– 2Q 2022 Diluted EPS of $1.68
– 2Q 2022 C&I adjusted diluted EPS of $1.87
– 2Q 2022 C&I managed receivables of $20.1
billion
– Declared quarterly dividend of $0.95 per share
– Repurchased 2.1 million shares for $94 million in
2Q
OneMain Holdings, Inc. (NYSE: OMF), the leader in offering
nonprime customers responsible access to credit, today reported
pretax income of $280 million and net income of $209 million for
the second quarter of 2022, compared to $463 million and $350
million, respectively, in the prior year quarter. Earnings per
diluted share were $1.68 in the second quarter of 2022, compared to
$2.60 in the prior year quarter.
On July 27, 2022, OneMain declared a quarterly dividend of $0.95
per share, payable on August 12, 2022, to record holders of the
Company's common stock as of the close of business on August 8,
2022.
During the quarter, the Company repurchased approximately 2.1
million shares of common stock for $94 million.
“We had another strong quarter with continued robust demand for
our loan products and excellent momentum across our key strategic
initiatives, including our BrightWay credit card and new
distribution partnerships,” said Doug Shulman, Chairman and CEO of
OneMain. “We continue to closely monitor the macroeconomic
environment and the effects of inflation on our customer base and
are prepared to dynamically adjust our underwriting, as
needed.”
The following segment results are reported on a non-GAAP basis.
Refer to the required reconciliations of non-GAAP to comparable
GAAP measures at the end of this press release.
Consumer and Insurance Segment (“C&I”)
C&I generated adjusted pretax income of $311 million and
adjusted net income of $233 million for the second quarter of 2022,
compared to $477 million and $358 million, respectively, in the
prior year quarter. Adjusted earnings per diluted share were $1.87
for the second quarter of 2022, compared to $2.66 in the prior year
quarter. The decline was primarily driven by the impacts from a
normalizing credit environment, partially offset by higher net
interest income.
Management runs the business based on C&I capital
generation, which it defines as C&I adjusted net income
excluding the after-tax change in C&I allowance for finance
receivable losses while still considering the current period
C&I net charge-offs. C&I capital generation was $275
million for the second quarter of 2022, representing an 11%
decrease versus the prior year period.
Managed receivables, which includes our C&I personal loans,
loans serviced for our whole loan sale partners, and credit card
receivables, were $20.1 billion at June 30, 2022, up 10% from $18.3
billion at June 30, 2021.
Personal loan originations totaled $3.9 billion in the second
quarter of 2022, up 2% from $3.8 billion in the prior year quarter.
The percentage of secured originations was 49% in the second
quarter of 2022, consistent with 49% in the prior year quarter.
Personal loans were $19.4 billion at June 30, 2022, up 7% from
$18.2 billion at June 30, 2021. Secured personal loans were 52% at
June 30, 2022, consistent with 52% at June 30, 2021.
Average net finance receivables were $19.2 billion in the second
quarter of 2022, up 8% from $17.7 billion in the prior year
quarter.
Interest income in the second quarter of 2022 was $1.1 billion,
up 3% compared to the prior year quarter, reflecting higher average
net finance receivables, partially offset by a lower portfolio
yield.
Yield was 23.1% in the second quarter of 2022, down from 24.2%
in the prior year quarter. The decrease generally reflected the
impact of higher credit quality originations and the normalization
of 90+ day delinquent receivables in the portfolio.
The provision for finance receivable losses was $338 million in
the second quarter of 2022, up $208 million compared to the prior
year period. The prior year period results included a reduction in
our allowance for finance receivable losses associated with an
improving credit environment as well as historically low net
charge-offs, while the current quarter reflects a reserve increase
associated with growth in our portfolio and higher net change-off
rates.
C&I Select Delinquency and Loss
Ratios
June 30, 2022
March 31, 2022
June 30, 2021
Personal loans:
30-89 days delinquency ratio
2.73 %
2.25 %
1.76 %
30+ days delinquency ratio
4.88 %
4.46 %
3.12 %
90+ days delinquency ratio
2.15 %
2.21 %
1.36 %
Net charge-offs
5.96 %
5.58 %
4.41 %
Operating expense for the second quarter of 2022 was $350
million, up 6% from $332 million in the prior year quarter
reflecting receivables growth and continued investments in the
business.
Funding and Liquidity
As of June 30, 2022, the Company had principal debt balances
outstanding of $18.2 billion, 48% of which was secured. The Company
had $526 million of cash and cash equivalents, which included $151
million of cash and cash equivalents held at their regulated
insurance subsidiaries or for other operating activities that are
unavailable for general corporate purposes.
