Loading...
•
Jun 30, 2024
Bread Financial Q2 2024 Earnings Report
Bread Financial's Q2 2024 performance reflected strong returns through disciplined expense management and balance sheet strengthening.
Key Takeaways
Bread Financial reported a net income of $133 million for Q2 2024. The company's revenue was $939 million, a slight decrease of 1% compared to the same quarter last year. Expenses decreased by 12%, and the CET1 capital ratio increased to 13.8%.
Net income increased $85 million year-over-year.
Revenue decreased $13 million, or 1% year-over-year.
Expenses decreased $61 million, or 12% year-over-year.
Common equity tier 1 (CET1) capital ratio increased 170 basis points year-over-year.
Bread Financial
Bread Financial
Forward Guidance
Bread Financial anticipates slower sales growth due to moderating consumer spending and strategic credit tightening. The 2024 outlook assumes no impact from the CFPB late fee rule due to ongoing litigation.
Positive Outlook
- Strategic credit actions are expected to benefit the net loss rate.
- Assumed gradual modest improvement in economic conditions throughout the year.
- Ongoing investments in technology modernization and digital advancement.
- Disciplined expense management.
- Expect expenses to be down mid-single digits relative to 2023.
Challenges Ahead
- Slower sales growth due to continued moderation in consumer spending.
- Strategic credit tightening is pressuring loan and revenue growth and the net loss rate.
- Multiple interest rate decreases by the Federal Reserve will pressure total net interest income.
- Expect 2024 average credit card and other loans to be down low single digits relative to 2023.
- Total revenue growth, excluding gains on portfolio sales, is anticipated to be down low- to mid-single digits.