- 3Q 2023 Diluted EPS of $1.61
- 3Q 2023 C&I adjusted diluted EPS of $1.57
- 3Q 2023 Managed receivables of $21.9 billion
- Declared quarterly dividend of $1.00 per share
- Repurchased 268 thousand shares for $11 million in
3Q
OneMain Holdings, Inc. (NYSE: OMF), the leader in offering
nonprime customers responsible access to credit, today reported
pretax income of $246 million and net income of $194 million for
the third quarter of 2023, compared to $246 million and $185
million, respectively, in the prior year quarter. Earnings per
diluted share were $1.61 in the third quarter of 2023, compared to
$1.49 in the prior year quarter.
On October 25, 2023, OneMain declared a quarterly dividend of
$1.00 per share, payable on November 10, 2023, to record holders of
the Company's common stock as of the close of business on November
6, 2023.
During the quarter, the Company repurchased approximately 268
thousand shares of common stock for $11 million.
“OneMain remains very well positioned in the current
environment,” said Doug Shulman, Chairman and CEO of OneMain. “Our
strong balance sheet, superior credit risk management, and new
products position us well for 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 $252 million and adjusted net
income was $189 million for the third quarter of 2023, compared to
$246 million and $184 million, respectively, in the prior year
quarter. Adjusted earnings per diluted share were $1.57 for the
third quarter of 2023, compared to $1.49 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 $232
million for the third quarter 2023, compared to $280 million in the
prior year quarter. The decline was driven by higher net
charge-offs in the current quarter compared to the prior year
period.
Managed receivables, which includes loans serviced for our whole
loan sale partners, were $21.9 billion at September 30, 2023, up 7%
from $20.5 billion at September 30, 2022.
Personal loan originations totaled $3.3 billion in the third
quarter of 2023, down 8% from $3.6 billion in the prior year
quarter.
Interest income in the third quarter of 2023 was $1.2 billion,
up 4% from $1.1 billion in the prior year quarter, reflecting
higher average net finance receivables, offset by a lower portfolio
yield.
Personal loan yield was 22.2% in the third quarter of 2023, down
from 22.6% in the prior year quarter, reflecting impacts from the
current macroeconomic environment.
The provision for finance receivable losses was $410 million in
the third quarter of 2023, down $10 million compared to the prior
year period. During the third quarter of 2023, the allowance for
finance receivable losses increased $57 million, driven by growth
in receivables.
September
June 30,
September
C&I Select Delinquency and
Loss Ratios
30, 2023
2023
30, 2022
Personal loans:
30+ days delinquency ratio
5.55
%
5.09
%
5.22
%
90+ days delinquency ratio
2.57
%
2.33
%
2.41
%
30-89 days delinquency ratio
2.98
%
2.76
%
2.81
%
Net charge-offs
6.68
%
7.60
%
5.89
%
Operating expense for the third quarter of 2023 was $373
million, up 4% from $359 million in the prior year quarter
reflecting continued investment in the business.
Funding and Liquidity
As of September 30, 2023, the Company had principal debt
balances outstanding of $20.1 billion, 59% of which was secured.
The Company had $1.2 billion of cash and cash equivalents, which
included $169 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 $7.5 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, October 25, 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
59337, 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 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 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-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.
CONSOLIDATED STATEMENTS OF OPERATIONS
(UNAUDITED)
Quarter Ended
Fiscal Year
Sep 30,
Jun 30,
Mar 31,
Dec 31,
Sep 30,
(unaudited, $ in millions, except
per share amounts)
2023
2023
2023
2022
2022
2022
2021
Interest income
$
1,167
$
1,117
$
1,094
$
1,122
$
1,118
$
4,435
$
4,364
Interest expense
(267
)
(244
)
(239
)
(231
)
(223
)
(892
)
(937
)
Net interest income
900
873
855
891
895
3,543
3,427
Provision for finance receivable
losses
(410
)
(479
)
(385
)
(404
)
(421
)
(1,402
)
(593
)
Net interest income after
provision for finance receivable losses
490
394
470
487
474
2,141
2,834
Insurance
113
112
111
111
111
445
434
Investment
32
27
25
22
16
61
65
Gain on sales of finance
receivables
11
13
17
13
17
63
47
Net gain (loss) on repurchases
and repayments of debt
—
—
—
(1
)
2
(27
)
(78
)
Other
29
33
24
24
24
87
63
Total other revenues
185
185
177
169
170
629
531
Operating expenses
(381
)
(397
)
(365
)
(384
)
(363
)
(1,457
)
(1,448
)
Insurance policy benefits and
claims
(48
)
(44
)
(47
)
(39
)
(35
)
(158
)
(176
)
Total other expenses
(429
)
(441
)
(412
)
(423
)
(398
)
(1,615
)
(1,624
)
Income before income
taxes
246
138
235
233
246
1,155
1,741
Income taxes
(52
)
(35
)
(56
)
(57
)
(61
)
(283
)
(427
)
Net income
$
194
$
103
$
179
$
176
$
185
$
872
$
1,314
Weighted average number of
diluted shares
120.8
120.6
121.0
121.9
123.6
124.4
133.1
Diluted EPS
$
1.61
$
0.85
$
1.48
$
1.44
$
1.49
$
7.01
$
9.88
Book value per basic share
$
25.86
$
25.39
$
25.55
$
24.91
$
24.56
$
24.91
$
23.76
Return on assets
3.2
%
1.8
%
3.2
%
3.1
%
3.3
%
3.9
%
6.0
%
Change in allowance for finance
receivable losses
$
(57
)
$
(94
)
$
(3
)
$
(56
)
$
(128
)
$
(216
)
$
174
Net charge-offs
(353
)
(385
)
(382
)
(348
)
(293
)
(1,186
)
(767
)
Provision for finance
receivable losses
$
(410
)
$
(479
)
$
(385
)
$
(404
)
$
(421
)
$
(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.
