COLUMBUS, Ohio--(BUSINESS WIRE)--Bread Financial Holdings, Inc. (NYSE: BFH), a tech-forward financial services company that provides simple, flexible payment, lending and saving solutions, today announced its fourth quarter and full year 2023 financial results. All earnings-related materials are now available at the company’s investor relations website, here. Bread Financial President and Chief Executive Officer Ralph Andretta and Chief Financial Officer Perry Beberman will host a conference call at 8:30 a ...

The upcoming report from Bread Financial Holdings (BFH) is expected to reveal quarterly loss of $0.73 per share, indicating an increase of 72.8% compared to the year-ago period. Analysts forecast revenues of $987.07 million, representing a decrease of 4.5% year over year.Over the past 30 days, the consensus EPS estimate for the quarter has been adjusted upward by 12.6% to its current level. This demonstrates the covering analysts' collective reassessment of their initial projections during this period.Prior ...

COLUMBUS, Ohio--(BUSINESS WIRE)--Bread Financial™ (NYSE: BFH), a tech-forward financial services company that provides simple, flexible payment, lending and saving solutions, today announced that Allegra Driscoll has been named executive vice president and chief technology officer. Ms. Driscoll joins Bread Financial from American Express, where she most recently served as SVP, Chief Information Officer of the Global Commercial Services Unit. “We are thrilled to welcome Allegra to our organization and exe ...

Financial Data and Key Metrics Changes - The company reported net income of $171 million for the third quarter, with a return on equity of 25% [38] - Revenue for the quarter was $1.0 billion, up 5% year-over-year, while income from continuing operations increased by 29% to $173 million [65] - The net loss rate for the quarter was 6.9%, compared to 5.0% in the third quarter of 2022 and 8.0% in the second quarter of 2023 [67] Business Line Data and Key Metrics Changes - Credit sales decreased by 13% year-over-year to $6.7 billion, influenced by the sale of the BJs Wholesale Club portfolio and strategic credit tightening [45] - Average loans remained flat year-over-year, driven by new partner additions and a lower consumer payment rate [25] - Total non-interest expenses increased by 3% year-over-year but declined by $28 million or 5% sequentially [26] Market Data and Key Metrics Changes - The economic environment remains challenging, with consumers facing persistent inflation, high interest rates, and the resumption of student loan payments [20] - The delinquency rate for the third quarter was 6.3%, up from the second quarter, driven by macroeconomic pressures [67] - The company anticipates that the fourth quarter net loss rate will be approximately 8%, influenced by seasonal trends and consumer payment pressures [70] Company Strategy and Development Direction - The company aims to grow responsibly, strengthen its balance sheet, optimize data and technology, and strategically invest in its business [21] - The management team is committed to driving responsible growth that delivers long-term shareholder value, focusing on sustainable profitable growth [22] - The company is developing mitigation strategies in anticipation of regulatory changes regarding credit card late fees, which could significantly impact its business [40] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in their disciplined credit risk management and ability to drive sustainable value through the full economic cycle [23] - The company expects consumer macroeconomic pressures to continue, leading to softer consumer spending and lower loan growth in 2024 [72] - Management indicated that losses are expected to peak in 2024, with the net loss rate influenced by ongoing macroeconomic challenges [72] Other Important Information - The company completed a $35 million share repurchase during the quarter, representing 935,000 shares [19] - The tangible book value per share exceeded $42, nearly tripling since the fourth quarter of 2020 [38] - The company has reduced parent-level debt by 55% over the past three years, paying down more than $1.7 billion [43] Q&A Session Summary Question: What are the mitigation efforts regarding the CFPB rules? - Management is testing different APRs and fees to close gaps and is collaborating with partners to address potential impacts [75] Question: How will the reserve rate migrate next year? - The reserve rate is expected to remain steady, influenced by macroeconomic conditions and consumer payment pressures [89] Question: Did the company grow too aggressively post-COVID? - Management believes they have remained disciplined in growth, with proactive risk management across the borrower lifecycle [123] Question: What is the outlook for delinquency rates? - Delinquency rates are expected to remain elevated due to inflation pressures, but management is focused on reducing early-stage delinquency [126] Question: How does the company view its capital structure? - The company aims to support responsible growth while reducing debt and building capital ratios to fortify its balance sheet [83]

