OneMain Financial Reports Strong Q1 2025 Results, Capital Generation Up 25% YoY
OneMain Financial, a leading consumer finance company, reported strong first-quarter 2025 results, with capital generation up 25% year-over-year and adjusted earnings per share (EPS) of $1.72.
In its quarterly conference call transcript released on April 29, the company's Chairman and Chief Executive Officer, Doug Shulman, highlighted the continued positive credit trends, attributing the success to the decisive actions taken to tighten underwriting, optimize pricing, and find opportunities for growth without loosening the credit box.
"We feel great about the results in the first quarter, especially the continued positive credit trends," said Shulman. "The decisive actions that we took to tighten our underwriting, optimize pricing, and find opportunities for growth without loosening our credit box are now showing up in the bottom line, and have put us on an upward trajectory of capital generation and earnings."
OneMain Financial's strong originations growth of 20% (13% organic) contributed significantly to the company's success, driven by the continued constructive competitive environment, expanded use of granular data and analytics, and product innovation.
The company also reported a 12% year-over-year increase in receivables and total revenue growth of 10%. Its capital generation reached $194 million, up from $156 million in Q1 2024. The C&I adjusted EPS was $1.72, an increase of 19% from the same period last year.
OneMain Financial's credit performance also remained strong, with lower net charge-offs and improved delinquency trends. The company's 30-plus delinquency rate decreased by 49 basis points year-over-year to 5.08%, while C&I net charge-offs dropped 49 basis points to 8.2%.
"We now provide access to credit to over 3.4 million consumers," said Shulman. "That's up 14% from a year ago. A substantial portion of that growth is attributable to our BrightWay credit cards and OneMain Auto."
The company's strategic initiatives, including the expansion of its multiproduct platform, continue to drive long-term profitable growth. With its strong financial performance and commitment to customer value, OneMain Financial remains well-positioned for future success.
