OneMain (OMF) Q2 2024 earnings summary

Executive summary

• Q2 2024 net income was $71 million ($0.59 per diluted share), down from $103 million ($0.85 per share) in Q2 2023, with adjusted net income at $122 million, nearly flat year-over-year.

• Managed receivables grew 11% year-over-year to $23.7 billion, with customer accounts up 19% to 3.2 million.

• Originations reached $3.6 billion, reflecting normal seasonal trends and a conservative credit posture.

• The Foursight acquisition closed in April, expanding auto finance managed receivables to $2.2 billion and broadening the dealer network.

• Declared a $1.04 per share dividend and repurchased 152,000 shares for $8 million in Q2 2024.

Financial highlights

• Total revenue rose 7% year-over-year to $1.4 billion, with interest income up 9% to $1.2 billion.

• Adjusted diluted EPS was $1.02, nearly flat year-over-year.

• Net charge-off rate for consumer loans was 8.29%, up from 7.60% in Q2 2023; total company loss rate was 8.5%.

• Operating expense ratio improved to 6.4%, down 65bps year-over-year.

• Capital generation was $136 million, down from $192 million in Q2 2023, impacted by higher charge-offs and interest expense.

Outlook and guidance

• Full-year 2024 revenue growth guidance maintained at 6%-8%, with managed receivables projected to reach $24.5 billion by year-end.

• Net charge-offs guided to 7.7%-8.3% for the full year, including Foursight.

• Operating expense ratio guidance held at around 6.7% for the year.

• Interest expense expected at approximately 5.2% for the year.

• Management remains focused on disciplined underwriting, strong liquidity, and strategic growth despite macroeconomic uncertainty.