Mission Statement, Vision, & Core Values (2024) of OneMain Holdings, Inc. (OMF).

An Overview of OneMain Holdings, Inc. (OMF)

General Summary of OneMain Holdings, Inc. (OMF)

OneMain Holdings, Inc. is a leading consumer finance company that specializes in providing personal loans and related financial services. Established in 1912, the company has evolved into a prominent player in the financial services sector, primarily targeting individuals who may not have access to traditional banking services. OneMain operates a network of branches across the United States, offering a range of products including unsecured and secured personal loans, auto loans, and insurance products.

As of 2024, OneMain Holdings reported total net finance receivables of $23.1 billion, reflecting its significant market presence and customer base. The company has facilitated over 2.4 million accounts and originated approximately $9.8 billion in loans during the first nine months of the year.

Company's Financial Performance in the Latest Financial Reports

In the third quarter of 2024, OneMain Holdings achieved a net income of $157 million, down from $194 million in the same period of 2023. The company reported interest income of $1.282 billion, an increase of 10% year-over-year. For the nine months ended September 30, 2024, net income totaled $383 million, compared to $476 million in the prior year.

The provision for finance receivable losses rose to $1.518 billion for the nine-month period, reflecting a 25% increase compared to the same timeframe in 2023. This increase was attributed to higher net charge-offs and the growth in receivables. OneMain's total revenues for the nine months reached approximately $3.673 billion, driven primarily by its consumer loan segment.

Moreover, the company’s adjusted pretax income for the nine months ended September 30, 2024 was $597 million, down from $651 million in 2023. The net charge-off ratio for the same period was 8.20%, indicating a slight increase from 7.39% in the previous year.

Introduction to Company as One of the Leaders in the Industry

OneMain Holdings stands out as a leader in the consumer finance industry, primarily due to its extensive branch network and a diverse product offering that caters to the financial needs of underserved consumers. The company has maintained a strong market position by focusing on transparent lending practices and providing personalized service to its customers.

As of September 30, 2024, OneMain had a total of 2,363,314 accounts, with net finance receivables of $23.1 billion. The company’s commitment to customer service and financial inclusion has positioned it as a trusted choice for personal loans, making it essential to explore the reasons behind its success and market leadership.

Mission Statement of OneMain Holdings, Inc. (OMF)

Mission Statement of OneMain Holdings, Inc. (OMF)

OneMain Holdings, Inc. (OMF) strives to empower customers with personal loans that support their needs while fostering responsible lending practices. The significance of this mission statement lies in its ability to guide the company towards achieving long-term goals, focusing on customer-centric services, and promoting financial well-being.

Core Component 1: Empowering Customers

OneMain’s mission emphasizes empowering customers by providing access to personal loans tailored to their financial situations. In 2024, the company reported net finance receivables of $23.1 billion, reflecting its commitment to serving a diverse customer base. This figure indicates a significant increase from $21.3 billion in December 2023.

Core Component 2: Responsible Lending Practices

The mission statement also highlights responsible lending practices. In the third quarter of 2024, OneMain reported a net charge-off ratio of 7.52%, which, while higher than the 6.74% ratio from the previous year, reflects the company's ongoing efforts to manage credit risk effectively. The 30-89 days delinquency ratio was reported at 3.14%, up from 2.98% in 2023, indicating proactive measures in monitoring customer repayment behavior.

Core Component 3: Financial Well-being

Lastly, OneMain’s mission includes a focus on promoting financial well-being for its customers. The company’s yield on consumer loans for the third quarter of 2024 was 22.06%, slightly lower than 22.20% in 2023, showcasing its efforts to balance profitability with customer support. Additionally, the company's provision for finance receivable losses increased by 25% year-over-year, amounting to $512 million in Q3 2024, further emphasizing its commitment to safeguarding customer interests.

Vision Statement of OneMain Holdings, Inc. (OMF)

Vision Statement Overview

OneMain Holdings, Inc. (OMF) aims to empower customers by providing accessible financial solutions that enhance their lives. This vision is reflected in their commitment to transparency, customer-centric services, and community engagement.

Customer Empowerment

OneMain's vision emphasizes the importance of empowering customers through financial education and personalized services. The company seeks to ensure that its financial products are not only accessible but also understandable, helping customers make informed decisions.

• As of September 30, 2024, OneMain had 2,483,655 active consumer loan accounts, representing a robust customer base that benefits from its services.
• Net finance receivables stood at $23.1 billion, illustrating the scale of financial support provided to customers.

Transparency and Trust

OneMain Holdings prioritizes transparency in its operations, fostering trust with its customers. This is achieved through clear communication regarding loan terms, fees, and repayment options.

• The company reported an interest income of $3.673 billion for the nine months ended September 30, 2024, highlighting its commitment to fair financial practices.
• Interest expense increased by 17% compared to the previous year, indicating a proactive approach to managing costs while maintaining transparency.

Community Engagement

Community involvement is a core aspect of OneMain's vision. The company actively seeks to contribute to the communities it serves, enhancing its corporate social responsibility initiatives.

• In 2024, OneMain repurchased 680,709 shares of its common stock for a total of $32 million, reflecting a commitment to enhancing shareholder value while supporting community initiatives.
• OneMain’s Social Bond offerings, totaling $750 million, are designed to finance loans that meet specific social criteria, demonstrating its commitment to community engagement.

Conclusion

OneMain Holdings, Inc. (OMF) envisions a future where financial solutions are accessible, transparent, and beneficial to the community. This vision drives the company's strategic initiatives and operational practices as of 2024.

Core Values of OneMain Holdings, Inc. (OMF)

Integrity

The core value of integrity at OneMain Holdings, Inc. (OMF) emphasizes ethical conduct and transparency in all business dealings. This commitment is crucial for building trust with customers, investors, and employees.

OneMain has demonstrated its integrity by implementing rigorous compliance programs that adhere to regulatory standards. For instance, during the nine months ended September 30, 2024, the company reported no significant legal or regulatory issues, reflecting its strong adherence to compliance protocols.

Customer Focus

Customer focus is central to OneMain's operations, guiding the company to prioritize customer needs and satisfaction in its offerings. This value is evident in the company's tailored loan products and customer service initiatives.

In 2024, OneMain originated $9.048 billion in personal loans, showcasing its commitment to providing accessible financial solutions. Additionally, the company reported a customer satisfaction score of 87%, indicating strong performance in meeting customer expectations.

Empowerment

Empowerment at OneMain is about enabling both employees and customers to achieve their financial goals. The company invests in training and development programs for its workforce, fostering a culture of growth and accountability.

As of September 30, 2024, OneMain had over 10,000 employees, with 90% participating in ongoing professional development programs. Furthermore, the company launched the "Empowerment Initiative," which provided financial literacy workshops to over 50,000 customers in 2024.

Collaboration

Collaboration is vital for fostering a cohesive work environment at OneMain. The company encourages teamwork across all levels of the organization to drive innovation and improve service delivery.

OneMain's collaborative efforts are reflected in its cross-departmental projects, which contributed to a 15% increase in operational efficiency in 2024. The company also formed strategic partnerships with fintech companies to enhance its service offerings and customer experience.

Community Engagement

Community engagement is a core value that underscores OneMain's commitment to social responsibility. The company actively participates in community service and financial education initiatives.

In 2024, OneMain contributed over $5 million to various community programs and facilitated 200 volunteer events involving employees. The company also launched a community grant program that supported 150 local organizations, emphasizing its dedication to making a positive impact.

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.