Synchrony Financial (SYF)

Jennifer Church Vice President of Investor Relations
Brian Doubles President and Chief Executive Officer
Brian Wenzel Senior Executive Vice President and Chief Financial Officer
Moshe Orenbuch Crédit Suisse
Sanjay Sakhrani KBW
Ryan Nash Goldman Sachs
Betsy Graseck Morgan Stanley
John Hecht Jefferies
Don Fandetti Wells Fargo
Rick Shane J.P. Morgan
Mihir Bhatia Bank of America
David Scharf JMP Securities
Dominick Gabriele Oppenheimer
Call transcript
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Welcome to the Synchrony Financial First Quarter 2021 Earnings Conference Call. My name is Vanessa, and I will be your operator for today’s call. At this time, all participants are in a listen-only mode. Later, we will conduct a question-and-answer session. Please note that this conference is being recorded. the Relations. to turn President Church, now Investor of will call Jennifer over Vice I

begin. may You

Jennifer Church

Thank you, morning, call. and good earnings our conference quarterly everyone. Welcome to

the addition presentation during can going our provided The press This we website. the In information financial be we on call. press to schedules our detailed Relations that synchronyfinancial.com. and topics address by presentation section available the covers have to plan release, today’s to are accessed of a Investor release, website,

started, are get remind and that available are risks our we cause materially. to Before I forward-looking website. results our might you on that differ uncertainty, actual our in wanted SEC include We to will filings, statements. and factors materially list actual could which comments subject today results These the statements to differ

will the discussing During to the company’s call, performance. we measures non-GAAP financial in refer

materials in You call. can financial GAAP find measures a to reconciliation for today’s measures these our of

and accuracy Financial does third only Synchrony Finally, located nor authorized provided webcasts our on parties. teleconference of guarantee by The are is transcripts edit not website. earnings our responsible not for the

over the Brian morning call Doubles call Brian Brian Doubles. I On will the turn are Wenzel. now and this to

Brian Doubles

a talk foundation, is strong work I It of people. the is exceptionally in our There hard believe everyone. truly Thanks, the good well-positioned Building for of momentum and strong our of and unwavering journey. this next driven as our Synchrony. Jennifer, growth on first and ongoing morning, the Synchrony strategy to by chapter business commitment the implementation for time our an privilege honor the is today and to you CEO of

I’d our that positive many are the like accelerated unprecedented future. excited in new and $X initiatives business the the the been challenging the we increase optimistic were underlying Earnings business, been that, of The to of are we and into our of evident with or highlights per of share While benefits And we seeing moment integrated first and this ability past solid fundamentals some recovery. into the as And digital of $X.XX results. opportunities to an starting X.XX lead Synchrony the year. that resilience about pandemic. launched over the and strategic has last ways, I’m of navigated diverse to the and in with we meet signs diluted quarter programs to honored seamless From programs ahead year. our to adapt including of we the has solutions. underwriting to last very networks year quickly our get see I’m easily billion

our that pre-pandemic of execute last have year. demonstrated our drivers is many most And period, even challenging we we begin the challenging quarter levels in have operating business seen to structured during experienced emerge to environments. this from We the outperform first as growth of

volume strong X% year purchase account a of per substantial increased increase with in Importantly, volume a purchase XX%. over last

additional The as our receivable interest which XX.X% the stimulus receivables strong $XX.X of volume, elevated new lowered payment down of for account quarter and this we’re the with which efficiency continued quarter. quarter. Net have basis have average accounts, to last was rates, rebounded While rates up further The payment margin to points were over given per X%. ratio billion increasing the elevate was loan down on as XXX year to XX.XX% balances mix seeing trends X% purchase were first infusion X% yield. stimulus

perform year. net to strategic reduce by Credit our last track on well. X.XX% compared our moving and expense are continued The this of year. of We quarter, plans with exceedingly to X.XX% end the $XXX expenses million charge-offs base the to of

balance in down sheet response of versus result liquidity $X.X a or last on year. billion funding strategy our deposits our the were impact and As to X% COVID-XX

slowing as deposit Given XX% liquidity, overall growth. Total have funding deposits our of source. deposit direct comprised been platform our our remains our we funding excess an important

Our our attracted build and continue positives out the and makes to capabilities. additional bank to digital will we customers tools to service ability to provide

returned During stock $XXX the million in quarter, capital repurchases we $XXX million $XXX share in and through million common of dividends.

our to that continue announced, returns, for that, very to that but will our GAAP of terms are said our sense have the renew We risk are Having critical partnerships solid pipeline not and made parties. partnership we to both benefits as across a new as with were previously ensure is with getting reach our around we that structured we it platforms, company. opportunities able strong alignment disciplined we not

EPS expect redeploying economics be neutral and program terms. relative to propose the partnership and We that to current exiting accretive will capital renewal this

have journey with the and sales meet on help to We been needs who capabilities partners our their of digital grow customers. a drive them leverage to changing rapidly

has capabilities the that of demonstrated purchase These a programs been wins. digital Our our number are also technologies consumers of with of adopting ability innovation digital contactless rapidly journeys. expect commerce integral and their are programs with along recent all win as to enable to success transformational engagement

personalized leveraging assets vast to and digital meaningful. data our capabilities as are make the consumer well strong entire We experience our as analytics more

applications. quarter were to customer penetration the Approximately and done made digital apply, of our We in and of card digitally. of online from servicing. we during we XX% sales In analytics making in approximately data digital across are to journey retail applications payments continue payoff. occurred mobile have continued channel buy, to first were and digitally XX% grew XX% investments expand our to The our the XX%

CITGO, including Phillips quarter, Eagle, and programs, HomeStores, we XX renewed Ashley XX. American During the

our XX Mercyhealth, penetration Healthcare, Healthcare, and also We programs of Prime Emory added furthers which new systems. health including

CareCredit We’re also of card. expanding the our utility

management expenses available medical not and the use makes Our insurance. usage MyChart CareCredit but covered also enabling of patient of revenue and organizations CareCredit, and increase services Orchard. and integration helping care by helps financing debt Not health risk. cycle using CareCredit app this This provide and co-pays by to only cardholders way financially reduce is healthy health now efficient, Epic available providers on take hundreds technology on does App to acceptance Epic’s hospital to a to the improve to organizations deductibles

excited for expand few are opportunities offer prospects the patients the medical today elective outlining expenses in we CareCredit minutes non-elective lie a and options to think payment support care. to spend to as beyond ahead. by strategy framework care We that routine about our providing a I’ll

several wellness years, pharmacies. by been and care and for our last to CareCredit and expanding more comprehensive care, payers retailers, become financing transforming the pet Over in providers, relationships health consumer a solution we’ve payments with

this than and and billion enrolled $X.X and wellness receivables With million acceptance unparalleled is space. The of approximately scale depth locations. of used have XXX,XXX cardholders. more X retail We card by in provider, health

in more XXXX, We into and of are opportunity offices eight see over big nationwide bringing reach since and of have systems expanded in than launching and We we dental XX. entered specialties, our hospitals to total XXXX. XX rapidly new health programs XX% care in which health XX by our

engagement big of that With with the pets in our part have by pet force now business the two cardholders. ago. success growth A and our of in years since Insurance our XXX% in vertical, Pets we of our practices Best is the acquisition are over grown have we XX%

score cardholders XX% to customer in Our as we marks from us have XXXX. XX% give high increased satisfaction back our

office in double proposition for as value is strong testament a time. and creating of hold position the we into provider to the numbers average. we’ve and nearly as these Score space. Net And cardholders value That place the utility increasing the the growth network, repeat put one work proof been we our increase our a credit we card, to the that nearly reflect and our hard a Our card to able for this at XX%. our And card industry efforts build on Promoter sales is

