Onemain Holdings, Inc. · NYSE:OMF
Onemain — Q3 2024 Earnings Presentation
18 slides from Onemain's earnings presentation, Oct 30, 2024
Slide 1: 3Q24 Financial Results
3Q24 Financial Results NYSE: OMF | October 30, 2024
Slide 2: Important Information
Important Information The following slides are part of a presentation by OneMain Holdings, Inc. (the "Company") in connection with reporting quarterly financial results and are intended to be viewed as part of that presentation. No representation is made that the information in these slides is compl
Slide 3: Our Vision is to be the Lender of Choice for the Nonprime Consumer
Our Vision is to be the Lender of Choice for the Nonprime Consumer Meet their Progress to a needs today better future Unsecured loans OneMain Financial wellness Secured loans Customers Insurance Auto finance Bill negotiation Credit cards 3
Slide 4: 3Q24 Financial Highlights
3Q24 Financial Highlights $3.7 billion $211 million 3.3 million Originations Capital Generation* Customer Accounts Up 13% YoY despite conservative $151 million C&I Adj. Net Income* Up 17% YoY credit posture $24.3 billion $1.5 billion 6.5% Managed Receivables* C&I Total Revenue* OpEx Ratio* Includes
Slide 5: 3Q24 Financial Results
3Q24 Financial Results ($ in millions, except Average Assets and Average Net Receivables in billions, and per share statistics) Earnings Summary C&I* Adjusted Earnings Summary 3Q24 2Q24 3Q23 3Q24 2Q24 3Q23 Consumer & Insurance* $202 $163 $252 Interest Income $1,271 $1,210 $1,166 Other Net Revenue 13
Slide 6: Originations & Receivables (C&I)
Originations & Receivables (C&I)* ($ in billions, unless noted) Consumer Loan Originations Highlights $3.7 $3.6 $3.7 $3.3 • $3.7 billion in 3Q24, up 13% YoY despite conservative credit posture $3.0 $2.5 • Constructive competitive environment, utilization of data science and product innovation suppor
Slide 7: 3Q24 New Products Highlights
3Q24 New Products Highlights ($ in millions) BrightWay® Credit Cards Everyday transactions Financing at the point of purchase • Digital first offering that rewards good credit behavior • More than a decade of experience in secured lending with best-in-class capabilities and strong credit performance
Slide 8: Consumer Loan Delinquency Trends (C&I)
Consumer Loan Delinquency Trends (C&I)*1 ($ in millions) Highlights 30+ Days Delinquent $1,294 $1,156 $1,153 $1,202 • 30-89 delinquency of 3.01%, down 27bps YTD, up 4bps QoQ, trending $1,125 $1,036 better than normal seasonal patterns • 30-89 delinquency within 3bps of 3Q23; would be below prior yea
Slide 9: Portfolio Performance is Supported by Credit Tightening (C&I)
Portfolio Performance is Supported by Credit Tightening (C&I)*1 Highlights • 30-89 delinquency of 3.01%, down 27bps YTD, up 4bps QoQ, trending better than normal seasonal patterns • Front book2 is growing and continues to perform in line with expectations • Back book now accounts for 19% of receivab
Slide 10: Credit Trends (C&I)
Credit Trends (C&I)* ($ in millions) Highlights Loss Reserve Trends $2,571 $2,651 $2,392 $2,449 $2,480 $2,454 • 3Q24 consumer loan net charge-offs of 7.33%, down 96bps QoQ, in line with expectations; continue to see strong back-end collections and recoveries 11.7% 11.6% 11.6% 11.6% 11.5% 11.5% • 3Q2
Slide 11: Operating Expenses (C&I)
Operating Expenses (C&I)* ($ in millions) Highlights • 3Q24 operating expense of $396 million, up 6% YoY supporting 11% managed receivables growth • 3Q24 OpEx Ratio of 6.5%, down 28bps from 6.8% in 3Q23 • 3Q24 operating expenses reflect the acquisition of Foursight and continued investment in the bu
Slide 12: Balance Sheet & Funding
Balance Sheet & Funding Unsecured Bank Facilities ($ in billions, unless noted) Secured $7.7 $8.0 $8.0 $7.81 Highlights $7.4 $1.3 $1.3 $1.3 $1.1 $1.3 • Well-positioned funding profile with balanced debt mix, staggered maturities and significant liquidity $6.2 $6.4 $6.7 $6.7 $6.7 • Issued $750 millio
Slide 13: Capital Allocation Framework
Capital Allocation Framework 1 2 Business Investment • Balance sheet growth Regular Dividend 3 • Continue to invest in new products • Board declared regular quarterly and channels, data science, technology and digital capabilities dividend of $1.04 per share, Share Repurchases payable November 18 •
Slide 14: 2024 Strategic Priorities (C&I)
2024 Strategic Priorities (C&I)* Key Metrics February 7, 2024 October 30, 2024 Managed Receivables ~$24.0 billion ~$24.5 billion Revenue Growth 6.0 – 8.0% Higher end of range Interest Expense1 ~5.2% Unchanged C&I Net Charge-offs 7.7 – 8.3% Higher end of range Operating Expense Ratio ~6.7% Unchanged
Slide 15: Appendix
Appendix OneMain Financial.
Slide 16: Reconciliation of Non-GAAP Measures
Reconciliation of Non-GAAP Measures (unaudited, $ in millions) 3Q24 2Q24 1Q24 4Q23 3Q23 FY23 FY22 Consumer & Insurance $200 $145 $203 $220 $250 $845 $1,169 Other - - - (1) (4) (6) - Segment to GAAP adjustment 7 (53) 1 1 - 1 (14) Income before income taxes - GAAP basis $207 $92 $204 $220 $246 $840 $1
Slide 17: Reconciliation of Non-GAAP Measures (cont'd)
Reconciliation of Non-GAAP Measures (cont’d) (unaudited, $ in millions) 9/30/2024 6/30/2024 3/31/2024 12/31/2023 9/30/2023 Consumer & Insurance $23,128 $22,428 $21,083 $21,349 $21,068 Segment to GAAP adjustment (53) (63) - - (1) Net finance receivables - GAAP basis $23,075 $22,365 $21,083 $21,349 $2
Slide 18: Defined Terms
Defined Terms • Adjusted capital = adjusted tangible common equity + allowance for finance receivable losses (ALLL), net of tax • Auto Finance = financing at the point of purchase through a network of auto dealerships • Available cash and cash equivalents = cash and cash equivalents – cash and cash