The following is excerpted from the question-and-answer section of the transcript.
(Questions from industry analysts are provided in full, but answers are omitted - download the transcript to see the full question-and-answer session)
Question: Moshe Orenbuch - TD Cowen - Analyst
: So with that, we'll jump right in. Doug, can you give us just a little bit of a backdrop, your current view on the health of the consumer -- it's been
an issue that I think has been really different than other past cycles -- and how you're looking at that underlying health of the consumer?
Question: Moshe Orenbuch - TD Cowen - Analyst
: And could you talk just for a moment about what OneMain has done from an origination, from a product standpoint to respond to that environment?
Question: Moshe Orenbuch - TD Cowen - Analyst
: So maybe, Jenny, to flesh that out a little bit, could you talk a little bit about how the seasoning of that -- your front book, the loans originated since
2022, have performed and what that means for the credit losses going forward?
Question: Moshe Orenbuch - TD Cowen - Analyst
: Maybe just to take that one step further, you've got a long-term target, I think, still of a 6% to 7% loss. Can you talk about how that is -- over what
time frame do you think it will take to get there in a stable economy?
Question: Moshe Orenbuch - TD Cowen - Analyst
: Maybe just talk, Jenny -- talk just a little bit about the reserve level as you think about that for 2024 and perhaps longer term.
Question: Moshe Orenbuch - TD Cowen - Analyst
: Got you. Doug, one of the metrics or KPIs that you've championed is the idea of capital generation. Can you talk a little bit about, given what you're
seeing in terms of growth right now, how you're thinking about that capital generation and the use of it in your businesses internally? Capital
return, you did actually increase the dividend in the first quarter, but talk about that -- all of that in this current environment.
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JUNE 06, 2024 / 3:30PM, OMF.N - OneMain Holdings Inc at TD Cowen Inaugural Financial Services Summit
Question: Moshe Orenbuch - TD Cowen - Analyst
: Jenny, one of the hallmarks for OneMain has been a very well-developed funding base. Could you talk a little bit about what you're doing? I know
that you did a transaction just a couple of weeks ago. Just talk a little bit about that and the impact on interest expense near and intermediate
term.
Question: Moshe Orenbuch - TD Cowen - Analyst
: Got it. Doug, you alluded to the expansion into the auto business. Could you talk a little bit more about the purchase of Foursight, what that brings
to OneMain, and your vision for that business over the next three to five years?
Question: Moshe Orenbuch - TD Cowen - Analyst
: Okay. I probably should have mentioned this before. But if there are any questions from the audience, e-mail me, mosche
or I think there's a link that should be on your screens. That would probably be easier.
And Jenny, one of the things that Doug had mentioned a few moments ago was investing but also keeping in mind the current economic
environment. Just talk a little bit about that OneMain's ability to achieve positive operating leverage, operating efficiency. It's been a hallmark of
the company for quite some time, and how you're seeing that in the current environment?
Question: Moshe Orenbuch - TD Cowen - Analyst
: We only have a couple of minutes left. But Doug, you did talk about the auto business. The other significant area of expansion, perhaps a little more
slowly, is credit card. Talk about how you're seeing that in the current environment where credit has been a little challenged. You've got this whole
late fee thing, which, by the way, could have some positive implications for the core business, but talk about how you're managing the card business
in today's environment.
Question: Moshe Orenbuch - TD Cowen - Analyst
: Great. We're getting messages that were past our end time. I've got other questions, but I think we'll have to leave it there to just keep us on track.
But I do want to thank you both, Doug and Jenny, for being with us today and for helping make our conference what it is. So thanks so much.
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