31/07/2024 | Press release | Distributed by Public on 31/07/2024 10:47
C&I Select Delinquency and Loss Ratios | June 30, 2024 | March 31, 2024 | June 30, 2023 | |||
Consumer loans: | ||||||
30+ days delinquency ratio | 5.45 | % | 5.57 | % | 5.09 | % |
90+ days delinquency ratio | 2.33 | % | 2.86 | % | 2.33 | % |
30-89 days delinquency ratio | 3.13 | % | 2.72 | % | 2.76 | % |
Net charge-offs
|
8.29 | % | 8.58 | % | 7.60 | % |
OneMain Holdings, Inc. | ||||||||||||||
CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED) | ||||||||||||||
Quarter Ended | Fiscal Year | |||||||||||||
(unaudited, $ in millions, except per share amounts) |
Jun 30, 2024 |
Mar 31, 2024 |
Dec 31, 2023 |
Sep 30, 2023 |
Jun 30, 2023 |
2023 | 2022 | |||||||
Interest income | $ | 1,219 | $ | 1,173 | $ | 1,187 | $ | 1,167 | $ | 1,117 | $ | 4,564 | $ | 4,435 |
Interest expense | (297) | (277) | (270) | (267) | (244) | (1,019) | (892) | |||||||
Net interest income | 922 | 896 | 917 | 900 | 873 | 3,545 | 3,543 | |||||||
Provision for finance receivable losses | (575) | (431) | (446) | (410) | (479) | (1,721) | (1,402) | |||||||
Net interest income after provision for finance receivable losses | 347 | 465 | 471 | 490 | 394 | 1,824 | 2,141 | |||||||
Insurance | 111 | 112 | 113 | 113 | 112 | 448 | 445 | |||||||
Investment | 30 | 32 | 32 | 32 | 27 | 116 | 61 | |||||||
Gain on sales of finance receivables | 6 | 6 | 10 | 11 | 13 | 52 | 63 | |||||||
Net loss on repurchases and repayments of debt
|
(12) | (2) | (1) | - | - | - | (27) | |||||||
Other
|
39 | 32 | 32 | 29 | 33 | 119 | 87 | |||||||
Total other revenues | 174 | 180 | 186 | 185 | 185 | 735 | 629 | |||||||
Operating expenses | (382) | (391) | (388) | (381) | (397) | (1,530) | (1,457) | |||||||
Insurance policy benefits and claims | (47) | (50) | (49) | (48) | (44) | (189) | (158) | |||||||
Total other expenses | (429) | (441) | (437) | (429) | (441) | (1,719) | (1,615) | |||||||
Income before income taxes | 92 | 204 | 220 | 246 | 138 | 840 | 1,155 | |||||||
Income taxes
|
(21) | (49) | (55) | (52) | (35) | (199) | (283) | |||||||
Net income | $ | 71 | $ | 155 | $ | 165 | $ | 194 | $ | 103 | $ | 641 | $ | 872 |
Weighted average number of diluted shares | 120.2 | 120.2 | 120.1 | 120.8 | 120.6 | 120.6 | 124.4 | |||||||
Diluted EPS | $ | 0.59 | $ | 1.29 | $ | 1.38 | $ | 1.61 | $ | 0.85 | $ | 5.32 | $ | 7.01 |
Book value per basic share | $ | 26.33 | $ | 26.81 | $ | 26.60 | $ | 25.86 | $ | 25.39 | $ | 26.60 | $ | 24.91 |
Return on assets | 1.1% | 2.6% | 2.7% | 3.2% | 1.8% | 2.7% | 3.9% | |||||||
Change in allowance for finance receivable losses | $ | (79) | $ | 26 | $ | (31) | $ | (57) | $ | (94) | $ | (185) | $ | (216) |
Net charge-offs | (496) | (457) | (415) | (353) | (385) | (1,536) | (1,186) | |||||||
Provision for finance receivable losses | $ | (575) | $ | (431) | $ | (446) | $ | (410) | $ | (479) | $ | (1,721) | $ | (1,402) |
Note:
|
Quarters may not sum to fiscal year due to rounding.
