Q3 2024 Bread Financial Holdings Inc Earnings Call Transcript
Key Points
- Bread Financial Holdings Inc (BFH) demonstrated a commitment to growing responsibly by repurchasing $262 million of convertible notes, which improved their balance sheet.
- The company reported an adjusted net income of $93 million and adjusted diluted earnings per share of $1.83, excluding the impact of the convertible notes repurchase.
- Tangible book value per share increased by 12% year over year, indicating strong financial health.
- BFH successfully launched new credit card programs with Saks Fifth Avenue and Hard Rock, expanding their portfolio and partnerships.
- The company has a diversified product suite and industry verticals, which provides stability and helps achieve long-term financial targets.
- Credit sales decreased by 3% year over year, reflecting moderating consumer spending and strategic credit tightening.
- Total revenue for the quarter was down 5% year over year, primarily due to lower late fees and merchant discount fees.
- The net loss rate increased to 7.8% for the quarter, up from 6.9% in the third quarter of 2023.
- Loan yield decreased by 120 basis points year over year, impacted by a shift in product mix and higher credit losses.
- The company faces potential regulatory challenges with the CFPB's final rule on credit card late fees, which could impact future earnings.
Good morning and welcome to Bread Financial third quarter, 2024 earnings conference call. My name is Michelle and I'll be coordinating your call today. At this time. All parties have been placed on listen-only mode following today's presentation. The floor will be open for your questions to register a question. [Operators Instructions]
It is now my pleasure to introduce Mr. Brian Vereb, head of Investor Relations at Red Financial. The floor is yours.
Thank you, Copies of the slides we'll be reviewing, and the earnings release can be found in 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
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