CONSOLIDATED BALANCE SHEETS
(UNAUDITED)
As of
Sep 30,
Jun 30,
Mar 31,
Dec 31,
Sep 30,
(unaudited, $ in millions)
2023
2023
2023
2022
2022
Assets
Cash and cash equivalents
$
1,190
$
1,021
$
544
$
498
$
536
Investment securities
1,635
1,710
1,786
1,800
1,747
Net finance receivables
21,067
20,510
19,809
19,986
19,752
Unearned insurance premium and
claim reserves
(772
)
(761
)
(740
)
(749
)
(747
)
Allowance for finance receivable
losses
(2,449
)
(2,392
)
(2,298
)
(2,311
)
(2,255
)
Net finance receivables, less
unearned insurance premium and claim reserves and allowance for
finance receivable losses
17,846
17,357
16,771
16,926
16,750
Restricted cash and restricted
cash equivalents
580
532
531
461
483
Goodwill
1,437
1,437
1,437
1,437
1,437
Other intangible assets
260
260
261
261
272
Other assets
1,198
1,194
1,113
1,154
1,116
Total assets
$
24,146
$
23,511
$
22,443
$
22,537
$
22,341
Liabilities and Shareholders’
Equity
Long-term debt
$
19,851
$
19,195
$
18,206
$
18,281
$
18,202
Insurance claims and policyholder
liabilities
599
616
615
620
601
Deferred and accrued taxes
6
5
22
5
5
Other liabilities
581
637
519
616
522
Total liabilities
21,037
20,453
19,362
19,522
19,330
Common stock
1
1
1
1
1
Additional paid-in capital
1,706
1,702
1,693
1,689
1,685
Accumulated other comprehensive
income (loss)
(129
)
(114
)
(108
)
(127
)
(124
)
Retained earnings
2,240
2,168
2,188
2,119
2,061
Treasury stock
(709
)
(699
)
(693
)
(667
)
(612
)
Total shareholders’
equity
3,109
3,058
3,081
3,015
3,011
Total liabilities and
shareholders’ equity
$
24,146
$
23,511
$
22,443
$
22,537
$
22,341
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.
CONSOLIDATED KEY FINANCIAL
METRICS (UNAUDITED)
As of
Sep 30,
Jun 30,
Mar 31,
Dec 31,
Sep 30,
(unaudited, $ in millions)
2023
2023
2023
2022
2022
Liquidity
Cash and cash equivalents
$
1,190
$
1,021
$
544
$
498
$
536
Cash and cash equivalents
unavailable for general corporate purposes
169
196
177
147
142
Unencumbered loans
7,493
8,424
8,457
9,304
9,465
Undrawn conduit facilities
6,175
6,175
6,075
6,125
5,675
Undrawn corporate revolver
1,250
1,250
1,250
1,250
1,250
Drawn conduit facilities
—
—
100
50
500
Net adjusted debt
$
18,658
$
18,198
$
17,667
$
17,758
$
17,636
Total Shareholders'
equity
$
3,109
$
3,058
$
3,081
$
3,015
$
3,011
Goodwill
(1,437
)
(1,437
)
(1,437
)
(1,437
)
(1,437
)
Other intangible assets
(260
)
(260
)
(261
)
(261
)
(272
)
Junior subordinated debt
172
172
172
172
172
Adjusted tangible common
equity
1,584
1,533
1,555
1,489
1,474
Allowance for finance receivable
losses, net of tax (1)
1,837
1,794
1,724
1,733
1,691
Adjusted capital
$
3,421
$
3,327
$
3,279
$
3,222
$
3,165
Net leverage (net adjusted
debt to adjusted capital)
5.5x
5.5x
5.4x
5.5x
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.