|
On January 1, 2023, the Company adopted ASU 2018-12, Financial Services - Insurance: Targeted Improvements to the Accounting for Long-Duration Contracts. In accordance with this standard, the Company has recast its fiscal year 2022 financial information to reflect the effects of the adoption. |
OneMain Holdings, Inc. | ||||||||||
CONSOLIDATED BALANCE SHEETS (UNAUDITED) | ||||||||||
As of | ||||||||||
(unaudited, $ in millions) |
Jun 30, 2024 |
Mar 31, 2024 |
Dec 31, 2023 |
Sep 30, 2023 |
Jun 30, 2023 |
|||||
Assets | ||||||||||
Cash and cash equivalents | $ | 667 | $ | 831 | $ | 1,014 | $ | 1,190 | $ | 1,021 |
Investment securities | 1,681 | 1,691 | 1,719 | 1,635 | 1,710 | |||||
Net finance receivables | 22,365 | 21,083 | 21,349 | 21,067 | 20,510 | |||||
Unearned insurance premium and claim reserves | (753) | (749) | (771) | (772) | (761) | |||||
Allowance for finance receivable losses | (2,564) | (2,454) | (2,480) | (2,449) | (2,392) | |||||
Net finance receivables, less unearned insurance premium and claim reserves and allowance for finance receivable losses | 19,048 | 17,880 | 18,098 | 17,846 | 17,357 | |||||
Restricted cash and restricted cash equivalents | 630 | 599 | 534 | 580 | 532 | |||||
Goodwill | 1,474 | 1,437 | 1,437 | 1,437 | 1,437 | |||||
Other intangible assets | 289 | 259 | 260 | 260 | 260 | |||||
Other assets
|
1,296 | 1,211 | 1,232 | 1,198 | 1,194 | |||||
Total assets | $ | 25,085 | $ | 23,908 | $ | 24,294 | $ | 24,146 | $ | 23,511 |
Liabilities and Shareholders' Equity | ||||||||||
Long-term debt | $ | 20,671 | $ | 19,520 | $ | 19,813 | $ | 19,851 | $ | 19,195 |
Insurance claims and policyholder liabilities | 594 | 597 | 615 | 599 | 616 | |||||
Deferred and accrued taxes | 10 | 34 | 9 | 6 | 5 | |||||
Other liabilities | 657 | 543 | 671 | 581 | 637 | |||||
Total liabilities | 21,932 | 20,694 | 21,108 | 21,037 | 20,453 | |||||
Common stock | 1 | 1 | 1 | 1 | 1 | |||||
Additional paid-in capital | 1,723 | 1,718 | 1,715 | 1,706 | 1,702 | |||||
Accumulated other comprehensive loss
|
(95) | (91) | (87) | (129) | (114) | |||||
Retained earnings | 2,263 | 2,318 | 2,285 | 2,240 | 2,168 | |||||
Treasury stock | (739) | (732) | (728) | (709) | (699) | |||||
Total shareholders' equity | 3,153 | 3,214 | 3,186 | 3,109 | 3,058 | |||||
Total liabilities and shareholders' equity | $ | 25,085 | $ | 23,908 | $ | 24,294 | $ | 24,146 | $ | 23,511 |
OneMain Holdings, Inc. | ||||||||||
CONSOLIDATED KEY FINANCIAL METRICS (UNAUDITED) | ||||||||||
As of | ||||||||||
(unaudited, $ in millions) |
Jun 30, 2024 |
Mar 31, 2024 |
Dec 31, 2023 |
Sep 30, 2023 |
Jun 30, 2023 |
|||||
Liquidity | ||||||||||
Cash and cash equivalents | $ | 667 | $ | 831 | $ | 1,014 | $ | 1,190 | $ | 1,021 |
Cash and cash equivalents unavailable for general corporate purposes | 211 | 165 | 148 | 169 | 196 | |||||
Unencumbered receivables
|
7,927 | 8,306 | 8,427 | 7,715 | 8,577 | |||||
Undrawn conduit facilities | 6,399 | 6,399 | 6,399 | 6,175 | 6,175 | |||||
