OneMain Holdings Inc (OMF) Reports Strong Q3 2023 Earnings
OneMain Holdings Inc (NYSE:OMF) reported Q3 2023 diluted EPS of $1.61, up from $1.49 in the prior year quarter.
The company's managed receivables stood at $21.9 billion, marking a 7% increase from $20.5 billion at the end of Q3 2022.
OneMain declared a quarterly dividend of $1.00 per share and repurchased 268 thousand shares for $11 million in Q3 2023.
The company reported a net income of $194 million for Q3 2023, compared to $185 million in the prior year quarter.
OneMain Holdings Inc (NYSE:OMF), a leader in offering nonprime customers responsible access to credit, released its earnings report for the third quarter of 2023 on October 25, 2023. The company reported a pretax income of $246 million and a net income of $194 million, compared to $246 million and $185 million, respectively, in the prior year quarter. Earnings per diluted share were $1.61 in the third quarter of 2023, compared to $1.49 in the prior year quarter.
Financial Highlights
OneMain's Consumer and Insurance Segment (C&I) reported an adjusted pretax income of $252 million and adjusted net income of $189 million for the third quarter of 2023, compared to $246 million and $184 million, respectively, in the prior year quarter. The company's C&I capital generation, defined as C&I adjusted net income excluding the after-tax change in C&I allowance for finance receivable losses while still considering the current period C&I net charge-offs, was $232 million for the third quarter 2023, compared to $280 million in the prior year quarter.
Managed receivables, which includes loans serviced for the company's whole loan sale partners, were $21.9 billion at the end of September 2023, up 7% from $20.5 billion at the end of September 2022. Personal loan originations totaled $3.3 billion in the third quarter of 2023, down 8% from $3.6 billion in the prior year quarter. Interest income in the third quarter of 2023 was $1.2 billion, up 4% from $1.1 billion in the prior year quarter.
Company's Outlook
OneMain's CEO, Doug Shulman, expressed confidence in the company's position, stating,
OneMain remains very well positioned in the current environment. Our strong balance sheet, superior credit risk management, and new products position us well for the future."
Financial Tables
OneMain's consolidated statements of operations show a net income of $194 million for the quarter ended September 30, 2023, compared to $185 million for the same period in the previous year. The company's consolidated balance sheets reveal total assets of $24.1 billion as of September 30, 2023, compared to $22.3 billion as of September 30, 2022.
OneMain's strong Q3 2023 performance, highlighted by a significant increase in diluted EPS and managed receivables, reflects the company's robust financial health and strategic growth initiatives. The company's commitment to credit risk management and product innovation further strengthens its market position and future prospects.
This article first appeared on GuruFocus.