Financial Performance - Total interest income for the three months ended September 30, 2023, was $1,301 million, an increase from $1,218 million in the same period of 2022, representing a growth of 6.8%[49] - Net income for the three months ended September 30, 2023, was $171 million, compared to $134 million for the same period in 2022, reflecting a year-over-year increase of 27.6%[51] - Basic income per share from continuing operations for the three months ended September 30, 2023, was $3.47, compared to $2.69 for the same period in 2022, marking a growth of 29%[49] - Total comprehensive income for the three months ended September 30, 2023, was $164 million, compared to $127 million for the same period in 2022, reflecting a year-over-year increase of 29.1%[51] Expenses and Losses - Provision for credit losses for the three months ended September 30, 2023, was $304 million, unchanged from the same period in 2022[49] - Non-interest expenses for the three months ended September 30, 2023, totaled $502 million, up from $486 million in the same period of 2022, indicating an increase of 3.3%[49] - Total non-interest income for the three months ended September 30, 2023, was $(51) million, an improvement from $(106) million in the same period of 2022[49] Interest and Deposits - Interest on deposits for the three months ended September 30, 2023, was $143 million, significantly higher than $66 million in the same period of 2022, indicating a growth of 116.7%[49] - Total net interest and non-interest income after provision for credit losses for the three months ended September 30, 2023, was $727 million, an increase from $675 million in the same period of 2022, representing a growth of 7.7%[49] Regulatory and Market Risks - The company anticipates a final CFPB ruling that could significantly limit credit card late fees, which may impact future financial performance[45] - There has been no material change in exposure to interest rate risk or other market risks since the 2022 Form 10-K[268] Stock Information - As of October 20, 2023, there were 49,330,625 shares of common stock outstanding[54] - The company is classified as a large accelerated filer under the Exchange Act[54]

Financial Performance - Total net interest and non-interest income increased by $59 million (7%) to $952 million for the three months ended June 30, 2023, compared to the same period in 2022[62] - Provision for credit losses decreased by $68 million (17%) to $336 million for the three months ended June 30, 2023, compared to the same period in 2022[62] - Net income increased by $36 million to $48 million for the three months ended June 30, 2023, compared to the same period in 2022[62] - Total interest income increased by 12% year-over-year, with a net interest margin of 18.7% for Q2 2023[79] - Non-interest income increased by $45 million, primarily due to merchant discount fees and interchange revenue[79] - Net principal losses increased by $113 million and $256 million for the three and six months ended June 30, 2023, respectively[90] Expenses and Efficiency - Total non-interest expenses increased by $57 million (12%) to $530 million for the three months ended June 30, 2023, compared to the same period in 2022[62] - Total non-interest expenses increased by 12% year-over-year, driven by higher employee compensation and technology investments[80] - The company expects second half 2023 total non-interest expenses to be lower than the first half, driven by improved operating efficiencies and lower intangible amortization expense[59] Credit and Loans - Credit sales decreased by 13% year-over-year to $7.1 billion, driven by the sale of the BJ's Wholesale Club portfolio and macroeconomic headwinds[79] - Average credit card and other loans increased by 4%, while end-of-period loans increased by 1%, driven by new brand partners and moderation in consumer payment rates[79] - The company expects full-year 2023 average credit card and other loans to grow in the low- to mid-single digits relative to 2022[83] - The 2023 financial outlook assumes a full-year net loss rate in the low-to-mid 7% range, with a reserve rate of 12.3% as of June 30, 2023[84] Capital and Liquidity - The company's TCE/TA ratio was 9.4% as of June 30, 2023, reflecting a strengthened balance sheet and improved capital ratios[56] - Direct-to-consumer (DTC) deposits comprised 33% of the funding mix as of June 30, 2023, with a reduction in debt of over $500 million[82] - The company maintains a significant majority of its liquidity portfolio on deposit within the Federal Reserve banking system[110] Reserves and Credit Quality - The reserve rate increased to 12.3% as of June 30, 2023, compared to 11.5% as of December 31, 2022, due to the sale of the BJ's portfolio and softening economic indicators[55] - The company's Vantage 660+ cardholder percentage remains materially above pre-pandemic levels due to prudent credit tightening actions and a more diversified product mix[55] Tax and Dividends - The company expects full-year normalized effective tax rate to remain in the range of 25% to 26% for 2023[60] - Dividends paid to common stockholders were $11 million and $21 million for the three and six months ended June 30, 2023, respectively[366] - Quarterly cash dividend of $0.21 per share declared on July 27, 2023, payable on September 15, 2023[366] Comprehensive Loss and Fair Value - Accumulated Other Comprehensive Loss increased from $(19) million to $(20) million for the three months ended June 30, 2023[362] - Accumulated Other Comprehensive Loss increased from $(9) million to $(14) million for the three months ended June 30, 2022[362] - Accumulated Other Comprehensive Loss decreased from $(21) million to $(20) million for the six months ended June 30, 2023[362] - Accumulated Other Comprehensive Loss increased from $(2) million to $(14) million for the six months ended June 30, 2022[362] - Money market and other non-maturity deposits carrying values approximate their fair values due to short-term duration and no defined maturity[353] Market and Interest Rate Risk - No material change in exposure to interest rate risk or other market risks compared to 2022 Form 10-K[385] - No transfers into or out of Level 3, and no transfers between Levels 1 and 2 for the three and six months ended June 30, 2023 and 2022[351] Financial Outlook - The company's 2023 financial outlook reflects slowing sales growth due to self-moderated consumer spending and targeted credit tightening[58]

