Financial Data and Key Metrics Changes - Capital generation was $272 million, up 29% year over year [4] - C&I adjusted earnings were $1.90 per share, up 51% [4] - Total revenue grew 9% to $1.6 billion, with interest income also increasing by 9% [18] - Managed receivables ended the quarter at $25.9 billion, up $1.6 billion or 6% from a year ago [16] - Third quarter GAAP net income was $199 million, or $1.67 per diluted share, up 27% from the previous year [15] Business Line Data and Key Metrics Changes - Originations increased by 5% year over year, totaling $3.9 billion [16] - Credit card receivables reached $834 million, with over 1 million credit card customers [9] - Auto finance receivables were over $2.7 billion, up about $100 million from the last quarter [10] - Consumer loan yield was 22.6%, flat from the second quarter but up 49 basis points year over year [17] Market Data and Key Metrics Changes - 30-plus day delinquency rate was 5.41%, down 16 basis points year over year [5] - C&I net charge-offs were 7%, down 51 basis points compared to the previous year [5] - Consumer loan net charge-offs were 6.7%, down 66 basis points year over year [23] Company Strategy and Development Direction - The company is focused on innovation across products, digital experience, and data science to drive growth [31] - A conservative underwriting posture is maintained while exploring growth opportunities in high credit quality segments [17][38] - The company plans to increase its dividend by $0.01 quarterly, reflecting confidence in business strength [14] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the health of the consumer and the stability of the non-prime market [32][34] - There is a cautious optimism regarding macroeconomic factors, with expectations for continued year-over-year improvement in credit metrics [36] - The company anticipates capital generation in 2025 will significantly exceed 2024, reflecting strong business momentum [30] Other Important Information - The company has been recognized as one of America's top 100 most loved workplaces for 2025 [12] - A $1 billion share repurchase program was approved, indicating confidence in the company's capital generation [14] - The company has expanded its whole loan sale forward flow agreement, enhancing capital and funding flexibility [27] Q&A Session Summary Question: What is the current health of the non-prime consumer? - Management noted that they are not seeing negative trends in auto credit and that consumers are holding up well, with stable disposable income [32][33] Question: Can you provide insights on the direction of delinquencies? - Management expects continued year-on-year improvement in consumer loan net charge-offs and believes delinquencies are in line with expectations [36] Question: What is the company's stance on underwriting standards? - The company maintains a conservative underwriting posture and is focused on booking loans that meet risk-adjusted return thresholds [38] Question: How is the company managing funding costs? - Funding costs have come in lower than expected due to successful bond issuances and proactive debt management [41][42] Question: What are the company's plans regarding share buybacks? - The company anticipates increasing buybacks as excess capital generation grows, with a $1 billion program approved through 2028 [44] Question: How does the competitive environment look for originations? - The company sees a constructive competitive environment, with originations up 10% year-to-date, and pricing has remained stable [48][49]

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]