OneMain Q3 earnings strengthened by NII growth, hurt by Consumer & Insurance unit

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OneMain Holdings (NYSE:OMF) posted mixed Q3 results Wednesday as its net interest income grew during the quarter, but its Consumer & Insurance business got hit from higher net charge-offs and increases in the allowance for finance receivable losses.

Still, the stock advanced 2.9% in after-hours trading as Q3 C&I adjusted EPS of $1.51 topped the average analyst estimate of $1.33, but fell from $1.87 in Q2 and $2.37 in the year-ago quarter.

Net interest income was $895M in Q3, up from $886M in Q2 and $876M in Q3 2021.

Expenses totaled $390M at September 30, matching the Q2 figure and rising from $383M in Q3 of last year.

C&I adjusted pretax income of $250M fell from $311M in the prior quarter and $421M in Q3 2021.

Allowance for finance receivable losses rose to $2.26B from $2.12B in Q2 and $2.1B in Q3 2021

Net charge-offs on consumer and insurance personal loans were $290M in Q3 vs. $283M in Q2 and $165M a year earlier.

Conference call on Thursday at 8:30 a.m. ET.

Earlier, OneMain Holdings Non-GAAP EPS of $1.51 beats by $0.18, revenue of $1.07B in-line.