– 3Q 2022 Diluted EPS of $1.52
– 3Q 2022 C&I adjusted diluted EPS of $1.51
– 3Q 2022 C&I managed receivables of $20.5
billion
– Declared quarterly dividend of $0.95 per share
– Repurchased 1.2 million shares for $42 million in
3Q
OneMain Holdings, Inc. (NYSE: OMF), the leader in offering
nonprime customers responsible access to credit, today reported
pretax income of $250 million and net income of $188 million for
the third quarter of 2022, compared to $376 million and $288
million, respectively, in the prior year quarter. Earnings per
diluted share were $1.52 in the third quarter of 2022, compared to
$2.17 in the prior year quarter.
On October 26, 2022, OneMain declared a quarterly dividend of
$0.95 per share, payable on November 14, 2022, to record holders of
the Company's common stock as of the close of business on November
7, 2022.
During the quarter, the Company repurchased approximately 1.2
million shares of common stock for $42 million.
“OneMain has built a resilient business, anchored in world-class
underwriting, a fortress balance sheet and a deep commitment to our
customers,” said Doug Shulman, Chairman and CEO of OneMain. “While
we remain cautious, we also feel confident in our ability to
navigate this environment and position our business for long-term,
superior performance.”
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 $250 million and
adjusted net income of $187 million for the third quarter of 2022,
compared to $421 million and $316 million, respectively, in the
prior year quarter. Adjusted earnings per diluted share were $1.51
for the third quarter of 2022, compared to $2.37 in the prior year
quarter. The decline was primarily driven by higher net charge-offs
and increases in the allowance for finance receivable losses.
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 $283
million for the third quarter of 2022.
Managed receivables, which includes loans serviced for our whole
loan sale partners and our credit card receivables, were $20.5
billion at September 30, 2022, up 7% from $19.1 billion at
September 30, 2021.
Personal loan originations totaled $3.6 billion in the third
quarter of 2022, down 8% from $3.9 billion in the prior year
quarter. The percentage of secured originations was 49% in the
third quarter of 2022, consistent with 49% in the prior year
quarter.
Interest income in the third quarter of 2022 was $1.1 billion,
consistent with the prior year quarter, reflecting higher average
net finance receivables, partially offset by a lower portfolio
yield. Yield was 22.6% in the third quarter of 2022, down from
23.8% in the prior year quarter, reflecting impacts from the
current macroeconomic environment including higher 90+ days
delinquent receivables.
The provision for finance receivable losses was $420 million in
the third quarter of 2022, up $196 million compared to the prior
year period. The increase reflects higher net charge-offs, and an
increase in the allowance for finance receivables losses due to
growth in the receivables portfolio and the weakened macroeconomic
environment.
September 30,
June 30,
September 30,
C&I Select Delinquency and Loss
Ratios
2022
2022
2021
Personal loans:
30-89 days delinquency ratio
2.81
%
2.73
%
2.20
%
30+ days delinquency ratio
5.22
%
4.88
%
3.77
%
90+ days delinquency ratio
2.41
%
2.15
%
1.57
%
Net charge-offs
5.89
%
5.96
%
3.52
%
Operating expense for the third quarter of 2022 was $359
million, up 6% from $338 million in the prior year quarter
reflecting receivables growth and our continued investment in the
business.
Funding and Liquidity
As of September 30, 2022, the Company had principal debt
balances outstanding of $18.5 billion, 50% of which was secured.
The Company had $536 million of cash and cash equivalents, which
included $142 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, $5.7 billion of undrawn committed capacity
under the revolving conduit facilities, and $9.5 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, October 27, 2022. Both the call and
webcast are open to the general public. The general public is
invited to listen to the call by dialing 800-420-1271 (U.S.
