Financial Performance - The company reported a significant increase in revenue, achieving $1.5 billion for the fiscal year, representing a 15% year-over-year growth[7]. - The company anticipates a revenue growth of 10% to 12% for the next fiscal year, projecting revenues between $1.65 billion and $1.68 billion[7]. - The company reported a decrease in credit loss allowance by 5%, reflecting improved customer credit performance[7]. User Engagement and Growth - User data showed a 20% increase in active accounts, reaching 5 million users by the end of the fiscal year[7]. - New product launches contributed to a 25% increase in transaction volume, with the introduction of Bread Cashback and Bread Rewards driving user engagement[7]. Market Expansion and Partnerships - The company is expanding its market presence, targeting a 30% increase in partnerships with retailers over the next year[7]. - The company is exploring strategic acquisitions to enhance its service offerings, with a focus on fintech startups[7]. Regulatory Impact - Regulatory changes are expected to impact the business, particularly the new CFPB rule limiting credit card late fees, which could reduce revenue by approximately 8% in the short term[7]. - The Consumer Financial Protection Bureau (CFPB) issued a final rule in 2024 that may significantly limit credit card late fees, potentially impacting the company's business and operations in the short and long term[15]. - The company cannot assure the effective date of the CFPB rule or the outcome of any legal challenges related to it, which adds uncertainty to future operations[15]. - The company has taken mitigating actions in anticipation of the CFPB rule, but the effectiveness of these actions remains uncertain[15]. Investment in Technology and Security - The company has allocated $50 million for research and development of new technologies aimed at enhancing user experience and security[7]. - The company is committed to improving cybersecurity measures, investing an additional $10 million to strengthen its systems against potential threats[7].

COLUMBUS, Ohio, Feb. 11, 2025 (GLOBE NEWSWIRE) -- Bread Financial® Holdings, Inc. (NYSE:BFH), a tech-forward financial services company that provides simple, personalized payment, lending, and saving solutions to millions of U.S. consumers, provided a performance update. The following tables present the Company's net loss rate and delinquency rate for the periods indicated:  For themonth endedJanuary 31, 2025 For themonth endedJanuary 31, 2024 (dollars in millions)End-of-period credit card and other loans$1 ...

NEW YORK, Feb. 05, 2025 (GLOBE NEWSWIRE) -- With the addition of Bread Pay® pay-over-time options to its network of lenders, ChargeAfter enables merchants to provide qualified customers with instant access to its installment programs. ChargeAfter, the embedded lending platform for point-of-sale financing, announced today it has added Bread Pay pay-over-time financing to its network of lenders. Bread Pay is offered through Bread Financial® (NYSE:BFH), a tech-forward financial services company that provides ...

COLUMBUS, Ohio, Feb. 04, 2025 (GLOBE NEWSWIRE) -- Bread Financial® Holdings, Inc. (NYSE: BFH), a tech-forward financial services company that provides simple, personalized payment, lending and saving solutions to millions of U.S consumers, today announced the company’s participation in the BofA Securities 2025 Financial Services Conference on Tuesday, Feb. 11. Bread Financial Chief Financial Officer Perry Beberman will participate in a fireside chat. The fireside chat will take place at 3:30 p.m. ET and wil ...

Bread Financial Holdings’ (BFH) operating income of 41 cents per share for the fourth quarter of 2024 beat the Zacks Consensus Estimate of 33 cents. Shares gained 0.1% in the last trading session to reflect the overperformance. See the Zacks Earnings Calendar to stay ahead of market-making news.The bottom line plunged 54% year over year. The quarterly results reflected a dip in revenues but higher credit sales.Behind the Headlines of BFHRevenues decreased 9.2% year over year to $926 million, primarily due t ...

Core Insights - Bread Financial Holdings (BFH) reported a revenue of $926 million for Q4 2024, marking a 9% decline year-over-year and a surprise of -3.33% compared to the Zacks Consensus Estimate of $957.94 million [1] - The earnings per share (EPS) for the same quarter was $0.41, down from $0.90 a year ago, but exceeded the consensus estimate of $0.33 by +24.24% [1] Financial Performance Metrics - Efficiency Ratio was reported at 57.8%, higher than the estimated 54.4% by three analysts [4] - Net principal losses as a percentage of average credit card and other loans (Net loss rate) stood at 8%, slightly better than the average estimate of 8.2% [4] - Net Interest Margin was 17.8%, below the estimated 18.5% by three analysts [4] - Total Risk-based Capital Ratio was 13.8%, compared to the average estimate of 14.7% based on two analysts [4] - Total interest income reached $1.22 billion, slightly below the average estimate of $1.26 billion from five analysts [4] - Interest on cash and investment securities was $44 million, lower than the average estimate of $50.29 million [4] - Interchange revenue, net of retailer shares arrangements, was reported at -$110 million, worse than the estimated -$100.28 million [4] - Interest and fees on loans totaled $1.18 billion, compared to the average estimate of $1.21 billion [4] - Net interest income was $988 million, below the average estimate of $1.02 billion [4] - Total non-interest income was -$62 million, slightly better than the average estimate of -$64.48 million [4] - Other Non-Interest Income was reported at $46 million, exceeding the average estimate of $34.98 million [4] Stock Performance - Shares of Bread Financial have returned +4.2% over the past month, outperforming the Zacks S&P 500 composite's +1.2% change [3] - The stock currently holds a Zacks Rank 2 (Buy), indicating potential for outperformance in the near term [3]

Fourth quarter and full year 2024 results January 30, 2025 © 2 0 2 2 B r e a d F i n a n c i a l | C o n f i d e n t i a l & P r o p r i e t a r y 1 2024 achievements Delivered responsible growth Adapted to macroeconomic and regulatory environments Strengthened our balance sheet Drove operational excellence and technology advancement Achieved full year 2024 financial targets | | Full year | Full year | | --- | --- | --- | | | 2024 outlook | 2024 actuals | | Average loans | Down low single digits | -1% | | R ...

