Bread Financial Holdings Inc (BFH) 2023 Q2 法說會逐字稿

Good morning, and welcome to Bread Financial's Second Quarter Earnings Conference Call. My name is Emily, and I'll be coordinating your call today. (Operator Instructions) It is now my pleasure to introduce Mr. Brian Vereb, Head of Investor Relations at Bread Financial. The floor is yours.

早上好，歡迎參加麵包金融公司第二季度收益電話會議。我叫艾米麗，今天我將協調您的電話。 （操作員須知） 現在我很高興向您介紹 Bread Financial 投資者關係主管 Brian Vereb 先生。地板是你的。

Thank you. Copies of the slides we will be reviewing and the earnings release can be found on the Investor Relations section of our website. On the call today, we have Ralph Andretta, President and Chief Executive Officer of Bread Financial; and Perry Beberman, Executive Vice President and Chief Financial Officer of Bread Financial.

謝謝。我們將審查的幻燈片副本和收益發布可以在我們網站的投資者關係部分找到。今天的電話會議邀請了 Bread Financial 總裁兼首席執行官拉爾夫·安德雷塔 (Ralph Andretta)；佩里·貝伯曼 (Perry Beberman)，Bread Financial 執行副總裁兼首席財務官。

Before we begin, I would like to remind you that some of the comments made on today's call and some of the responses to your questions may contain forward-looking statements. These statements are based on management's current expectations and assumptions and are subject to the risks and uncertainties described in the company's earnings release and other filings with the SEC.

在我們開始之前，我想提醒您，今天電話會議中發表的一些評論以及對您問題的一些答复可能包含前瞻性陳述。這些聲明基於管理層當前的預期和假設，並受到公司收益報告和向 SEC 提交的其他文件中描述的風險和不確定性的影響。

Also on today's call, our speakers will reference certain non-GAAP financial measures, which we believe will provide useful information for investors. Reconciliation of those measures to GAAP are included in our quarterly earnings materials posted on our Investor Relations website at breadfinancial.com.

同樣在今天的電話會議上，我們的發言人將提到某些非公認會計準則財務指標，我們相信這些指標將為投資者提供有用的信息。這些措施與 GAAP 的調節包含在我們的投資者關係網站 breadfinancial.com 上發布的季度收益材料中。

With that, I would like to turn the call over to Ralph Andretta.

說到這裡，我想把電話轉給拉爾夫·安德烈塔 (Ralph Andretta)。

Thank you, Brian, and good morning to everyone joining the call. I'd like to start the call today by welcoming Joyce Sinclair, a veteran financial services senior executive to our Board of Directors. Joyce most recently completed a successful 30-year tenure with Northern Trust. We are thrilled to have her serve as a member of our Board as well as on our Board's compensation and human capital and risk committees. We look forward to the value she brings to the Board through extensive insights perspectives and experience.

謝謝你，布萊恩，祝所有加入電話會議的人早上好。在今天的電話會議中，我首先歡迎喬伊斯·辛克萊（Joyce Sinclair）加入我們的董事會，她是一位經驗豐富的金融服務高級管理人員。喬伊斯最近在北方信託公司完成了 30 年的成功任期。我們很高興她能擔任我們的董事會成員以及董事會薪酬、人力資本和風險委員會的成員。我們期待她通過廣泛的見解和經驗為董事會帶來價值。

Starting with the key highlights for the quarter on Slide 3. We achieved another major milestone towards our long-term financial goals in the second quarter, refinancing and reducing our parent unsecured debt by more than $500 million. Our management team had made it a priority to reduce our leverage and the company took another meaningful step forward this quarter in that regard.

從幻燈片 3 中本季度的主要亮點開始。我們在第二季度實現了長期財務目標的另一個重要里程碑，即再融資並將母公司無擔保債務減少了 5 億多美元。我們的管理團隊已將降低杠桿率作為優先事項，公司本季度在這方面又邁出了有意義的一步。

Tangible book value per share exceeded $38 at quarter end. Importantly, we continue to deliver improved tangible book value for our shareholders with growth of 23% versus the same period a year ago. Earlier today, we -- earlier today, we announced we will provide a private label credit program for Dell Technologies, a leading technology provider with the industry's broadest technology and services portfolio. The definitive agreement to acquire Dell's consumer portfolio is expected to close in the fourth quarter of this year. The Dell Pay program will include a broad suite of payment solutions and expands our position in the consumer technology market. We will continue to leverage our deep financial services industry expertise, upgraded technology and sophisticated data and analytics capabilities to drive value for our partners.

季度末每股有形賬面價值超過 38 美元。重要的是，我們繼續為股東提供更高的有形賬面價值，與去年同期相比增長了 23%。今天早些時候，我們宣布將為戴爾科技集團提供自有品牌信貸計劃，戴爾科技集團是一家領先的技術提供商，擁有業界最廣泛的技術和服務組合。收購戴爾消費產品組合的最終協議預計將於今年第四季度完成。 Dell Pay 計劃將包括一系列廣泛的支付解決方案，並擴大我們在消費技術市場的地位。我們將繼續利用我們深厚的金融服務行業專業知識、升級的技術以及先進的數據和分析能力，為我們的合作夥伴創造價值。

Moving to the economy. Numerous macroeconomic headwinds, including prolonged time inflation, rapidly rising interest rates and a tightening job market have weighed on our consumers and influenced a slowdown in credit sales. These headwinds tend to disproportionately impact moderate to low income Americans, including our customers' spending decisions. In certain areas like beauty and travel and entertainment, we are seeing continued strong year-over-year growth. However, in other areas like specialty apparel, spending has softened declining year-over-year.

轉向經濟。眾多宏觀經濟不利因素，包括長期通貨膨脹、利率迅速上升和就業市場緊縮，給我們的消費者帶來了壓力，並影響了信貸銷售的放緩。這些不利因素往往會對中低收入的美國人產生不成比例的影響，包括我們客戶的支出決定。在美容、旅遊和娛樂等某些領域，我們看到同比持續強勁增長。然而，在特種服裝等其他領域，支出同比下降幅度有所放緩。

Given the ongoing macroeconomic pressures facing consumers, we continue to proactively and responsibly tighten our underwriting and credit line management. Even prior to the pandemic, we proactively managed our exposure by tightening approval rates, pausing line increases and implementing line decreases where prudent. We will continue to closely monitor consumer health and spending behaviors and adjust to changing economic conditions.

鑑於消費者持續面臨的宏觀經濟壓力，我們繼續積極、負責任地收緊承保和信貸額度管理。甚至在大流行之前，我們就通過收緊批准率、暫停線路增加和謹慎實施線路減少來主動管理我們的風險敞口。我們將繼續密切監測消費者的健康和消費行為，並根據不斷變化的經濟狀況進行調整。

Turning to Slide 4. Our current focus areas for 2023 are growing responsibly, strengthening our balance sheet, optimizing data and technology and strategically investing in our business. Our management team is committed to driving sustainable, profitable growth that will deliver long-term shareholder value. We continue to selectively pursue new partnership opportunities that will be accretive to our business, considering both de novo and partners with existing portfolios and enhancing our balance sheet remains a top priority and is integral to our long-term strategy.

轉向幻燈片 4。我們當前 2023 年的重點領域是負責任地增長、加強我們的資產負債表、優化數據和技術以及對我們的業務進行戰略投資。我們的管理團隊致力於推動可持續的盈利增長，從而實現長期股東價值。我們繼續有選擇地尋求新的合作機會，這將有助於我們的業務增長，同時考慮從頭開始和現有投資組合的合作夥伴，增強我們的資產負債表仍然是我們的首要任務，也是我們長期戰略的組成部分。

As I mentioned, we have made additional progress building capital and reducing our parent unsecured debt in the second quarter, coupled with strong free cash flow generation, our balance sheet management actions further enhance our financial resilience and provide additional flexibility for capital utilization, including supporting continued business growth, debt reduction and future capital distribution.

正如我所提到的，第二季度我們在資本建設和減少母公司無擔保債務方面取得了更多進展，加上強勁的自由現金流生成，我們的資產負債表管理行動進一步增強了我們的財務彈性，並為資本利用提供了額外的靈活性，包括支持持續的業務增長、債務減少和未來的資本分配。

We will continue to build our capital position, refine and improve our funding structure and proactively manage our credit liquidity and interest rate risk to build our balance sheet strength. On the data and technology front, we continue to leverage innovative capabilities gained from our platform conversion, system enhancements and expanded product portfolio. We have successfully utilized machine learning for many years to build strong credit risk models to enhance underwriting, line management and collections.

我們將繼續增強資本狀況，完善和改善融資結構，積極管理信貸流動性和利率風險，增強資產負債表實力。在數據和技術方面，我們繼續利用從平台轉換、系統增強和擴展產品組合中獲得的創新能力。多年來，我們成功地利用機器學習來構建強大的信用風險模型，以增強承保、產品線管理和收款。

We will continue to invest in a range of technology innovations from data and customer analytics to self-service and digital capabilities as we continually strive to deliver exceptional value and experiences for our customers. Our goal is to continuously generate expense efficiency to reinvest in our business to support responsible growth and achieve our targeted returns.

我們將繼續投資從數據和客戶分析到自助服務和數字功能的一系列技術創新，不斷努力為客戶提供卓越的價值和體驗。我們的目標是不斷提高費用效率，對我們的業務進行再投資，以支持負責任的增長並實現我們的目標回報。

Slide 5 includes financial highlights resulting from the prudent balance sheet management actions over the past 3 years since I've joined the company. Starting with funding. We have diversified our base with direct-to-consumer deposit growth of $4.8 billion since the first quarter of 2020 as we have reached $6 billion in consumer deposits at quarter end. We remain confident in our ability to efficiently fund our long-term growth objectives and further broaden our funding base with continued growth from direct-to-consumer deposits going forward.

