Bread Financial Holdings, Inc. (NYSE:BFH) Q3 2023 Earnings Call Transcript

And I’m also not sure our regulators would appreciate. So I think we find that sweet spot of profitability, and we want to make sure we’re underwriting on the margin, so to be profitable and provide that right return on equity. So that’s a real part of the disciplined practice that we have in our credit underwriting shop is every account is a decision around its profitability and making sure as a proper return on capital. So on the margin, we’re underwriting deeper than 6%, right? So people coming in — it could be a 10% loss rate on the margin, but they’re giving the right return. So it’s — I don’t want to imply that there’s a hard cut at 6%. So it’s something that is managed very effectively and over time.

Ralph Andretta: Yes. I think the principles we abide by are: one, we get paid for the risk that we take; two, that we’re lending responsibly and that we’re always aware of the safety and soundness of our banks. Those are the principles we buy by how we arrive at the risk willing to take and the loss rate we’re willing endure with the returns we’re expecting.

Reggie Smith: Okay. Thank you.

Operator: We currently have no further questions, so I will now pass it back to Rob and Peter for closing remarks.

Ralph Andretta: Well, thank you all. I appreciate your time and your continued interest in Bread Financial. Everybody, have a terrific day.

Operator: Ladies and gentlemen, this concludes today’s call. Thank you for joining. You may now disconnect your lines. Thank you.