Analyst Note
| Michael Miller |No-moat rated Bread Financial reported a strong start to 2022, as good loan growth and net interest margin expansion drove net interest income higher. Bread’s net revenue grew 15% year over year and 7.7% sequentially to $921 million. Earnings per share of $4.21 was 21% lower than last year’s quarter, which benefited from reserve releases. These results were largely in line with our expectations, and we are reaffirming our $72 fair value estimate for Bread.