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Bread Financial Provides Performance Update for September 2024

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Bread Financial Holdings (NYSE: BFH) released its September 2024 performance metrics. The company reported end-of-period credit card and other loans of $17.93 billion, with a 3% year-over-year increase in average loans for the month. The net loss rate was 7.4% for September and 7.8% for the quarter. Delinquency rates showed a slight increase to 6.4% compared to 6.3% in September 2023, with delinquent principal reaching $1.06 billion. The company also noted a methodology change in calculating average credit card loans starting January 2024.

Bread Financial Holdings (NYSE: BFH) ha pubblicato i suoi indicatori di prestazione per settembre 2024. L'azienda ha riportato crediti e altri prestiti a fine periodo pari a 17,93 miliardi di dollari, con un aumento del 3% rispetto all'anno precedente nei prestiti medi per il mese. Il tasso di perdita netto è stato del 7,4% per settembre e del 7,8% per il trimestre. I tassi di insolvenza hanno mostrato un lieve aumento al 6,4% rispetto al 6,3% di settembre 2023, con il capitale insolvente che ha raggiunto 1,06 miliardi di dollari. L'azienda ha inoltre segnalato un cambiamento nella metodologia di calcolo dei prestiti medi delle carte di credito a partire da gennaio 2024.

Bread Financial Holdings (NYSE: BFH) publicó sus métricas de rendimiento de septiembre de 2024. La compañía reportó préstamos de tarjetas de crédito y otros al final del periodo de 17.93 mil millones de dólares, con un incremento del 3% interanual en préstamos promedios para el mes. La tasa de pérdida neta fue del 7.4% para septiembre y del 7.8% para el trimestre. Las tasas de morosidad mostraron un ligero aumento al 6.4% en comparación con el 6.3% de septiembre de 2023, alcanzando un principal moroso de 1.06 mil millones de dólares. La compañía también señaló un cambio en la metodología para calcular los préstamos promedio de tarjetas de crédito a partir de enero de 2024.

Bread Financial Holdings (NYSE: BFH)는 2024년 9월의 성과 지표를 발표했습니다. 이 회사는 기말 카드 대출 및 기타 대출이 179억 3천만 달러에 달했다고 보고했으며, 이번 달 평균 대출이 전년 대비 3% 증가했습니다. 9월의 순 손실률은 7.4%, 분기 손실률은 7.8%였습니다. 연체율은 2023년 9월의 6.3%에 비해 약간 증가하여 6.4%를 기록했으며, 연체된 원금은 10억 6천만 달러에 이릅니다. 회사는 또한 2024년 1월부터 평균 카드 대출을 계산하는 방법이 변경되었음을 언급했습니다.

Bread Financial Holdings (NYSE: BFH) a publié ses indicateurs de performance pour septembre 2024. L'entreprise a rapporté des cartes de crédit et d'autres prêts à la fin de la période s'élevant à 17,93 milliards de dollars, avec une augmentation de 3% par rapport à l'année précédente des prêts moyens pour le mois. Le taux de perte nette était de 7,4% pour septembre et de 7,8% pour le trimestre. Les taux de délinquance ont montré une légère augmentation à 6,4% par rapport à 6,3% en septembre 2023, le capital en souffrance atteignant 1,06 milliard de dollars. L'entreprise a également noté un changement de méthodologie dans le calcul des prêts moyens par carte de crédit à partir de janvier 2024.

Bread Financial Holdings (NYSE: BFH) hat seine Leistungskennzahlen für September 2024 veröffentlicht. Das Unternehmen meldete Kreditkarten- und andere Darlehen zum Ende des Zeitraums in Höhe von 17,93 Milliarden Dollar, mit einem Zuwachs von 3% im Jahresvergleich bei den durchschnittlichen Darlehen für den Monat. Die Nettominderungsrate betrug im September 7,4% und im Quartal 7,8%. Die Insolvenzraten zeigten einen leichten Anstieg auf 6,4% im Vergleich zu 6,3% im September 2023, wobei der ausstehende Hauptbetrag 1,06 Milliarden Dollar erreichte. Das Unternehmen wies auch auf eine methodische Änderung bei der Berechnung der durchschnittlichen Kreditkartenkredite ab Januar 2024 hin.

Positive
  • 3% year-over-year growth in average credit card and other loans
  • Total loan portfolio maintained at $17.93 billion
Negative
  • Net loss rate of 7.4% for September and 7.8% for Q3 2024
  • Delinquency rate increased to 6.4% from 6.3% year-over-year
  • Delinquent principal increased to $1.06 billion from $1.04 billion year-over-year

Insights

The latest performance metrics from Bread Financial reveal concerning trends in credit quality. The $17.93 billion credit card portfolio shows marginal growth of 3% year-over-year, but more importantly, displays deteriorating credit metrics. The net loss rate of 7.4% for September and 7.8% for Q3 2024 indicates significant charge-offs, while delinquency rates have crept up to 6.4% from 6.3% year-over-year.

These metrics suggest increasing pressure on consumer credit quality, likely due to the higher interest rate environment and persistent inflation affecting household budgets. The elevated loss rates could impact profitability and may require increased loan loss provisions, potentially affecting future earnings. This trend aligns with broader industry observations of normalization in credit performance post-pandemic.

COLUMBUS, Ohio, Oct. 24, 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
September 30, 2024
 For the
three months ended
September 30, 2024
 (dollars in millions)
End-of-period credit card and other loans$17,933  $17,933 
Average credit card and other loans (1)$17,955  $17,766 
Year-over-year change in average credit card and other loans (1) 3%  1%
Net principal losses$110  $347 
Net loss rate (1) 7.4%  7.8%
        


 As of
September 30, 2024
 As of
September 30, 2023
 (dollars in millions)
30 days + delinquencies – principal$1,062  $1,038 
Period ended credit card and other loans – principal$16,476  $16,585 
Delinquency rate 6.4%  6.3%

__________________________________________________________________________

(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.

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 was Bread Financial's (BFH) net loss rate in September 2024?

Bread Financial's net loss rate was 7.4% for September 2024.

What is Bread Financial's (BFH) current delinquency rate as of September 2024?

The delinquency rate was 6.4% as of September 2024, slightly up from 6.3% in September 2023.

How much did Bread Financial's (BFH) average loans grow year-over-year in September 2024?

Bread Financial's average credit card and other loans grew 3% year-over-year in September 2024.

What was Bread Financial's (BFH) total loan portfolio value in September 2024?

Bread Financial's end-of-period credit card and other loans totaled $17.933 billion in September 2024.

Bread Financial Holdings, Inc.

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