Bread Financial Provides Performance Update for June 2025

Rhea-AI Summary

Bread Financial (NYSE: BFH) has released its performance update for June 2025, revealing mixed financial metrics. The company reported end-of-period credit card and other loans of $17.656 billion, with a 1% year-over-year decline in average credit card loans.

The company's net loss rate stood at 7.8% for June 2025 and 7.9% for Q2 2025. Delinquency rates showed improvement, decreasing to 5.7% from 6.0% year-over-year. The Q2 2025 results were notably impacted by the previous freezing of delinquency progression for cardholders affected by hurricanes Helene and Milton in Q4 2024.

Positive

• None.

Negative

• 1% year-over-year decline in average credit card loans
• High net loss rate of 7.8% for June 2025
• Q2 2025 negatively impacted by previous hurricane-related delinquency freezes

Insights

Financial Analyst

Bread Financial shows improved delinquency rates (5.7% vs 6.0% YoY) despite slight portfolio contraction amid challenging credit environment.

Bread Financial's June 2025 performance update reveals mixed credit quality signals that merit investor attention. The company's $17.7 billion credit card portfolio has contracted by 1% year-over-year, indicating prudent risk management rather than growth pursuit in the current economic climate.

The most encouraging metric is the delinquency rate improvement to 5.7% from 6.0% year-over-year, suggesting better underlying credit quality among their customer base. This 0.3% reduction in delinquencies is particularly meaningful for a consumer lender like Bread Financial, as early-stage delinquencies are leading indicators of future charge-offs.

The net loss rate stands at 7.8% for June and 7.9% for the quarter. While these figures represent substantial charge-offs, they come with an important caveat: the company notes that hurricanes Helene and Milton created timing distortions, as they temporarily froze delinquency progression in FEMA disaster zones. This artificially lowered Q4 2024 losses while elevating Q2 2025 figures.

For proper context, this net loss rate should be viewed alongside industry benchmarks and the company's specific market positioning serving non-prime consumers, who typically carry higher delinquency and charge-off rates but generate compensating yields. Without year-over-year net loss rate comparisons in this release, it's difficult to assess trend direction in this crucial metric.

The $922 million in delinquent balances against a $16.1 billion principal loan portfolio warrants monitoring but appears adequately managed given the improving delinquency trajectory. The stable portfolio size suggests Bread Financial is prioritizing quality over volume growth in their underwriting approach.

COLUMBUS, Ohio, July 24, 2025 (GLOBE NEWSWIRE) -- Bread Financial Holdings, Inc. (NYSE: BFH), a tech-forward financial services company that provides simple, personalized payment, lending, and saving solutions to millions of U.S. consumers, provided a performance update. The following tables present the Company’s net loss rate and delinquency rate for the periods indicated:

	For the month ended June 30, 2025				For the three months ended June 30, 2025
	(dollars in millions)
End-of-period credit card and other loans	$	17,656			$	17,656
Average credit card and other loans	$	17,631			$	17,686
Year-over-year change in average credit card and other loans		(1	%)			(1	%)
Net principal losses(1)	$	113			$	348
Net loss rate(1)		7.8	%			7.9	%

	As of June 30, 2025				As of June 30, 2024
	(dollars in millions)
30 days + delinquencies – principal	$	922			$	979
Period ended credit card and other loans – principal	$	16,102			$	16,344
Delinquency rate		5.7	%			6.0	%

(1)

As a result of hurricanes Helene and Milton we froze delinquency progression for cardholders in Federal Emergency Management Agency identified impact zones for one billing cycle, which resulted in modestly lower Net principal losses and Net loss rate in the fourth quarter of 2024, and consequently these actions negatively impacted Net principal losses and Net loss rate in the second quarter of 2025.

About Bread Financial^®  

Bread Financial^® (NYSE: BFH) is a tech-forward financial services company that provides simple, personalized payment, lending, and saving solutions to millions of U.S consumers. Our payment solutions, including Bread Financial general purpose credit cards and savings products, empower our customers and their passions for a better life. Additionally, we deliver growth for some of the most recognized brands in travel & entertainment, health & beauty, jewelry and specialty apparel through our private label and co-brand credit cards and pay-over-time products providing choice and value to our shared customers.  

To learn more about Bread Financial, our global associates and our sustainability commitments, visit breadfinancial.com or follow us on Instagram and LinkedIn.  

