- 4Q 2022 Diluted EPS of $1.48
- 4Q 2022 C&I adjusted diluted EPS of $1.56
- 4Q 2022 Managed receivables of $20.8 billion
- Raises quarterly dividend by 5.3% to $1.00 per
share
- Repurchased 1.6 million shares for $57 million in
4Q
OneMain Holdings, Inc. (NYSE: OMF), the leader in offering
nonprime customers responsible access to credit, today reported
pretax income of $238 million and net income of $180 million for
the fourth quarter of 2022, compared to $355 million and $262
million, respectively, in the prior year quarter. Earnings per
diluted share were $1.48 in the fourth quarter of 2022, compared to
$2.02 in the prior year quarter.
Net income was $878 million for the full year of 2022, compared
to $1.3 billion for the full year of 2021. Earnings per diluted
share were $7.06 in the full year of 2022, compared to $9.87 in the
prior year.
On February 7, 2023, OneMain declared a quarterly dividend of
$1.00 per share, payable on February 24, 2023, to record holders of
the Company's common stock as of the close of business on February
17, 2023.
During the quarter, the Company repurchased approximately 1.6
million shares of common stock for $57 million.
“We feel very good about how our business is positioned as
demand for loans remains strong and credit performance stabilized
in the back half of the year,” said Doug Shulman, Chairman and CEO
of OneMain. “As we enter 2023, we are focused on managing credit
and maintaining a strong balance sheet, while also investing in new
products and channels that will drive long-term shareholder
value.”
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 generated adjusted pretax income of $254 million and
adjusted net income of $191 million for the fourth quarter of 2022,
compared to $413 million and $310 million, respectively, in the
prior year quarter. Adjusted earnings per diluted share were $1.56
for the fourth quarter of 2022, compared to $2.38 in the prior year
quarter. The decline was primarily driven by higher net charge-offs
and an increase in the allowance for finance receivable losses.
C&I generated adjusted net income of $910 million for the
full year of 2022, compared to $1.4 billion in the prior year.
Adjusted earnings per diluted share were $7.32 for the full year
2022, compared to $10.81 in the prior year.
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 $233
million and $1.1 billion for the fourth quarter and full year of
2022, respectively.
Managed receivables, which includes loans serviced for our whole
loan sale partners and our credit card receivables, were $20.8
billion at December 31, 2022, up 6% from $19.6 billion at December
31, 2021.
Personal loan originations totaled $3.5 billion in the fourth
quarter of 2022, down 9% from $3.8 billion in the prior year
quarter. The percentage of secured originations was 50% in the
fourth quarter of 2022, down from 52% in the prior year
quarter.
Interest income in the fourth quarter of 2022 was $1.1 billion,
consistent with the prior year quarter, reflecting higher average
net finance receivables, offset by a lower portfolio yield.
Yield was 22.3% in the fourth quarter of 2022, down from 23.3%
in the prior year quarter, reflecting impacts from the current
macroeconomic environment including higher 90+ days delinquent
receivables.
The provision for finance receivable losses was $404 million in
the fourth quarter of 2022, up $168 million compared to the prior
year period. The increase reflects higher net charge-offs, and an
increase in the allowance for finance receivables losses due to
growth in the receivables portfolio and changes in the
macroeconomic environment.
C&I Select Delinquency and
Loss Ratios
December 31,
2022
September 30,
2022
December 31,
2021
Personal loans:
30-89 days delinquency ratio
3.07 %
2.81 %
2.43 %
30+ days delinquency ratio
5.80 %
5.22 %
4.43 %
90+ days delinquency ratio
2.74 %
2.41 %
2.00 %
Net charge-offs
6.88 %
5.89 %
4.24 %
Operating expense for the fourth quarter of 2022 was $367
million, up 5% from $348 million in the prior year quarter
reflecting our continued investment in the business.
Funding and Liquidity
As of December 31, 2022, the Company had principal debt balances
outstanding of $18.6 billion, 51% of which was secured. The Company
had $498 million of cash and cash equivalents, which included $147
million of cash and cash equivalents held at their regulated
insurance subsidiaries or for other operating activities that are
unavailable for general corporate purposes.