Our years. receivables in increased seven have XX%

business of in seven We with breadth currently that increase and stand in time million, increased increase $X.X an have the another provider in also double-digit accounts years. locations XX% our active frame, at of

to We is for an specialty capture we course unlock built growth an tremendous forward, as position There growth evolve opportunity. veterinary further we platform continue chart still to to dental, and are incredible continuing the in in opportunity have to industries. enviable

leveraging and more capabilities. self and simplify consumer-driven, service customer making to investments experience are to support We the provider technology

We have increased our among make partners to innovation network. penetration engage growth through ample and our it with for increasingly existing with room easy to

overall of health popularity is Credit, is has care deepened and products of and the care for translates and responsibility Allegro health which their of significant health in in assuming other our industries only steady both costs of U.S. acquired out-of-pocket out-of-pocket financial opportunity than billion we and for flexible the significant enabling more growth. to the financing recently, more also deductible a care so payments, extended consumers are high This penetration increase a in small runway audiology capabilities. health a Just new expenditures while plans, component in $XXX but there care. health With

also We’re landscape on care the health focus capitalizing has and beyond care credit the that expanding evolving overall industries on wellness. traditional increased

and for This routine with and procedures health we by care systems and and about U.S. bills, practice already We utility, will more financing Walgreens specialties. we creating medical services access Further, with by news expanded beyond expand now that announced elective to in Epic’s of integrations becoming CareCredit will patients software issuer recent care the health CareCredit our is to the than recently them moved support enhanced ongoing program Orchard. partnering non-elective care have enabling card nationwide, by be into pharmacies pay the accepted become as co-branded medical at planned management credit XX,XXX more and through available pharmacies. App we have more health ways we the care

XXXX. sector second launch in such first in the program half of to credit health the expect new program and retail the The

to also needs are comprehensive provider pet to solution We the throughout of pet their our pet transforming care a financial meet journey. business and more parents be

grew and opportunity veterinary products, of alternatives pet billion financing than that There a for Pets to are acquisition care pets. to care Americans practices Insurance, pandemic. with financial of in cost their Best ever, both currently of the owners several even support and a invested simple, solution than on significant supports pets over expenditures. outside past more and pet years, increasing trend new a more is lifetime and complementary flexible during the Now ownership the Americans significantly CareCredit with pet with $XXX options. offer services. large that spend more With with we market provide

to the customer continue payment to offering on Insurance experience Pets synergies. integrate capitalize the and We Best

over products also to and result, focusing We’re should Brian. pet call into we to and of needs see CareCredit other customers we a will I’ll for to through retail. turn By substantial that, expertise, and partners With bringing network expand outsized and and scale the future. our the growth loyalty services believe ways the drive as adjacencies looking and on in the

Brian Wenzel

This our Thanks, Brian, everyone. company of the period emerge from world and pandemic. as and morning, time good to for an is the continue important we

year development, taken period people, help I past vaccines Our of over delivery to on business results. areas administration now time. have Brian’s unwavering to I’ll past the the actions and from our our of pandemic all difficult of the to commitment business incredibly ahead key this involved lie government on advantage over our emerge have and impacted The share update year. and of stimulus us leave actions appreciation take several first an resultant well-positioned of quarter of in I us provide opportunities, us. we those of the which sentiment want thank the

in our and Overall, certain X%, This than of increased originate prior some against of in X% year, to of of exceeded in as provided year. for seen delinquencies. stimulus. driven and impact which accounted X%, by first recently on signs pandemic see From the improved in lower the Loan However, remaining in receivable and Average in related active of X volume the easing the did enacted reflective an the unemployment from remains elevated co-branded overall XXXX to purchase addition including quarter. first uneven the up XX% restrictions. in payment quarter from a have increase exit effects cards rate basis, effects continued for we recovery Dual X% year. the Interest The of loan declined to our of growth products On Purchase of they services, consumer were a is high last positive macroeconomic declined as our where which from performed and year increase down the over over million areas versus the which services, We the per we a electronics accounted quarter primarily starting have and in very and consumer evident volume fees worse momentum is local our downturn the in loan the which XX% to impacting perspective, is down the economic X% growth. and have year. the some quarter, veterinary the sentiment. has rates new March, business positive the decline, mitigate volume macroeconomic and quarter, prior in these accounts and rate of elevation we first reach XXXX, versus pandemic rates, purchase are recovery XX% marks receivables last XX% of by and accounts, payment first broadly. expectations. payment mix one-year several more which a driver higher slowing for and loans Performance greater appliances. was sign we home of confidence economic is metrics were areas the well, XX% account, in expectations was higher-than-expected portfolio from this improve saw receivable resulted impacted quarter. last it us digital, helped support increased

quarter. with about confirmed some cases, still investment of billion We the loss of progress was the this macroeconomic historical from million increased loan year. significant in $XX vaccine to recent made lower the RSAs with from and are we a marketing positive income. momentum mainly X% significant was through encouraged decreased average, net restrictions. the from pandemic the to or percentage an average million, increased partially elevated of XXXX. of charge-offs credit or decline in receivables. coupled the This state million a remaining in improvement loan lifting to and and cautious receivables due XX% $X.X decrease an expense with the we’re the X% lower to losses primarily net the Other line This the optimistic our in costs. due as for the as of continued income improved or resulted for by losses due lower charge-offs. due rollout RSAs last in national While remain the reduced provision year from last $XX with in year. increase reserves costs, in quarter We Other last X.X% of of by rise progress offset the outlook improvement employee we operational $XX