Cash and cash equivalents, together with the Company’s potential
borrowings of $1.25 billion of undrawn committed capacity from a
corporate revolver, $5.3 billion of undrawn committed capacity
under the revolving conduit facilities, and $9.6 billion of
unencumbered loans, provide a liquidity runway in excess of 24
months under numerous stress scenarios and assuming no access to
the capital markets. This liquidity runway calculation contemplates
all the cash needs of the Company.
Conference Call & Webcast Information
OneMain management will host a conference call and webcast to
discuss the Company's results, outlook, and related matters at 8:30
am Eastern Time on Thursday, July 28th, 2022. Both the call and
webcast are open to the general public. The general public is
invited to listen to the call by dialing 866-831-8616 (U.S.
domestic) or 203-518-9873 (international), and using conference ID
65228, or via a live audio webcast through the Investor Relations
section of the OneMain Financial website. For those unable to
listen to the live broadcast, a replay will be available on our
website, after the event. An investor presentation will be
available on the Investor Relations page of OneMain’s website at
http://investor.onemainfinancial.com prior to the start of the
conference call.
About OneMain Holdings, Inc.
OneMain Financial (NYSE: OMF) is the leader in offering nonprime
customers responsible access to credit and is dedicated to
improving the financial well-being of hardworking Americans. We
empower our customers to solve today’s problems and reach a better
financial future through personalized solutions available online
and in 1,400 locations across 44 states. OneMain is committed to
making a positive impact on the people and the communities we
serve. For additional information, please visit
www.OneMainFinancial.com.
Use of Non-GAAP Financial Measures
We report the operating results of Consumer and Insurance using
the Segment Accounting Basis, which (i) reflects our allocation
methodologies for interest expense and operating costs, to reflect
the manner in which we assess our business results and (ii)
excludes the impact of applying purchase accounting (eliminates
premiums/discounts on our finance receivables and long-term debt at
acquisition, as well as the amortization/accretion in future
periods). Consumer and Insurance adjusted pretax income (loss),
Consumer and Insurance adjusted net income (loss), and Consumer and
Insurance adjusted earnings (loss) per diluted share are key
performance measures used to evaluate the performance of our
business. Consumer and Insurance adjusted pretax income (loss)
represents income (loss) before income taxes on a Segment
Accounting Basis and excludes the expense associated with the
cash-settled stock-based awards, direct costs associated with
COVID-19, acquisition-related transaction and integration expenses,
net loss resulting from repurchases and repayments of debt, and
restructuring charges. We believe these non-GAAP financial measures
are useful in assessing the profitability of our segment.
We also use Consumer and Insurance pretax capital generation and
Consumer and Insurance capital generation, non-GAAP financial
measures, as a key performance measure of our segment. Consumer and
insurance pretax capital generation represents Consumer and
Insurance adjusted pretax income, as discussed above, and excludes
the change in our Consumer and Insurance allowance for finance
receivable losses in the period while still considering the
Consumer and Insurance net charge-offs during the period. Consumer
and Insurance capital generation represents the after-tax effect of
Consumer and Insurance pretax capital generation. We believe that
these non-GAAP measures are useful in assessing the capital created
in the period impacting the overall capital adequacy of the
Company. We believe that the Company’s reserves, combined with its
equity, represent the Company's loss absorption capacity.
We utilize these non-GAAP measures in evaluating our
performance. Additionally, these non-GAAP measures are consistent
with the performance goals established in OMH’s executive
compensation program. These non-GAAP financial measures should be
considered supplemental to, but not as a substitute for or superior
to, income (loss) before income taxes, net income, or other
measures of financial performance prepared in accordance with
GAAP.
This document contains summarized information concerning
OneMain Holdings, Inc. (the “Company”) and the Company’s business,
operations, financial performance and trends. No representation is
made that the information in this document is complete. For
additional financial, statistical and business related information
see the Company's most recent Annual Report on Form 10-K (“Form
10-K”) and Quarterly Reports on Form 10-Q (“Form 10-Qs”) filed with
the U.S. Securities and Exchange Commission (the “SEC”), as well as
the Company’s other reports filed with the SEC from time to time.
Such reports are or will be available in the Investor Relations
section of the Company's website (www.omf.com) and the SEC's
website (www.sec.gov).
Cautionary Note Regarding Forward-Looking Statements
This document contains “forward-looking statements” within the
meaning of the Private Securities Litigation Reform Act of 1995.
Statements preceded by, followed by or that otherwise include the
words “anticipates,” “appears,” “are likely,” “assumes,”
“believes,” “can,” “continues,” “could,” “estimates,” “expects,”
“forecasts,” “foresees,” “goal,” “intends,” “likely,” “objective,”
“plans,” “projects,” “target,” “trend,” “remains,” and similar
expressions or future or conditional verbs such as “could,” “may,”
“might,” “should,” “will” or “would” are intended to identify
forward-looking statements, but these words are not the exclusive
means of identifying forward-looking statements.
