OneMain Holdings Inc (OMF) 2023 Q1 法說會逐字稿

Welcome to the OneMain Financial First Quarter 2023 Earnings Conference Call and Webcast. Hosting the call today from OneMain is Peter Poillon, Head of Investor Relations. Today's call is being recorded. (Operator Instructions)

歡迎來到 OneMain Financial 2023 年第一季度收益電話會議和網絡直播。今天主持 OneMain 電話會議的是投資者關係主管 Peter Poillon。今天的通話正在錄音中。 （操作員說明）

It is now my pleasure to turn the call over to Peter Poillon. Sir, you may begin.

現在我很高興將電話轉給 Peter Poillon。先生，您可以開始了。

Thank you. Good morning, everyone, and thank you for joining us. Let me begin by directing you to Page 2 of the first quarter 2023 investor presentation, which contains important disclosures concerning forward-looking statements and the use of non-GAAP measures.

謝謝。大家早上好，感謝您加入我們。首先讓我引導您閱讀 2023 年第一季度投資者介紹的第 2 頁，其中包含有關前瞻性陳述和非 GAAP 措施的使用的重要披露。

The presentation can be found in the Investor Relations section of our website. Our discussion today will contain certain forward-looking statements reflecting management's current beliefs about the company's future financial performance and business prospects, and these forward-looking statements are subject to inherent risks and uncertainties and speak only as of today.

該演示文稿可在我們網站的投資者關係部分找到。我們今天的討論將包含某些前瞻性陳述，反映管理層當前對公司未來財務業績和業務前景的看法，這些前瞻性陳述受固有風險和不確定性的影響，僅在今天發表。

Factors that could cause actual results to differ materially from these forward-looking statements are set forth in our earnings press release. We caution you not to place undue reliance on forward-looking statements. If you may be listening to this via replay at some point after today, we remind you that the remarks made herein are as of today, April 25, and have not been updated subsequent to this call.

我們的收益新聞稿中列出了可能導致實際結果與這些前瞻性陳述存在重大差異的因素。我們告誡您不要過分依賴前瞻性陳述。如果您可能在今天之後的某個時候通過重播收聽此內容，我們提醒您，此處發表的評論截至今天，即 4 月 25 日，並且在本次電話會議後尚未更新。

Our call this morning will include formal remarks from Doug Shulman, our Chairman and Chief Executive Officer; and Micah Conrad, our Chief Financial Officer. After the conclusion of our formal remarks, we will conduct a question-and-answer session.

我們今天上午的電話會議將包括我們的董事長兼首席執行官道格·舒爾曼 (Doug Shulman) 的正式講話；和我們的首席財務官 Micah Conrad。在正式發言結束後，我們將進行問答環節。

I'd like to now turn the call over to Doug.

我現在想把電話轉給道格。

Thanks, Pete, and good morning, everyone. Thanks for joining us today. Today, I will cover our results for the quarter, our positioning in this uncertain macroeconomic environment and our strategic initiatives. Let me start with some highlights of our performance in the first quarter. We produced net income of $179 million and $179 million of capital generation in the quarter. We continue to see strong demand for our loan products. In what is typically a seasonally lower quarter for our lending business, we had $2.8 billion of originations despite our continued tight credit box. It is a very constructive competitive environment for us, and our strong balance sheet allows us to continue to provide responsible access to credit for our customers and make every loan that meets our risk-return criteria.

謝謝，皮特，大家早上好。感謝您今天加入我們。今天，我將介紹我們本季度的業績、我們在這種不確定的宏觀經濟環境中的定位以及我們的戰略舉措。讓我先從我們第一季度業績的一些亮點開始。本季度我們產生了 1.79 億美元的淨收入和 1.79 億美元的資本生成。我們繼續看到對我們的貸款產品的強勁需求。在我們的貸款業務通常季節性較低的季度，儘管我們的信貸箱持續緊張，但我們有 28 億美元的貸款。這對我們來說是一個非常有建設性的競爭環境，我們強大的資產負債表使我們能夠繼續為我們的客戶提供負責任的信貸渠道，並提供符合我們風險回報標準的每筆貸款。

Our top 2 risk grades those with the best credit quality and lowest risk customers made up approximately 65% of new customer originations in the first quarter as compared to mid-2021 levels of 30% to 40%. We're pleased with the opportunities we see to write higher credit quality loans at a pace that is modestly ahead of our expectations coming into the year.

與 2021 年年中 30% 至 40% 的水平相比，我們的前 2 位風險評級為信用質量最佳和風險最低的客戶，這些客戶在第一季度約佔新客戶來源的 65%。我們很高興看到有機會以略高於我們今年預期的速度寫出更高信用質量的貸款。

Turning to credit. Our 30 to 89 delinquency rate finished the quarter at 2.58%, 49 basis points below where we ended last quarter and in line with seasonal trends. Our underwriting remains quite conservative. This credit posture combined with favorable competitive dynamics at the higher end of our credit spectrum is leading to an increase in the overall credit quality of our portfolio.

轉向信貸。我們 30 至 89 的拖欠率在本季度結束時為 2.58%，比上一季度結束時低 49 個基點，符合季節性趨勢。我們的承保仍然相當保守。這種信用狀況與我們信用範圍高端的有利競爭動態相結合，導致我們投資組合的整體信用質量提高。

Loan net charge-offs in the quarter were 7.7%, in line with our expectations, aided by continued solid performance in late-stage collections and post charge-off recoveries. The adjustments we made to our credit box in the middle of last year are driving improved early delinquency performance as we progress through the year. While still elevated, our back book of loans which were originated before our credit tightening last summer has stabilized, and the loans we have originated post tightening are performing in line with expectations.

本季度貸款淨註銷率為 7.7%，符合我們的預期，這得益於後期收款和註銷後回收的持續穩健表現。我們在去年年中對我們的信用箱進行的調整正在推動我們在這一年取得進展時改善早期拖欠表現。雖然仍然處於高位，但我們在去年夏天信貸收緊之前發放的貸款已趨於穩定，而我們在收緊後發放的貸款表現符合預期。

As post tightening vintages become a bigger portion of the portfolio, we should see credit move toward more normalized levels. Nonetheless, we continue to closely monitor the environment in our portfolio and remain poised to adjust as needed.

隨著收緊後的年份在投資組合中所佔比例越來越大，我們應該會看到信貸朝著更加正常化的水平發展。儘管如此，我們將繼續密切關注我們投資組合的環境，並隨時準備根據需要進行調整。

Let me now talk for a minute about the macroeconomic environment. We're encouraged by the continued low unemployment numbers and what appears to be a reduction in the pace of inflation. Regardless, we continue to maintain a conservative credit posture as economic uncertainty persists.

現在讓我談談宏觀經濟環境。我們對持續的低失業率和通貨膨脹速度似乎有所放緩感到鼓舞。無論如何，由於經濟不確定性持續存在，我們將繼續保持保守的信貸態勢。

In light of recent developments in the banking sector, I want to stress that at OneMain, we have built our strategy and balance sheet to be durable across a range of macroeconomic environments.

鑑於銀行業最近的發展，我想強調的是，在 OneMain，我們已經建立了能夠在一系列宏觀經濟環境中保持持久的戰略和資產負債表。

This includes a diversified balance sheet with staggered maturities, a long liquidity runway, disciplined asset liability management and conservative underwriting. It is precisely in volatile environments like the one we are in now, that our strength is most evident and positions us to be a reliable and trusted partner for our customers, when they count on us most.

這包括具有交錯期限的多元化資產負債表、較長的流動性跑道、嚴格的資產負債管理和保守的承銷。正是在像我們現在所處的這樣多變的環境中，我們的實力最為明顯，並使我們在客戶最依賴我們的時候成為他們可靠和值得信賴的合作夥伴。

Turning to our BrightWay credit card. We are pleased with the continued progress. We are closely monitoring spend volume, balance builds, revolve rates and credit performance as we continue our rollout into very targeted segments of the nonprime market. Just like the posture we are taking with personal loans; we are maintaining a conservative credit box in our card product and are only taking on customers that we are confident will meet or exceed our return hurdles even if the economy were to worsen from here.

轉向我們的 BrightWay 信用卡。我們對持續的進展感到高興。隨著我們繼續向非優質市場的非常有針對性的細分市場推出產品，我們正在密切監控支出量、餘額構建、循環利率和信貸績效。就像我們對個人貸款的態度一樣；我們在我們的卡產品中保持一個保守的信用箱，並且只接受我們有信心會達到或超過我們的回報障礙的客戶，即使經濟從這裡惡化也是如此。

At quarter end, we had more than 160,000 card customers and $122 million of card receivables. And we're really pleased with the continued digital adoption as 99% of eligible customers who make fix on-time payments make their choice to decrease their interest rate or increase their line in our app, and over 85% of customers are making payments in the app.

