Bread Financial Reports Rise in Net Loss Rate

Bread Financial Holdings, Inc. has released its performance update for February 2024, revealing key metrics for the month ended February 29, 2024, compared to the same period in 2023. aheadquartered in Columbus, Ohio, the tech-forward financial services company offers payment, lending, and saving solutions. The company continues to focus on providing digitally enabled choices and exceptional customer experiences.

The company reported that its end-of-period credit card and other loans stood at $18,391 million for February 2024, showing an increase from $18,113 million in February 2023. However, the average credit card and other loans saw a significant year-over-year change, decreasing by 6% to $18,541 million from $19,809 million in the previous year.

In terms of net principal losses, Bread Financial reported an increase to $131 million in February 2024 from $128 million in February 2023. This resulted in a rise in the net loss rate from 7.8% in February 2023 to 8.9% in February 2024.

The company also disclosed that 30 days + delinquencies * principal increased to $1,130 million in February 2024 compared to $1,012 million in the same period in 2023. The delinquency rate also rose to 6.7% in February 2024 from 6.0% in February 2023.

It's important to note that the calculation of average credit card and other loans was revised in January 2024, and this impacted the year-over-year change in average credit card and other loans as well as the net loss rate for the periods presented.

Following these announcements, the company's shares moved 3.9%, and are now trading at a price of $38.12. Check out the company's full 8-K submission here.

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