- 4Q 2023 Diluted EPS of $1.38
- 4Q 2023 C&I adjusted diluted EPS of $1.39
- 4Q 2023 Managed receivables of $22.2 billion
- Declared quarterly dividend of $1.00 per share
- Repurchased 531 thousand shares for $20 million in 4Q
NEW
YORK, Feb. 7, 2024 /PRNewswire/ -- OneMain
Holdings, Inc. (NYSE: OMF), the leader in offering nonprime
consumers responsible access to credit, today reported pretax
income of $220 million and net income
of $165 million for the fourth
quarter of 2023, compared to $233
million and $176 million,
respectively, in the prior year quarter. Earnings per diluted share
were $1.38 in the fourth quarter of
2023, compared to $1.44 in the prior
year quarter.
Net income was $641 million for the full year of 2023,
compared to $872 million for the full year of 2022. Earnings
per diluted share were $5.32 in the
full year of 2023, compared to $7.01
in the prior year.
On February 7, 2024, OneMain declared a quarterly dividend
of $1.00 per share, payable on
February 23, 2024, to record holders of the Company's common
stock as of the close of business on February 20, 2024.
During the quarter, the Company repurchased approximately
531 thousand shares of common stock for $20 million.
"OneMain finished the year very well positioned for the future,"
said Doug Shulman, Chairman and CEO
of OneMain. "As we enter 2024, we feel very good about the
competitive position of the business, management of our credit box,
and development of new products that will drive profitable growth
in future years."
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 $223
million and adjusted net income was $167 million for the fourth quarter of 2023,
compared to $249 million and
$186 million, respectively, in the
prior year quarter. Adjusted earnings per diluted share were
$1.39 for the fourth quarter of 2023,
compared to $1.53 in the prior year
quarter.
C&I generated adjusted net income of $655 million for
the full year of 2023, compared to $904 million in the prior
year.
Adjusted earnings per diluted share were $5.43 for the full year 2023, compared to
$7.27 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
$191 million for the fourth quarter
2023, compared to $229 million in the
prior year quarter. The decline was driven by higher net
charge-offs and interest expense, partially offset by an increase
in interest income in the current quarter compared to the prior
year period.
Managed receivables, which includes loans serviced for our whole
loan sale partners, were $22.2
billion at December 31, 2023,
up 7% from $20.8 billion at
December 31, 2022.
Personal loan originations totaled $3.0 billion in the fourth quarter of 2023,
down 13% from $3.5 billion in the
prior year quarter.
Interest income in the fourth quarter of 2023 was $1.2 billion, up 6% from $1.1 billion in the prior year quarter,
reflecting higher average net finance receivables, partially offset
by a lower portfolio yield.
Personal loan yield was 22.1% in the fourth quarter of 2023,
down from 22.3% in the prior year quarter, reflecting impacts from
the current macroeconomic environment.
The provision for finance receivable losses was $446 million in the fourth quarter of 2023, up
$42 million compared to the prior
year period. During the fourth quarter of 2023, the allowance for
finance receivable losses increased $31
million, driven by growth in receivables.
C&I Select
Delinquency and Loss Ratios
|
|
December 31,
2023
|
|
September 30,
2023
|
|
December 31,
2022
|
|
|
|
|
|
|
|
Personal
loans:
|
|
|
|
|
|
|
30+ days delinquency
ratio
|
|
6.16 %
|
|
5.55 %
|
|
5.80 %
|
90+ days delinquency
ratio
|
|
2.88 %
|
|
2.57 %
|
|
2.74 %
|
30-89 days delinquency
ratio
|
|
3.28 %
|
|
2.98 %
|
|
3.07 %
|
Net
charge-offs
|
|
7.70 %
|
|
6.68 %
|
|
6.88 %
|
Operating expense for the fourth quarter of 2023 was
$382 million, up 4% from $367 million in the prior year quarter reflecting
continued investment in the business.
Funding and Liquidity
As of December 31, 2023, the
Company had principal debt balances outstanding of $20.1 billion, 58% of which was secured. The
Company had $1.0 billion of cash
and cash equivalents, which included $148
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
$1.3 billion of undrawn
committed capacity from an unsecured corporate revolver,
$6.4 billion of undrawn committed
capacity under revolving conduit facilities, and $8.4 billion of unencumbered receivables,
provides significant liquidity resources.