domestic) or 785-424-1603 (international), and using conference ID
56180, 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, net gain or loss resulting from
repurchases and repayments of debt, and other items and strategic
activities, which consist of direct costs associated with COVID-19,
acquisition-related transaction and integration expenses, 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 and volatility 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 current inflationary environment and
related trends affecting our customers; 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
Sep 30,
Jun 30,
Mar 31,
Dec 31,
Sep 30,
(unaudited, $ in millions, except per
share amounts)
2022
2022
2022
2021
2021
2021
2020
Interest income
$
1,118
$
1,106
$
1,089
$
1,121
$
1,113
$
4,364
$
4,368
Interest expense
(223
)
(219
)
(219
)
(235
)
(237
)
(937
)
(1,027
)
Net interest income
895
887
870
886
876
3,427
3,341
Provision for finance receivable
losses
(421
)
(339
)
(238
)
(237
)
(226
)
(593
)
(1,319
)
Net interest income after provision for
finance receivable losses
474
548
632
649
650
2,834
2,022
Insurance
111
111
111
111
109
434
443
Investment
16
9
15
17
14
65
75
Gain on sales of finance receivables
17
16
17
17
15
47
—
Net gain (loss) on repurchases and
repayments of debt
2
(28
)
—
(29
)
(1
)
(78
)
(39
)
Other
24
20
19
19
18
63
47
Total other revenues
170
128
162
135
155
531
526
Operating expenses
(363
)
(356
)
(353
)
(379
)
(384
)
(1,448
)
(1,329
)
Insurance policy benefits and claims
(31
)
(40
)
(45
)
(50
)
(45
)
(176
)
(242
)
Total other expenses
(394
)
(396
)
(398
)
(429
)
(429
)
(1,624
)
(1,571
)
Income before income taxes
250
280
396
355
376
1,741
977
Income taxes
(62
)
(71
)
(95
)
(93
)
(88
)
(427
)
(247
)
Net income
$
188
$
209
$
301
$
262
$
288
$
1,314
$
730
Weighted average number of diluted
shares
123.6
124.7
127.5
130.0
132.9
133.1
134.9
Diluted EPS
$
1.52
$
1.68
$
2.36
$
2.02
$
2.17
$
9.87
$
5.41
Book value per basic share
$
24.56
$
24.51
$
24.55
$
24.20
$
23.74
$
24.20
$
25.61
Return on assets
3.3
%
3.8
%
5.6
%
4.6
%
5.1
%
6.0
%
3.2
%
Average net receivables
$
19,623
$
19,160
$
19,083
$
19,040
$
18,545
$
18,281
$
17,997
Yield
22.6
%
23.1
%
23.1
%
23.3
%
23.8
%
23.8
%
24.2
%
Change in allowance for finance receivable
losses
$
(128
)
$
(56
)
$
24
$
(34
)
$
(61
)
$
174
$
(322
)
Net charge-offs
(293
)
(283
)
(262
)
(203
)
(165
)
(767
)
(997
)
Provision for finance receivable
losses
$
(421
)
$
(339
)
$
(238
)
$
(237
)
$
(226
)
$
(593
)
$
(1,319
)
OneMain Holdings, Inc.
CONSOLIDATED BALANCE SHEETS
(UNAUDITED)
As of
(unaudited, $ in millions)
Sep 30, 2022
Jun 30, 2022
Mar 31, 2022
Dec 31, 2021
Sep 30, 2021
Assets
Cash and cash equivalents
$
536
$
526
$
640
$
541
$
821
Investment securities
1,747
1,773
1,778
1,992
1,963
Net finance receivables
19,752
19,448
18,979
19,212
18,843
Unearned insurance premium and claim
reserves
(747
)
(754
)
(741
)
(761
)
(750
)
Allowance for finance receivable
losses
(2,255
)
(2,127
)
(2,071
)
(2,095
)
(2,061
)
Net finance receivables, less unearned
insurance premium and claim reserves and allowance for finance
receivable losses
16,750
16,567
16,167
16,356
16,032
Restricted cash and restricted cash
equivalents
483
534
531
476
459
Goodwill
1,437
1,437
1,437
1,437
1,437
Other intangible assets
272
273
274
274
278
Other assets
1,116
1,085
981
1,003
973
Total assets
$
22,341
$
22,195
$
21,808
$
22,079
$
21,963
Liabilities and Shareholders’
Equity
Long-term debt
$
18,202
$
17,922
$
17,560
$
17,750
$
17,661
Insurance claims and policyholder
liabilities
600
612
621
621
616
Deferred and accrued taxes
5
1
45
1
9
Other liabilities
522
627
493
614
556
Total liabilities
19,329
19,162
18,719
18,986
18,842
Common stock
1
1
1
1
1
Additional paid-in capital
1,685
1,679
1,672
1,672
1,665
Accumulated other comprehensive income
(loss)
(125
)
(70
)
(11
)
61
77
Retained earnings
2,063
1,994
1,905
1,727
1,554
Treasury stock
(612
)
(571
)
(478
)
(368
)
(176
)
Total shareholders’ equity
3,012
3,033
3,089
3,093
3,121
Total liabilities and shareholders’
equity
$
22,341
$
22,195
$
21,808
$
22,079
$
21,963
OneMain Holdings, Inc.
