A consumer finance lender serving nonprime borrowers — people who often struggle to get credit from traditional banks — through personal loans, auto financing at dealerships, BrightWay credit cards, and optional credit insurance. The business traces its roots to the Commercial Credit Company, founded in Baltimore in 1912, which later became CitiFinancial before Citigroup renamed it OneMain; Springleaf bought it in 2015 and kept the OneMain name.
Net charge-off ratio rose to 8.20% from 7.57% a year ago, reversing four quarters of year-over-year improvement.
Credit losses reversed course. fell 9% to $152 million as a 19% increase in the to $610 million more than offset 6% interest income growth, while the rose to 8.20% from 7.57% a year ago. The credit recovery that defined the prior year has stalled.
Key takeaways
The for the Consumer and Insurance rose to 8.20% from 7.57% a year ago, reversing four consecutive quarters of improvement and signaling renewed credit pressure on the nonprime loan portfolio.
fell 9% to $152 million, driven by a $99 million increase in the to $610 million, which more than offset a 6% rise in interest income to $1.4 billion.
Interest income growth was fueled by a 5% increase in average net and a higher portfolio yield, while rose 3% to $326 million, continuing to compress the .
Section summaries
Management's Discussion and Analysis
Net income fell 9% YoY to $152M in Q2 2026 as a 19% higher provision for loan losses offset 6% interest income growth.
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Consolidated decreased to $152 million in Q2 2026 from $167 million a year ago, driven by a $99 million increase in the .
Interest income rose 6% to $1.4 billion on 5% growth in average net and a higher , while increased 3% to $326 million.
Other revenues grew 18% to $207 million, helped by credit card growth and higher servicing , while other expenses rose 4% to $492 million on strategic investments and restructuring charges.
The company completed a $1.1 billion consumer loan and redeemed $436 million of 7.125% Senior Notes, maintaining $11.6 billion in for liquidity.
What changed
The rose to 8.20% from 7.57% a year ago, reversing the improvement flagged in Q1 2025 through Q1 2026; the Q1 2026 uptick to 8.41% was not a one-quarter blip but the start of a renewed deterioration.
The 30-89 day delinquency ratio was not disclosed in this filing, leaving the Q1 2026 level of 2.84% as the last available reading; the absence prevents confirming whether early-stage stress continued to build as flagged last quarter.
was disclosed at $326 million, up 3% , confirming that the continues to compress even as credit quality worsens, a dynamic flagged as a risk since FY2023.
The rose 19% to $610 million, a sharp acceleration from the 2% increase in Q1 2026, indicating management is building reserves in response to the worsening charge-off trend.
What to watch
The in Q3 2026 — whether it rises further from 8.20% will confirm if credit losses are accelerating or stabilizing at this higher level.
The 30-89 day delinquency ratio — its disclosure and level will indicate whether early-stage stress is still building and likely to pressure future charge-offs.
relative to interest income — whether the stabilizes or continues to compress will determine if can grow even if credit stabilizes.
The size of the relative to net charge-offs — a provision that again outpaces charge-offs would signal management expects further credit deterioration.
The for the Consumer and Insurance worsened to 8.20% from 7.57% a year ago, contributing to the higher provision.
Other revenues grew 18% to $207 million, helped by credit card growth and higher servicing , while other expenses rose 4% to $492 million on strategic investments and restructuring charges.
The company completed a $1.1 billion consumer loan (OMFIT 2026-1) and redeemed $436 million of 7.125% Senior Notes, maintaining $11.6 billion in .
In addition to the other information set forth in this report, you should consider the factors discussed in Part I - Item 1A. “Risk Factors” in our Annual Report, which could materially affect our business, financial condition, or future results.
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In addition to the other information set forth in this report, you should consider the factors discussed in Part I - Item 1A. “Risk Factors” in our Annual Report, which could materially affect our business, financial condition, or future results.