Cash and cash equivalents, together with the Company’s potential
borrowings of $1.25 billion of undrawn committed capacity from an
unsecured corporate revolver, $6.1 billion of undrawn committed
capacity under the revolving conduit facilities, and $9.3 billion
of unencumbered loans, provides a significant liquidity runway
under numerous stress scenarios and assuming no access to the
capital markets. This liquidity runway calculation contemplates all
the anticipated cash needs of the Company.
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 Tuesday, February 7, 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 785-424-1226 (international), and using conference ID
39054, or via a live audio webcast through the Investor Relations
section of the OneMain Financial website. 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 OneMain’s website at
http://investor.onemainfinancial.com 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 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 consist of 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
OneMain Holdings, Inc. (the “Company”) and the Company’s 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 (“Form
10-K”) and Quarterly Reports on Form 10-Q (“Form 10-Qs”) 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.
Such reports are or will be available in the Investor Relations
section of the Company's 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,” “are likely,” “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; risks associated with the COVID-19 pandemic and the
measures taken in response thereto; geopolitical risks, including
recent geopolitical actions outside the U.S.; adverse changes in
our ability to attract and retain employees or key executives;
increased competition or adverse changes in customer responsiveness
to our distribution channels or products; changes in federal,
state, or local laws, regulations, or regulatory policies and
practices or increased regulatory scrutiny of our 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
(unaudited, $ in millions, except per
share amounts)
Dec 31,
2022
Sep 30,
2022
Jun 30,
2022
Mar 31,
2022
Dec 31,
2021
2022
2021
Interest income
$
1,122
$
1,118
$
1,106
$
1,089
$
1,121
$
4,435
$
4,364
Interest expense
(231
)
(223
)
(219
)
(219
)
(235
)
(892
)
(937
)
Net interest income
891
895
887
870
886
3,543
3,427
Provision for finance receivable
losses
(404
)
(421
)
(339
)
(238
)
(237
)
(1,402
)
(593
)
Net interest income after provision for
finance receivable losses
487
474
548
632
649
2,141
2,834
Insurance
111
111
111
111
111
445
434
Investment
22
16
9
15
17
61
65
Gain on sales of finance receivables
13
17
16
17
17
63
47
Net gain (loss) on repurchases and
repayments of debt
(1
)
2
(28
)
—
(29
)
(27
)
(78
)
Other
24
24
20
19
19
87
63
Total other revenues
169
170
128
162
135
629
531
Operating expenses
(384
)
(363
)
(356
)
(353
)
(379
)
(1,457
)
(1,448
)
Insurance policy benefits and claims
(34
)
(31
)
(40
)
(45
)
(50
)
(150
)
(176
)
Total other expenses
(418
)
(394
)
(396
)
(398
)
(429
)
(1,607
)
(1,624
)
Income before income taxes
238
250
280
396
355
1,163
1,741
Income taxes
(58
)
(62
)
(71
)
(95
)
(93
)
(285
)
(427
)
Net income
$
180
$
188
$
209
$
301
$
262
$
878
$
1,314
Weighted average number of diluted
shares
121.9
123.6
124.7
127.5
130.0
124.4
133.1
Diluted EPS
$
1.48
$
1.52
$
1.68
$
2.36
$
2.02
$
7.06
$
9.87
Book value per basic share
$
25.02
$
24.56
$
24.51
$
24.55
$
24.20
$
25.02
$
24.20
Return on assets
3.2
%
3.3
%
3.8
%
5.6
%
4.6
%
4.0
%
6.0
%
Average net receivables
$
19,894
$
19,623
$
19,160
$
19,083
$
19,040
$
19,440
$
18,281
Yield
22.4
%
22.6
%
23.1
%
23.1
%
23.3
%
22.8
%
23.8
%
Change in allowance for finance receivable
losses
$
(56
)
$
(128
)
$
(56
)
$
24
$
(34
)
$
(216
)
$
174
Net charge-offs
(348
)
(293
)
(283
)
(262
)
(203
)
(1,186
)
(767
)
Provision for finance receivable
losses
$
(404
)
$
(421
)
$
(339
)
$
(238
)
$
(237
)
$
(1,402
)
$
(593
)
OneMain Holdings, Inc.
