OneMain Holdings, Inc. (NYSE: OMF) 4Q 2017 Earnings Presentation February 14, 2018 Important Information This document contains summarized information concerning OneMain Holdings, Inc. (the "Company") and the Company's business, operations, financial performance and trends. No representation is made that the information in this document is complete. For additional financial, statistical and business related information, as well as information regarding business and segment trends, see the Company's most rec ...

OneMain Holdings, Inc. (NYSE: OMF) 4Q 2018 Earnings Presentation February 12, 2019 Important Information This document contains summarized information concerning OneMain Holdings, Inc. (the "Company") and the Company's business, operations, financial performance and trends. No representation is made that the information in this document is complete. For additional financial, statistical and business related information see the Company's most recent Annual Report on Form 10-K ("Form 10-K") and Quarterly Repo ...

Financial Performance - OneMain Financial's net income for 4Q20 was $359 million, a 38% increase year-over-year[24] - Consumer & Insurance (C&I) adjusted net income for 4Q20 was $373 million, up 39% year-over-year[24] - Net charge-offs in 4Q20 were $189 million, a 28% decrease year-over-year[25] - Net income for FY2020 was $730 million, a 15% decrease year-over-year[24] - C&I adjusted net income for FY2020 was $819 million, an 11% decrease year-over-year[24] Credit Quality - The 30-89 day delinquency ratio was 23%, down 19 bps year-over-year in 4Q20[25] - The 90+ day delinquency ratio was 17%, down 36 bps year-over-year in 4Q20[25] - Net charge-offs were 42% in 4Q20, down 153 bps year-over-year[25] - Net charge-offs were 55% in FY20, down 48 bps year-over-year[25] Capital and Liquidity - Net leverage was 43x, at the lower end of the target range of 4-6x[20,27] - The company declared a dividend of $395 per share in 1Q21[20] - Ending net receivables were $181 billion, down 2% year-over-year[27] Origination and Portfolio - 44% of loans were closed digitally in 4Q20[20,77] - Originations were $32 billion in 4Q20, compared to $37 billion in 4Q19[44] - The portfolio secured mix was 53%, up from 52% year-over-year[27]

Core Insights - The logistics sector has seen significant engagement from investors, particularly in the ASEAN and US markets, highlighting a trend towards diversification in investment portfolios [1] - The popularity of insurance companies in the Philippines since 2014 indicates a growing interest in financial products beyond traditional savings [1] - The entry into the US market has provided opportunities for investment in various sectors, including banks, hotels, and logistics, reflecting a broader strategy of portfolio diversification [1] Investment Strategies - Initial investments were focused on blue-chip companies, which are typically seen as stable and reliable options for investors [1] - A mix of long-term holdings for retirement and short-term trades for profit maximization demonstrates a balanced investment approach [1] - The use of analytical tools and comparisons between different markets, such as the US and Philippine markets, enhances investment decision-making [1]

Group 1 - OneMain Holdings (NYSE: OMF) has experienced a mixed performance over the past year, with a loss of approximately 4% but an 8% dividend payout [1] - The company reported solid Q1 results, yet its shares fell by about 1% following the announcement, with a further decline observed on the subsequent day [1] - The company has over fifteen years of experience in making contrarian bets based on macro views and stock-specific turnaround stories to achieve outsized returns with a favorable risk/reward profile [1]