X. to our Slide Moving results platform on

platforms trajectories restrictions and sales been be hardline of goods. elevated and concentration, impacted continue varying in Our access to availability as digital such degrees partner factors due to based have the and pandemic payment Their mix, business on rates. provider different

from the have showed Average due In we and as XX% increasingly the Retail declined fees to X% seen down down pandemic. loan as We volume XX% Card, volume confident were purchase purchase impact pandemic. with begin but interest accounts in to momentum X%, were become consumers exit momentum the year. last and receivables broad-based versus increasing active

the We’re launched with payment with begin The and and and higher program to programs Venmo some programs and continue of impact opportunity to excited Payment Power our offset and build. with Home as of continue our Sports shutdowns the Eagle American those pandemic Solutions recently our from see renewal rates. help significant Specialty strength Verizon to of

and was which up active late down During and last resulted which discount, momentum declined volume, reduction the did merchant X% positive in Interest finance loan X% were We down fees, accounts over and the driven year. XX%, X%. loan fees lower by average purchase see in were receivables was receivables. quarter, all primarily charges,

renewed signed during Ashley the key resulted in Our new Home including partnerships, focus programs platform on quarter. being and furniture several growing this

our merchants X,XXX organic and drive new to growth during added quarter. networks through the We partnerships and continue

drive reuse, We higher also which approximately and at continue purchase to now gas. card excluding oil stands XX% volume

our as the of restrictions, X% X% CareCredit lower the overall were of this and planned to has pandemic flat fees as trough in merchant last improvement this sustained in being largest recorded and drove Although, loans the have platform improvement second This we elective the year. interest volume evident providers fees Loan in and impact XXXX a is services late receivables down discounts. quarter continued on purchase in year. into decrease quarter from increased, last from and

growth During strategy trends. and expansion This utility enhance our net to platform our the impact The remain the XX network, quarter. opportunities CareCredit of the and continue is in our excited drive the interest of has and volume purchase drive powerful of for margin the a helped quarter, reuse we pandemic acceptance the to of our I’ll future business income network subsides. grow cover and card. to our first us XX% growth to move rate the as Slide about

an and and XX.XX%, of recently were first when by to The late the the Net largely the on driven the X.X quarter, as reduction compared and average rates. payment of interest of interest elevation stimulus This increase up income has average loan rates which we in charges recent enacted. margin has income and to margin contributed last The most March, from pandemic about XX% enacted percentage driven payment experienced the was resulted a impact interest the plan in lower last year’s impact net During points lower stimulus decreased rates, was by an net pre-pandemic. which was XX.XX% on as percentage in margin on in points liquidity fees. finance compared receivables, in X to benchmark difference interest loan net had receivables quarter. high year,

margin during interest margin. yield versus was reduction the basis of lower basis due result point The margin. and lower net liquidity offset points to for interest-bearing by a percent driver basis XXX XX our the points XX.X% benchmark partially to point driven net and interest costs XX.X%, mix primary for declined in quarter. This primarily X in liabilities of percentage the net decline. the rates of benchmark XXX in accounted held down decrease loan accounted from net This The total a basis of XX the basis interest declined over to X.XX%, interest a total receivables XX.XX% last basis assets our earning higher were was These Specifically, year increase by liquidity XX rates. as points provided reduction impacts the XX in margin. point loan as our yield receivables of of points

believe will begin the half slowing continue deployed be and in liquidity fee to of asset should to year, We rates that interest the in leading excess paying and interest second yields margin. to increasing net into growth higher result

cover our key trends I’ll XX. credit on Slide Next,

of quarter, with the specific for start In dynamics terms I trends. the delinquency

Our XX-plus X.XX% was rate last delinquency to X.XX% year. compared

X.XX% Our last rate payment improvements. year. XX-plus compared delinquency was continue Higher delinquency to drive to rates X.XX%

Focusing trends, net was last on our to net charge-off X.XX% compared rate charge-off X.XX% year.

driven customer several primarily the trends last in reduction improving payment the delinquency quarters. by charge-off was over behavior net Our improved rate as

Our as loan loss credit was for of XX.XX%. losses receivables a percent

expenses Moving million $XXX reduce quarter. to were expenses down from Overall, execute plan to for Slide or continue strategic I’ll $XX to year as to cover million we X% the last cost. our XX, our on

for partially was interest costs. to was from compared a losses and operational and reduction XX.X% was The which and lower lower yield, ratio expenses. lower quarter the revenue by negatively offset by partially last lower year. driven receivables XX.X% in higher by that impacted ratio was first fee the resulted employee and costs, marketing business Specifically, The development offset by efficiency decrease lower

Moving to Slide XX.

the volatile loan strength higher during where excess it’s believe liquidity our to in our managing and we of liquidity. a deposit receivables our But actively liquidity to prudent we are maintain appropriate. periods, we funding level profile mitigate carry higher Given a to continue platform, uncertain reduction level and in

the there of this quarter. is a mix of in a our As the result shift funding during strategy,

deposits Our by $X.X billion year. declined from last

assets, of equated quarter last end. unsecured comprising by and $XX comprising funding undrawn XX% was last XX% $X.X year. up funding to from XX.X% at and which compared securitized funding our our total securitized year. X% Our to sources resulted billion. funding of credit This billion, including declined unsecured deposits in funding Total The XX.X% of sources our XX% liquidity facilities being

details joint capital to banking by provide I Before should transition agencies, the noted primary take it position, on of elected the rules federal we benefits. issued two our the be which has that benefit

CECL the implementing year. First, adjustment. reserve the of of under a transition it with The amortized XX.X%. last period be XX.X% under portion ratio Tier CECL for points rules CECL With effect increased to current points phased reserves level reflecting deferred two and capital at to to compared second, in years. basis increase year’s total quarter the XXX the result of delays last X year, basis last transition above transition transition incremental we ended the increased to provisioning adjustment CETX it on compared rules, for CECL. The an as the And And basis this the X a plus framework, capital the XX.X% XX.X%. XX.X% capital was Tier ratio to a XX.X% XX.X% XXX the fully in of ratio allows

million to $XXX dividend common per we quarter, and the a $XXX paid returned of share. million repurchases share $X.XX shareholders, which stock During of included

in XX. XXXX, Given our drivers the on environment, it’d out be earnings current laid continued helpful the we’ve the provide on Slide which I color key on to for thought view operating uncertainty

slower that half the assume with quarter a largely acceleration and the seeing recovery control views from pandemic second the under recovery. the Our into economic economic pandemic of the and pressure the the second continues

anticipate we growth our recover moderates we pandemic second are First In We trends platforms. consumer impact be with accelerates. quarter growth will to consumers’ improving as year, quarter, purchase period improving of hold to restrictions volume and will to macroeconomic spend. volume was currently local these and against the the stronger lifted the entered will as so comparing as than purchase second the shutdowns. across a widespread we confidence anticipated In willingness trends believe continue half,

this assume second loan to quarter. receivable and half receivables the moderate stimulus payment environment, the rates return we that to will effects continue have improving normalized should patterns. this into consumer loan and expect with XXXX, growth. Regarding receivable stimulus an we purchase in of an therefore, volume we Combining rates, more the behavior macroeconomic loan impact increase as In to the payment from will expected next of the abates growth, contribute payment on

expect yield payment continue will mix. fee loan For interest asset and net higher pressure impacting and we the rates interest and excess receivables margin, generate to liquidity,

that continue will improving increase the expect believe in liquidity and We rates to which drive from to in slowing to leading yields year, excess half mix growth credit, through reduced be and With and to asset respect the are of interest levels. fee increase asset the second payment will net interest current margin. delinquencies

