OneMain Holdings Inc
For the period ended Mar 31, 2024. Filed May 1, 2024.
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A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Mar 31, 2024 · Filed May 1, 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 Condensed Consolidated Financial Statements included in this report for further information.
See Note 17 of the Notes to the Consolidated Financial Statements in Part II - Item 8 included in our Annual Report for a description of our segment and methodologies used to allocate revenues and expenses to our C&I segment. See Note 13 of the Notes to the Condensed Consolidated Financial Statements included in this report for reconciliations of segment total to condensed 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:
| At or for theThree Months Ended March 31, | ||
|---|---|---|
| (dollars in millions) | 2024 | 2023 |
| Interest income | $1,172 | $1,092 |
| Interest expense | 276 | 238 |
| Provision for finance receivable losses | 431 | 385 |
| Net interest income after provision for finance receivable losses | 465 | 469 |
| Other revenues | 180 | 176 |
| Other expenses | 412 | 409 |
| Adjusted pretax income (non-GAAP) | $233 | $236 |
| Selected Financial Statistics * | ||
| Total finance receivables: | ||
| Net finance receivables | $21,083 | $19,810 |
| Average net receivables | $21,267 | $19,882 |
| Gross charge-off ratio | 10.12% | 9.21% |
| Recovery ratio | (1.46)% | (1.41)% |
| Net charge-off ratio | 8.66% | 7.80% |
| * See “Glossary” at the beginning of this report for formulas and definitions of our key performance ratios. | ||
| At or for theThree Months Ended March 31, | ||
|---|---|---|
| (dollars in millions) | 2024 | 2023 |
| Selected Financial Statistics * | ||
| Personal loans: | ||
| Net finance receivables | $19,854 | $19,230 |
| Origination volume | $2,354 | $2,704 |
| Number of accounts | 2,320,733 | 2,269,336 |
| Number of accounts originated | 230,850 | 263,370 |
| Auto finance: | ||
| Net finance receivables | $843 | $458 |
| Origination volume | $168 | $113 |
| Number of accounts | 61,911 | 33,942 |
| Number of accounts originated | 10,359 | 7,302 |
| Consumer loans: | ||
| Net finance receivables | $20,697 | $19,688 |
| Yield | 22.12% | 22.26% |
| Origination volume | $2,523 | $2,817 |
| Number of accounts | 2,382,644 | 2,303,278 |
| Number of accounts originated | 241,209 | 270,672 |
| Net charge-off ratio | 8.58% | 7.72% |
| 30-89 Delinquency ratio | 2.72% | 2.58% |
| Credit cards: | ||
| Net finance receivables | $386 | $122 |
| Purchase volume | $168 | $53 |
| Number of open accounts | 508,608 | 160,508 |
- See “Glossary” at the beginning of this report for formulas and definitions of our key performance ratios.
Comparison of Adjusted Pretax Income for Three Months Ended March 31, 2024 and 2023
Interest income increased $80 million or 7% for the three months ended March 31, 2024 when compared to the same period in 2023 due to growth in average net receivables.
Interest expense increased $38 million or 16% for the three months ended March 31, 2024 when compared to the same period in 2023 due to an increase in average debt as we continue to grow the business and a higher average cost of funds.
Provision for finance receivable losses increased $46 million or 12% for the three months ended March 31, 2024 when compared to the same period in 2023 driven by higher net charge-offs, partially offset by reduction in the allowance for finance receivable losses in the current quarter compared to an increase in allowance in the prior period.
Other revenues increased $4 million or 3% for the three months ended March 31, 2024 which remained relatively consistent when compared to the same period in 2023.
Other expenses increased $3 million or 1% for the three months ended March 31, 2024 which remained relatively consistent when compared to the same period in 2023.
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