Forward-looking statements are not statements of historical fact
but instead represent only management’s current beliefs regarding
future events, objectives, goals, projections, strategies,
performance, and future plans, and underlying assumptions and other
statements related thereto. You should not place undue reliance on
these forward-looking statements. By their nature, forward-looking
statements are subject to risks, uncertainties, assumptions and
other important factors that may cause actual results, performance
or achievements to differ materially from those expressed in or
implied by such forward-looking statements. Important factors that
could cause actual results, performance, or achievements to differ
materially from those expressed in or implied by forward-looking
statements include, without limitation, the following: adverse
changes in general economic conditions, including the interest rate
environment and the financial markets; risks associated with the
COVID-19 pandemic and the measures taken in response thereto;
geopolitical risks, including recent geopolitical actions outside
the U.S.; the sufficiency of our allowance for finance receivable
losses; increased levels of unemployment and personal bankruptcies;
natural or accidental events such as earthquakes, hurricanes,
pandemics, floods or wildfires affecting our customers, collateral,
or our facilities; a failure in or breach of our information,
operational or security systems or infrastructure or those of third
parties, including as a result of cyber-attacks, war or other
disruptions; the adequacy of our credit risk scoring models;
adverse changes in our ability to attract and retain employees or
key executives; increased competition or adverse changes in
customer responsiveness to our distribution channels or products;
changes in federal, state, or local laws, regulations, or
regulatory policies and practices or increased regulatory scrutiny
of our industry; risks associated with our insurance operations;
the costs and effects of any actual or alleged violations of any
federal, state, or local laws, rules or regulations; the costs and
effects of any fines, penalties, judgments, decrees, orders,
inquiries, investigations, subpoenas, or enforcement or other
proceedings of any governmental or quasi-governmental agency or
authority; our substantial indebtedness and our continued ability
to access the capital markets and maintain adequate current sources
of funds to satisfy our cash flow requirements; our ability to
comply with all of our covenants; the effects of any downgrade of
our debt ratings by credit rating agencies; and other risks and
uncertainties described in the “Risk Factors” and “Management’s
Discussion and Analysis” sections of the Company’s most recent Form
10-K filed with the SEC and in the Company’s other filings with the
SEC from time to time.
The liquidity runway scenario disclosed in the press release is
based on management’s estimates and assumptions for internal
strategic planning purposes and does not constitute guidance or
financial projections and should not be regarded or relied on as
such.
If one or more of these or other risks or uncertainties
materialize, or if our underlying assumptions prove to be
incorrect, our actual results may vary materially from what we may
have expressed or implied by these forward-looking statements. You
should specifically consider the factors identified in this
document that could cause actual results to differ before making an
investment decision to purchase our securities. Furthermore, new
risks and uncertainties arise from time to time, and it is
impossible for us to predict those events or how they may affect
us.
Forward looking statements included in this document speak only
as of the date on which they were made. We undertake no obligation
to update or revise any forward-looking statements, whether written
or oral, to reflect events or circumstances after the date of this
document or to reflect the occurrence of unanticipated events or
the non-occurrence of anticipated events, whether as a result of
new information, future developments or otherwise, except as
required by law.
OneMain Holdings, Inc.
CONSOLIDATED STATEMENTS OF OPERATIONS
(UNAUDITED)
Quarter-to-Date
Fiscal Year
(unaudited, $ in millions, except per
share amounts)
Jun 30, 2022
Mar 31, 2022
Dec 31, 2021
Sep 30, 2021
Jun 30, 2021
2021
2020
Interest income
$
1,106
$
1,089
$
1,121
$
1,113
$
1,071
$
4,364
$
4,368
Interest expense
(219
)
(219
)
(235
)
(237
)
(231
)
(937
)
(1,027
)
Net interest income
887
870
886
876
840
3,427
3,341