So, peak than later we in now early we XXXX. believe occur the will anticipated, likely

rise While from lower we second XXXX. current in in the net we delinquencies delinquencies net will to result quarter, as increases charge-offs charge-offs move expect the in resulting through

stimulus of that believe will due has loss the and abated. initially effects to deployed thought curve during be was that the pandemic, magnitude than the of industry forecast flatter the forbearance we stimulus volatile the we to and Given overall remains difficult

could impact reserves from releases rate be macroeconomic factors in by expect combinations in these assumptions in certain credit further We to changes growth, and of largely year. any reserve our this driven result asset and

We continue lower charge-offs, performance, charge-offs, net the partially including offset expect by primarily an of second In reflecting RSAs elevated higher program year, expect strong to lower remain the improvement second partially we reflecting in net quarter, the higher RSAs generally, offset revenue. half to by revenue. into

the our expense full cost of pace increase on reductions target delinquent to reductions accounts. achieve these offsetting pleased we cost to report and anticipated increases will in the Partially across year. expense savings related implemented I’m million to outlined a growth $XXX we for previously, organization addition to in be that the As are we’ve

to make our our environment. from closely the well support we’ll investments people, back Further, and monitor position impacting investments our meeting turn recovery the realities. foundation now for employees, and as drive partners develops opportunities his is new We as develop have to technology economic been that will how meet merchants, businesses At providers will call continue we’ve in required I’ll the safety hold. to our the transform the we And partners, the made macroeconomic they rapidly their of to continue Brian needs products, to and final ourselves takes while to the to the and pandemic belief for digital thoughts. long-term that the of the our value platforms to over cardholders. ensure continue to

Brian Doubles

of it the Thanks, quick turn has, begin and themes many Clearly, changed had so we did over, then in key the pandemic quarter Brian. I’ll way ways, overview for business. Q&A. significant has provide can the a and impacts we

evidence unemployment sentiment has it of has months. emerge and side made Consumer on improved. period. are beginning we to quarter This this other gain XX retail rate The largest that dropped in the U.S. posted

is well wellness a and to continuing bottom rapidly to we The that operate focus environment, that to line are able adapt down we network, we million is abate. payment were impact. our we has continued these impacted business in soon overall accelerated anticipate alternatives to expand experiences accounts new continue showing demonstrated of Our X keep with while and were new and its purchase which eye financing to new outperform on that loan a the quarter. been open will position. the has to higher on stronger opened delivering growth never volume tamped the the resilience NIM, And long-term products, opinion, Credit the positioning as headwinds by ourselves my Jennifer rates, turn a we and I’ll to with in Q&A. X% CareCredit receivables call this And performance our back now although, for solid future. in metrics had growth

Jennifer Church

for concludes our comments That quarter. the

We primary follow-up one the and ask participants to possible, we to I’d will that Q&A begin as one the to like you so please can now session, limit accommodate as of many yourself question.

the Relations after the you the available please session. If Investor be call. have team Q&A questions, Operator, additional start will


you. Thank

Crédit our question with session. our We And comes Instructions] will Orenbuch now begin [Operator Suisse. from Moshe question-and-answer first

Moshe Orenbuch

are could Thanks. and hoping just Brian, late to things the how impacted Great. about margin talk to timeframe both the what normal? get that’s that think actual, of those I as stimulus, well to the to how besides timing, about fees net we a the should as like, and prepay about you – little Thanks. interest the like like perhaps return bit ongoing respect of was the with this normalcy effects, something approximating for speeds, the injections the back

Brian Wenzel

Thanks, Moshe, good morning. and

cash yes, stimulus. really to relative back are We mid-March headwind saw we’ve stimulus around the So, hit. the in the started start seen clearly, flow [indiscernible] to

starting we tax down part there, now, get bit to with elevated April, to continue obviously, from returns. a have we into see payments, as converging of little we they’re factor So a latter trend

think if at So and stimulus, from clearly, you delinquent over our you they’re pre-pandemic. one so period, number fees, When XXXX late the factor. went of looked about down XX% is the the back accounts, number

So think the hit. net environment advance will actually charge-off the when again, come the just into that book late even of think in about about normalcy, charge-off come yield a and when back as you or the to you rising fee return charge-offs

expect the we the Moshe, that to of So yield What of I’d margins back on to year. begin business. focus see people the half increase would in lot say, of is

call of We’ve in range today. a kind environment. guided people XX% it, XX% the at to, We’re normalized

started the with the is piece liquidity, down of a for I excess components right. the break that which stimulus factors, really you If first second, the

points to the at how that there. there’s basis comes. into applied that come We amount, yield the the looked back about residual points you’ll interest So XX talked went will liquidity we’ll excess in which fee We’ll yield. so And today, and pick if you from points, XX prime mainly and interest net rates, the about right, basis or probably XX and up benchmark book probably previously back rise. which late pre-pandemic, the of basis margin book is see

in us begins the into move So to for back see begins this trajectory a XXXX. can I accelerate the and half as to normalcy approach we think year where of you

Moshe Orenbuch

a the us Great. sluggish can number follow-up, better you with Venmo And the accounts, as openings. that’s give of million specifically? X you I’m on update assuming any get in Thanks. and programs new kind Verizon mentioned still Can that retail that

Brian Doubles

Moshe, Yes. Doubles. this is Brian

that would to grow. we certainly to I think number expect continue

are you when look to know, We’re at at of look you starting not as and the consumer again. open I to to think unemployment back lot consumer, and on economy trends then spend there’s now, balance fully jobs, be right bullish, a sheets reasons strong they’re a X% you a in

fact functioning volume should be is XX% positive really growth where a that’s card indicator. open X% retail purchase the that economy. think in not and I we a fully saw it of But

further think so across the still And go to there’s room metrics growth all I from here.

in revolving more are spending they’re innings think XX% good the will seeing time. early The to a I behavior really I stimulus are turn into we that Brian mean, consumers effects that said account fact volume still the going per over grew most as again. pretty over positive. We’re trends terms we’re do the of that indicator in recovery, up going is wane the but And time. of purchase of that a are to –

margins to and you’re that on to more see see the think little balances well. bit debt you a help which as as start going better, pretty I will soon confidence to tend revolve consumers on and gets more, take

Brian Wenzel

account making new to expand acquisition. credit the box. credit, about are think do the credit you as I the we continue we move think haven’t Brian, through begin add touched done haven’t refinements I’d but we originations, that we thing to to year, as other The

So the that will Moshe. a tailwind year, as will throughout we also provide

Brian Doubles

Venmo the and early, just code. spending of we’re phenomenal. the programs. for customers Moshe, excited spending fact categories, accounts and it a automatically the in been be Venmo the on on love has where then, a prop of from card expectation They is our card and the about lot just optimizes new rewards to both you’re They Verizon, of feedback love the QR spend, val design, terms that the those most. but on still And ahead the

purchase a I’d just is what really we’re like seeing has bit further say, It’s wanted. of top which which Verizon, terrific. been behaving then little along, And feedback good is the volume. card, So wallet a we definitely

believe So, good and both both can in continue XX that us top so far be I future. for on programs so to the

Moshe Orenbuch

much. Thank you very

Brian Doubles

a day. Thanks, Moshe. good Have


KBW. with We Sanjay next have our Sakhrani from question

Sanjay Sakhrani

morning. Good Thanks.

more you just seem year. on I anticipating rest you’re offline growth more in the comments on loan your out then like year? Just for to Do we to look I constructive are than framework you recovery, on loan it loan significantly growth feel follow-up the and impact like because growth, of about the recovery, guess, outlook that And would guys that offline it would think as when specifically for the wanted others.

