Onemain Holdings, Inc. · NYSE:OMF
Onemain — Q1 2022 Earnings Presentation
18 slides from Onemain's earnings presentation, Apr 29, 2022
Slide 1: 1Q22 Financial Results
1Q22 Financial Results NYSE: OMF | April 28, 2022
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: 1Q22 Highlights
1Q22 Highlights • Managed Receivables* grew $1.9 billion, or 11%, vs. 1Q21 Driving Growth With • Brightway credit cards at 74,000 accounts, remains on target for 2H22 expansion Expanded Customer • Expanding new channels with partnerships at the point of purchase and half of all new loans closed digi
Slide 4: 1Q22 Financial Results
1Q22 Financial Results ($ in millions, except Average Assets and Average Net Receivables in billions, and per share statistics) Earnings Summary C&I Adjusted Earnings Summary* C&I* Adjusted Earnings Summary 1Q22 4Q21 1Q21 1Q22 4Q21 1Q21 Consumer & Insurance* $398 $413 $607 Interest Income $1,087 $1,
Slide 5: Future Vision Deepens & Broadens Customer Relationships
Future Vision Deepens & Broadens Customer Relationships OneMain Customers Unsecured Financial Loans Wellness Secured Insurance Progress to a Loans Meet the needs better future of today Products & Services that Credit Bill increase engagement, Lending products Card Negotiation build loyalty & provide
Slide 6: Brightway Credit Card Rollout On Track
Brightway Credit Card Rollout On Track Rewarding • As planned, we are moderating issuance while we monitor performance and refine milestones, customer experience great digital • 74,000 cards and $50 million in receivables experience at March 31 • Card spend utilized for everyday purchases • Digital
Slide 7: Originations & Receivables (C&I)
Originations & Receivables (C&I)* ($ in billions unless noted) Originations1 Highlights $3.8 $3.9 $3.8 • 1Q22 originations up 30% vs 1Q21 $3.2 $2.9 $3.0 $2.6 • Originations driven by strong demand as well as product and $2.3 channel initiatives $2.0 • Portfolio yield of 23.1% in 1Q22 reflecting seas
Slide 8: Delinquency & Net Charge-off Trends (C&I)
Delinquency & Net Charge-off Trends (C&I)*1 (Information excludes credit cards, $ in millions) 30-89 Days Delinquent 90+ Days Delinquent $467 $418 $395 500 6.00% $427 450 5.00% 450 $413 $413 $415 400 $383 400 $348 5.00% $335 $316 $320 4.00% $320 $295 350 $290 $266 350 $276 $247 4.00% 300 300 2.21% 3
Slide 9: Loan Loss Reserve Trends (C&I)
Loan Loss Reserve Trends (C&I)*1 ($ in millions) $2,342 $2,342 $2,283 20.0% $2,202 $2,075 $2,070 $2,102 $2,077 18.0% $1,968 $2,011 2000 16.0% 13.2% 13.1% 12.6% 14.0% 12.0% 11.8% 11.1% 11.0% 1500 10.7% 10.9% 10.9% 12.0% 10.0% 1000 8.0% 6.0% 500 4.0% 2.0% 0 0.0% 1/1/2020 1Q20 2Q20 3Q20 4Q20 1Q21 2Q21
Slide 10: Operating Expenses (C&I)
Operating Expenses (C&I)*1 ($ in millions) Highlights • 1Q22 operating expense of $348 million o Majority of $25 million year-over-year increase reflects continued investment in new products/channels, data science and digital o 2Q20 to 1Q21 expenses reflect aggressive cost reductions taken in associ
Slide 11: Funding and Liquidity
Funding and Liquidity Liquidity Undrawn Bank Capacity ($ in billions unless noted) Available Cash Highlights • Well-positioned for rising rate environment with balanced unsecured maturities and $7.3 secured debt mix below long-term target of ~50% $7.2 $7.3 $6.4 $6.4 • 24+ months of liquidity1 under
Slide 12: Adjusted Capital Roll-Forward & Net Leverage
Adjusted Capital Roll-Forward & Net Leverage* ($ in millions) 1Q22 Adjusted Capital Roll-Forward Net Leverage (Net Adjusted Debt to Adjusted Capital) $280 ($69) ($233) $3,125 $3,103 5.4x 5.5x 5.5x 4.7x 4.5x 4Q21 Ending Capital Other Capital 1Q22 Ending 1Q21 2Q21 3Q21 4Q21 1Q22 Adjusted Generation Re
Slide 13: Capital Allocation Framework
Capital Allocation Framework 1 2 Invest in the business and portfolio growth while Provide a predictable regular 3 maintaining leverage of 4-6x dividend that can continue • Portfolio generates 30%+ return on adjusted capital* through a stress environment Make share repurchases a • Continuing to inve
Slide 14: 2022 Strategic Priorities (C&I)
2022 Strategic Priorities (C&I)* ($ in millions) FY22E Managed Receivables Growth 5 – 10% Net Charge-offs 5.6 - 6.0% OpEx Ratio <7.3% Capital Generation Return on Receivables ~6% Capital Generation $1,150 – $1,200 *See appendix for Non-GAAP Financial Measures reconciliations along with a glossary of
Slide 15: Appendix
Appendix
Slide 16: Reconciliation of Non-GAAP Measures
Reconciliation of Non-GAAP Measures (unaudited, $ in millions) 1Q22 4Q21 3Q21 2Q21 1Q21 Consumer & Insurance $396 $359 $388 $474 $567 Other 0 (1) (1) (2) (3) Segment to GAAP Adjustment 0 (3) (11) (9) (18) Income Before Income Taxes - GAAP basis $396 $355 $376 $463 $546 Pretax Income - Segment Accoun
Slide 17: Reconciliation of Non-GAAP Measures (cont'd)
Reconciliation of Non-GAAP Measures (cont’d) (unaudited, $ in millions) 3/31/2022 12/31/2021 9/30/2021 6/30/2021 3/31/2021 Consumer & Insurance $18,981 $19,215 $18,847 $18,168 $17,569 Segment to GAAP Adjustment (2) (3) (4) (5) (5) Net Finance Receivables - GAAP basis $18,979 $19,212 $18,843 $18,163
Slide 18: Glossary
Glossary Select Calculations: • Adjusted Capital = Adjusted Tangible Common Equity + Allowance for Finance Receivable Losses (ALLL), net of tax • Available Cash and Cash Equivalents = Cash and Cash Equivalents – Cash and Cash Equivalents held at our regulated insurance subsidiaries or is unavailable