Bread Financial™ Provides Performance Update for August 2024
Bread Financial Holdings (NYSE: BFH) has released its performance update for August 2024. The report shows a slight increase in credit card and other loans, with end-of-period loans at $17,936 million compared to $17,949 million in August 2023. The average loans grew by 1% year-over-year. However, the company faced challenges with rising net principal losses and delinquency rates. Net principal losses increased to $118 million from $99 million in the previous year, resulting in a higher net loss rate of 7.8% compared to 6.7% in August 2023. The 30-day+ delinquency rate also rose to 6.2% from 5.9% year-over-year. These figures suggest potential pressure on Bread Financial's loan portfolio quality and profitability.
Bread Financial Holdings (NYSE: BFH) ha pubblicato il suo aggiornamento sulle performance di agosto 2024. Il rapporto mostra un leggero aumento nei prestiti tramite carte di credito e altri prestiti, con prestiti a fine periodo pari a 17.936 milioni di dollari rispetto a 17.949 milioni di dollari ad agosto 2023. I prestiti medi sono cresciuti dell'1% rispetto all'anno precedente. Tuttavia, l'azienda ha affrontato sfide con l'aumento delle perdite nette principali e dei tassi di insolvenza. Le perdite nette principali sono aumentate a 118 milioni di dollari rispetto ai 99 milioni di dollari dell'anno precedente, comportando un tasso di perdita netto più elevato del 7,8% rispetto al 6,7% di agosto 2023. Anche il tasso di insolvenza oltre i 30 giorni è salito al 6,2% rispetto al 5,9% anno su anno. Questi dati suggeriscono una potenziale pressione sulla qualità e redditività del portafoglio prestiti di Bread Financial.
Bread Financial Holdings (NYSE: BFH) ha publicado su actualización de desempeño para agosto de 2024. El informe muestra un ligero aumento en los préstamos de tarjetas de crédito y otros préstamos, con préstamos al final del período de 17,936 millones de dólares en comparación con 17,949 millones de dólares en agosto de 2023. Los préstamos promedio crecieron un 1% interanual. Sin embargo, la empresa enfrentó desafíos con el aumento de las pérdidas netas de capital y las tasas de morosidad. Las pérdidas netas de capital aumentaron a 118 millones de dólares desde 99 millones de dólares en el año anterior, resultando en una tasa de pérdida neta más alta del 7.8% en comparación con el 6.7% en agosto de 2023. La tasa de morosidad a más de 30 días también aumentó al 6.2% desde el 5.9% interanual. Estas cifras sugieren una posible presión sobre la calidad del portafolio de préstamos y la rentabilidad de Bread Financial.
Bread Financial Holdings (NYSE: BFH)는 2024년 8월 성과 업데이트를 발표했습니다. 보고서에 따르면 신용 카드 및 기타 대출의 약간의 증가가 있었으며, 기간 말 대출은 2023년 8월의 17,949 백만 달러에 비해 17,936 백만 달러에 달했습니다. 평균 대출은 전년 대비 1% 증가했습니다. 그러나 회사는 증가하는 순 원금 손실 및 연체 비율과 같은 어려움에 직면했습니다. 순 원금 손실은 전년도 99 백만 달러에서 118 백만 달러로 증가하여, 2023년 8월의 6.7%에 비해 더 높은 순 손실률 7.8%를 기록했습니다. 30일 이상 연체 비율도 전년 대비 5.9%에서 6.2%로 증가했습니다. 이러한 수치는 Bread Financial의 대출 포트폴리오 품질과 수익성에 대한 잠재적 압박을 나타냅니다.
Bread Financial Holdings (NYSE: BFH) a publié sa mise à jour de performance pour août 2024. Le rapport montre une légère augmentation des prêts par carte de crédit et d'autres prêts, avec des prêts à la fin de la période s'élevant à 17,936 millions de dollars, contre 17,949 millions de dollars en août 2023. Les prêts moyens ont augmenté de 1% par rapport à l'année précédente. Cependant, l'entreprise a été confrontée à des défis avec l'augmentation des pertes nettes de capital et des taux de défaut. Les pertes nettes de capital ont augmenté à 118 millions de dollars contre 99 millions de dollars l'année précédente, entraînant un taux de perte nette plus élevé de 7,8% par rapport à 6,7% en août 2023. Le taux de défaut à plus de 30 jours a également augmenté, passant de 5,9% à 6,2% d'une année sur l'autre. Ces chiffres suggèrent une pression potentielle sur la qualité du portefeuille de prêts et la rentabilité de Bread Financial.