Provision for finance receivable
losses
(339
)
(238
)
(237
)
(226
)
(132
)
(593
)
(1,319
)
Net interest income after provision for
finance receivable losses
548
632
649
650
708
2,834
2,022
Insurance
111
111
111
109
107
434
443
Investment
9
15
17
14
17
65
75
Gain on sales of finance receivables
16
17
17
15
11
47
—
Net loss on repurchases and repayments of
debt
(28
)
—
(29
)
(1
)
(1
)
(78
)
(39
)
Other
20
19
19
18
16
63
47
Total other revenues
128
162
135
155
150
531
526
Operating expenses
(356
)
(353
)
(379
)
(384
)
(347
)
(1,448
)
(1,329
)
Insurance policy benefits and claims
(40
)
(45
)
(50
)
(45
)
(48
)
(176
)
(242
)
Total other expenses
(396
)
(398
)
(429
)
(429
)
(395
)
(1,624
)
(1,571
)
Income before income taxes
280
396
355
376
463
1,741
977
Income taxes
(71
)
(95
)
(93
)
(88
)
(113
)
(427
)
(247
)
Net income
$
209
$
301
$
262
$
288
$
350
$
1,314
$
730
Weighted average number of diluted
shares
124.7
127.5
130.0
132.9
134.6
133.1
134.9
Diluted EPS
$
1.68
$
2.36
$
2.02
$
2.17
$
2.60
$
9.87
$
5.41
Book value per basic share
$
24.51
$
24.55
$
24.20
$
23.74
$
26.42
$
24.20
$
25.61
Return on assets
3.8
%
5.6
%
4.6
%
5.1
%
6.5
%
6.0
%
3.2
%
Average net receivables
$
19,160
$
19,083
$
19,040
$
18,545
$
17,717
$
18,281
$
17,997
Yield
23.1
%
23.1
%
23.3
%
23.8
%
24.2
%
23.8
%
24.2
%
Change in allowance for finance receivable
losses
$
(56
)
$
24
$
(34
)
$
(61
)
$
62
$
174
$
(322
)
Net charge-offs
(283
)
(262
)
(203
)
(165
)
(194
)
(767
)
(997
)
Provision for finance receivable
losses
$
(339
)
$
(238
)
$
(237
)
$
(226
)
$
(132
)
$
(593
)
$
(1,319
)
OneMain Holdings, Inc.
CONSOLIDATED BALANCE SHEETS
(UNAUDITED)
As of
(unaudited, $ in millions)
Jun 30, 2022
Mar 31, 2022
Dec 31, 2021
Sep 30, 2021
Jun 30, 2021
Assets
Cash and cash equivalents
$
526
$
640
$
541
$
821
$
1,787
Investment securities
1,773
1,778
1,992
1,963
1,969
Net finance receivables
19,448
18,979
19,212
18,843
18,163
Unearned insurance premium and claim
reserves
(754
)
(741
)
(761
)
(750
)
(728
)
Allowance for finance receivable
losses
(2,127
)
(2,071
)
(2,095
)
(2,061
)
(2,000
)
Net finance receivables, less unearned
insurance premium and claim reserves and allowance for finance
receivable losses
16,567
16,167
16,356
16,032
15,435
Restricted cash and restricted cash
equivalents
534
531
476
459
507
Goodwill
1,437
1,437
1,437
1,437
1,437
Other intangible assets
273
274
274
278
287
Other assets
1,085
981
1,003
973
955
Total assets
$
22,195
$
21,808
$
22,079
$
21,963
$
22,377
Liabilities and Shareholders’
Equity
Long-term debt
$
17,922
$
17,560
$
17,750
$
17,661
$
17,605
Insurance claims and policyholder
liabilities
612
621
621
616
617
Deferred and accrued taxes
1
45
1
9
10
Other liabilities
627
493
614
556
608
Total liabilities
19,162
18,719
18,986
18,842
18,840
Common stock
1
1
1
1
1
Additional paid-in capital
1,679
1,672
1,672
1,665
1,661
Accumulated other comprehensive income
(loss)
(70
)
(11
)
61
77
85
Retained earnings
1,994
1,905
1,727
1,554
1,825
Treasury stock
(571
)
(478
)
(368
)
(176
)
(35
)
Total shareholders’ equity
3,033
3,089
3,093
3,121
3,537
Total liabilities and shareholders’
equity
$
22,195
$
21,808
$
22,079
$
21,963
$
22,377
OneMain Holdings, Inc.
CONSOLIDATED KEY FINANCIAL METRICS,
CONTINUED (UNAUDITED)
As of
(unaudited, $ in millions)
Jun 30, 2022
Mar 31, 2022
Dec 31, 2021
Sep 30, 2021
Jun 30, 2021
Liquidity
Cash and cash equivalents
$
526
$
640
$
541
$
821
$
1,787
Cash and cash equivalents unavailable for
general corporate purposes
151
265
158
205
158
Unencumbered gross finance receivables
9,621
10,206
10,217
10,964
9,732
Undrawn conduit facilities
5,275
5,350
5,400
7,300
7,300
Undrawn corporate revolver
1,250
1,000
1,000
—
—
Drawn conduit facilities
500
650
600
—
—
Long-term debt
$
17,922
$
17,560
$
17,750
$
17,661
$
17,605
Less: Junior subordinated debt
(172
)
(172
)
(172
)
(172
)
(172
)
Adjusted debt
17,750
17,388
17,578
17,489
17,433
Less: Available cash and cash
equivalents
(375
)
(375
)
(383
)
(616
)
(1,629
)
Net adjusted debt
$
17,375
$
17,013
$
17,195
$
16,873
$
15,804
Total Shareholders' equity
$
3,033
$
3,089
$
3,093
$
3,121
$
3,537
Less: Goodwill
(1,437
)
(1,437
)
(1,437
)
(1,437
)
(1,437
)
Less: Other intangible assets
(273
)
(274
)
(274
)
(278
)
(287
)
Plus: Junior subordinated debt
172
172
172
172
172
Adjusted tangible common equity
1,495
1,550
1,554
1,578
1,985
Plus: Allowance for finance receivable
losses, net of tax (1)
1,595
1,553
1,571
1,546
1,500
Adjusted capital
$
3,090
$
3,103
$
3,125
$
3,124
$
3,485
Net leverage (net adjusted debt to
adjusted capital)
5.6x
5.5x
5.5x
5.4x
4.5x
(1)
Income taxes assume a 25% tax rate.