截至季度末，我們擁有超過 160,000 名信用卡客戶和 1.22 億美元的信用卡應收賬款。我們對持續採用數字技術感到非常高興，因為 99% 的按時付款的合格客戶在我們的應用程序中選擇降低利率或增加額度，並且超過 85% 的客戶正在付款應用程序。

We remain confident that our approach to carefully scaling cards while maintaining conservative underwriting standards is the right approach to build a strong business for the future with excellent returns. We also continue to see strong origination volume and good credit performance in our secured lending distribution channels.

我們仍然相信，我們在保持保守的承保標準的同時謹慎擴展卡的方法是為未來建立強大業務並獲得豐厚回報的正確方法。我們還繼續在我們的擔保貸款分銷渠道中看到強勁的發起量和良好的信用表現。

Loans from these channels today totaled nearly $500 million of receivables. I'm also pleased with our continued pace of innovation, especially around digital tools for customers. For example, when delinquencies ticked up last year, we shifted more of our branch team members' time to collection activities.

今天來自這些渠道的貸款總計近 5 億美元的應收賬款。我也對我們持續的創新步伐感到滿意，尤其是圍繞為客戶提供的數字工具。例如，當去年拖欠率上升時，我們將更多分行團隊成員的時間轉移到收款活動上。

As we have invested in digital capabilities over the past several years, we not only have the ability to shift human resources to the highest value work depending on the week, month or year, but have given our team members and our customers more digital tools to improve efficiency, outcomes and customer experience.

由於我們在過去幾年中對數字能力進行了投資，我們不僅能夠根據周、月或年將人力資源轉移到價值最高的工作上，而且還為我們的團隊成員和客戶提供了更多數字工具，以提高效率、成果和客戶體驗。

Two great examples of this are click-to-pay link embedded in e-mails and enhanced 2-way texting. When we need to reach out to customers, we don't just call them. We can text or e-mail them and when customers receive a text or e-mail, they can then either engage with us via their channel of choice or complete a task like making a payment using a digital tool. These new digital capabilities are driving efficiency in our operations and a more seamless customer experience.

這方面的兩個很好的例子是嵌入在電子郵件中的點擊支付鏈接和增強的雙向短信。當我們需要聯繫客戶時，我們不只是打電話給他們。我們可以給他們發短信或電子郵件，當客戶收到短信或電子郵件時，他們可以通過他們選擇的渠道與我們互動或完成使用數字工具付款等任務。這些新的數字功能正在提高我們的運營效率和更加無縫的客戶體驗。

Let me end by touching on capital return. Our $4 per share annual dividend translates into an approximately 10% yield at our current share price. And during the first quarter, we repurchased about 700,000 shares for $27 million. As we discussed last quarter, we have moderated our share repurchases given the uncertain economic environment and our desire to maintain strategic optionality. That said, we remain a programmatic buyer of our shares and we'll adapt the pace of repurchases as the environment evolves.

最後讓我談談資本回報。我們每股 4 美元的年度股息相當於我們當前股價的約 10% 的收益率。在第一季度，我們以 2700 萬美元的價格回購了大約 700,000 股股票。正如我們上個季度所討論的那樣，鑑於不確定的經濟環境和我們保持戰略選擇權的願望，我們已經緩和了我們的股票回購。也就是說，我們仍然是我們股票的程序化買家，我們將隨著環境的發展調整回購的步伐。

I'll conclude here by reiterating that we feel very good about the strategic and competitive positioning of OneMain and the results for the quarter.

最後，我要重申，我們對 OneMain 的戰略和競爭定位以及本季度的業績感到非常滿意。

With that, let me turn the call over to Micah.

有了這個，讓我把電話轉給邁卡。

Thanks, Doug, and good morning, everyone. We had a solid quarter, and we continue to see positive credit trends following our August 2022 tightening.

謝謝，道格，大家早上好。我們有一個穩健的季度，在 2022 年 8 月緊縮之後，我們繼續看到積極的信貸趨勢。

Receivables have been supported by strong demand, and we raised another $750 million of funding in challenged markets. While the environment remains uncertain, we are well positioned for both the short and long term. Our first quarter net income was $179 million or $1.48 per diluted share, down from $2.38 per diluted share in the first quarter of 2022.

應收賬款得到強勁需求的支持，我們在充滿挑戰的市場中又籌集了 7.5 億美元的資金。雖然環境仍然不確定，但我們在短期和長期都處於有利地位。我們第一季度的淨收入為 1.79 億美元或每股攤薄收益 1.48 美元，低於 2022 年第一季度的每股攤薄收益 2.38 美元。

C&I adjusted net income was $177 million or $1.46 per diluted share, down from $2.36 per diluted share in the prior year quarter. And capital generation was $179 million for the quarter compared to $282 million a year ago.

C&I 調整後淨收入為 1.77 億美元或每股攤薄收益 1.46 美元，低於去年同期的每股攤薄收益 2.36 美元。本季度的資本生成為 1.79 億美元，而一年前為 2.82 億美元。

Keep in mind, these prior year variances reflect difficult comparisons against the stimulus-driven and historically low net charge-off levels we saw in the first quarter of 2022. We continue to see strong demand for our loan products supported by a constructive competitive environment and continued progress in new products and channels.

請記住，這些前一年的差異反映了與我們在 2022 年第一季度看到的刺激驅動和歷史最低淨沖銷水平的艱難比較。我們繼續看到在建設性競爭環境和支持下對我們的貸款產品的強勁需求新產品和新渠道不斷取得進展。

As a result, originations were $2.8 billion in the first quarter despite our tighter underwriting posture. Pricing continues to be stable and remains above 2021 levels. We have increased pricing in certain segments to offset the impact of a higher credit quality mix of originations, which generally has lower pricing.

因此，儘管我們收緊了承保態勢，但第一季度的發起金額為 28 億美元。定價繼續穩定並保持在 2021 年的水平之上。我們提高了某些細分市場的定價，以抵消較高信用質量的來源組合的影響，這些來源通常具有較低的定價。

Managed receivables were $20.6 billion, down slightly from the fourth quarter, which is typical in tax season, however, receivables growth was strong versus last year at $1.1 billion or 6%. We are now trending towards mid-single-digit growth in receivables for the full year. As a reminder, managed receivables includes $839 million of receivables sold through our forward flow agreements and $122 million of credit card balances.

管理的應收賬款為 206 億美元，比第四季度略有下降，這是典型的納稅季節，但應收賬款增長強勁，與去年相比增長了 11 億美元或 6%。我們現在的全年應收賬款正趨向於中個位數增長。提醒一下，管理的應收賬款包括通過我們的遠期流動協議出售的 8.39 億美元應收賬款和 1.22 億美元的信用卡餘額。

Let me now walk through the components of our first quarter C&I results. Interest income was $1.1 billion, flat to the prior year quarter. Yield was 22.3%, flat sequentially and down about 80 basis points year-over-year, reflecting higher 90-plus delinquency and the impacts of payment assistance we are providing to customers where needed. We continue to expect modest improvement in yield over the course of the year, driven by normal seasonal delinquency patterns, the impact of our credit tightening on portfolio delinquency and the pricing actions we've taken over the past year.

現在讓我來看看我們第一季度 C&I 結果的組成部分。利息收入為 11 億美元，與去年同期持平。收益率為 22.3%，環比持平，同比下降約 80 個基點，反映出 90 以上的拖欠率較高，以及我們在需要時向客戶提供付款援助的影響。在正常的季節性拖欠模式、我們的信貸緊縮對投資組合拖欠的影響以及我們在過去一年採取的定價行動的推動下，我們繼續預計年內收益率會適度改善。

Interest expense was $238 million, up $21 million or 9% versus the prior year, primarily from an increase in average debt to support our receivables growth. Interest expense as a percentage of receivables was 4.8%, up modestly from 4.6% a year ago despite what has been an historic increase in benchmark rates.

利息支出為 2.38 億美元，比上一年增加 2100 萬美元或 9%，這主要是由於平均債務增加以支持我們的應收賬款增長。儘管基準利率出現歷史性增長，但利息支出占應收賬款的百分比為 4.8%，較一年前的 4.6% 略有上升。

Changes in our interest expense will generally be gradual given our balanced debt mix and fixed rate long-duration maturities. Other revenue was $176 million, up $18 million or 11% from the prior year quarter. The increase was primarily attributable to higher yields on our investment portfolio and our cash balances.

鑑於我們平衡的債務組合和固定利率的長期期限，我們的利息支出的變化通常是漸進的。其他收入為 1.76 億美元，比去年同期增長 1800 萬美元或 11%。增加的主要原因是我們的投資組合和現金餘額的收益率更高。

Provision expense was $385 million, and included current period net charge-offs and a modest increase to our allowance. Policyholder benefits and claims expense was $47 million compared to $42 million in the first quarter of 2022.

