NEW YORK - OneMain Holdings, Inc. (NYSE:OMF) reported third quarter earnings that exceeded analyst estimates, sending shares up 1.35% in after-hours trading.
The consumer finance company posted adjusted earnings per share of $1.26, beating the consensus forecast of $1.14. Revenue came in at $1.16 billion, topping expectations of $1.13 billion.
"OneMain delivered excellent performance for the quarter with strong originations and revenue growth and continued improvements in credit trends," said Doug Shulman, Chairman and CEO of OneMain.
Net finance receivables grew 11% YoY to $23.1 billion. Consumer loan originations increased 13% to $3.7 billion compared to the prior year quarter.
The company's net interest income rose 8% YoY to $981 million, driven by higher average net finance receivables. However, the provision for finance receivable losses increased to $512 million from $410 million a year ago.
OneMain's net charge-off ratio for consumer loans was 7.33% in Q3, up from 6.68% in the same period last year. The 30+ day delinquency ratio ticked up slightly to 5.63% from 5.55% a year ago.
During the quarter, OneMain repurchased approximately 420,000 shares for $19 million. The company also declared a quarterly dividend of $1.04 per share.
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