BFH · Bread Financial Holdings, Inc. Q2 FY2026 earnings call record财报电话会记录

“Adjusted PPNR grew 11% year-over-year, supported by 7% revenue growth and ongoing disciplined expense management.”

“Our strong execution across product mix and industry verticals is reflected in our second quarter credit sales growth of 11% year-over-year and 5% end-of-period loan growth.”

“We saw improvement in both our net loss rate and delinquency rate, reflecting the benefits of proactive credit risk management, disciplined underwriting, and the quality of our customer base.”

“We prioritize AI outcomes that remove friction and drive results so ideas can turn into measurable progress for our brand partners and customers.”

“Excluding the impacts from debt repurchases, expenses were up $15 million, or 3%.”

“Finally, PPNR was strong, increasing $62 million or 14% year-over-year, while adjusted PPNR, which excludes impacts from debt repurchases, increased $49 million, or 11%.”

“Common stock repurchases and preferred and common stock dividends reduced our capital ratios by 320 basis points, while the impact from costs related to debt repurchases accounted for approximately 30 basis points impact up to CET1 since the second quarter of 2025.”

“For context, in the month of July, we plan to repurchase $25 million of common stock.”

“The second quarter reserve rate improved 66 basis points year-over-year to 11.23%, driven by our improving credit metrics, higher credit quality new vintages, and stronger credit risk distribution, with 65% of cardholders having a prime score above 650.”

“Our revised 2026 outlook is based on the strong results we delivered in the first half of the year and a macroeconomic forecast that assumes continued consumer resilience, inflation remaining above the Federal Reserve's target rate of 2%, and a generally stable labor market.”

“Given our results to date, we now expect full-year 2026 average credit card and other loan growth to be up low to mid-single digits compared to 2025 versus our prior guidance of low single digits.”

“We anticipate full-year net interest margin to be flat to slightly higher than 2025 as a result of ongoing benefits, albeit slowing, from previously implemented pricing changes and improved funding costs.”