撥備費用為 3.85 億美元，其中包括當期淨沖銷和津貼的適度增加。投保人福利和理賠費用為 4700 萬美元，而 2022 年第一季度為 4200 萬美元。

Let's turn to the C&I credit trends highlighted on Slide 7. 30 to 89 loan delinquency was 2.58% in the first quarter, down from 3.07% in December. This sequential reduction of 49 basis points is at the higher end of reductions we typically see in the first quarter. This is due in part to our post tightening originations growing as a share of our receivables. Post August 2022 vintages as of March 31, comprised 38% of total receivables compared to 27% at year-end.

讓我們來看看幻燈片 7 中突出顯示的 C&I 信貸趨勢。第一季度 30 至 89 的貸款拖欠率為 2.58%，低於 12 月份的 3.07%。這一連續減少 49 個基點處於我們通常在第一季度看到的減少的較高端。這在一定程度上是由於我們緊縮後的原始收入在我們的應收賬款中所佔的比例有所增加。截至 3 月 31 日，2022 年 8 月之後的年份占應收賬款總額的 38%，而年底為 27%。

On Slide 8, we show the delinquency performance of our September 2022 originations at 6 months on book and our fourth quarter '22 originations at 3 months on book. Both are performing very much in line with our expectations. And while we are encouraged to see new originations performing well, our seasoned vintages continue to track above pre-pandemic levels, and we are proactively working with customers through what continues to be a challenging time.

在幻燈片 8 上，我們顯示了我們 2022 年 9 月的賬面賬面 6 個月和 22 年第四季度賬面 3 個月的拖欠表現。兩者的表現都非常符合我們的預期。雖然我們很高興看到新產品表現良好，但我們的陳年葡萄酒繼續保持在大流行前的水平之上，並且我們正在積極與客戶合作，度過仍然充滿挑戰的時期。

Loan net charge-offs were $376 million or 7.7% for the quarter consistent with our expectations. Net charge-offs were supported by strong recoveries of 1.4% of average receivables. Recoveries remain above pre-pandemic levels of approximately 0.8%, driven by our strong operational performance as well as opportunistic sales of charged-off inventory.

本季度貸款淨沖銷額為 3.76 億美元或 7.7%，符合我們的預期。平均應收賬款 1.4% 的強勁回收率支持了淨註銷。在我們強勁的運營業績以及沖銷庫存的機會主義銷售的推動下，復甦率仍高於大流行前約 0.8% 的水平。

This quarter's recoveries include $11 million of proceeds from a sale. We are maintaining our full year net charge-off range of 7.0% to 7.5%. We expect net charge-offs to improve in the back half of the year given normal seasonal trends and improving credit quality within the portfolio.

本季度的回收包括 1100 萬美元的銷售收益。我們維持 7.0% 至 7.5% 的全年淨沖銷範圍。考慮到正常的季節性趨勢和投資組合內信貸質量的改善，我們預計今年下半年的淨沖銷將有所改善。

Turning to Slide 9. Wanted to quickly highlight an accounting standard update that impacted our CECL reserves in the quarter. The standard became effective on January 1 and eliminates the accounting guidance for troubled debt restructurings, including the specific reserving methodology for these loans.

轉到幻燈片 9。想要快速強調影響我們本季度 CECL 儲備的會計準則更新。該準則於 1 月 1 日生效，取消了問題債務重組的會計準則，包括這些貸款的具體準備金方法。

In accordance with the adoption of this new standard, our C&I allowance was reduced by approximately $20 million with that adjustment flowing directly to retained earnings. The reduction was then partially offset by an increase of $3 million that ran through provision expense in the first quarter income statement, for a net change of $17 million.

根據這一新標準的採用，我們的 C&I 津貼減少了約 2000 萬美元，該調整直接計入留存收益。然後，減少部分被第一季度損益表中的撥備費用增加 300 萬美元所抵消，淨變化為 1700 萬美元。

The economic factors used in our CECL reserves were unchanged from the prior quarter, and as a result, our reserve ratio was consistent at 11.6%. The C&I operating expenses were $362 million in the quarter, down $5 million sequentially and up a modest 4% year-over-year.

我們的 CECL 準備金中使用的經濟因素與上一季度沒有變化，因此我們的準備金率保持在 11.6%。本季度 C&I 運營費用為 3.62 億美元，環比下降 500 萬美元，同比小幅增長 4%。

Our operating expense ratio was 7.1% in the quarter, which is in line with our full year guide. We remain focused on cost discipline and even more so given the current market uncertainty. We're also focused on continuing to invest in growth initiatives for the future. The majority of our year-over-year expense growth came from investment in our new products and channels with our core expense up just 2% versus the first quarter of 2022.

我們本季度的營業費用率為 7.1%，與我們的全年指南一致。我們仍然專注於成本紀律，考慮到當前市場的不確定性，我們更是如此。我們還專注於繼續投資於未來的增長計劃。我們的大部分同比支出增長來自對新產品和渠道的投資，與 2022 年第一季度相比，我們的核心支出僅增長 2%。

Let's now turn to Slide 11 for an update on our balance sheet and our funding. One of the key strengths of OneMain is our strong balance sheet; characterized by a balance of funding sources, long duration staggered maturities and a strong liquidity profile. Our secured funding mix is currently 55% of our outstanding debt. The duration of our debt is just over 3 years. And our next significant unsecured maturity is not until 2024, having just paid off an $800 million maturity last month. The proactive management of our funding structure and our balance sheet has significantly reduced the impact of rising rates on our interest expense and has given us a great degree of issuance flexibility over the past year.

現在讓我們轉到幻燈片 11，了解我們資產負債表和資金的最新情況。 OneMain 的主要優勢之一是我們強大的資產負債表；其特點是資金來源平衡、期限長、期限交錯和流動性強。我們的擔保融資組合目前佔未償債務的 55%。我們的債務期限剛剛超過 3 年。我們的下一個重要無擔保到期日要到 2024 年，我們上個月剛剛還清了 8 億美元的到期日。我們對資金結構和資產負債表的積極管理顯著降低了利率上升對我們利息支出的影響，並在過去一年中為我們提供了很大程度的發行靈活性。

In February, we completed a 3-year revolving $750 million auto ABS issuance with an average coupon of 5.6%. This was below the 6.0% coupon from our December issuance even with an increase in advance rate from 73% to 95%. We saw strong support from both returning and new investors and the issuance was well oversubscribed demonstrating the confidence investors have in OneMain.

2 月，我們完成了 7.5 億美元的 3 年期循環汽車 ABS 發行，平均息票率為 5.6%。這低於我們 12 月發行的 6.0% 的息票，即使預付款率從 73% 增加到 95%。我們看到了回歸投資者和新投資者的大力支持，此次發行獲得了超額認購，表明投資者對 OneMain 充滿信心。

Our liquidity is supported by $7.4 billion of committed bank facilities spread across 15 geographically diverse and well-established financial institutions. These are typically 3-year commitments with staggered terms. And since the beginning of 2022, we renewed 9 of these 15 relationships, securing continued liquidity well into 2025 and 2026, and our capital adequacy remains strong with net leverage of 5.4x, down from 5.5x last quarter.

我們的流動性得到 74 億美元承諾銀行貸款的支持，這些銀行貸款分佈在 15 家分佈於不同地區且知名的金融機構中。這些通常是 3 年期交錯期限的承諾。自 2022 年初以來，我們續簽了這 15 項關係中的 9 項，確保流動性持續到 2025 年和 2026 年，我們的資本充足率保持強勁，淨槓桿率為 5.4 倍，低於上一季度的 5.5 倍。

With that, I'd like to turn the call back to Doug.

有了這個，我想把電話轉回道格。

Thanks, Micah. OneMain remains in a very strong competitive position as we continue to provide access to credit for our customers and to help them through this uncertain time. Our balance sheet is strong, enabling us to make every loan that meets our risk-return thresholds. Our back book remains stable and the loans we have originated post tightening are performing in line with expectations. We continue to invest in new products in our omnichannel platform, allowing us to better serve more customers over time. As we close, let me thank all of our talented and dedicated team members across the country who help our customers improve their financial well-being every day.

謝謝，邁卡。 OneMain 仍然處於非常強大的競爭地位，因為我們繼續為我們的客戶提供信貸渠道並幫助他們度過這個不確定的時期。我們的資產負債表穩健，使我們能夠發放符合風險回報閾值的每筆貸款。我們的背書保持穩定，我們在緊縮後發放的貸款表現符合預期。我們繼續在我們的全渠道平台上投資新產品，使我們能夠隨著時間的推移更好地服務於更多的客戶。在我們結束之際，讓我感謝我們全國各地所有才華橫溢、敬業奉獻的團隊成員，他們每天都在幫助我們的客戶改善他們的財務狀況。

With that, we'll open it up for questions.

有了這個，我們將打開它來提問。

(Operator Instructions) Our first question will come from John Hecht with Jefferies.