幻燈片 5 包含了我加入公司以來過去 3 年中審慎的資產負債表管理行動帶來的財務亮點。從資金開始。我們實現了基礎多元化，自 2020 年第一季度以來，直接面向消費者的存款增長了 48 億美元，季度末消費者存款已達到 60 億美元。我們仍然相信我們有能力有效地為我們的長期增長目標提供資金，並通過未來直接面向消費者的存款的持續增長進一步擴大我們的融資基礎。

As mentioned previously, we have made great progress executing our parent debt plan in the second quarter, steps included successfully refinancing our term loan and revolving line of credit, completing our convertible notes offering, executing our tender offer, and receiving bank board approval for a $500 million dividend to the parent company to facilitate debt reduction. As a result, this -- since 2020, we have reduced our parent level debt by 55%, paying down more than $1.7 billion.

如前所述，我們在第二季度執行母公司債務計劃方面取得了很大進展，步驟包括成功為我們的定期貸款和循環信貸額度再融資、完成我們的可轉換票據發行、執行我們的要約收購以及獲得銀行董事會批准向母公司派發 5 億美元股息，以促進債務削減。因此，自 2020 年以來，我們已將母公司級債務減少了 55%，償還了超過 17 億美元。

Additionally, since the first quarter of 2020, we have more than tripled our TCE to TA ratio. Finally, while our reserve rate remained steady to the last quarter, we expanded our credit loss absorption capacity with a reserve rate 300 basis points higher than our CECL day 1 rate in 2020. These significant accomplishments over the past 3 years demonstrate our success in strengthening our balance sheet and managing our business responsibly to deliver long-term value for shareholders.

此外，自 2020 年第一季度以來，我們的 TCE 與 TA 比率增加了兩倍多。最後，在我們的準備金率保持穩定到上個季度的同時，我們擴大了信用損失吸收能力，2020 年的準備金率比CECL 第一天利率高出300 個基點。過去3 年的這些重大成就表明我們在加強信用損失吸收能力方面取得了成功。我們的資產負債表並負責任地管理我們的業務，為股東創造長期價值。

Overall, we are pleased with our second quarter results and the progress we have achieved. Our associates continue to navigate through a changing environment with confidence and tenacity in achieving our goals, winning new partners, strengthening our balance sheet, gaining efficiencies, and providing a positive customer experience. Our leadership team appreciates their hard work and their dedication on behalf of our many stakeholders. Together, we remain focused on driving our performance to achieve sustainable, profitable growth that builds shareholder value over time.

總體而言，我們對第二季度的業績和取得的進展感到滿意。我們的員工繼續充滿信心和堅韌地應對不斷變化的環境，實現我們的目標，贏得新的合作夥伴，加強我們的資產負債表，提高效率，並提供積極的客戶體驗。我們的領導團隊感謝他們代表我們眾多利益相關者的辛勤工作和奉獻精神。我們將繼續致力於提高業績，以實現可持續的盈利增長，從而隨著時間的推移創造股東價值。

Now I'll turn it over to Perry to discuss the financials for the quarter.

現在我將把它交給佩里討論本季度的財務狀況。

Thanks, Ralph. Slide 6 provides our second quarter financial highlights. Bread Financial's credit sales were down 13% year-over-year to $7.1 billion, driven by the sale of the BJ's portfolio in the first quarter, coupled with moderating consumer spending. This was partially offset by our continued new partner growth. Additionally, we have taken action over the past year to responsibly tighten our underwriting and credit line assignments for both new and existing customers given the economic uncertainties and the economic pressures affecting a larger portion of our customer base.

謝謝，拉爾夫。幻燈片 6 提供了我們第二季度的財務亮點。受第一季度 BJ 投資組合出售以及消費者支出放緩的推動，Bread Financial 的信貸銷售同比下降 13% 至 71 億美元。我們的新合作夥伴持續增長部分抵消了這一影響。此外，鑑於經濟不確定性和影響我們大部分客戶群的經濟壓力，我們在過去一年中採取了負責任的行動，收緊了對新客戶和現有客戶的承保和信貸額度分配。

Average and end-of-period loans increased 4% and 1%, respectively, year-over-year. These increases were driven by the addition of new partners as well as further moderation in the consumer payment rate, mostly offset by the sale of the BJ's portfolio. Revenue for the quarter was $1 billion, up 7%, resulting from higher average credit card balances and noninterest income, partially offset by increased reversals of interest and fees resulting from higher gross losses in the quarter.

平均貸款和期末貸款同比分別增長 4% 和 1%。這些增長是由新合作夥伴的增加以及消費者支付率的進一步放緩推動的，但大部分被 BJ 投資組合的出售所抵消。本季度收入為 10 億美元，增長 7%，歸因於平均信用卡餘額和非利息收入的增加，但部分被本季度總虧損增加導致的利息和費用沖銷增加所抵消。

Total noninterest expenses increased 12% year-over-year. Looking at the financials in more detail on Slide 7. Total net interest income was up 1% from the second quarter of 2022 and with NIM nearly flat year-over-year. Total noninterest expenses increased 12% from the second quarter of 2022, yet declined 3% sequentially. The year-over-year increase was partially the result of higher employee compensation and benefits costs due to increased hiring to support our investment in both technology and digital capabilities. We also incurred elevated collection costs as well as higher card and processing costs, including fraud.

非利息支出總額同比增長 12%。請參閱幻燈片 7 更詳細地查看財務數據。淨利息收入總額較 2022 年第二季度增長 1%，淨息差幾乎與去年同期持平。非利息支出總額較 2022 年第二季度增長 12%，但環比下降 3%。同比增長的部分原因是員工薪酬和福利成本增加，這是由於增加招聘來支持我們對技術和數字能力的投資。我們還產生了更高的收款成本以及更高的卡和處理成本，包括欺詐成本。

The sequential decline in expenses was driven by lower variable costs from lower sales and strategic credit tightening and expense efficiencies. We expect certain expense efficiencies to continue in the third quarter, resulting in lower sequential expenses in the third quarter, including an approximately $12 million sequential decline in depreciation and amortization costs. Additional details on expense drivers can be found in the appendix of the slide deck. Income from continuing operations was up $52 million for the quarter versus the second quarter of 2022, reflecting a lower provision for credit losses while PPNR marginally increased year-over-year.

費用環比下降的原因是銷售額下降、戰略性信貸緊縮和費用效率帶來的可變成本下降。我們預計第三季度將繼續保持某些費用效率，從而導致第三季度的連續費用下降，其中折舊和攤銷成本連續下降約 1200 萬美元。有關費用驅動因素的更多詳細信息可以在幻燈片的附錄中找到。與 2022 年第二季度相比，本季度持續經營收入增加了 5200 萬美元，反映出信貸損失準備金減少，而 PPNR 同比略有增加。

Turning to Slide 8. Loan yields continued to increase, up 110 basis points year-over-year. Loan yields benefited from an upward trend in the prime rate, causing our variable price loans to move higher in tandem. Both loan yield and net interest margin were pressured by an increase in the reversal of interest and fees related to elevated credit losses. Funding costs continue to rise and remain in line with our expectations.

轉向幻燈片 8。貸款收益率繼續上升，同比上升 110 個基點。貸款收益率受益於最優惠利率的上升趨勢，導致我們的可變價格貸款同步走高。貸款收益率和淨息差均受到信貸損失增加相關利息和費用逆轉增加的壓力。融資成本繼續上升，與我們的預期保持一致。

As you can see on the bottom right graph, we continue to improve our funding mix through our actions to grow our direct-to-consumer deposits while maintaining the flexibility of secured and wholesale funding. The reduction in secured borrowings this quarter is a result of the sale of BJ's portfolio in February. As Ralph discussed, we are pleased with the progress we made during the quarter in executing our parent debt plan, including refinancing our term loan and revolving line of credit, extending certain of our debt maturities and reducing our unsecured debt.

正如您在右下圖所示的那樣，我們通過增加直接面向消費者的存款的行動，繼續改善我們的融資組合，同時保持擔保和批發融資的靈活性。本季度擔保借款的減少是由於 2 月份 BJ 投資組合的出售所致。正如拉爾夫所討論的，我們對本季度在執行母公司債務計劃方面取得的進展感到滿意，包括為我們的定期貸款和循環信貸額度再融資、延長某些債務期限以及減少我們的無擔保債務。

Turning to Slide 9. We are proud of the success and funding diversification we have achieved from growth in our direct-to-consumer deposits. Our direct-to-consumer average deposits grew 51% year-over-year to $5.8 billion for the quarter with current balances standing at over $6 billion. These deposits, which are over 90% FDIC insured represented 33% of our total funding mix versus 22% a year ago. Notably, we experienced net positive inflows of direct-to-consumer deposit balances during each week of the second quarter.

轉向幻燈片 9。我們對直接面向消費者存款的增長所取得的成功和資金多元化感到自豪。本季度我們的直接面向消費者平均存款同比增長 51%，達到 58 億美元，當前餘額超過 60 億美元。這些存款占我們總資金組合的 33%，而一年前為 22%，超過 90% 的 FDIC 承保。值得注意的是，第二季度的每週，我們都經歷了直接面向消費者的存款餘額淨正流入。

As expected, we are seeing more competition in the online deposit space, we'll remain opportunistic, yet prudent as we continue to grow our direct-to-consumer funding. Given the repricing characteristics of our credit card portfolio and low deposit gathering costs, we are able to offer very competitive rates to drive growth and maintain balance stability.

