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ONEMAIN HOLDINGS, INC. REPORTS THIRD QUARTER 2024 RESULTS

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OneMain Holdings (NYSE: OMF) reported third quarter 2024 results with net income of $157 million and earnings per diluted share of $1.31, down from $194 million and $1.61 in the prior year quarter. The company's managed receivables grew 11% to $24.3 billion, with consumer loan originations up 13% to $3.7 billion. Total revenue increased 8% to $1.5 billion. The company declared a quarterly dividend of $1.04 per share and repurchased 420,000 shares for $19 million. The Consumer and Insurance segment reported adjusted pretax income of $202 million and adjusted net income of $151 million.

OneMain Holdings (NYSE: OMF) ha riportato i risultati del terzo trimestre 2024 con un utile netto di 157 milioni di dollari e un utile per azione diluita di 1,31 dollari, in calo rispetto ai 194 milioni di dollari e 1,61 dollari del trimestre dell'anno precedente. Le ricevute gestite dall'azienda sono cresciute dell'11% fino a 24,3 miliardi di dollari, con le origini dei prestiti ai consumatori aumentate del 13% a 3,7 miliardi di dollari. Il fatturato totale è aumentato dell'8% fino a 1,5 miliardi di dollari. L'azienda ha dichiarato un dividendo trimestrale di 1,04 dollari per azione e ha riacquistato 420.000 azioni per 19 milioni di dollari. Il segmento Consumatori e Assicurazione ha riportato un utile lordo rettificato di 202 milioni di dollari e un utile netto rettificato di 151 milioni di dollari.

OneMain Holdings (NYSE: OMF) reportó los resultados del tercer trimestre de 2024 con una ganancia neta de 157 millones de dólares y ganancias por acción diluida de 1,31 dólares, por debajo de los 194 millones de dólares y 1,61 dólares en el trimestre del año anterior. Las cuentas por cobrar gestionadas por la empresa crecieron un 11% hasta 24,3 mil millones de dólares, con el origen de préstamos al consumidor aumentando un 13% a 3,7 mil millones de dólares. Los ingresos totales aumentaron un 8% hasta 1,5 mil millones de dólares. La empresa declaró un dividendo trimestral de 1,04 dólares por acción y recompró 420,000 acciones por 19 millones de dólares. El segmento de Consumidores y Seguros reportó un ingreso previo a impuestos ajustado de 202 millones de dólares y un ingreso neto ajustado de 151 millones de dólares.

OneMain Holdings (NYSE: OMF)는 2024년 3분기 실적을 발표하며 순이익 1억 5,700만 달러와 희석 주당 순이익 1.31달러를 기록했으며, 이는 작년 동기 1억 9,400만 달러와 1.61달러에서 감소한 수치입니다. 회사가 관리하는 채권은 11% 증가하여 243억 달러에 달하며, 소비자 대출 기원은 13% 상승하여 37억 달러에 이릅니다. 총 수익은 8% 증가하여 15억 달러에 도달했습니다. 회사는 주당 1.04달러의 분기 배당금을 선언하였고, 1,200만 달러에 42만 주를 재매입했습니다. 소비자 및 보험 부문은 조정 전 세전 수익 2억 2백만 달러와 조정된 순이익 1억 5,100만 달러를 보고했습니다.

OneMain Holdings (NYSE: OMF) a annoncé les résultats du troisième trimestre 2024 avec un bénéfice net de 157 millions de dollars et un bénéfice par action diluée de 1,31 dollar, en baisse par rapport à 194 millions de dollars et 1,61 dollar au cours du même trimestre de l'année précédente. Les créances gérées de l'entreprise ont crû de 11 % pour atteindre 24,3 milliards de dollars, les origines de prêts à la consommation ayant augmenté de 13 % pour s'élever à 3,7 milliards de dollars. Le chiffre d'affaires total a augmenté de 8 % pour atteindre 1,5 milliard de dollars. L'entreprise a déclaré un dividende trimestriel de 1,04 dollar par action et a racheté 420 000 actions pour 19 millions de dollars. Le segment Consommation et Assurance a déclaré un bénéfice avant impôts ajusté de 202 millions de dollars et un bénéfice net ajusté de 151 millions de dollars.

