- 2Q 2023 Diluted EPS of $0.85
- 2Q 2023 C&I adjusted diluted EPS of $1.01
- 2Q 2023 Managed receivables of $21.4 billion
- Declared quarterly dividend of $1.00 per share
- Repurchased 169 thousand shares for $7 million in
2Q
OneMain Holdings, Inc. (NYSE: OMF), the leader in offering
nonprime customers responsible access to credit, today reported
pretax income of $138 million and net income of $103 million for
the second quarter of 2023, compared to $278 million and $208
million, respectively, in the prior year quarter. Earnings per
diluted share were $0.85 in the second quarter of 2023, compared to
$1.67 in the prior year quarter.
On July 26, 2023, OneMain declared a quarterly dividend of $1.00
per share, payable on August 11, 2023, to record holders of the
Company's common stock as of the close of business on August 7,
2023.
During the quarter, the Company repurchased approximately 169
thousand shares of common stock for $7 million. “Continued strong
demand for OneMain loan products, excellent competitive
positioning, and a balance sheet with significant liquidity have
allowed us to originate attractive loans throughout the first half
of 2023 despite our conservative credit posture,” said Doug
Shulman, Chairman and CEO of OneMain. “We continue to invest in new
products and channels in order to better serve more customers and
generate value for 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 $162 million and adjusted net
income was $122 million for the second quarter of 2023, compared to
$309 million and $232 million, respectively, in the prior year
quarter. Adjusted earnings per diluted share were $1.01 for the
second quarter of 2023, compared to $1.86 in the prior year
quarter. The decline was primarily driven by an increase in our
provision for finance receivable losses in the current quarter
compared to the prior year period.
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 $192
million for the second quarter 2023, compared to $273 million in
the prior year quarter.
Managed receivables, which includes loans serviced for our whole
loan sale partners, were $21.4 billion at June 30, 2023, up 6% from
$20.1 billion at June 30, 2022.
Personal loan originations totaled $3.7 billion in the second
quarter of 2023, down 4% from $3.9 billion in the prior year
quarter.
Interest income in the second quarter of 2023 was $1.1 billion,
consistent with the prior year quarter, reflecting higher average
net finance receivables, offset by a lower portfolio yield.
Personal loan yield was 22.2% in the second quarter of 2023,
down from 23.1% in the prior year quarter, reflecting impacts from
the current macroeconomic environment.
The provision for finance receivable losses was $479 million in
the second quarter of 2023, up $141 million compared to the prior
year period. The increase reflects a $102 million increase in net
charge-offs and a $39 million increase in the allowance for finance
receivable losses when compared to the prior year period. During
the second quarter of 2023, the allowance for finance receivable
losses increased $94 million, primarily driven by growth in
receivables.
C&I Select Delinquency and
Loss Ratios
June 30,
2023
March 31,
2023
June 30,
2022
Personal loans:
30+ days delinquency ratio
5.09
%
5.29
%
4.88
%
90+ days delinquency ratio
2.33
%
2.72
%
2.15
%
30-89 days delinquency ratio
2.76
%
2.58
%
2.73
%
Net charge-offs
7.60
%
7.72
%
5.96
%
Operating expense for the second quarter of 2023 was $370
million, up 5% from $350 million in the prior year quarter
reflecting our continued investment in the business.
Funding and Liquidity
As of June 30, 2023, the Company had principal debt balances
outstanding of $19.5 billion, 55% of which was secured. The Company
had $1.0 billion of cash and cash equivalents, which included $196
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 $1.25
billion of undrawn committed capacity from an unsecured corporate
revolver, $6.2 billion of undrawn committed capacity under
revolving conduit facilities, and $8.4 billion of unencumbered
loans, 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, July 26, 2023. 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
63422, 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
customers 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 1,400 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 regulatory settlements, net gain or
loss resulting from repurchases and repayments of debt, the expense
associated with the cash-settled stock-based awards, and other
items and strategic activities, which include direct costs
associated with COVID-19 and restructuring charges. 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 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-attacks, war
or other disruptions; the adequacy of our credit risk scoring
models; 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.
