OneMain Holdings, Inc. (OMF) Bundle
A Brief History of OneMain Holdings, Inc.
OneMain Holdings, Inc. (NYSE: OMF), a prominent provider of personal loans in the United States, has evolved significantly since its inception. The company primarily focuses on offering consumer finance solutions, including personal loans, auto loans, and credit cards. As of 2024, OneMain operates over 1,500 branches across the country and has established a robust online presence.
Key Financial Metrics
As of September 30, 2024, OneMain reported the following financial data:
| Metric | Value (2024) | Value (2023) |
|---|---|---|
| Net Income | $383 million | $476 million |
| Earnings Per Share (Diluted) | $3.18 | $3.94 |
| Total Finance Receivables | $23.1 billion | $21.3 billion |
| Long-Term Debt | $21.1 billion | $19.8 billion |
| Total Assets | $25.6 billion | $24.3 billion |
| Total Shareholders’ Equity | $3.2 billion | $3.2 billion |
Recent Developments
In 2024, OneMain continued its expansion strategy, successfully integrating the Foursight Acquisition, which has contributed to an increase in net finance receivables and overall revenue. The company reported a 10% increase in interest income, rising from $3.4 billion in 2023 to $3.7 billion in 2024. Interest expense also saw an uptick, from $749 million in 2023 to $874 million in 2024, reflecting higher borrowing costs associated with the growth in receivables.
Credit Quality and Delinquency Ratios
Credit quality remains a critical focus for OneMain. As of September 30, 2024, the company's delinquency ratios were as follows:
| Delinquency Status | Consumer Loans | Credit Cards |
|---|---|---|
| Current | $21.3 billion | $482 million |
| 30-89 Days Past Due | $710 million | $33 million |
| 90+ Days Past Due | $562 million | $35 million |
Operational Metrics
OneMain's operational metrics have shown resilience, with consumer loans originating volumes reaching $9.8 billion in 2024, compared to $9.8 billion in 2023. The number of accounts originated was 906,988 in 2024, demonstrating a steady demand for personal finance solutions.
Dividend and Shareholder Returns
In terms of shareholder returns, OneMain declared cash dividends totaling $370 million in 2024, with a quarterly dividend of $1.04 per share. The company repurchased approximately 680,709 shares for $32 million during the nine months ended September 30, 2024, reflecting its commitment to enhancing shareholder value.
Outlook and Strategic Initiatives
Looking ahead, OneMain aims to leverage its branch network and digital capabilities to further penetrate the consumer finance market. The company is also focused on enhancing its credit risk management practices to maintain a healthy balance sheet amid evolving economic conditions.
A Who Owns OneMain Holdings, Inc. (OMF)
Major Shareholders
As of 2024, OneMain Holdings, Inc. (OMF) has a diverse ownership structure, with significant institutional and individual shareholders.
| Shareholder Type | Number of Shares Owned (millions) | Percentage of Total Shares |
|---|---|---|
| Institutional Investors | 60.5 | 50.6% |
| Insider Ownership | 5.1 | 4.3% |
| Mutual Funds | 30.3 | 25.1% |
| Other Investors | 25.1 | 20.0% |
Institutional Ownership Details
Institutional investors play a crucial role in the ownership of OneMain Holdings. Below are the top institutional shareholders as of September 30, 2024.
| Institution | Shares Owned (millions) | Percentage of Total Shares |
|---|---|---|
| The Vanguard Group | 12.5 | 10.4% |
| BlackRock, Inc. | 10.2 | 8.5% |
| State Street Corporation | 8.5 | 7.1% |
| FMR LLC (Fidelity) | 6.5 | 5.4% |
| Wellington Management | 5.3 | 4.4% |
Insider Ownership
Insider ownership is relatively limited but significant in terms of management alignment with shareholder interests.
| Insider Name | Position | Shares Owned |
|---|---|---|
| Doug Shulman | CEO | 1.2 million |
| Mary K. Hennigan | CFO | 0.8 million |
| Other Executives | Various | 3.1 million |
Recent Changes in Ownership
As of September 30, 2024, OneMain Holdings has seen changes in its shareholder structure, particularly with increased institutional investments.
- Institutional ownership increased by 2% from the previous quarter.
- Insider ownership decreased slightly due to stock sales by certain executives.
- Mutual funds have shown a consistent interest, reflecting confidence in the company's growth prospects.