Bread Financial Holdings (NYSE: BFH) hat sein Leistungsupdate für August 2024 veröffentlicht. Der Bericht zeigt einen leichten Anstieg bei Kreditkarten- und anderen Krediten, wobei die Endkredite bei 17.936 Millionen Dollar im Vergleich zu 17.949 Millionen Dollar im August 2023 lagen. Die Durchschnittskredite wuchsen um 1% im Jahresvergleich. Allerdings hatte das Unternehmen mit steigenden Nettoverlusten und Ausfallraten zu kämpfen. Die Nettoverluste stiegen von 99 Millionen Dollar im Vorjahr auf 118 Millionen Dollar, was zu einer höheren Nettopverlustquote von 7,8% im Vergleich zu 6,7% im August 2023 führte. Die Ausfallrate von mehr als 30 Tagen stieg ebenfalls von 5,9% auf 6,2% im Jahresvergleich. Diese Zahlen deuten auf möglichen Druck auf die Qualität und Rentabilität des Kreditportfolios von Bread Financial hin.
- 1% year-over-year growth in average credit card and other loans
- Maintained stable end-of-period credit card and other loans at $17,936 million
- Net principal losses increased to $118 million from $99 million year-over-year
- Net loss rate rose to 7.8% from 6.7% in August 2023
- 30-day+ delinquency rate increased to 6.2% from 5.9% year-over-year
- Delinquencies - principal grew to $1,029 million from $987 million in August 2023
Insights
The August 2024 performance update for Bread Financial reveals concerning trends. The net loss rate increased significantly to
The rising delinquency and net loss rates are red flags for Bread Financial's credit risk profile. The
Bread Financial's performance update raises concerns about the broader consumer credit market. The increased delinquency and net loss rates may indicate a wider trend of consumer financial stress. This could have implications for other financial services companies and potentially signal economic headwinds. The minimal loan growth also suggests expansion opportunities in the current market. Investors should consider how these trends might affect other players in the consumer finance sector and whether they reflect localized issues for Bread Financial or broader market conditions. This data point could be an early indicator of shifting consumer behavior and credit quality across the industry.
COLUMBUS, Ohio, Sept. 16, 2024 (GLOBE NEWSWIRE) -- Bread Financial Holdings, Inc. (NYSE: BFH), a tech-forward financial services company that provides simple, personalized payment, lending and saving solutions, provided a performance update. The following tables present the Company’s net loss rate and delinquency rate for the periods indicated.
| For the month ended August 31, 2024 | For the month ended August 31, 2023 | ||||||
| (dollars in millions) | |||||||
| End-of-period credit card and other loans | $ | 17,936 | $ | 17,949 | |||
| Average credit card and other loans (1) | $ | 17,760 | $ | 17,544 | |||
| Year-over-year change in average credit card and other loans (1) | 1 | % | — | % | |||
| Net principal losses | $ | 118 | $ | 99 | |||
| Net loss rate (1) | 7.8 | % | 6.7 | % | |||
| As of August 31, 2024 | As of August 31, 2023 | ||||||
| (dollars in millions) | |||||||
| 30 days + delinquencies – principal | $ | 1,029 | $ | 987 | |||
| Period ended credit card and other loans – principal | $ | 16,493 | $ | 16,638 | |||
| Delinquency rate | 6.2 | % | 5.9 | % | |||
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(1) Beginning in January 2024, we revised the calculation of Average credit card and other loans to more closely align with industry practice by incorporating an average daily balance. Prior to 2024, Average credit card and other loans represent the average balance of the loans at the beginning and end of each month, averaged over the periods indicated. Consequentially, the calculations for Year-over-year change in average credit card and other loans and Net loss rate differ for the periods presented.
About Bread Financial™
Bread Financial™ (NYSE: BFH) is a tech-forward financial services company providing simple, personalized payment, lending and saving solutions. The company creates opportunities for its customers and partners through digitally enabled choices that offer ease, empowerment, financial flexibility and exceptional customer experiences. Driven by a digital-first approach, data insights and white-label technology, Bread Financial delivers growth for its partners through a comprehensive suite of payment solutions that includes private label and co-brand credit cards and Bread Pay™ buy now, pay later products. Bread Financial also offers direct-to-consumer products that give customers more access, choice and freedom through its branded Bread Cashback™ American Express® Credit Card and Bread Savings™ products.