Undrawn corporate revolver | 1,325 | 1,325 | 1,325 | 1,250 | 1,250 | |||||
Undrawn credit card revolving variable funding note facilities
|
300 | 300 | - | - | - | |||||
Drawn conduit facilities | 1 | 1 | 1 | - | - | |||||
Net adjusted debt | $ | 20,043 | $ | 18,682 | $ | 18,775 | $ | 18,658 | $ | 18,198 |
Total Shareholders' equity | $ | 3,153 | $ | 3,214 | $ | 3,186 | $ | 3,109 | $ | 3,058 |
Goodwill | (1,474) | (1,437) | (1,437) | (1,437) | (1,437) | |||||
Other intangible assets | (289) | (259) | (260) | (260) | (260) | |||||
Junior subordinated debt | 172 | 172 | 172 | 172 | 172 | |||||
Adjusted tangible common equity | 1,562 | 1,690 | 1,661 | 1,584 | 1,533 | |||||
Allowance for finance receivable losses, net of tax (1)
|
1,923 | 1,840 | 1,860 | 1,837 | 1,794 | |||||
Adjusted capital | $ | 3,485 | $ | 3,530 | $ | 3,521 | $ | 3,421 | $ | 3,327 |
Net leverage (net adjusted debt to adjusted capital) | 5.8x | 5.3x | 5.3x | 5.5x | 5.5x |
(1) | Income taxes assume a 25% tax rate. |
OneMain Holdings, Inc. | ||||||||||||||
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES (UNAUDITED) | ||||||||||||||
Quarter Ended | Fiscal Year | |||||||||||||
(unaudited, $ in millions) |
Jun 30, 2024 |
Mar 31, 2024 |
Dec 31, 2023 |
Sep 30, 2023 |
Jun 30, 2023 |
2023 | 2022 | |||||||
Consumer & Insurance | $ | 145 | $ | 203 | $ | 220 | $ | 250 | $ | 138 | $ | 845 | $ | 1,169 |
Other | - | - | (1) | (4) | - | (6) | - | |||||||
Segment to GAAP adjustment | (53) | 1 | 1 | - | - | 1 | (14) | |||||||
Income before income taxes - GAAP basis | $ | 92 | $ | 204 | $ | 220 | $ | 246 | $ | 138 | $ | 840 | $ | 1,155 |
Consumer & Insurance pretax income | $ | 145 | $ | 203 | $ | 220 | $ | 250 | $ | 138 | $ | 845 | $ | 1,169 |
Restructuring charges | - | 27 | - | - | - | - | 7 | |||||||
Net loss on repurchases and repayments of debt
|
12 | 2 | - | - | - | - | 26 | |||||||
Acquisition-related transaction and integration expenses
|
2 | 1 | - | - | - | - | - | |||||||
Regulatory settlements | - | - | 2 | - | 24 | 26 | - | |||||||
Other (1)
|
4 | - | 1 | 2 | - | 3 | 4 | |||||||
Consumer & Insurance adjusted pretax income (non-GAAP) | $ | 163 | $ | 233 | $ | 223 | $ | 252 | $ | 162 | $ | 874 | $ | 1,206 |
Reconciling items (2)
|
$ | (71) | $ | (29) | $ | (2) | $ | (2) | $ | (24) | $ | (28) | $ | (51) |
Consumer & Insurance | $ | 22,428 | $ | 21,083 | $ | 21,349 | $ | 21,068 | $ | 20,511 | $ | 21,349 | $ | 19,987 |
Segment to GAAP adjustment | (63) | - | - | (1) | (1) | - | (1) | |||||||
Net finance receivables - GAAP basis | $ | 22,365 | $ | 21,083 | $ | 21,349 | $ | 21,067 | $ | 20,510 | $ | 21,349 | $ | 19,986 |
Consumer & Insurance | $ | 2,571 | $ | 2,454 | $ | 2,480 | $ | 2,449 | $ | 2,392 | $ | 2,480 | $ | 2,315 |
Segment to GAAP adjustment | (7) | - | - | - | - | - | (4) | |||||||
Allowance for finance receivable losses - GAAP basis | $ | 2,564 | $ | 2,454 | $ | 2,480 | $ | 2,449 | $ | 2,392 | $ | 2,480 | $ | 2,311 |
Note: |
Quarters may not sum to fiscal year due to rounding.