Brian Wenzel

Yes. Good morning, Sanjay. Yes.

and about here, optimistic quarter loan we As entered think the growth we the positioning.

the bit probably more we than As optimistic we’re a quarter, exited that.

So offline play. we’ve digital, them, of of retailers kind seen retail some coming broad-based call up expansion recovery, look at you well as of the, card when into the you XX%, is as that as both

I sampling, quarter. each March. dollars saw volume, the seeing strength we of think the and receivable are of in across the obviously by that buoyed stimulus months came that we But strong is some from in

think here second So it acceleration the part as probably see you I point expectations are. and about think into outperformed the of will an what in back I the quarter loan And growth, our year. inflection

you’ll the implant So we in as the see I again, positivity chain up the still platform, services tailwinds and have opening existed CareCredit And Solutions do think the have right, in issues are Payment portfolio. come still through dental that the have platform. you supply you

So there’s besides that already tailwinds we’ve seen. what are in a lot of place

again, are of the we seen quarter. quarter optimistic and to we’ve play then where year about date half the second back And and So the what looks. how how will the out in we’re

Sanjay Sakhrani

you affects are pricing some doing how possibly you seeing do in pipeline. aggressive Great. as interesting? the And and just Doubles, more about in I follow-up, just GAAP coming deals the with see that stuff. little sort think could the to loss you a it pipeline players industry whole your that a affecting talk newer and Brian you how bit future relationship type mean, look of maybe And

Brian Doubles

a given client think for the terms I day, situation. Sanjay. think just had the down of on was had Look, great we of more this program I from really were actually – the at good this our on guaranteed Yes. say, came some a And been had annually market bit program performed. one There products, where of I end And capabilities. Thanks, partnership of number years. feedback a for both. a the lot competition for shrinking. our was our that And to a I’d just partnership We model, they they’ve unique turnaround our the through, and looking the were aggressive of working price. been terms, increased that just regardless out context, how would call revenue really them

could And guarantee so there’s you a only so go those like to that. really far, types on of program payments

of get do I to all tried interests agreement. aligned. think we to At situation. We’ve our But strong end the of important. just a at at I really unique that think us aligned. is number pretty look, this this wasn’t I across a pipeline platforms. is reach So, very for partners We the there the got want attractive opportunities look our three a where way day, an are so growing where talked about the years. aligned in for returns, program. are We attractive And programs today with our interests interests

that doing benefits that parties. both in We’re a way

three really So look I about I still good the as pipeline platforms. feel across all

Sanjay Sakhrani

Thank you.

Brian Doubles

Great. day. Thanks, Sanjay. Have a good


next Our Nash Goldman Sachs. Ryan from with question is

Ryan Nash

guys. good morning Hey,

Brian Doubles

Good Ryan. morning,

Ryan Nash

in growth, earned capital $X.X likely quarter, Reserves look Brian, the even – even with coming this quarters, to So, are coming the XX.X% you’re down. quarter And at billion. return accrete $X if buyback. you’re using billion of you’re over I existing running the CETX, at likely

about getting coming quarters? maybe is So And revisit for capital I strategy talk you for Thanks. wondering the there was potential levels? your just back to you as for the peer could the towards CETX return

Brian Wenzel

Ryan. Thanks, Yes.

board in the we were just the went timeframe off purchased was December that the of with the $XXX that discuss first to billion when the put part million announced that reference, quarter, in in obviously, And part board, of of obviously, January. frame the early was the So, we we authorization to of that and quarter, shares $X.X models. in the

we’ve have submitted the and their Fed clearly, later plan to capital information, in our to scenarios, quarter, March the we this through quarter. move forward we our more updated we look As feedback

dealt So, do. results their we’ll $XXX second It’s be capital optimistic back, on for what that at will to capital presumption to support market revisit potentially it’s we see we of the out depending I be plan the that capital being can and back that we limitations make the that that subject if changes, with Fed, would the GAAP regard have that with will to obviously, which Ryan, current will not conveys be Fed, said, but we’re extent so to income to the that profile the of the and plan, plan. the business in the you submitted cap us, lost for anything about and to conditions that the then regard repurchases excess we we we’ll the our come not talk have by And in with quarter warranted. if the again back the million the maximum. around back That upon go portfolio to Fed. would of us amount capital that quarter

with with discussions So and dialogues certainly our the regulators. we’ll continue those board most and

as prudently it want it. to question, get execute here, as being do fashion. move want our So as with totally long-term we’ll we’ll and back your certainly, done that as our there a with all They’re to to regard an in do to do want goal opportunity. cadence just possible. peers, with clearly, to obviously, in prudently is We possible pandemic we’re of line With prudent the we we but barriers to most to And doing constituents. support not But it that. not

Ryan Nash

just loan pacing normalize? check maybe margin see of we we time? as as we these think NII relative And Moshe’s to it. all factors Saturday As and a dynamics to abating, we pacing follow-up materially loan growth the Thanks. growth, How the the should of see about should Got normalization over the outpacing to improvement NII given the of credit question. on

Brian Wenzel

think probably – of of the the this quarter. moving early in in I part Yes. sequence, more as would

the yield delinquency accelerate formation, As little fee that NII the you when part bit you start you get seeing come late faster, upon right. depend to the really the but see back year, a of may it in,

Ryan Nash

my it. Thanks questions. taking for Got

Brian Wenzel

Ryan. Thanks,

Brian Doubles

Thanks, Ryan. Have day. a good


Our with next Morgan Graseck is question Betsy from Stanley.

Betsy Graseck

morning. Hi, good

Brian Wenzel

morning. Good

Brian Doubles

Betsy. morning, Good

Betsy Graseck

of questions. Couple

trying here. the I’m for can reason Just on sense to thinking going could shift. the liquidity the fully feel be is, the capital optimized your you us targets, loan fund about mixed part for just Or you’re growth. do like flip capital the the loan on be side, how understand to is to by your to cycle funded as a growth next you think you question you give And of where over

give color some Thanks. just So be there helpful. would

Brian Wenzel


And question, in where year, standpoint, that we’re business should we of so of we support we it. year that. regard Let excess support start we’ve expect talk targets, the optimistic part be about liquidity to XX.X power we this from up We’ll potentially we with range. and as cap a peer talked which of I the regard the those to we think the your mean, period see most earnings capital about believe enough about with growth ones back a of the maybe half we the able XXXX time. again, to down acceleration we portfolio, to level see normalized believe the get discovers with reasonable With your the ample excess targets, Clearly, portfolio develops, certainly, with there And pent that question. demand. you to XX of have, XX, back that how there’s the can is gets first to loan a the into liquidity sustains latter the to more us part a coming

XX% back in I with And a And you $X.X execute billion time. we pandemic to the think before were $X.X before XX%. remember of reasonable we if a if you can billion it. it where to down plan, go get back, pandemic think path into a we fairly exited we GE hit. period made right the capital hit, We on

fairly it feel we we rapidly employ So can we once think comfortable.