Core Viewpoint - OneMain Holdings reported strong adjusted earnings for Q1 2025, exceeding consensus estimates, but faced challenges with rising expenses and declining loan balances [1][2][3]. Financial Performance - Adjusted earnings per share were $1.72, surpassing the Zacks Consensus Estimate of $1.55, and increased by 18.6% year-over-year [1]. - Net income available to common shareholders on a GAAP basis was $213 million, up from $155 million in the prior-year quarter [2]. - Net interest income (NII) rose by 11.2% to $96 million, driven by higher net finance receivables and improved yield [3]. - Total other revenues increased by 4.4% to $188 million, attributed to gains on sales of finance receivables [3]. Expenses and Provisions - Total other expenses rose by 2.7% to $453 million due to higher operating expenses [3]. - The provision for finance receivable losses was $456 million, up 5.8% from the prior-year quarter [4]. - Net charge-offs were $473 million, reflecting a 3.5% increase year-over-year [4]. Credit Quality - Delinquencies of 30-89 days increased to $630 million, up 12.1% [4]. - The allowance ratio decreased to 11.52% from 11.64% in the prior-year quarter [4]. Balance Sheet and Debt - Total net finance receivables as of March 31, 2025, were $23.4 billion, down 1% from the prior quarter [5]. - Long-term debt increased slightly to $21.5 billion [5]. Share Repurchase - The company repurchased 323 thousand shares for $16 million during the reported quarter [6]. Strategic Outlook - OneMain Holdings aims to grow credit card and auto finance loans, supported by lower interest rates and strategic acquisitions, although rising expenses and deteriorating asset quality present challenges [7].

Financial Data and Key Metrics Changes - Capital generation increased to $194 million, up 25% year over year [6][18] - C&I adjusted earnings were $1.72 per share, reflecting a 19% increase [6][18] - Receivables grew by 12% year over year, totaling $24.6 billion [18][19] - Total revenue reached $1.5 billion, a 10% increase compared to the previous year [21] - First quarter GAAP net income was $213 million, or $1.78 per diluted share, up 38% from the previous year [18] Business Line Data and Key Metrics Changes - Originations grew by 20% year over year, totaling $3 billion, with organic growth at 13% [19] - Credit card receivables ended at $676 million, while auto finance receivables reached $2.5 billion [9][10] - Consumer loan net charge-offs were 7.8%, down 75 basis points year over year [26] - C&I net charge-offs were 8.2%, down 49 basis points from the previous year [26] Market Data and Key Metrics Changes - The company serves over 3.4 million customers, a 14% increase from a year ago [8] - 30+ day delinquency rate was 5.08%, down 49 basis points year over year [24] - Consumer loan yield was 22.4%, up 28 basis points year over year [20] Company Strategy and Development Direction - The company is focused on long-term profitable growth through strategic initiatives and product innovation [5][14] - Plans to form OneMain Bank, an industrial loan company (ILC), to enhance market access and operational efficiency [13][14] - The company maintains a conservative underwriting posture while preparing to ramp growth when appropriate [10][12] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in navigating the uncertain macroeconomic environment, citing a strong balance sheet and credit expertise [5][11] - Positive credit trends and improved delinquency metrics are expected to continue, enhancing loss performance [24][26] - The company anticipates managed receivables growth of 5% to 8% and total revenue growth of 6% to 8% for 2025 [32] Other Important Information - The company raised $1.5 billion in secured and unsecured markets, demonstrating strong market access [17][30] - Operating expenses were $400 million, down 5% from the previous quarter [29] - The company repurchased 323,000 shares for approximately $16 million during the first quarter [16] Q&A Session Summary Question: Benefits of the ILC - Management stated that the ILC would allow for market expansion, simplified operations, and access to deposit funding without becoming a bank holding company [36][39] Question: Credit Performance Trends - Management noted improvements in delinquency rates and credit performance, with trends being monitored closely [42][44] Question: Reserve Ratio and Credit Trends - The reserve ratio remains unchanged due to macroeconomic uncertainty, with adjustments dependent on future economic conditions [47][49] Question: Growth in New Products - Management indicated that growth in new products would be considered once macroeconomic conditions stabilize [50][52] Question: Recovery Performance - Strong recovery performance was attributed to internal collection efforts rather than used car prices, with expectations for similar future performance [55][58] Question: Credit Card Delinquency and Charge-Offs - Credit card delinquency trends are positive, with charge-off expectations set for the long term rather than for 2025 [104][106] Question: M&A Interest - Management was asked about potential acquisitions to build out growth areas, indicating a focus on the ILC process for now [107]