The liquidity runway scenario disclosed in the press release is
based on management’s estimates and assumptions for internal
strategic planning purposes and does not constitute guidance or
financial projections and should not be regarded or relied on as
such.
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
Jun 30,
Mar 31,
Dec 31,
Sep 30,
Jun 30,
(unaudited, $ in millions, except
per share amounts)
2023
2023
2022
2022
2022
2022
2021
Interest income
$
1,117
$
1,094
$
1,122
$
1,118
$
1,106
$
4,435
$
4,364
Interest expense
(244
)
(239
)
(231
)
(223
)
(219
)
(892
)
(937
)
Net interest income
873
855
891
895
887
3,543
3,427
Provision for finance receivable
losses
(479
)
(385
)
(404
)
(421
)
(339
)
(1,402
)
(593
)
Net interest income after
provision for finance receivable losses
394
470
487
474
548
2,141
2,834
Insurance
112
111
111
111
111
445
434
Investment
27
25
22
16
9
61
65
Gain on sales of finance
receivables
13
17
13
17
16
63
47
Net gain (loss) on repurchases
and repayments of debt
—
—
(1
)
2
(28
)
(27
)
(78
)
Other
33
24
24
24
20
87
63
Total other revenues
185
177
169
170
128
629
531
Operating expenses
(397
)
(365
)
(384
)
(363
)
(356
)
(1,457
)
(1,448
)
Insurance policy benefits and
claims
(44
)
(47
)
(39
)
(35
)
(42
)
(158
)
(176
)
Total other expenses
(441
)
(412
)
(423
)
(398
)
(398
)
(1,615
)
(1,624
)
Income before income
taxes
138
235
233
246
278
1,155
1,741
Income taxes
(35
)
(56
)
(57
)
(61
)
(70
)
(283
)
(427
)
Net income
$
103
$
179
$
176
$
185
$
208
$
872
$
1,314
Weighted average number of
diluted shares
120.6
121.0
121.9
123.6
124.7
124.4
133.1
Diluted EPS
$
0.85
$
1.48
$
1.44
$
1.49
$
1.67
$
7.01
$
9.88
Book value per basic share
$
25.39
$
25.55
$
24.91
$
24.56
$
24.42
$
24.91
$
23.76
Return on assets
1.8
%
3.2
%
3.1
%
3.3
%
3.8
%
3.9
%
6.0
%
Change in allowance for finance
receivable losses
$
(94
)
$
(3
)
$
(56
)
$
(128
)
$
(56
)
$
(216
)
$
174
Net charge-offs
(385
)
(382
)
(348
)
(293
)
(283
)
(1,186
)
(767
)
Provision for finance
receivable losses
$
(479
)
$
(385
)
$
(404
)
$
(421
)
$
(339
)
$
(1,402
)
$
(593
)
Note:
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 prior period financial
information to reflect the effects of the adoption.
OneMain Holdings, Inc.
CONSOLIDATED BALANCE SHEETS
(UNAUDITED)
As of
Jun 30,
Mar 31,
Dec 31,
Sep 30,
Jun 30,
(unaudited, $ in millions)
2023
2023
2022
2022
2022
Assets
Cash and cash equivalents
$
1,021
$
544
$
498
$
536
$
526
Investment securities
1,710
1,786
1,800
1,747
1,773
Net finance receivables
20,510
19,809
19,986
19,752
19,448
Unearned insurance premium and
claim reserves
(761
)
(740
)
(749
)
(747
)
(754
)
Allowance for finance receivable
losses
(2,392
)
(2,298
)
(2,311
)
(2,255
)
(2,127
)
Net finance receivables, less
unearned insurance premium and claim reserves and allowance for
finance receivable losses
17,357
16,771
16,926
16,750
16,567
Restricted cash and restricted
cash equivalents
532
531
461
483
534
Goodwill
1,437
1,437
1,437
1,437
1,437
Other intangible assets
260
261
261
272
273
Other assets
1,194
1,113
1,154
1,116
1,089
Total assets
$
23,511
$
22,443
$
22,537
$
22,341
$
22,199
Liabilities and Shareholders’
Equity
Long-term debt
$
19,195
$
18,206
$
18,281
$
18,202
$
17,922
Insurance claims and policyholder
liabilities
616
615
620
601
628
Deferred and accrued taxes
5
22
5
5
1
Other liabilities
637
519
616
522
627
Total liabilities
20,453
19,362
19,522
19,330
19,178
Common stock
1
1
1
1
1
Additional paid-in capital
1,702
1,693
1,689
1,685
1,679
Accumulated other comprehensive
income (loss)
(114
)
(108
)
(127
)
(124
)
(83
)
Retained earnings
2,168
2,188
2,119
2,061
1,995
Treasury stock
(699
)
(693
)
(667
)
(612
)
(571
)
Total shareholders’
equity
3,058
3,081
3,015
3,011
3,021
Total liabilities and
shareholders’ equity
$
23,511
$
22,443
$
22,537
$
22,341
$
22,199
Note:
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 prior period financial
information to reflect the effects of the adoption.