正如預期的那樣，我們看到在線存款領域的競爭更加激烈，隨著我們繼續增加直接面向消費者的融資，我們將保持機會主義，但仍保持謹慎態度。鑑於我們信用卡組合的重新定價特徵和較低的存款收集成本，我們能夠提供極具競爭力的利率來推動增長並保持餘額穩定。

Moving to credit on Slide 10. Our delinquency rate for the second quarter was 5.5%, down slightly from the first quarter as expected, with the impact from the transition of our credit card processing services abating. The net loss rate was 8.0% for the quarter. We estimate the second quarter rate was elevated by approximately 100 basis points from the customer accommodations made last year related to the transition of our credit card processing services. The reserve rate remained flat sequentially at 12.3% as key forward-looking macroeconomic indicators began showing signs of stability. We intend to maintain a conservative weighting of economic scenarios in our credit reserve model in anticipation of ongoing macroeconomic challenges and the consequential impact on our credit reserves. From what we see now both in terms of the internal credit quality characteristics of our loan portfolio and the macro outlook, we believe the reserve rate may have peaked and will now hold steady for a period of time.

轉到幻燈片 10 上的信貸。我們第二季度的拖欠率為 5.5%，比預期的第一季度略有下降，信用卡處理服務轉型的影響減弱。該季度淨虧損率為8.0%。我們估計第二季度的利率比去年因信用卡處理服務轉型而進行的客戶住宿提高了約 100 個基點。由於主要前瞻性宏觀經濟指標開始顯示出穩定跡象，準備金率環比保持在 12.3%。我們打算在信貸儲備模型中維持對經濟情景的保守權重，以應對持續的宏觀經濟挑戰及其對信貸儲備的影響。從我們目前貸款組合的內部信用質量特徵和宏觀前景來看，我們認為準備金率可能已經見頂，並將在一段時間內保持穩定。

Additionally, our credit risk score distribution mix improved modestly from the first quarter. Our percentage of cardholders with 660 plus credit score remains materially above prepandemic levels given our prudent credit tightening mix and a more diversified product mix with co-branded proprietary cards representing a larger portion of the portfolio.

此外，我們的信用風險評分分佈組合較第一季度略有改善。鑑於我們審慎的信貸緊縮組合以及更加多元化的產品組合（聯名自營卡在投資組合中所佔比例更大），我們信用評分在660 分以上的持卡人比例仍遠高於疫情前的水平。

Turning to Slide 11. We have continued to enhance our financial resilience by taking a number of actions. As Ralph mentioned in his remarks, we continue to proactively manage our credit risk to protect our balance sheet in the face of more challenging economic conditions. Consistently managing our risk tolerance ensures we are appropriately compensated for the risk we take. We closely monitor our projected returns with the goal of generating strong risk-adjusted margins above our peers. Additionally, we continue to responsibly manage risk return trade-off by tightened credit, which includes pausing credit line increases and implementing credit line decreases when necessary.

轉向幻燈片 11。我們通過採取一系列行動繼續增強我們的財務彈性。正如拉爾夫在講話中提到的那樣，面對更具挑戰性的經濟狀況，我們將繼續主動管理信用風險，以保護我們的資產負債表。持續管理我們的風險承受能力可確保我們為所承擔的風險獲得適當的補償。我們密切監控我們的預期回報，目標是產生高於同行的強勁的風險調整利潤率。此外，我們繼續通過收緊信貸來負責任地管理風險回報權衡，其中包括暫停信貸額度增加並在必要時實施信貸額度減少。

We remain confident in our disciplined credit risk management and our ability to drive sustainable value through the full economic cycle. We are committed to delivering responsible, profitable growth even if it means slowing growth during more uncertain economic periods.

我們對嚴格的信用風險管理以及在整個經濟周期中推動可持續價值的能力充滿信心。我們致力於實現負責任的盈利增長，即使這意味著在更加不確定的經濟時期增長放緩。

Moving to Slide 12. Ralph already touched on the notable improvements we've achieved in our capital metrics and debt levels. While we have made substantial improvements to strengthen our balance sheet since 2020, we still have some additional opportunities ahead. Specifically, we aim to build our total company capital metrics closer to those of our peers, while reducing our double leverage ratio from where we are today. We will balance achieving these targets with continued investments in our business and responsible growth aligned with our capital priorities.

轉到幻燈片 12。拉爾夫已經談到了我們在資本指標和債務水平方面取得的顯著改進。儘管自 2020 年以來我們在強化資產負債表方面取得了實質性進展，但我們仍然面臨著一些額外的機會。具體來說，我們的目標是使我們的公司總資本指標更接近同行，同時降低我們目前的雙槓桿率。我們將在實現這些目標與對業務的持續投資和與我們的資本優先事項相一致的負責任增長之間取得平衡。

Our actions over the past 3 years provide greater financial flexibility to support our long-term growth plans which we will detail during our Investor Day in 2024. Before moving to our 2023 outlook, I would highlight the improvement in our tangible book value per share as shown on the graph on the right side of Slide 12. We have generated a 33% compound annual growth rate in our tangible book value per common share since the first quarter of 2020, and given our strong cash flow generation, we expect to continue to further grow our tangible book value over time. This growth, combined with our meaningfully improved financial resilience and a strengthened balance sheet should yield a company valuation that is a multiple of tangible book value.

我們過去3 年的行動提供了更大的財務靈活性，以支持我們的長期增長計劃，我們將在2024 年投資者日期間詳細介紹這些計劃。在展望2023 年展望之前，我想強調一下我們每股有形賬面價值的改善：如幻燈片12 右側的圖表所示。自2020 年第一季度以來，我們的每股有形賬面價值實現了33% 的複合年增長率，並且鑑於我們強勁的現金流生成，我們預計將繼續隨著時間的推移，進一步增加我們的有形賬面價值。這種增長，加上我們顯著改善的財務彈性和強化的資產負債表，應該會產生公司估值，是有形賬面價值的倍數。

We remain confident in our strategic direction and we'll continue to execute on our initiatives to build long-term value. Finally, Slide 13 provides our financial outlook for the full year 2023. Our financial outlook has been updated to reflect slowing sales growth as a result of both self-moderated consumer spending and our targeted credit tightening. For the full year, average loans are expected to grow in the low to mid-single-digit range relative to 2022 based on the latest economic outlook impacted consumer spend, our credit strategies and current new partner pipeline, including the announcement of the Dell consumer credit portfolio acquisition, which is expected to close in the fourth quarter of this year. The Dell acquired portfolio is expected to be less than $500 million, which is in our historical sweet spot for portfolio acquisitions and is projected to drive strong risk-adjusted returns.

我們對我們的戰略方向仍然充滿信心，我們將繼續執行我們的舉措，以創造長期價值。最後，幻燈片 13 提供了我們對 2023 年全年的財務展望。我們的財務展望已更新，以反映由於自我調節的消費者支出和我們有針對性的信貸緊縮而導致的銷售增長放緩。根據影響消費者支出的最新經濟前景、我們的信貸策略和當前的新合作夥伴渠道（包括戴爾消費者的公告），全年平均貸款預計相對 2022 年將在低至中個位數範圍內增長信貸投資組合收購預計將於今年第四季度完成。戴爾收購的投資組合預計不到 5 億美元，這是我們投資組合收購的歷史最佳點，預計將帶來強勁的風險調整回報。

We expect revenue growth to be slightly above our average loan growth in 2023, excluding the gain on sale from the portfolio sale. With a full year net interest margin similar to the 2022 full year rate of 19.2%. We continue to expect second half 2023 total expenses to be lower than the first half of the year with third quarter expenses to be lower than the second quarter, driven by improved operating efficiencies related to our technology modernization efforts and lower intangible amortization expense.

我們預計 2023 年收入增長將略高於我們的平均貸款增長，不包括投資組合銷售的銷售收益。全年淨息差與 2022 年全年 19.2% 相似。我們繼續預計 2023 年下半年的總支出將低於上半年，第三季度的支出將低於第二季度，這主要是由於我們的技術現代化努力提高了運營效率以及無形攤銷費用的降低。

With a previously capitalized software development project reaching the end of its useful life in the second quarter, we forecast depreciation and amortization expense to decline in the third quarter to a run rate below $25 million per quarter. We have refined our net loss rate outlook as we now anticipate the full year 2023 rate will be in the low to mid-7% range, including impacts from the transition of our credit card processing services.

隨著先前資本化的軟件開發項目在第二季度達到其使用壽命，我們預計第三季度的折舊和攤銷費用將下降至每季度 2500 萬美元以下。我們已經完善了淨損失率展望，因為我們現在預計 2023 年全年淨損失率將在 7% 的低至中水平範圍內，其中包括信用卡處理服務轉型的影響。

While our tighter underwriting and credit line management should benefit future loss performance, these actions create a near-term headwind for the remainder of 2023's loss rate by lowering our projected loan balance which forms the denominator in the net loss rate equation.

雖然我們更嚴格的承保和信貸額度管理應該有利於未來的損失表現，但這些行動降低了我們的預計貸款餘額（構成淨損失率方程的分母），從而為2023 年剩餘時間的損失率帶來短期阻力。

Our economic outlook assumes inflation remains elevated, but moderates with a gradual increase in the unemployment rate for the remainder of 2023. We expect the third quarter net loss rate to be around 7%, with July representing the last month that is anticipated to reflect an impact from the transition of our credit card processing services. Our full year normalized effective tax rate is expected to remain in the range of 25% to 26%, with quarter-over-quarter variability to timing of certain discrete items.

我們的經我們信用卡處理服務轉型的影響。我們的全年標準化有效稅率預計將保持在 25% 至 26% 的範圍內，但某些離散項目的時間安排會出現季度間的變化。

Finally, this morning, we announced that the Board approved a share repurchase authorization intended to offset share count dilution in 2023 bringing our weighted average diluted share count back closer to 50 million shares for the second half of 2023.

最後，今天早上，我們宣布董事會批准了一項股票回購授權，旨在抵消 2023 年的股票數量稀釋，使 2023 年下半年的加權平均稀釋股票數量回到接近 5000 萬股。

In closing, we are prudently managing risk return trade-offs through a challenging macroeconomic environment while continuing to strategically invest and drive long-term value for our stakeholders.

