OneMain (OMF) - 2024 Q1 - Quarterly Results

Financial Performance - OneMain reported pretax income of $204 million and net income of $155 million for Q1 2024, down from $235 million and $179 million in the prior year quarter[1]. - Earnings per diluted share decreased to $1.29 in Q1 2024 from $1.48 in the prior year quarter, impacted by a $27 million restructuring charge[1]. - C&I adjusted pretax income was $233 million in Q1 2024, slightly down from $236 million in the prior year quarter[4]. - Net income for Q1 2024 was $155 million, compared to $165 million in Q4 2023, reflecting a decrease of 6.1%[24]. - The diluted EPS for Q1 2024 was $1.29, down from $1.38 in Q4 2023, representing a decline of 6.5%[24]. - Adjusted pretax income (non-GAAP) for Q1 2024 was $233 million, up from $223 million in Q4 2023[33]. - Adjusted net income (non-GAAP) for Q1 2024 was $175 million, compared to $167 million in Q4 2023[33]. - The adjusted diluted EPS for Q1 2024 was $1.45, an increase from $1.39 in Q4 2023[33]. Loan Originations and Receivables - Consumer loan originations totaled $2.5 billion in Q1 2024, a 10% decline from $2.8 billion in the prior year quarter[7]. - Managed receivables reached $22.0 billion as of March 31, 2024, a 6% increase from $20.6 billion a year earlier[6]. - The net finance receivables stood at $21.083 billion, slightly down from $21.349 billion in Q4 2023[26]. - Total net finance receivables stood at $21,083 million in Q1 2024, a decrease from $21,349 million in Q4 2023[35]. - Average net receivables for consumer loans in Q1 2024 were $20,903 million, slightly down from $20,980 million in Q4 2023[40]. - Origination volume for consumer loans in Q1 2024 was $2,523 million, a decrease from $3,014 million in Q4 2023[40]. Interest Income and Expense - Interest income increased to $1.2 billion in Q1 2024, up 7% from $1.1 billion in the prior year quarter, driven by higher average net finance receivables[7]. - Interest expense rose to $276 million in Q1 2024, a 16% increase from $238 million in the prior year quarter[8]. - For Q1 2024, OneMain Holdings reported net interest income of $896 million, a decrease of 2.3% from $917 million in Q4 2023[24]. - Net interest income for Q1 2024 was $896 million, compared to $915 million in Q4 2023, reflecting a decrease of approximately 2.1%[33]. Asset and Equity Position - Total assets as of March 31, 2024, were $23.908 billion, a decrease from $24.294 billion at the end of 2023[26]. - Cash and cash equivalents increased to $831 million from $544 million year-over-year, showing a significant improvement in liquidity[27]. - Total shareholders' equity rose to $3.214 billion from $3.186 billion in the previous quarter, indicating a positive trend in equity growth[27]. - The net leverage ratio remained stable at 5.3x, consistent with the previous quarter, reflecting a stable capital structure[27]. Credit Quality and Charge-offs - The provision for finance receivable losses was $431 million, down from $446 million in the previous quarter, indicating a slight improvement in credit quality[24]. - Net charge-offs for Q1 2024 totaled $457 million, compared to $415 million in Q4 2023, indicating an increase in charge-offs[37]. - Gross charge-offs for consumer loans in Q1 2024 were $522 million, up from $468 million in Q4 2023, reflecting a rising trend[40]. - Net charge-off ratio for consumer loans increased to 8.58% in Q1 2024 from 7.70% in Q4 2023[40]. - The allowance for finance receivable losses was $2,454 million in Q1 2024, compared to $2,480 million in Q4 2023, indicating a slight reduction[35]. Dividends and Share Repurchase - The company declared a quarterly dividend of $1.04 per share, representing a 4% increase from the previous dividend of $1.00[2]. - The company repurchased approximately 109 thousand shares of common stock for $5 million during the quarter[3]. Regulatory Changes - OneMain Holdings adopted ASU 2018-12 on January 1, 2023, impacting the accounting for long-duration contracts and necessitating a recast of prior financial information[30]. Overall Revenue - Total revenue for the fiscal year 2023 was $874 million, compared to $1,206 million in fiscal year 2022[37].