（操作員說明）我們的第一個問題將來自 Jefferies 的 John Hecht。

First question is, you sometimes have a detailed slide within the deck pertaining to guidance. I mean, I think you guys touched on various components of the guidance in your prepared remarks.

第一個問題是，您有時在甲板上有一張與指導有關的詳細幻燈片。我的意思是，我認為你們在準備好的發言中談到了指南的各個組成部分。

But I'm wondering, as you think about the details you provided with respect to guidance in the past, is there anything changed? Is there anything that's trending a little better or a little worse than expected? Or any update you can give in that regard?

但我想知道，當你思考你過去提供的有關指導的細節時，有什麼改變嗎？是否有任何趨勢比預期好一點或差一點？或者您可以在這方面提供任何更新？

John, it's Micah. Thanks for the question. We didn't have any material updates as you heard from the prepared remarks to any of the strategic priorities. We've kind of given a lot of direction in the past also as we get into this question-and-answer session. I'm happy to review what we said just to make sure everyone's clear and provide a little bit of textural commentary around the trends as well. On receivables growth, you heard us say we're trending towards mid-single digits as of today. We're seeing strong demand for applications. We see a very strong and accretive competitive environment and some of the payment dynamics in the portfolio are also supporting that mid-single-digit call out.

約翰，是邁卡。謝謝你的問題。正如您從準備好的對任何戰略優先事項的評論中聽到的那樣，我們沒有任何重大更新。在我們進入這個問答環節時，我們過去也給出了很多方向。我很高興回顧一下我們所說的，只是為了確保每個人都清楚，並提供一些關於趨勢的結構性評論。關於應收賬款增長，您聽到我們說截至今天我們正趨向於中等個位數。我們看到對應用程序的強勁需求。我們看到了一個非常強大且不斷增長的競爭環境，投資組合中的一些支付動態也支持了中個位數的調用。

On yield, we put out a 22.3% for the first quarter. That was, as you might remember, spot on to what I had guided to in the fourth quarter just in terms of where we thought we would be in the first. We do feel like we're hitting a bottom on yield and we expect yield to modestly improve as we go through the year here with seasonal impacts and trends of 90-plus.

在收益率方面，我們預計第一季度的收益率為 22.3%。那就是，正如你可能還記得的那樣，根據我們認為我們會在第一季度的位置，發現我在第四季度的指導。我們確實覺得我們的收益率正在觸底，我們預計隨著我們在這裡度過這一年的季節性影響和 90 多個趨勢，收益率將適度提高。

Our credit box adjustments and the post August originations becoming a bigger part of our portfolio as the year goes on and also some of the pricing increases that we've been making over the last year that we expect to start taking hold. So we do expect that modestly throughout the year to improve.

隨著時間的推移，我們的信用箱調整和 8 月後的起源成為我們投資組合的更大一部分，我們在過去一年中一直在進行的一些價格上漲預計將開始生效。因此，我們確實預計全年會有所改善。

Losses. We're still trending in the 7% to 7.5% range that we had put out last quarter. I think last quarter, we also talked about the kind of trajectory of first half, second half. We're still in that ballpark. We think first half is going to be mid- to high 7s with mid- to high 6s in the second half. And I think our delinquency results that you saw today support those expectations.

損失。我們仍然在上個季度提出的 7% 到 7.5% 的範圍內發展。我想上個季度，我們還談到了上半場、下半場的軌跡。我們還在那個球場。我們認為上半場將是中高 7 分，下半場將是中高 6 分。我認為您今天看到的我們的拖欠結果支持了這些期望。

And then interest expense and the OpEx ratio, we expect that to be relatively flat for the remainder of the year. So hopefully, that's helpful, gives you enough to kind of get a sense for where we're headed.

然後是利息支出和 OpEx 比率，我們預計今年剩餘時間將相對持平。希望這對您有所幫助，讓您足以了解我們的前進方向。

Yes. No, that's very helpful. And then second question, just thinking about the market most lenders have announced some type of pullback in terms of tightening of underwriting. And these periods historically, that kind of presented an advantage for someone like OneMain in the sense that you could be more selective yet see a higher-quality customer -- new customer. And I'm wondering, Doug, some of your -- the flavor of your remarks suggested you're maybe seeing that. But maybe can you talk about customer acquisition costs and your ability to attract a higher quality customer in this type of environment?

是的。不，這非常有幫助。然後是第二個問題，想想市場上大多數貸方已經宣佈在收緊承保方面進行某種類型的撤回。從歷史上看，這些時期為像 OneMain 這樣的人提供了一種優勢，因為你可以更有選擇性地看到更高質量的客戶——新客戶。我想知道，道格，你的一些 - 你的言論表明你可能看到了這一點。但也許你能談談客戶獲取成本以及你在這種環境中吸引更高質量客戶的能力嗎？

Yes, John, as I said, we feel really well positioned in this market. We built our balance sheet with a lot of liquidity so that we didn't have any -- we weren't forced to do any pullback because of funding, and we have plenty of funding that allows us to stay in the market and serve our customers.

是的，約翰，正如我所說，我們在這個市場上感覺非常好。我們建立了具有大量流動性的資產負債表，因此我們沒有任何 - 我們不會因為資金而被迫進行任何回調，而且我們有充足的資金讓我們能夠留在市場上並為我們的客戶服務顧客。

With that said, you know that we significantly tightened our credit box last summer. And post August, we cut out a lot of the lower performing credit. The business we're booking today will be profitable and meet our return hurdles even if the economy deteriorates. And I mentioned we've got just around 65% of our business is being booked in higher credit quality customers. That generally FICOs above 660. In 2021, that was 30% to 40%. And we're doing it without increasing cost of acquisition.

話雖如此，你知道我們去年夏天大幅收緊了我們的信貸箱。 8 月之後，我們削減了很多表現不佳的信貸。即使經濟惡化，我們今天預訂的業務也將盈利並滿足我們的回報障礙。我提到我們只有大約 65% 的業務被更高信用質量的客戶預訂。 FICO 通常高於 660。在 2021 年，這一比例為 30% 至 40%。而且我們在不增加購置成本的情況下這樣做。

I think we're just getting more of the market now. We're getting it, a, because we have a balance sheet that can book loans that meet our return hurdles. B, because we still are in the market marketing. And c, we've done a lot around just our product, our customer experience, our value proposition that we think -- even in a more benign macro environment, we think we'd still be getting our fair share of the market.

我認為我們現在正在獲得更多的市場。我們得到它，a，因為我們有一個資產負債表，可以登記滿足我們回報障礙的貸款。 B、因為我們還在做市場營銷。 c，我們已經圍繞我們的產品、我們的客戶體驗、我們認為的價值主張做了很多——即使在一個更良性的宏觀環境中，我們認為我們仍然會獲得我們公平的市場份額。

We'll just keep trying to have a great product provides value to customers and work with our customers over time, and we feel pretty good that we'll be able to grow the book. And as Micah said, we're trending a little higher in originations than we thought we would at the beginning of the year, and we don't see any reason for that to stop.

我們將繼續努力讓一個偉大的產品為客戶提供價值並隨著時間的推移與我們的客戶合作，我們感到非常高興我們能夠發展這本書。正如 Micah 所說，我們的起源趨勢比我們年初時預想的要高一些，而且我們看不出有任何理由停止這種趨勢。

Our next question will come from Kevin Barker with Piper Sandler.

我們的下一個問題將來自 Kevin Barker 和 Piper Sandler。

Just wanted to follow up on some of the comments around asset yields and just margins in general. You're pretty clear on asset yields continuing to improve due to seasonality through the year, but could you dig a little bit further in on the funding cost as well?

只是想跟進一些關於資產收益率和一般利潤率的評論。您非常清楚由於全年的季節性因素，資產收益率持續提高，但您能否進一步深入了解融資成本？

I know the rest of the industry is under a lot of pressure and you have more fixed rate debt. But could we see a little incremental improvement due to the pay down of your maturing debt in the back half of the year combined with issuance of some securitizations. Maybe just a little more detail on what's happening on the funding side.

我知道這個行業的其他人都承受著很大的壓力，而且你有更多的固定利率債務。但是，由於今年下半年到期債務的償還以及一些證券化的發行，我們能否看到一點漸進的改善。也許只是關於資金方面發生的事情的更多細節。

Yes. Sure, Kevin. I think you've kind of highlighted it properly the vast majority of our debt is fixed rate, which does give us an advantage with respect to some of the increases we've been seeing in funding costs generally across the market. I think we designed our balance sheet for exactly these times when things were great in 2021. I know I've said it before, but 2020 and 2021, we really went heavy into unsecured and long-duration debt when we were able to issue in the 3s. And that's really helping us today because the last 5 issuances we've done going back to the early part of 2022, they've all been ABS on the secured lending side, and kind of range right around, I would average, call it, an average of about 5%.