Conference Call & Webcast Information
OneMain management will host a conference call and webcast to
discuss the Company's results, outlook, and related matters at
9:00 am Eastern Time on Wednesday,
February 7, 2024. Both the call and webcast are open to the general
public. The general public is invited to listen to the call by
dialing 800-579-2568 (U.S. domestic) or 785-424-1619
(international), and using conference ID 44662, or via a live audio
webcast through the Investor Relations section of the OneMain
Financial website at http://investor.onemainfinancial.com. For
those unable to listen to the live broadcast, a replay will be
available on our website after the event. An investor presentation
will be available on the Investor Relations page of the OneMain
Financial website prior to the start of the conference call.
About OneMain Holdings, Inc.
OneMain Financial (NYSE: OMF) is the leader in offering nonprime
consumers responsible access to credit and is dedicated to
improving the financial well-being of hardworking Americans. We
empower our customers to solve today's problems and reach a better
financial future through personalized solutions available online
and in 1,400 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, and other
items and strategic activities, which include direct costs
associated with COVID-19, restructuring charges and the expense
associated with cash-settled stock-based awards. We believe these
non-GAAP financial measures are useful in assessing the
profitability of our segment.
We also use Consumer and Insurance pretax capital generation and
Consumer and Insurance capital generation, non-GAAP financial
measures, as a key performance measure of our segment. Consumer and
Insurance pretax capital generation represents Consumer and
Insurance adjusted pretax income, as discussed above, and excludes
the change in our Consumer and Insurance allowance for finance
receivable losses in the period while still considering the
Consumer and Insurance net charge-offs incurred during the period.
Consumer and Insurance capital generation represents the after-tax
effect of Consumer and Insurance pretax capital generation. We
believe that these non-GAAP measures are useful in assessing the
capital created in the period impacting the overall capital
adequacy of the Company. We believe that the Company's reserves,
combined with its equity, represent the Company's loss absorption
capacity.
We utilize these non-GAAP measures in evaluating our
performance. Additionally, these non-GAAP measures are consistent
with the performance goals established in OMH's executive
compensation program. These non-GAAP financial measures should be
considered supplemental to, but not as a substitute for or superior
to, income (loss) before income taxes, net income, or other
measures of financial performance prepared in accordance with
GAAP.
This document contains summarized information concerning
the Company and its business, operations, financial performance and
trends. No representation is made that the information in this
document is complete. For additional financial, statistical and
business related information see the Company's most recent Annual
Report on Form 10-K and Quarterly Report on Form 10-Q filed with
the U.S. Securities and Exchange Commission (the "SEC"), as well as
the Company's other reports filed with the SEC from time to time,
which are or will be available in the Investor Relations section of
the OneMain Financial website (www.omf.com) and the SEC's website
(www.sec.gov).
Cautionary Note Regarding Forward-Looking
Statements
This document contains "forward-looking
statements" within the meaning of the Private Securities Litigation
Reform Act of 1995. Statements preceded by, followed by or that
otherwise include the words "anticipates," "appears," "assumes,"
"believes," "can," "continues," "could," "estimates," "expects,"
"forecasts," "foresees," "goal," "intends," "likely," "objective,"
"plans," "projects," "target," "trend," "remains," and similar
expressions or future or conditional verbs such as "could," "may,"
"might," "should," "will" or "would" are intended to identify
forward-looking statements, but these words are not the exclusive
means of identifying forward-looking statements.
Forward-looking statements are not statements of historical fact
but instead represent only management's current beliefs regarding
future events, objectives, goals, projections, strategies,
performance, and future plans, and underlying assumptions and other
statements related thereto. You should not place undue reliance on
these forward-looking statements. By their nature, forward-looking
statements are subject to risks, uncertainties, assumptions and
other important factors that may cause actual results, performance
or achievements to differ materially from those expressed in or
implied by such forward-looking statements. Important factors that
could cause actual results, performance, or achievements to differ
materially from those expressed in or implied by forward-looking
statements include, without limitation, the following: adverse
changes and volatility in general economic conditions, including
the interest rate environment and the financial markets; the
sufficiency of our allowance for finance receivable losses;
increased levels of unemployment and personal bankruptcies; the
current inflationary environment and related trends affecting our
customers; natural or accidental events such as earthquakes,
hurricanes, pandemics, floods or wildfires affecting our customers,
collateral, or our facilities; a failure in or breach of our
information, operational or security systems or infrastructure or
those of third parties, including as a result of cyber incidents,
war or other disruptions; the adequacy of our credit risk scoring
models; geopolitical risks, including recent geopolitical actions
outside the U.S.; adverse changes in our ability to attract and
retain employees or key executives; increased competition or
adverse changes in customer responsiveness to our distribution
channels or products; changes in federal, state, or local laws,
regulations, or regulatory policies and practices or increased
regulatory scrutiny of our business or industry; risks associated
with our insurance operations; the costs and effects of any actual
or alleged violations of any federal, state, or local
laws, rules or regulations; the costs and effects of any fines,
penalties, judgments, decrees, orders, inquiries, investigations,
subpoenas, or enforcement or other proceedings of any governmental
or quasi-governmental agency or authority; our substantial
indebtedness and our continued ability to access the capital
markets and maintain adequate current sources of funds to satisfy
our cash flow requirements; our ability to comply with all of our
covenants; the effects of any downgrade of our debt ratings by
credit rating agencies; and other risks and uncertainties described
in the "Risk Factors" and "Management's Discussion and Analysis"
sections of the Company's most recent Form 10-K filed with the SEC
and in the Company's other filings with the SEC from time to
time.