OneMain Holdings (NYSE: OMF) hat die Ergebnisse des dritten Quartals 2024 mit einem Nettogewinn von 157 Millionen Dollar und einem verwässerten Gewinn pro Aktie von 1,31 Dollar veröffentlicht, was einem Rückgang gegenüber 194 Millionen Dollar und 1,61 Dollar im Vorjahresquartal entspricht. Die verwalteten Forderungen des Unternehmens wuchsen um 11% auf 24,3 Milliarden Dollar, während die Verbraucher-Kreditvergaben um 13% auf 3,7 Milliarden Dollar zunahmen. Der Gesamterlös stieg um 8% auf 1,5 Milliarden Dollar. Das Unternehmen erklärte eine vierteljährliche Dividende von 1,04 Dollar pro Aktie und hat 420.000 Aktien für 19 Millionen Dollar zurückgekauft. Der Bereich Verbraucher und Versicherungen meldete ein bereinigtes Ergebnis vor Steuern von 202 Millionen Dollar und ein bereinigtes Nettoergebnis von 151 Millionen Dollar.

Positive
  • Managed receivables grew 11% YoY to $24.3 billion
  • Consumer loan originations increased 13% YoY to $3.7 billion
  • Total revenue up 8% YoY to $1.5 billion
  • Interest income grew 9% YoY to $1.3 billion
  • Share repurchase program extended to December 31, 2026
Negative
  • Net income decreased to $157M from $194M YoY
  • EPS declined to $1.31 from $1.61 YoY
  • Interest expense increased 13% YoY to $299M
  • Provision for finance receivable losses up by $102M YoY
  • Net charge-offs increased to 7.33% from 6.68% YoY

Insights

The Q3 2024 results show mixed performance with some concerning trends. Net income decreased to $157 million from $194 million year-over-year, with diluted EPS dropping to $1.31 from $1.61. The provision for finance receivable losses increased significantly by $102 million compared to last year.

However, there are positive indicators: managed receivables grew 11% to $24.3 billion and loan originations increased 13% to $3.7 billion. Revenue growth was solid at 8%, reaching $1.5 billion. The company maintains strong liquidity with $577 million in cash and $8.1 billion in undrawn credit facilities.

The rising delinquency ratios and net charge-offs (increasing to 7.33% from 6.68%) warrant attention, suggesting potential credit quality deterioration in the loan portfolio.

  • 3Q 2024 Diluted EPS of $1.31
  • 3Q 2024 C&I adjusted diluted EPS of $1.26
  • 3Q 2024 Managed receivables of $24.3 billion
  • Declared quarterly dividend of $1.04 per share
  • Repurchased 420 thousand shares for $19 million in 3Q

NEW YORK, Oct. 30, 2024 /PRNewswire/ -- OneMain Holdings, Inc. (NYSE: OMF), the leader in offering nonprime consumers responsible access to credit, today reported pretax income of $207 million and net income of $157 million for the third quarter of 2024, compared to $246 million and $194 million, respectively, in the prior year quarter. Earnings per diluted share were $1.31 in the third quarter of 2024, compared to $1.61 in the prior year quarter.

On October 30, 2024, OneMain declared a quarterly dividend of $1.04 per share, payable on November 18, 2024, to record holders of the Company's common stock as of the close of business on November 12, 2024.

On October 16, 2024, the Board of Directors extended the share repurchase program to December 31, 2026. During the quarter, the Company repurchased approximately 420 thousand shares of common stock for $19 million.

"OneMain delivered excellent performance for the quarter with strong originations and revenue growth and continued improvements in credit trends," said Doug Shulman, Chairman and CEO of OneMain. "Our investments in technology, data science and new products position us well to drive shareholder value now and in the future."

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 $202 million and adjusted net income was $151 million for the third quarter of 2024, compared to $252 million and $189 million, respectively, in the prior year quarter. Adjusted earnings per diluted share were $1.26 for the third quarter of 2024, compared to $1.57 in the prior year quarter.