OneMain Holdings, Inc.
RECONCILIATION OF NON-GAAP FINANCIAL
MEASURES (UNAUDITED)
Quarter-to-Date
Fiscal Year
(unaudited, $ in millions)
Jun 30, 2022
Mar 31, 2022
Dec 31, 2021
Sep 30, 2021
Jun 30, 2021
2021
2020
Consumer & Insurance
$
281
$
396
$
359
$
388
$
474
$
1,788
$
1,021
Other
—
—
(1
)
(1
)
(2
)
(7
)
(9
)
Segment to GAAP adjustment
(1
)
—
(3
)
(11
)
(9
)
(40
)
(35
)
Income before income taxes - GAAP
basis
$
280
$
396
$
355
$
376
$
463
$
1,741
$
977
Pretax income - segment accounting
basis
$
281
$
396
$
359
$
388
$
474
$
1,788
$
1,021
Cash-settled stock-based awards
1
1
23
31
—
54
—
Direct costs associated with COVID-19
1
1
2
1
2
6
17
Acquisition-related transaction and
integration expenses
—
—
—
—
—
—
11
Net loss on repurchases and repayments of
debt (1)
28
—
29
1
1
70
36
Restructuring charges
—
—
—
—
—
—
7
Consumer & Insurance adjusted
pretax income (non-GAAP)
$
311
$
398
$
413
$
421
$
477
$
1,918
$
1,092
Reconciling items (2)
$
(31
)
$
(2
)
$
(57
)
$
(44
)
$
(12
)
$
(171
)
$
(109
)
(1)
Amounts differ from those presented on
"Consolidated Statements of Operations (Unaudited)" page as a
result of purchase accounting adjustments that are not applicable
on a segment accounting basis.
(2)
Reconciling Items consist of Segment to
GAAP adjustment and the adjustments to Pretax income – segment
accounting basis for C&I and Other. The adjustments to Other
adjusted pretax income (loss) are not disclosed in the table above
due to immateriality.
OneMain Holdings, Inc.
RECONCILIATION OF KEY SEGMENT METRICS
(UNAUDITED) (Non-GAAP)
As of
(unaudited, $ in millions)
Jun 30, 2022
Mar 31, 2022
Dec 31, 2021
Sep 30, 2021
Jun 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
$
18,163
Consumer & Insurance
$
2,132
$
2,077
$
2,102
$
2,070
$
2,011
Segment to GAAP adjustment
(5
)
(6
)
(7
)
(9
)
(11
)
Allowance for finance receivable losses
- GAAP basis
$
2,127
$
2,071
$
2,095
$
2,061
$
2,000
OneMain Holdings, Inc.
CONSUMER & INSURANCE SEGMENT
(UNAUDITED) (Non-GAAP)
Quarter-to-Date
Fiscal Year
(unaudited, in millions, except per share
amounts)
Jun 30, 2022
Mar 31, 2022
Dec 31, 2021
Sep 30, 2021
Jun 30, 2021
2021
2020
Interest income
$
1,104
$
1,087
$
1,119
$
1,111
$
1,069
$
4,355
$
4,353
Interest expense
(218
)
(217
)
(233
)
(235
)
(230
)
(930
)
(1,007
)
Net interest income
886
870
886
876
839
3,425
3,346
Provision for finance receivable
losses
(338
)
(237
)
(236
)
(224
)
(130
)
(587
)
(1,313
)
Net interest income after provision for
finance receivable losses
548
633
650
652
709
2,838
2,033
Insurance
111
111
111
109
107
434
443
Investment
9
15
17
14
17
65
75
Gain on sales of finance receivables
16
17
17
15
11
47
—
Other
17
15
16
14
13
51
33
Total other revenues
153
158
161
152
148
597
551
Operating expenses
(350
)
(348
)
(348
)
(338
)
(332
)
(1,341
)
(1,250
)
Insurance policy benefits and claims
(40
)
(45
)
(50
)
(45
)
(48
)
(176
)
(242
)
Total other expenses
(390
)
(393
)
(398
)
(383
)
(380
)
(1,517
)
(1,492
)
Adjusted pretax income
(non-GAAP)
311
398
413
421
477
1,918
1,092
Income taxes (1)
(78
)
(99
)
(103
)
(105
)
(119
)
(480
)
(273
)
Adjusted net income (non-GAAP)
$
233
$
299
$
310
$
316
$
358
$
1,438
$
819
Weighted average number of diluted
shares
124.7
127.5
130.0
132.9
134.6
133.1
134.9
C&I adjusted diluted EPS
$
1.87
$
2.35
$
2.38
$
2.37
$
2.66
$
10.81
$
6.07
(1)
Income taxes assume a 25% tax rate.
