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NEW YORK - On Friday, OneMain Holdings, Inc. (NYSE:OMF) reported second quarter adjusted earnings that exceeded analyst expectations, driven by improved credit performance and solid loan growth.
The company’s shares rose 1.48% in pre-market trading following the announcement.
The consumer lending specialist posted adjusted earnings per share of $1.45 for the second quarter, significantly beating the analyst estimate of $1.23. Revenue came in at $1.2 billion, slightly below the consensus estimate of $1.21 billion but up 10% from $1.1 billion in the same period last year.
OneMain’s managed receivables grew to $25.2 billion, representing a 7% increase from $23.7 billion in the second quarter of 2024. Consumer loan originations totaled $3.9 billion, up 9% from $3.6 billion in the prior year quarter.
Credit performance showed notable improvement, with the net charge-off ratio decreasing to 7.19% from 8.29% in the same quarter last year. The 30+ days delinquency ratio also improved to 5.17% compared to 5.45% a year ago.
"OneMain’s strong financial results in the first half of 2025 reflect the strength of our business model and our disciplined approach to underwriting," said Doug Shulman, Chairman and CEO of OneMain. "With solid growth in high-quality originations, continued credit improvement, disciplined balance sheet management and execution of our strategic initiatives, we continue to create shareholder value."
The company declared a quarterly dividend of $1.04 per share, payable on August 13, 2025, to shareholders of record as of August 4, 2025. During the quarter, OneMain repurchased approximately 460,000 shares of common stock for $21 million.
Capital generation, which the company defines as adjusted net income excluding the after-tax change in allowance for finance receivable losses, was $222 million for the second quarter, up from $136 million in the prior year period.
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