Onemain Holdings, Inc. · NYSE:OMF
Onemain — Q1 2024 Earnings Presentation
19 slides from Onemain's earnings presentation, Apr 30, 2024
Slide 1: 1Q24 Financial Results
1Q24 Financial Results NYSE: OMF | April 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 Secured card 3
Slide 4: 1Q24 Financial Highlights
1Q24 Financial Highlights $2.5 billion $155 million $8.0 billion Originations Capital Generation* Undrawn Bank Facilities With conservative credit posture C&I Adj. Net Income* $175 million Up $300 million QoQ $22.0 billion $1.4 billion 5.3x Managed Receivables* C&I Total Revenue* Net leverage* Up 6%
Slide 5: 1Q24 Financial Results
1Q24 Financial Results ($ in millions, except Average Assets and Average Net Receivables in billions, and per share statistics) Earnings Summary C&I* Adjusted Earnings Summary 1Q24 4Q23 1Q23 1Q24 4Q23 1Q23 Consumer & Insurance* $233 $223 $236 Interest Income $1,172 $1,186 $1,092 Other Net Revenue 13
Slide 6: Originations & Receivables (C&I)
Originations & Receivables (C&I)* ($ in billions, unless noted) Consumer Loan Originations Highlights $3.7 $3.5 • $2.5 of originations in 1Q24 reflects normal seasonal trends $3.3 $3.0 $2.8 $2.5 • YoY decrease driven by credit tightening and pricing actions • Includes auto finance originations of $1
Slide 7: Targeted & Disciplined BrightWay Credit Card Rollout
Targeted & Disciplined BrightWay® Credit Card Rollout ~509 thousand $386 million ~90% customers 4.5+ stars Credit Cards Receivables Use mobile app App store ratings up ~78 thousand QoQ up $56 million QoQ Top spending categories Rewarding Retail milestones, great digital Restaurants experience Gas st
Slide 8: Expanded Capabilities in Auto Finance
Expanded Capabilities in Auto Finance Independent dealer strategy Franchise dealer strategy1 Current auto finance business $843 million ~$900 million receivables receivables Leverages our best-in-class capabilities Adds developed auto finance business Deep experience in underwriting auto secured loa
Slide 9: Consumer Loan Delinquency & Net Charge-off Trends (C&I)
Consumer Loan Delinquency & Net Charge-off Trends (C&I)* ($ in millions) Highlights • 30-89 delinquency of 2.72%, down 56bps vs 4Q23; better than normal seasonal trends • Front book1 continues to perform in line with expectations • Continue to see strong back-end collections and recoveries 30-89 Day
Slide 10: Portfolio Performance is Supported by Credit Tightening (C&I)
Portfolio Performance is Supported by Credit Tightening (C&I)* Highlights • Front book1 is growing and continues to perform in line with expectations • Back book now accounts for ~30% of receivables but contributes ~50% to delinquency • 1Q24 QoQ decline is better than normal seasonal trends Front Bo
Slide 11: Loss Reserve Trends (C&I)
Loss Reserve Trends (C&I)* ($ in millions) Highlights • Coverage ratio remains flat QoQ; $26 decrease reflects seasonal decrease in receivables $2,449 $2,480 $2,454 $2,392 $2,315 $2,298 11.6% 11.6% 11.7% 11.6% 11.6% 11.6% 4Q22 1Q23 2Q23 3Q23 4Q23 1Q24 % reflects loss reserves as a % of ending net re
Slide 12: Operating Expenses (C&I)
Operating Expenses (C&I)* ($ in millions) Highlights • 1Q24 operating expense of $362 reflects investment in new products and capabilities and focused companywide expense management • $27 restructuring charge in 1Q24 associated with expense initiatives; creates capacity for future investment in the
Slide 13: Balance Sheet & Funding
Balance Sheet & Funding Unsecured Bank Facilities ($ in billions, unless noted) Secured $7.7 $8.0 $7.4 $7.4 $7.4 Highlights $1.3 $1.3 $1.3 $1.3 $1.3 • Bank facilities of $8.0, up $300 million QoQ, up $600 million YoY $6.4 $6.7 • Well-positioned funding profile with balanced debt mix and staggered $6
Slide 14: Capital Allocation Framework
Capital Allocation Framework 1 2 Business Investment • Balance sheet growth Regular Dividend 3 • Continue to invest in new products • Board approved 4% increase in and channels, data science, technology and digital capabilities quarterly dividend to $1.04 per Share Repurchases share, payable May 17
Slide 15: 2024 Strategic Priorities (C&I)
2024 Strategic Priorities (C&I)* Key Metrics 2023 2024E1 Assumptions and Commentary Managed • Conservative underwriting posture; prepared to adjust should environment change Receivables $22.2B ~$24.0B • Reflects organic growth of 3 – 5% plus ~$1B of acquired receivables from Foursight • Interest inc
Slide 16: Appendix
Appendix
Slide 17: Reconciliation of Non-GAAP Measures
Reconciliation of Non-GAAP Measures (unaudited, $ in millions) 1Q24 4Q23 3Q23 2Q23 1Q23 FY23 FY22 Consumer & Insurance $203 $220 $250 $138 $236 $845 $1,169 Other - (1) (4) - (1) (6) - Segment to GAAP adjustment 1 1 - - - 1 (14) Income before income taxes - GAAP basis $204 $220 $246 $138 $235 $840 $1
Slide 18: Reconciliation of Non-GAAP Measures (cont'd)
Reconciliation of Non-GAAP Measures (cont’d) (unaudited, $ in millions) 3/31/2024 12/31/2023 9/30/2023 6/30/2023 3/31/2023 Consumer & Insurance $21,083 $21,349 $21,068 $20,511 $19,810 Segment to GAAP adjustment - - (1) (1) (1) Net finance receivables - GAAP basis $21,083 $21,349 $21,067 $20,510 $19,
Slide 19: 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