OneMain (OMF) investor relations material

Economic environment and consumer health

• Non-prime borrowers remain stable, with average incomes around $70,000 and strong employment rates; wage growth has caught up with inflation.

• Internal branch surveys indicate customer sentiment has improved over the last nine months, and unemployment insurance claims remain steady.

• No significant impact observed from the resumption of federal student loan payments; underwriting assumes student loan obligations regardless of deferment.

Credit performance and underwriting

• Credit metrics are improving, with 30+ day delinquencies down 29 bps and overall losses down 88 bps year-over-year.

• Loss guidance was revised to the lower half of the original range, reflecting confidence in credit quality.

• Only 10% of the loan book predates mid-2022, but these account for 24% of delinquencies; newer loans are performing within the 6%-7% loss target.

• Underwriting includes a 30% stress buffer, with potential to relax as customer performance improves.

Branch network and competitive advantage

• The branch network, nearly 1,400 locations, is a key differentiator, providing personalized service and strong community ties.

• Branches are incentivized on both loan production and credit performance, supported by advanced analytics.

• Real estate costs are low, and the network is seen as integral to superior credit outcomes.