CONSOLIDATED BALANCE SHEETS
(UNAUDITED)
As of
(unaudited, $ in millions)
Dec 31,
2022
Sep 30,
2022
Jun 30,
2022
Mar 31,
2022
Dec 31,
2021
Assets
Cash and cash equivalents
$
498
$
536
$
526
$
640
$
541
Investment securities
1,800
1,747
1,773
1,778
1,992
Net finance receivables
19,986
19,752
19,448
18,979
19,212
Unearned insurance premium and claim
reserves
(749
)
(747
)
(754
)
(741
)
(761
)
Allowance for finance receivable
losses
(2,311
)
(2,255
)
(2,127
)
(2,071
)
(2,095
)
Net finance receivables, less unearned
insurance premium and claim reserves and allowance for finance
receivable losses
16,926
16,750
16,567
16,167
16,356
Restricted cash and restricted cash
equivalents
461
483
534
531
476
Goodwill
1,437
1,437
1,437
1,437
1,437
Other intangible assets
261
272
273
274
274
Other assets
1,150
1,116
1,085
981
1,003
Total assets
$
22,533
$
22,341
$
22,195
$
21,808
$
22,079
Liabilities and Shareholders’
Equity
Long-term debt
$
18,281
$
18,202
$
17,922
$
17,560
$
17,750
Insurance claims and policyholder
liabilities
602
600
612
621
621
Deferred and accrued taxes
5
5
1
45
1
Other liabilities
616
522
627
493
614
Total liabilities
19,504
19,329
19,162
18,719
18,986
Common stock
1
1
1
1
1
Additional paid-in capital
1,689
1,685
1,679
1,672
1,672
Accumulated other comprehensive income
(loss)
(119
)
(125
)
(70
)
(11
)
61
Retained earnings
2,125
2,063
1,994
1,905
1,727
Treasury stock
(667
)
(612
)
(571
)
(478
)
(368
)
Total shareholders’ equity
3,029
3,012
3,033
3,089
3,093
Total liabilities and shareholders’
equity
$
22,533
$
22,341
$
22,195
$
21,808
$
22,079
OneMain Holdings, Inc.
CONSOLIDATED KEY FINANCIAL METRICS,
CONTINUED (UNAUDITED)
As of
(unaudited, $ in millions)
Dec 31,
2022
Sep 30,
2022
Jun 30,
2022
Mar 31,
2022
Dec 31,
2021
Liquidity
Cash and cash equivalents
$
498
$
536
$
526
$
640
$
541
Cash and cash equivalents unavailable for
general corporate purposes
147
142
151
265
158
Unencumbered gross finance receivables
9,304
9,465
9,621
10,206
10,217
Undrawn conduit facilities
6,125
5,675
5,275
5,350
5,400
Undrawn corporate revolver
1,250
1,250
1,250
1,000
1,000
Drawn conduit facilities
50
500
500
650
600
Net adjusted debt
$
17,758
$
17,636
$
17,375
$
17,013
$
17,195
Total Shareholders' equity
$
3,029
$
3,012
$
3,033
$
3,089
$
3,093
Goodwill
(1,437
)
(1,437
)
(1,437
)
(1,437
)
(1,437
)
Other intangible assets
(261
)
(272
)
(273
)
(274
)
(274
)
Junior subordinated debt
172
172
172
172
172
Adjusted tangible common equity
1,503
1,475
1,495
1,550
1,554
Allowance for finance receivable losses,
net of tax (1)
1,733
1,691
1,595
1,553
1,571
Adjusted capital
$
3,236
$
3,166
$
3,090
$
3,103
$
3,125
Net leverage (net adjusted debt to
adjusted capital)
5.5x
5.6x
5.6x
5.5x
5.5x
(1)
Income taxes assume a 25% tax rate.
OneMain Holdings, Inc.
