OneMain Holdings Inc
For the period ended Dec 31, 2024. Filed Feb 7, 2025.
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FY2024 · Filed Feb 7, 2025
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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 18 of the Notes to the Consolidated Financial Statements in Part II - Item 8 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 consolidated financial statement amounts.
CONSUMER AND INSURANCE
The following table below presents OMH’s adjusted pretax income and selected financial statistics for C&I on an adjusted Segment Accounting Basis.
| (dollars in millions) | |||
|---|---|---|---|
| At or for the Years Ended December 31, | 2024 | 2023 | 2022 |
| Interest income | $4,965 | $4,559 | $4,429 |
| Interest expense | 1,181 | 1,015 | 886 |
| Provision for finance receivable losses | 1,981 | 1,721 | 1,399 |
| Net interest income after provision for finance receivable losses | 1,803 | 1,823 | 2,144 |
| Other revenues | 722 | 727 | 644 |
| Other expenses | 1,743 | 1,676 | 1,582 |
| Adjusted pretax income (non-GAAP) | $782 | $874 | $1,206 |
| Selected Financial Statistics (a) | |||
| Total finance receivables: | |||
| Net finance receivables | $23,598 | $21,349 | $19,987 |
| Average net receivables | $22,440 | $20,528 | $19,442 |
| Gross charge-off ratio (b) | 9.49% | 8.74% | 7.40% |
| Recovery ratio | (1.37)% | (1.26)% | (1.29)% |
| Net charge-off ratio (b) | 8.11% | 7.48% | 6.10% |
| (dollars in millions) | |||
|---|---|---|---|
| At or for the Years Ended December 31, | 2024 | 2023 | 2022 |
| Selected Financial Statistics, continued (a) | |||
| Personal loans: | |||
| Net finance receivables | $20,833 | $20,274 | $19,498 |
| Origination volume | $12,246 | $12,296 | $13,525 |
| Number of accounts | 2,375,138 | 2,361,026 | 2,305,676 |
| Number of accounts originated | 1,171,271 | 1,224,362 | 1,342,276 |
| Auto finance: | |||
| Net finance receivables | $2,122 | $745 | $382 |
| Origination volume | $1,075 | $555 | $354 |
| Number of accounts | 126,518 | 54,032 | 28,421 |
| Number of accounts originated | 53,222 | 34,451 | 23,713 |
| Consumer loans: | |||
| Net finance receivables | $22,955 | $21,019 | $19,880 |
| Yield | 22.07% | 22.20% | 22.77% |
| Origination volume | $13,321 | $12,851 | $13,879 |
| Number of accounts | 2,501,656 | 2,415,058 | 2,334,097 |
| Number of accounts originated | 1,224,493 | 1,258,813 | 1,365,989 |
| Net charge-off ratio (b) | 7.94% | 7.42% | 6.09% |
| 30-89 Delinquency ratio | 3.24% | 3.28% | 3.07% |
| Credit cards: | |||
| Net finance receivables | $643 | $330 | $107 |
| Purchase volume | $892 | $442 | $172 |
| Number of open accounts | 782,932 | 430,784 | 135,335 |
(a) See “Glossary” at the beginning of this report for formulas and definitions of our key performance ratios.
(b) The calculation for the year ended December 31, 2024 has been adjusted for policy alignment associated with the Foursight Acquisition.
Comparison of Adjusted Pretax Income for Twelve Months Ended December 31, 2024 and 2023
Interest income increased $406 million or 9% in 2024 when compared to 2023 due to growth in average net receivables.
Interest expense increased $166 million or 16% in 2024 when compared to 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 $260 million or 15% in 2024 when compared to 2023 related to growth in our receivables and higher net charge-offs. The increase was partially offset by a lower build in the allowance for finance receivable losses in the current year due to improved credit performance.
Other revenues remained consistent in 2024 when compared to 2023 as a lower gain on sales of finance receivables and a decrease in investment revenue due to lower average corporate cash balances were offset by an increase in credit card revenue from growth in receivables and higher servicing revenue associated with our whole loan sale program.
Other expenses increased $67 million or 4% in 2024 when compared to 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.
Comparison of Adjusted Pretax Income for 2023 and 2022
For a comparison of OMH's adjusted pretax income for C&I for the years ended 2023 and 2022, 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, 2023, filed with the SEC on February 13, 2024
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