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 $211 million for the third quarter 2024, compared to $232 million in the prior year quarter. The decline was primarily driven by higher net charge-offs, partially offset by increased revenue from portfolio growth in the current quarter compared to the prior year period.

Managed receivables, which includes loans serviced for our whole loan sale partners and auto finance loans originated by third parties, were $24.3 billion at September 30, 2024, up 11% from $21.9 billion at September 30, 2023.

Consumer loan originations totaled $3.7 billion in the third quarter of 2024, up 13% from $3.3 billion in the prior year quarter.

Total revenue, comprising interest income and total other revenue, was $1.5 billion in the second quarter of 2024, up 8% from $1.3 billion in the prior year quarter. Interest income in the third quarter of 2024 was $1.3 billion, up 9% from $1.2 billion in the prior year quarter. This growth was driven by higher average net finance receivables.

Interest expense was $299 million in the third quarter of 2024, up 13% from $265 million in the prior year quarter, due to an increase in average debt to support our receivables growth and a higher average cost of funds.

The provision for finance receivable losses was $512 million in the third quarter of 2024, up $102 million compared to the prior year period. During the third quarter of 2024, the allowance for finance receivable losses increased $80 million driven by growth in receivables.

C&I Select Delinquency and Loss Ratios

September 30, 2024


June 30, 2024


September 30, 2023

Consumer loans:






30+ days delinquency ratio

5.63

%

5.45

%

5.55 %

90+ days delinquency ratio

2.49

%

2.33

%

2.57 %

30-89 days delinquency ratio

3.14

%

3.13

%

2.98 %

Net charge-offs

7.33

%

8.29

%

6.68 %

 

Operating expense for the third quarter of 2024 was $396 million, up 6% from $373 million in the prior year quarter reflecting continued investment in the business and the addition of Foursight, partially offset by focused expense initiatives.

Funding and Liquidity

As of September 30, 2024, the Company had principal debt balances outstanding of $21.4 billion, 59% of which was secured. The Company had $577 million of cash and cash equivalents, which included $266 million of cash and cash equivalents held at regulated insurance subsidiaries or for other operating activities that are unavailable for general corporate purposes.

Cash and cash equivalents, together with the Company's $1.1 billion of undrawn committed capacity from an unsecured corporate revolver, $7.0 billion of undrawn committed capacity under revolving conduit facilities and credit card variable funding note facilities, and $9.0 billion of unencumbered receivables, provides significant liquidity resources.

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, October 30, 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 (U.S. domestic) or 785-424-1116 (international), and using conference ID 14920, or via a live audio webcast through the Investor Relations section of the OneMain Financial website at http://investor.onemainfinancial.com. For those unable to listen to the live broadcast, a replay will be available on our website after the event. An investor presentation will be available on the Investor Relations page of the OneMain Financial website prior to the start of the conference call.

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 U.S. Securities and Exchange Commission (the "SEC"), as well as the Company's other reports filed with the SEC from time to time, which are or will be available in the Investor Relations section of the OneMain Financial website (www.omf.com) and the SEC's website (www.sec.gov).

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 U.S.; adverse changes in our ability to attract and retain employees or key executives; increased competition or adverse changes in customer responsiveness to our distribution channels or products; changes in federal, state, or local laws, regulations, or regulatory policies and practices or increased regulatory scrutiny of our business or industry; risks associated with our insurance operations; the costs and effects of any actual or alleged violations of any federal, state, or local laws, rules or regulations; the costs and effects of any fines, penalties, judgments, decrees, orders, inquiries, investigations, subpoenas, or enforcement or other proceedings of any governmental or quasi-governmental agency or authority; our substantial indebtedness and our continued ability to access the capital markets and maintain adequate current sources of funds to satisfy our cash flow requirements; our ability to comply with all of our covenants; the effects of any downgrade of our debt ratings by credit rating agencies; and other risks and uncertainties described in the "Risk Factors" and "Management's Discussion and Analysis" sections of the Company's most recent Form 10-K filed with the SEC and in the Company's other filings with the SEC from time to time.