CONSOLIDATED KEY FINANCIAL METRICS,
CONTINUED (UNAUDITED)
As of
(unaudited, $ in millions)
Sep 30, 2022
Jun 30, 2022
Mar 31, 2022
Dec 31, 2021
Sep 30, 2021
Liquidity
Cash and cash equivalents
$
536
$
526
$
640
$
541
$
821
Cash and cash equivalents unavailable for
general corporate purposes
142
151
265
158
205
Unencumbered gross finance receivables
9,465
9,621
10,206
10,217
10,964
Undrawn conduit facilities
5,675
5,275
5,350
5,400
7,300
Undrawn corporate revolver
1,250
1,250
1,000
1,000
—
Drawn conduit facilities
500
500
650
600
—
Long-term debt
$
18,202
$
17,922
$
17,560
$
17,750
$
17,661
Junior subordinated debt
(172
)
(172
)
(172
)
(172
)
(172
)
Adjusted debt
18,030
17,750
17,388
17,578
17,489
Available cash and cash equivalents
(394
)
(375
)
(375
)
(383
)
(616
)
Net adjusted debt
17,636
17,375
17,013
17,195
16,873
Total Shareholders' equity
$
3,012
$
3,033
$
3,089
$
3,093
$
3,121
Goodwill
(1,437
)
(1,437
)
(1,437
)
(1,437
)
(1,437
)
Other intangible assets
(272
)
(273
)
(274
)
(274
)
(278
)
Junior subordinated debt
172
172
172
172
172
Adjusted tangible common equity
1,475
1,495
1,550
1,554
1,578
Allowance for finance receivable losses,
net of tax (1)
1,691
1,595
1,553
1,571
1,546
Adjusted capital
$
3,166
$
3,090
$
3,103
$
3,125
$
3,124
Net leverage (net adjusted debt to
adjusted capital)
5.6x
5.6x
5.5x
5.5x
5.4x
(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)
Sep 30, 2022
Jun 30, 2022
Mar 31, 2022
Dec 31, 2021
Sep 30, 2021
2021
2020
Consumer & Insurance
$
251
$
281
$
396
$
359
$
388
$
1,788
$
1,021
Other
1
—
—
(1
)
(1
)
(7
)
(9
)
Segment to GAAP adjustment
(2
)
(1
)
—
(3
)
(11
)
(40
)
(35
)
Income before income taxes - GAAP
basis
$
250
$
280
$
396
$
355
$
376
$
1,741
$
977
Pretax income - segment accounting
basis
$
251
$
281
$
396
$
359
$
388
$
1,788
$
1,021
Cash-settled stock-based awards
(2
)
1
1
23
31
54
—
Net (gain) loss on repurchases and
repayments of debt (1)
(3
)
28
—
29
1
70
36
Other (2)
4
1
1
2
1
6
35
Consumer & Insurance adjusted
pretax income (non-GAAP)
$
250
$
311
$
398
$
413
$
421
$
1,918
$
1,092
Reconciling items (3)
$
(1
)
$
(31
)
$
(2
)
$
(57
)
$
(44
)
$
(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)
Includes strategic activities and other
items. For fiscal years 2021 and 2020, refer to the earnings
release and financial supplements included as an exhibit to the
Company’s Current Report on Form 8-K filed February 2, 2022, and
available in the Investor Relations section of the Company’s
website (www.omf.com) and the SEC’s website (www.SEC.gov).
(3)
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)
Sep 30, 2022
Jun 30, 2022
Mar 31, 2022
Dec 31, 2021
Sep 30, 2021
Consumer & Insurance
$
19,754
$
19,449
$
18,981
$
19,215
$
18,847
Segment to GAAP adjustment
(2
)
(1
)
(2
)
(3
)
(4
)
Net finance receivables - GAAP
basis
$
19,752
$
19,448
$
18,979
$
19,212
$
18,843
Consumer & Insurance
$
2,259
$
2,132
$
2,077
$
2,102
$
2,070
Segment to GAAP adjustment
(4
)
(5
)
(6
)
(7
)
(9
)
Allowance for finance receivable losses
- GAAP basis
$
2,255
$
2,127
$
2,071
$
2,095
$
2,061
OneMain Holdings, Inc.
