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Bread Financial Provides Performance Update for November 2024

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Bread Financial Holdings (NYSE: BFH) released its November 2024 performance update, showing mixed results in key metrics. The company reported end-of-period credit card and other loans at $18.143 billion, down from $18.780 billion in November 2023. The average credit card loans decreased by 1% year-over-year.

The net loss rate slightly increased to 8.0% from 7.9% year-over-year, while the delinquency rate improved to 6.2% from 6.5%. The company noted that hurricanes Helene and Milton impacted Q4 2024 metrics, as they froze delinquency progression for cardholders in FEMA-identified zones, which will result in higher metrics in Q2 2025.

Bread Financial Holdings (NYSE: BFH) ha pubblicato l'aggiornamento delle prestazioni di novembre 2024, mostrando risultati misti nei principali indicatori. L'azienda ha riportato il valore dei prestiti tramite carte di credito e altri prestiti a $18,143 miliardi, in calo rispetto a $18,780 miliardi di novembre 2023. I prestiti medi con carta di credito sono diminuiti dell'1% su base annua.

Il tasso di perdita netto è leggermente aumentato all' 8,0% rispetto al 7,9% dell'anno precedente, mentre il tasso di insolvenza è migliorato al 6,2%, rispetto al 6,5%. L'azienda ha osservato che gli uragani Helene e Milton hanno avuto un impatto sui risultati del Q4 2024, poiché hanno congelato la progressione dell'insolvenza per i titolari di carta nelle zone identificate dalla FEMA, il che porterà a risultati migliori nel Q2 2025.

Bread Financial Holdings (NYSE: BFH) publicó su actualización de rendimiento de noviembre de 2024, mostrando resultados mixtos en los principales indicadores. La compañía reportó el total de préstamos de tarjetas de crédito y otros préstamos en $18,143 mil millones, una disminución desde $18,780 mil millones en noviembre de 2023. Los préstamos promedio de tarjeta de crédito disminuyeron un 1% en comparación con el año anterior.

La tasa de pérdida neta aumentó ligeramente al 8.0% desde el 7.9% del año anterior, mientras que la tasa de morosidad mejoró al 6.2% desde el 6.5%. La compañía señaló que los huracanes Helene y Milton afectaron las métricas del Q4 2024, ya que congelaron la progresión de la morosidad para los titulares de tarjetas en las zonas identificadas por FEMA, lo que resultará en métricas más altas en el Q2 2025.

Bread Financial Holdings (NYSE: BFH)는 2024년 11월 성과 업데이트를 발표하며 주요 지표에서 혼합된 결과를 보여주었습니다. 회사는 신용 카드 및 기타 대출의 연말 총액이 $18.143억 달러로, 2023년 11월의 $18.780억 달러에서 감소했다고 보고했습니다. 평균 신용 카드 대출은 전년 대비 1% 감소했습니다.

순 손실률은 전년 대비 8.0%에서 7.9%로 소폭 증가했으며, 연체율은 6.2%로 개선되어 6.5%에서 하락했습니다. 회사는 허리케인 헬레네와 밀튼이 2024년 4분기 지표에 영향을 미쳤다고 언급했으며, 이는 FEMA가 식별한 지역의 카드 소지자의 연체 진행을 동결시켜 2025년 2분기에 더 높은 지표를 초래할 것이라고 합니다.

Bread Financial Holdings (NYSE: BFH) a publié sa mise à jour de performance de novembre 2024, montrant des résultats mitigés dans les indicateurs clés. La société a déclaré que le montant total des cartes de crédit et d'autres prêts s'élevait à $18,143 milliards, en baisse par rapport à $18,780 milliards en novembre 2023. Les prêts moyens par carte de crédit ont diminué de 1 % par rapport à l'année précédente.

Le taux de perte nette a légèrement augmenté à 8,0% contre 7,9 % l'année précédente, tandis que le taux de défaut s'est amélioré à 6,2% contre 6,5 %. La société a noté que les ouragans Helene et Milton ont eu un impact sur les métriques du T4 2024, car ils ont gelé la progression des défauts pour les titulaires de carte dans les zones identifiées par la FEMA, ce qui entraînera des résultats plus élevés au T2 2025.

