Bread Financial Provides Performance Update for July 2022

Rhea-AI Summary

Bread Financial Holdings (NYSE: BFH) provided a performance update highlighting key metrics for July 2022. The company reported an end-of-period credit card and other loans totaling $17,884 million, up from $15,916 million in July 2021. The average loans also rose by 12%, amounting to $17,471 million. Notably, the net loss rate increased to 4.5% from 4.2% due to a planned transition in credit card processing services, which affected both the net loss rate and delinquency rate, recorded at 4.8%.

Positive

• End-of-period loans rose to $17,884 million, a significant increase from $15,916 million in July 2021.
• Average loans increased by 12% to $17,471 million year-over-year.

Negative

• Net loss rate increased to 4.5% from 4.2%, indicating higher losses.
• Delinquency rate rose to 4.8% from 3.4%, reflecting increased payment difficulties.

COLUMBUS, Ohio--(BUSINESS WIRE)-- 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, 2022			For the month ended July 31, 2021
	(dollars in millions)
End-of-period credit card and other loans	$	17,884		$	15,916
Average credit card and other loans	$	17,471		$	15,557
Year-over-year change in average credit card and other loans		12%			1%
Net principal losses (1)	$	65		$	55
Net loss rate (1)		4.5%			4.2%

	As of July 31, 2022			As of July 31, 2021
	(dollars in millions)
30 days + delinquencies – principal (2)	$	810		$	518
Period ended credit card and other loans – principal	$	16,885		$	15,179
Delinquency rate (2)		4.8%			3.4%
__________________________

(1)	The July 2022 Net principal losses, and consequentially the Net loss rate, were impacted by the planned transition of credit card processing services. Excluding the transition impact, which is timing-related, the Net loss rate for July 2022 would have increased sequentially following seasonal trends.
(2)	The July 2022 30 days + delinquencies – principal, and consequentially the Delinquency rate, were also impacted by the planned transition of credit card processing services; we expect insignificant timing-related impacts in our Delinquency rates for the remainder of the year.

About Bread Financial^™

Bread Financial^TM (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 product suite, including private label and co-brand credit cards, installment lending, and buy now, pay later (BNPL). Bread Financial also offers direct-to-consumer solutions that give customers more access, choice and freedom through its branded Bread Cashback^TM American Express^® Credit Card and Bread Savings^TM products.

Bread Financial is an S&P MidCap 400 company headquartered in Columbus, Ohio, and committed to sustainable business practices powered by its 6,000+ global associates. To learn more about Bread Financial, visit BreadFinancial.com or follow us on Facebook, LinkedIn, Twitter 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, initiation or completion of strategic initiatives, including our ability to realize the intended benefits of the spinoff of the LoyaltyOne® segment, future dividend declarations, future economic conditions, including, but not limited to, market conditions, persistent inflation, rising interest rates, the increased probability of a recession and related impacts on consumer behavior, future legislative or regulatory actions that could have impact on our business and results of operations, including any such actions that may be taken with respect to late fees or other charges, developments in the geopolitical environment, including the war in Ukraine, and the ongoing effects of the global COVID-19 pandemic, all of which factors remain difficult to predict.

We believe that our expectations are based on reasonable assumptions. Forward-looking statements, however, are subject to a number of risks and uncertainties that could cause actual results to 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. These risks and uncertainties include, but are not limited to, factors set forth in the Risk Factors section 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.

View source version on businesswire.com: https://www.businesswire.com/news/home/20220815005063/en/

Investors/Analysts

Brian Vereb

Bread Financial

614-528-4516

Brian.Vereb@BreadFinancial.com



Media

Shelley Whiddon

Bread Financial

214-494-3811

Shelley.Whiddon@BreadFinancial.com

Source: Bread Financial

FAQ

What were the end-of-period loans for Bread Financial as of July 31, 2022?

As of July 31, 2022, Bread Financial reported end-of-period loans totaling $17,884 million.

How much did the average loans increase year-over-year for Bread Financial?

Bread Financial's average loans increased by 12% year-over-year, reaching $17,471 million.

What was the net loss rate for Bread Financial in July 2022?

The net loss rate for Bread Financial in July 2022 was 4.5%, up from 4.2% in July 2021.

What is the delinquency rate reported by Bread Financial for July 2022?

The delinquency rate reported by Bread Financial for July 2022 was 4.8%, compared to 3.4% in July 2021.