Bread Financial Provides Performance Update for January 2025
Bread Financial Holdings (NYSE: BFH) has released its January 2025 performance metrics, showing improvements in key credit indicators despite lower loan volumes. The company's end-of-period credit card and other loans decreased to $18.366 billion from $18.785 billion year-over-year, representing a 2% decline in average loans.
The net loss rate improved to 7.8% from 8.0% year-over-year, with net principal losses decreasing to $123 million from $128 million. The delinquency rate also showed improvement, dropping to 6.1% from 6.8%, with 30+ days delinquencies decreasing to $1.032 billion from $1.170 billion year-over-year.
Bread Financial Holdings (NYSE: BFH) ha pubblicato i suoi indicatori di prestazione di gennaio 2025, mostrando miglioramenti nei principali indicatori di credito nonostante un volume di prestiti inferiore. Alla fine del periodo, il valore dei prestiti attraverso carte di credito e altri prestiti è diminuito a 18,366 miliardi di dollari rispetto ai 18,785 miliardi di dollari dell'anno precedente, rappresentando un declino del 2% nei prestiti medi.
Il tasso di perdita netto è migliorato, scendendo al 7,8% rispetto all'8,0% dell'anno precedente, con le perdite nette di capitale che sono diminuite a 123 milioni di dollari rispetto ai 128 milioni di dollari. Anche il tasso di insolvenza ha mostrato un miglioramento, passando al 6,1% rispetto al 6,8%, con i prestiti in ritardo di oltre 30 giorni che sono scesi a 1,032 miliardi di dollari rispetto ai 1,170 miliardi di dollari dell'anno precedente.
Bread Financial Holdings (NYSE: BFH) ha divulgado sus métricas de desempeño de enero de 2025, mostrando mejoras en indicadores clave de crédito a pesar de una disminución en los volúmenes de préstamos. Al final del período, el total de préstamos en tarjetas de crédito y otros préstamos disminuyó a 18.366 mil millones de dólares desde 18.785 mil millones de dólares en comparación con el año anterior, lo que representa una disminución del 2% en préstamos promedio.
La tasa de pérdida neta mejoró al 7.8% desde el 8.0% del año anterior, con las pérdidas netas de capital disminuyendo a 123 millones de dólares desde 128 millones de dólares. La tasa de morosidad también mostró una mejora, bajando al 6.1% desde el 6.8%, con los préstamos morosos por más de 30 días disminuyendo a 1.032 mil millones de dólares desde 1.170 mil millones de dólares del año anterior.
Bread Financial Holdings (NYSE: BFH)는 2025년 1월 성과 지표를 발표했으며, 대출 규모가 줄어들었음에도 불구하고 주요 신용 지표에서 개선을 보여주었습니다. 기간 말 기준 신용 카드 및 기타 대출 총액은 전년 동기 187.85억 달러에서 183.66억 달러로 감소하여 평균 대출에서 2% 감소를 나타냅니다.
순손실률은 전년 동기 8.0%에서 7.8%로 개선되었으며, 순원금 손실은 1억 2300만 달러에서 1억 2800만 달러로 감소했습니다. 연체율도 개선되어 6.8%에서 6.1%로 떨어졌으며, 30일 이상 연체된 대출은 11.70억 달러에서 10.32억 달러로 감소했습니다.
Bread Financial Holdings (NYSE: BFH) a publié ses indicateurs de performance de janvier 2025, montrant des améliorations dans les principaux indicateurs de crédit malgré une baisse des volumes de prêts. À la fin de la période, le montant des prêts par carte de crédit et autres prêts a diminué à 18,366 milliards de dollars contre 18,785 milliards de dollars l'année précédente, représentant une baisse de 2% des prêts moyens.
Le taux de perte nette s'est amélioré à 7,8% contre 8,0% l'année précédente, avec des pertes nettes de capital diminuant à 123 millions de dollars contre 128 millions de dollars. Le taux de défaut a également montré une amélioration, tombant à 6,1% contre 6,8%, avec des prêts en retard de plus de 30 jours passant de 1,170 milliard de dollars à 1,032 milliard de dollars par rapport à l'année précédente.
Bread Financial Holdings (NYSE: BFH) hat seine Leistungskennzahlen für Januar 2025 veröffentlicht, die Verbesserungen bei wichtigen Kreditkennzahlen zeigen, obwohl das Kreditvolumen gesunken ist. Am Ende des Zeitraums sanken die ausstehenden Kreditkarten- und anderen Kredite auf 18,366 Milliarden US-Dollar im Vergleich zu 18,785 Milliarden US-Dollar im Vorjahr, was einem Rückgang von 2% bei den durchschnittlichen Krediten entspricht.
Die Nettostarverlustrate verbesserte sich auf 7,8% von 8,0% im Vorjahr, wobei die Nettokapitalverluste auf 123 Millionen US-Dollar von 128 Millionen US-Dollar sanken. Auch die Anzahl der säumigen Kredite verbesserte sich und fiel von 6,8% auf 6,1%, während die Kredite mit mehr als 30 Tagen Rückstand auf 1,032 Milliarden US-Dollar von 1,170 Milliarden US-Dollar im Vorjahr sanken.
- Net loss rate improved to 7.8% from 8.0% YoY
- Delinquency rate decreased to 6.1% from 6.8% YoY
- Net principal losses reduced to $123M from $128M YoY
- End-of-period credit card and other loans declined 2.2% YoY to $18.366B
- Average credit card and other loans decreased 2% YoY
Insights
Bread Financial's January 2025 metrics reveal a calculated approach to portfolio management amid evolving consumer credit conditions. The
The
The improving delinquency trend is particularly noteworthy as it runs counter to industry-wide pressure on consumer credit quality. The
COLUMBUS, Ohio, Feb. 11, 2025 (GLOBE NEWSWIRE) -- Bread Financial® Holdings, Inc. (NYSE: BFH), a tech-forward financial services company that provides simple, personalized payment, lending, and saving solutions to millions of U.S. consumers, 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 January 31, 2025 | For the month ended January 31, 2024 | ||||||
| (dollars in millions) | |||||||
| End-of-period credit card and other loans | $ | 18,366 | $ | 18,785 | |||
| Average credit card and other loans | $ | 18,530 | $ | 18,915 | |||
| Year-over-year change in average credit card and other loans | (2 | %) | (9 | %) | |||
| Net principal losses | $ | 123 | $ | 128 | |||
| Net loss rate | 7.8 | % | 8.0 | % | |||
| As of January 31, 2025 | As of January 31, 2024 | ||||||
| (dollars in millions) | |||||||
| 30 days + delinquencies – principal | $ | 1,032 | $ | 1,170 | |||
| Period ended credit card and other loans – principal | $ | 16,874 | $ | 17,311 | |||
| Delinquency rate | 6.1 | % | 6.8 | % | |||
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
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