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)


Sep 30,
2024


Jun 30,
2024


Mar 31,
2024


Dec 31,
2023


Sep 30,
2023



2023


2022



















Interest income


$       1,282


$       1,219


$       1,173


$       1,187


$       1,167



$       4,564


$       4,435


Interest expense


(301)


(297)


(277)


(270)


(267)



(1,019)


(892)


Net interest income


981


922


896


917


900



3,545


3,543


Provision for finance receivable losses


(512)


(575)


(431)


(446)


(410)



(1,721)


(1,402)


Net interest income after provision for finance receivable losses


469


347


465


471


490



1,824


2,141



















Insurance


111


111


112


113


113



448


445


Investment


24


30


32


32


32



116


61


Gain on sales of finance receivables


6


6


6


10


11



52


63


Net loss on repurchases and repayments of debt


(1)


(12)


(2)


(1)





(27)


Other


42


39


32


32


29



119


87


Total other revenues


182


174


180


186


185



735


629



















Operating expenses


(401)


(382)


(391)


(388)


(381)



(1,530)


(1,457)


Insurance policy benefits and claims


(43)


(47)


(50)


(49)


(48)



(189)


(158)


Total other expenses


(444)


(429)


(441)


(437)


(429)



(1,719)


(1,615)



















Income before income taxes


207


92


204


220


246



840


1,155


Income taxes


(50)


(21)


(49)


(55)


(52)



(199)


(283)


Net income


$          157


$            71


$          155


$          165


$          194



$          641


$          872



















Weighted average number of diluted shares


120.1


120.2


120.2


120.1


120.8



120.6


124.4


Diluted EPS


$         1.31


$         0.59


$         1.29


$         1.38


$         1.61



$         5.32


$         7.01


Book value per basic share


$       26.87


$       26.33


$       26.81


$       26.60


$       25.86



$       26.60


$       24.91


Return on assets


2.5 %


1.1 %


2.6 %


2.7 %


3.2 %



2.7 %


3.9 %



















Change in allowance for finance receivable losses


$         (81)


$         (79)


$            26


$         (31)


$         (57)



$       (185)


$       (216)


Net charge-offs


(431)


(496)


(457)


(415)


(353)



(1,536)


(1,186)


Provision for finance receivable losses


$       (512)


$       (575)


$       (431)


$       (446)


$       (410)



$    (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)


Sep 30,
2024


Jun 30,
2024


Mar 31,
2024


Dec 31,
2023


Sep 30,
2023












Assets











Cash and cash equivalents


$          577


$          667


$          831


$       1,014


$       1,190

Investment securities


1,581


1,681


1,691


1,719


1,635

Net finance receivables


23,075


22,365


21,083


21,349


21,067

Unearned insurance premium and claim reserves


(765)


(753)


(749)


(771)


(772)

Allowance for finance receivable losses


(2,645)


(2,564)


(2,454)


(2,480)


(2,449)

Net finance receivables, less unearned insurance premium and claim reserves and allowance
for finance receivable losses


19,665


19,048


17,880


18,098


17,846

Restricted cash and restricted cash equivalents


693


630


599


534


580

Goodwill


1,474


1,474


1,437


1,437


1,437

Other intangible assets


288


289


259


260


260

Other assets


1,300


1,296


1,211


1,232


1,198

Total assets


$     25,578


$     25,085


$     23,908


$     24,294


$     24,146












Liabilities and Shareholders' Equity











Long-term debt


$     21,137


$     20,671


$     19,520


$     19,813


$     19,851

Insurance claims and policyholder liabilities


597


594


597


615


599

Deferred and accrued taxes


29


10


34


9


6

Other liabilities


607


657


543


671


581

Total liabilities


22,370


21,932


20,694


21,108


21,037












Common stock


1


1


1


1


1

Additional paid-in capital


1,728


1,723


1,718


1,715


1,706

Accumulated other comprehensive loss


(59)


(95)


(91)


(87)


(129)

Retained earnings


2,295


2,263


2,318


2,285


2,240

Treasury stock


(757)


(739)


(732)


(728)


(709)

Total shareholders' equity


3,208


3,153


3,214


3,186


3,109

Total liabilities and shareholders' equity


$     25,578


$     25,085


$     23,908


$     24,294


$     24,146

 

OneMain Holdings, Inc.

