Onemain Holdings, Inc. · NYSE:OMF
Onemain — Q4 2024 Earnings Presentation
19 slides from Onemain's earnings presentation, Jan 31, 2025
Slide 1: 4Q24 Financial Results
4Q24 Financial Results NYSE: OMF | January 31, 2025
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: 2024 Highlights
2024 Highlights Advancing our mission to improve the financial well-being of hardworking Americans ✓ Best Practice Institute Most Loved 11% 8.1% Managed C&I Net Charge-offs*1 Workplace® for 3rd year in a row Receivables Growth* 7.9% Consumer Loan Net Charge-offs* $13.3 billion $685 million ✓ Member
Slide 5: 4Q24 Financial Highlights
4Q24 Financial Highlights $3.5 billion $183 million 3.4 million Originations Capital Generation* Customer Accounts Up 16% YoY with conservative $1.16 C&I Adjusted EPS* Up 15% YoY credit posture $24.7 billion $1.5 billion 6.8% Managed Receivables* C&I Total Revenue* OpEx Ratio* Up $420 million QoQ Up
Slide 6: 4Q24 Financial Results
4Q24 Financial Results ($ in millions, except Average Assets and Average Net Receivables in billions, and per share statistics) Earnings Summary C&I* Adjusted Earnings Summary 4Q24 3Q24 4Q23 4Q24 3Q24 4Q23 Consumer & Insurance* $185 $202 $223 Interest Income $1,312 $1,271 $1,186 Other Net Revenue 12
Slide 7: Originations & Receivables (C&I)
Originations & Receivables (C&I)* ($ in billions, unless noted) Consumer Loan Originations Highlights $3.6 $3.7 $3.5 • $3.5 billion in 4Q24, up 16% YoY, with conservative credit posture $3.3 $3.0 $2.5 • Growth driven by new products and utilization of data science and product innovation • OneMain Au
Slide 8: 4Q24 New Products Highlights
4Q24 New Products Highlights ($ in millions) BrightWay® Credit Cards Everyday transactions Financing at the point of purchase • Digital-first offering that rewards good credit behavior • Deep experience in secured lending, best-in-class capabilities and strong credit performance • Targeted and disci
Slide 9: Consumer Loan Delinquency Trends (C&I)
Consumer Loan Delinquency Trends (C&I)*1 ($ in millions) Highlights 30+ Days Delinquent $1,294 $1,202 $1,239 • 30-89 delinquency of 3.06%, down 22bps YoY; up 5bps QoQ, trending $1,156 $1,153 $1,125 better than normal seasonal patterns • 30+ delinquency of 5.65%, down 51bps YoY; up 8bps QoQ, trending
Slide 10: Portfolio Performance is Supported by Credit Tightening (C&I)
Portfolio Performance is Supported by Credit Tightening (C&I)*1 Highlights • 30-89 delinquency of 3.06%, down 22bps YoY • Front book2 is growing and continues to perform in line with expectations • Back book now accounts for 16% of receivables but contributes 32% to delinquency Front Book2 % of Port
Slide 11: Credit Trends (C&I)
Credit Trends (C&I)* ($ in millions) Highlights Loss Reserve Trends $2,651 $2,710 $2,480 $2,454 $2,571 $2,449 • 4Q24 C&I net charge-offs1 of 7.9%, up 14bps YoY, improving from 3Q24 up 78bps YoY • 4Q24 consumer loan net charge-offs of 7.6%, down 7bps YoY; up 30bps 11.6% 11.6% 11.6% 11.5% 11.5% 11.5%
Slide 12: Operating Expenses (C&I)
Operating Expenses (C&I)* ($ in millions) Highlights • 4Q24 operating expense of $422 million; 4Q24 OpEx ratio of 6.8%, flat YoY, includes Foursight expenses and continued investment in the business • FY24 operating expenses increased 4% YoY as managed receivables grew 11% • FY24 OpEx ratio of 6.6%
Slide 13: Balance Sheet & Funding
Balance Sheet & Funding Unsecured Bank Facilities ($ in billions, unless noted) Secured Highlights $7.7 $8.0 $8.0 $7.81 $7.4 $7.4 • Well-positioned funding profile with balanced debt mix, staggered maturities $1.3 $1.3 $1.3 $1.3 $1.1 $1.1 and significant liquidity $6.2 $6.4 $6.7 $6.7 $6.7 • Next uns
Slide 14: Capital Allocation Framework
Capital Allocation Framework 1 2 Business Investment • Balance sheet growth: managed Regular Dividend 3 receivables grew 11% in 2024 • Board declared regular quarterly • Continue to invest in new products and channels, data science, dividend of $1.04 per share, Share Repurchases payable February 20
Slide 15: 2025 Strategic Priorities (C&I)
2025 Strategic Priorities (C&I)* Key Metrics 2024 2025E Commentary Managed Receivables • Assumes continued conservative underwriting posture; prepared to adjust should environment 11% 5.0% – 8.0% Growth change 5% organic Revenue Growth 7.6% 6.0% – 8.0% • Reflects receivables growth and modest improv
Slide 16: Appendix
Appendix
Slide 17: Reconciliation of Non-GAAP Measures
Reconciliation of Non-GAAP Measures (unaudited, $ in millions) 4Q24 3Q24 2Q24 1Q24 4Q23 FY24 FY23 Consumer & Insurance $159 $200 $145 $203 $220 $707 $845 Other (1) - - - (1) (1) (6) Segment to GAAP adjustment 6 7 (53) 1 1 (39) 1 Income before income taxes - GAAP basis $164 $207 $92 $204 $220 $667 $8
Slide 18: Reconciliation of Non-GAAP Measures (cont'd)
Reconciliation of Non-GAAP Measures (cont’d) (unaudited, $ in millions) 12/31/2024 9/30/2024 6/30/2024 3/31/2024 12/31/2023 Consumer & Insurance $23,598 $23,128 $22,428 $21,083 $21,349 Segment to GAAP adjustment (44) (53) (63) - - Net finance receivables - GAAP basis $23,554 $23,075 $22,365 $21,083
Slide 19: Defined Terms
Defined Terms • Auto finance = financing at the point of purchase through a network of auto dealerships • Average assets = average of monthly average assets (assets at the beginning and end of each month divided by two) in the period • C&I adjusted diluted EPS = C&I adjusted net income (non-GAAP) /