Contradictions Unveiled: The Bancorp's 2025 Q2 Earnings Call on REBEL Loans, Deposits, and Credit Quality

REBEL book migration and stabilization, deposit composition and growth, deposit growth and balance sheet management, loan classification and peak levels are the key contradictions discussed in The Bancorp's latest 2025Q2 earnings call.



Strong Financial Performance:
- The Bancorp earned $1.27 per diluted share in the second quarter, with year-over-year revenue growth of 11% and EPS growth of 21%.
- The growth was driven by the fintech ecosystem, which contributed to the increase in Gross Domestic Value (GDV) climbing 18% year-over-year and total fee and related interest income growth from all fintech activities growing 30%.

Strategic Partnership Expansion:
- The Bancorp announced a 5-year expansion of its relationship with Block, adding debit and prepaid card issuance and related services for Cash App customers.
- This program is expected to enhance GDV and fee growth, contributing to future growth.

Share Repurchase Program:
- The company announced a substantial increase to its share repurchase program over the next 18 months to $500 million.
- This increase will be funded by core earnings growth and replacement of maturing senior unsecured debt, aiming to purchase $300 million worth of shares for the remainder of 2025 and $200 million worth of shares in 2026.

Project 7 and Earnings Guidance:
- The Bancorp is targeting at least a $7 earnings per share run rate by the end of 2026 through Project 7.
- This is driven by fintech revenue growth, share buybacks, and efficiency and productivity gains in reallocating and/or reducing resources where appropriate.