Q2 2024 Bread Financial Holdings Inc Earnings Call Transcript
Key Points
- Bread Financial Holdings Inc (BFH) reported a net income of $133 million and earnings per diluted share of $2.66 for the second quarter of 2024.
- The company's tangible book value increased by 25% year-over-year to nearly $49 per share.
- Direct to consumer deposits grew by 20% year-over-year to $7.2 billion, marking 14 consecutive quarters of growth.
- BFH announced a new partnership with Saks Fifth Avenue and completed the conversion of the existing Saks portfolio.
- The company achieved its long-term double leverage ratio target of less than 115%, reducing parent-level debt by 53% over the last three years.
- Credit sales decreased by 7% year-over-year, reflecting moderating consumer spend and strategic credit tightening.
- Revenue for the quarter was down 1% year-over-year due to reduced merchant discount fees from lower big-ticket credit sales.
- The net loss rate increased to 8.6% for the quarter, up from 8.0% in the second quarter of 2023.
- The company anticipates a slow, gradual improvement in the macroeconomic environment, indicating ongoing economic pressures.
- Total noninterest income decreased by $8 million year-over-year, driven by lower merchant discount fees on big-ticket purchases.
Morning, and welcome to Bread Financial's second quarter 2024 earnings conference call. My name is Towanda and I will be coordinating your call today. (Operator Instructions)
It is now my pleasure to introduce Mr. Brian Vereb, Head of Investor Relations at Bread Financial. Sir, floor is yours.
Thank you. Copies of the slides we will be reviewing in the earnings release can be found on the Investor Relations section of our website at breadfinancial.com. On the call today, we have Ralph Andretta, President and Chief Executive Officer and Perry Beberman, Executive Vice President and Chief Financial Officer.
Before we begin, I would like to remind you that some of the comments made on today's call and some of the responses to your questions may contain forward-looking statements. These statements are based on management's current expectations and assumptions and are subject to the risks and uncertainties described in the company's earnings release and other filings with the SEC.
| Access to All Earning Calls and Stock Analysis | |
| 30-Year Financial on one screen | |
| All-in-one Stock Screener with unlimited filters | |
| Customizable Stock Dashboard | |
| Real Time Insider Trading Transactions | |
| 8,000+ Institutional investors’ 13F holdings | |
| Powerful Excel Add-in and Google sheets Add-on | |
| All data downloadable | |
| Quick customer support | |
| And much more... |
Trustpilot
We'd love to learn more about your experiences on GuruFocus.com and how we can improve!
Take Survey
