OneMain Holdings Inc
For the period ended Dec 31, 2023. Filed Feb 13, 2024.
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FY2023 · Filed Feb 13, 2024
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Segment Results
The results of OMFC are consolidated into the results of OMH. Due to the nominal differences between OMFC and OMH, content throughout this section relate only to OMH. See Note 1 of the Notes to the Consolidated Financial Statements in Part II - Item 8 in this report for further information.
See Note 17 of the Notes to the Consolidated Financial Statements in Part II - Item 8 in this report for a description of our segment, methodologies used to allocate revenues and expenses to our C&I segment, and reconciliations of segment total to consolidated financial statement amounts.
CONSUMER AND INSURANCE
OMH's adjusted pretax income and selected financial statistics for C&I on an adjusted Segment Accounting Basis were as follows:
| (dollars in millions) | |||
|---|---|---|---|
| At or for the Years Ended December 31, | 2023 | 2022 | 2021 |
| Interest income | $4,559 | $4,429 | $4,355 |
| Interest expense | 1,015 | 886 | 930 |
| Provision for finance receivable losses | 1,721 | 1,399 | 587 |
| Net interest income after provision for finance receivable losses | 1,823 | 2,144 | 2,838 |
| Other revenues | 727 | 644 | 597 |
| Other expenses | 1,676 | 1,582 | 1,517 |
| Adjusted pretax income (non-GAAP) | $874 | $1,206 | $1,918 |
| Selected Financial Statistics * | |||
| Total finance receivables: | |||
| Net finance receivables | $21,349 | $19,987 | $19,215 |
| Average net receivables | $20,528 | $19,442 | $18,286 |
| Gross charge-off ratio | 8.74% | 7.40% | 5.42% |
| Recovery ratio | (1.26)% | (1.29)% | (1.21)% |
| Net charge-off ratio | 7.48% | 6.10% | 4.20% |
| Personal loans: | |||
| Net finance receivables | $21,019 | $19,880 | $19,190 |
| Yield | 22.20% | 22.77% | 23.82% |
| Origination volume | $12,851 | $13,879 | $13,825 |
| Number of accounts | 2,415,058 | 2,334,097 | 2,336,845 |
| Number of accounts originated | 1,258,813 | 1,365,989 | 1,388,123 |
| Net charge-off ratio | 7.42% | 6.09% | 4.20% |
| 30-89 Delinquency ratio | 3.28% | 3.07% | 2.43% |
| Credit cards: | |||
| Net finance receivables | $330 | $107 | $25 |
| Purchase volume | $442 | $172 | $26 |
| Number of open accounts | 430,784 | 135,335 | 65,513 |
- See “Glossary” at the beginning of this report for formulas and definitions of our key performance ratios.
Comparison of Adjusted Pretax Income for Twelve Months Ended December 31, 2023 and 2022
Interest income increased $130 million or 3% in 2023 when compared to 2022 due to growth in average net receivables, partially offset by lower yield.
Interest expense increased $129 million or 15% in 2023 when compared to 2022 due to a higher average cost of funds and an increase in average debt as we continue to grow the business.
Provision for finance receivable losses increased $322 million or 23% in 2023 when compared to 2022 driven by higher net charge-offs.
Other revenues increased $83 million or 13% in 2023 when compared to 2022 due to an increase in investment revenue due to higher market rates compared to the prior year period.
Other expenses increased $94 million or 6% in 2023 when compared to 2022 due to an increase in general operating expenses and salaries and benefits expense driven by our strategic investments in the business, as well as an increase in insurance policy benefits and claims expense largely driven by favorable claims experience in the prior period not present in the current period.
Comparison of Adjusted Pretax Income for 2022 and 2021
For a comparison of OMH's adjusted pretax income for C&I for the years ended 2022 and 2021, see “Management’s Discussion and Analysis of Financial Condition and Results of Operations—OMH’s Consolidated Results” in Part II -Item 7 of OMH's Annual Report on Form 10-K for the year ended December 31, 2022, filed with the SEC on February 10, 2023.
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