OneMain Holdings Inc

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 15 of the Notes to the Condensed Consolidated Financial Statements included in this report for a description of our segment and methodologies used to allocate revenues and expenses to our C&I segment and for reconciliations of segment total to condensed consolidated financial statement amounts.

CONSUMER AND INSURANCE

See the table below for OMH’s adjusted pretax income and selected financial statistics for C&I on an adjusted Segment Accounting Basis.

(a) See “Glossary” at the beginning of this report for formulas and definitions of our key performance ratios.

(b) The calculation for the nine months ended September 30, 2024 has been adjusted for policy alignment associated with the Foursight Acquisition.

Comparison of Adjusted Pretax Income for Three and Nine Months Ended September 30, 2024 and 2023

Interest income increased $105 million or 9% and $280 million or 8% for the three and nine months ended September 30, 2024 when compared to the same periods in 2023 due to growth in average net receivables.

Interest expense increased $34 million or 13% and $127 million or 17% for the three and nine months ended September 30, 2024 when compared to the same periods in 2023 due to an increase in average debt to support our receivables growth and a higher average cost of funds.

Provision for finance receivable losses increased $102 million or 25% for the three months ended September 30, 2024 when compared to the same period in 2023 due to higher net charge-offs and an increase in the allowance for finance receivable losses driven by growth in our receivables, partially offset by an increase in recoveries in the current period.

Provision for finance receivable losses increased $183 million or 14% for the nine months ended September 30, 2024 when compared to the same period in 2023 due to higher net charge-offs related to growth in our receivables, including the impact of the Foursight Acquisition. The increase was partially offset by a larger build in the allowance for finance receivable losses in the prior year period and an increase in recoveries in the current period.

Other revenues remained consistent for the three and nine months ended September 30, 2024 when compared to the same periods in 2023.

Other expenses increased $18 million or 4% for the three months ended September 30, 2024 when compared to the same period in 2023 driven by an increase in general operating expenses due to growth in our receivables and our strategic investments in the business.

Other expenses increased $27 million or 2% for the nine months ended September 30, 2024 when compared to the same period in 2023 driven by an increase in general operating expenses due to our strategic investments in the business, including the Foursight Acquisition and growth in our receivables. The increase was partially offset by a decrease in salaries and benefits expense reflecting the cost benefits of the restructuring initiatives taken in the first quarter of 2024.