是的。當然，凱文。我認為你已經恰當地強調了這一點，我們的絕大多數債務都是固定利率的，這確實給我們帶來了一些優勢，因為我們在整個市場上看到的融資成本普遍增加。我認為我們正是為 2021 年情況良好的這些時期設計了資產負債表。我知道我之前說過，但是 2020 年和 2021 年，當我們能夠發行3s。這對我們今天真的很有幫助，因為我們完成的最後 5 次發行可以追溯到 2022 年初，它們都是有擔保貸款方面的 ABS，而且範圍就在附近，我平均稱之為，平均約5%。

So right around our average funding cost, and that's been an advantage for us. So you're seeing our interest expense not moving up dramatically. It was 4.6% a year ago, and it's 4.8% today. We think as we kind of move forward here because of the way we've structured this balance sheet, it just takes a while for changes in benchmark rates to really move through our interest expense.

所以就在我們的平均融資成本附近，這對我們來說是一個優勢。所以你看到我們的利息支出沒有大幅上升。一年前是 4.6%，今天是 4.8%。我們認為，由於我們構建資產負債表的方式，我們在某種程度上向前邁進，基準利率的變化只需要一段時間才能真正通過我們的利息支出。

Just to give you a data point, our next 12 months of issuance from today, forward to next March is only going to represent 10% of our average debt in 2024. So we feel really good about signaling kind of stable issuance, and it will tick up a little bit, but it's not going to be anything material. And I think that's a big advantage for us in terms of our NIM and our profitability.

只是給你一個數據點，我們從今天開始到明年 3 月的未來 12 個月的發行量只占我們 2024 年平均債務的 10%。所以我們對穩定發行的信號感到非常高興，而且它將稍微增加一點，但不會有任何實質性的影響。而且我認為，就我們的 NIM 和盈利能力而言，這對我們來說是一個很大的優勢。

We've talked a little bit about yield and how yield is going to gradually return as some of the 90-plus subsides, assuming a positive macro future. And our operating leverage is something that's incredibly strong as well for our profitability. We're -- when we add new loans, we're adding 2% OpEx instead of 7%. And so that helps us continue to generate the profitability we're used to seeing.

我們已經談了一些關於收益率以及收益率將如何隨著 90 多美元中的一些減退而逐漸回歸的問題，假設宏觀未來是積極的。我們的經營槓桿對於我們的盈利能力來說也是非常強大的。我們——當我們增加新貸款時，我們增加了 2% 的運營支出而不是 7%。因此，這有助於我們繼續產生我們習慣看到的盈利能力。

Great. And then a follow-up on the tightening of underwriting from August 2022, you've long targeted what, about a 6% to 7% net charge-off rate within the total book. But with the new originations being a much tighter underwriting, could we conceivably see structurally lower net charge-offs within the consolidated book or at least the new originations if we don't see a spike in unemployment or significantly more deterioration in the economy?

偉大的。然後是從 2022 年 8 月開始收緊承保的後續行動，你長期以來一直將目標定在總賬簿中大約 6% 到 7% 的淨沖銷率。但是，由於新發起的承保更加嚴格，如果我們沒有看到失業率飆升或經濟明顯惡化，我們是否可以想像在合併賬簿中看到結構性較低的淨沖銷或至少是新發起？

Yes. I think, Kevin, it's hard to say because that would require a little bit of prediction of future -- the future economy. Inflation still elevated, as you know. You can see from what we published on that page in our earnings deck, our September origination. So that was right after pretty major tightening in August.

是的。我認為，凱文，這很難說，因為這需要對未來——未來經濟進行一些預測。如您所知，通貨膨脹率仍然很高。您可以從我們在收益平台的該頁面上發布的內容中看到我們 9 月份的起源。所以那是在 8 月份相當大的緊縮政策之後。

Our September originations 6 months later are tracking very, very similar to 2019 levels, which is not the best benchmark in the world. It's 1 year, but it was the last period we had pre-pandemic. You can see the fourth quarter also tracking in line with those pre-pandemic levels. But we're still focused generally on our returns, as you know.

6 個月後，我們 9 月的起源與 2019 年的水平非常非常相似，這不是世界上最好的基準。現在是 1 年，但這是我們大流行前的最後一個時期。您可以看到第四季度也與大流行前的水平保持一致。但正如你所知，我們仍然普遍關注我們的回報。

And so when we adjusted our credit box, we're making sure that each of the loans and the cohorts of loans that we're originating are meeting that 20% return hurdle. And what you're seeing on those delinquency charts for vintage performance is really reflective of that.

因此，當我們調整我們的信貸箱時，我們要確保我們發起的每筆貸款和一批貸款都能達到 20% 的回報率要求。你在那些老式表現的拖欠圖表上看到的確實反映了這一點。

So we like the earnings on those loans. We'll have to see how the macro economy kind of moves forward from here. I would say if we do see a turndown in inflation and things kind of get a little bit back to normal without unemployment, we would expect to see some better credit performance as well. But that's all to be seen in the future here.

所以我們喜歡這些貸款的收益。我們必須看看宏觀經濟如何從這裡向前發展。我想說的是，如果我們確實看到通貨膨脹率下降，並且在沒有失業的情況下情況有點恢復正常，我們預計也會看到更好的信貸表現。但這一切都將在未來在這裡看到。

Our next question will come from Michael Kaye with Wells Fargo.

我們的下一個問題將來自富國銀行的 Michael Kaye。

The quarter-on-quarter change in loans held up better than I expected. I was wondering, are you seeing the impact of less seasonal payoffs during this year's tax season. I think I heard you mention something about positive payment dynamics in your remarks. Also if there are less seasonal payoffs that you're seeing? Is this good or bad? I mean, it's going to help net interest income as the loans are around longer, but could this be signs of upcoming consumer stress in the portfolio?

貸款的環比變化比我預期的要好。我想知道，您是否看到今年稅收季節季節性收益減少的影響。我想我聽到你在發言中提到了積極的支付動態。另外，如果您看到的季節性收益較少？這是好事還是壞事？我的意思是，這將有助於淨利息收入，因為貸款期限更長，但這是否是投資組合中即將到來的消費者壓力的跡象？

Yes. It's a good question, Michael. I did reference the payment dynamics and when I was walking through some of the expectations. We are seeing similar patterns from what we view as this is tax season. So we typically will see increased payments, just people are getting tax refunds. We see a reduction in delinquency and we were down 49 basis points quarter-over-quarter, which I said was -- tends to be at the higher end of what we typically see, but average refunds from tax season are around $2,900 versus they were $3,200 last year because of the trade tax credit, but very much in line with pre-pandemic levels.

是的。這是個好問題，邁克爾。我確實參考了付款動態以及當我完成一些期望時。從我們認為的稅收季節來看，我們看到了類似的模式。所以我們通常會看到付款增加，只是人們得到了退稅。我們看到拖欠率有所下降，而且我們比上一季度下降了 49 個基點，我說的是 - 往往處於我們通常看到的較高端，但稅收季節的平均退款約為 2,900 美元，而他們是由於貿易稅收抵免，去年 3,200 美元，但非常符合大流行前的水平。

So I would say from that perspective, we're seeing pretty consistent payment trends relative to our expectations, early payments and payoffs for seasoned accounts are down versus the last couple of years. We see this as a sign of the competitive environment.

所以我想說，從這個角度來看，我們看到相對於我們的預期的支付趨勢非常一致，與過去幾年相比，經驗豐富的賬戶的提前支付和回報有所下降。我們認為這是競爭環境的標誌。

The availability of credit and also effects from government stimulus, continuing to wear on that really influenced the last couple of years. I don't see it as a credit challenge where these are actually accounts that are accretive to our earnings and our yield and they're paying customers. So we view this as a positive.

信貸的可用性以及政府刺激措施的影響在過去幾年中繼續發揮作用，這確實影響了過去幾年。我不認為這是信用挑戰，因為這些賬戶實際上是增加我們的收入和收益的賬戶，而且他們是付費客戶。所以我們認為這是積極的。

Okay. The next question is about funding. The secured mix, as you outlined, is up to 55%, you got another $200 million maturing in the second half and another $1.3 billion in early 2024. I mean how much longer are you going to be comfortable going without raising any unsecured debt? You haven't raised unsecured debt in quite some time already (inaudible) want to be out of that market for too long. So maybe you could provide some more color on that.

好的。下一個問題是關於資金。正如您所概述的那樣，有擔保組合高達 55%，您還有 2 億美元在下半年到期，另外 13 億美元在 2024 年初到期。我的意思是，在不籌集任何無擔保債務的情況下，您還能承受多長時間？你已經有一段時間沒有籌集無擔保債務了（聽不清）想要離開那個市場太久。所以也許你可以提供更多的顏色。

Yes, sure. I mean, as I said before, we have an incredibly strong balance sheet. We -- liquidity is really important to us. We've got $7.5 billion of committed bank lines that we can flex when needed. Those are largely undrawn today. One of the kind of positive dynamics of the asset-backed securities as they do. We have revolving periods so we get some duration there. But once they also start to amortize. So as they are amortizing down, if we're putting on new ABS, it doesn't move that mix as much.

