OneMain (US:OMF)2025-10-31 10:31Financial Performance - OneMain reported pretax income of $263 million and net income of $199 million for Q3 2025, compared to $207 million and $157 million in the prior year quarter, respectively[1]. - Earnings per diluted share increased to $1.67 in Q3 2025 from $1.31 in the prior year quarter[1]. - Total revenue for Q3 2025 was $1.6 billion, up 9% from $1.5 billion in the prior year quarter[8]. - For Q3 2025, OneMain Holdings reported net income of $199 million, an increase from $167 million in Q2 2025, reflecting a 19.2% quarter-over-quarter growth[26]. - OneMain's diluted EPS for Q3 2025 was $1.67, compared to $1.40 in Q2 2025, reflecting a 19.3% increase[26]. - The company reported a return on assets of 3.0% for Q3 2025, an improvement from 2.5% in Q2 2025[26]. - The company reported a net loss on repurchases and repayments of debt amounting to $39 million for Q3 2025, compared to $20 million in Q2 2025[30]. - OneMain Holdings' total other revenues for Q3 2025 were $200 million, up from $195 million in Q2 2025[32]. Consumer and Insurance Segment - The Consumer and Insurance segment adjusted pretax income was $303 million, up from $202 million in the prior year quarter, with adjusted net income rising to $227 million from $151 million[5]. - The adjusted pretax income (non-GAAP) for the Consumer & Insurance segment was $303 million for Q3 2025, compared to $231 million in Q2 2025, reflecting a 31.1% increase[32]. - The adjusted net income (non-GAAP) for Q3 2025 was $227 million, compared to $173 million in Q2 2025, representing a 31.2% increase[32]. Loan and Receivables Performance - Managed receivables reached $25.9 billion, a 6% increase from $24.3 billion a year earlier[7]. - Consumer loan originations totaled $3.9 billion, reflecting a 5% increase from $3.7 billion in the prior year quarter[8]. - OneMain's net finance receivables reached $24.465 billion as of September 30, 2025, up from $23.870 billion in Q2 2025, representing a 2.5% increase[28]. - The total net finance receivables reached $24,490 million as of September 30, 2025, up from $23,901 million in the previous quarter, indicating a growth of 2.5%[34]. - Average net receivables for Q3 2025 increased to $24,238 million, compared to $23,634 million in Q2 2025, representing a growth of 2.6%[35]. - Origination volume for consumer loans in Q3 2025 was $3,889 million, slightly down from $3,907 million in Q2 2025, indicating stable lending activity[37]. Expenses and Loss Provisions - Operating expenses increased to $427 million, up 8% from $396 million in the prior year quarter, due to receivable growth and strategic investments[11]. - The provision for finance receivable losses was $488 million, down $24 million compared to the prior year period[9]. - The provision for finance receivable losses was $488 million for Q3 2025, slightly down from $511 million in Q2 2025[32]. - Net charge-offs for Q3 2025 were $427 million, a decrease from $445 million in Q2 2025, showing a 4.0% improvement[26]. - Net charge-offs for Q3 2025 totaled $428 million, a decrease from $446 million in Q2 2025, showing a reduction in loan defaults[35]. - Gross charge-offs for consumer loans in Q3 2025 were $480 million, down from $496 million in Q2 2025, indicating a positive trend in loan performance[37]. - Net charge-off ratio for consumer loans in Q3 2025 was 6.67%, a decrease from 7.19% in Q2 2025, reflecting improved loan quality[37]. Shareholder Returns and Equity - The company declared a quarterly dividend of $1.05 per share, a 1% increase from the previous dividend of $1.04[2]. - OneMain repurchased approximately 540 thousand shares for $32 million during the quarter, with a new $1.0 billion share repurchase program approved[3]. - Total shareholders' equity increased to $3.378 billion as of September 30, 2025, from $3.326 billion in Q2 2025, a rise of 1.6%[29]. Asset Management - The company’s total assets reached $26.985 billion as of September 30, 2025, compared to $26.628 billion at the end of Q2 2025, marking a 1.3% increase[28]. - The allowance for finance receivable losses stood at $2.815 billion as of September 30, 2025, up from $2.754 billion in Q2 2025, indicating a 2.2% increase[28]. - The allowance for finance receivable losses stood at $2,818 million, with an allowance ratio of 11.51% as of September 30, 2025[34]. - The company maintained undrawn conduit facilities of $5.999 billion as of September 30, 2025, unchanged from Q2 2025[29]. Future Outlook - Total revenue for the fiscal year 2024 is projected to be higher than the previous year, driven by strategic market expansions and new product offerings[35].