Bread Financial Provides Performance Update for September 2022

Rhea-AI Summary

Bread Financial Holdings, Inc. (NYSE: BFH) provided a performance update, revealing key metrics as of September 30, 2022. The end-of-period credit card and other loans reached $18.126 billion, while average loans were $17.720 billion, marking a 16% year-over-year increase. However, net principal losses totaled $74 million for the last month, resulting in a net loss rate of 5.0% and a delinquency rate of 5.7%, up from 3.8% the previous year. These figures reflect the impact of transitioning credit card processing services.

Positive

• End-of-period credit card and loans at $18.126 billion.
• Average loans increased by 16% year-over-year.
• A tech-forward approach with a comprehensive product suite.

Negative

• Net principal losses of $74 million for the month.
• Net loss rate remains high at 5.0%.
• Delinquency rate increased to 5.7%, up from 3.8% the previous year.

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			For the
	month ended			three months ended
	September 30, 2022			September 30, 2022
	(dollars in millions)
End-of-period credit card and other loans	$	18,126		$	18,126
Average credit card and other loans	$	17,720		$	17,598
Year-over-year change in average credit card and other loans		16%			14%
Net principal losses (1)	$	74		$	218
Net loss rate (1)		5.0%			5.0%

	As of			As of
	September 30, 2022			September 30, 2021
	(dollars in millions)
30 days + delinquencies – principal (2)	$	970		$	562
Period ended credit card and other loans – principal	$	17,029		$	14,940
Delinquency rate (2)		5.7%			3.8%

(1)		For the three months ended September 30, 2022 Net principal losses, and consequentially the Net loss rate, were impacted by the transition of our credit card processing services. Excluding this impact, which is timing-related, the Net loss rate would have been higher.
(2)		The September 2022 30 days + delinquencies – principal, and consequentially the Delinquency rate, were impacted by the transition of our credit card processing services.

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 the ability to realize the intended benefits of the spinoff of our former 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, interchange 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 and elsewhere 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/20221027005183/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 is the recent performance update for Bread Financial (BFH)?

Bread Financial reported end-of-period loans of $18.126 billion as of September 30, 2022, with a net loss rate of 5.0%.

How did the delinquency rate change for Bread Financial (BFH) in 2022?

The delinquency rate for Bread Financial rose to 5.7% as of September 30, 2022, compared to 3.8% in the previous year.

What are the net principal losses reported by Bread Financial (BFH)?

Bread Financial reported net principal losses of $74 million for the month ended September 30, 2022.

What was the year-over-year change in average loans for Bread Financial (BFH)?

Average loans for Bread Financial increased by 16% year-over-year as of September 30, 2022.

What financial metrics did Bread Financial (BFH) disclose in their update?

Key metrics included end-of-period loans of $18.126 billion, average loans of $17.720 billion, a net loss rate of 5.0%, and a delinquency rate of 5.7%.