Bread Financial Provides Performance Update for May 2022
Bread Financial Holdings (NYSE: BFH) reported significant updates regarding its financial performance as of May 31, 2022. End-of-period credit card and other loans totaled $17,515 million, reflecting a year-over-year increase of 12%. However, net principal losses reached $88 million, representing a substantial rise from $361 million in the previous period. The delinquency rate also increased to 4.0%, up from 3.2% year-over-year. Overall, the company's performance indicates challenges in managing credit risks alongside growth in its lending portfolio.
- End-of-period credit card and other loans increased by 12% year-over-year, reaching $17,515 million.
- Net principal losses increased to $88 million, a significant rise from $361 million compared to the previous period.
- Delinquency rate rose to 4.0%, up from 3.2% year-over-year.
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For the
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For the five
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(dollars in millions) |
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End-of-period credit card and other loans |
$ |
17,515 |
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$ |
17,515 |
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Average credit card and other loans (1) |
$ |
17,044 |
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$ |
16,732 |
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Year-over-year change in average credit card and other loans |
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Net principal losses (2) |
$ |
88 |
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$ |
361 |
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Net principal losses as a percentage of average credit card and other loans (2)(3) |
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(1) |
Average credit card and other loans includes the effect of our acquisition of the NFL Extra Points Credit Card portfolio in |
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(2) |
Net principal losses, and consequentially Net principal losses as a percentage of average credit card and other loans, contain the effects of the purchase of previously written-off and subsequently sold accounts pursuant to a legacy contract, the terms of which are subject to an ongoing legal dispute. Excluding this item, Net principal losses as a percentage of average credit card and other loans in |
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(3) |
Compares to |
As of
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As of
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(dollars in millions) |
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30 days + delinquencies - principal |
$ |
665 |
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$ |
483 |
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Period ended credit card and other loans - principal |
$ |
16,659 |
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$ |
14,923 |
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Delinquency rate |
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About
Formerly
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, and future economic conditions, including, but not limited to, market conditions, inflation, developments in the geopolitical environment, including the war in
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/20220615005067/en/
Investors/Analysts
614-528-4516
Brian.Vereb@BreadFinancial.com
Media
214-494-3811
Shelley.Whiddon@BreadFinancial.com
Source:
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