Headquartered in Columbus, Ohio, Bread Financial is powered by its approximately 7,000 global associates and is committed to sustainable business practices. To learn more about Bread Financial, visit breadfinancial.com or follow us on Facebook, LinkedIn, Twitter/X and Instagram.
Forward-Looking Statements
This release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Forward-looking statements give our expectations or forecasts of future events and can generally be identified by the use of words such as “believe,” “expect,” “anticipate,” “estimate,” “intend,” “project,” “plan,” “likely,” “may,” “should” or other words or phrases of similar import. Similarly, statements that describe our business strategy, outlook, objectives, plans, intentions or goals also are forward-looking statements. Examples of forward-looking statements include, but are not limited to, statements we make regarding, and the guidance we give with respect to, our anticipated operating or financial results, future financial performance and outlook, future dividend declarations, and future economic conditions.
We believe that our expectations are based on reasonable assumptions. Forward-looking statements, however, are subject to a number of risks and uncertainties that are difficult to predict and, in many cases, beyond our control. Accordingly, our actual results could differ materially from the projections, anticipated results or other expectations expressed in this release, and no assurances can be given that our expectations will prove to have been correct. Factors that could cause the outcomes to differ materially include, but are not limited to, the following: macroeconomic conditions, including market conditions, inflation, higher interest rates, labor market conditions, recessionary pressures or a concern over a prolonged economic slowdown, and the related impact on consumer spending behavior, payments, debt levels, savings rates and other behavior; global political and public health events and conditions, including ongoing wars and military conflicts; future credit performance, including the level of future delinquency and write-off rates; the loss of, or reduction in demand from, significant brand partners or customers in the highly competitive markets in which we compete; the concentration of our business in U.S. consumer credit; inaccuracies in the models and estimates on which we rely, including the amount of our Allowance for credit losses and our credit risk management models; the inability to realize the intended benefits of acquisitions, dispositions and other strategic initiatives; our level of indebtedness and ability to access financial or capital markets; pending and future legislation, regulation, supervisory guidance, and regulatory and legal actions, including, but not limited to, those related to financial regulatory reform and consumer financial services practices, as well as any such actions with respect to late fees, interchange fees or other charges; impacts arising from or relating to the transition of our credit card processing services to third party service providers that we completed in 2022; failures or breaches in our operational or security systems, including as a result of cyberattacks, unanticipated impacts from technology modernization projects or otherwise; and any tax liability, disputes or other adverse impacts arising out of or relating to the spinoff of our former LoyaltyOne segment or the bankruptcy filings of Loyalty Ventures Inc. and certain of its subsidiaries. In addition, the Consumer Financial Protection Bureau (CFPB) has issued a final rule that, absent a successful legal challenge, will place significant limits on credit card late fees, which would have a significant impact on our business and results of operations for at least the short term and, depending on the effectiveness of the mitigating actions that we have taken or may in the future take in anticipation of, or in response to, the final rule, may potentially adversely impact us over the long term; we cannot provide any assurance as to the effective date of the rule, the result of any pending or future challenges or other litigation relating to the rule, or our ability to mitigate or offset the impact of the rule on our business and results of operations. The foregoing factors, along with other risks and uncertainties that could cause actual results to differ materially from those expressed or implied in forward-looking statements, are described in greater detail under the headings “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” in our Annual Report on Form 10-K for the most recently ended fiscal year, which may be updated in Item 1A of, or elsewhere in, our Quarterly Reports on Form 10-Q filed for periods subsequent to such Form 10-K. Our forward-looking statements speak only as of the date made, and we undertake no obligation, other than as required by applicable law, to update or revise any forward-looking statements, whether as a result of new information, subsequent events, anticipated or unanticipated circumstances or otherwise.
Contacts
Brian Vereb — Investor Relations
Brian.Vereb@breadfinancial.com
Susan Haugen — Investor Relations
Susan.Haugen@breadfinancial.com
Rachel Stultz — Media
Rachel.Stultz@breadfinancial.com
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