Bread Financial reports slight improvement in credit metrics for October

COLUMBUS, Ohio - Bread Financial Holdings, Inc. (NYSE:BFH) reported improved credit performance metrics for October 2025 compared to the same period last year, according to a performance update released Thursday. The company's shares currently trade at $63.96, having delivered a 15.33% return over the past year.

The financial services company's net loss rate decreased to 7.5% in October 2025, down from 7.9% in October 2024. Net principal losses fell to $112 million from $120 million year-over-year. According to InvestingPro data, Bread Financial appears undervalued based on its Fair Value assessment, with the stock trading at a low P/E ratio of 6.52.

Delinquency rates also showed improvement, with 30-day-plus delinquencies declining to 6.1% from 6.4% in the prior-year period. Total delinquent principal dropped to $963 million from $1,056 million. The company maintains a "GOOD" overall financial health score of 2.94, as rated by InvestingPro.

The company's credit card and other loans portfolio contracted slightly, with end-of-period loans at $17.69 billion, down from $17.92 billion a year earlier. Average credit card and other loans decreased by 1% year-over-year to $17.63 billion.

Bread Financial noted that hurricanes Helene and Milton had affected its fourth-quarter 2024 results, as the company froze delinquency progression for cardholders in Federal Emergency Management Agency identified impact zones for one billing cycle, resulting in modestly lower net principal losses and net loss rate.

Bread Financial provides payment, lending and saving solutions to U.S. consumers, including general purpose credit cards and private label and co-brand credit card programs for retail partners.

The information in this article is based on a company press release statement.

In other recent news, Bread Financial Holdings Inc. reported a significant earnings beat for the third quarter of 2025. The company's earnings per share (EPS) reached $4.02, surpassing the forecast of $2.16. Additionally, Bread Financial reported revenue of $971 million, slightly above the expected $967.72 million. In another development, Bread Financial announced the pricing of $500 million in 6.750% senior notes due 2031. The notes will be sold at 100% of their principal value in a private offering, with the closure expected on November 6, 2025. The company plans to use the approximately $493 million in net proceeds, along with about $275 million in cash on hand, to redeem all outstanding 9.750% Senior Notes due 2029, of which $719 million remains outstanding. These recent developments highlight Bread Financial's strategic financial maneuvers and strong earnings performance.

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