RECONCILIATION OF NON-GAAP FINANCIAL
MEASURES (UNAUDITED)
Quarter Ended
Fiscal Year
(unaudited, $ in millions)
Sep 30,
2023
Jun 30,
2023
Mar 31,
2023
Dec 31,
2022
Sep 30,
2022
2022
2021
Consumer & Insurance
$
250
$
138
$
236
$
244
$
247
$
1,169
$
1,788
Other
(4
)
—
(1
)
(1
)
1
—
(7
)
Segment to GAAP adjustment
—
—
—
(10
)
(2
)
(14
)
(40
)
Income before income taxes -
GAAP basis
$
246
$
138
$
235
$
233
$
246
$
1,155
$
1,741
Consumer & Insurance pretax
income
$
250
$
138
$
236
$
244
$
247
$
1,169
$
1,788
Regulatory settlements
—
24
—
—
—
—
—
Net loss (gain) on repurchases
and repayments of debt (1)
—
—
—
—
(3
)
26
70
Cash-settled stock-based
awards
—
—
—
—
(2
)
—
54
Other (2)
2
—
—
5
4
11
6
Consumer & Insurance
adjusted pretax income (non-GAAP)
$
252
$
162
$
236
$
249
$
246
$
1,206
$
1,918
Reconciling items (3)
$
(2
)
$
(24
)
$
—
$
(15
)
$
(1
)
$
(51
)
$
(171
)
Consumer & Insurance
$
21,068
$
20,511
$
19,810
$
19,987
$
19,754
$
19,987
$
19,215
Segment to GAAP adjustment
(1
)
(1
)
(1
)
(1
)
(2
)
(1
)
(3
)
Net finance receivables - GAAP
basis
$
21,067
$
20,510
$
19,809
$
19,986
$
19,752
$
19,986
$
19,212
Consumer & Insurance
$
2,449
$
2,392
$
2,298
$
2,315
$
2,259
$
2,315
$
2,102
Segment to GAAP adjustment
—
—
—
(4
)
(4
)
(4
)
(7
)
Allowance for finance
receivable losses - GAAP basis
$
2,449
$
2,392
$
2,298
$
2,311
$
2,255
$
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.
CONSUMER & INSURANCE SEGMENT
(UNAUDITED) (Non-GAAP)
Quarter Ended
Fiscal Year
Sep 30,
Jun 30,
Mar 31,
Dec 31,
Sep 30,
(unaudited, in millions, except
per share amounts)
2023
2023
2023
2022
2022
2022
2021
Interest income
$
1,166
$
1,115
$
1,092
$
1,121
$
1,116
$
4,429
$
4,355
Interest expense
(265
)
(242
)
(238
)
(230
)
(221
)
(886
)
(930
)
Net interest income
901
873
854
891
895
3,543
3,425
Provision for finance receivable
losses
(410
)
(479
)
(385
)
(404
)
(420
)
(1,399
)
(587
)
Net interest income after
provision for finance receivable losses
491
394
469
487
475
2,144
2,838
Insurance
113
112
111
111
111
445
434
Investment
32
27
25
22
16
61
65
Gain on sales of finance
receivables
11
13
17
13
17
63
47
Other
26
30
23
22
21
75
51
Total other revenues
182
182
176
168
165
644
597
Operating expenses
(373
)
(370
)
(362
)
(367
)
(359
)
(1,424
)
(1,341
)
Insurance policy benefits and
claims
(48
)
(44
)
(47
)
(39
)
(35
)
(158
)
(176
)
Total other expenses
(421
)
(414
)
(409
)
(406
)
(394
)
(1,582
)
(1,517
)
Adjusted pretax income
(non-GAAP)
252
162
236
249
246
1,206
1,918
Income taxes (1)
(63
)
(40
)
(59
)
(63
)
(62
)
(302
)
(480
)
Adjusted net income
(non-GAAP)
$
189
$
122
$
177
$
186
$
184
$
904
$
1,438
Weighted average number of
diluted shares
120.8
120.6
121.0
121.9
123.6
124.4
133.1
C&I adjusted diluted EPS
$
1.57
$
1.01
$
1.46
$
1.53
$
1.49
$
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.
