OneMain (OMF) investor relations material

Customer and portfolio health

• Non-prime customers remain resilient, with incomes having caught up to inflation and steady employment trends, though no dramatic improvement in the past year.

• Underwriting is highly granular, focusing on ability to repay rather than broad approval rates.

• Portfolio resilience is supported by conservative credit box tightening since 2022, with a 30% stress overlay on loss assumptions.

• Conservative approach includes maintaining a minimum 20% ROE on loans and erring on the side of caution in risk management.

• Adjustments to credit criteria will be gradual and data-driven, requiring consistent outperformance before loosening.

Funding and balance sheet strategy

• Funding is diversified across ABS, unsecured bonds, and over $7 billion in bank lines from 14 banks, ensuring a long liquidity runway.

• The company maintains about two years of liquidity runway to withstand capital market disruptions.

• Willing to incur higher interest expenses for a fortress balance sheet, prioritizing long-term stability over short-term earnings.

• Funding strategy is seen as a core competitive advantage, earning investor trust.

Product and business diversification

• Auto lending has grown through acquisition and platform integration, offering lower risk and complementing the core business.

• Credit card receivables are growing, with cards and auto loans serving as complementary products to personal loans.

• Card business leverages digital infrastructure and customer data, with lower acquisition costs and cross-sell opportunities.

• Underwriting for all products maintains a 20% ROE threshold, with tailored models for each product type.