CONSUMER & INSURANCE SEGMENT
(UNAUDITED) (Non-GAAP)
Quarter-to-Date
Fiscal Year
Sep 30,
Jun 30,
Mar 31,
Dec 31,
Sep 30,
(unaudited, in millions, except per share
amounts)
2022
2022
2022
2021
2021
2021
2020
Interest income
$
1,116
$
1,104
$
1,087
$
1,119
$
1,111
$
4,355
$
4,353
Interest expense
(221
)
(218
)
(217
)
(233
)
(235
)
(930
)
(1,007
)
Net interest income
895
886
870
886
876
3,425
3,346
Provision for finance receivable
losses
(420
)
(338
)
(237
)
(236
)
(224
)
(587
)
(1,313
)
Net interest income after provision for
finance receivable losses
475
548
633
650
652
2,838
2,033
Insurance
111
111
111
111
109
434
443
Investment
16
9
15
17
14
65
75
Gain on sales of finance receivables
17
16
17
17
15
47
—
Other
21
17
15
16
14
51
33
Total other revenues
165
153
158
161
152
597
551
Operating expenses
(359
)
(350
)
(348
)
(348
)
(338
)
(1,341
)
(1,250
)
Insurance policy benefits and claims
(31
)
(40
)
(45
)
(50
)
(45
)
(176
)
(242
)
Total other expenses
(390
)
(390
)
(393
)
(398
)
(383
)
(1,517
)
(1,492
)
Adjusted pretax income
(non-GAAP)
250
311
398
413
421
1,918
1,092
Income taxes (1)
(63
)
(78
)
(99
)
(103
)
(105
)
(480
)
(273
)
Adjusted net income (non-GAAP)
$
187
$
233
$
299
$
310
$
316
$
1,438
$
819
Weighted average number of diluted
shares
123.6
124.7
127.5
130.0
132.9
133.1
134.9
C&I adjusted diluted EPS
$
1.51
$
1.87
$
2.35
$
2.38
$
2.37
$
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)
Sep 30, 2022
Jun 30, 2022
Mar 31, 2022
Dec 31, 2021
Sep 30, 2021
2021
2020
Interest income
22.6
%
23.1
%
23.1
%
23.3
%
23.8
%
23.8
%
24.2
%
Interest expense
(4.5
%)
(4.6
%)
(4.6
%)
(4.9
%)
(5.0
%)
(5.1
%)
(5.6
%)
Net interest income
18.1
%
18.6
%
18.5
%
18.5
%
18.7
%
18.7
%
18.6
%
Other net revenue (1)
2.7
%
2.4
%
2.4
%
2.3
%
2.3
%
2.3
%
1.7
%
Net charge-off
(5.9
%)
(5.9
%)
(5.6
%)
(4.2
%)
(3.5
%)
(4.2
%)
(5.5
%)
Change in allowance
(2.6
%)
(1.1
%)
0.5
%
(0.7
%)
(1.3
%)
1.0
%
(1.8
%)
Operating expenses
(7.3
%)
(7.3
%)
(7.4
%)
(7.3
%)
(7.2
%)
(7.3
%)
(6.9
%)
Income tax expense (2)
(1.3
%)
(1.6
%)
(2.1
%)
(2.2
%)
(2.3
%)
(2.6
%)
(1.5
%)
Return on receivables
3.8
%
4.9
%
6.4
%
6.5
%
6.8
%
7.9
%
4.5
%
Net finance receivables - personal
loans
$
19,675
$
19,385
$
18,931
$
19,190
$
18,847
$
19,190
$
18,091
Net finance receivables - credit cards
79
64
50
25
—
25
—
Net finance receivables
19,754
19,449
18,981
19,215
18,847
19,215
18,091
Finance receivables serviced for our whole
loan sale partners
698
616
528
414
283
414
—
Managed receivables
$
20,452
$
20,065
$
19,509
$
19,629
$
19,130
$
19,629
$
18,091
Average net finance receivables - personal
loans
$
19,553
$
19,105
$
19,046
$
19,037
$
18,549
$
18,284
$
18,009
Average net finance receivables - credit
cards
71
57
40
6
—
2
—
Average net receivables
19,624
19,162
19,086
19,043
18,549
18,286
18,009
Average receivables serviced for our whole
loan sale partners
659
572
474
351
211
174
—
Average managed receivables
$
20,283
$
19,734
$
19,560
$
19,394
$
18,760
$
18,460
$
18,009
Operating expenses
$
(359
)
$
(350
)
$
(348
)
$
(348
)
$
(338
)
$
(1,341
)
$
(1,250
)
Average managed receivables
$
20,283
$
19,734
$
19,560
$
19,394
$
18,760
$
18,460
$
18,009
