Bread Financial Provides Performance Update for December 2024
Bread Financial Holdings (NYSE: BFH) released its December 2024 performance update, showing mixed credit metrics. The company reported end-of-period credit card and other loans of $18,896 million, with average credit card loans showing a 1% year-over-year decline. The net loss rate was 8.1% for December and 8.0% for Q4 2024.
Delinquency metrics showed improvement, with the 30+ days delinquency rate decreasing to 5.9% from 6.5% year-over-year. The company noted that hurricanes Helene and Milton impacted their metrics, as they froze delinquency progression for cardholders in FEMA-identified impact zones for one billing cycle. This action will result in lower net principal losses in Q4 2024 but will negatively affect these metrics in Q2 2025.
Bread Financial Holdings (NYSE: BFH) ha pubblicato il suo aggiornamento sulle performance di dicembre 2024, evidenziando metriche creditizie miste. La società ha riportato un totale di carte di credito e altri prestiti a fine periodo pari a $18.896 milioni, con prestiti medi su carte di credito che mostrano una diminuzione dell'1% rispetto all'anno precedente. Il tasso di perdita netto è stato dell'8,1% per dicembre e dell'8,0% per il quarto trimestre 2024.
Le metriche di insolvenza hanno mostrato miglioramenti, con il tasso di insolvenza oltre i 30 giorni che è sceso al 5,9% dal 6,5% rispetto all'anno precedente. L'azienda ha osservato che gli uragani Helene e Milton hanno influito sulle loro metriche, poiché hanno congelato il progresso dell'insolvenza per i titolari di carte nelle zone colpite identificate dalla FEMA per un ciclo di fatturazione. Questa azione comporterà perdite nette di capitale inferiori nel quarto trimestre 2024, ma influenzerà negativamente queste metriche nel secondo trimestre 2025.
Bread Financial Holdings (NYSE: BFH) publicó su actualización del desempeño de diciembre de 2024, mostrando métricas crediticias mixtas. La empresa reportó un total de tarjetas de crédito y otros préstamos al final del periodo de $18,896 millones, con préstamos promedio de tarjetas de crédito que mostraron una disminución del 1% en comparación con el año anterior. La tasa de pérdida neta fue del 8,1% para diciembre y del 8,0% para el cuarto trimestre de 2024.
Las métricas de morosidad mostraron mejoras, con la tasa de morosidad a más de 30 días disminuyendo al 5,9% desde el 6,5% en comparación con el año anterior. La compañía señaló que los huracanes Helene y Milton impactaron sus métricas, ya que congelaron el progreso de la morosidad para los titulares de tarjetas en las zonas identificadas por FEMA durante un ciclo de facturación. Esta acción resultará en menores pérdidas netas de capital en el cuarto trimestre de 2024, pero afectará negativamente estas métricas en el segundo trimestre de 2025.
Bread Financial Holdings (NYSE: BFH)는 2024년 12월 성과 업데이트를 발표하며 혼합된 신용 지표를 보여주었습니다. 회사는 기간 말 신용 카드 및 기타 대출을 $18,896 백만으로 보고하며, 평균 신용 카드 대출이 전년 대비 1% 감소했다고 전했습니다. 2024년 12월의 순 손실률은 8.1%, 2024년 4분기는 8.0%였습니다.
채무 불이행 지표는 개선되었으며, 30일 이상 연체율은 전년 대비 6.5%에서 5.9%로 감소했습니다. 회사는 허리케인 헬렌과 밀턴이 지표에 영향을 미쳤다고 언급하면서, FEMA에서 지정한 영향 지역의 카드 소지자에 대한 연체 진행을 한 청구 주기 동안 동결했다고 밝혔습니다. 이 조치는 2024년 4분기에 순 원금 손실을 줄이겠지만, 2025년 2분기에는 이러한 지표에 부정적인 영향을 미칠 것입니다.
Bread Financial Holdings (NYSE: BFH) a publié sa mise à jour de performance pour décembre 2024, montrant des indicateurs de crédit mitigés. La société a rapporté des cartes de crédit et d'autres prêts à la fin de la période totalisant $18,896 millions, avec des prêts moyens sur cartes de crédit affichant une baisse de 1% par rapport à l'année précédente. Le taux de perte nette était de 8,1% pour décembre et de 8,0% pour le quatrième trimestre de 2024.
Les indicateurs de défaut ont montré une amélioration, le taux de défaut de plus de 30 jours diminuant à 5,9% contre 6,5% par rapport à l'année précédente. L'entreprise a noté que les ouragans Helene et Milton avaient impacté leurs indicateurs, car ils ont gelé la progression des défauts pour les titulaires de cartes dans les zones touchées identifiées par la FEMA pendant un cycle de facturation. Cette action entraînera des pertes nettes de capital plus faibles au quatrième trimestre 2024, mais affectera négativement ces indicateurs au deuxième trimestre 2025.
