 21,780 | $ 20,903 | $ 20,980 | $ 20,640 | $ 19,999 | $ 20,346 | $ 19,377 | ||||||||
Yield | 21.9 % | 22.1 % | 22.1 % | 22.2 % | 22.2 % | 22.2 % | 22.8 % | ||||||||
Origination volume | $ 3,582 | $ 2,523 | $ 3,014 | $ 3,278 | $ 3,742 | $ 12,851 | $ 13,879 | ||||||||
30+ delinquency | $ 1,198 | $ 1,153 | $ 1,294 | $ 1,156 | $ 1,036 | $ 1,294 | $ 1,154 | ||||||||
90+ delinquency | $ 511 | $ 591 | $ 605 | $ 535 | $ 474 | $ 605 | $ 544 | ||||||||
30-89 delinquency | $ 687 | $ 562 | $ 689 | $ 621 | $ 562 | $ 689 | $ 610 | ||||||||
30+ delinquency ratio | 5.45 % | 5.57 % | 6.16 % | 5.55 % | 5.09 % | 6.16 % | 5.80 % | ||||||||
90+ delinquency ratio | 2.33 % | 2.86 % | 2.88 % | 2.57 % | 2.33 % | 2.88 % | 2.74 % | ||||||||
30-89 delinquency ratio | 3.13 % | 2.72 % | 3.28 % | 2.98 % | 2.76 % | 3.28 % | 3.07 % |
Note: | Consumer & Insurance financial information is presented on a Segment Accounting Basis. Delinquency ratios are calculated as a percentage of C&I personal loan net finance receivables. Amounts may not sum due to rounding. | |
Defined Terms
- Adjusted capital = adjusted tangible common equity + allowance for finance receivable losses (ALLL), net of tax
- Adjusted tangible common equity (TCE) = total shareholders' equity – goodwill – other intangible assets + junior subordinated debt
- Auto finance = financing at the point of purchase through a network of auto dealerships
- Available cash and cash equivalents = cash and cash equivalents – cash and cash equivalents held at our regulated insurance subsidiaries or is unavailable for general corporate purposes
- Average assets = average of monthly average assets (assets at the beginning and end of each month divided by two) in the period
- Average managed receivables = C&I average net receivables + average receivables serviced for our whole loan sale partners
- C&I adjusted diluted EPS = C&I adjusted net income (non-GAAP) / weighted average diluted shares
- Capital generation = C&I adjusted net income – change in C&I allowance for finance receivable losses, net of tax
- Capital generation return on receivables(1) = annualized capital generation / C&I average net receivables
- Consumer loans = personal loans and auto finance
- Finance receivables serviced for our whole loan sale partners = unpaid principal balance plus accrued interest of loans sold as part of our whole loan sale program
- Gross charge-off ratio(1) = annualized gross charge-offs / average net receivables
- Managed receivables = C&I net finance receivables + finance receivables serviced for our whole loan sale partners + auto finance loans originated by third parties
- Net adjusted debt = long-term debt – junior subordinated debt – available cash and cash equivalents
- Net charge-off ratio(1) = annualized net charge-offs / average net receivables
- Net leverage = net adjusted debt / adjusted capital
- Opex ratio = annualized C&I operating expenses / average managed receivables
- Other net revenue = other revenues – insurance policy benefits and claims expense
- Personal loans = loans secured by titled collateral or unsecured and offered through our branch network, central operations, or digital platform
- Pretax capital generation = C&I pretax adjusted net income – change in C&I allowance for finance receivable losses
- Purchase volume = credit card purchase transactions + cash advances – returns
- Return on assets (ROA) = annualized net income / average total assets
- Return on receivables (C&I ROR) = annualized C&I adjusted net income / C&I average net receivables
- Total Revenue = C&I interest income + C&I total other revenue
- Unencumbered receivables = unencumbered unpaid principal balance of personal loans and credit cards. For precompute personal loans, unpaid principal balance is the gross contractual payments less the unaccreted balance of unearned finance charges. Credit cards exclude billed interest, fees, and closed accounts with balances
(1) | 2Q24 adjusted for policy alignment associated with the Foursight acquisition. |
OneMain Holdings, Inc.
Investor Contact:
Peter R. Poillon, 212-359-2432
Peter.Poillon@omf.com
Media Contact:
Kelly Ogburn, 410-537-9028
Kelly.Ogburn@omf.com
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SOURCE OneMain Holdings, Inc.
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