OneMain Financial Performance Overview slide image

OneMain Financial Performance Overview

Secured lending performance driven by frequency of default 2016 Cumulative unit loss %1 20% 15% 10% 5% 0% 0 3 6 9 12 15 18 21 24 27 30 33 36 Unsecured Personal Secured Personal Direct Auto 2016 Cumulative net charge-off¹ 20% 15% 10% 5% "Frequency" of loss is primary driver of materially stronger secured loan loss performance Lower unit defaults reflect borrowers' need of their vehicles to live/work and prioritization of their car payments Better recoveries for secured vs. unsecured ("severity") helpful, but not main loss driver Secured loss sensitivity to used car values 1,2 18 bps higher Direct Auto and 4 bps higher Secured PL losses with 20% stress in our actual 2019 in car values 1.91% 2.09% 0% 2019 0 3 6 9 12 15 18 21 24 27 30 33 36 Unsecured Personal Secured Personal Direct Auto Direct Auto NCO Direct Auto NCO w/ 20% sales value drop OneMain Financial. 1. OneMain Direct Auto: only 0-8 year old vehicles. 2. Represents annualized losses based on 2019 vehicle proceeds. 4.34% 4.38% 2019 ■Secured Personal NCO Secured Personal NCO w/ 20% sales value drop 24
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