Bread Financial Holdings, Inc. (NYSE: BFH) has released its performance update for May 2025, revealing key changes in its financial metrics compared to the same period in 2024.
The end-of-period credit card and other loans decreased slightly from $17,847 million in May 2024 to $17,702 million in May 2025, representing a 1% year-over-year change. The average credit card and other loans also saw a marginal decrease from $17,846 million in May 2024 to $17,714 million in May 2025, reflecting a 1% drop.
In terms of net principal losses, the company reported a decline from $133 million in May 2024 to $120 million in May 2025, leading to an improvement in the net loss rate from 8.8% to 8.0% over the same period.
Furthermore, the delinquency rate showed a positive trend, decreasing from 5.9% in May 2024 to 5.7% in May 2025, despite the period-end credit card and other loans also experiencing a slight decrease from $16,446 million to $16,200 million year-over-year.
It's worth noting that the company froze delinquency progression for cardholders in federal emergency management agency-identified impact zones for one billing cycle due to hurricanes Helene and Milton, which resulted in lower net principal losses and net loss rate in the fourth quarter of 2024. However, this action is expected to have a negative impact on net principal losses and net loss rate in the second quarter of 2025.
These metrics provide valuable insights into Bread Financial's performance and its ability to manage credit risks and delinquencies. Following these announcements, the company's shares moved 2.07%, and are now trading at a price of $52.27. For more information, read the company's full 8-K submission here.