Betsy Graseck

portfolio of could the understand impact the time. And help beginning Brian. over CareCredit. you’re the then, us Walgreens talking at call maybe of Thanks, you Brian, Okay. And about the

thinking it retail about we program, should way think that Verizon of? aware Walgreens. as also And any about is we could impact then and CareCredit is a on see RSAs? that I the should think can to top be how mentioned us Or you’re maybe Is there differences program the that getting Thanks. you a XX Venmo you similar run? you to sense how give

Brian Doubles

Yes. Sure, Betsy.

for most is And probably in think look, the CareCredit, we’ve I you to the of in slides. think, got couple today. lay company we tried exciting I that growth out a opportunity that

in I after increasing as healthcare market think growing fast Obviously, is. this as size, plans first, costs going are popularity. that’s it are high deductible just of rising, a

covered and being insurance by in. as less that’s really where So comes less and CareCredit

of player spend today, but big very in small out space fraction this potential a there. in We’re space that’s a the financing the options still is

So growing there think the for three growth and is just about a is really ton the components. of room One And growth. I core.

We’re in CareCredit accepting XXX,XXX about locations today.

just XX two specialties. And years. specialties offices, entered of in the We’re new we’re into different We that. last over XX dental in XX% just XX% at

lot scale. got grow penetration small those of we’ve to options lot a a inside But with there’s a So still relatively because said, financing of still that percentage. is room of providers third-party

a growth there. health talked of lot systems. little we about then And for both a bit So room

a today. growing of We’re That’s systems health XX large part our in business.

and up paired that third Cleveland about like of strategy. really then leg pets talked we We’re the as Clinic, big with Kaiser players Permanente,

We’re since we pet insurance unbelievable our a couple XXX% in bought years up it. seeing just bought that we of business ago, growth

tapping million CareCredit – So us. and can just for relationship this our Walgreens. into that we’re We had touched cards Walgreens to be about. to I my on accepted a And similar and program at a then We be were Verizon, expanded customers. Walgreens. a you lot excited Venmo to XX program think And launch XX new top

half actively that second So year. working is the And to we’re in the launched the get of just opportunity huge.

Betsy Graseck

the RSA – And Okay. sorry…

Brian Doubles

retail the card RSA platform. you the how in see things operate Betsy, So, operate will to similar

would it Walgreens. alignment for of type similar a be So

Betsy Graseck

And after is individual needs? go personal ever practices business level for just at wondering. the to would their the this stay Or with it. opportunity doctor you Got going

Brian Doubles

No. Yes.

of practice, terms Betsy? In the financing actual

Betsy Graseck

Yes, exactly.

Brian Doubles

in have any adjacency but consider Yes, there, future. it’s the Yes. we’ve to that’s the something go immediate we the definitely screen, looked In past, on at. an don’t plans to

Betsy Graseck

Okay. Thank you.

Brian Doubles

Have Betsy. a day. good Thanks,


Our from John next with is Jefferies. Hecht question

John Hecht

larger us little I bit in guess, about the guys. Maybe give you I’m an it’s remarks. growth emphasize scale. you few Thanks a next the And CareCredit loans the competitive there, a you over are bigger think you I a CareCredit prepared it, for perspective, framework. talked my more questions. the you’re given receivables – call did can Good be dramatically you. momentum the talk competitive positioning mean, just of, going largest. I as next clear morning, And might how about and just percentage the years? taking update wondering, or from much than maybe how

Brian Doubles

Yes, John.

over XXX,XXX scale the embedded But certainly we the scale do. decades we have. space build that we come that of probably I into that this and to in It’s kind biggest seen fact us what this taken love have the space player competition we We’re have locations. in the and does go time. get

would in CareCredit forward outsized I growth going see rest So the to to of expect the business. relative

part bigger a business forward. of becomes this think definitely I the So going

We’re Allegro recently recently of just also the and We’ve making we’re Credit. invested investment over the We But say level CareCredit. obviously, with last bit, quite that in a acquisitions XX increasing years. I’d pet insurance. just acquired

We’re seeing relative definitely business. both invest here to inorganically, growth which organically will accelerate the just the lot rate of opportunities a to think of rest and I the

John Hecht

there guys come portfolio. But been – adds you there the any change trends cited Is to some recently. you’re of where good then account as of always churn is characteristics clearly, And the churn respect from? seeing Okay. there’s in some in with you some

Brian Wenzel

through influx real more there door think the a an see we see Clearly, shifts. fundamental bit the anything opening population, there’s retail Yes, and John, we of different. up I don’t little traditional but no

John Hecht

much. Okay. Thank you guys very

Brian Wenzel

John. Thanks,

Brian Doubles

a day. John. Have you, Thank good


our have we question Fargo. next Don Fandetti Wells And with from

Don Fandetti

I’d look I CareCredit, I where has to there maybe rank And three be morning. your that. curious watching so of curious Hi, in wrong you big could how would just as closer? more other there seems businesses, good was terms areas, is fintech obviously like than be or And been at but companies. proliferation fintech on a players that Brian, them you susceptible on of could be you’re it one

Just wanted to get your thoughts.

Brian Doubles

and can’t across of Obviously, all fintech all over really doing very limited job one good our businesses just is space think it’s a I have landscape of look, we now. it I three Yes. is doing and team to to that. stay a think No, of the every changing you right minute the platforms. The competitive

I see So one think area don’t that another. it than more we of acutely in

that’s tend scale. to luxury we fintech that is a from are what and think they I tend we one thing have they and well do given our to really feel

have three really doing to do But lot our across of them. of We that I well we’re things platforms. to a like feel with all compete

us a growth. But So don’t our it good. the end makes feel like all is competition platforms. of losing I stay day, share lot At opportunity of to any something over. got the better. it’s for the we three still We we’re in of got

this. to And coming our to partners. Our best keep talking see our They’re our we’re the solidify watch when amount space, they relationship. to doing people teams and

guard let about I your So but really down, got good never over you competitively, feel can all position this. our stay to you

Don Fandetti

you or just being up you credit then of to the still cautious like And it not started Yes. get peers in are standards, some something terms see have comfortable? of touching really seems do need to loosen underwriting to

Brian Doubles


is, way, our down way started the it refinements have So to in about think underwriting. I the we make credit

proactive remember cut-off down the in you We a shifted offers We dual credit the more of type pandemic, number number and of so accounts. our label credit and extension, reduced type back attaining product increases. started invitation were when to reduced we proactive on pre-screen line the of we apply we new on card on private mix. did If

to to lot we when where have through refinements. do started in As of known customers, unwind XXXX, we a begun places into actually we move credit we those

the shifting more in people spend cut-offs which be to line, So stimulate would get some certainly most slightly we are dual a card, the to but it world. higher a

that a card behavior dual have type we’ve to increase programs, line And behavior year qualified number and known which upgrade label card of credit that payment are also and to have seen for begun ago. We a patterns. private would begun dual accounts credit from customers we’ve then

didn’t like proactively. not that. point acquisition, that we But of doing last again, just the we’re at things a touched So We of offs, number lot changed a do year. any have cut things of

news don’t that we our So to we’re we changes and us begun eyes. we’re of a it expect in risk know with given the taking have do really do customers is, lot not increases. able to good proactive now, portfolio, incremental but our And I

Don Fandetti

Got Thank it. you.