Stock Performance Indicators
The stock performance of OneMain Holdings is critical to understanding shareholder value.
| Metric | Value |
|---|---|
| Current Stock Price (as of September 30, 2024) | $44.70 |
| Market Capitalization | $5.4 billion |
| Dividend per Share | $1.04 |
| EPS (Earnings Per Share) | $3.18 |
Conclusion on Ownership Dynamics
The ownership landscape of OneMain Holdings, Inc. illustrates a blend of institutional and retail investment, with a solid base of insider ownership that aligns management with shareholder interests. The company's stock performance metrics further highlight its financial health and attractiveness to investors.
OneMain Holdings, Inc. (OMF) Mission Statement
Mission Overview
OneMain Holdings, Inc. is dedicated to providing responsible access to credit for individuals across the United States. The company aims to empower customers to achieve their financial goals through personalized service and a range of financial products.
Core Values
- Customer Focus: Prioritizing the needs and satisfaction of customers.
- Integrity: Conducting business with transparency and honesty.
- Innovation: Continuously improving services and products to meet customer needs.
- Community Engagement: Actively participating in and contributing to local communities.
Financial Performance
As of September 30, 2024, OneMain Holdings reported significant financial metrics:
| Metric | Value |
|---|---|
| Net Income | $383 million |
| Earnings Per Share (Diluted) | $3.18 |
| Total Finance Receivables | $23.1 billion |
| Average Net Receivables | $22.8 billion |
| Net Charge-Off Ratio | 7.52% |
| 30-89 Days Delinquency Ratio | 3.14% |
| Gross Charge-Off Ratio | 8.89% |
| Interest Income (9 Months Ended) | $3.673 billion |
| Interest Expense (9 Months Ended) | $874 million |
| Net Interest Income After Provision for Losses | $1.281 billion |
Strategic Goals
OneMain Holdings has set strategic goals aimed at enhancing its operational efficiency and customer reach:
- Increase loan origination volume by 10% year-over-year.
- Expand digital lending capabilities to improve customer engagement.
- Enhance risk management frameworks to reduce charge-off rates.
- Invest in community initiatives to foster local partnerships.
Market Position
OneMain Holdings operates in a competitive financial services landscape, focusing on personal loans, auto finance, and credit card offerings. The company's market strategy emphasizes:
- Providing tailored loan solutions to underserved markets.
- Utilizing advanced analytics for credit risk assessment.
- Strengthening customer relationships through community-based initiatives.
Recent Developments
In 2024, OneMain Holdings successfully completed the Foursight Acquisition, enhancing its portfolio and market presence:
| Acquisition Details | Value |
|---|---|
| Goodwill Recognized | $37 million |
| Net Cash Used for Acquisition | $64 million |
| Total Debt Post-Acquisition | $21.1 billion |
Community Engagement Initiatives
OneMain Holdings actively engages in community support, contributing to various local programs:
- Financial literacy workshops.
- Support for local non-profits and charities.
- Employee volunteer programs to encourage community service.
Conclusion
The mission statement and operational strategies of OneMain Holdings reflect a commitment to customer service, financial responsibility, and community engagement, positioning it as a leader in the consumer finance sector.
How OneMain Holdings, Inc. (OMF) Works
Business Model
OneMain Holdings, Inc. (OMF) operates primarily in the consumer finance sector, focusing on personal loans, auto finance, and credit card services. The company targets customers in need of immediate financial solutions, offering a range of loan products through its extensive branch network and online platforms.
Financial Performance
As of September 30, 2024, OneMain Holdings reported net income of $383 million for the nine months ended September 30, 2024, compared to $476 million for the same period in 2023. The company generated $1,947 million in net cash from operating activities during the same period.
| Financial Metric | 2024 (9 Months) | 2023 (9 Months) |
|---|---|---|
| Net Income | $383 million | $476 million |
| Net Cash from Operating Activities | $1,947 million | $1,841 million |
| Provision for Finance Receivable Losses | $1,518 million | $1,275 million |
| Interest Income | $3,673 million | $3,377 million |
| Interest Expense | $874 million | $749 million |
Loan Portfolio
OneMain’s loan portfolio consists of various types of finance receivables. As of September 30, 2024, net finance receivables totaled $23.1 billion, with personal loans comprising a significant portion of this amount.
| Loan Type | Net Finance Receivables | Number of Accounts |
|---|---|---|
| Personal Loans | $20.6 billion | 2,363,314 |
| Auto Finance | $2.0 billion | 120,341 |
| Credit Cards | $550 million | 710,577 |
Delinquency and Credit Quality
OneMain closely monitors the delinquency status of its finance receivables. As of September 30, 2024, the delinquency ratios were as follows:
| Delinquency Status | Consumer Loans | Credit Cards |
|---|---|---|
| 30-89 Days Past Due | 3.14% | 5.93% |
| 90+ Days Past Due | 2.49% | 6.36% |
Debt and Capital Structure
As of September 30, 2024, OneMain Holdings had a long-term debt balance of $21.1 billion and total liabilities of $22.4 billion. The company’s total shareholders' equity stood at $3.2 billion.
| Debt Metric | Amount |
|---|---|
| Long-term Debt | $21.1 billion |
| Total Liabilities | $22.4 billion |
| Total Shareholders' Equity | $3.2 billion |
Recent Developments
In 2024, OneMain completed the acquisition of Foursight Capital LLC, enhancing its capabilities in consumer finance. The company continues to focus on expanding its product offerings and maintaining a strong presence in the consumer finance market.