OneMain Holdings, Inc.
CONSOLIDATED KEY FINANCIAL
METRICS (UNAUDITED)
As of
Jun 30,
Mar 31,
Dec 31,
Sep 30,
Jun 30,
(unaudited, $ in millions)
2023
2023
2022
2022
2022
Liquidity
Cash and cash equivalents
$
1,021
$
544
$
498
$
536
$
526
Cash and cash equivalents
unavailable for general corporate purposes
196
177
147
142
151
Unencumbered loans
8,424
8,457
9,304
9,465
9,621
Undrawn conduit facilities
6,175
6,075
6,125
5,675
5,275
Undrawn corporate revolver
1,250
1,250
1,250
1,250
1,250
Drawn conduit facilities
—
100
50
500
500
Net adjusted debt
$
18,198
$
17,667
$
17,758
$
17,636
$
17,375
Total Shareholders'
equity
$
3,058
$
3,081
$
3,015
$
3,011
$
3,021
Goodwill
(1,437
)
(1,437
)
(1,437
)
(1,437
)
(1,437
)
Other intangible assets
(260
)
(261
)
(261
)
(272
)
(273
)
Junior subordinated debt
172
172
172
172
172
Adjusted tangible common
equity
1,533
1,555
1,489
1,474
1,483
Allowance for finance receivable
losses, net of tax (1)
1,794
1,724
1,733
1,691
1,595
Adjusted capital
$
3,327
$
3,279
$
3,222
$
3,165
$
3,078
Net leverage (net adjusted
debt to adjusted capital)
5.5x
5.4x
5.5x
5.6x
5.6x
Note:
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 prior period financial
information to reflect the effects of the adoption.
(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)
Jun 30,
2023
Mar 31,
2023
Dec 31,
2022
Sep 30,
2022
Jun 30,
2022
2022
2021
Consumer & Insurance
$
138
$
236
$
244
$
247
$
279
$
1,169
$
1,788
Other
—
(1
)
(1
)
1
—
—
(7
)
Segment to GAAP adjustment
—
—
(10
)
(2
)
(1
)
(14
)
(40
)
Income before income taxes -
GAAP basis
$
138
$
235
$
233
$
246
$
278
$
1,155
$
1,741
Consumer & Insurance pretax
income
$
138
$
236
$
244
$
247
$
279
$
1,169
$
1,788
Regulatory settlements
24
—
—
—
—
—
—
Net loss (gain) on repurchases
and repayments of debt (1)
—
—
—
(3
)
28
26
70
Cash-settled stock-based
awards
—
—
—
(2
)
1
—
54
Other (2)
—
—
5
4
1
11
6
Consumer & Insurance
adjusted pretax income (non-GAAP)
$
162
$
236
$
249
$
246
$
309
$
1,206
$
1,918
Reconciling items (3)
$
(24
)
$
—
$
(15
)
$
(1
)
$
(31
)
$
(51
)
$
(171
)
Consumer & Insurance
$
20,511
$
19,810
$
19,987
$
19,754
$
19,449
$
19,987
$
19,215
Segment to GAAP adjustment
(1
)
(1
)
(1
)
(2
)
(1
)
(1
)
(3
)
Net finance receivables - GAAP
basis
$
20,510
$
19,809
$
19,986
$
19,752
$
19,448
$
19,986
$
19,212
Consumer & Insurance
$
2,392
$
2,298
$
2,315
$
2,259
$
2,132
$
2,315
$
2,102
Segment to GAAP adjustment
—
—
(4
)
(4
)
(5
)
(4
)
(7
)
Allowance for finance
receivable losses - GAAP basis
$
2,392
$
2,298
$
2,311
$
2,255
$
2,127
$
2,311
$
2,095
Note:
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 prior period financial
information to reflect the effects of the adoption.