最後，我們在充滿挑戰的宏觀經濟環境中審慎地管理風險回報權衡，同時繼續進行戰略投資並為利益相關者帶來長期價值。

Operator, we are now ready to open up the lines for questions.

接線員，我們現在準備開放提問線路。

(Operator Instructions) Our first question today comes from the line of Sanjay Sakhrani with KBW.

（操作員說明）我們今天的第一個問題來自 KBW 的 Sanjay Sakhrani 線路。

Good results in a tough backdrop. First question for Ralph. As it seems we're moving towards this final rule around late fees, pretty much it seems at the same level as the preliminary proposal. Maybe you could just give us an update on the plan to offset the impact? And what kind of feedback you're getting from your partners?

在艱難的背景下取得了良好的成績。第一個問題是問拉爾夫。我們似乎正在朝著有關滯納金的最終規則邁進，它幾乎與初步提案處於同一水平。也許您可以向我們提供有關抵消影響的計劃的最新信息嗎？您從合作夥伴那裡得到了什麼樣的反饋？

Yes, Sanjay I'll start and then I'll let Perry chime in. We've been anticipating this for a while, and we continue to look at alternative ways to close what gaps this may open in our -- with our organization. So the themes haven't changed. We're looking at APR, we're looking at fees for credit and we're looking at other things such as where do we draw the line on underwriting for credit. Those are all things that we've been looking at since the beginning, and we'll continue to look at as we move forward.

是的，桑傑，我先開始，然後讓佩里插話。我們已經預料到這一點有一段時間了，我們將繼續尋找其他方法來縮小這可能在我們的組織中造成的差距。所以主題沒有改變。我們正在研究年利率，我們正在研究信貸費用，我們正在研究其他事情，例如我們在信貸承保方面的界限在哪裡。這些都是我們從一開始就一直在關注的事情，並且我們將在前進的過程中繼續關注。

Anything to add, Perry?

有什麼要補充的嗎，佩里？

No, I was going to say, similar to what you're probably already aware and you've heard the rules aren't final, expecting something possibly in October. I expect those rules will likely be challenged in the COFI industry associations and that can result in a lengthy process before any new rules become effective. And I think Ralph talked about all the different things. But throughout this, the team is working closely with partners. And our objective is to really try to make sure that our partner economics are not impacted from this. We're in this together is what's called a partnership.

不，我想說的是，類似於您可能已經知道的情況，並且您聽說規則不是最終的，預計十月份可能會發生。我預計這些規則可能會在 COFI 行業協會中受到挑戰，這可能會導致任何新規則生效之前需要一個漫長的過程。我認為拉爾夫談到了所有不同的事情。但在整個過程中，團隊一直與合作夥伴密切合作。我們的目標是真正努力確保我們的合作夥伴經濟不受此影響。我們在一起就是所謂的伙伴關係。

Okay. And then just a follow-up for you, Perry, the slower growth, I assume a lot of this slower growth is being driven by your tightening the box a little bit. I'm just curious is that the right assumption? Or do you -- are you actually seeing diminishing demand for loans? And then maybe you could just also help us think about the capital return. It's a good positive step, the small capital return, but -- at what point can you ramp it up in terms of the TCE ratio?

好的。然後是你的後續行動，佩里，增長放緩，我認為這種增長放緩很大程度上是由你稍微收緊限制所推動的。我只是好奇這是正確的假設嗎？或者你真的看到貸款需求在減少嗎？然後也許你也可以幫助我們考慮資本回報。這是一個很好的積極步驟，小額資本回報，但是 - 在什麼時候可以提高 TCE 比率？

Yes. So related to the outlook we gave on the consumer loan growth. I'd say it's a combination of 2 things. One, our own credit tightening, but also when you think about things we talked about with the key economy and the people who are most impacted by inflation, they're self-moderating their spend. So we are seeing some slowing in moderating spend, and that's built into our outlook. So it's a combination of those 2 things that are impacting loan growth as well when you have periods of elevated gross losses that also can temper the growth by, say, a percentage point at this time.

是的。這與我們對消費貸款增長的展望有關。我想說這是兩件事的結合。一是我們自己的信貸緊縮，但當你想到我們與主要經濟體和受通脹影響最嚴重的人們談論的事情時，他們正在自我調節支出。因此，我們看到支出放緩有所放緩，這已納入我們的前景之中。因此，這兩件事的結合也會影響貸款增長，當你經歷一段時期的總損失較高時，這也可能會抑制增長，比如此時一個百分點。

As it relates to the capital returns, I think Ralph has stated very clearly in the past what our capital priorities are. We're going to continue to strengthen our balance sheet, make sure we improve our capital ratios as we set those targets, continue use capital, pay down debt, support growth in the business. So really, this repurchase is nothing more than what is already in our capital plan, and we'll call good housekeeping and keeping our share count around that 50 million range.

由於涉及到資本回報，我認為拉爾夫過去已經非常清楚地說明了我們的資本優先事項是什麼。我們將繼續加強我們的資產負債表，確保在設定這些目標時提高我們的資本比率，繼續使用資本，償還債務，支持業務增長。事實上，這次回購只不過是我們資本計劃中已有的內容，我們稱之為良好的內務管理，並將我們的股份數量保持在 5000 萬股左右。

Our next question comes from Robert Napoli with William Blair.

我們的下一個問題來自羅伯特·那不勒斯和威廉·布萊爾。

And congratulations on the dramatic improvement in the balance sheet. That's really appreciated, pretty substantial. So on your -- in your presentation, Ralph and Perry, you do kind of reiterate you're comfortable with 6% charge-off rate through the cycle. We're above 6% now. What gives you the confidence in that? It looks to me like your sub -- your mix from a couple of years ago has actually become a little bit more subprime. So I just would like to understand how you have confidence in that type of a charge-off rate through a cycle.

並祝賀資產負債表的顯著改善。真的很感激，相當可觀。因此，拉爾夫和佩里，在你們的演講中，你們確實重申了你們對整個週期 6% 的沖銷率感到滿意。我們現在已經超過6%了。是什麼讓您對此充滿信心？在我看來，這就像你的次級貸款——幾年前你的組合實際上已經變得更加次級貸款了。所以我只是想了解您對整個週期的這種沖銷率有何信心。

Yes. I think the way to think about it is when you look at through the cycles and when we've evaluated cycles, a cycle can be a 10-year from peak-to-peak, trough-to-trough, 10 to 15 years. So you're going to have periods of time if you say we're going to run through the cycle average of 6%, you're going to have years -- quarters and years where you're above 6% and then you're going to have periods when you're below 6%.

是的。我認為思考這個問題的方法是，當你審視週期並評估週期時，一個週期可以是 10 年，從高峰到高峰，從低谷到低谷，10 到 15 年。因此，如果你說我們將經歷 6% 的周期平均值，那麼你將會有一段時間，你將會有幾年、幾個季度和幾年，你的增長率會高於 6%，然後你’會有一段時期您的血脂濃度低於6%。

Our credit profile continues to improve compared to where we were pre-pandemic. And some of the movement that you just noted, when you look back, say, a year ago, was we had BJs in our portfolio, which was a greater mix in there. So that had a better-than-average credit score. So that coming out, new partners coming in, each partner has a different set of credit profile, but we are managing this over time to achieve that 6%. So really, in terms of when we come back below 6% is going to be much dependent on when the economy improves. And then expect a prolong period that will be at or below 6%, so you blend back out.

與大流行前相比，我們的信用狀況繼續改善。你剛才注意到的一些變化，當你回顧過去時，比如一年前，我們的投資組合中有 BJ，這是一個更大的組合。所以它的信用評分高於平均水平。因此，隨著新合作夥伴的出現，每個合作夥伴都有一套不同的信用狀況，但我們會隨著時間的推移進行管理，以實現 6% 的目標。因此，實際上，我們何時回到 6% 以下將在很大程度上取決於經濟何時改善。然後預計會在很長一段時間內保持在或低於 6%，因此您會重新混合。

I hear you. I mean -- but unemployment is pretty low. So I mean that's kind of a challenge. I don't know that we get unemployment much lower than it is today in the future. But -- and just on the Dell win is nice to see. Maybe a commentary on the pipeline of potential new business? And does Dell come with a portfolio?

我聽到了。我的意思是——但失業率相當低。所以我的意思是這是一個挑戰。我不知道未來我們的失業率是否會比今天低很多。但是——就戴爾的勝利而言，這是令人高興的。也許是對潛在新業務的評論？戴爾有產品組合嗎？

Yes. This is Ralph, yes, Dell comes with a portfolio around our sweet spot. So we're very excited to onboard them in the fourth quarter. The pipeline remains very robust, and it's robust up and down the line from de novos to those partners with portfolios and one of the things that we are really excited about is we can compete up and down that line for the $100 million portfolios and the $500 million portfolios and above because we have an array of products now that can address all consumers' needs. So we're excited about it. We're getting invited to a lot of RFPs and business development continues to be strong.

是的。這是拉爾夫，是的，戴爾針對我們的最佳位置提供了一系列產品組合。因此，我們非常高興能夠在第四季度加入他們。管道仍然非常強勁，從頭開始到那些擁有投資組合的合作夥伴，它的上下都很強勁，我們真正興奮的事情之一是我們可以在 1 億美元的投資組合和 500 美元的投資組合中上下競爭。百萬以上的產品組合，因為我們現在擁有一系列可以滿足所有消費者需求的產品。所以我們對此感到興奮。我們收到了很多 RFP 的邀請，並且業務發展繼續強勁。

I want to follow back up on your point about that unemployment is low right now. That's absolutely a fair point. And the thing that we've talked about for the past year, what's driving our loss rate up right now is the elevated level of inflation and that persistently high inflation that consumers are experiencing, right? I mean if you think about what consumers have experienced recently, the average American earned $67,000. Well, their monthly bill is up $250 from a year ago and $750 from 2 years ago. And that's what's putting pressure on the consumers and their ability to pay. So while unemployment is low, the real problem is inflation and persistent inflation that's impacting moderate and lower income Americans. So -- and that's what we're all so focused on what the Fed is doing, are they going to get inflation under control, as inflation eases that is able to put -- give relief to the consumers.

