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]