OneMain Holdings, Inc.
CONSUMER & INSURANCE SEGMENT
METRICS (UNAUDITED) (Non-GAAP)
As of or
Quarter-to-Date
Fiscal Year
(unaudited, $ in millions)
Jun 30, 2022
Mar 31, 2022
Dec 31, 2021
Sep 30, 2021
Jun 30, 2021
2021
2020
Interest income
23.1
%
23.1
%
23.3
%
23.8
%
24.2
%
23.8
%
24.2
%
Interest expense
(4.6
%)
(4.6
%)
(4.9
%)
(5.0
%)
(5.2
%)
(5.1
%)
(5.6
%)
Net interest income
18.6
%
18.5
%
18.5
%
18.7
%
19.0
%
18.7
%
18.6
%
Other net revenue (1)
2.4
%
2.4
%
2.3
%
2.3
%
2.3
%
2.3
%
1.7
%
Net charge-off
(5.9
%)
(5.6
%)
(4.2
%)
(3.5
%)
(4.4
%)
(4.2
%)
(5.5
%)
Change in allowance
(1.1
%)
0.5
%
(0.7
%)
(1.3
%)
1.5
%
1.0
%
(1.8
%)
Operating expenses
(7.3
%)
(7.4
%)
(7.3
%)
(7.2
%)
(7.5
%)
(7.3
%)
(6.9
%)
Income tax expense (2)
(1.6
%)
(2.1
%)
(2.2
%)
(2.3
%)
(2.7
%)
(2.6
%)
(1.5
%)
Return on receivables
4.9
%
6.4
%
6.5
%
6.8
%
8.1
%
7.9
%
4.5
%
Net finance receivables - personal
loans
$
19,385
$
18,931
$
19,190
$
18,847
$
18,168
$
19,190
$
18,091
Net finance receivables - credit cards
64
50
25
—
—
25
—
Net finance receivables
19,449
18,981
19,215
18,847
18,168
19,215
18,091
Finance receivables serviced for our whole
loan sale partners
616
528
414
283
149
414
—
Managed receivables
$
20,065
$
19,509
$
19,629
$
19,130
$
18,317
$
19,629
$
18,091
Average net finance receivables - personal
loans
$
19,105
$
19,046
$
19,037
$
18,549
$
17,722
$
18,284
$
18,009
Average net finance receivables - credit
cards
57
40
6
—
—
2
—
Average net receivables
19,162
19,086
19,043
18,549
17,722
18,286
18,009
Average receivables serviced for our whole
loan sale partners
572
474
351
211
114
174
—
Average managed receivables
$
19,734
$
19,560
$
19,394
$
18,760
$
17,836
$
18,460
$
18,009
Operating expenses
$
(350
)
$
(348
)
$
(348
)
$
(338
)
$
(332
)
$
(1,341
)
$
(1,250
)
Average managed receivables
$
19,734
$
19,560
$
19,394
$
18,760
$
17,836
$
18,460
$
18,009
Operating expense % of average managed
receivables
(7.1
%)
(7.2
%)
(7.1
%)
(7.2
%)
(7.5
%)
(7.3
%)
(6.9
%)
Note:
Consumer & Insurance financial
information is presented on an adjusted Segment Accounting Basis.
All ratios are shown as a percentage of C&I average net finance
receivables. Ratios may not sum due to rounding.
(1)
Other net revenue includes total other
revenues less insurance policy benefits and claims.
(2)
Income taxes assume a 25% tax rate.
OneMain Holdings, Inc.