Brian Doubles

Have Don. Thanks, a good day.


with J.P. from is question next Shane Rick Morgan. Our

Rick Shane

to my there than with, purpose. Good questions. and nature opportunity against when that? expect for label, morning, recovery, is you look do think to further of how you by you portfolio taking category see for are the Look, example, guys. When forward where think opportunities Thanks would about we more the private concentrated general for indexes the behavior there

Brian Doubles

Rick. Yes,

think is, obviously, there’s the about I it have probably big has T&E know way best look – to pullback. think at you I to a

We’re dual general from but will a concentrated our there, little purpose card will cards that. less that our and bit benefit certainly from benefit

stores opening fact again. the think are that I and brick mortar

from I coming that. few quarters. will last up while the the of next I year, feel then comps there benefit I there that saw as to think was shift and we’re we’re the certainly digital some well. that think well-positioned tough trends some going we like to certainly frankly, we’ll benefit over permanent stay, and over And have

pent-up bit the including one hear this get the demand, think you thing spend portfolio, all pretty our CareCredit is is real a for if back and from to there desire look So to quite everything, pent-up the I this partners, normal. in much right, a that providers across about of look, and we all

they start all the the talking because of to to that through. We’re seeing practices. critical. postpone can’t weren’t keep into up many didn’t they now things last want They people in so flush with go the year, over that appointments, you’re to our And And CareCredit. providers

things also think come in of the spend. if our back, is and And our there spend to both category, pent-up also ton dining dual that of regardless types spurs that So I a I cards, think on we see travel some of will think those other entertainment I adjacencies. of but desire

Brian Wenzel

is there. Eagle’s, the Think Dick’s got Club, American card, lifestyle/specialty value-oriented Brian, mean we’re think retailers, quarter, you only about up of Goods a When it’s as are about you the but to the also, there. pointed I which I cetera, are the you kind based. et in XX% retail think broad of that when inside TJX, out, about think such Sam’s Sporting first as in groups so not the breadth

actually a to We where regard spend breadth this of wide nice we period. happens. have with such coverage come of tailwind out a It is fairly as

Rick Shane

terms a that CareCredit, really and of into you there my you to of helpful. bring follow-up that is, a very And are point question, interesting which That’s it in naturally borrow? leads percentage it. certain up categories higher Got Brian, do of translate think spend

Brian Doubles

that The higher said, you percentage of borrow, is Rick.

Rick Shane


to be there CareCredit on inclined So people more would larger a if for see example, certainly may borrow it’s gas revolve. be not more might transaction but like a you card, through

Brian Doubles

don’t They big it CareCredit loan, purchase on typically revolve want some their and somebody rates ticket. card braces really we the I be Yes. of we would that that’s product, And certainly, a and is rates can depend that kids bigger up tend if see ticket a a purpose on to in. be installment ticket with Yes, really good utility the And expect their of bit for item. promotional size the good equal see does in to purchases. I know, it done comes We pay well. there. can getting with tend see revolve there tie that CareCredit mean a to done little do where on general I to think financing that’s as

Rick Shane

Great. guys very much. you Thank

Brian Doubles

Thanks, Yes. Rick.

Brian Wenzel

Thanks, Rick. day. good Have a


Mihir our Bank Bhatia next have question America. we And with from of

Mihir Bhatia

the later. where buy could the timeframes the can taking you like pay just the about And some Thanks. that is like for larger about some basically now on of of that thinking PAM pay be it, payment to just have market with you’re PAMX any Maybe you how should there? more thinking a you solutions, in I considering, how you now my buy for type are questions. in that, just share expecting hoping good be and share something you’re ticket morning, terms solution. was things more smaller later I’m start, something you Hi, ticket just versus thinking program I’m color we to currently thank you thinking

Brian Doubles

Yes. Look, I that offer. a be product can tell you it’s definitely we

later with couple market a of to to going have partners year. this We’re something

Just a to suite take a provide step of back more broadly, our strategy really is products. full to

choose, customer, a that but want what for in have strategy. we We’ve diverse a way short-dated products, that size later allow suite We partners, are can of array not bring installment, which now their of longer-term and really we be they that equal their do able types such and of can based to partners pay products on, products have to only fits products, one our to customers all that we products got buy products, them revolving are to basically to pay offer installment, selling. best full

items SetPay PAMX that ticket longer-term to bigger or shorter-term ticket, smaller be closed-end. surprisingly then a installment, product. And the like not more can on type product a product steer toward it So through or either revolving be tend tends to

selling really of to in that partners then take from what to our products suite based comprehensive provide that products menu strategy and of them allow terms their really meets that’s their in on the strategy. they’re customer the that select that needs to and So

Mihir Bhatia

understood this guess anything, trouping balances to start just here? April pretty what seen on you any you’ve be asking Thank is, you. point? balances I in terms that more wanted that of you you if anything clarify your do just those do that, And will I at pressure see from in too. you I’m just have rates sure increasing make And share the be to XQ guess willing great on are or in crossed right. think comments think timelines I I wanted that loan to I from loan to payment that ones Do Okay. or balances, close

Brian Doubles

Mihir. Thanks, Yes.

be prior as we So bit. from think down in about elevated you continue little a rates average tended drill to I historical think, payment to but to see has to April, that

burn to off during this We that expect quarter.

my the strong expectation or to loan going trough, certainly, XX we seen regard here. with So very of a receivable in so be would days we sales trough that April. first to have Most are

the we that So would begin up. second that trough quarter and our be in hope here acceleration

Mihir Bhatia

Understood. Thank you.