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,
2023
|
|
Sep 30,
2023
|
|
Jun 30,
2023
|
|
Mar 31,
2023
|
|
Dec 31,
2022
|
|
|
2023
|
|
2022
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest
income
|
|
$
1,187
|
|
$
1,167
|
|
$
1,117
|
|
$
1,094
|
|
$
1,122
|
|
|
$
4,564
|
|
$
4,435
|
Interest
expense
|
|
(270)
|
|
(267)
|
|
(244)
|
|
(239)
|
|
(231)
|
|
|
(1,019)
|
|
(892)
|
Net interest
income
|
|
917
|
|
900
|
|
873
|
|
855
|
|
891
|
|
|
3,545
|
|
3,543
|
Provision for finance
receivable losses
|
|
(446)
|
|
(410)
|
|
(479)
|
|
(385)
|
|
(404)
|
|
|
(1,721)
|
|
(1,402)
|
Net interest income
after provision for finance receivable losses
|
|
471
|
|
490
|
|
394
|
|
470
|
|
487
|
|
|
1,824
|
|
2,141
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Insurance
|
|
113
|
|
113
|
|
112
|
|
111
|
|
111
|
|
|
448
|
|
445
|
Investment
|
|
32
|
|
32
|
|
27
|
|
25
|
|
22
|
|
|
116
|
|
61
|
Gain on sales of
finance receivables
|
|
10
|
|
11
|
|
13
|
|
17
|
|
13
|
|
|
52
|
|
63
|
Net loss on repurchases
and repayments of debt
|
|
(1)
|
|
—
|
|
—
|
|
—
|
|
(1)
|
|
|
—
|
|
(27)
|
Other
|
|
32
|
|
29
|
|
33
|
|
24
|
|
24
|
|
|
119
|
|
87
|
Total other
revenues
|
|
186
|
|
185
|
|
185
|
|
177
|
|
169
|
|
|
735
|
|
629
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
expenses
|
|
(388)
|
|
(381)
|
|
(397)
|
|
(365)
|
|
(384)
|
|
|
(1,530)
|
|
(1,457)
|
Insurance policy
benefits and claims
|
|
(49)
|
|
(48)
|
|
(44)
|
|
(47)
|
|
(39)
|
|
|
(189)
|
|
(158)
|
Total other
expenses
|
|
(437)
|
|
(429)
|
|
(441)
|
|
(412)
|
|
(423)
|
|
|
(1,719)
|
|
(1,615)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income before income
taxes
|
|
220
|
|
246
|
|
138
|
|
235
|
|
233
|
|
|
840
|
|
1,155
|
Income taxes
|
|
(55)
|
|
(52)
|
|
(35)
|
|
(56)
|
|
(57)
|
|
|
(199)
|
|
(283)
|
Net
income
|
|
$
165
|
|
$
194
|
|
$
103
|
|
$
179
|
|
$
176
|
|
|
$
641
|
|
$
872
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average number
of diluted shares
|
|
120.1
|
|
120.8
|
|
120.6
|
|
121.0
|
|
121.9
|
|
|
120.6
|
|
124.4
|
Diluted EPS
|
|
$
1.38
|
|
$
1.61
|
|
$
0.85
|
|
$
1.48
|
|
$
1.44
|
|
|
$
5.32
|
|
$
7.01
|
Book value per basic
share
|
|
$
26.60
|
|
$
25.86
|
|
$
25.39
|
|
$
25.55
|
|
$
24.91
|
|
|
$
26.60
|
|
$
24.91
|
Return on
assets
|
|
2.7 %
|
|
3.2 %
|
|
1.8 %
|
|
3.2 %
|
|
3.1 %
|
|
|
2.7 %
|
|
3.9 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Change in allowance for
finance receivable losses
|
|
$
(31)
|
|
$
(57)
|
|
$
(94)
|
|
$
(3)
|
|
$
(56)
|
|
|
$
(185)
|
|
$
(216)
|
Net
charge-offs
|
|
(415)
|
|
(353)
|
|
(385)
|
|
(382)
|
|
(348)
|
|
|
(1,536)
|
|
(1,186)
|
Provision for
finance receivable losses
|
|
$
(446)
|
|
$
(410)
|
|
$
(479)
|
|
$
(385)
|
|
$
(404)
|
|
|
$ (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 prior period financial information to reflect the effects of
the adoption.
