Q2 2024 OneMain Holdings Inc Earnings Call Transcript
Key Points
- OneMain Holdings Inc (OMF) reported a 7% year-over-year increase in total revenue for the second quarter of 2024.
- The company saw an 11% year-over-year growth in receivables, driven by the acquisition of Foursight and expanded product offerings.
- Capital generation for the quarter was $136 million, despite the impact of the Foursight acquisition.
- The company successfully raised $1.9 billion in secured and unsecured debt, extending its debt maturity profile.
- OneMain Holdings Inc (OMF) continues to leverage data science and product innovation to find profitable growth opportunities.
- Second-quarter GAAP net income was $71 million, or $0.59 per diluted share, down from $0.85 per diluted share in the second quarter of 2023.
- Loan net charge-offs were 8.3% in the quarter, consistent with expectations but still a significant figure.
- The operating expense ratio was 6.4%, which, while improved, still indicates ongoing cost pressures.
- Interest expense for the quarter was $295 million, up $53 million versus the prior year, driven by increased average debt and higher cost of funds.
- The company maintained a conservative underwriting posture, which may limit growth opportunities in the near term.
Welcome to the OneMain financial second-quarter 2024 earnings conference call and webcast.
Hosting the call today from OneMain is Peter Poillon, Head of Investor Relations. Today's call is being recorded. (Operator Instructions)
It is now my pleasure to turn the floor over to Peter Poillon. You may begin.
Thank you, operator. Good morning, everyone, and thank you for joining us.
Let me begin by directing you to page 2 of the second-quarter 2024 investor presentation, which contains important disclosures concerning forward-looking statements and the use of non-GAAP measures. The presentation can be found in the Investor Relations section of the OneMain website.
Our discussion today will contain certain forward-looking statements reflecting management's current beliefs about the company's future financial performance and business prospects. And these forward-looking statements are subject to inherent risks and uncertainties and speak only as of today.
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