RECONCILIATION OF NON-GAAP FINANCIAL
MEASURES (UNAUDITED)
Quarter Ended
Fiscal Year
(unaudited, $ in millions)
Dec 31,
2022
Sep 30,
2022
Jun 30,
2022
Mar 31,
2022
Dec 31,
2021
2022
2021
Consumer & Insurance
$
249
$
251
$
281
$
396
$
359
$
1,177
$
1,788
Other
(1
)
1
—
—
(1
)
—
(7
)
Segment to GAAP adjustment
(10
)
(2
)
(1
)
—
(3
)
(14
)
(40
)
Income before income taxes - GAAP
basis
$
238
$
250
$
280
$
396
$
355
$
1,163
$
1,741
Pretax income - segment accounting
basis
$
249
$
251
$
281
$
396
$
359
$
1,177
$
1,788
Net loss (gain) on repurchases and
repayments of debt (1)
—
(3
)
28
—
29
26
70
Cash-settled stock-based awards
—
(2
)
1
1
23
—
54
Other (2)
5
4
1
1
2
11
6
Consumer & Insurance adjusted
pretax income (non-GAAP)
$
254
$
250
$
311
$
398
$
413
$
1,214
$
1,918
Reconciling items (3)
$
(15
)
$
(1
)
$
(31
)
$
(2
)
$
(57
)
$
(51
)
$
(171
)
Note:
Amounts may not sum due to
rounding.
(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.
RECONCILIATION OF KEY SEGMENT METRICS
(UNAUDITED) (Non-GAAP)
As of
(unaudited, $ in millions)
Dec 31,
2022
Sep 30,
2022
Jun 30,
2022
Mar 31,
2022
Dec 31,
2021
Consumer & Insurance
$
19,987
$
19,754
$
19,449
$
18,981
$
19,215
Segment to GAAP adjustment
(1
)
(2
)
(1
)
(2
)
(3
)
Net finance receivables - GAAP
basis
$
19,986
$
19,752
$
19,448
$
18,979
$
19,212
Consumer & Insurance
$
2,315
$
2,259
$
2,132
$
2,077
$
2,102
Segment to GAAP adjustment
(4
)
(4
)
(5
)
(6
)
(7
)
Allowance for finance receivable losses
- GAAP basis
$
2,311
$
2,255
$
2,127
$
2,071
$
2,095
OneMain Holdings, Inc.
CONSUMER & INSURANCE SEGMENT
(UNAUDITED) (Non-GAAP)
Quarter Ended
Fiscal Year
(unaudited, in millions, except per share
amounts)
Dec 31,
2022
Sep 30,
2022
Jun 30,
2022
Mar 31,
2022
Dec 31,
2021
2022
2021
Interest income
$
1,121
$
1,116
$
1,104
$
1,087
$
1,119
$
4,429
$
4,355
Interest expense
(230
)
(221
)
(218
)
(217
)
(233
)
(886
)
(930
)
Net interest income
891
895
886
870
886
3,543
3,425
Provision for finance receivable
losses
(404
)
(420
)
(338
)
(237
)
(236
)
(1,399
)
(587
)
Net interest income after provision for
finance receivable losses
487
475
548
633
650
2,144
2,838
Insurance
111
111
111
111
111
445
434
Investment
22
16
9
15
17
61
65
Gain on sales of finance receivables
13
17
16
17
17
63
47
Other
22
21
17
15
16
75
51
Total other revenues
168
165
153
158
161
644
597
Operating expenses
(367
)
(359
)
(350
)
(348
)
(348
)
(1,424
)
(1,341
)
Insurance policy benefits and claims
(34
)
(31
)
(40
)
(45
)
(50
)
(150
)
(176
)
Total other expenses
(401
)
(390
)
(390
)
(393
)
(398
)
(1,574
)
(1,517
)
Adjusted pretax income
(non-GAAP)
254
250
311
398
413
1,214
1,918
Income taxes (1)
(63
)
(63
)
(78
)
(99
)
(103
)
(304
)
(480
)
Adjusted net income (non-GAAP)
$
191
$
187
$
233
$
299
$
310
$
910
$
1,438
Weighted average number of diluted
shares
121.9
123.6
124.7
127.5
130.0
124.4
133.1
C&I adjusted diluted EPS
$
1.56
$
1.51
$
1.87
$
2.35
$
2.38
$
7.32
$
10.81
Note:
Amounts may not sum due to
rounding.
(1)
Income taxes assume a 25% tax rate.
OneMain Holdings, Inc.