|
OneMain Holdings,
Inc.
|
CONSOLIDATED BALANCE
SHEETS (UNAUDITED)
|
|
|
|
|
|
As of
|
|
|
|
|
|
|
|
|
|
|
|
(unaudited, $ in
millions)
|
|
Dec 31,
2023
|
|
Sep 30,
2023
|
|
Jun 30,
2023
|
|
Mar 31,
2023
|
|
Dec 31,
2022
|
|
|
|
|
|
|
|
|
|
|
|
Assets
|
|
|
|
|
|
|
|
|
|
|
Cash and cash
equivalents
|
|
$
1,014
|
|
$
1,190
|
|
$
1,021
|
|
$
544
|
|
$
498
|
Investment
securities
|
|
1,719
|
|
1,635
|
|
1,710
|
|
1,786
|
|
1,800
|
Net finance
receivables
|
|
21,349
|
|
21,067
|
|
20,510
|
|
19,809
|
|
19,986
|
Unearned insurance
premium and claim reserves
|
|
(771)
|
|
(772)
|
|
(761)
|
|
(740)
|
|
(749)
|
Allowance for finance
receivable losses
|
|
(2,480)
|
|
(2,449)
|
|
(2,392)
|
|
(2,298)
|
|
(2,311)
|
Net finance
receivables, less unearned insurance premium and claim reserves and
allowance for finance
receivable losses
|
|
18,098
|
|
17,846
|
|
17,357
|
|
16,771
|
|
16,926
|
Restricted cash and
restricted cash equivalents
|
|
534
|
|
580
|
|
532
|
|
531
|
|
461
|
Goodwill
|
|
1,437
|
|
1,437
|
|
1,437
|
|
1,437
|
|
1,437
|
Other intangible
assets
|
|
260
|
|
260
|
|
260
|
|
261
|
|
261
|
Other assets
|
|
1,232
|
|
1,198
|
|
1,194
|
|
1,113
|
|
1,154
|
Total
assets
|
|
$
24,294
|
|
$
24,146
|
|
$
23,511
|
|
$
22,443
|
|
$
22,537
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities and
Shareholders' Equity
|
|
|
|
|
|
|
|
|
|
|
Long-term
debt
|
|
$ 19,813
|
|
$ 19,851
|
|
$ 19,195
|
|
$ 18,206
|
|
$ 18,281
|
Insurance claims and
policyholder liabilities
|
|
615
|
|
599
|
|
616
|
|
615
|
|
620
|
Deferred and accrued
taxes
|
|
9
|
|
6
|
|
5
|
|
22
|
|
5
|
Other
liabilities
|
|
671
|
|
581
|
|
637
|
|
519
|
|
616
|
Total
liabilities
|
|
21,108
|
|
21,037
|
|
20,453
|
|
19,362
|
|
19,522
|
|
|
|
|
|
|
|
|
|
|
|
Common stock
|
|
1
|
|
1
|
|
1
|
|
1
|
|
1
|
Additional paid-in
capital
|
|
1,715
|
|
1,706
|
|
1,702
|
|
1,693
|
|
1,689
|
Accumulated other
comprehensive income (loss)
|
|
(87)
|
|
(129)
|
|
(114)
|
|
(108)
|
|
(127)
|
Retained
earnings
|
|
2,285
|
|
2,240
|
|
2,168
|
|
2,188
|
|
2,119
|
Treasury
stock
|
|
(728)
|
|
(709)
|
|
(699)
|
|
(693)
|
|
(667)
|
Total shareholders'
equity
|
|
3,186
|
|
3,109
|
|
3,058
|
|
3,081
|
|
3,015
|
Total liabilities
and shareholders' equity
|
|
$
24,294
|
|
$
24,146
|
|
$
23,511
|
|
$
22,443
|
|
$
22,537
|
|
|
|
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
|
|
|
|
|
|
|
|
|
|
|
|
(unaudited, $ in
millions)
|
|
Dec 31,
2023
|
|
Sep 30,
2023
|
|
Jun 30,
2023
|
|
Mar 31,
2023
|
|
Dec 31,
2022
|
|
|
|
|
|
|
|
|
|
|
|
Liquidity
|
|
|
|
|
|
|
|
|
|
|
Cash and cash
equivalents
|
|
$
1,014
|
|
$
1,190
|
|
$
1,021
|
|
$
544
|
|
$
498
|
Cash and cash
equivalents unavailable for general corporate purposes
|
|
148
|
|
169
|
|
196
|
|
177
|
|
147
|
Unencumbered
receivables
|
|
8,427
|
|
7,715
|
|
8,577
|
|
8,574
|
|
9,407
|
Undrawn conduit
facilities
|
|
6,399
|
|
6,175
|
|
6,175
|
|
6,075
|
|
6,125
|
Undrawn corporate
revolver
|