Forward-Looking Statements

This release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Forward-looking statements give our expectations or forecasts of future events and can generally be identified by the use of words such as “believe,” “expect,” “anticipate,” “estimate,” “intend,” “project,” “plan,” “likely,” “may,” “should” or other words or phrases of similar import. Similarly, statements that describe our business strategy, outlook, objectives, plans, intentions or goals also are forward-looking statements. Examples of forward-looking statements include, but are not limited to, statements we make regarding, and the guidance we give with respect to, our anticipated operating or financial results, future financial performance and outlook, future dividend declarations, and future economic conditions.

We believe that our expectations are based on reasonable assumptions. Forward-looking statements, however, are subject to a number of risks and uncertainties that are difficult to predict and, in many cases, beyond our control. Accordingly, our actual results could differ materially from the projections, anticipated results or other expectations expressed in this release, and no assurances can be given that our expectations will prove to have been correct. Factors that could cause the outcomes to differ materially include, but are not limited to, the following: macroeconomic conditions, including market conditions, inflation, interest rates, labor market conditions, recessionary pressures or concerns over a prolonged economic slowdown, and the related impact on consumer spending behavior, payments, debt levels, savings rates and other behaviors; global political and public health events and conditions, including significant shifts in trade policy, such as changes to, or the imposition of, tariffs and/or trade barriers and any economic impacts, volatility, uncertainty and geopolitical instability resulting therefrom, as well as ongoing wars and military conflicts and natural disasters; future credit performance, including the level of future delinquency and write-off rates; the loss of, or reduction in demand from, significant brand partners or customers in the highly competitive markets in which we compete; the concentration of our business in U.S. consumer credit; inaccuracies in the models and estimates on which we rely, including the amount of our Allowance for credit losses and our credit risk management models; the inability to realize the intended benefits of acquisitions, dispositions and other strategic initiatives; our level of indebtedness and ability to access financial or capital markets; pending and future federal and state legislation, regulation, supervisory guidance, and regulatory and legal actions, including, but not limited to, those related to financial regulatory reform and consumer financial services practices, as well as any such actions with respect to late fees, interchange fees or other charges; impacts arising from or relating to the transition of our credit card processing services to third party service providers that we completed in 2022; failures or breaches in our operational or security systems, including as a result of cyberattacks, unanticipated impacts from technology modernization projects or otherwise; and any tax or other liability or adverse impacts arising out of or related to the spinoff of our former LoyaltyOne segment or the bankruptcy filings of Loyalty Ventures Inc. (LVI) and certain of its subsidiaries and subsequent litigation or other disputes. The foregoing factors, along with other risks and uncertainties that could cause actual results to differ materially from those expressed or implied in forward-looking statements, are described in greater detail under the headings “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” in our Annual Report on Form 10-K for the most recently ended fiscal year, which may be updated in Item 1A of, or elsewhere in, our Quarterly Reports on Form 10-Q filed for periods subsequent to such Form 10-K. Our forward-looking statements speak only as of the date made, and we undertake no obligation, other than as required by applicable law, to update or revise any forward-looking statements, whether as a result of new information, subsequent events, anticipated or unanticipated circumstances or otherwise.

Contacts 
Brian Vereb – Investor Relations 
Brian.Vereb@BreadFinancial.com  

Susan Haugen – Investor Relations 
Susan.Haugen@BreadFinancial.com  

Rachel Stultz – Media 
Rachel.Stultz@BreadFinancial.com  

FAQ

What is Bread Financial's (BFH) net loss rate for June 2025?

Bread Financial reported a net loss rate of 7.8% for June 2025 and 7.9% for the three months ended June 30, 2025.

How did Bread Financial's loan portfolio perform in June 2025?

The company's end-of-period credit card and other loans totaled $17.656 billion, with average credit card loans showing a 1% decrease year-over-year.

What is BFH's current delinquency rate and how has it changed?

The delinquency rate as of June 30, 2025, was 5.7%, showing improvement from 6.0% in the previous year.

How did hurricanes Helene and Milton affect Bread Financial's performance?

The hurricanes led to a freeze in delinquency progression for affected cardholders in Q4 2024, resulting in lower losses then but negatively impacting Net principal losses and Net loss rate in Q2 2025.

What is the total value of Bread Financial's 30-day delinquencies?

As of June 30, 2025, Bread Financial reported 30+ days delinquencies of $922 million, down from $979 million in the previous year.