OneMain (OMF) saw Q1 consumer loan credit perform better than pre-pandemic patterns, although net charge-offs were higher than expected, RBC Capital Markets said in a note emailed Monday.

The company's company-wide net charge-off was 8.4%, higher than the expected 8.1% figure, RBC analysts said. Their updated model forecasts net charge-offs of 7.6% for full-year 2026.

On the positive side, consumer and insurance loans, including autos, showed fewer 30 to 89 days delinquencies, beating estimates at 2.84% versus 3.04%, the analysts said. Their analysis of asset-backed securities trust data confirmed that non-auto consumer loan delinquencies were better than pre-pandemic levels.

RBC increased its 2026 and 2027 adjusted EPS estimates for the consumer and insurance loans segment to $7.41 and $8.61, from $7.38 and $8.55, respectively.

The analysts said they maintain a positive view on OneMain's resilient business model, capital generation potential, and strong liquidity position.

RBC kept the company's stock rating at outperform and revised the price target to $70 from $73.

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