Bread Financial – October 2024 Performance Update

By Tamara Parker • Thursday, November 14 10:27 • Permanent Link

Bread Financial Holdings, Inc. (NYSE: BFH) has released its performance update for October 2024, showcasing key metrics in comparison to the same period in 2023.

The end-of-period credit card and other loans for October 2024 stood at $17,915 million, showing a decrease from $18,386 million in October 2023. The average credit card and other loans for October 2024 were $17,867 million, also down from $17,935 million in October 2023, reflecting a 6% year-over-year change.

Net principal losses were reported at $120 million for October 2024, slightly up from $119 million in October 2023. The net loss rate for October 2024 improved slightly to 7.9%, compared to 8.0% in October 2023.

In terms of delinquencies, the 30 days+ delinquencies in principal for October 2024 were recorded at $1,056 million, down from $1,103 million in October 2023. The delinquency rate also improved to 6.4% for October 2024, compared to 6.5% in October 2023.

Notably, the company made a revision in the calculation of average credit card and other loans beginning in January 2024, aligning it more closely with industry practice by incorporating an average daily balance. Consequently, the year-over-year change in average credit card and other loans and net loss rate differ for the periods presented.

The press release also mentioned that due to the impact of hurricanes Helene and Milton, there was a freeze in delinquency progression for cardholders in federal emergency management agency identified impact zones. This is expected to result in slightly lower net principal losses and net loss rate in the fourth quarter of 2024, offsetting higher net principal losses and net loss rate in the second quarter of 2025.

Bread Financial, headquartered in Columbus, Ohio, emphasizes its commitment to sustainable business practices and offers a comprehensive suite of payment solutions, including private label and co-brand credit cards and buy now, pay later products.

Today the company's shares have moved 1.5% to a price of $57.12. Check out the company's full 8-K submission here.

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