Financial Performance - Originations reached $3 billion, a 20% year-over-year increase (13% organic)[13] - Capital Generation was $194 million, with C&I Adjusted EPS at $1.72[14] - C&I Total Revenue increased by 10% year-over-year to $1.5 billion[22] - Adjusted Pretax Income for Consumer & Insurance (C&I) was $275 million[25] Receivables and Portfolio - Managed Receivables totaled $24.6 billion, up 12% year-over-year (6% organic)[15] - Auto Managed Receivables amounted to $2.5 billion, with originations of $342 million[15] - Credit Card Receivables reached $676 million across 836 thousand customer accounts[16] Credit Quality - Consumer Loan net charge-offs decreased by 75bps year-over-year to 7.8%[17] - Consumer Loan 30+ Day Delinquency decreased by 49bps year-over-year to 5.08%[18] - C&I net charge-offs were 8.2%[17] Strategic Priorities - The company expects Managed Receivables Growth of 50%-80% in 2025[83] - The company expects Revenue Growth of 60%-80% in 2025[83] - The company expects an Operating Expense Ratio of ~6.6% in 2025[83]

Financial Data and Key Metrics Changes - Capital generation reached $194 million, up 25% year over year [9][21] - C&I adjusted earnings were $1.72 per share, an increase of 19% [9][21] - Receivables grew by 12% year over year, totaling $24.6 billion [21][22] - Total revenue increased by 10% to $1.5 billion [24] - Originations grew by 20% year over year, with organic growth at 13% [9][22] Business Line Data and Key Metrics Changes - Consumer loan net charge-offs were 7.8%, down 75 basis points year over year [11][29] - C&I net charge-offs were 8.2%, down 49 basis points compared to the previous year [10][29] - The credit card business ended the quarter with $676 million in receivables, while the auto finance business had $2.5 billion [12][12] - The company continues to maintain a conservative underwriting posture across all business lines [13][16] Market Data and Key Metrics Changes - The 30-plus delinquency rate was 5.08%, down 49 basis points year over year [10][27] - The company serves over 3.4 million customers, a 14% increase from the previous year [11] - Consumer loan yield was 22.4%, up 28 basis points year over year [23] Company Strategy and Development Direction - The company is focused on long-term profitable growth through strategic initiatives and product innovation [8][18] - An application to form OneMain Bank, an industrial loan company, is in progress, which could enhance market access and operational efficiency [16][17] - The company aims to maintain a conservative credit posture while preparing to ramp growth when appropriate [13][16] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in navigating the uncertain macroeconomic environment, citing a strong balance sheet and credit expertise [7][14] - The company expects managed receivables to grow by 5% to 8% and total revenue by 6% to 8% for the full year 2025 [36] - Management noted that they are not currently seeing weakness in consumer behavior [36][91] Other Important Information - The company raised $1.5 billion in secured and unsecured markets, demonstrating strong market access [20][34] - Operating expenses were $401 million, up 11% year over year, but the expense ratio improved to 6.6% [32][32] Q&A Session Summary Question: Benefits of the ILC - Management discussed that the ILC would allow for market expansion, simplified operations, and access to deposit funding without becoming a bank holding company [40][42][44] Question: Credit Performance and Delinquency Trends - Management noted improvements in delinquency rates and credit performance, with a focus on monitoring trends closely [45][46][47] Question: Reserve Ratio and Credit Outlook - Management explained that the reserve ratio remains unchanged due to macro uncertainty, and future adjustments will depend on credit performance and economic conditions [50][52][96] Question: Growth in New Products - Management indicated that growth in new products like credit cards and auto finance will be considered once macroeconomic conditions stabilize [53][56] Question: Consumer Behavior and Demand - Management reported steady demand across products and no significant changes in consumer sentiment despite macroeconomic volatility [90][91]

OneMain Holdings (OMF) came out with quarterly earnings of $1.72 per share, beating the Zacks Consensus Estimate of $1.55 per share. This compares to earnings of $1.45 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 10.97%. A quarter ago, it was expected that this consumer finance company would post earnings of $1.12 per share when it actually produced earnings of $1.16, delivering a surprise of 3.57%.Over the last four quarte ...