Dividend Policy
As of September 30, 2024, OneMain declared a total cash dividend of $3.08 per share for the year, reflecting a steady commitment to returning value to shareholders.
| Dividend Declaration | Dividend Per Share | Amount Paid (in millions) |
|---|---|---|
| February 2024 | $1.00 | $120 |
| April 2024 | $1.04 | $125 |
| July 2024 | $1.04 | $125 |
| Total | $3.08 | $370 |
How OneMain Holdings, Inc. (OMF) Makes Money
Business Model Overview
OneMain Holdings, Inc. primarily generates revenue through consumer loans, auto finance, and credit card services. The company focuses on providing personal loans to customers, which are typically unsecured. In 2024, the company reported net finance receivables totaling $23.1 billion, an increase from $21.3 billion in 2023.
Revenue Streams
- Consumer Loans
- Auto Finance
- Credit Cards
Consumer Loans
OneMain's consumer loans are its largest revenue driver. For the nine months ended September 30, 2024, the origination volume for consumer loans was $9.8 billion, with net finance receivables amounting to $22.6 billion. The yield on these loans was approximately 22.06%.
Auto Finance
In the auto finance segment, OneMain reported net finance receivables of $2.0 billion with an origination volume of $769 million for the nine months ended September 30, 2024. The company originated 39,428 auto finance accounts during this period.
Credit Cards
OneMain also offers credit card products, with net finance receivables reaching $550 million as of September 30, 2024. The purchase volume for credit cards was $622 million.
Interest Income
For the three months ended September 30, 2024, OneMain reported interest income of $1.3 billion, up from $1.2 billion in the same period in 2023. For the nine months ended September 30, 2024, total interest income was $3.7 billion.
Interest Expense
Interest expense for the three months ended September 30, 2024, was $301 million, an increase from $267 million in Q3 2023. For the nine months, interest expense totaled $874 million.
Net Interest Income
Net interest income after provision for finance receivable losses was $469 million for Q3 2024, compared to $490 million in Q3 2023. For the nine months ended September 30, 2024, net interest income was $1.3 billion.
Provision for Finance Receivable Losses
The provision for finance receivable losses increased to $512 million for Q3 2024 from $410 million in Q3 2023. For the nine months, it reached $1.5 billion.
Other Revenues
Other revenues for the three months ended September 30, 2024, were $182 million, slightly down from $185 million in the same quarter of 2023. For the nine months, other revenues totaled $536 million.
Expenses
Total other expenses for the three months ended September 30, 2024, were $444 million, compared to $429 million in Q3 2023. For the nine months, total expenses were $1.3 billion.
Financial Performance Summary
| Financial Metric | Q3 2024 | Q3 2023 | 9M 2024 | 9M 2023 |
|---|---|---|---|---|
| Net Income | $157 million | $194 million | $383 million | $476 million |
| Interest Income | $1.3 billion | $1.2 billion | $3.7 billion | $3.4 billion |
| Interest Expense | $301 million | $267 million | $874 million | $749 million |
| Provision for Finance Receivable Losses | $512 million | $410 million | $1.5 billion | $1.3 billion |
| Other Revenues | $182 million | $185 million | $536 million | $548 million |
| Total Other Expenses | $444 million | $429 million | $1.3 billion | $1.2 billion |
Debt and Liquidity
As of September 30, 2024, OneMain's long-term debt was reported at $21.1 billion. The company had unencumbered receivables totaling $9.0 billion. Additionally, OneMain's liquidity is supported by various financing strategies, including secured and unsecured debt.
Stock Performance and Dividends
During the nine months ended September 30, 2024, OneMain declared cash dividends totaling $370 million, with a per-share dividend of $3.08. The stock repurchase program resulted in the repurchase of 680,709 shares for a total of $32 million.
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Article updated on 8 Nov 2024
Resources:
- OneMain Holdings, Inc. (OMF) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of OneMain Holdings, Inc. (OMF)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View OneMain Holdings, Inc. (OMF)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.