$Bread Financial (BFH.US)$There must have been a change in a...

Revenue mainly relies on net interest income, with the majority coming from loan interest income. The non-interest portion is all expenses. The provision for credit losses fluctuates greatly. The significant increase in net income in 2021 is mainly due to nearly 1 billion less in provisions compared to usual, otherwise there might have been a loss in 2021.

The average net income over the past 4 years is 0.38 billion.

The asset-liability ratio decreased from 94% to 91.1% over the past 4 years. The total assets of 25.4 billion mainly consist of 18.9 billion in net loans and 3.9 billion in cash. The total liabilities of 23.1 billion mainly consist of 13.8 billion in customer deposits and 8.1 billion in long-term borrowings. There is a certain liquidity risk with 3.9 billion in cash against 13.8 billion in deposits.

The current price-to-earnings ratio (PE) is 6.6, the price-to-book ratio (PB) is 0.65, but goodwill and other intangible assets amount to 0.8 billion, which accounts for 35% of net assets of 2.265 billion. After excluding them, the price-to-book ratio becomes 1, which is not significantly undervalued and not very attractive.