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 themonth endedAugust
31, 2024 |
|
For themonth endedAugust
31, 2023 |
|
(dollars in millions) |
End-of-period credit card and other loans |
$ |
17,936 |
|
|
$ |
17,949 |
|
Average credit card and other
loans (1) |
$ |
17,760 |
|
|
$ |
17,544 |
|
Year-over-year change in
average credit card and other loans (1) |
|
1 |
% |
|
|
— |
% |
Net principal losses |
$ |
118 |
|
|
$ |
99 |
|
Net loss rate (1) |
|
7.8 |
% |
|
|
6.7 |
% |
|
|
|
|
|
|
|
|
|
As ofAugust 31, 2024 |
|
As ofAugust 31, 2023 |
|
(dollars in millions) |
30 days + delinquencies – principal |
$ |
1,029 |
|
|
$ |
987 |
|
Period ended credit card and
other loans – principal |
$ |
16,493 |
|
|
$ |
16,638 |
|
Delinquency rate |
|
6.2 |
% |
|
|
5.9 |
% |
__________________________________________________________________________
(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 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, Twitter/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; 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 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 liability, disputes or other adverse impacts
arising out of or relating to the spinoff of our former LoyaltyOne
segment or the bankruptcy filings of Loyalty Ventures Inc. and
certain of its subsidiaries. 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
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