Bread Financial™ Provides Performance Update for July 2024
Bread Financial (NYSE: BFH), a tech-forward financial services company, reported its performance update for July 2024.
As of July 31, 2024, the company's credit card and other loans at month-end were $17,659 million, down from $17,963 million the previous year. Average credit card and other loans stood at $17,588 million, showing no year-over-year change.
The net principal losses increased to $120 million from $108 million, resulting in a net loss rate of 8.0%, up from 7.4%. Delinquency rates also rose, with 30+ days delinquencies at $1,004 million (6.2%) compared to $956 million (5.7%) the previous year.
The rise in net principal losses and delinquency rates may concern investors, reflecting potential risks in Bread Financial's credit portfolio.
Bread Financial (NYSE: BFH), una società di servizi finanziari orientata alla tecnologia, ha riportato l'aggiornamento delle sue performance per luglio 2024.
Al 31 luglio 2024, i prestiti tramite carte di credito e altri prestiti della società alla fine del mese ammontavano a 17.659 milioni di dollari, in diminuzione rispetto ai 17.963 milioni di dollari dell'anno precedente. La media dei prestiti tramite carte di credito e altri prestiti si è attestata a 17.588 milioni di dollari, mostrando nessuna variazione anno su anno.
Le perdite nette di capitale sono aumentate a 120 milioni di dollari rispetto ai 108 milioni di dollari, risultando in un tasso di perdita netto dell'8,0%, in aumento rispetto al 7,4%. I tassi di morosità sono aumentati, con le morosità superiori a 30 giorni che ammontavano a 1.004 milioni di dollari (6,2%) rispetto ai 956 milioni di dollari (5,7%) dell'anno precedente.
L'aumento delle perdite nette di capitale e dei tassi di morosità potrebbe preoccupare gli investitori, riflettendo i potenziali rischi nel portafoglio di crediti di Bread Financial.
Bread Financial (NYSE: BFH), una empresa de servicios financieros orientada a la tecnología, informó sobre su actualización de rendimiento para julio de 2024.
Al 31 de julio de 2024, los préstamos a través de tarjetas de crédito y otros préstamos de la empresa a fin de mes fueron de 17,659 millones de dólares, una disminución desde los 17,963 millones de dólares del año anterior. El promedio de préstamos a través de tarjetas de crédito y otros préstamos se situó en 17,588 millones de dólares, sin cambios en comparación con el año anterior.
Las pérdidas netas de capital aumentaron a 120 millones de dólares desde 108 millones de dólares, resultando en una tasa de pérdida neta del 8.0%, en comparación con el 7.4%. Las tasas de morosidad también aumentaron, con morosidades de más de 30 días alcanzando los 1,004 millones de dólares (6.2%) en comparación con los 956 millones de dólares (5.7%) del año anterior.
El aumento de las pérdidas netas de capital y de las tasas de morosidad puede preocupar a los inversores, reflejando posibles riesgos en el portafolio de créditos de Bread Financial.
Bread Financial (NYSE: BFH), 기술 중심의 금융 서비스 회사, 2024년 7월 성과 업데이트를 보고했습니다.
2024년 7월 31일 기준으로, 회사의 신용카드 및 기타 대출은 월말 기준 176억 5,900만 달러로, 전년도 179억 6,300만 달러에서 감소했습니다. 신용카드 및 기타 대출의 평균은 175억 8,800만 달러였으며, 전년 대비 변화가 없었습니다.
순 자본 손실은 1억 2,000만 달러로 증가하여 1억 800만 달러에서 다시 증가하였고, 순손실 비율은 8.0%로 7.4%에서 증가했습니다. 연체율도 상승하여, 30일 이상 연체된 금액은 10억 4,000만 달러(6.2%)에 달하며, 전년도 9억 5,600만 달러(5.7%)와 비교됩니다.
순 자본 손실 및 연체율의 증가는 투자자들에게 우려를 불러일으킬 수 있으며, Bread Financial의 신용 포트폴리오에서 잠재적인 위험을 반영하고 있습니다.
Bread Financial (NYSE: BFH), une société de services financiers axée sur la technologie, a rapporté sa mise à jour de performance pour juillet 2024.
Au 31 juillet 2024, les prêts par carte de crédit et autres prêts de la société à la fin du mois s'élevaient à 17 659 millions de dollars, en baisse par rapport à 17 963 millions de dollars l'année précédente. La moyenne des prêts par carte de crédit et autres prêts était de 17 588 millions de dollars, sans changement d'une année sur l'autre.