Bread Financial Holdings (NYSE: BFH) hat sein Leistungsupdate für Dezember 2024 veröffentlicht, das gemischte Kreditkennzahlen zeigt. Das Unternehmen meldete zum Ende des Zeitraums Kreditkarten und andere Darlehen in Höhe von $18.896 Millionen, wobei die durchschnittlichen Kreditkartendarlehen einen Rückgang von 1% im Jahresvergleich aufwiesen. Die Nettorausfallrate betrug im Dezember 8,1% und im vierten Quartal 2024 8,0%.
Die Ausfallkennzahlen zeigten eine Verbesserung, da die Ausfallrate von über 30 Tagen auf 5,9% von 6,5% im Jahresvergleich gesenkt wurde. Das Unternehmen stellte fest, dass die Hurricanes Helene und Milton ihre Kennzahlen beeinflussten, da sie den Ausfallfortschritt für Karteninhaber in von FEMA identifizierten betroffenen Gebieten für einen Abrechnungszyklus einfroschen. Diese Maßnahme wird zu geringeren Nettokapitalverlusten im vierten Quartal 2024 führen, wird jedoch diese Kennzahlen im zweiten Quartal 2025 negativ beeinflussen.
- Delinquency rate improved to 5.9% from 6.5% year-over-year
- End-of-period credit card and other loans maintained at $18.9 billion
- 1% year-over-year decline in average credit card loans
- High net loss rate of 8.1% for December 2024
- Expected negative impact on net principal losses in Q2 2025 due to hurricane-related delinquency freezes
Insights
The December 2024 performance metrics from Bread Financial reveal nuanced credit quality trends that warrant careful analysis. The delinquency rate improvement to
The elevated net loss rate of
The methodological change to daily average loan balance calculations starting January 2024 represents a positive shift toward industry standard practices, though it complicates year-over-year comparisons. The
The
COLUMBUS, Ohio, Jan. 30, 2025 (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 December 31, 2024 | For the three months ended December 31, 2024 | ||||||
| (dollars in millions) | |||||||
| End-of-period credit card and other loans | $ | 18,896 | $ | 18,896 | |||
| Average credit card and other loans (1) | $ | 18,647 | $ | 18,156 | |||
| Year-over-year change in average credit card and other loans (1) | — | % | (1 | %) | |||
| Net principal losses (2) | $ | 129 | $ | 367 | |||
| Net loss rate (1)(2) | 8.1 | % | 8.0 | % | |||
| As of December 31, 2024 | As of December 31, 2023 | ||||||
| (dollars in millions) | |||||||
| 30 days + delinquencies – principal | $ | 1,034 | $ | 1,163 | |||
| Period ended credit card and other loans – principal | $ | 17,418 | $ | 17,906 | |||
| Delinquency rate | 5.9 | % | 6.5 | % | |||
______________________________
| (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. |
| (2) | As a result of hurricanes Helene and Milton we froze delinquency progression for cardholders in Federal Emergency Management Agency identified impact zones for one billing cycle, which will result in modestly lower Net principal losses and Net loss rate in the fourth quarter of 2024, and consequently these actions will negatively impact Net principal losses and Net loss rate in the second quarter of 2025. |
About Bread Financial®
Bread Financial® (NYSE: BFH) is a tech-forward financial services company that provides simple, personalized payment, lending and saving solutions to millions of U.S. consumers. Our payment solutions, including Bread Financial general purpose credit cards and savings products, empower our customers and their passions for a better life. Additionally, we deliver growth for some of the most recognized brands in travel & entertainment, health & beauty, jewelry and specialty apparel through our private label and co-brand credit cards and pay-over-time products providing choice and value to our shared customers.
To learn more about Bread Financial, our global associates and our sustainability commitments, visit breadfinancial.com or follow us on Instagram and LinkedIn.
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, interest rates, labor market conditions, recessionary pressures or concerns over a prolonged economic slowdown, and the related impact on consumer spending behavior, payments, debt levels, savings rates and other behaviors; global political and public health events and conditions, including ongoing wars and military conflicts and natural disasters; 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 federal and state 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 or other liability or adverse impacts arising out of or related to the spinoff of our former LoyaltyOne segment or the bankruptcy filings of Loyalty Ventures Inc. (LVI) and certain of its subsidiaries and subsequent litigation or other disputes. 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
FAQ
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