我想跟進您關於目前失業率較低的觀點。這絕對是一個公平的觀點。我們在過去一年中談論的事情是，現在推動我們損失率上升的是通貨膨脹水平的升高以及消費者正在經歷的持續高通脹，對吧？我的意思是，如果你考慮一下消費者最近的經歷，就會發現美國人的平均收入為 67,000 美元。嗯，他們每月的賬單比一年前增加了 250 美元，比兩年前增加了 750 美元。這就是給消費者及其支付能力帶來壓力的原因。因此，雖然失業率很低，但真正的問題是通貨膨脹和持續的通貨膨脹，這正在影響中低收入的美國人。因此，這就是我們大家都非常關注美聯儲正在做的事情，隨著通脹的緩解，他們是否會控制通脹，從而減輕消費者的負擔。

And that's what you would expect then wage growth outpace inflation and then consumers can feel that relief. So these are all different periods when you're in different economic cycles, and this 1 is really inflation-driven that's causing the pressure. So over time, that's what I said earlier, I expect inflation to come down, which will create some relief for our broader consumers. And then yes, unemployment may tick up that could replace some of that, but I don't expect it to be a compounding impact.

這就是你所期望的，然後工資增長超過通貨膨脹，然後消費者就會感到寬慰。因此，這些都是處於不同經濟周期的不同時期，而這實際上是通貨膨脹驅動的，造成了壓力。因此，隨著時間的推移，正如我之前所說，我預計通脹將會下降，這將為我們更廣泛的消費者帶來一些緩解。然後，是的，失業率可能會上升，這可能會取代部分失業，但我預計這不會產生復合影響。

Just to sneak in 1 more, student loans. What's your effect -- view of your analysis of the effect on your business from the repayment of student loans?

只是為了偷偷多加一項，學生貸款。您對償還學生貸款對您的業務影響的分析有何影響？

Yes. So we have good line of sight to that around student loans. When we underwrite customers, who have a student loan, we can see that. We monitor their performance and then we take action as necessary. And what I'd say is less than 1/4 of our portfolio have a student loan but what I think is going to happen while we expect there -- we know what happened with the ruling that they can't forgive debt outright.

是的。因此，我們對學生貸款有很好的了解。當我們為擁有學生貸款的客戶承保時，我們可以看到這一點。我們監控他們的表現，然後根據需要採取行動。我想說的是，我們的投資組合中不到 1/4 有學生貸款，但我認為在我們預期的情況下將會發生的事情 - 我們知道他們不能完全免除債務的裁決發生了什麼。

The administration is working to come up with other ways to give some relief to consumers. And that's something that we're watching. I think you're seeing the Department of Education has within their rights to recalculate how the payment requirements are determined in terms of minimum payment as a percent of discretionary income.

政府正在努力想出其他方法來減輕消費者的負擔。這就是我們正在關注的事情。我認為您看到教育部有權重新計算如何根據最低付款佔可自由支配收入的百分比來確定付款要求。

So they're able to look at, hey, what -- how do they calculate the per income and then moving from 10% of discretionary income to pay down student debt to 5% and then making it $0 for people who have minimum wage or waiving that entirely for people at 20 to 25 years of it. So I don't think it's going to have a large impact, but it's something we actively will monitor.

所以他們能夠看看，嘿，他們如何計算人均收入，然後從可自由支配收入的 10% 減少學生債務到 5%，然後將最低工資或最低工資的人的人均收入設為 0 美元對於年滿20至25 歲的人來說，完全放棄這一權利。所以我認為這不會產生很大的影響，但我們會積極監控。

Our next question comes from Mihir Bhatia with Bank of America Merrill Lynch.

我們的下一個問題來自美銀美林的 Mihir Bhatia。

Maybe I just want to start with the second quarter. And like what changed during the second quarter specifically, right? Is there something you're seeing in the data that's giving you pause? Because it sounds like you tightened underwriting further in the quarter, which is leading the slower sales growth. And then from there, you go to slower loan growth. You also upticked your credit guidance. Again, I think there's some -- it sounded like partly denominator effect in there. But I guess what changed in the past 3 months, second quarter just come in a little below your expectations? Are you seeing something in the macro, something in your own data? Just trying to understand what's different today versus 3 months ago because I think most people like most investors are talking up soft landing, right? So just what's changing in your data or what you're seeing?

也許我只想從第二季度開始。就像第二季度發生的具體變化一樣，對吧？您在數據中看到的某些內容是否讓您猶豫不決？因為聽起來您在本季度進一步收緊了承保，這導致銷售增長放緩。然後，貸款增長就會放緩。您還提高了信用指導。再說一遍，我認為其中存在一些——聽起來像是部分分母效應。但我想過去三個月發生了什麼變化，第二季度的業績只是略低於您的預期？您是否在宏觀中看到了一些東西，在您自己的數據中看到了一些東西？只是想了解今天與 3 個月前相比有何不同，因為我認為大多數人和大多數投資者一樣都在談論軟著陸，對嗎？那麼您的數據或您所看到的到底發生了什麼變化？

Yes. It's a really good question. And so let me start by telling out what's going on with the economy more broadly and then how that informs the way we think about credit and then how that -- how we're seeing that play itself through in actual performance of consumers. So when we think about the economy, look, we think the economy and the consumer is resilient. So we'll start with that. But there's a lot of uncertainty in terms of how they're dealing with the persistent headwinds that are out there. And while some of the signs are steadying and even showing signs of improvement, the economy is starting to slow. I mean if we look at U.S. retail sales year-over-year since March, they're only up 1% to 2%, and that's with inflation north of 3%. So that means real spending is down.

是的。這是一個非常好的問題。因此，讓我首先告訴大家更廣泛的經濟狀況，然後這如何影響我們對信貸的思考方式，然後是我們如何看待它在消費者的實際表現中發揮作用。因此，當我們考慮經濟時，我們認為經濟和消費者俱有彈性。那麼我們就從這個開始吧。但他們如何應對持續存在的不利因素存在很多不確定性。儘管一些跡象正在趨於穩定，甚至出現改善的跡象，但經濟正在開始放緩。我的意思是，如果我們看一下自 3 月份以來美國零售銷售的同比情況，它們只增長了 1% 到 2%，而這還是在通貨膨脹率超過 3% 的情況下。這意味著實際支出下降。

That's the lowest level since 2019. And you think back to that point, that's significant because a lot of economists were concerned about a potential recession back then before it was preempted by the pandemic. And so during this period of time, inflation has remained elevated, while it's been improving. If you think about shelter and food, they're still significantly up year-over-year. And if you think about the comment I made about that average consumer makes $67,000 and how much more they're paying in their monthly bills today.

這是自 2019 年以來的最低水平。回想一下這一點，這很重要，因為當時許多經濟學家都擔心在疫情爆發之前可能出現經濟衰退。因此，在這段時間裡，通貨膨脹率一直保持在較高水平，同時也在不斷改善。如果考慮到住房和食物，它們仍然同比大幅上漲。如果你想一想我關於消費者平均收入 67,000 美元的評論，以及他們今天每月支付的賬單多了多少。

We're seeing some headlines out there. There's more layoffs coming. You see the impact of higher interest rates are starting to pull through. Consumer sentiment fell in April and May, but yet the good news is you're starting to see, okay, we had June sentiment improved, wage growth outpaced inflation for the first time since February of 2021. But that compounding effect over that period of time is weighing on consumers.

我們看到了一些頭條新聞。更多裁員即將到來。您會看到利率上升的影響開始顯現。 4 月和 5 月消費者信心下降，但好消息是你開始看到，好吧，我們 6 月信心有所改善，工資增長自 2021 年 2 月以來首次超過通脹。時間正在壓垮消費者。

So that's forward while the market is steady, both in terms of job market and the stock market, that sounds good. So those factors are improving consumer sentiment in the month of June. That said, we're seeing pressure in sales in July and we hear and listen to our partners. So I think that's kind of caused a little bit of a contraction in the third quarter.

因此，在市場穩定的情況下，無論是就業市場還是股市，這聽起來都不錯。因此，這些因素正在改善 6 月份的消費者信心。也就是說，我們在 7 月份看到了銷售壓力，我們聽取了合作夥伴的意見。所以我認為這在某種程度上導致了第三季度的收縮。

And this is all about the key economy, we've talked about many times in the past where you think about us as a full spectrum lender, right? Modern middle income Americans are more affected by the economic conditions than upper, I'll say, middle-class Americans. So most of these folks have depleted their savings. It's a growing cohort of people out there who are struggling to make their cost every month due to the things, I talked about shelter and food prices that are way up.

這都是關於關鍵經濟的，我們過去多次討論過，您認為我們是一家全方位的貸款機構，對嗎？現代中等收入美國人比上層（我會說，中產階級）美國人更容易受到經濟狀況的影響。所以這些人中的大多數人已經耗盡了他們的積蓄。由於住房和食品價格大幅上漲，越來越多的人每個月都在努力維持生計。

So we're observing consumers are doing the best they can to work through this, but they're feeling the pressure and they're adjusting their spend. And the slower spend that we're observing is happening across all the consumer groups, but really exaggerated for lower risk score customers. So that's what we're watching. And then we're doing credit pullbacks along the way, not like we just started this quarter. But as a compounding effect of those credit pullbacks and now we're getting more line of sight into consumer demand pulling back, coupled with our actions gives us better line of sight into what the back half of the year is looking like. And honestly, we need a prolonged period where household wage growth outpaces this inflation with employment remaining steady for these customers, I think, to resume the type of robust spending.