Les pertes nettes en capital ont augmenté à 120 millions de dollars contre 108 millions de dollars, entraînant un taux de perte nette de 8,0 %, en hausse par rapport à 7,4 %. Les taux d'impayés ont également augmenté, avec des impayés de plus de 30 jours s'élevant à 1 004 millions de dollars (6,2 %) comparé à 956 millions de dollars (5,7 %) l'année précédente.
L'augmentation des pertes nettes en capital et des taux d'impayés pourrait inquiéter les investisseurs, reflétant les risques potentiels dans le portefeuille de crédits de Bread Financial.
Bread Financial (NYSE: BFH), ein technologieorientiertes Finanzdienstleistungsunternehmen, veröffentlichte sein Leistungsupdate für Juli 2024.
Zum 31. Juli 2024 betrugen die Kredite über Kreditkarten und andere Darlehen zum Monatsende 17.659 Millionen Dollar, ein Rückgang gegenüber 17.963 Millionen Dollar im Vorjahr. Die durchschnittlichen Kredite über Kreditkarten und andere Darlehen beliefen sich auf 17.588 Millionen Dollar, ohne Änderungen im Jahresvergleich.
Die Nettokapitalverluste stiegen auf 120 Millionen Dollar von 108 Millionen Dollar, was zu einer Nettorate von Verlusten von 8,0 % führte, ein Anstieg von 7,4 %. Auch die Verzugssätze stiegen, wobei die Verzüge von mehr als 30 Tagen 1.004 Millionen Dollar (6,2 %) betrugen, verglichen mit 956 Millionen Dollar (5,7 %) im Vorjahr.
Der Anstieg der Nettokapitalverluste und der Verzugssätze könnte Investoren beunruhigen und potenzielle Risiken im Kreditportfolio von Bread Financial widerspiegeln.
- None.
- Net principal losses increased to $120 million from $108 million.
- Net loss rate rose to 8.0% from 7.4%.
- Delinquency rate increased to 6.2% from 5.7%.
- End-of-period credit card and other loans decreased to $17,659 million from $17,963 million.
Insights
Bread Financial's July 2024 performance update reveals concerning trends. The net loss rate increased to
The company's end-of-period credit card and other loans decreased by
Investors should closely monitor these trends, as persistent increases in loss and delinquency rates could lead to higher provisions for loan losses, potentially squeezing margins and affecting the company's financial performance in the coming quarters.
The rising delinquency and net loss rates are red flags for Bread Financial's credit risk profile. The
Of particular concern is the acceleration of losses compared to delinquencies. This suggests that once customers fall behind, they're struggling more to recover, potentially leading to higher charge-offs in the future. The company may need to tighten underwriting standards or increase loss provisions, which could impact loan growth and profitability.
These trends warrant close attention, as sustained increases in credit losses could erode the company's capital buffers and potentially trigger regulatory scrutiny.
Bread Financial's performance update reflects broader industry challenges. The rising delinquency and loss rates align with trends seen across the consumer credit sector, likely driven by inflationary pressures and economic uncertainties affecting household finances.
Despite these headwinds, Bread Financial's tech-forward approach and diverse product offerings could provide some resilience. Their focus on digital-first solutions and data insights may help in better risk management and customer engagement. The company's expansion into buy now, pay later (BNPL) products through Bread Pay™ could also offer growth opportunities in a rapidly evolving payment landscape.
However, investors should weigh these potential advantages against the deteriorating credit metrics and overall economic conditions impacting the consumer finance sector.
COLUMBUS, Ohio, Aug. 15, 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 July 31, 2024 | For the month ended July 31, 2023 | ||||||
| (dollars in millions) | |||||||
| End-of-period credit card and other loans | $ | 17,659 | $ | 17,963 | |||
| Average credit card and other loans (1) | $ | 17,588 | $ | 17,560 | |||
| Year-over-year change in average credit card and other loans (1) | — | % | 1 | % | |||
| Net principal losses (2) | $ | 120 | $ | 108 | |||
| Net loss rate (1)(2) | 8.0 | % | 7.4 | % | |||
| As of July 31, 2024 | As of July 31, 2023 | ||||||
| (dollars in millions) | |||||||
| 30 days + delinquencies – principal | $ | 1,004 | $ | 956 | |||
| Period ended credit card and other loans – principal | $ | 16,228 | $ | 16,688 | |||
| Delinquency rate | 6.2 | % | 5.7 | % | |||
| ________________________________________________________________________________________ | |
| (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 previously communicated, the month ended July 31, 2023, Net principal losses and Net loss rate were impacted by the transition of our credit card processing services in June 2022. |
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
FAQ
What were Bread Financial's net principal losses for July 2024?
How has Bread Financial's net loss rate changed in July 2024?
What is the delinquency rate for Bread Financial as of July 2024?
How did Bread Financial's end-of-period credit card and other loans change in July 2024?
