Bread Financial Holdings, Inc. · NYSE:BFH
Bread Financial — Morgan Stanley U.S. Financials, Payments & CRE Conference 2022
14 slides from Bread Financial's conference presentation, Jun 14, 2022
Slide 1: Bread Financial - Morgan Stanley U.S. Financials, Payments & CRE Conference
Bread FinancialMorgan Stanley U.S. Financials, Payments & CRE ConferenceJune 14, 2022 ©2022 Bread Financial | Confidential & Proprietary 1
Slide 2: A tech-forward financial services company providing payment, lending, and saving solutions
2 A tech-forward financial services company providing simple, personalized payment, lending, and saving solutions ©2022 Bread Financial
Slide 3: Mid-Quarter 2Q22 Financial Update
©2022 Bread Financial Credit sales remain up double digits year-over-year through May Average and End of Period loans for May up 12% year-over-year Payments rates remain elevated across Vantage ranges versus pre-pandemic levels; seeing gradual moderation Delinquency rate remains strong, with May at
Slide 4: Our Business Transformation
Our Business Transformation A leading provider of tech-forward payment, lending, and saving solutions 4 Guiding business principles to drive sustainable, profitable growth Expanded our product suite and direct-to-consumer offerings Enhanced our core technology and digital capabilities Focused on imp
Slide 5: Milestone Events
Milestone Events New leadership team & continued Board refreshment Launched the Comenity® Mastercard® Launched enhanced digital capabilities for our brand partners Transitioned core processing to Fiserv Acquired versatile payment platform with installment loan and split pay (BNPL) Record year for ne
Slide 6: Expanded product offerings provide consumer choice across the total addressable market
U.S. Consumer Penetration 1 in 7 American adults, including 1 in 5 U.S. female adults We’ve put a card in the wallets of Savings Products Differentiated Products & Brand Partnerships 6 Private Label Credit Card Co-Brand Credit Card Proprietary Credit Card Installment Loans Split-Pay (BNPL) Gen Z Mil
Slide 7: Product Diversification
Product Diversification 7 ©2022 Bread Financial Private Label(Closed Network) Co-Brand (Open Network) Proprietary (Open Network) BNPL Long history of successes with programs tailored to build customer loyalty with our partners’ brands Traditional PLCC average loan ~$400; also provide promotional “Bi
Slide 8: Strengthened Financial Resilience
Loan Loss reserve materially higher. Rate of 10.8%, up 480 bps from year-end 2019 and prior pre-recession periods. Strengthened Financial Resilience 8 ©2022 Bread Financial Enhanced Credit Risk Management Diversification across products, partners, and channels Stronger underwriting resulting from en
Slide 9: Technology Innovation
Technology Innovation 9 Bolstered technology modernization of our core processing and digital properties, driving convenience and choice Full product suite coupled with our data and analytics expertise provide personalized experiences offering the right product for the consumer in the channel of the
Slide 10: Long-Term Company Financial Targets
Long-Term Company Financial Targets High single-digit annual loan growth Average of $20 billion in 2023 Positive operating leverage 2022 and beyond Net loss rate less than 6% Average through-the-cycle target range Return on Equity mid- to high-20% Range 10 Capital Priorities Announced at Investor Da
Slide 11: Environmental, Social, and Governance
Areas of focus Environmental, Social, and Governance Proxy statement features enhanced, integrated ESG disclosure, in line with our ESG report released in May 2022. Sustainability Governance Fair & Responsible Banking Secure & Responsible Use of Data Human Capital Management Environment, Climate Ris
Slide 12: Bread Financial Leadership Team & Board of Directors
Rajesh Natarajan Engaged & Diverse Board of Directors Executive Leadership Team with ~150 years of Combined Industry Experience Bread Financial Leadership Team & Board of Directors Ralph Andretta President & CEO Val Greer EVP & Chief Commercial Officer Perry Beberman EVP & CFO Tammy McConnaughey EVP
Slide 13: Forward-Looking Statements
Forward-Looking Statements This presentation contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Forward-looking statements give our expectations or forecasts of future events and can generally be
Slide 14: About Bread Financial
Bread FinancialTM (NYSE: BFH) is a tech-forward financial services company providing simple, personalized payment, lending and saving solutions. The company creates opportunities for its customers and partners through digitally-enabled choices that offer ease, empowerment, financial flexibility and
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