Bread Financial Holdings, Inc. (NYSE:BFH) Q2 2023 Earnings Conference Call July 27, 2023 8:30 AM ET Company Participants Brian Vereb - Head of Investor Relations Ralph Andretta - President & Chief Executive Officer Perry Beberman - Executive Vice President & Chief Financial Officer Conference Call Participants Sanjay Sakhrani - KBW Robert Napoli - William Blair Mihir Bhatia - Bank of America Merrill Lynch Jeff Adelson - Morgan Stanley Bill Carcache - Wolfe Research Dominick Gabriele - Oppenheimer Reggie ...

UNITED STATES (Mark One) x QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2023 or o TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Commission file number 001-15749 _______________________________________ Table of Contents Washington, D.C. 20549 Delaware 31-1429215 (State or other jurisdiction of incorporation or organization) (I.R.S. Employer Identification No.) (614) 729-4000 (Registr ...

Financial Data and Key Metrics Changes - Bread Financial's credit sales increased by 7% year-over-year to $7.4 billion, despite a decline in consumer sentiment and discretionary spending due to inflation [13][21] - Revenue for the quarter was $1.3 billion, up 40% compared to Q1 2022, driven by a $230 million gain from the sale of the BJs portfolio [22] - Total net interest income rose by 13% from Q1 2022, while noninterest income was $172 million, including the gain on sale [23] - The company reported a net loss rate of 7% for the quarter, with an increase in the reserve rate to 12.3% due to seasonality and the BJs portfolio sale [30][32] Business Line Data and Key Metrics Changes - Co-branded and proprietary spend now accounts for approximately 50% of total credit sales, with average loans increasing by 17% year-over-year [21] - The company experienced net positive inflows of deposit balances on its savings platform, growing by 3% from year-end [18] - The delinquency rate for Q1 was 5.7%, slightly up from the previous quarter, influenced by inflationary pressures [30] Market Data and Key Metrics Changes - The company noted a shift from discretionary to non-discretionary spending among consumers, impacting overall sales trends [13][74] - Direct-to-consumer average deposits grew by 70% year-over-year to $5.6 billion, representing 28% of the total funding mix [28] Company Strategy and Development Direction - The company is focused on sustainable, profitable growth, enhancing its capital position, and optimizing data and technology [14][36] - Bread Financial aims to continue diversifying its product offerings and partner base, with a strong business development pipeline [15][55] - The company plans to invest up to $30 million from the gain on sale to accelerate technology and digital transformation [40] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to navigate economic challenges, citing improved credit risk management and a diversified portfolio [17][35] - The outlook for 2023 remains unchanged, with expectations for mid-single-digit loan growth and consistent revenue growth [39] - Management anticipates that inflation will remain elevated but moderating, with a gradual increase in unemployment [43] Other Important Information - The company has significantly improved its capital ratios, nearly tripling its TCE to TA ratio since Q1 2020, and reducing parent-level debt by nearly 40% [11][36] - Bread Financial was recognized in Newsweek's list of America's most trustworthy companies for 2023, reflecting its commitment to integrity and governance [12] Q&A Session Summary Question: Perspectives on the economy and discretionary spending - Management acknowledged persistent inflation and its impact on consumer behavior, noting a shift towards non-discretionary spending due to diversified product offerings [48] Question: Business development and partner pipeline - The company reported a strong pipeline for new partnerships, with expectations for continued success in securing new contracts [55] Question: Update on loyalty ventures situation - Management confirmed their significant stake in loyalty ventures and expressed alignment with its interests, despite external economic challenges [63] Question: Flexibility to dividend excess capital - The company indicated that its high capital ratios at the bank level would allow for dividends to be paid up to the parent company to support debt restructuring [64] Question: Delinquency performance and outlook - Management discussed the elevated delinquency rates and the expected impact of transition-related items on future loss rates, expressing confidence in improved performance in the latter half of the year [68] Question: Trends in purchase volume and consumer behavior - Management noted a slight decline in consumer traffic but emphasized that those who visit retail partners are more intent on purchasing rather than browsing [74] Question: Share repurchase strategy - Management stated that the focus remains on strengthening the balance sheet and investing in growth rather than immediate share repurchases [99] Question: Performance of Bread Pay - Management clarified that Bread Pay is one of several products and continues to be invested in, despite not being the primary focus [101]

V bread financial. Bread Financial 1Q23 Investor Deck February 13, 2023 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 ...