Jun Trust: Early Del In Line, Loss Better Than Our Estimate

研报英文原文证据摘录

Jun Trust: Early Del In Line, Loss Better Than Our Estimate

Diversified Financials: Consumer Finance

OneMain Holdings

TD SECURITIES (USA) LLC QUICK TAKE: COMPANY UPDATE

July 14, 2026

Price: $59.25 (07/13/2026) Jun Trust: Early Del In Line, Loss Better Than

Price Target: $68.00 Our Estimate

BUY (1)

Moshe Orenbuch THE TD COWEN INSIGHT

646 562 1495

We provide our thoughts on OMF's monthly trust data. The loss rate did come down

moshe.orenbuch@tdsecurities.com

meaningfully in the month of Jun, which we had noted would be required to achieve the

Hoang Nguyen, CFA company's forecast of 2H losses below 7.4%. We do note that our 2Q forecast assumes a

646 562 1337 higher reserve build driven by higher mix of credit card loans.

hoang.nguyen2@tdsecurities.com

Key Data Overall, OMF's 2Q losses are tracking ~1-2 ppt below our dollar loss estimate of $504 mil for

Symbol NYSE: OMF the entire C&I business, as losses from pre-tightening vintages (pre Aug 2022) continue to flow

Market Cap $6.8B through. OMF expects consumer loan net charge-offs to get back within historical range of

below 7% over time. Losses were much better than seasonality in Jun, while early delinquency

was in line. OMF should be profitable even in a credit stress scenario, and has significant

capital return (now has programmatic buyback) and several growth initiatives, while the

shares trade at a low multiple (and ~7% dividend yield). We maintain our estimates and Buy

rating.

Personal Loans: The average OMFIT personal loan net loss rate was 6.42% in Jun. Adjusting

for the termination of OMFIT 2022-2 and addition of the new OMFIT 2026-1, loss rate was -153

bps m/m, much better than historical seasonality. Total 30+ day delinquencies in the trusts

were 4.49%. Adjusting for one-timers above, this was +10 bps m/m.