|
1,325
|
|
1,250
|
|
1,250
|
|
1,250
|
|
1,250
|
Drawn conduit
facilities
|
|
1
|
|
—
|
|
—
|
|
100
|
|
50
|
|
|
|
|
|
|
|
|
|
|
|
Net adjusted
debt
|
|
$
18,775
|
|
$
18,658
|
|
$
18,198
|
|
$
17,667
|
|
$
17,758
|
|
|
|
|
|
|
|
|
|
|
|
Total Shareholders'
equity
|
|
$
3,186
|
|
$
3,109
|
|
$
3,058
|
|
$
3,081
|
|
$
3,015
|
Goodwill
|
|
(1,437)
|
|
(1,437)
|
|
(1,437)
|
|
(1,437)
|
|
(1,437)
|
Other intangible
assets
|
|
(260)
|
|
(260)
|
|
(260)
|
|
(261)
|
|
(261)
|
Junior subordinated
debt
|
|
172
|
|
172
|
|
172
|
|
172
|
|
172
|
Adjusted tangible
common equity
|
|
1,661
|
|
1,584
|
|
1,533
|
|
1,555
|
|
1,489
|
Allowance for finance
receivable losses, net of tax (1)
|
|
1,860
|
|
1,837
|
|
1,794
|
|
1,724
|
|
1,733
|
Adjusted
capital
|
|
$
3,521
|
|
$
3,421
|
|
$
3,327
|
|
$
3,279
|
|
$
3,222
|
|
|
|
|
|
|
|
|
|
|
|
Net leverage (net
adjusted debt to adjusted capital)
|
|
5.3x
|
|
5.5x
|
|
5.5x
|
|
5.4x
|
|
5.5x
|
|
|
|
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)
|
|
Dec 31,
2023
|
|
Sep 30,
2023
|
|
Jun 30,
2023
|
|
Mar 31,
2023
|
|
Dec 31,
2022
|
|
|
2023
|
|
2022
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Consumer &
Insurance
|
|
$
220
|
|
$
250
|
|
$
138
|
|
$
236
|
|
$
244
|
|
|
$
845
|
|
$
1,169
|
Other
|
|
(1)
|
|
(4)
|
|
—
|
|
(1)
|
|
(1)
|
|
|
(6)
|
|
—
|
Segment to GAAP
adjustment
|
|
1
|
|
—
|
|
—
|
|
—
|
|
(10)
|
|
|
1
|
|
(14)
|
Income before income
taxes - GAAP basis
|
|
$
220
|
|
$
246
|
|
$
138
|
|
$
235
|
|
$
233
|
|
|
$
840
|
|
$
1,155
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Consumer &
Insurance pretax income
|
|
$
220
|
|
$
250
|
|
$
138
|
|
$
236
|
|
$
244
|
|
|
$
845
|
|
$
1,169
|
Regulatory
settlements
|
|
2
|
|
—
|
|
24
|
|
—
|
|
—
|
|
|
26
|
|
—
|
Net loss on repurchases
and repayments of debt (1)
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
|
—
|
|
26
|
Other
(2)
|
|
1
|
|
2
|
|
—
|
|
—
|
|
5
|
|
|
3
|
|
11
|
Consumer &
Insurance adjusted pretax income (non-GAAP)
|
|
$
223
|
|
$
252
|
|
$
162
|
|
$
236
|
|
$
249
|
|
|
$
874
|
|
$
1,206
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciling items
(3)
|
|
$
(2)
|
|
$
(2)
|
|
$
(24)
|
|
$
—
|
|
$
(15)
|
|
|
$
(28)
|
|
$
(51)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Consumer &
Insurance
|
|
$ 21,349
|
|
$ 21,068
|
|
$ 20,511
|
|
$ 19,810
|
|
$ 19,987
|
|
|
$ 21,349
|
|
$ 19,987
|
Segment to GAAP
adjustment
|
|
—
|
|
(1)
|
|
(1)
|
|
(1)
|
|
(1)
|
|
|
—
|
|
(1)
|
Net finance
receivables - GAAP basis
|
|
$
21,349
|
|
$
21,067
|
|
$
20,510
|
|
$
19,809
|
|
$
19,986
|
|
|
$
21,349
|
|
$
19,986
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Consumer &
Insurance
|
|
$
2,480
|
|
$
2,449
|
|
$
2,392
|
|
$
2,298
|
|
$
2,315
|
|
|
$
2,480
|
|
$
2,315
|
Segment to GAAP
adjustment
|
|
—
|
|
—
|
|
—
|
|
—
|
|
(4)
|
|
|
—
|
|
(4)
|
Allowance for
finance receivable losses - GAAP basis
|
|
$
2,480
|
|
$
2,449
|
|
$
2,392
|
|
$
2,298
|
|
$
2,311