|
On January 1, 2023, the Company adopted ASU 2018-12, Financial Services - Insurance: Targeted Improvements to the Accounting for Long-Duration Contracts. In accordance with this standard, the Company has recast its fiscal year 2022 financial information to reflect the effects of the adoption. | |
(1)
|
Includes strategic activities and other items.
|
(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. | ||||||||||||||
CONSUMER & INSURANCE SEGMENT (UNAUDITED) (Non-GAAP) | ||||||||||||||
Quarter Ended | Fiscal Year | |||||||||||||
(unaudited, in millions, except per share amounts) |
Jun 30, 2024 |
Mar 31, 2024 |
Dec 31, 2023 |
Sep 30, 2023 |
Jun 30, 2023 |
2023 | 2022 | |||||||
Interest income | $ | 1,210 | $ | 1,172 | $ | 1,186 | $ | 1,166 | $ | 1,115 | $ | 4,559 | $ | 4,429 |
Interest expense | (295) | (276) | (271) | (265) | (242) | (1,015) | (886) | |||||||
Net interest income | 915 | 896 | 915 | 901 | 873 | 3,544 | 3,543 | |||||||
Provision for finance receivable losses | (515) | (431) | (446) | (410) | (479) | (1,721) | (1,399) | |||||||
Net interest income after provision for finance receivable losses | 400 | 465 | 469 | 491 | 394 | 1,823 | 2,144 | |||||||
Insurance | 111 | 112 | 113 | 113 | 112 | 448 | 445 | |||||||
Investment | 30 | 32 | 32 | 32 | 27 | 116 | 61 | |||||||
Gain on sales of finance receivables | 6 | 6 | 10 | 11 | 13 | 52 | 63 | |||||||
Other
|
37 | 30 | 30 | 26 | 30 | 111 | 75 | |||||||
Total other revenues | 184 | 180 | 185 | 182 | 182 | 727 | 644 | |||||||
Operating expenses | (374) | (362) | (382) | (373) | (370) | (1,487) | (1,424) | |||||||
Insurance policy benefits and claims | (47) | (50) | (49) | (48) | (44) | (189) | (158) | |||||||
Total other expenses | (421) | (412) | (431) | (421) | (414) | (1,676) | (1,582) | |||||||
Adjusted pretax income (non-GAAP) | 163 | 233 | 223 | 252 | 162 | 874 | 1,206 | |||||||
Income taxes (1)
|
(41) | (58) | (56) | (63) | (40) | (219) | (302) | |||||||
Adjusted net income (non-GAAP) | $ | 122 | $ | 175 | $ | 167 | $ | 189 | $ | 122 | $ | 655 | $ | 904 |
Weighted average number of diluted shares | 120.2 | 120.2 | 120.1 | 120.8 | 120.6 | 120.6 | 124.4 | |||||||
C&I adjusted diluted EPS
|
$ | 1.02 | $ | 1.45 | $ | 1.39 | $ | 1.57 | $ | 1.01 | $ | 5.43 | $ | 7.27 |
Note: |
Quarters may not sum to fiscal year due to rounding.
