Q3 2024 OneMain Holdings Inc Earnings Call Transcript
Key Points
- OneMain Holdings Inc (OMF) reported a significant increase in capital generation, reaching $211 million, and adjusted earnings of $1.26 per share, both up from the previous quarter.
- The company experienced an 11% year-over-year growth in receivables, driven by increased loan originations and an expanded product offering.
- Credit trends are positive, with a 30 to 89-day delinquency rate of 3.1%, down 27 basis points year-to-date, indicating improved credit performance.
- Net charge-offs decreased by about 100 basis points from the last quarter, aligning with expectations and reflecting better credit management.
- OneMain Holdings Inc (OMF) successfully issued a $750 million unsecured social bond at an interest rate of just over 7%, enhancing its funding flexibility.
- GAAP net income for the third quarter was $157 million, or $1.31 per diluted share, down from $1.61 per diluted share in the third quarter of 2023.
- Interest expense increased by $34 million year-over-year, driven by higher average debt to support receivables growth and modestly higher cost of funds.
- Provision expense was $512 million, reflecting net charge-offs and an increase in allowance due to higher receivables.
- Operating expenses rose by 6% compared to the previous year, attributed to the acquisition of Foresight and continued investments for growth.
- The company anticipates full-year net charge-offs to be at the higher end of their guidance range, indicating ongoing challenges in managing credit losses.
Thank you, operator, and good morning, everyone, and thank you for joining us.
Let me begin by directing you to page 2 of the third quarter 2020 for investor presentation, which contains important disclosures concerning forward-looking statements in 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.
Factors that could cause actual results to differ materially from these forward looking statements are set forth in our earnings press release.
We caution you not to place undue reliance on forward-looking statements.
If you may be listening to this via replay at some point after today, we remind you that remarks made herein are as of today
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