是的，當然。我的意思是，正如我之前所說，我們的資產負債表非常強勁。我們——流動性對我們來說真的很重要。我們有 75 億美元的承諾銀行額度，我們可以在需要時靈活使用。今天這些基本上沒有被提取。資產支持證券的一種積極動力就像他們所做的那樣。我們有循環週期，所以我們在那裡有一些持續時間。但是一旦他們也開始攤銷。因此，當他們正在攤銷時，如果我們使用新的 ABS，它不會移動那麼多。

We really feel like if we needed to issue nothing but ABS for the remainder of the year, we certainly could, without really having a big challenge in terms of our funding mix, our long bonds -- our long-duration bonds. As you've noted on our unsecured bonds, we -- it's been about 1.5 years since we issued there.

我們真的覺得，如果我們在今年剩餘時間只需要發行資產支持證券，我們當然可以，而不會在我們的融資組合、我們的長期債券——我們的長期債券方面真正面臨巨大挑戰。正如您在我們的無擔保債券中所指出的那樣，我們 - 自我們在那裡發行以來已經大約 1.5 年了。

We created that flexibility for ourselves in the way we structure the balance sheet. But in terms of the pricing, our longer-duration bonds are trading in the mid-8s as of yesterday, you kind of add a new issue concession and convexity premiums for some of the deeper dollar discounts on the complex. And you're probably in the 9 areas. So we will be opportunistic if we see an opportunity and an opening for unsecured, but we have no real need to do so. We feel pretty comfortable where we are.

我們在構建資產負債表的方式中為自己創造了這種靈活性。但就定價而言，截至昨天，我們的長期債券在 8 年代中期交易，你可以為該綜合體的一些更深的美元折扣添加新的發行讓步和凸溢價。你可能在這 9 個區域。因此，如果我們看到機會和無擔保的機會，我們將是機會主義的，但我們沒有真正需要這樣做。我們在這裡感覺很舒服。

Our next question will come from Moshe Orenbuch.

我們的下一個問題將來自 Moshe Orenbuch。

Great. I was wondering both Doug and Micah, whether there's some way to think about like what you need to see before you would expect to have a kind of an increase in originations or be able to underwrite more of those applications that are coming your way and how to think about maybe as give you the second part of the question at the same time, how to think about that 5% decline year-on-year? Or what's the amount that you -- if credit had normalized that number, how much higher do you think that number could be?

偉大的。我想知道 Doug 和 Micah，是否有某種方法可以考慮在您期望增加發起或能夠承保更多即將到來的應用程序之前需要看到什麼，以及如何想一想也許同時給你第二部分的問題，怎麼去想那5%的同比下降？或者你的金額是多少——如果信貸使這個數字正常化，你認為這個數字會高多少？

Yes. Look, Moshe, if I'm interpreting your question to be like, what would it take for us to open up our credit box. I -- look, one, I'd say, as we mentioned in our remarks, we still have an uncertain macro picture. Clearly, unemployment is a bright spot, low unemployment. And it looks promising that inflation is starting to moderate, but inflation is definitely still impacting customers. I think we've now shown in 2 quarters that are post tightening originations are performing as expected. And I think we need to see a couple more months of that just to feel comfortable that, that trend is staying. We're super careful stewards of our shareholders' capital.

是的。聽著，Moshe，如果我把你的問題解釋成這樣，我們需要什麼才能打開我們的信用箱。我 - 看，一個，我會說，正如我們在評論中提到的，我們仍然有一個不確定的宏觀圖景。顯然，失業率是一個亮點，失業率很低。通貨膨脹開始放緩看起來很有希望，但通貨膨脹肯定仍在影響客戶。我認為我們現在已經在 2 個季度中表明緊縮後的起源正在按預期表現。而且我認為我們需要再看到幾個月才能感到舒服，這種趨勢會持續下去。我們是股東資本的超級謹慎管家。

And we've said before that we're going to be conservative with our balance sheet and conservative with underwriting, and we're going to be innovative and aggressive when it comes to product innovation, customer experience, digital, et cetera.

我們之前說過，我們將在資產負債表和承保方面保持保守，在產品創新、客戶體驗、數字化等方面，我們將保持創新和積極進取。

We very well may be leaving money on the table, but we're okay with that, given the uncertainty in the environment. I think if we started to open up it's not going to be a big bang where we say cost is clear, let's just open up the credit box. It's going to be by state, depending on what we can charge, by risk rate of customer. We now have a set of products. We have a secured and an unsecured loan. We have 2 flavors of credit card, 1 with a fee, 1 without a fee.

我們很可能會把錢留在桌面上，但考慮到環境的不確定性，我們對此沒有意見。我認為如果我們開始開放它不會是我們說成本很明顯的大爆炸，讓我們打開信用箱。它將按州，取決於我們可以收取的費用，按客戶的風險率。我們現在有一套產品。我們有擔保貸款和無擔保貸款。我們有 2 種信用卡，一種收費，一種免費。

And so we'd be looking at pockets. What I will tell you is we are always booking loans right at the margin of loans that don't meet our credit box in very small quantities that we test, we call it weather vane. So we've always got loans out in the market to see how they're performing just below our credit standards. And that data helps tell us kind of how are things performing. It's not material to our book, but it's just part of how we go.

所以我們會看口袋。我要告訴你的是，我們總是在我們測試的非常小的數量不符合我們的信貸箱的貸款邊際預訂貸款，我們稱之為風向標。因此，我們總是在市場上獲得貸款，看看它們的表現如何略低於我們的信用標準。這些數據有助於告訴我們事情的表現。這對我們的書來說並不重要，但這只是我們前進的一部分。

So look, what I would say is, right now, we're -- we like the market share we're picking up. And as we mentioned, originations are above expectations already with a tight credit box I think we're just going to have to keep watching our book and the economy, and we'll move when -- we'll open up the box more when we feel comfortable doing it, but it's not right now.

所以看，我要說的是，現在，我們 - 我們喜歡我們正在獲得的市場份額。正如我們所提到的，在信貸緊縮的情況下，起源已經超出預期，我認為我們將不得不繼續關注我們的賬簿和經濟，我們會在什麼時候採取行動——我們會在什麼時候打開更多的盒子我們覺得這樣做很舒服，但現在還不行。

Got it. Maybe just a quick follow-up. You mentioned, Mike, that half the expense growth is coming from new initiatives. Can you just give us like the biggest -- where the biggest dollar investments are going? And is that going to -- as you look forward, is that going to be the same?

知道了。也許只是一個快速跟進。邁克，你提到一半的費用增長來自新舉措。你能告訴我們最大的 - 最大的美元投資去向嗎？這會 - 正如你期待的那樣，這會是一樣的嗎？

Yes. Thanks, Moshe. It's mostly -- I mean, I think the answer is quite simple, frankly. It's really coming from our credit card initiative and the acquisition costs and the servicing costs associated with building out that business. And the same is true for our secured distribution channels. Again, acquisition costs, servicing costs and building out the folks and infrastructure associated with those 2 businesses. That's the majority of the investment that I called out year-over-year.

是的。謝謝，摩西。這主要是 - 我的意思是，我認為答案很簡單，坦率地說。它實際上來自我們的信用卡計劃以及與建立該業務相關的購置成本和服務成本。我們的安全分銷渠道也是如此。同樣，收購成本、服務成本以及建立與這兩項業務相關的人員和基礎設施。這是我逐年呼籲的大部分投資。

Our next question will come from David Scharf with JMP Securities.

我們的下一個問題將來自 JMP Securities 的 David Scharf。

I wanted to follow up a little on just -- not just the competitive dynamic, but maybe how to think about or how you're thinking about your target market kind of longer term? And specifically, we're obviously kind of appropriately focused on all the cyclical matters right now. But as your funding profile, it continues to improve structurally. I mean as your overall cost of funding on a comparative basis continues to get better. Is the 660 and above increase of your mix? Is that just something we should think of as cyclically as we typically do when you tighten? Or are you starting to feel that you can meet your longer-term return requirements by actually moving up the credit spectrum longer term?

我想跟進一點 - 不僅僅是競爭動態，但也許如何考慮或你如何考慮你的目標市場的長期目標？具體來說，我們現在顯然適當地關注所有周期性問題。但作為你的資金狀況，它在結構上繼續改善。我的意思是，在比較的基礎上，你的總體融資成本繼續變得更好。 660及以上是你混的增幅嗎？這只是我們應該像收緊時通常做的那樣週期性地考慮的事情嗎？還是您開始覺得可以通過長期提高信用範圍來滿足您的長期回報要求？

Yes. Look, it's a good question. 660 plus has always been a part of our business. Call it, the lower end of prime, higher end of near prime, however you want to define it. And we like that business. As you mentioned, we also think we have some competitive advantages in our balance sheet. One of the reasons we built out a whole loan program isn't because we needed it for funding, but we wanted to build the pipes and get the expertise of having an off-balance sheet option for the distribution that we have that's quite powerful.