因此，我們觀察到消費者正在盡最大努力來解決這個問題，但他們感受到了壓力，正在調整支出。我們觀察到，所有消費者群體的支出都在放緩，但對於風險評分較低的客戶來說，這種情況確實被誇大了。這就是我們正在關注的。然後我們一路上進行信貸回調，而不是像本季度剛剛開始的那樣。但由於這些信貸回落的複合效應，現在我們對消費者需求回落有了更多的了解，再加上我們的行動讓我們更好地了解今年下半年的情況。老實說，我認為，我們需要很長一段時間，讓家庭工資增長超過通脹，同時這些客戶的就業保持穩定，才能恢復強勁的支出。

While they're still spending, we're just saying that it's a little more tempered than what we thought it was going to be. And we're being -- we've stated, Ralph and I said many times, we're focused on responsible growth.

雖然他們仍在花錢，但我們只是說，他們的支出比我們想像的要溫和一些。我們已經說過，拉爾夫和我多次說過，我們專注於負責任的增長。

No, I appreciate that. It's quite helpful for us. I just wanted to follow up quickly on -- I think on Sanjay's question. In the answer, I think, Perry -- I think it was you who said something about like you're trying to make sure partners' economics are not impacted by the late fee rule. Can you just expand on that some more, I guess, maybe take the opportunity to expand on just the discussion with your partners, how are they thinking about the issue? How much attention are they paying to it? How willing are they making -- are they to make changes to the program to account for it?

不，我很欣賞這一點。這對我們很有幫助。我只是想快速跟進——我想桑傑的問題。在回答中，我想，佩里——我想是你說了一些類似的話，比如你試圖確保合作夥伴的經濟不會受到滯納金規則的影響。我想，您能否再擴展一下這一點，也許藉此機會擴展一下與您的合作夥伴的討論，他們是如何看待這個問題的？他們對此有多少關注？他們是否願意對計劃進行更改以解決這一問題？

Yes. What I would say is that we're having productive discussions with the partners. I think they appreciate the fact that we have to make some contractual changes, pricing changes and the ones that Ralph mentioned. And without some of those adjustments, there's going to -- or perhaps even with some of their own contracts, we may have to reduce the people we're able to underwrite. And that would mean restricting credit, which then could also impact our ability to, I'll say, enable the sale. So those are conversations they probably look different for each partner. Some partners are going to be more impacted by this proposed rule change than others.

是的。我想說的是，我們正在與合作夥伴進行富有成效的討論。我認為他們意識到我們必須做出一些合同變更、定價變更以及拉爾夫提到的變更。如果不進行一些調整，甚至可能根據他們自己的一些合同，我們可能不得不減少我們能夠承保的人員。這意味著限制信貸，這也可能會影響我們的銷售能力。因此，這些對話對於每個合作夥伴來說可能看起來都不同。一些合作夥伴將比其他合作夥伴更容易受到這一擬議規則變更的影響。

And that's something that -- so again, it looks different for each partner. I mean I don't think -- trust, none of us like the proposed rule change, partners included, but I think they're all starting to better understand it, and working jointly to figure out how do we mitigate it, so we're able to continue to lend to the customers who they serve.

這對於每個合作夥伴來說都是不同的。我的意思是，我不認為——相信，我們都不喜歡擬議的規則變更，包括合作夥伴，但我認為他們都開始更好地理解它，並共同努力找出如何緩解它，所以我們能夠繼續向他們所服務的客戶提供貸款。

The next question comes from the line of Jeffrey Adelson with Morgan Stanley.

下一個問題來自杰弗里阿德爾森與摩根士丹利的對話。

Just wanted to understand a little bit better what you're seeing under the hood in your portfolio. I think there has been a bit of a narrative that the lowest quality, lowest income credits are maybe starting to stabilize a little bit. Are you guys seeing that? I know, Perry, you just alluded to some pressure on the low mid-income consumer. Maybe just an update on the internals there. And then maybe more specifically, can you give us an update on what percentage of your borrowers are maybe doing a min pay now versus last quarter or a year ago?

只是想更好地了解您在投資組合中看到的內容。我認為有一種說法認為，最低質量、最低收入的信貸可能開始穩定下來。你們看到了嗎？我知道，佩里，你剛才提到了中低收入消費者面臨的一些壓力。也許只是內部結構的更新。然後，也許更具體地說，您能否向我們提供最新情況，說明與上季度或一年前相比，現在可能支付最低工資的借款人的百分比是多少？

Yes. I think when you look at our -- the best thing to look at for us is look at our delinquency rates, where we're seeing stabilization, which is why I feel confident in being able to guide the second quarter loss rate to be about 100 basis points below. I mean third quarter loss ratio, we got 100 basis points below the second quarter loss rate because of our line of sight into delinquency formation.

是的。我認為，當你看看我們的——對我們來說最好的事情是看看我們的拖欠率，我們看到了穩定，這就是為什麼我有信心能夠將第二季度的損失率控制在大約低於100個基點。我的意思是第三季度的損失率，由於我們對拖欠形成的關注，我們的損失率比第二季度的損失率低了 100 個基點。

Payment rates still continue to come down when you look at where we are this quarter compared to the first quarter. Again, I think these are things that we just continue to monitor and when we're looking at it, we're seeing some stabilization in part because of the credit actions that we've taken.

當你看看本季度與第一季度相比的情況時，付款率仍然繼續下降。再說一次，我認為這些都是我們繼續監控的事情，當我們審視它時，我們看到了一些穩定的情況，部分原因是我們採取了信貸行動。

But it is something that you just continue to watch and hopefully some of the inflation improvement or moderation is going to give a little bit of relief. But when you do look at certain categories, they do remain elevated. So we're just very watchful of this.

但這是你需要繼續關注的事情，希望通脹的改善或放緩能夠帶來一點緩解。但當你真正審視某些類別時，它們確實仍然處於較高水平。所以我們對此非常警惕。

Okay. And then just in terms of spending, I know BJ's is kind of distorting the year-over-year noise of that 30% decline. But any way to think about kind of the ex-BJ's growth you're seeing and how July is trending so far in the consumer spending front. I know your comment thinking about some weakness in the retail sales for July. I guess, just trying to get a better sense of how consumers are spending within your book and whether they're still continuing to kind of trade down, like you said before?

好的。然後就支出而言，我知道 BJ's 有點扭曲了同比下降 30% 的噪音。但無論如何，請考慮一下您所看到的前 BJ 的增長情況以及 7 月份迄今為止消費者支出方面的趨勢。我知道您對 7 月份零售銷售疲軟的評論。我想，只是想更好地了解消費者如何在你的書中消費，以及他們是否仍在繼續進行降價交易，就像你之前所說的那樣？

Yes. This is Ralph. I think let's put BJ's in perspective, it was a high spend, high transactor book. And so that's what -- those are the effects that you're seeing. We have new partners coming on. We're seeing growth with some new partners as they came on the book. So you'll see accelerated growth with those partners as they move forward.

是的。這是拉爾夫。我認為讓我們正確看待《BJ》，這是一本高消費、高交易量的書。這就是你所看到的效果。我們有新的合作夥伴加入。我們看到一些新合作夥伴在本書中出現了增長。因此，隨著這些合作夥伴的前進，您將看到他們的加速增長。

So spending in July was a little softer than June. We've turned the corner in June, spending was a little softer. What I see is that consumers are still spending, but they're self-regulating. So they're spending with thoughtfully instead of spending in a different way, which I think is a good thing. So they're managing their budget in a period of time when they have to with high inflation and high interest rates. So I expect that will continue for some period of time. But as we bring on new partners, we see a growing spend.

因此，7 月的支出比 6 月略為疲軟。六月份我們已經度過了難關，支出有所放緩。我看到的是，消費者仍在消費，但他們正在自我調節。因此，他們會深思熟慮地花錢，而不是以不同的方式花錢，我認為這是一件好事。因此，他們在不得不面對高通脹和高利率的時期管理預算。所以我預計這種情況會持續一段時間。但隨著我們引入新的合作夥伴，我們看到支出不斷增長。

Our next question comes from the line of Bill Carcache with Wolfe Research.

我們的下一個問題來自沃爾夫研究中心的比爾·卡卡什（Bill Carcache）。

Ralph and Perry, I wanted to follow up on your commentary around building capital closer to your peers. The growth in your tangible common equity has been impressive, but most of your peers tend to have CET1 targets in the 11% range at the enterprise level? Is there a comparable enterprise-level CET1 metric that you think about internally? It seems like you guys are getting close, but it'd be great to hear from you, how close do you think you are?

拉爾夫和佩里，我想跟進你們關於建立更接近同行的資本的評論。你們有形普通股的增長令人印象深刻，但你們大多數同行在企業層面的 CET1 目標往往在 11% 範圍內？您內部是否考慮過類似的企業級 CET1 指標？看來你們已經很接近了，但很高興收到你的來信，你認為你們有多接近？

Yes. I mean, look, we're closing in on it, right? But for us, our total risk-based capital is our binding constraint. And so that's something that we are continuing to evaluate what's the right target for us. And for -- like we say, getting closer to peers, remember, every company has a slightly different target rate based on their internal stress models and the profile of their business. So it's something where we're -- look, we made tremendous progress, as you've noted, and we're getting close. But we still have more room to go and as well as continue to improve that double leverage ratio, which means paying down debt a little bit further.

