Bread Financial Holdings, Inc. (NYSE: BFH) has released its performance update for August 2024. The company's end-of-period credit card and other loans stood at $17.936 billion, showing a marginal decrease from the previous year's figure of $17.949 billion. However, the average credit card and other loans saw a 1% year-over-year increase, reaching $17.760 billion compared to $17.544 billion in the same period in 2023.
In terms of net principal losses, the company experienced a rise to $118 million from $99 million in August 2023. This resulted in a net loss rate of 7.8%, up from 6.7% in the same period last year.
Looking at delinquencies, there was a slight increase in 30 days+ delinquencies * principal, which rose to $1.029 billion from $987 million in August 2023. However, the period ended credit card and other loans * principal decreased to $16.493 billion from $16.638 billion in the same period last year. Consequently, the delinquency rate increased to 6.2% from 5.9% in August 2023.
It's important to note that the company revised the calculation of average credit card and other loans in January 2024, resulting in a change in the calculation of year-over-year change in average credit card and other loans and net loss rate for the periods presented.
These figures provide a detailed insight into Bread Financial's performance and indicate areas where the company has experienced changes in its metrics compared to the same period in the previous year. Today the company's shares have moved 1.5% to a price of $48.1. Check out the company's full 8-K submission here.