Operating expense % of average managed
receivables
(7.0
%)
(7.1
%)
(7.2
%)
(7.1
%)
(7.2
%)
(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 KEY METRICS
(UNAUDITED) (Non-GAAP)
Quarter-to-Date
Fiscal Year
Sep 30,
Jun 30,
Mar 31,
Dec 31,
Sep 30,
(unaudited, in millions)
2022
2022
2022
2021
2021
2021
2020
Adjusted pretax income (non-GAAP)
250
311
398
413
421
1,918
1,092
Provision for finance receivable
losses
$
420
$
338
$
237
$
236
$
224
$
587
$
1,313
Net charge-offs
(293
)
(283
)
(262
)
(204
)
(165
)
(768
)
(998
)
Change in C&I allowance for finance
receivable losses (non-GAAP)
127
55
(25
)
32
59
(181
)
315
Pretax capital generation
(non-GAAP)
377
366
373
445
480
1,737
1,407
Capital generation, net of tax(1)
(non-GAAP)
$
283
$
275
$
280
$
334
$
360
$
1,303
$
1,056
C&I average net receivables
$
19,624
$
19,162
$
19,086
$
19,043
$
18,549
$
18,286
$
18,009
Capital generation return on receivables
5.7
%
5.7
%
6.0
%
7.0
%
7.7
%
7.1
%
5.9
%
Consumer and Insurance
Non-TDR net finance receivables
$
18,939
$
18,759
$
18,307
$
18,544
$
18,166
$
18,544
$
17,363
TDR net finance receivables
815
690
674
671
681
671
728
Net finance receivables (2)
$
19,754
$
19,449
$
18,981
$
19,215
$
18,847
$
19,215
$
18,091
Non-TDR allowance
$
1,947
$
1,854
$
1,806
$
1,823
$
1,778
$
1,823
$
1,951
TDR allowance
312
278
271
279
292
279
332
Allowance (2)
$
2,259
$
2,132
$
2,077
$
2,102
$
2,070
$
2,102
$
2,283
Non-TDR allowance ratio
10.28
%
9.88
%
9.86
%
9.83
%
9.79
%
9.83
%
11.24
%
TDR allowance ratio
38.22
%
40.34
%
40.20
%
41.56
%
42.87
%
41.56
%
45.55
%
Allowance ratio
11.44
%
10.96
%
10.94
%
10.94
%
10.98
%
10.94
%
12.62
%
Note: Consumer & Insurance financial
information is presented on an adjusted Segment Accounting
Basis.
(1) Income taxes assume a 25% tax
rate.
(2) 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
Sep 30,
Jun 30,
Mar 31,
Dec 31,
Sep 30,
(unaudited, $ in millions)
2022
2022
2022
2021
2021
2021
2020
Consumer and Insurance Personal
Loans
Gross charge-offs
$
349
$
351
$
329
$
260
$
223
$
990
$
1,163
Recoveries (59)
(59
)
(68
)
(67
)
(56
)
(58
)
(222
)
(165
)
Net charge-offs
$
290
$
283
$
262
$
204
$
165
$
768
$
998
Gross charge-off ratio
7.09
%
7.37
%
7.00
%
5.43
%
4.77
%
5.42
%
6.46
%
Recovery ratio
(1.20
%)
(1.41
%)
(1.42
%)
(1.18
%)
(1.24
%)
(1.21
%)
(0.92
%)
Net charge-off ratio
5.89
%
5.96
%
5.58
%
4.24
%
3.52
%
4.20
%
5.54
%
Average net receivables
$
19,553
$
19,105
$
19,046
$
19,037
$
18,549
$
18,284
$
18,009
Yield
22.6
%
23.1
%
23.1
%
23.3
%
23.8
%
23.8
%
24.2
%
Origination volume
$
3,551
$
3,897
$
2,959
$
3,836
$
3,870
$
13,825
$
10,729
30-89 delinquency
$
553
$
529
$
427
$
467
$
415
$
467
$
413
30+ delinquency
$
1,027
$
945
$
845
$
850
$
710
$
850
$
729
90+ delinquency
$
474
$
416
$
418
$
383
$
295
$
383
$
316
30-89 delinquency ratio
2.81
%
2.73
%
2.25
%
2.43
%
2.20
%
2.43
%
2.28
%
30+ delinquency ratio
5.22
%
4.88
%
4.46
%
4.43
%
3.77
%
4.43
%
4.03
%
90+ delinquency ratio
2.41
%
2.15
%
2.21
%
2.00
%
1.57
%
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/20221026005750/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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