CONSOLIDATED KEY FINANCIAL METRICS (UNAUDITED)






As of












(unaudited, $ in millions)


Sep 30,
2024


Jun 30,
2024


Mar 31,
2024


Dec 31,
2023


Sep 30,
2023












Liquidity











Cash and cash equivalents


$          577


$          667


$          831


$       1,014


$       1,190

Cash and cash equivalents unavailable for general corporate purposes


266


211


165


148


169

Unencumbered receivables


9,017


8,060


8,306


8,427


7,715

Undrawn conduit facilities


6,749


6,399


6,399


6,399


6,175

Undrawn corporate revolver


1,125


1,325


1,325


1,325


1,250

Undrawn credit card revolving variable funding note facilities


300


300


300



Drawn conduit facilities


176


1


1


1













Net adjusted debt


$     20,653


$     20,043


$     18,682


$     18,775


$     18,658












Total Shareholders' equity


$       3,208


$       3,153


$       3,214


$       3,186


$       3,109

Goodwill


(1,474)


(1,474)


(1,437)


(1,437)


(1,437)

Other intangible assets


(288)


(289)


(259)


(260)


(260)

Junior subordinated debt


172


172


172


172


172

Adjusted tangible common equity


1,618


1,562


1,690


1,661


1,584

Allowance for finance receivable losses, net of tax (1)


1,984


1,923


1,840


1,860


1,837

Adjusted capital


$       3,602


$       3,485


$       3,530


$       3,521


$       3,421












Net leverage (net adjusted debt to adjusted capital)


5.7x


5.8x


5.3x


5.3x


5.5x




(1)

Income taxes assume a 25% tax rate.

 

OneMain Holdings, Inc.
















RECONCILIATION OF NON-GAAP FINANCIAL MEASURES (UNAUDITED)
















Quarter Ended



Fiscal Year

















(unaudited, $ in millions)


Sep 30,
2024


Jun 30,
2024


Mar 31,
2024


Dec 31,
2023


Sep 30,
2023



2023


2022

















Consumer & Insurance


$          200


$          145


$          203


$          220


$          250



$          845


$       1,169

Other





(1)


(4)



(6)


Segment to GAAP adjustment


7


(53)


1


1




1


(14)

Income before income taxes - GAAP basis


$          207


$            92


$          204


$          220


$          246



$          840


$       1,155

















Consumer & Insurance pretax income


$          200


$          145


$          203


$          220


$          250



$          845


$       1,169

Restructuring charges


1



27






7

Net loss on repurchases and repayments of debt



12


2






26

Acquisition-related transaction and integration expenses


1


2


1






Regulatory settlements





2




26


Other (1)



4



1


2



3


4

Consumer & Insurance adjusted pretax income (non-GAAP)


$          202


$          163


$          233


$          223


$          252



$          874


$       1,206

















Reconciling items (2)


$             5


$         (71)


$         (29)


$           (2)


$           (2)



$         (28)


$         (51)

















Consumer & Insurance


$     23,128


$     22,428


$     21,083


$     21,349


$     21,068



$     21,349


$     19,987

Segment to GAAP adjustment


(53)


(63)




(1)




(1)

Net finance receivables - GAAP basis


$     23,075


$     22,365


$     21,083


$     21,349


$     21,067



$     21,349


$     19,986

















Consumer & Insurance


$       2,651


$       2,571


$       2,454


$       2,480


$       2,449



$       2,480


$       2,315

Segment to GAAP adjustment


(6)


(7)







(4)

Allowance for finance receivable losses - GAAP basis


$       2,645


$       2,564


$       2,454


$       2,480


$       2,449



$       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)


Sep 30,
2024


Jun 30,
2024


Mar 31,
2024


Dec 31,
2023


Sep 30,
2023



2023


2022

















Interest income


$       1,271


$       1,210


$       1,172


$       1,186


$       1,166



$       4,559


$       4,429

Interest expense


(299)


