Bread Financial reports lower net loss and delinquency rates

COLUMBUS, Ohio - Bread Financial Holdings, Inc. (NYSE: BFH), a company specializing in personalized financial services, has released its latest performance figures, showing a decrease in both net loss rate and delinquency rate. The update highlights a net loss rate of 8.6% for the month ended February 28, 2025, a slight improvement from the 8.9% reported for the same period last year. Additionally, the delinquency rate has seen a reduction, coming in at 6.2% compared to 6.7% as of February 29, 2024. According to InvestingPro data, six analysts have recently revised their earnings expectations upward for the upcoming period, and the company’s current market valuation suggests it may be undervalued based on Fair Value analysis.

The data indicates a year-over-year decrease in average credit card and other loans, with a 2% drop from $18,541 million to $18,141 million. The company’s end-of-period credit card and other loans stood at $17,949 million, a decrease from $18,391 million reported the previous year. Net principal losses were reported at $120 million, which is lower than the $131 million recorded last year. The company maintains strong financial health with an EBITDA of $1.97 billion and has consistently paid dividends for 10 consecutive years, currently yielding 1.71%.

Bread Financial, known for its tech-forward approach, offers a range of payment solutions, lending, and saving products to millions of U.S. consumers. The company’s financial services are designed to support customer passions and improve their quality of life. Bread Financial also partners with well-known brands in various sectors to provide private label and co-brand credit cards, as well as pay-over-time products.

The company’s performance update is based on a press release statement and presents a snapshot of its recent financial health. It’s important to note that forward-looking statements in the release are subject to risks and uncertainties, which can lead to actual results differing materially from projected outcomes.

Investors and analysts typically monitor such updates closely as indicators of a company’s operational stability and credit risk management effectiveness. Bread Financial’s latest figures could be seen as a positive sign in the context of the broader economic challenges and competitive pressures within the financial services industry. For deeper insights, InvestingPro subscribers can access comprehensive analysis including 8 additional ProTips and a detailed Pro Research Report, part of the platform’s coverage of over 1,400 US stocks, helping investors make more informed decisions through expert analysis and advanced metrics.

In other recent news, Bread Financial Holdings, Inc. has announced the closure of its offering of $400 million in subordinated notes, maturing in 2035. The notes carry a fixed interest rate of 8.375% until 2030, after which the rate will reset. This financial maneuver is part of the company’s ongoing capital structure management. Additionally, Bread Financial has introduced a $150 million stock buyback program with no set expiration date, further aimed at strengthening its financial position. The program allows for the repurchase of shares based on market conditions and regulatory requirements. Meanwhile, JMP Securities has maintained a Market Perform rating on Bread Financial, citing competitive pressures from Buy Now, Pay Later services and a shift towards co-branded credit cards. The firm evaluated the company’s valuation, noting uncertainties in net interest margins. Lastly, Bread Financial reported a reduction in its net loss and delinquency rates for January 2025, signaling an improvement in credit performance. The company’s end-of-period credit card and other loans slightly decreased to $18,366 million compared to the previous year.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.