OneMain Holdings Inc at Bank of America Financial Services Conference Transcript

The following is excerpted from the question-and-answer section of the transcript.

Question: Mihir Bhatia - Bank of America Securities - Analyst : So we've got a lot of companies at this conference. OneMain is a little different than others. So I thought before we get dive in a good place to start would be, one is just give us a lot on a quick overview of what, OneMain does just for people who want to introduce the company, what makes OneMain unique just an overview of the company.

Question: Mihir Bhatia - Bank of America Securities - Analyst : I do want to dig in a little bit on this point about being better credit. And I think one thing that, in my discussions with investors, and when I was learning about the company even maybe it was a little underappreciated that we talked to you is the branch network and how it helps with underwriting, collections, and basically your credit performance and comes move in like just the loan origination. Can you talk a little bit more about that? You mentioned you are the seventh largest branch network, right, if you were a bank. But how does that branch network actually help you in the business?

Question: Mihir Bhatia - Bank of America Securities - Analyst : That's great. Let's begin to the health of the non-prime customer a little bit. A lot of companies at this conference focused on the prime customers. So we've got a lot of the prime customer. But talk to us a little bit about the nonprime customer, consumer, if you will. What is the help right now? Your guidance calls for mid to high single-digit receivable growth. So you must be seeing something that's telling you now is the time to lean back in, grow the receivable book? What are you seeing? What's going on with and on.

Question: Mihir Bhatia - Bank of America Securities - Analyst : You mentioned the 2/3 at the start about 2/3 of customers being in the top two credit grades for the last two years. What do you think 2025 looks like?

Question: Mihir Bhatia - Bank of America Securities - Analyst : Given the tight underwriting posture, should the loss content in these loans be below your typical medium-term guidance, right? I guess the one thing that the question we hear from investors is if the -- if OneMain is tightening so much, they're only doing the top two grades, why is the loss outlook not materially better than its typical medium term, long term. guidance? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. FEBRUARY 12, 2025 / 4:20PM, OMF.N - OneMain Holdings Inc at Bank of America Financial Services Conference

Question: Mihir Bhatia - Bank of America Securities - Analyst : Great. I do want to talk the competitive environment. It has been quite favorable over the last couple of years However, we are starting to see particularly the online lenders side to really ramp up originations again. To a certain degree, it's in the prime category and things like that. What are you seeing from a competitive intensity standpoint, are you seeing some more competitive pressures? Or are you still very comfortable with this tight credit box and still delivering the growth?

Question: Mihir Bhatia - Bank of America Securities - Analyst : You mentioned the credit discipline. One example of that, that we saw was on the credit card side, right? When you first launched it in I think it was 2021, you had some goals. You saw the credit environment deteriorate. You were not shy about saying, hey, those goals, we're going to have to pull back from those goals a little bit. You still got growth in that business over the last year or so I guess just talk about the opportunity with the credit card product how early users interacting with it?

Question: Mihir Bhatia - Bank of America Securities - Analyst : You mentioned auto. I do want to hit that before we run out of time. So let's talk about auto a little bit. You've been in that business for a while. But for side for the company for three quarters now. Talk about how that acquisition has paid out in relation to your expectations, any learnings as you've worked through the integration.

Question: Mihir Bhatia - Bank of America Securities - Analyst : I don't want to be called this sort of the time. So why don't I open it up to the audience if anyone has questions because I do have a few more, but. Unidentified Participant Anything in the Trump agenda that excites you or that you're worried about for the company?

Question: Mihir Bhatia - Bank of America Securities - Analyst : Anyone else? So not seeing any. Very quickly, I do want to touch on your less today targets about a little bit more than a year past since you had laid those out. I think one of them was 1215 capital generation over the medium term.

Question: Mihir Bhatia - Bank of America Securities - Analyst : Still go to are you still on track?

Question: Mihir Bhatia - Bank of America Securities - Analyst : Maybe just we'll end with this one. As investors look at OneMain and as you meet with investors, you heard questions they're asking. What do you think is underappreciated? What are people missing? Because if you look at the valuation of OneMain compared to the returns it is lower than what you would expect. You have a company with this return profile. So what are investors missing? What is underappreciated in your view about OneMain?

Question: Mihir Bhatia - Bank of America Securities - Analyst : With that, I think we have time. So again, thank you so much for coming. Really appreciate it. Thank you.