(295)


(276)


(271)


(265)



(1,015)


(886)

Net interest income


972


915


896


915


901



3,544


3,543

Provision for finance receivable losses


(512)


(515)


(431)


(446)


(410)



(1,721)


(1,399)

Net interest income after provision for finance receivable losses


460


400


465


469


491



1,823


2,144

















Insurance


111


111


112


113


113



448


445

Investment


24


30


32


32


32



116


61

Gain on sales of finance receivables


6


6


6


10


11



52


63

Other


40


37


30


30


26



111


75

Total other revenues


181


184


180


185


182



727


644

















Operating expenses


(396)


(374)


(362)


(382)


(373)



(1,487)


(1,424)

Insurance policy benefits and claims


(43)


(47)


(50)


(49)


(48)



(189)


(158)

Total other expenses


(439)


(421)


(412)


(431)


(421)



(1,676)


(1,582)

















Adjusted pretax income (non-GAAP)


202


163


233


223


252



874


1,206

















Income taxes (1)


(51)


(41)


(58)


(56)


(63)



(219)


(302)

















Adjusted net income (non-GAAP)


$          151


$          122


$          175


$          167


$          189



$          655


$          904

















Weighted average number of diluted shares


120.1


120.2


120.2


120.1


120.8



120.6


124.4

C&I adjusted diluted EPS


$         1.26


$         1.02


$         1.45


$         1.39


$         1.57



$         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 25% tax rate.

 

OneMain Holdings, Inc.
















CONSUMER & INSURANCE SEGMENT METRICS (UNAUDITED)
















Quarter Ended



Fiscal Year

















(unaudited, $ in millions)


Sep 30,
2024


Jun 30,
2024


Mar 31,
2024


Dec 31,
2023


Sep 30,
2023



2023


2022

















Net finance receivables - personal loans


$     20,569


$     20,073


$     19,854


$     20,274


$     20,176



$     20,274


$     19,498

Net finance receivables - auto finance


2,009


1,889


843


745


660



745


382

Net finance receivables - consumer loans


22,578


21,962


20,697


21,019


20,836



21,019


19,880

Net finance receivables - credit cards


550


466


386


330


232



330


107

Net finance receivables


$     23,128


$     22,428


$     21,083


$     21,349


$     21,068



$     21,349


$     19,987

















Allowance for finance receivable losses


$       2,651


$       2,571


$       2,454


$       2,480


$       2,449



$       2,480


$       2,315

















Allowance ratio


11.46 %


11.46 %


11.64 %


11.62 %


11.62 %



11.62 %


11.58 %

















Net finance receivables


23,128


22,428


21,083


21,349


21,068



21,349


19,987

Finance receivables serviced for our whole loan sale partners


1,191


1,229


871


882


864



882


766

Managed receivables


$     24,319


$     23,657


$     21,954


$     22,231


$     21,932



$     22,231


$     20,753

















Average net finance receivables - personal loans


$     20,396


$     19,937


$     20,117


$     20,273


$     20,032



$     19,788


$     19,151

Average net finance receivables - auto finance


1,949


1,843


786


707


608



559


226

Average net finance receivables - consumer loans


22,345


21,780


20,903


20,980


20,640



20,347


19,377

Average net finance receivables - credit cards


515


430


364


281


193



181


65

Average net receivables


22,860


22,210


21,267


21,261


20,833



20,528


19,442

Average receivables serviced for our whole loan sale partners


1,218


1,195


867


881


864



852


610

Average managed receivables


$     24,078


$     23,405


$     22,134


$     22,142


$     21,697



$     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)


Sep 30,
2024


Jun 30,
2024


Mar 31,
2024


Dec 31,
2023


Sep 30,
2023



2023


2022

















Adjusted pretax income (non-GAAP)


$          202


$          163


$          233


$          223


$          252



$        874


$      1,206

















Provision for finance receivable losses


512


515


431


446


410



1,721


1,399

Net charge-offs


(432)


(496)


(457)


(415)


(353)



(1,536)


(1,186)

Change in C&I allowance for finance receivable losses (non-GAAP)


80


19


(26)


31


57



185


213

















Pretax capital generation (non-GAAP)


282


182


207


254


309



1,059


1,419

















Capital generation, net of tax(1) (non-GAAP)


$          211


$          136


$          155


$          191


$          232



$        794


$      1,064

















C&I average net receivables


$     22,860


$     22,210


$     21,267


$     21,261


$     20,833



$    20,528


$    19,442

















Capital generation return on receivables  (non-GAAP)


3.7 %


2.9 %


2.9 %


3.6 %


4.4 %



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 25% rate.