|
|
|
$
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 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.
|
(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
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(unaudited, in
millions, except per share amounts)
|
|
Dec 31,
2023
|
|
Sep 30,
2023
|
|
Jun 30,
2023
|
|
Mar 31,
2023
|
|
Dec 31,
2022
|
|
|
2023
|
|
2022
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest
income
|
|
$
1,186
|
|
$
1,166
|
|
$
1,115
|
|
$
1,092
|
|
$
1,121
|
|
|
$
4,559
|
|
$
4,429
|
Interest
expense
|
|
(271)
|
|
(265)
|
|
(242)
|
|
(238)
|
|
(230)
|
|
|
(1,015)
|
|
(886)
|
Net interest
income
|
|
915
|
|
901
|
|
873
|
|
854
|
|
891
|
|
|
3,544
|
|
3,543
|
Provision for finance
receivable losses
|
|
(446)
|
|
(410)
|
|
(479)
|
|
(385)
|
|
(404)
|
|
|
(1,721)
|
|
(1,399)
|
Net interest income
after provision for finance receivable losses
|
|
469
|
|
491
|
|
394
|
|
469
|
|
487
|
|
|
1,823
|
|
2,144
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Insurance
|
|
113
|
|
113
|
|
112
|
|
111
|
|
111
|
|
|
448
|
|
445
|
Investment
|
|
32
|
|
32
|
|
27
|
|
25
|
|
22
|
|
|
116
|
|
61
|
Gain on sales of
finance receivables
|
|
10
|
|
11
|
|
13
|
|
17
|
|
13
|
|
|
52
|
|
63
|
Other
|
|
30
|
|
26
|
|
30
|
|
23
|
|
22
|
|
|
111
|
|
75
|
Total other
revenues
|
|
185
|
|
182
|
|
182
|
|
176
|
|
168
|
|
|
727
|
|
644
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
expenses
|
|
(382)
|
|
(373)
|
|
(370)
|
|
(362)
|
|
(367)
|
|
|
(1,487)
|
|
(1,424)
|
Insurance policy
benefits and claims
|
|
(49)
|
|
(48)
|
|
(44)
|
|
(47)
|
|
(39)
|
|
|
(189)
|
|
(158)
|
Total other
expenses
|
|
(431)
|
|
(421)
|
|
(414)
|
|
(409)
|
|
(406)
|
|
|
(1,676)
|
|
(1,582)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted pretax
income (non-GAAP)
|
|
223
|
|
252
|
|
162
|
|
236
|
|
249
|
|
|
874
|
|
1,206
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income taxes
(1)
|
|
(56)
|
|
(63)
|
|
(40)
|
|
(59)
|
|
(63)
|
|
|
(219)
|
|
(302)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted net income
(non-GAAP)
|
|
$
167
|
|
$
189
|
|
$
122
|
|
$
177
|
|
$
186
|
|
|
$
655
|
|
$
904
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average number
of diluted shares
|
|
120.1
|
|
120.8
|
|
120.6
|
|
121.0
|
|
121.9
|
|
|
120.6
|
|
124.4
|
C&I adjusted
diluted EPS
|
|
$
1.39
|
|
$
1.57
|
|
$
1.01
|
|
$
1.46
|
|
$
1.53
|
|
|
$
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 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)
|
|
Dec 31,
2023
|
|
Sep 30,
2023
|
|
Jun 30,
2023
|
|
Mar 31,
2023
|
|
Dec 31,
2022
|
|
|
2023
|
|
2022
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net finance receivables
- personal loans
|
|
$ 21,019
|
|
$ 20,836
|
|
$ 20,352
|
|
$ 19,688
|
|
$ 19,880
|
|
|
$ 21,019
|
|
$ 19,880
|
Net finance receivables
- credit cards
|
|
330
|
|
232
|
|
159
|
|
122
|
|
107
|
|
|
330
|
|
107
|
Net finance
receivables