CONSUMER & INSURANCE CAPITAL
METRICS (UNAUDITED) (Non-GAAP)
Quarter-to-Date
Fiscal Year
(unaudited, in millions)
Jun 30, 2022
Mar 31, 2022
Dec 31, 2021
Sep 30, 2021
Jun 30, 2021
2021
2020
Provision for finance receivable
losses
$
338
$
237
$
236
$
224
$
130
$
587
$
1,313
Less: Net charge-offs
(283
)
(262
)
(204
)
(165
)
(194
)
(768
)
(998
)
Change in C&I allowance for finance
receivable losses (non-GAAP)
55
(25
)
32
59
(64
)
(181
)
315
Adjusted pretax income (non-GAAP)
311
398
413
421
477
1,918
1,092
Pretax capital generation
(non-GAAP)
366
373
445
480
413
1,737
1,407
Capital generation, net of tax(1)
(non-GAAP)
$
275
$
280
$
334
$
360
$
310
$
1,303
$
1,056
C&I average net receivables
$
19,162
$
19,086
$
19,043
$
18,549
$
17,722
$
18,286
$
18,009
Capital generation return on
receivables
5.7
%
6.0
%
7.0
%
7.7
%
7.0
%
7.1
%
5.9
%
Beginning adjusted capital
$
3,103
$
3,125
$
3,124
$
3,485
$
3,308
$
3,587
$
3,367
Capital generation, net of tax(1)
(non-GAAP)
275
280
334
360
310
1,303
1,056
Less: Common stock repurchased
(94
)
(110
)
(192
)
(141
)
(35
)
(368
)
(45
)
Less: Cash dividends
(120
)
(123
)
(89
)
(559
)
(95
)
(1,278
)
(807
)
Capital returns
(214
)
(233
)
(281
)
(700
)
(130
)
(1,646
)
(852
)
Less: Adjustments to C&I, net of tax
(1), (2)
(23
)
2
(46
)
(25
)
(5
)
(116
)
(81
)
Less: Change in the assumed tax rate
(1)
—
—
—
—
—
—
(8
)
Less: Withholding tax on share-based
compensation
—
(12
)
—
—
—
(6
)
(6
)
Less: Adjusted other net loss, net of tax
(1) (non-GAAP)
—
—
(1
)
(1
)
(1
)
(4
)
(4
)
Plus: Other comprehensive income
(loss)
(59
)
(72
)
(16
)
(8
)
5
(33
)
50
Plus: Purchased credit deteriorated
finance receivables gross-up, net of tax (2), (3)
—
—
—
—
—
—
11
Plus: Other intangibles amortization
1
1
4
9
9
32
37
Plus: Trim acquisition
—
—
—
—
(15
)
(15
)
—
Plus: Share-based compensation expense,
net of forfeitures
7
12
7
4
4
23
17
Other
(74
)
(69
)
(52
)
(21
)
(3
)
(119
)
16
Ending adjusted capital
$
3,090
$
3,103
$
3,125
$
3,124
$
3,485
$
3,125
$
3,587
Note:
Year-to-Date may not sum due to
rounding.
(1)
Income taxes assume a 25% tax rate.
(2)
Includes the effects of purchase
accounting adjustments excluding loan loss reserves.
(3)
As a result of the adoption of ASU
2016-13, we converted all purchased credit impaired finance
receivables to purchased credit deteriorated finance receivables in
accordance with ASC Topic 326, which resulted in the gross-up of
net finance receivables and allowance for finance receivable losses
of $15 on January 1, 2020.
OneMain Holdings, Inc.
CONSUMER & INSURANCE KEY FINANCIAL
METRICS (UNAUDITED) (Non-GAAP)
As of or
Quarter-to-Date
Fiscal Year
(unaudited, $ in millions)
Jun 30, 2022
Mar 31, 2022
Dec 31, 2021
Sep 30, 2021
Jun 30, 2021
2021
2020
Consumer and Insurance
Non-TDR net finance receivables
$
18,759
$
18,307
$
18,544
$
18,166
$
17,460
$
18,544
$
17,363
TDR net finance receivables
690
674
671
681
708
671
728
Net finance receivables (1)
$
19,449
$
18,981
$
19,215
$
18,847
$
18,168
$
19,215
$
18,091
Non-TDR allowance
$
1,854
$
1,806
$
1,823
$
1,778
$
1,693
$
1,823
$
1,951
TDR allowance
278
271
279
292
318
279
332
Allowance (1)
$
2,132
$
2,077
$
2,102
$
2,070
$
2,011
$
2,102
$
2,283
Non-TDR allowance ratio
9.88
%
9.86
%
9.83
%
9.79
%
9.69
%
9.83
%
11.24
%
TDR allowance ratio
40.34
%
40.20
%
41.56
%
42.87
%
44.93
%
41.56
%
45.55
%
Allowance ratio
10.96
%
10.94
%
10.94
%
10.98
%
11.07
%
10.94
%
12.62
%
Note:
Consumer & Insurance financial
information is presented on an adjusted Segment Accounting
Basis.
