Comenity Capital Bank

Bread Financial has made a contribution the The Nature Conservancy described here, but it discloses very little about its lending practices to renewables.

Updated April 3, 2024

Climate Score: C

Contributions to climate organizations are nice, but too little is disclosed about the bank's lending practices to either the oil and gas sector or the renewables sector.

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Comenity Capital Bank Ratio Analysis

The following ratios and data are available to help you better understand the financial condition of Comenity Capital Bank. The data is provided by the FDIC. All banks listed on BestCashCow.com are FDIC-insured. No depositor has ever lost deposits that have been within the FDIC insurance limits.

Texas Ratio

The Texas Ratio compares the bank’s non performing assets (non-performing loans and real estate owned) with its tangible common equity and its loan loss reserves. A lower Texas ratio indicates better coverage of problem loans. The closer the Texas Ratio is to 1-to-1 or 100%, the less capital and reserves a bank has to absorb its loan losses.

As of March 31, 2024, Comenity Capital Bank had $484,442,000 in non-current loans and $0 in owned real estate. To cover these potential losses it had $1,986,909,000 in equity and $1,354,584,000 in loans loss reserves. That gives it a Texas Ratio of 14.5%.

Return on Equity

Comenity Capital Bank has a Return on Equity of 20.74% versus the BestCashCow average of 10.46%. Return on equity measures how efficiently a bank is making money from its capital. A bank with a consistently high ROE can be considered well run. A bank with a consistently low ROE can be considered poorly run.

Capitalization

Comenity Capital Bank has a Capitalization of 15.61% versus the BestCashCow average of 10.73. Capitalization measures how much equity capital a bank has to underpin loans and other assets on its balance sheet. The higher the capitalization number the more secure a bank is considered.

As of March 31, 2024, Comenity Capital Bank had assets of $12,730,018,000, loans of $9,369,253,000, and deposits of $9,525,543,000. Long-term increases in deposits shows a bank's ability to raise funds to grow its loans and assets. Loan and asset growth may rise or fall depending on a bank's strategy for growth. Sharp rises and falls in assets, deposits, and loans can be problematic, indicating a loosening of lending standards, or financial distress leading to reduced lending. A big change in these figured can also be from a bank acquisition or merger.