是的。看，這是個好問題。 660 plus一直是我們業務的一部分。稱它為素數的低端，接近素數的高端，無論你想如何定義它。我們喜歡這項業務。正如你提到的，我們也認為我們在資產負債表上有一些競爭優勢。我們建立整個貸款計劃的原因之一不是因為我們需要它來提供資金，而是我們想建立管道並獲得擁有資產負債表外分配選項的專業知識，我們擁有的分配非常強大。

As you mentioned, we're in a cycle now. So it's always hard to predict what it looks like coming out of a cycle and how much competition will be there coming out of a cycle. But I could envision this being a higher percentage than it was historically, especially given now that we have balance sheet optionality in different places to put this business.

正如你提到的，我們現在處於一個循環中。所以總是很難預測一個週期會是什麼樣子，以及一個週期會有多少競爭。但我可以預見這比歷史上的百分比更高，特別是考慮到現在我們在不同的地方有資產負債表的可選性來放置這項業務。

So we know how to serve this customer. Generally, it's unsecured loans. We've been working on our cost structure. And as Micah said, we have a lot of operating leverage. And between efficiencies in our branches, efficiencies in our central operation and our new digital capabilities we've got a very good cost structure that we can service potentially lower-yielding assets over the long run.

所以我們知道如何為這個客戶服務。一般都是無抵押貸款。我們一直在研究我們的成本結構。正如 Micah 所說，我們有很多運營槓桿。在分支機構的效率、中央運營的效率和新的數字功能之間，我們擁有一個非常好的成本結構，從長遠來看，我們可以為潛在的低收益資產提供服務。

So it's a long way of saying that it's certainly a possibility. We're not going to declare that we're going to keep this kind of market share as the cycle moves. We're getting these customers now. We're serving them well. We're clearly meeting a need. It's clearly profitable for us. And so -- and we've done it for a long time. Exactly what part of the book, it's going to be over the long run. I think will depend on how we evolve in the market evolves.

因此，要說這肯定是有可能的還有很長的路要走。隨著周期的變化，我們不會宣布我們將保持這種市場份額。我們現在正在吸引這些客戶。我們很好地為他們服務。我們顯然正在滿足需求。這對我們來說顯然是有利可圖的。所以——我們已經做了很長時間了。究竟是什麼部分的書，它會從長遠來看。我認為將取決於我們如何在市場中進化。

No, that's very helpful. I mean it sounds like lost in all the cyclical handwringing is potentially your TAM may be increasing over the long haul. As a quick follow-up on card balances. I know Q1, obviously, we typically see paydowns with tax refund season or in this case, kind of modest growth for a new product. It only increased about $15 million sequentially. Are you still comfortable with that year-end $400 million to $500 million balance target that I think you provided last call.

不，這非常有幫助。我的意思是，這聽起來像是在所有周期性的絞盡腦汁中迷失了方向，從長遠來看，您的 TAM 可能會增加。作為卡餘額的快速跟進。我知道第一季度，顯然，我們通常會看到退稅季節的回報，或者在這種情況下，新產品的適度增長。它僅按順序增加了約 1500 萬美元。您是否仍然對我認為您在上次電話會議中提供的年終 4 億至 5 億美元的餘額目標感到滿意。

Yes, I think it will be in that range. We're having a very targeted and disciplined rollout. And our goal this year for cards is to prove out the model, make sure we're really focused on spend patterns, usage, credit performance, digital engagement. And the plan was always to get more data and the second half would be a bigger rollout. So we're on plan with the rollout now. With that said, we're watching the environment. We're going to be super careful. We're going to keep a tight credit box for now.

是的，我認為它會在那個範圍內。我們正在進行非常有針對性和紀律嚴明的部署。我們今年的卡片目標是證明模型，確保我們真正專注於消費模式、使用情況、信用表現、數字參與。計劃始終是獲取更多數據，下半年將進行更大規模的推廣。所以我們現在正在計劃推出。話雖如此，我們正在觀察環境。我們會非常小心。我們現在要保持一個嚴格的信貸箱。

And so we're really not managing it to growth. As we mentioned, receivables overall, we think, are going to be in the top end of our guidance, which is in the mid-single digits. Exactly how much cards contributes will depend on what we see for the next few months and the decisions we make about the second half of the year and how big of a rollout we do. But we think it will be somewhere in that range.

所以我們真的沒有管理它以實現增長。正如我們所提到的，我們認為整體應收賬款將處於我們指導的頂端，即中個位數。卡片的具體貢獻有多大取決於我們對接下來幾個月的觀察、我們對下半年做出的決定以及我們推出的規模。但我們認為它將在該範圍內的某個地方。

Our next question will come from Rick Shane with JPMorgan.

我們的下一個問題將來自摩根大通的 Rick Shane。

Look, when we think back about last year, one of the conclusions is that not only is your customer base sensitive to employment but they're also extremely sensitive to inflation. We've seen gas prices decline very significantly since midyear last year. we're starting to see some other prices come down. Is there anything that you're seeing in terms of the portfolio that suggests that the reversal of some of those inflated prices is having an impact on credit.

看，當我們回顧去年時，其中一個結論是您的客戶群不僅對就業敏感，而且對通貨膨脹也極其敏感。自去年年中以來，我們已經看到天然氣價格大幅下跌。我們開始看到其他一些價格下降。就投資組合而言，您是否看到任何跡象表明其中一些膨脹價格的逆轉正在對信貸產生影響。

Yes, Rick, it's Micah. It's a great question. I think it's 1 that's challenging to answer. I think the dynamics year-over-year on bank account balances also has something -- there's something at play there, where customers may have still had some inflated bank account balances, particularly in the beginning of last year from all the stimulus. So as that has kind of run down and inflation continues to be a challenge for them. We really haven't seen any big change in the dynamics. I mean, Doug mentioned the weather vane testing we're doing. So we are still seeing some challenges with the non-prime consumer.

是的，瑞克，是邁卡。這是一個很好的問題。我認為 1 很難回答。我認為銀行賬戶餘額的同比動態也有一些東西——那裡有一些東西在起作用，客戶可能仍然有一些誇大的銀行賬戶餘額，特別是在去年年初的所有刺激措施中。因此，隨著這種情況有所減少，通貨膨脹對他們來說仍然是一個挑戰。我們真的沒有看到動態有任何大的變化。我的意思是，Doug 提到了我們正在進行的風向標測試。因此，我們仍然看到非主要消費者面臨一些挑戰。

We're not enough -- some green shoots maybe but not enough to cause us to increase or open up our credit box at all. And I think we need to keep remembering also that even if inflation is only up 5%, that's on top of last year's high single digits inflation rate. So these things are building on themselves year-over-year. And it's just -- it's our customers finding challenges making ends meet with their expenses. And so -- we do see some positive signs here. As we've talked about, our new originations are performing in line with expectations. Our back book has stabilized. So we saw delinquency increase pretty dramatically in May and June of last year.

我們還不夠——可能會有一些萌芽但不足以讓我們增加或完全打開我們的信貸箱。而且我認為我們還需要記住，即使通貨膨脹率僅上升 5%，那也是在去年高個位數的通貨膨脹率之上。因此，這些事情逐年增加。這只是——我們的客戶發現了維持生計的挑戰。所以——我們確實在這裡看到了一些積極的跡象。正如我們所談到的，我們的新產品表現符合預期。我們的背書已經穩定下來。因此，我們看到去年 5 月和 6 月的拖欠率急劇上升。

And since then, it's kind of just been following seasonal trends. So -- we feel good about the book going forward in terms of what we've been able to construct. And we're just going to have to keep watching this thing, but I think the net here in terms of the individual consumer, they're still challenged with inflation.

從那時起，它就一直在追隨季節性趨勢。所以——就我們能夠構建的內容而言，我們對這本書的發展感到滿意。我們將不得不繼續關注這件事，但我認為就個人消費者而言，他們仍然面臨通貨膨脹的挑戰。

Got it. Okay. And look, I have my own views on the credit card business. But one advantage perhaps is that you are seeing transaction level data for your customers. I'm curious, 2 things. One, are there insights that you are gathering from that transaction level detail that circles back to your broader lending? And second, can you share any sense of what percentage of spending for your customers is at the pump?

知道了。好的。看，我對信用卡業務有自己的看法。但一個優勢可能是您可以看到客戶的交易級別數據。我很好奇，有兩件事。第一，您是否從交易級別的詳細信息中收集了一些可以回溯到更廣泛的貸款的見解？其次，你能分享一下你的客戶支出的百分比是多少嗎？

Yes, Rick. First of all, on insights, we've always said that the credit card business is quite complementary and strategic and fits in well with our business model for a number of reasons. One is we get a daily transactional product that matches our more episodic larger loan that gets paid off over time and a credit card customer could stay with us longer.

