Onemain Holdings, Inc. · NYSE:OMF
Onemain — Q2 2022 Earnings Presentation
18 slides from Onemain's earnings presentation, Jul 28, 2022
Slide 1: 2Q22 Financial Results
2Q22 Financial Results NYSE: OMF | July 27, 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: 2Q22 Highlights
2Q22 Highlights Driving Growth With • Managed Receivables* of $20.1 billion, up $1.7 billion or 10% vs 2Q21 Expanded Customer • Anticipate a targeted and disciplined BrightWay credit card expansion in 2H22 Value Proposition • Continue to invest in new products and channels, data science and digital
Slide 4: 2Q22 Financial Results
2Q22 Financial Results ($ 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 2Q22 1Q22 2Q21 2Q22 1Q22 2Q21 Consumer & Insurance* $311 $398 $477 Interest Income $1,104 $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: Targeted and Disciplined BrightWay Credit Card Rollout
Targeted and Disciplined BrightWay Credit Card Rollout • 79,000 cards and $64 million in receivables at June 30 • Card spend utilized for everyday purchases • Digital engagement remains strong: ~90% of payments made in app, >80% of customers enrolled in e-statements • App store rating 4.5+ stars • A
Slide 7: Originations & Receivables (C&I)
Originations & Receivables (C&I)* ($ in billions unless noted) Originations1 Highlights $3.8 $3.9 $3.8 $3.9 • Monitoring performance and dynamically adjusting our underwriting $3.2 $2.9 $3.0 given the evolving macroeconomic environment $2.3 $2.0 • Originations driven by strong consumer demand as wel
Slide 8: Delinquency & Net Charge-off Trends (C&I)
Delinquency & Net Charge-off Trends (C&I)* (Information excludes credit cards, $ in millions) Highlights • Increase in 30-89 delinquency driven by lower credit quality/lower FICO customers largely concentrated in 2021 vintages • Appropriate underwriting adjustments have been made in these segments •
Slide 9: Loan Loss Reserve Trends (C&I)
Loan Loss Reserve Trends (C&I)* ($ in millions) $2,342 $2,342 $2,283 $2,202 $2,102 $2,132 $2,075 $2,070 $2,077 $1,968 $2,011 13.2% 13.1% 12.6% 12.0% 11.8% 10.7% 11.1% 11.0% 10.9% 10.9% 11.0% 1/1/2020 1Q20 2Q20 3Q20 4Q20 1Q21 2Q21 3Q21 4Q21 1Q22 2Q22 % reflects loan loss reserves as a % of ending net
Slide 10: Operating Expenses (C&I)
Operating Expenses (C&I)* ($ in millions) Highlights • 2Q22 operating expense of $350 million o Majority of year-over-year increase reflects continued investment in new products and distribution channels, data science and digital capabilities o 2020 and 2021 expenses reflect aggressive cost reductio
Slide 11: Funding and Liquidity
Funding and Liquidity Liquidity Undrawn Bank Capacity ($ in billions unless noted) Available Cash Highlights • Well-positioned funding profile with balanced debt mix and staggered maturities $7.3 • Issued $600 million 3-year revolving Social ABS at 4.3% in April and $600 million 2-year $7.3 $6.4 $6.
Slide 12: Adjusted Capital Roll-Forward & Net Leverage
Adjusted Capital Roll-Forward & Net Leverage* ($ in millions) 2Q22 Adjusted Capital Roll-Forward Net Leverage (Net Adjusted Debt to Adjusted Capital) $275 ($74) 5.6x 5.4x 5.5x 5.5x ($214) $3,103 $3,090 4.5x 1Q22 Ending Capital Other Capital 2Q22 Ending 2Q21 3Q21 4Q21 1Q22 2Q22 Adjusted Generation Re
Slide 13: Capital Allocation Framework
Capital Allocation Framework 1 2 Invest in the business and portfolio growth while Provide a predictable regular 3 maintaining leverage of 4-6x dividend that can continue • Portfolio generates 30%+ return on adjusted capital* through a stress environment Make share repurchases a • Continuing to inve
Slide 14: 2022 Strategic Priorities (C&I)
2022 Strategic Priorities (C&I)*1 ($ in millions) Feb 2, 2022 Current Macroeconomic Drivers Reflects adjustments to underwriting to adapt to Lower end of macroeconomic effects on lower credit quality/lower FICO Managed Receivables Growth 5 – 10% range customers, partially offset by strong demand wit
Slide 15: Appendix
Appendix
Slide 16: Reconciliation of Non-GAAP Measures
Reconciliation of Non-GAAP Measures (unaudited, $ in millions) 2Q22 1Q22 4Q21 3Q21 2Q21 Consumer & Insurance $281 $396 $359 $388 $474 Other 0 0 (1) (1) (2) Segment to GAAP adjustment (1) 0 (3) (11) (9) Income before income taxes - GAAP basis $280 $396 $355 $376 $463 Pretax income - segment accountin
Slide 17: Reconciliation of Non-GAAP Measures (cont’d)
Reconciliation of Non-GAAP Measures (cont’d) (unaudited, $ in millions) 6/30/2022 3/31/2022 12/31/2021 9/30/2021 6/30/2021 Consumer & Insurance $19,449 $18,981 $19,215 $18,847 $18,168 Segment to GAAP adjustment (1) (2) (3) (4) (5) Net finance receivables - GAAP basis $19,448 $18,979 $19,212 $18,843
Slide 18: Glossary
Glossary • 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 for general corporat