|
On January 1, 2023, the Company adopted ASU 2018-12, Financial Services - Insurance: Targeted Improvements to the Accounting for Long-Duration Contracts. In accordance with this standard, the Company has recast its fiscal year 2022 financial information to reflect the effects of the adoption. | |
(1) | Income taxes assume a 25% tax rate. |
OneMain Holdings, Inc. | ||||||||||||||
CONSUMER & INSURANCE SEGMENT METRICS (UNAUDITED) | ||||||||||||||
Quarter Ended | Fiscal Year | |||||||||||||
(unaudited, $ in millions) |
Jun 30, 2024 |
Mar 31, 2024 |
Dec 31, 2023 |
Sep 30, 2023 |
Jun 30, 2023 |
2023 | 2022 | |||||||
Net finance receivables - personal loans | $ | 20,073 | $ | 19,854 | $ | 20,274 | $ | 20,176 | $ | 19,797 | $ | 20,274 | $ | 19,498 |
Net finance receivables - auto finance
|
1,889 | 843 | 745 | 660 | 555 | 745 | 382 | |||||||
Net finance receivables - consumer loans
|
21,962 | 20,697 | 21,019 | 20,836 | 20,352 | 21,019 | 19,880 | |||||||
Net finance receivables - credit cards | 466 | 386 | 330 | 232 | 159 | 330 | 107 | |||||||
Net finance receivables | $ | 22,428 | $ | 21,083 | $ | 21,349 | $ | 21,068 | $ | 20,511 | $ | 21,349 | $ | 19,987 |
Allowance for finance receivable losses | $ | 2,571 | $ | 2,454 | $ | 2,480 | $ | 2,449 | $ | 2,392 | $ | 2,480 | $ | 2,315 |
Allowance ratio | 11.46 | % | 11.64 | % | 11.62 | % | 11.62 | % | 11.66 | % | 11.62 | % | 11.58 | % |
Net finance receivables | 22,428 | 21,083 | 21,349 | 21,068 | 20,511 | 21,349 | 19,987 | |||||||
Finance receivables serviced for our whole loan sale partners | 1,229 | 871 | 882 | 864 | 849 | 882 | 766 | |||||||
Managed receivables | $ | 23,657 | $ | 21,954 | $ | 22,231 | $ | 21,932 | $ | 21,360 | $ | 22,231 | $ | 20,753 |
Average net finance receivables - personal loans | $ | 19,937 | $ | 20,117 | $ | 20,273 | $ | 20,032 | $ | 19,495 | $ | 19,788 | $ | 19,151 |
Average net finance receivables - auto finance
|
1,843 | 786 | 707 | 608 | 504 | 559 | 226 | |||||||
Average net finance receivables - consumer loans
|
21,780 | 20,903 | 20,980 | 20,640 | 19,999 | 20,347 | 19,377 | |||||||
Average net finance receivables - credit cards | 430 | 364 | 281 | 193 | 137 | 181 | 65 | |||||||
Average net receivables | 22,210 | 21,267 | 21,261 | 20,833 | 20,136 | 20,528 | 19,442 | |||||||
Average receivables serviced for our whole loan sale partners | 1,195 | 867 | 881 | 864 | 852 | 852 | 610 | |||||||
Average managed receivables | $ | 23,405 | $ | 22,134 | $ | 22,142 | $ | 21,697 | $ | 20,988 | $ | 21,380 | $ | 20,052 |
Note: | Ratios may not sum due to rounding. |
OneMain Holdings, Inc. | ||||||||||||||
CONSUMER & INSURANCE KEY METRICS (UNAUDITED) (Non-GAAP) | ||||||||||||||
Quarter Ended | Fiscal Year | |||||||||||||
(unaudited, in millions) |
Jun 30, 2024 |
Mar 31, 2024 |
Dec 31, 2023 |
Sep 30, 2023 |
Jun 30, 2023 |
2023 | 2022 | |||||||
Adjusted pretax income (non-GAAP) | $ | 163 | $ | 233 | $ | 223 | $ | 252 | $ | 162 | $ | 874 | $ | 1,206 |
Provision for finance receivable losses | 515 | 431 | 446 | 410 | 479 | 1,721 | 1,399 | |||||||
Net charge-offs | (496) | (457) | (415) | (353) | (385) | (1,536) | (1,186) | |||||||
Change in C&I allowance for finance receivable losses (non-GAAP) | 19 | (26) | 31 | 57 | 94 | 185 | 213 | |||||||
Pretax capital generation (non-GAAP) | 182 | 207 | 254 | 309 | 256 | 1,059 | 1,419 | |||||||
Capital generation, net of tax(1) (non-GAAP)
|
$ | 136 | $ | 155 | $ | 191 | $ | 232 | $ | 192 | $ | 794 | $ | 1,064 |
C&I average net receivables | $ | 22,210 | $ | 21,267 | $ | 21,261 | $ | 20,833 | $ | 20,136 | $ | 20,528 | $ | 19,442 |
Capital generation return on receivables (non-GAAP)
|
2.9% | 2.9% | 3.6% | 4.4% | 3.8% | 3.9% | 5.5% | |||||||
Note: |
Consumer & Insurance financial information is presented on an adjusted Segment Accounting Basis. Amounts may not sum to fiscal year due to rounding.