是的。我的意思是，看，我們正在接近它，對吧？但對我們來說，基於風險的總資本是我們的約束力。因此，我們正在繼續評估什麼是適合我們的目標。正如我們所說，要與同行保持密切聯繫，請記住，每家公司根據其內部壓力模型和業務概況都有略有不同的目標率。所以這就是我們現在的情況——看，我們取得了巨大的進展，正如你所指出的，而且我們正在接近這一目標。但我們還有更多的空間，並繼續提高雙槓桿率，這意味著進一步償還債務。

Right. And it seems like it just puts more meat on the kind of the restart of the buyback once we have kind of greater clarity that you're at peer levels. And so certainly, just some back of the envelope math suggests that you're close, but it'd be great if there's any way that you guys might be able to try to provide something like that going forward, that would be much appreciated. That was it for me.

正確的。一旦我們更清楚地了解您處於同行水平，這似乎就會為重新啟動回購提供更多依據。當然，一些粗略的數學表明你們已經很接近了，但是如果你們能以任何方式嘗試提供類似的東西，那就太好了，我們將不勝感激。對我來說就是這樣。

Thank you.

謝謝。

Our next question comes from the line of Dominick Gabriele with Oppenheimer.

我們的下一個問題來自多米尼克·加布里埃爾（Dominick Gabriele）和奧本海默（Oppenheimer）的對話。

So I guess a peer of yours talked about recouping some of the late fee revenue through offsets would take "years." I was wondering how you think about that timing? Do you think that if you've got a head start on this, it's more of a -- excuse me, 2- to 3-quarter impact? Or is this really measured in years to fully recoup the offset late fees coming down? And I just have a follow-up.

所以我猜你的一位同行談到通過抵消來收回部分滯納金收入將需要“數年”。我想知道你如何看待這個時機？您是否認為，如果您在這方面取得了先機，那麼它會產生更大的影響——對不起，是 2 到 3 個季度的影響嗎？或者這是否真的以年為單位來衡量，以完全收回所下降的抵消滯納金？我只是有一個後續行動。

Thanks, Dominick. Yes, I think it really goes to the dynamic of the lever, which you pull, right? So as we think about the levers, if we do across-the-board APR increases that we think would happen? Yes, as soon as you think -- as soon as we hear the announcement, you may start to increase APRs for new accounts and existing customers, and then say the effect goes in 12 months later. But the way CARD Act has the payment hierarchy rules, it pays off the highest APR first and then the low. So it's going to take a bit of a burn-in period for that to happen for us to realize the benefits of the higher APRs on existing account balances.

謝謝，多米尼克。是的，我認為這確實與你拉動的槓桿的動態有關，對嗎？因此，當我們考慮槓桿時，如果我們全面提高年利率，我們認為會發生什麼？是的，只要你想到——我們一聽到這個公告，你就可以開始提高新賬戶和現有客戶的年利率，然後說效果會在 12 個月後生效。但 CARD Act 的支付等級規則是先支付年利率最高的，然後支付低年利率的。因此，我們需要一段時間的磨合期才能實現現有賬戶餘額較高年利率的好處。

New accounts, you get that benefit as soon as you book the new account. So for those, they look a little different. So it really what determines the phase-in of this is the amount of new volume that comes on through new accounts and the churn in your portfolio and that existing account base is really, I think, what they're speaking to is the -- how long it would take to fully mitigate.

新帳戶，您在預訂新帳戶後即可享受該優惠。所以對於那些人來說，他們看起來有點不同。因此，決定分階段實施的真正因素是通過新賬戶產生的新交易量以及投資組合中的流失情況，而現有賬戶基礎實際上是，我認為，他們所說的是——完全緩解需要多長時間。

Now obviously, transaction fees,, annual fees, things like that, partner agreements, all those things will have a much faster burn in. But I think they're speaking to be 100% mitigated just the CARD Act aspect could take a longer period of time on existing balances. So it's really the degree to which the last dollar is fully mitigated. Maybe it does take years, it just depends on, I think, the profile of the portfolio.

現在顯然，交易費、年費、諸如此類的事情、合作夥伴協議，所有這些事情都會更快地消耗。但我認為他們說的是 100% 減輕，只是 CARD 法案方面可能需要更長的時間現有餘額的時間。所以這實際上是最後一美元得到充分緩解的程度。也許這確實需要數年時間，我認為這僅取決於投資組合的概況。

So it sounds like more of -- if we were to calculate the turnover of the total portfolio that's almost what I'm hearing right there. Does that sound right?

因此，如果我們要計算整個投資組合的營業額，這聽起來更像是我在那裡聽到的。聽起來對嗎？

That is an element that goes into the factor at the pace at which it gets offset.

這是一個以它被抵消的速度進入因素的因素。

Okay. Cool. I really appreciate that. And then if we just think about the processing expenses as a percentage of credit sales, I believe that was about 1.6% this quarter, and it was last quarter, but it's up from 1% the previous year. I'm just trying to think about some of the efficiencies that you're targeting. I know that you've talked about modest efficiency gains, and we've seen some real progress over the last few years. But maybe you could just talk about what may have changed to elevate that percentage and where you think that percentage should trend out and some of the factors.

好的。涼爽的。我真的很感激。然後，如果我們只考慮加工費用佔賒銷的百分比，我認為本季度約為 1.6%，上個季度也是如此，但比去年的 1% 有所上升。我只是想考慮一下您所瞄準的一些效率。我知道您談到了適度的效率提升，並且我們在過去幾年中看到了一些真正的進展。但也許您可以只談談可能發生了哪些變化來提高該百分比，以及您認為該百分比應該趨向何處以及一些因素。

Yes. I think what I would say is, over time, I would expect us to continue to be able to see that rate come back down. It was elevated in the first half of this year, in part because of the conversion-related expense carryover driven out those efficiencies yet coupled with elevated fraud that's been seen across the industry. And so as -- again, that's something the industry always has to grapple with. It's been a little elevated across the entire industry in the first half of the year and expect that to get back in line over time.

是的。我想我想說的是，隨著時間的推移，我希望我們能夠繼續看到這一比率回落。今年上半年這一數字有所上升，部分原因是與轉換相關的費用結轉降低了效率，同時整個行業的欺詐行為也有所增加。因此，這又是該行業始終必須解決的問題。今年上半年整個行業的價格略有上升，預計隨著時間的推移，這種情況會恢復正常。

Our next question comes from Reggie Smith with JPMorgan.

我們的下一個問題來自摩根大通的雷吉·史密斯。

Most of mine have been hit. But I wanted to kind of dig into -- I know you guys have talked about -- everybody is talking about tightening credit bands and standards. My question is, are there any contractual limits to how high you can set APRs on new accounts. Just curious that, obviously, you guys are in the business of pricing risk. And I was just wondering if there was a way to accept more people or open more accounts maybe at a higher APR or are you at that limit?

我的大部分都被擊中了。但我想深入探討——我知道你們已經談論過——每個人都在談論收緊信貸範圍和標準。我的問題是，對於新帳戶的年利率設置有多高，是否存在合同限制。只是好奇，顯然，你們從事的是定價風險業務。我只是想知道是否有辦法接受更多的人或開設更多的賬戶，也許年利率更高，或者你是否達到了這個限制？

There are no limits, but we want to be responsible and competitive in the environment that we work in. So while there are no limits, our view is we've got to be reasonable and respectful and be competitive.

沒有限制，但我們希望在我們的工作環境中保持負責任和競爭性。因此，雖然沒有限制，但我們的觀點是我們必須保持理性、尊重和競爭。

Our next question comes from David Scharf with JMP.

我們的下一個問題來自 JMP 的 David Scharf。

Just to return to the spending outlook discussion and observations. I'm wondering, it was helpful. You provided very early in your prepared remarks some talk of the verticals that you were seeing changes to -- I mean, and specifically, specialty apparel, it sounded like was where you were seeing a fair amount of the moderation.

只是回到支出前景的討論和觀察。我想知道，這很有幫助。您在準備好的發言中很早就提供了一些關於您所看到的垂直行業變化的談話——我的意思是，特別是特種服裝，聽起來您看到了相當多的適度變化。

I'm wondering, I guess it's a 2-part question. One is maybe just an update on some of the vertical exposure sort of the mix? And secondly, as you think about your historical exposure to very discretionary verticals like jewelry. I think you highlighted travel is holding in there, whether that's something that may be next in line for moderation. Can you just talk about whether this slowdown is kind of likely to be more broad-based and whether there are discretionary verticals that are now representing a considerable mix of the portfolio?

我想知道，我想這是一個由兩部分組成的問題。其中之一可能只是混合中某些垂直曝光類型的更新？其次，當您考慮您歷史上接觸過珠寶等非常隨意的垂直行業時。我認為你強調了旅行的持續存在，無論這是否是下一個需要節制的事情。您能否談談這種放緩是否可能具有更廣泛的基礎，以及是否有一些可自由支配的垂直行業現在代表了投資組合的相當大的組合？

Yes. I think since 2020, we've really diversified and derisked our portfolio. Looking back in 2020, the wrap was soft goods, retail mall based. And if you look at the verticals now, just take our announcement today with Dell, we're -- we've got a technology vertical. We've got AAA and tech, travel, entertainment, automotive. We've got a number of verticals, beauty as well. All those verticals no longer have that concentration risk. So as we think about it, travel and entertainment and beauty are really holding extremely well and actually growing. So while we see a little bit of decline in soft goods, we see an increase in those areas.

是的。我認為自 2020 年以來，我們確實實現了投資組合的多元化和去風險化。回顧2020年，包裝以軟商品、零售商場為主。如果你現在看看垂直行業，看看我們今天與戴爾發布的聲明，我們——我們已經有了一個垂直技術。我們擁有 AAA 級和科技、旅遊、娛樂、汽車行業。我們有很多垂直領域，還有美容領域。所有這些垂直行業都不再存在集中風險。因此，當我們思考這一點時，旅遊、娛樂和美容確實保持得非常好，而且實際上在增長。因此，雖然我們看到軟商品略有下降，但這些領域卻有所增加。

And remember, our portfolio is very different than it was. We now have a lot of general spend and discretionary spend because we've moved -- we've migrated to co-brand cards and 50% of our -- really 50% of our spend in those sales and categories are up.