(1)
Amounts differ from those presented on
"Consolidated Statements of Operations (Unaudited)" page as a
result of purchase accounting adjustments that are not applicable
on a segment accounting basis.
(2)
Includes strategic activities and other
items. For fiscal year 2021, refer to the earnings release and
financial supplements included as an exhibit to the Company’s
Current Report on Form 8-K filed February 2, 2022, and available in
the Investor Relations section of the Company’s website
(www.omf.com) and the SEC’s website (www.sec.gov).
(3)
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
Jun 30,
Mar 31,
Dec 31,
Sep 30,
Jun 30,
(unaudited, in millions, except
per share amounts)
2023
2023
2022
2022
2022
2022
2021
Interest income
$
1,115
$
1,092
$
1,121
$
1,116
$
1,104
$
4,429
$
4,355
Interest expense
(242
)
(238
)
(230
)
(221
)
(218
)
(886
)
(930
)
Net interest income
873
854
891
895
886
3,543
3,425
Provision for finance receivable
losses
(479
)
(385
)
(404
)
(420
)
(338
)
(1,399
)
(587
)
Net interest income after
provision for finance receivable losses
394
469
487
475
548
2,144
2,838
Insurance
112
111
111
111
111
445
434
Investment
27
25
22
16
9
61
65
Gain on sales of finance
receivables
13
17
13
17
16
63
47
Other
30
23
22
21
17
75
51
Total other revenues
182
176
168
165
153
644
597
Operating expenses
(370
)
(362
)
(367
)
(359
)
(350
)
(1,424
)
(1,341
)
Insurance policy benefits and
claims
(44
)
(47
)
(39
)
(35
)
(42
)
(158
)
(176
)
Total other expenses
(414
)
(409
)
(406
)
(394
)
(392
)
(1,582
)
(1,517
)
Adjusted pretax income
(non-GAAP)
162
236
249
246
309
1,206
1,918
Income taxes (1)
(40
)
(59
)
(63
)
(62
)
(77
)
(302
)
(480
)
Adjusted net income
(non-GAAP)
$
122
$
177
$
186
$
184
$
232
$
904
$
1,438
Weighted average number of
diluted shares
120.6
121.0
121.9
123.6
124.7
124.4
133.1
C&I adjusted diluted EPS
$
1.01
$
1.46
$
1.53
$
1.49
$
1.86
$
7.27
$
10.81
Note:
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 prior period 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)
Jun 30,
2023
Mar 31,
2023
Dec 31,
2022
Sep 30,
2022
Jun 30,
2022
2022
2021
Net finance receivables -
personal loans
$
20,352
$
19,688
$
19,880
$
19,675
$
19,385
$
19,880
$
19,190
Net finance receivables - credit
cards
159
122
107
79
64
107
25
Net finance
receivables
$
20,511
$
19,810
$
19,987
$
19,754
$
19,449
$
19,987
$
19,215
Allowance for finance
receivable losses
$
2,392
$
2,298
$
2,315
$
2,259
$
2,132
$
2,315
$
2,102
Allowance ratio
11.66
%
11.60
%
11.58
%
11.44
%
10.96
%
11.58
%
10.94
%
Net finance receivables
20,511
19,810
19,987
19,754
19,449
19,987
19,215
Finance receivables serviced for
our whole loan sale partners
849
839
766
698
616
766
414
Managed receivables
$
21,360
$
20,649
$
20,753
$
20,452
$
20,065
$
20,753
$
19,629
Average net finance receivables -
personal loans
$
19,999
$
19,767
$
19,803
$
19,553
$
19,105
$
19,377
$
18,284
Average net finance receivables -
credit cards
137
115
92
71
57
65
2
Average net
receivables
20,136
19,882
19,895
19,624
19,162
19,442
18,286
Average receivables serviced for
our whole loan sale partners
852
812
734
659
572
610
174
Average managed
receivables
$
20,988
$
20,694
$
20,629
$
20,283
$
19,734
$
20,052