|
On January 1, 2023, the Company adopted ASU 2018-12, Financial Services - Insurance: Targeted Improvements to the Accounting for Long-Duration Contracts. In accordance with this standard, the Company has recast its fiscal year 2022 financial information to reflect the effects of the adoption. | |
(1) | Income taxes assume a 25% rate. |
OneMain Holdings, Inc. | ||||||||||||||
CONSUMER & INSURANCE CONSUMER LOANS METRICS (UNAUDITED)
|
||||||||||||||
Quarter Ended | Fiscal Year | |||||||||||||
(unaudited, $ in millions) |
Jun 30, 2024 |
Mar 31, 2024 |
Dec 31, 2023 |
Sep 30, 2023 |
Jun 30, 2023 |
2023 | 2022 | |||||||
Gross charge-offs | $ | 553 | $ | 522 | $ | 468 | $ | 410 | $ | 446 | $ | 1,768 | $ | 1,431 |
Recoveries | (75) | (77) | (60) | (63) | (67) | (258) | (252) | |||||||
Net charge-offs | $ | 478 | $ | 445 | $ | 408 | $ | 347 | $ | 379 | $ | 1,510 | $ | 1,179 |
Gross charge-off ratio
|
9.68% | 10.05 | % | 8.82 | % | 7.89 | % | 8.94 | % | 8.69 | % | 7.39 | % | |
Recovery ratio | (1.39%) | (1.48 | %) | (1.13 | %) | (1.21 | %) | (1.34 | %) | (1.27 | %) | (1.30 | %) | |
Net charge-off ratio
|
8.29% | 8.58 | % | 7.70 | % | 6.68 | % | 7.60 | % | 7.42 | % | 6.09 | % | |
Average net receivables | $ | 21,780 | $ | 20,903 | $ | 20,980 | $ | 20,640 | $ | 19,999 | $ | 20,346 | $ | 19,377 |
Yield | 21.9% | 22.1% | 22.1% | 22.2% | 22.2% | 22.2% | 22.8% | |||||||
Origination volume | $ | 3,582 | $ | 2,523 | $ | 3,014 | $ | 3,278 | $ | 3,742 | $ | 12,851 | $ | 13,879 |
30+ delinquency | $ | 1,198 | $ | 1,153 | $ | 1,294 | $ | 1,156 | $ | 1,036 | $ | 1,294 | $ | 1,154 |
90+ delinquency | $ | 511 | $ | 591 | $ | 605 | $ | 535 | $ | 474 | $ | 605 | $ | 544 |
30-89 delinquency | $ | 687 | $ | 562 | $ | 689 | $ | 621 | $ | 562 | $ | 689 | $ | 610 |
30+ delinquency ratio | 5.45% | 5.57 | % | 6.16 | % | 5.55 | % | 5.09 | % | 6.16 | % | 5.80 | % | |
90+ delinquency ratio | 2.33% | 2.86 | % | 2.88 | % | 2.57 | % | 2.33 | % | 2.88 | % | 2.74 | % | |
30-89 delinquency ratio | 3.13% | 2.72 | % | 3.28 | % | 2.98 | % | 2.76 | % | 3.28 | % | 3.07 | % |
Note: | Consumer & Insurance financial information is presented on a Segment Accounting Basis. Delinquency ratios are calculated as a percentage of C&I personal loan net finance receivables. Amounts may not sum due to rounding. |
(1) |
2Q24 adjusted for policy alignment associated with the Foursight acquisition.
|