請記住，我們的投資組合與以前有很大不同。我們現在有很多一般支出和可自由支配支出，因為我們已經遷移到聯合品牌卡，並且我們在這些銷售和類別上的支出的 50% 確實有 50% 增加了。

Got it. Got it. Maybe just kind of a related question as you think about maybe the soft goods moderation. And I know the VS portfolio has always been kind of the largest and that has a lower FICO profile, lower age demographic, I believe, historically. Is there any way of getting a sense whether any of the moderation in spend is actually market share attrition at point of sale to maybe other point-of-sale offerings versus just more of a macro observation.

知道了。知道了。當你考慮軟商品的節制時，也許這只是一個相關的問題。我知道 VS 投資組合一直是最大的，而且我相信，從歷史上看，該投資組合的 FICO 形象較低，年齡結構也較低。有沒有辦法了解支出的節制是否實際上是銷售點的市場份額被其他銷售點產品消耗，而不是更多的宏觀觀察。

Yes, I think that's a good question. And I think to the point you're making, it's another aspect that influences our sales growth is the growth of each partner. Partners who are growing and capturing more share, and I'll say, in favor of the consumer are clearly going to do better than others who maybe aren't and we're not giving any specifics on any 1 partner in particular, but partner performance is certainly something that factors in, and we have some, as Ralph mentioned who are doing extraordinarily well and others in this environment are feeling pressure a little differently. So I think it's -- the way you're thinking of it, I'm not saying about any particular partner. But you're right, as you read their own headlines, that will influence into our tender share.

是的，我認為這是一個很好的問題。我認為就您所說的觀點而言，影響我們銷售增長的另一個方面是每個合作夥伴的成長。正在成長並獲得更多份額的合作夥伴，我會說，有利於消費者的合作夥伴顯然會比其他可能沒有的合作夥伴做得更好，我們不會特別提供任何一個合作夥伴的任何細節，但合作夥伴績效當然是一個因素，正如拉爾夫提到的，我們有一些人做得非常好，而其他人在這種環境下感受到的壓力略有不同。所以我認為，按照你的想法，我並不是指任何特定的合作夥伴。但你是對的，當你閱讀他們自己的頭條新聞時，這將影響我們的投標份額。

Our final question today comes from the line of Alexander Villalobos with Jefferies.

我們今天的最後一個問題來自 Alexander Villalobos 和 Jefferies。

Do you want to clarify a little bit on just net interest income. Maybe if you could give us like a little bit of on seasonality in the next few quarters. What should we assume on that? And then also on the sale portfolio, I wanted to ask if that was included already in the guide? Or if this is on top of that.

您想澄清一下淨利息收入嗎？也許您能給我們介紹一下接下來幾個季度的季節性情況。對此我們應該假設什麼？然後還有關於銷售組合，我想問這是否已經包含在指南中？或者如果這是最重要的。

Well, what I'll tell you first, I'll start with the Dell portfolio, that's absolutely within the guide. We were aware of that. And when we talk about in our guidance, we're including things that are in the pipeline as well as our best view of the economy. So Dell was certainly in our guide.

好吧，我首先要告訴你的是，我將從戴爾產品組合開始，這絕對在指南之內。我們知道這一點。當我們在指導中談論時，我們包括正在醞釀中的事情以及我們對經濟的最佳看法。所以戴爾肯定在我們的指南之內。

As it relates to net interest margin. We talked, there's lots of moving parts, pluses and minuses and we expect the full year to be close to the same rate that we had last year. Second quarter, you're going to get variability with each of the quarters. So in the second quarter, it was impacted a lot by purifications related to the elevated losses. So that dragged down net interest margin.

因為它與淨息差有關。我們談到，有很多變化的部分、優點和缺點，我們預計全年的增長率將接近去年的水平。第二季度，每個季度都會出現變化。因此，在第二季度，它受到了與損失增加相關的淨化的很大影響。這拖累了淨息差。

Then seasonally, third quarter is normally a high point. And in our case, you're going to also then see an improvement because of the lower loss expectation, which means less of a drag on net interest margins related to those effective losses. So the second half of the year is obviously mathematically going to be higher than the first half to get to that average of 19.2%.

然後從季節性來看，第三季度通常是一個高點。在我們的例子中，由於損失預期較低，您還將看到改善，這意味著與這些有效損失相關的淨息差受到的拖累較小。因此，從數學角度來看，今年下半年顯然會高於上半年，達到 19.2% 的平均水平。

And then you look at the third and the fourth quarter, I talked earlier about losses being sequentially higher than the third quarter by about 50 basis points. That means purification will be a little bit higher in the reversal of interest and fee impact on net interest margin in the fourth quarter than what it was in the third quarter. So you'll get a little bit of bouncing around of net interest margin. But again, with our line of sight into it, it will be higher than what we saw in the first half of the year.

然後你看看第三季度和第四季度，我之前談到損失比第三季度連續高出約 50 個基點。這意味著第四季度利息和費用逆轉對淨息差的影響將略高於第三季度。所以你會得到一些淨息差的波動。但同樣，從我們的視線來看，它會比我們上半年看到的要高。

Perfect. Perfect. And 1 quick last question. RSA this quarter, what drove the benefit? And should we kind of expect kind of the same levels going forward?

完美的。完美的。還有最後一個問題。 RSA本季度的收益是什麼推動的？我們是否應該期待未來達到同樣的水平？

Yes. As it related to RSA this quarter, it's really based on lower sales originations.

是的。由於本季度與 RSA 相關，它實際上是基於較低的銷售來源。

We do have 1 further question that comes from the line of John Pancari with Evercore ISI.

我們確實還有 1 個來自 Evercore ISI 的 John Pancari 的問題。

The loss on the discontinued operations, the $16 million or $0.32 a share. What did that relate to? Was it a revenue-driven loss or just a traditional operating loss? Or is there a reserve charge taken there related to LoyaltyOne?

終止經營業務造成的損失為 1600 萬美元，即每股 0.32 美元。這與什麼有關？這是收入驅動的虧損還是只是傳統的運營虧損？或者是否會收取與 LoyaltyOne 相關的準備金？

Yes. What's in discontinued ops this quarter is associated with some small charges that are related to discontinued legacy businesses, including LoyaltyOne and Epsilon.

是的。本季度已停止運營的業務與一些與已停止運營的傳統業務（包括 LoyaltyOne 和 Epsilon）相關的小額費用有關。

Okay. So has the reserve charge been taken for the -- any potential litigation in the Loyalty business?

好的。那麼，是否已針對忠誠度業務中的任何潛在訴訟收取了準備金費用？

No. This has nothing to do with anything related to the spin. And at this point, we've not been sued by that litigation trust. I know everybody has been talking about.

不。這與旋轉無關。目前，我們還沒有被該訴訟信託起訴。我知道大家都在談論。

Right. Right. Got it. Okay. And then separately, can you just comment on your partnership pipeline in terms of potential maturities of any partnerships in the -- just given the competition remains relatively brisk on that front. Would love to get your updated line of sight in terms of maturing partnerships?

正確的。正確的。知道了。好的。然後，考慮到這方面的競爭仍然相對激烈，您能否就任何合作夥伴關係的潛在成熟度來評論您的合作夥伴關係管道。想了解您對成熟合作夥伴關係的最新看法嗎？

Yes. I think I mentioned a little earlier before the pipeline is very robust. And 1 of the things that we're very pleased with is we're being quoted on certain initiatives, and we're winning more than our share. And given where we are less reliant on any 1 partner because of our diversification as we think about it. And as our renewals go, we have nearly 85% of our loans to secure through 2025. And our top 5 brands have been renewed through 2028. So we have a good outlook, pretty secure. And we look at renewables now earlier and we look at our pipeline and determine what is our percentage of winning, how would we go about it? And we have a basket of products now that we can offer our partners and their customers on how they want to borrow. So we feel very, very good about the pipeline. We feel very good about our results, and we feel very good about our renewals.

是的。我想我之前提到過管道非常強大。我們非常高興的一件事是，我們在某些舉措上得到了引用，而且我們贏得的份額超出了我們的份額。考慮到我們的多元化，我們對任何一個合作夥伴的依賴都減少了。隨著我們的續約，我們有近 85% 的貸款需要擔保到 2025 年。我們的前 5 個品牌已經續約到 2028 年。所以我們的前景很好，非常有保障。我們現在更早地審視可再生能源，我們審視我們的管道並確定我們獲勝的百分比是多少，我們將如何去做？我們現在有一籃子產品，可以為我們的合作夥伴及其客戶提供他們想要的借貸方式。所以我們對管道感覺非常非常好。我們對我們的成果感覺非常好，我們對我們的續約感覺非常好。

We have no further questions, so I'll turn the call back to Ralph Andretta for closing comments.

我們沒有其他問題了，所以我將把電話轉回拉爾夫·安德雷塔 (Ralph Andretta) 以徵求結束意見。

Thank you. I want to thank you all for joining the call. As you've seen, we've made really nice progress on our balance sheet and paying down our debt. We're very focused on that. We'll continue to be focused on that. And we like everyone to have a wonderful day, and thank you again for your questions and your interest.

謝謝。我要感謝大家加入這次通話。正如您所看到的，我們在資產負債表和償還債務方面取得了非常好的進展。我們非常關注這一點。我們將繼續關注這一點。我們祝愿大家度過愉快的一天，並再次感謝您的提問和興趣。

Thank you, everyone, for joining us today. This concludes our call, and you may now disconnect your lines.

謝謝大家今天加入我們。我們的通話到此結束，您現在可以斷開線路了。