Bread Financial Holdings, Inc. (NYSE: BFH) has released its performance update for December 2024. The company reported a net loss rate of 8.1% for the month ended December 31, 2024, which was a slight decrease from the net loss rate of 8.0% for the three months ended December 31, 2024.
The end-of-period credit card and other loans remained consistent at $18,896 million for both the month and the three months ended December 31, 2024. However, the average credit card and other loans increased from $18,156 million to $18,647 million, representing a 3% year-over-year change.
In terms of delinquency rates, there was a positive change as well. The 30 days+ delinquencies principal balance decreased from $1,163 million as of December 31, 2023, to $1,034 million as of December 31, 2024. The delinquency rate also improved, dropping from 6.5% to 5.9% over the same period.
It's important to note that the company revised the calculation of average credit card and other loans in January 2024 to align more closely with industry practice, which affected the year-over-year change in average credit card and other loans and net loss rate for the periods presented.
Furthermore, due to the impact of hurricanes Helene and Milton, delinquency progression for cardholders in FEMA-identified impact zones was frozen for one billing cycle, resulting in lower net principal losses and net loss rate in the fourth quarter of 2024. However, these actions are expected to have a negative impact on net principal losses and net loss rate in the second quarter of 2025.
Bread Financial Holdings, Inc. is a tech-forward financial services company that provides simple, personalized payment, lending, and saving solutions to millions of U.S. consumers. Their payment solutions, including Bread Financial general purpose credit cards and savings products, aim to empower customers and their pursuit of a better life. Additionally, the company delivers growth for well-known brands in travel & entertainment, health & beauty, jewelry, and specialty apparel through private label and co-brand credit cards and pay-over-time products, offering choice and value to shared customers. As a result of these announcements, the company's shares have moved -1.2% on the market, and are now trading at a price of $62.9. For more information, read the company's full 8-K submission here.
