Bread Financial (BFH) Reports Q4 Earnings: What Key Metrics Have to Say

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]