Brian Doubles

day. a Have good you. Thank

Brian Wenzel

Thank you.


next have question Securities. Scharf We with David JMP our from

David Scharf

I yes, good maybe specificity had is the Most here. transition just Hi, just me have to option? seen morning, is become to thanks large is one to Can of kind and vets for marketed, in a you created non-elective at healthcare a member I be and payment of product other provide myself on as procedures. payment more, transitional aware trying marketed the this I’m or addressed. it’s a outlets, displays CareCredit little – of Brian, system, squeezing how I’m but How granularity a of would more just to even the understand questions just vets awareness follow-up for I’ve countertops elective CareCredit. – around how going me? how been

Brian Doubles

A Yes. business over and decades we’ve is, of point awareness this it sale. lot built a of again, it is of at the lot

about or you – So it offers, actually and about dental that talk it. financing in when of of see the the appointment, you’re the in you benefits the appointment sitting talk for room see waiting promotional CareCredit. We providers

And so that’s the primary been channel and historically. at least has

that also financing provider a up do bit, promotional that now of actually time And so a that lot a have the booking move online, happening getting trying the at – funnel you’re is is your appointment, you’re so seeing we’re you’re We locator. what offer. to

part your that So how that you’re counter thinking of becomes treatment. about

to of successful. get well you appointment – once found pay to it’s be going you treatment So become you’re how your going advance aware braces that it’s not of it, about they And or the process go be. really is we for your actually and think appointment, actually your to whatever can through whether whole in

has we’ve awareness through marketing to other largely be a direct originated office, expanded It but of certainly over So and channels. brand nature that digital inside provider’s in time. been building more if

David Scharf

what – expenses pandemic Yes. point, the the may you years, I MyChart have mentioned over and once few just mean, reflecting particularly at on I one yes. see, the last believe over I again,

Brian Doubles

our you management they software, practice we there the is of that of for of working the And Yes. really That a inside of of mind big option so and strategy providers, of – into software integrated as regardless of business. the providers, integration want to for Epic the use the and completely top us. range critical And integrated the is can to management with Getting a is a payment be systems, have really keeping there. important their that with it office for aspect small CareCredit what we growth that’s practice part health wide dentists growth we becomes manager huge system the vats process here. imagine future XXX,XXX providers,

David Scharf

it. Got still how Venmo it’s user for about very trying had credit base of on you of honesty to users. a think you a it. users I’m younger-skewing to kind just sense this stages obviously time. has at little had the of it’s expectations in one exceeding program-specific very It’s a And there know what percentage opportunity Can should Venmo give mentioned early to think and just get, current more trying I got last you perhaps mix I get color I kind demographic. lot us the of Venmo on of thin terms follow-up initially commented though of we been files, very have believe targeted? Just a the

Brian Doubles

mean can our they to for top have and pretty spend on but huge aspirational a I customers. nothing early provide we’re a ahead tap we’re no XX mean is and Again, returns what we but to I huge screen, in specifically, seeing XX be of would be. million obviously, doubt, it’s opportunity in into mean, thought had expectations. it I – us. – I is meet Yes. what of the Venmo a this and underwriting of And that’s our is terms program just a criteria our terms this to going accounts we opportunity

done So even positive full mode in a couple only though of launch very it’s months. for

Brian Wenzel

the point we from strength ability only this I’d another data The is the have, to other get thing of here, which add right, Brian, providers. that our is

information. may about So be for may customer Venmo payment velocity, period watched a that where time, when you CLO the a affiliated. They can know think passes of

though as we a PayPal with a helps they they have actually same Venmo credit us of even underwrite. and us may have bureau, help for richness data the it the maybe So

David Scharf

much. very you Thank it. Got

Brian Doubles

Have a good day.

Jennifer Church

Thanks, we time Vanessa, for have David. one question. more


Thank you.

Oppenheimer. from Dominick Gabriele comes with Our last question

Dominick Gabriele

question. Hey, for thanks my taking much so

color If and that versus the think the But about on you I total back I go CareCredit. business if players. purpose to think just about want all general really can and we CETX to – go where the the appreciate

general between I think there buffer has label CETXs. been purpose historically, and a private

And had expect spread have you to regulators then them so And with do conversations much. with so Thanks that the follow-up. a is – closure? comfortable you have just close? of I feeling And that

Brian Doubles

with Dominic. regard purpose. had a label product we’ve conversation Thanks, don’t versus the think Yes. I general to private

all have the look loss provide feature they RSAs, run. stress some scenarios unique think we’ve the that the that buffer scenarios we’ve very right, the run, outlays. which against We a a at I of in

with you capital of to you don’t of their for comes out. even view look So when buffer really one I When we think at differently a capital take competitors. regard how our those, about output the think stress than it some

certainly risk having it comes as It’s line of this of really are of those RSA capital we And particular resiliency the really demonstrating we because adjusted not origination. customer again actually those. So to point are yields strength those in stronger it for we’re conversations and them We business product-oriented. with us with And that have and a conversations lower the the having and most provides buffer, get you returns when combine of. when the with them. to ratio this

Dominick Gabriele

Thanks adjusted pressure move overall on we forward, to the be when growth cycle good the factors And of GAAP, the you appreciate economy. back basis. risk of forward get on loan think some lot And book business the efficiency retail card average would purpose could general you size some Makes there? and so all efficiency some you. size? of about a some to so next about think of multiple a dynamics the on we obviously more sense. book. the as of if Thank your of the players should factors of efficiency long-term years? from some because those few of to the extent of argue, the the is being see I do pressure there just I you CareCredit the – you going But all is maybe over be below the obviously, call. about moving given then and you factors there’s think when loan tailwinds much. credit traditional we various between And really your how book, business some there on loan Is the the the think

Brian Doubles

Thanks, Dominic.

the what last all through think I XXXX. a trying really the investment think look out and part efficiency place going XXXX the ROA roll we our be thesis. peers the strategic in is about of then went if be So We order loss about be into I’m have back of to is mix that to said, a think I at that way ahead content in the of latter put characteristics, characteristics, have, the look year, RSA my the to and expense when generate tier underwent we we top in top of to efficiency the to ratio That I business ROA to plans to characteristics, think company outlook. revenue about profile a

that’s we’ve of million cost over upon engaged Part year think of a that. $XXX I this from benefit delivering perspective. out So

fee stimulus and terrific really revenue the the net margin is the the you on that have we be ratio impact, are bit the little ahead, impacted credit that do running model, impact That’s a at the given built I going This it honest think late bit efficiency manageable a in that that. this. see been very but to comes think by NII greater a and business balance loan the with pressure we’re I with and being foundation expenses level side. headwind you’re of to off from right, interest little short-term

get I average at leverage, be able think to as higher because business grow, CareCredit’s they operating you run see balances. other you should

those If we is to accounts. much that be you the And the associated what think as about generate don’t on marketing as peers bigger can spend those our new then ticket accounts. size with to loss have relative fact

to advantage best industry cost an peers. our are or customers, we really very acquire at competitive puts which us a So probably attractive versus

will long-term invest digital invest this, the in future. going So over The we’re several put for the to going to our to last assets future. while the that And to we continue years, manage continue play doing we’re we’re tightly efficiency. in we

Dominic. really grow our combination than having and business that’s generate it We of efficiencies. partners it, can So we and with would where I peers a versus leverage that model average how and have investing average set return operating about higher above of it’s a and probably a peers think

Dominick Gabriele

Thanks really I All much. right, appreciate it. great. so

Brian Doubles

day, good a Great. Have Dominic.


And concludes question-and-answer session. Ladies this and thank our gentlemen, you.

call Our now you thank your concluded. And we for participation. is

disconnect. now may You