Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2022 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Commission file number 001-15749 BREAD FINANCIAL HOLDINGS, INC. (Exact name of registrant as specified in its charter) | --- | --- | |-------------------------------------- ...

Financial Data and Key Metrics Changes - Bread Financial reported credit sales of $8.1 billion, up 10% year-over-year, with revenue increasing 17% compared to Q2 2021 [22][23] - Average loans rose by 11%, while end-of-period loans increased by 13%, driven by strong credit sales and moderating payment rates [22][23] - Net income was $12 million with diluted EPS of $0.25, impacted by a $166 million CECL reserve build and a $21 million write-down related to Loyalty Ventures [25][26] Business Line Data and Key Metrics Changes - The company experienced strong growth in consumer deposit balances, with retail deposit balances up 75% year-over-year [8] - The American Express Bread Cashback Card showed early success, particularly among millennial and Gen-X consumers, with strong spending in everyday categories [9] - The company signed over 50 new small- and medium-sized partners in the second quarter, focusing on profitable lending [16] Market Data and Key Metrics Changes - Delinquency rates increased to 4.4%, while the net loss rate was 5.6%, reflecting normalization from historical lows [23][34] - The reserve rate increased to 11.2% due to heightened economic uncertainty and a potential recession [35][36] - The company noted that consumer sentiment has weakened, but retail sales continue to rise, indicating a resilient consumer base [11] Company Strategy and Development Direction - Bread Financial is focused on sustainable, profitable growth, with strategic investments in technology modernization and digital advancement totaling over $125 million [42][44] - The company aims to diversify its portfolio through new partnerships and acquisitions, including a significant relationship with AAA [13][58] - The management team emphasizes a proactive approach to credit risk management and has implemented a recession readiness playbook [46][50] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the consumer's financial position despite concerns about a potential recession, noting low unemployment and rising wages [11][12] - The company anticipates continued loan growth in the low double-digit range for 2022, driven by strong sales activity and new business signings [39][40] - Management remains cautious about the economic outlook, adjusting reserve rates to reflect increased recession probabilities [35][56] Other Important Information - The company completed a significant technology migration to the cloud, enhancing operational efficiencies and scalability [18][19] - Noninterest income was negatively impacted by a $21 million write-down related to Loyalty Ventures, but excluding this, it correlated closely with credit sales growth [27][28] - The company is not planning to be a strategic investor in Loyalty Ventures and intends to monetize its remaining stake [80][81] Q&A Session Summary Question: Credit outlook and reserve build - Management expressed confidence in the portfolio mix but acknowledged the need for a conservative approach due to rising unemployment scenarios [51][52][54] Question: Return on equity targets - The company continues to target a mid- to high 20% return on equity, with growth pace being a variable factor [57] Question: AAA portfolio size and implications - Management did not disclose the exact size of the AAA portfolio but indicated it would contribute significantly to growth [58][59] Question: Reserve rate outlook amid recession - Management believes the reserve rate may remain elevated during economic strain but expects it to decrease once the economic outlook improves [60][68] Question: Portfolio yield and NIM guidance - The company anticipates a lag in passing on rate increases to consumers, with NIM expected to hover around 19% [75][76] Question: Performance across different cohorts - Management reported strong spending across proprietary and co-brand cards, indicating consumer engagement despite inflationary pressures [73][74] Question: Late fees and regulatory engagement - The company is adapting to regulatory changes and diversifying its portfolio to reduce reliance on any single product [90][91]

Table of Contents 9 UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2022 or | --- | --- | --- | |-----------------------------------------------------------------------------------------------|----------------------------------------------------------------------------------|------------------------------------------------------------ ...

Bread Financial Holdings, Inc. (NYSE:BFH) Q1 2022 Earnings Conference Call April 28, 2022 8:30 AM ET Company Participants Brian Vereb - Head, IR Ralph Andretta - CEO, President & Director Perry Beberman - EVP & CFO Conference Call Participants Sanjay Sakhrani - KBW Jeffrey Adelson - Morgan Stanley, Research Division, Research Associate Robert Napoli - William Blair & Company Bill Carcache - Wolfe Research David Scharf - JMP Securities Michael Young - Truist Securities Reginald Smith - JPMorgan Chase & Co. M ...

\ bread financial. Bread Financial First Quarter 2022 Results April 28, 2022 Ralph Andretta President & CEO Perry Beberman EVP & CFO Forward-Looking Statements This presentation 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," "est ...

Table of Contents 9 UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-K (Mark One) ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2021 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission file number 001-15749 ALLIANCE DATA SYSTEMS CORPORATION (Exact name of registrant as specified in its charter) Delaware 31-142921 ...

Alliance Data Systems Corporation (ADS) Q4 2021 Earnings Conference Call January 27, 2022 8:30 AM ET Company Participants Brian Vereb - Head, IR Ralph Andretta - President & CEO Perry Beberman - EVP & CFO Conference Call Participants Sanjay Sakhrani - KBW Bob Napoli - William Blair Bill Carcache - Wolfe Research Mihir Bhatia - Bank of America Jeff Adelson - Morgan Stanley John Hecht - Of Jefferies LLC Meng Jiao - Deutsche Bank John Pancari - Evercore ISI Bill Ryan - Seaport Global Dominick Gabriele - Oppenh ...

Alliance Data Fourth Quarter & Full Year 2021 Results January 27, 2022 Ralph Andretta President & CEO Perry Beberman EVP & CFO © 2022 ADS Alliance Data Systems, Inc. © 2022 ADS Alliance Data Systems, Inc. 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 ...

Goldman Sachs 2021 US Financial Services Conference Ralph Andretta President & CEO Perry Beberman EVP & CFO Val Greer EVP & Chief Commercial Officer December 7, 2021 © 2021 ADS Alliance Data Systems, Inc. © 2021 ADS Alliance Data Systems, Inc. Forward-Looking Statements This presentation 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 fu ...

Index UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (Mark One) ☑ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended September 30, 2021 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File Number: 001-15749 ALLIANCE DATA SYSTEMS CORPORATION (Exact name of registrant as specified in its charter) Delaware 31-1429215 (S ...