CONSUMER & INSURANCE SEGMENT
METRICS (UNAUDITED) (Non-GAAP)
Quarter Ended
Fiscal Year
(unaudited, $ in millions)
Dec 31,
2022
Sep 30,
2022
Jun 30,
2022
Mar 31,
2022
Dec 31,
2021
2022
2021
Interest income
22.3
%
22.6
%
23.1
%
23.1
%
23.3
%
22.8
%
23.8
%
Interest expense
(4.6
%)
(4.5
%)
(4.6
%)
(4.6
%)
(4.9
%)
(4.6
%)
(5.1
%)
Net interest income
17.8
%
18.1
%
18.6
%
18.5
%
18.5
%
18.2
%
18.7
%
Other net revenue (1)
2.7
%
2.7
%
2.4
%
2.4
%
2.3
%
2.5
%
2.3
%
Net charge-off
(6.9
%)
(5.9
%)
(5.9
%)
(5.6
%)
(4.2
%)
(6.1
%)
(4.2
%)
Change in allowance
(1.1
%)
(2.6
%)
(1.1
%)
0.5
%
(0.7
%)
(1.1
%)
1.0
%
Operating expenses
(7.3
%)
(7.3
%)
(7.3
%)
(7.4
%)
(7.3
%)
(7.3
%)
(7.3
%)
Income tax expense (2)
(1.3
%)
(1.3
%)
(1.6
%)
(2.1
%)
(2.2
%)
(1.6
%)
(2.6
%)
Return on receivables
3.8
%
3.8
%
4.9
%
6.4
%
6.5
%
4.7
%
7.9
%
Net finance receivables - personal
loans
$
19,880
$
19,675
$
19,385
$
18,931
$
19,190
$
19,880
$
19,190
Net finance receivables - credit cards
107
79
64
50
25
107
25
Net finance receivables
19,987
19,754
19,449
18,981
19,215
19,987
19,215
Finance receivables serviced for our whole
loan sale partners
766
698
616
528
414
766
414
Managed receivables
$
20,753
$
20,452
$
20,065
$
19,509
$
19,629
$
20,753
$
19,629
Average net finance receivables - personal
loans
$
19,803
$
19,553
$
19,105
$
19,046
$
19,037
$
19,377
$
18,284
Average net finance receivables - credit
cards
92
71
57
40
6
65
2
Average net receivables
19,895
19,624
19,162
19,086
19,043
19,442
18,286
Average receivables serviced for our whole
loan sale partners
734
659
572
474
351
610
174
Average managed receivables
$
20,629
$
20,283
$
19,734
$
19,560
$
19,394
$
20,052
$
18,460
Operating expenses
$
(367
)
$
(359
)
$
(350
)
$
(348
)
$
(348
)
$
(1,424
)
$
(1,341
)
Average managed receivables
$
20,629
$
20,283
$
19,734
$
19,560
$
19,394
$
20,052
$
18,460
Operating expense % of average managed
receivables
(7.1
%)
(7.0
%)
(7.1
%)
(7.2
%)
(7.1
%)
(7.1
%)
(7.3
%)
Note:
Consumer & Insurance financial
information is presented on an adjusted Segment Accounting Basis.
All ratios are shown as a percentage of C&I average net finance
receivables. Ratios may not sum due to rounding.
(1)
Other net revenue includes total other
revenues less insurance policy benefits and claims.
(2)
Income taxes assume a 25% tax
rate.
OneMain Holdings, Inc.