CONSUMER & INSURANCE SEGMENT
METRICS (UNAUDITED)
Quarter Ended
Fiscal Year
(unaudited, $ in millions)
Sep 30,
2023
Jun 30,
2023
Mar 31,
2023
Dec 31,
2022
Sep 30,
2022
2022
2021
Net finance receivables -
personal loans
$
20,836
$
20,352
$
19,688
$
19,880
$
19,675
$
19,880
$
19,190
Net finance receivables - credit
cards
232
159
122
107
79
107
25
Net finance
receivables
$
21,068
$
20,511
$
19,810
$
19,987
$
19,754
$
19,987
$
19,215
Allowance for finance
receivable losses
$
2,449
$
2,392
$
2,298
$
2,315
$
2,259
$
2,315
$
2,102
Allowance ratio
11.62
%
11.66
%
11.60
%
11.58
%
11.44
%
11.58
%
10.94
%
Net finance receivables
21,068
20,511
19,810
19,987
19,754
19,987
19,215
Finance receivables serviced for
our whole loan sale partners
864
849
839
766
698
766
414
Managed receivables
$
21,932
$
21,360
$
20,649
$
20,753
$
20,452
$
20,753
$
19,629
Average net finance receivables -
personal loans
$
20,640
$
19,999
$
19,767
$
19,803
$
19,553
$
19,377
$
18,284
Average net finance receivables -
credit cards
193
137
115
92
71
65
2
Average net
receivables
20,833
20,136
19,882
19,895
19,624
19,442
18,286
Average receivables serviced for
our whole loan sale partners
864
852
812
734
659
610
174
Average managed
receivables
$
21,697
$
20,988
$
20,694
$
20,629
$
20,283
$
20,052
$
18,460
Note: Ratios may not sum due to
rounding.
CONSUMER & INSURANCE KEY METRICS
(UNAUDITED) (Non-GAAP)
Quarter Ended
Fiscal Year
(unaudited, in millions)
Sep 30,
2023
Jun 30,
2023
Mar 31,
2023
Dec 31,
2022
Sep 30,
2022
2022
2021
Adjusted pretax income
(non-GAAP)
$
252
$
162
$
236
$
249
$
246
$
1,206
$
1,918
Provision for finance receivable
losses
410
479
385
404
420
1,399
587
Net charge-offs
(353
)
(385
)
(382
)
(348
)
(293
)
(1,186
)
(768
)
Change in C&I allowance
for finance receivable losses (non-GAAP)
57
94
3
56
127
213
(181
)
Pretax capital generation
(non-GAAP)
309
256
239
305
373
1,419
1,737
Capital generation, net of
tax(1) (non-GAAP)
$
232
$
192
$
179
$
229
$
280
$
1,064
$
1,303
C&I average net
receivables
$
20,833
$
20,136
$
19,882
$
19,895
$
19,624
$
19,442
$
18,286
Capital generation return on
receivables (non-GAAP)
4.4
%
3.8
%
3.7
%
4.6
%
5.6
%
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% rate.
CONSUMER & INSURANCE PERSONAL LOANS
METRICS (UNAUDITED)
Quarter Ended
Fiscal Year
Sep 30,
Jun 30,
Mar 31,
Dec 31,
Sep 30,
(unaudited, $ in millions)
2023
2023
2023
2022
2022
2022
2021
Gross charge-offs
$
410
$
446
$
445
$
402
$
349
$
1,431
$
990
Recoveries
(63
)
(67
)
(69
)
(58
)
(59
)
(252
)
(222
)
Net charge-offs
$
347
$
379
$
376
$
344
$
290
$
1,179
$
768
Gross charge-off ratio
7.89
%
8.94
%
9.14
%
8.05
%
7.09
%
7.39
%
5.42
%
Recovery ratio
(1.21
%)
(1.34
%)
(1.42
%)
(1.17
%)
(1.20
%)
(1.30
%)
(1.21
%)
Net charge-off ratio
6.68
%
7.60
%
7.72
%
6.88
%
5.89
%
6.09
%
4.20
%
Average net receivables
$
20,640
$
19,999
$
19,767
$
19,803
$
19,553
$
19,377
$
18,284
Yield
22.2
%
22.2
%
22.3
%
22.3
%
22.6
%
22.8
%
23.8
%
Origination volume
$
3,278
$
3,742
$
2,817
$
3,473
$
3,551
$
13,879
$
13,825
30+ delinquency
$
1,156
$
1,036
$
1,042
$
1,154
$
1,027
$
1,154
$
850
90+ delinquency
$
535
$
474
$
534
$
544
$
474
$
544
$
383
30-89 delinquency
$
621
$
562
$
508
$
610
$
553
$
610
$
467
30+ delinquency ratio
5.55
%
5.09
%
5.29
%
5.80
%
5.22
%
5.80
%
4.43
%
90+ delinquency ratio
2.57
%
2.33
%
2.72
%
2.74
%
2.41
%
2.74
%
2.00
%
30-89 delinquency ratio
2.98
%
2.76
%
2.58
%
3.07
%
2.81
%
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/20231025636579/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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