|
|
$
21,349
|
|
$
21,068
|
|
$
20,511
|
|
$
19,810
|
|
$
19,987
|
|
|
$
21,349
|
|
$
19,987
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Allowance for
finance receivable losses
|
|
$
2,480
|
|
$
2,449
|
|
$
2,392
|
|
$
2,298
|
|
$
2,315
|
|
|
$
2,480
|
|
$
2,315
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Allowance
ratio
|
|
11.62 %
|
|
11.62 %
|
|
11.66 %
|
|
11.60 %
|
|
11.58 %
|
|
|
11.62 %
|
|
11.58 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net finance
receivables
|
|
21,349
|
|
21,068
|
|
20,511
|
|
19,810
|
|
19,987
|
|
|
21,349
|
|
19,987
|
Finance receivables
serviced for our whole loan sale partners
|
|
882
|
|
864
|
|
849
|
|
839
|
|
766
|
|
|
882
|
|
766
|
Managed
receivables
|
|
$
22,231
|
|
$
21,932
|
|
$
21,360
|
|
$
20,649
|
|
$
20,753
|
|
|
$
22,231
|
|
$
20,753
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average net finance
receivables - personal loans
|
|
$ 20,980
|
|
$ 20,640
|
|
$ 19,999
|
|
$ 19,767
|
|
$ 19,803
|
|
|
$ 20,347
|
|
$ 19,377
|
Average net finance
receivables - credit cards
|
|
281
|
|
193
|
|
137
|
|
115
|
|
92
|
|
|
181
|
|
65
|
Average net
receivables
|
|
21,261
|
|
20,833
|
|
20,136
|
|
19,882
|
|
19,895
|
|
|
20,528
|
|
19,442
|
Average receivables
serviced for our whole loan sale partners
|
|
881
|
|
864
|
|
852
|
|
812
|
|
734
|
|
|
852
|
|
610
|
Average managed
receivables
|
|
$
22,142
|
|
$
21,697
|
|
$
20,988
|
|
$
20,694
|
|
$
20,629
|
|
|
$
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)
|
|
Dec 31,
2023
|
|
Sep 30,
2023
|
|
Jun 30,
2023
|
|
Mar 31,
2023
|
|
Dec 31,
2022
|
|
|
2023
|
|
2022
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted pretax
income (non-GAAP)
|
|
$
223
|
|
$
252
|
|
$
162
|
|
$
236
|
|
$
249
|
|
|
$
874
|
|
$
1,206
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Provision for finance
receivable losses
|
|
446
|
|
410
|
|
479
|
|
385
|
|
404
|
|
|
1,721
|
|
1,399
|
Net
charge-offs
|
|
(415)
|
|
(353)
|
|
(385)
|
|
(382)
|
|
(348)
|
|
|
(1,536)
|
|
(1,186)
|
Change in C&I
allowance for finance receivable losses (non-GAAP)
|
|
31
|
|
57
|
|
94
|
|
3
|
|
56
|
|
|
185
|
|
213
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Pretax capital
generation (non-GAAP)
|
|
254
|
|
309
|
|
256
|
|
239
|
|
305
|
|
|
1,059
|
|
1,419
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Capital generation,
net of tax(1) (non-GAAP)
|
|
$
191
|
|
$
232
|
|
$
192
|
|
$
179
|
|
$
229
|
|
|
$
794
|
|
$
1,064
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
C&I average net
receivables
|
|
$
21,261
|
|
$
20,833
|
|
$
20,136
|
|
$
19,882
|
|
$
19,895
|
|
|
$
20,528
|
|
$
19,442
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Capital generation
return on receivables (non-GAAP)
|
|
3.6 %
|
|
4.4 %
|
|
3.8 %
|
|
3.7 %
|
|
4.6 %
|
|
|
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 prior period financial information to reflect the effects of
the adoption.
