OneMain (US:OMF)2025-07-29 10:30Financial Performance - As of June 30, 2025, the company reported managed receivables of $25.2 billion from approximately 3.5 million customer accounts, an increase from $24.7 billion from 3.4 million accounts at December 31, 2024[128]. - For the three months ended June 30, 2025, interest income was $1,339 million, up from $1,219 million in the same period of 2024, while net income increased to $167 million from $71 million[141]. - The provision for finance receivable losses decreased to $511 million for the three months ended June 30, 2025, compared to $575 million for the same period in 2024[141]. - The gross charge-off ratio improved to 9.05% for the three months ended June 30, 2025, down from 9.84% in the same period of 2024[141]. - The average net receivables increased to $23,600 million for the three months ended June 30, 2025, compared to $22,141 million for the same period in 2024[141]. - Interest income increased by $120 million or 10% for the three months ended June 30, 2025, and by $256 million or 11% for the six months ended June 30, 2025, compared to the same periods in 2024[145]. - Adjusted pretax income (non-GAAP) for the three months ended June 30, 2025, was $231 million, up from $163 million in 2024[159]. - Other revenues increased by $2 million or 1% for the three months ended June 30, 2025, driven by higher gains on sales of finance receivables[148]. - Other revenues rose by $11 million or 6% and $21 million or 6% for the three and six months ended June 30, 2025, due to higher gains on sales of finance receivables and increased credit card revenue[167]. Debt and Financing - The company issued $600 million of 6.750% Senior Notes due 2032 on March 13, 2025, and $800 million of 7.125% Senior Notes due 2032 on June 11, 2025[131][132]. - Long-term debt balance increased to $22,053 million as of June 30, 2025, compared to $20,671 million in 2024[160]. - The borrowing capacity of the corporate revolver was $1.1 billion as of June 30, 2025[186]. - The company completed two new consumer loan securitizations during the six months ended June 30, 2025, with a borrowing capacity of $6.0 billion for revolving conduit facilities[187]. - OMFC issued $600 million of 6.750% Senior Notes due 2032 on March 13, 2025, and $800 million of 7.125% Senior Notes due 2032 on June 11, 2025[183][184]. - OMFC has access to 17 revolving conduit facilities with a total borrowing capacity of $6.0 billion as of June 30, 2025[211]. Receivables and Loan Performance - Net finance receivables for personal loans reached $20,814 million for the three months ended June 30, 2025, up from $20,073 million in 2024[160]. - The net charge-off ratio improved to 7.19% for the three months ended June 30, 2025, compared to 8.31% in 2024[160]. - The yield on consumer loans improved to 22.70% for the three months ended June 30, 2025, compared to 22.12% in 2024[160]. - The delinquency ratio for consumer loans was 3.05% for 30-89 days past due and 2.12% for 90+ days past due as of June 30, 2025, showing slight improvements from the previous year[174]. - The allowance for finance receivable losses as a percentage of net finance receivables increased slightly to 11.54% as of June 30, 2025, primarily due to changes in portfolio mix[178]. Cash Flow and Liquidity - Net cash provided by operations for the six months ended June 30, 2025, was $1.4 billion, reflecting a net income of $380 million[199]. - Net cash used for investing activities was $1.3 billion for the six months ended June 30, 2025[200]. - Net cash provided by financing activities was $274 million for the six months ended June 30, 2025[201]. - As of June 30, 2025, OMH had $769 million in cash and cash equivalents and $1.7 billion in investment securities[202]. - As of June 30, 2025, the company had $9.7 billion of unencumbered receivables, indicating strong liquidity[181]. Shareholder Returns - As of June 30, 2025, OMH repurchased 782,773 shares of its common stock for a total of $37 million[193]. - OMH declared a total dividend of $2.08 per share for the current year, amounting to $248 million paid to common stockholders[194]. Internal Controls and Risk Management - As of June 30, 2025, OneMain Holdings, Inc. (OMH) evaluated the effectiveness of its disclosure controls and procedures, concluding they were effective[221]. - There were no material changes in OMH's internal control over financial reporting during Q2 2025[222]. - OneMain Finance Corporation (OMFC) also evaluated its disclosure controls and procedures as of June 30, 2025, and found them effective[224]. - OMFC reported no changes in its internal control over financial reporting during Q2 2025 that materially affected its operations[225]. - There have been no material changes to market risk previously disclosed by OMH[218]. Economic Outlook - The company aims to expand its product offerings and grow receivables while maintaining a disciplined underwriting model[138]. - The company is focused on maximizing returns while minimizing credit risk and maintaining strong liquidity levels with diversified funding sources[139]. - The company is actively monitoring macroeconomic conditions that could impact its financial performance, including unemployment and inflation trends[137].