Bread Financial Holdings (NYSE: BFH) hat sein Leistungsupdate für November 2024 veröffentlicht und zeigt gemischte Ergebnisse bei den wichtigsten Kennzahlen. Das Unternehmen berichtete von einem Gesamtbetrag der Kreditkarten- und sonstigen Darlehen in Höhe von $18,143 Milliarden, ein Rückgang von $18,780 Milliarden im November 2023. Die durchschnittlichen Kreditkartendarlehen sanken im Vergleich zum Vorjahr um 1%.

Die Nettoverlustquote stieg leicht auf 8,0% von 7,9% im Jahresvergleich, während die Verzugsquote sich auf 6,2% von 6,5% verbesserte. Das Unternehmen stellte fest, dass die Wirbelstürme Helene und Milton die Kennzahlen im 4. Quartal 2024 beeinflussten, da sie den Verlauf der Verzugsquote für Karteninhaber in von der FEMA identifizierten Zonen einfrohren, was zu höheren Kennzahlen im 2. Quartal 2025 führen wird.

Positive
  • Delinquency rate improved to 6.2% from 6.5% year-over-year
  • Net principal losses decreased to $118M from $120M year-over-year
Negative
  • Net loss rate increased to 8.0% from 7.9% year-over-year
  • End-of-period credit card loans declined to $18.14B from $18.78B year-over-year
  • Average credit card loans decreased by 1% year-over-year

Insights

The November performance metrics reveal concerning trends for Bread Financial. The net loss rate increased slightly to 8.0% from 7.9% year-over-year, while credit card loans decreased by 1%. Though delinquency rates improved to 6.2% from 6.5%, they remain elevated compared to industry standards. The $18.1 billion loan portfolio shows continued contraction, suggesting cautious lending practices amid economic uncertainties. The hurricane-related payment freezes will create artificial volatility in loss metrics between Q4 2024 and Q2 2025, making year-over-year comparisons less meaningful. The overall metrics indicate persistent credit quality challenges and portfolio shrinkage, which could pressure near-term earnings.

The delinquency metrics warrant close attention. While the 30bps improvement in delinquency rate is positive, the absolute level of 6.2% remains significantly above credit card industry averages, which typically range from 2-3%. The $1.03 billion in delinquent balances, though lower than last year, represents a substantial portion of the portfolio. The elevated net charge-off rate of 8.0% suggests continued stress on the consumer credit front. The hurricane-related payment freezes may temporarily mask true credit deterioration, potentially leading to a spike in losses during Q2 2025.

COLUMBUS, Ohio, Dec. 11, 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
November 30, 2024
 For the
month ended
November 30, 2023
 (dollars in millions)
End-of-period credit card and other loans$18,143  $18,780 
Average credit card and other loans (1)$17,947  $18,200 
Year-over-year change in average credit card and other loans (1) (1%)  (8%)
Net principal losses (2)$118  $120 
Net loss rate (1)(2) 8.0%  7.9%


 As of
November 30, 2024
 As of
November 30, 2023
 (dollars in millions)
30 days + delinquencies – principal$1,032  $1,131 
Period ended credit card and other loans – principal$16,695  $17,402 
Delinquency rate 6.2%  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 slightly lower Net principal losses and Net loss rate in the fourth quarter of 2024, and consequently offsetting higher 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 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, Bread Rewards™ 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, 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 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

What is Bread Financial's (BFH) net loss rate for November 2024?

Bread Financial reported a net loss rate of 8.0% for November 2024, slightly higher than the 7.9% reported in November 2023.

How did BFH's credit card loan portfolio perform in November 2024?

BFH's end-of-period credit card and other loans decreased to $18.143 billion in November 2024, down from $18.780 billion in November 2023, showing a 1% year-over-year decline in average loans.

What was Bread Financial's delinquency rate in November 2024?

Bread Financial's delinquency rate was 6.2% in November 2024, showing an improvement from 6.5% in November 2023.

How will hurricanes Helene and Milton affect BFH's future financial metrics?

The hurricanes will result in slightly lower net principal losses and net loss rate in Q4 2024, but will lead to offsetting higher metrics in Q2 2025 due to frozen delinquency progression in FEMA-identified impact zones.

Bread Financial Holdings, Inc.

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