$
18,460
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,
2023
Mar 31,
2023
Dec 31,
2022
Sep 30,
2022
Jun 30,
2022
2022
2021
Adjusted pretax income
(non-GAAP)
$
162
$
236
$
249
$
246
$
309
$
1,206
$
1,918
Provision for finance receivable
losses
479
385
404
420
338
1,399
587
Net charge-offs
(385
)
(382
)
(348
)
(293
)
(283
)
(1,186
)
(768
)
Change in C&I allowance
for finance receivable losses (non-GAAP)
94
3
56
127
55
213
(181
)
Pretax capital generation
(non-GAAP)
256
239
305
373
364
1,419
1,737
Capital generation, net of
tax(1) (non-GAAP)
$
192
$
179
$
229
$
280
$
273
$
1,064
$
1,303
C&I average net
receivables
$
20,136
$
19,882
$
19,895
$
19,624
$
19,162
$
19,442
$
18,286
Capital generation return on
receivables
3.8
%
3.7
%
4.6
%
5.6
%
5.7
%
5.5
%
7.1
%
Note:
Consumer & Insurance financial
information is presented on an adjusted Segment Accounting Basis.
Amounts may not sum 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 prior period financial
information to reflect the effects of the adoption.
(1)
Income taxes assume a 25% tax rate.
OneMain Holdings, Inc.
CONSUMER & INSURANCE PERSONAL LOANS
METRICS (UNAUDITED)
Quarter Ended
Fiscal Year
Jun 30,
Mar 31,
Dec 31,
Sep 30,
Jun 30,
(unaudited, $ in millions)
2023
2023
2022
2022
2022
2022
2021
Gross charge-offs
$
446
$
445
$
402
$
349
$
351
$
1,431
$
990
Recoveries
(67
)
(69
)
(58
)
(59
)
(68
)
(252
)
(222
)
Net charge-offs
$
379
$
376
$
344
$
290
$
283
$
1,179
$
768
Gross charge-off ratio
8.94
%
9.14
%
8.05
%
7.09
%
7.37
%
7.39
%
5.42
%
Recovery ratio
(1.34
%)
(1.42
%)
(1.17
%)
(1.20
%)
(1.41
%)
(1.30
%)
(1.21
%)
Net charge-off ratio
7.60
%
7.72
%
6.88
%
5.89
%
5.96
%
6.09
%
4.20
%
Average net receivables
$
19,999
$
19,767
$
19,803
$
19,553
$
19,105
$
19,377
$
18,284
Yield
22.2
%
22.3
%
22.3
%
22.6
%
23.1
%
22.8
%
23.8
%
Origination volume
$
3,742
$
2,817
$
3,473
$
3,551
$
3,897
$
13,879
$
13,825
30+ delinquency
$
1,036
$
1,042
$
1,154
$
1,027
$
945
$
1,154
$
850
90+ delinquency
$
474
$
534
$
544
$
474
$
416
$
544
$
383
30-89 delinquency
$
562
$
508
$
610
$
553
$
529
$
610
$
467
30+ delinquency ratio
5.09
%
5.29
%
5.80
%
5.22
%
4.88
%
5.80
%
4.43
%
90+ delinquency ratio
2.33
%
2.72
%
2.74
%
2.41
%
2.15
%
2.74
%
2.00
%
30-89 delinquency ratio
2.76
%
2.58
%
3.07
%
2.81
%
2.73
%
3.07
%
2.43
%
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
- 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 = annualized
capital generation / C&I average net receivables
- 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
- Managed receivables = C&I net finance receivables +
finance receivables serviced for our whole loan sale partners
- Net adjusted debt = long-term debt – junior subordinated
debt – available cash and cash equivalents
- Net interest margin = annualized C&I net interest
income / C&I 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
- 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
- Unencumbered loans = unencumbered gross finance
receivables excluding credit cards
View source
version on businesswire.com: https://www.businesswire.com/news/home/20230726739636/en/
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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