OneMain (OMF) Q4 2024 earnings summary

Executive summary

• Achieved 11% managed receivables growth to $24.7B in 2024, with 3.4M customer accounts, up 15% year-over-year, and $3.5B in 4Q24 originations, up 16% year-over-year.

• Completed and integrated the Foursight acquisition, expanding auto lending capabilities and contributing to receivable and expense growth.

• Recognized for business excellence by Newsweek, Time Magazine, and Best Practice Institute, with continued focus on financial wellness and education initiatives.

• Returned $533M in capital and generated $685M in capital for 2024, with ongoing share repurchases and dividends.

• Net income and EPS declined year-over-year, but management remains optimistic for 2025 amid improving credit trends.

Financial highlights

• 4Q24 total revenue was $1.5B, up 9% year-over-year, with interest income of $1.3B and other revenue of $177M.

• 4Q24 GAAP net income was $126M ($1.05 per diluted share), down from $1.38 per share year-over-year; adjusted net income was $139M ($1.16 per share).

• 4Q24 capital generation was $183M; return on assets was 1.9% and return on receivables was 3.1%.

• Operating expenses for 4Q24 were $422M, with an OpEx ratio of 6.8%, flat year-over-year.

• Allowance for finance receivable losses at $2.71B, allowance ratio 11.48%.

Outlook and guidance

• 2025 managed receivables growth expected at 5–8%, with revenue growth of 6–8%.

• C&I net charge-offs projected at 7.5–8.0% for 2025, with first half above and second half below the range, assuming stable macroeconomic conditions.

• Operating expense ratio expected to remain at approximately 6.6% for 2025.

• Management anticipates continued improvement in credit trends and profitability into 2025.