是的，瑞克。首先，就洞察力而言，我們一直說信用卡業務具有很強的互補性和戰略性，並且出於多種原因非常適合我們的業務模式。一個是我們獲得了一種日常交易產品，與我們更頻繁的大額貸款相匹配，這些貸款會隨著時間的推移而得到償還，信用卡客戶可以在我們這里呆得更久。

Two is we think we have a lower cost of acquisition because we already have current and former customers to save that cost. And then third is what you mentioned, which is we get daily transactional data. What I would say is yes, we're getting insights, not enough yet -- not enough yet and not either volume or length of time to put into our credit models yet. But we're always adding new data to our loan credit models.

二是我們認為我們的收購成本較低，因為我們已經擁有現有和以前的客戶來節省該成本。然後第三是你提到的，這是我們每天獲得的交易數據。我要說的是，是的，我們正在獲得洞察力，但還不夠——還不夠，而且還沒有足夠的數量或時間長度來投入我們的信用模型。但我們一直在為我們的貸款信用模型添加新數據。

And so for instance, a couple of years ago, we started collecting bank account data as a way of doing income verification, which is now part of our credit models. For our lending business, I think eventually, this transactional data in credit cards will be able to use in our lending business, obviously, data from our lending business, we can use for the credit card. I think on -- I don't have it at the top of my fingers the -- exactly what's in the pump, but -- or the percentage of credit card that's used at gas stations. But the top 3 spend patterns are groceries, gas and dining, which is exactly what we had hoped for. Again, the credit card is providing a utility that the loan doesn't provide, which means we mean more to our customers now than we did before.

例如，幾年前，我們開始收集銀行賬戶數據作為進行收入核實的一種方式，現在這已成為我們信用模型的一部分。對於我們的貸款業務，我認為最終，信用卡中的交易數據將能夠用於我們的貸款業務，顯然，來自我們貸款業務的數據，我們可以用於信用卡。我想——我的手指頭上沒有——泵裡到底有什麼，但是——或者在加油站使用的信用卡的百分比。但前 3 大支出模式是雜貨、加油站和餐飲，這正是我們所希望的。同樣，信用卡提供了貸款無法提供的效用，這意味著我們現在對我們的客戶來說比以前更重要。

Our last question will come from Vincent Caintic with Stephens.

我們的最後一個問題將來自 Vincent Caintic 和 Stephens。

First 1 on the pre and post tightening loans. So just wondering if you could compare (inaudible) more detail about understanding that the post tightening loans are going to be over 2/3 of the portfolio by the end of this year, if there's anything you can help us with understanding what the impact of that would be, say, for instance, what the underwriting losses are or what the yields are for those loans?

第 1 條關於貸款緊縮前後。所以只是想知道你是否可以比較（聽不清）更多關於理解到今年年底收緊後貸款將超過投資組合的 2/3 的細節，如果有什麼可以幫助我們了解影響是什麼例如，這些貸款的承保損失是多少或收益率是多少？

I would say for the -- if we're tracking right around kind of '19 levels on those vintage -- those vintages as we put on that -- as we showed you on that page, that generally translates to about a 6%, 6.5% loss rate. All right? But that's on average and over time, a portfolio that's constructed that way that remains that way for the entire life. So -- but hopefully, that gives you a little general direction as to where that is heading.

我想說的是——如果我們正在跟踪那些年份的 19 年左右的水平——我們放的那些年份——正如我們在該頁面上向您展示的那樣，通常轉化為大約 6%， 6.5% 的損失率。好的？但平均而言，隨著時間的推移，以這種方式構建的投資組合將在整個生命週期中保持這種方式。所以 - 但希望這能為您提供一些關於前進方向的總體方向。

I think as this portfolio of front book becomes a bigger part of our overall portfolio, we should start to see delinquency levels moving back down towards those 2019, 2018 levels. But I want to also caution you, I think there's just so many dynamics that go on in a given year around delinquency and growth of receivables. So it's hard to have just the perfect year to compare to. But we do anticipate at least some modular decline in delinquency back down to those normal levels. If the economy stays the way it is, if our underwriting stays the way it does, the back book continues to be stable and we continue to see that '19 type performance from our newer vintages.

我認為，隨著前台簿的這一組合成為我們整體投資組合中更大的一部分，我們應該開始看到拖欠水平回落至 2019 年、2018 年的水平。但我也想提醒你，我認為在給定的一年中，圍繞應收賬款的拖欠和增長會發生很多動態。所以很難有完美的一年來比較。但我們確實預計拖欠率至少會出現一定程度的模塊化下降，回到正常水平。如果經濟保持原樣，如果我們的承保保持原樣，則後備賬簿將繼續保持穩定，我們將繼續看到我們較新年份的 19 年類型的表現。

Okay. Great. And kind of a related follow-up, when I think about return on receivables for OneMain and there being a lot of moving pieces recently. Of course, cost of funds seem to maybe be going up, having -- moving upmarket, tightening the portfolio, also getting to credit card.

好的。偉大的。還有一種相關的跟進，當我考慮 OneMain 的應收賬款回報時，最近有很多移動件。當然，資金成本似乎可能正在上升，有——轉向高端市場，收緊投資組合，也開始使用信用卡。

I think this quarter, the return on receivables was 3.7%. I just wanted to explore whether the -- I guess, the long-term return on receivables. Is that what we should be looking for as all these moving pieces are happening?

我認為本季度的應收賬款回報率為 3.7%。我只是想探討是否——我猜，應收賬款的長期回報。這是我們應該尋找的，因為所有這些移動的部分正在發生嗎？

Yes. I think there's been a lot going on over the last few years. So I would say our RORs for 2020, 2021 and 2022 were certainly not what we would consider to be normal, but also on the first quarter because of the seasonally high loss rate tends to be on the lower end for cap gen ROR simply because of having a loss rate of 7% on loans in the quarter.

是的。我認為過去幾年發生了很多事情。所以我想說我們 2020 年、2021 年和 2022 年的 ROR 肯定不是我們認為正常的，但在第一季度也是如此，因為季節性的高損失率往往處於 cap gen ROR 的低端，僅僅是因為本季度的貸款損失率為 7%。

I think as we go through the year, again, I gave you a little bit of guidance at the beginning of the Q&A session here and where we thought some of the trends we're heading with an expectation of losses dropping by 100 basis points in each of the third and fourth quarter relative to what we think the first half looks like. That certainly right there is after tax about 70 basis points of ROR on top of what we're seeing.

我認為，在我們度過這一年的過程中，我在問答環節開始時再次給了你一些指導，我們認為我們正在走向的一些趨勢預計損失會下降 100 個基點第三季度和第四季度的每一季度都與我們認為的上半年相比。在我們所看到的之上，稅後 ROR 大約有 70 個基點。

So I don't think -- I wouldn't say that anything we're seeing has changed our views on the long-term health of the business and our profitability. We've got a lot of levers here. We certainly can tighten credit really quickly. We're seeing good demand. We're competitive in the marketplace. We've got the stability of our interest expense. And I keep coming back to it, but our fixed cost base and our ability to add loans at a marginal cost of expense is really, really powerful.

所以我不認為 - 我不會說我們所看到的任何事情都改變了我們對業務長期健康和盈利能力的看法。我們這裡有很多槓桿。我們當然可以很快收緊信貸。我們看到了良好的需求。我們在市場上具有競爭力。我們的利息支出很穩定。而且我一直回到它，但我們的固定成本基礎和我們以邊際成本增加貸款的能力真的非常強大。

We're adding new business lines with our credit card. We've expanded our acquisition channels from beyond our traditional branch network with our secured distribution channel expansion and all of that comes with very, very attractive marginal returns on our receivables. So we feel very, very good about the future and nothing about our profitability has been impaired by anything we're seeing today.

我們正在使用我們的信用卡添加新的業務線。通過我們安全的分銷渠道擴展，我們已經將我們的收購渠道從傳統的分支網絡擴展開來，所有這些都為我們的應收賬款帶來了非常非常有吸引力的邊際回報。所以我們對未來感覺非常非常好，我們今天看到的任何事情都沒有損害我們的盈利能力。

Look, everyone, thank you for joining us. We are more than happy to do any follow-ups with Pete, our IR team or Micah and I and hope everyone has a great day.

看，大家，謝謝你加入我們。我們非常樂意與 Pete、我們的 IR 團隊或 Micah 和我進行任何跟進，並希望每個人都有美好的一天。

Thank you. This does conclude today's OneMain Financial Fourth Quarter and Full Year 2022 (sic) [First Quarter 2023] Earnings Conference Call. Please disconnect your line at this time, and have a wonderful day.

謝謝。這確實結束了今天的 OneMain Financial 第四季度和 2022 年全年（原文如此）[2023 年第一季度] 收益電話會議。請此時斷開您的線路，祝您有美好的一天。