|
(1)
|
Income taxes assume a
25% rate.
|
OneMain Holdings,
Inc.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CONSUMER &
INSURANCE PERSONAL LOANS METRICS (UNAUDITED)
|
|
|
|
|
|
|
|
|
|
|
Quarter
Ended
|
|
|
Fiscal
Year
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(unaudited, $ in
millions)
|
|
Dec 31,
2023
|
|
Sep 30,
2023
|
|
Jun 30,
2023
|
|
Mar 31,
2023
|
|
Dec 31,
2022
|
|
|
2023
|
|
2022
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross
charge-offs
|
|
$
468
|
|
$
410
|
|
$
446
|
|
$
445
|
|
$
402
|
|
|
$
1,768
|
|
$
1,431
|
Recoveries
|
|
(60)
|
|
(63)
|
|
(67)
|
|
(69)
|
|
(58)
|
|
|
(258)
|
|
(252)
|
Net
charge-offs
|
|
$
408
|
|
$
347
|
|
$
379
|
|
$
376
|
|
$
344
|
|
|
$
1,510
|
|
$
1,179
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross charge-off
ratio
|
|
8.82 %
|
|
7.89 %
|
|
8.94 %
|
|
9.14 %
|
|
8.05 %
|
|
|
8.69 %
|
|
7.39 %
|
Recovery
ratio
|
|
(1.13 %)
|
|
(1.21 %)
|
|
(1.34 %)
|
|
(1.42 %)
|
|
(1.17 %)
|
|
|
(1.27 %)
|
|
(1.30 %)
|
Net charge-off
ratio
|
|
7.70 %
|
|
6.68 %
|
|
7.60 %
|
|
7.72 %
|
|
6.88 %
|
|
|
7.42 %
|
|
6.09 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average net
receivables
|
|
$ 20,980
|
|
$ 20,640
|
|
$ 19,999
|
|
$ 19,767
|
|
$ 19,803
|
|
|
$ 20,346
|
|
$ 19,377
|
Yield
|
|
22.1 %
|
|
22.2 %
|
|
22.2 %
|
|
22.3 %
|
|
22.3 %
|
|
|
22.2 %
|
|
22.8 %
|
Origination
volume
|
|
$
3,014
|
|
$
3,278
|
|
$
3,742
|
|
$
2,817
|
|
$
3,473
|
|
|
$ 12,851
|
|
$ 13,879
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
30+
delinquency
|
|
$
1,294
|
|
$
1,156
|
|
$
1,036
|
|
$
1,042
|
|
$
1,154
|
|
|
$
1,294
|
|
$
1,154
|
90+
delinquency
|
|
$
605
|
|
$
535
|
|
$
474
|
|
$
534
|
|
$
544
|
|
|
$
605
|
|
$
544
|
30-89
delinquency
|
|
$
689
|
|
$
621
|
|
$
562
|
|
$
508
|
|
$
610
|
|
|
$
689
|
|
$
610
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
30+ delinquency
ratio
|
|
6.16 %
|
|
5.55 %
|
|
5.09 %
|
|
5.29 %
|
|
5.80 %
|
|
|
6.16 %
|
|
5.80 %
|
90+ delinquency
ratio
|
|
2.88 %
|
|
2.57 %
|
|
2.33 %
|
|
2.72 %
|
|
2.74 %
|
|
|
2.88 %
|
|
2.74 %
|
30-89 delinquency
ratio
|
|
3.28 %
|
|
2.98 %
|
|
2.76 %
|
|
2.58 %
|
|
3.07 %
|
|
|
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
- 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 receivables = unencumbered unpaid principal
balance of our personal loans and credit cards. For precompute
personal loans, unpaid principal balance is the gross contractual
payments less the unaccreted balance of unearned finance charges.
Credit cards exclude billed interest, fees, and closed accounts
with balances
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.