(1)
For reconciliation to GAAP, see
"Reconciliation of Key Segment Metrics (Unaudited) (Non-GAAP)."
OneMain Holdings, Inc.
CONSUMER & INSURANCE PERSONAL LOANS
FINANCIAL METRICS (UNAUDITED) (Non-GAAP)
As of or
Quarter-to-Date
Fiscal Year
(unaudited, $ in millions)
Jun 30, 2022
Mar 31, 2022
Dec 31, 2021
Sep 30, 2021
Jun 30, 2021
2021
2020
Consumer and Insurance Personal
Loans
Gross charge-offs
$
351
$
329
$
260
$
223
$
252
$
990
$
1,163
Recoveries
(68
)
(67
)
(56
)
(58
)
(58
)
(222
)
(165
)
Net charge-offs
$
283
$
262
$
204
$
165
$
194
$
768
$
998
Gross charge-off ratio
7.37
%
7.00
%
5.43
%
4.77
%
5.70
%
5.42
%
6.46
%
Recovery ratio
(1.41
%)
(1.42
%)
(1.18
%)
(1.24
%)
(1.29
%)
(1.21
%)
(0.92
%)
Net charge-off ratio
5.96
%
5.58
%
4.24
%
3.52
%
4.41
%
4.20
%
5.54
%
Average net receivables
$
19,105
$
19,046
$
19,037
$
18,549
$
17,722
$
18,284
$
18,009
Yield
23.1
%
23.1
%
23.3
%
23.8
%
24.2
%
23.8
%
24.2
%
Origination volume
$
3,897
$
2,959
$
3,836
$
3,870
$
3,835
$
13,825
$
10,729
30-89 delinquency
$
529
$
427
$
467
$
415
$
320
$
467
$
413
30+ delinquency
$
945
$
845
$
850
$
710
$
567
$
850
$
729
90+ delinquency
$
416
$
418
$
383
$
295
$
247
$
383
$
316
30-89 delinquency ratio
2.73
%
2.25
%
2.43
%
2.20
%
1.76
%
2.43
%
2.28
%
30+ delinquency ratio
4.88
%
4.46
%
4.43
%
3.77
%
3.12
%
4.43
%
4.03
%
90+ delinquency ratio
2.15
%
2.21
%
2.00
%
1.57
%
1.36
%
2.00
%
1.75
%
Note:
Consumer & Insurance financial
information is presented on an adjusted Segment Accounting Basis.
Delinquency ratios are calculated as a percentage of C&I
personal loan net finance receivables.
Glossary
- Adjusted capital = adjusted tangible common equity +
allowance for finance receivable losses (ALLL), net of tax
- Adjusted debt = long-term debt – junior subordinated
debt
- Adjusted tangible common equity (TCE) = total
shareholders’ equity – goodwill – other intangible assets + junior
subordinated debt
- Available cash and cash equivalents = cash and cash
equivalents – cash and cash equivalents held at our regulated
insurance subsidiaries or is unavailable for general corporate
purposes
- Average assets = average of monthly average assets
(assets at the beginning and end of each month divided by two) in
the period
- Average managed receivables = average net receivables +
average receivables serviced for our whole loan sale partners
- C&I adjusted diluted EPS = C&I adjusted net
income (non-GAAP) / weighted average diluted shares
- Capital generation = C&I adjusted net income –
change in C&I allowance for finance receivable losses, net of
tax
- Capital generation return on receivables = annualized
capital generation / C&I average net receivables
- Credit card purchase volume = credit card purchase
transactions + cash advances – returns
- Finance receivables serviced for our whole loan sale
partners = unpaid principal balance plus accrued interest of
loans sold as part of our whole loan sale program
- Managed receivables = C&I net finance receivables +
finance receivables serviced for our whole loan sale partners
- Net adjusted debt = adjusted debt – available cash and
cash equivalents
- Net leverage = net adjusted debt / adjusted capital
- Opex ratio = annualized C&I operating expenses /
C&I average managed receivables
- Other net revenue = other revenues – insurance policy
benefits and claims expense
- Pretax capital generation = C&I pretax adjusted net
income – change in C&I allowance for finance receivable
losses
- Return on assets (ROA) = annualized net income / average
total assets
- Return on receivables (C&I ROR) = annualized C&I
adjusted net income / C&I average net receivables
- Unencumbered loans = unencumbered gross finance
receivables excluding credit cards
View source
version on businesswire.com: https://www.businesswire.com/news/home/20220727005774/en/
OneMain Holdings, Inc. Investor Contact: Peter R.
Poillon, 212-359-2432 Peter.Poillon@omf.com
Media Contact: Kelly Ogburn, 410-537-9028
Kelly.Ogburn@omf.com
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