ONEMAIN HOLDINGS, INC. REPORTS THIRD QUARTER 2024 RESULTS
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.
- 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
- 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
However, there are positive indicators: managed receivables grew
The rising delinquency ratios and net charge-offs (increasing to
- 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
per share$1.04 - Repurchased 420 thousand shares for
in 3Q$19 million
On October 30, 2024, OneMain declared a quarterly dividend of
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
"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
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 | 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
Funding and Liquidity
As of September 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, 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 (
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) | Sep 30, | Jun 30, | Mar 31, | Dec 31, | Sep 30, | 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, | Jun 30, | Mar 31, | Dec 31, | Sep 30, | |||||
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 | 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, | Jun 30, | Mar 31, | Dec 31, | Sep 30, | |||||
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 |
OneMain Holdings, Inc. | |||||||||||||||
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES (UNAUDITED) | |||||||||||||||
Quarter Ended | Fiscal Year | ||||||||||||||
(unaudited, $ in millions) | Sep 30, | Jun 30, | Mar 31, | Dec 31, | Sep 30, | 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, | Jun 30, | Mar 31, | Dec 31, | Sep 30, | 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 |
OneMain Holdings, Inc. | |||||||||||||||
CONSUMER & INSURANCE SEGMENT METRICS (UNAUDITED) | |||||||||||||||
Quarter Ended | Fiscal Year | ||||||||||||||
(unaudited, $ in millions) | Sep 30, | Jun 30, | Mar 31, | Dec 31, | Sep 30, | 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, | Jun 30, | Mar 31, | Dec 31, | Sep 30, | 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 |
OneMain Holdings, Inc. | |||||||||||||||
CONSUMER & INSURANCE CONSUMER LOANS METRICS (UNAUDITED) | |||||||||||||||
Quarter Ended | Fiscal Year | ||||||||||||||
(unaudited, $ in millions) | Sep 30, | Jun 30, | Mar 31, | Dec 31, | Sep 30, | 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
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SOURCE OneMain Holdings, Inc.
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