Bread Financial Holdings (BFH) came out with quarterly earnings of $0.41 per share, beating the Zacks Consensus Estimate of $0.33 per share. This compares to earnings of $0.90 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 24.24%. A quarter ago, it was expected that this manager of loyalty and rewards programs for retailers and others would post earnings of $1.88 per share when it actually produced earnings of $1.84, deliveri ...

COLUMBUS, Ohio, Jan. 30, 2025 (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 December 31, 2024 For the three months endedDecember 31, 2024 (dollars in millions)End-of-period credit card and other loans$18,896 $18,896 A ...

Financial Performance - Full year 2024 revenue was $3.8 billion, a decrease of $451 million or 11% compared to the previous year[13] - Adjusted net income for 2024 was $279 million, down from $737 million in 2023, representing a decline of 62%[22] - Total non-interest expenses for 2024 were $2.06 billion, a decrease of 2% compared to $2.09 billion in 2023[22] - The company repurchased $44 million in principal amount of convertible notes, impacting adjusted income from continuing operations[10] - The efficiency ratio rose to 57.8% in 4Q24 from 50.8% in 4Q23, reflecting increased operational costs[38] - Return on average equity decreased to 0.9% in 4Q24 from 6.2% in 4Q23, highlighting challenges in profitability[38] - Adjusted net income for 4Q23 was $45 million, a decrease from $173 million in 3Q23[41] - In Q4 2023, the company reported a loss before income taxes of $19 million, a significant improvement from a loss of $207 million in Q4 2022[61] Credit Metrics - Average loans for 2024 were $18.1 billion, a decrease of 1% year-over-year, driven by moderated consumer spending[16] - Credit sales for 2024 totaled $27.0 billion, reflecting a decrease of 7% due to moderated consumer spending and a shift in product mix[16] - The net loss rate increased to 8.2% in 2024 from 7.5% in 2023, while the delinquency rate decreased to 5.9% from 6.5%[16] - The net loss rate for 2024 is projected to be between 8.0% and 8.2%, remaining elevated due to ongoing inflation and ability to pay concerns[28] - The delinquency rate improved to 5.9% in 4Q24 from 6.5% in 4Q23, indicating a positive trend in credit performance[38] - Credit sales decreased by 23% year-over-year in 4Q23, totaling $7,802 million[39] - The net loss rate increased to 8.0% in 4Q23, compared to 6.3% in 4Q22[41] - Provision for credit losses in Q4 2023 was $482 million, compared to $692 million in Q4 2022, indicating a reduction in expected credit losses[61] Capital and Equity - The CET1 capital ratio improved by 20 basis points year-over-year to 12.4%[5] - Direct-to-consumer deposits increased by 19% year-over-year to $7.7 billion[10] - The common equity tier 1 capital ratio improved to 12.4% in 4Q24 from 12.2% in 4Q23, indicating a stronger capital position[38] - The common equity tier 1 capital ratio was 12.2% in 4Q23, down from 12.9% in 3Q23[45] - Total risk-based capital ratio stood at 13.6% in 4Q23, compared to 14.2% in 3Q23[45] - Average tangible common equity increased to $2,100 million in Q4 2023, up from $2,020 million in Q3 2023[61] - Total stockholders' equity reached $2,918 million in Q4 2023, compared to $2,864 million in Q3 2023[61] - Tangible common equity (TCE) for Q4 2023 was $2,156 million, an increase from $2,093 million in Q3 2023[61] Operational Efficiency - Total non-interest expenses increased by 4% compared to 4Q23, driven by higher employee compensation and technology-related transformation costs[34] - The efficiency ratio improved to 50.8% in 4Q23 from 53.1% in 4Q22[39] - The efficiency ratio, representing total non-interest expenses divided by total net interest and non-interest income, is a key measure of operational efficiency[52] Strategic Focus - The company is focusing on responsible growth and disciplined capital allocation to manage macroeconomic and regulatory challenges[29] - The company plans to continue focusing on improving its credit loss provisions and enhancing its equity base in the upcoming quarters[61] - The company expects to deliver positive operating leverage for the full year 2025, excluding the $107 million pre-tax impact from repurchased convertible notes[28] Market Outlook - The ratings outlook was upgraded from stable to positive by Moody's and Fitch, reflecting improved financial metrics[5] - Forward-looking statements indicate potential risks including macroeconomic conditions and regulatory changes that could impact future performance[55] - End-of-period credit card and other loans decreased by 2% to $18,896 million in 4Q24 compared to $19,333 million in 4Q23[38] - Total assets as of Q4 2023 were $23,141 million, up from $21,608 million in Q3 2023[61] - Tangible assets (TA) in Q4 2023 amounted to $22,379 million, compared to $20,837 million in Q3 2023[61]