CONSUMER & INSURANCE KEY METRICS
(UNAUDITED) (Non-GAAP)
Quarter Ended
Fiscal Year
(unaudited, in millions)
Dec 31,
2022
Sep 30,
2022
Jun 30,
2022
Mar 31,
2022
Dec 31,
2021
2022
2021
Adjusted pretax income
(non-GAAP)
$
254
$
250
$
311
$
398
$
413
$
1,214
$
1,918
Provision for finance receivable
losses
404
420
338
237
236
1,399
587
Net charge-offs
(348
)
(293
)
(283
)
(262
)
(204
)
(1,186
)
(768
)
Change in C&I allowance for finance
receivable losses (non-GAAP)
56
127
55
(25
)
32
213
(181
)
Pretax capital generation
(non-GAAP)
310
377
366
373
445
1,427
1,737
Capital generation, net of tax(1)
(non-GAAP)
$
233
$
283
$
275
$
280
$
334
$
1,070
$
1,303
C&I average net receivables
$
19,895
$
19,624
$
19,162
$
19,086
$
19,043
$
19,442
$
18,286
Capital generation return on
receivables
4.6
%
5.7
%
5.7
%
6.0
%
7.0
%
5.5
%
7.1
%
Consumer and Insurance
Non-TDR net finance receivables
$
19,072
$
18,939
$
18,759
$
18,307
$
18,544
$
19,072
$
18,544
TDR net finance receivables
915
815
690
674
671
915
671
Net finance receivables (2)
$
19,987
$
19,754
$
19,449
$
18,981
$
19,215
$
19,987
$
19,215
Non-TDR allowance
$
1,942
$
1,947
$
1,854
$
1,806
$
1,823
$
1,942
$
1,823
TDR allowance
373
312
278
271
279
373
279
Allowance (2)
$
2,315
$
2,259
$
2,132
$
2,077
$
2,102
$
2,315
$
2,102
Non-TDR allowance ratio
10.18
%
10.28
%
9.88
%
9.86
%
9.83
%
10.18
%
9.83
%
TDR allowance ratio
40.79
%
38.22
%
40.34
%
40.20
%
41.56
%
40.79
%
41.56
%
Allowance ratio
11.58
%
11.44
%
10.96
%
10.94
%
10.94
%
11.58
%
10.94
%
Note:
Consumer & Insurance financial
information is presented on an adjusted Segment Accounting Basis.
Amounts may not sum due to rounding.
(1)
Income taxes assume a 25% tax rate.
(2)
For reconciliation to GAAP, see
"Reconciliation of Key Segment Metrics (Unaudited) (Non-GAAP)."
OneMain Holdings, Inc.
CONSUMER & INSURANCE FINANCIAL
METRICS (UNAUDITED) (Non-GAAP)
Quarter Ended
Fiscal Year
(unaudited, $ in millions)
Dec 31,
2022
Sep 30,
2022
Jun 30,
2022
Mar 31,
2022
Dec 31,
2021
2022
2021
Personal Loans
Gross charge-offs
$
402
$
349
$
351
$
329
$
260
$
1,431
$
990
Recoveries
(58
)
(59
)
(68
)
(67
)
(56
)
(252
)
(222
)
Net charge-offs
$
344
$
290
$
283
$
262
$
204
$
1,179
$
768
Gross charge-off ratio
8.05
%
7.09
%
7.37
%
7.00
%
5.43
%
7.39
%
5.42
%
Recovery ratio
(1.17
%)
(1.20
%)
(1.41
%)
(1.42
%)
(1.18
%)
(1.30
%)
(1.21
%)
Net charge-off ratio
6.88
%
5.89
%
5.96
%
5.58
%
4.24
%
6.09
%
4.20
%
Average net receivables
$
19,803
$
19,553
$
19,105
$
19,046
$
19,037
$
19,377
$
18,284
Yield
22.3
%
22.6
%
23.1
%
23.1
%
23.3
%
22.8
%
23.8
%
Origination volume
$
3,473
$
3,551
$
3,897
$
2,959
$
3,836
$
13,879
$
13,825
30-89 delinquency
$
610
$
553
$
529
$
427
$
467
$
610
$
467
30+ delinquency
$
1,154
$
1,027
$
945
$
845
$
850
$
1,154
$
850
90+ delinquency
$
544
$
474
$
416
$
418
$
383
$
544
$
383
30-89 delinquency ratio
3.07
%
2.81
%
2.73
%
2.25
%
2.43
%
3.07
%
2.43
%
30+ delinquency ratio
5.80
%
5.22
%
4.88
%
4.46
%
4.43
%
5.80
%
4.43
%
90+ delinquency ratio
2.74
%
2.41
%
2.15
%
2.21
%
2.00
%
2.74
%
2.00
%
Note:
Consumer & Insurance financial
information is presented on an adjusted 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
- Credit card purchase volume = credit card purchase
transactions + cash advances – returns
- 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 leverage = net adjusted debt / adjusted capital
- Opex ratio = annualized C&I operating expenses /
C&I 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
- 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/20230207005298/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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