Bread Financial Holdings, Inc. reported its financial results for the third quarter of 2025, revealing a total net interest and non-interest income of $971 million, a decrease of 1% compared to $983 million in the same period last year. The company’s credit sales reached $6.8 billion, reflecting a 5% increase year-over-year, driven by new partner growth and increased general-purpose spending. However, average credit card and other loans decreased by 1% to $17.6 billion, while end-of-period loans fell by 2% to $17.7 billion, attributed to a higher payment rate and elevated gross credit losses compared to historical trends.
The company’s provision for credit losses decreased significantly, from $369 million in Q3 2024 to $299 million in Q3 2025, aided by a $28 million reserve release. The allowance for credit losses as of September 30, 2025, was $2.07 billion, down from $2.24 billion at the end of 2024, reflecting improved credit metrics and a higher quality of new account acquisitions. The reserve rate stood at 11.7%, indicating a positive trend in credit quality, with the percentage of Vantage 660+ cardholders remaining above pre-pandemic levels.
Operationally, Bread Financial has continued to diversify its product offerings, particularly through the growth of co-brand credit card programs, which generally yield higher credit sales per account and lower delinquency rates. The company also reported a 9% increase in direct-to-consumer deposits, totaling $8.2 billion as of September 30, 2025. Additionally, the company has been active in managing its capital structure, announcing a $200 million share repurchase program in August and repurchasing $40 million worth of shares in September, bringing the total repurchased shares for the year to 3.8 million.
Looking ahead, Bread Financial anticipates continued consumer resilience despite inflationary pressures and a slowing labor market. The company expects its average credit card and other loans to remain flat to slightly lower in 2025 compared to 2024. Total net interest and non-interest income, excluding any gains from portfolio sales, is projected to be relatively flat year-over-year, as pricing actions are offset by lower delinquencies and a shift in product mix towards co-brand and proprietary cards. The company remains focused on operational excellence and disciplined expense management to generate positive operating leverage in 2025.
About BREAD FINANCIAL HOLDINGS, INC.
Bread Financial Holdings, Inc. is a U.S.-based financial services company specializing in private label and co-brand credit card programs, direct-to-consumer credit cards, pay-over-time installment loans, and savings products. Serving millions of consumers and partnering with major retailers across diverse industries, it offers tailored credit and payment solutions supported by data analytics, risk management, and digital platforms. Its business model centers on lending revenue, long-term brand partnerships, and integrated financial technology.
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