OneMain (US:OMF)2025-04-29 10:31Financial Performance - OneMain reported pretax income of $275 million and net income of $213 million for Q1 2025, compared to $204 million and $155 million in the prior year quarter, representing increases of 35% and 37% respectively[1] - Earnings per diluted share were $1.78 in Q1 2025, up from $1.29 in the prior year quarter, reflecting a 38% increase[1] - Total revenue for Q1 2025 was $1.5 billion, up 10% from $1.4 billion in the prior year quarter[7] - Interest income in Q1 2025 was $1.3 billion, an 11% increase from $1.2 billion in the prior year quarter[7] - For Q1 2025, OneMain Holdings reported net income of $213 million, a significant increase from $126 million in Q4 2024, representing a 69% quarter-over-quarter growth[25] - The company achieved a diluted EPS of $1.78 in Q1 2025, compared to $1.05 in Q4 2024, reflecting a 69% increase[25] - Adjusted net income for Q1 2025 was $207 million, an increase from $139 million in Q4 2024, reflecting a growth of 48.18%[33] Loan and Receivables - Consumer loan originations totaled $3.0 billion in Q1 2025, a 20% increase from $2.5 billion in the prior year quarter[7] - Managed receivables reached $24.6 billion at March 31, 2025, up 12% from $22.0 billion at March 31, 2024[6] - The net finance receivables for personal loans stood at $20,469 million in Q1 2025, compared to $20,833 million in Q4 2024, indicating a decrease of 1.75%[35] - OneMain's net finance receivables totaled $23,365 million in Q1 2025, a decrease from $23,598 million in Q4 2024, representing a decline of 0.99%[35] - Average net receivables for Q1 2025 were $22,826 million, compared to $22,823 million in Q4 2024, showing stability in the loan portfolio[38] Expenses and Losses - The provision for finance receivable losses was $456 million in Q1 2025, an increase of $25 million compared to the prior year period[8] - Operating expenses for Q1 2025 were $401 million, up 11% from $362 million in the prior year quarter[10] - The company reported net charge-offs of $473 million in Q1 2025, compared to $463 million in Q4 2024, showing a slight increase of 2%[25] - The allowance for finance receivable losses stood at $2.688 billion as of March 31, 2025, slightly down from $2.705 billion at the end of 2024[27] - The company reported a net charge-off of $1,773 million for the fiscal year 2024, an increase from $1,510 million in 2023, highlighting rising credit losses[38] Capital and Equity - Capital generation for Q1 2025 was $194 million, compared to $155 million in the prior year quarter, driven by receivable growth and improved credit performance[5] - Total shareholders' equity rose to $3.280 billion as of March 31, 2025, up from $3.191 billion at the end of 2024, reflecting a 2.8% increase[27] - The net leverage ratio (net adjusted debt to adjusted capital) was 5.5x as of March 31, 2025, slightly improved from 5.6x in the previous quarter[28] - Capital generation return on receivables for Q1 2025 was 3.3%, up from 3.1% in Q4 2024, reflecting enhanced efficiency in capital generation[36] Dividend and Shareholder Returns - OneMain declared a quarterly dividend of $1.04 per share, payable on May 16, 2025[2] Other Financial Metrics - Total assets reached $26.029 billion as of March 31, 2025, compared to $25.910 billion at the end of 2024, indicating a 0.5% growth[27] - Cash and cash equivalents increased to $627 million in Q1 2025 from $458 million in Q4 2024, a rise of 37%[28] - The company’s total operating expenses for Q1 2025 were $401 million, down from $422 million in Q4 2024, indicating a reduction of 4.97%[33] - The gross charge-off ratio for Q1 2025 was 9.34%, an increase from 8.96% in Q4 2024, indicating a need for closer monitoring of loan performance[38] - 30+ delinquency ratio improved to 5.16% in Q1 2025 from 5.76% in Q4 2024, indicating better loan performance[38] Future Projections - Total revenue for the fiscal year 2024 is projected to be $782 million, compared to $874 million in 2023, indicating a potential decline[36]