 

OneMain Holdings, Inc.
















CONSUMER & INSURANCE CONSUMER LOANS METRICS (UNAUDITED)











Quarter Ended



Fiscal Year

















(unaudited, $ in millions)


Sep 30,
2024


Jun 30,
2024


Mar 31,
2024


Dec 31,
2023


Sep 30,
2023



2023


2022

































Gross charge-offs


$          490


$          553


$          522


$          468


$          410



$       1,768


$       1,431

Recoveries


(78)


(75)


(77)


(60)


(63)



(258)


(252)

Net charge-offs


$          412


$          478


$          445


$          408


$          347



$       1,510


$       1,179

















Gross charge-off ratio


8.72 %


9.68 %


10.05 %


8.82 %


7.89 %



8.69 %


7.39 %

Recovery ratio


(1.39 %)


(1.39 %)


(1.48 %)


(1.13 %)


(1.21 %)



(1.27 %)


(1.30 %)

Net charge-off ratio


7.33 %


8.29 %


8.58 %


7.70 %


6.68 %



7.42 %


6.09 %

































Average net receivables


$     22,345


$     21,780


$     20,903


$     20,980


$     20,640



$     20,346


$     19,377

Yield


22.1 %


21.9 %


22.1 %


22.1 %


22.2 %



22.2 %


22.8 %

Origination volume


$       3,712


$       3,582


$       2,523


$       3,014


$       3,278



$     12,851


$     13,879

















30+ delinquency


$       1,272


$       1,198


$       1,153


$       1,294


$       1,156



$       1,294


$       1,154

90+ delinquency


$          562


$          511


$          591


$          605


$          535



$          605


$          544

30-89 delinquency


$          710


$          687


$          562


$          689


$          621



$          689


$          610

















30+ delinquency ratio


5.63 %


5.45 %


5.57 %


6.16 %


5.55 %



6.16 %


5.80 %

90+ delinquency ratio


2.49 %


2.33 %


2.86 %


2.88 %


2.57 %



2.88 %


2.74 %

30-89 delinquency ratio


3.14 %


3.13 %


2.72 %


3.28 %


2.98 %



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 = unpaid principal balance of consumer loans and credit cards, including those in the trust that exceed the minimum for securing advances under credit card variable funding note facilities, which the Company can remove from the trust under the terms of such facilities. For precompute personal loans, unpaid principal balance is the gross contractual payments less the unaccreted balance of unearned finance charges. Credit card receivables 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 

 

Cision View original content to download multimedia:https://www.prnewswire.com/news-releases/onemain-holdings-inc-reports-third-quarter-2024-results-302290736.html

SOURCE OneMain Holdings, Inc.

FAQ

What was OneMain Holdings (OMF) earnings per share in Q3 2024?

OneMain Holdings reported diluted earnings per share of $1.31 in Q3 2024, compared to $1.61 in the prior year quarter.

How much did OneMain Holdings (OMF) managed receivables grow in Q3 2024?

OneMain Holdings' managed receivables grew 11% year-over-year to $24.3 billion in Q3 2024, up from $21.9 billion in Q3 2023.

What was OneMain Holdings (OMF) quarterly dividend for Q3 2024?

OneMain Holdings declared a quarterly dividend of $1.04 per share, payable on November 18, 2024, to shareholders of record as of November 12, 2024.

How much did OneMain Holdings (OMF) spend on share repurchases in Q3 2024?

OneMain Holdings repurchased approximately 420,000 shares of common stock for $19 million during Q3 2024.

OneMain Holdings, Inc.

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