**Bread Financial Holdings Reports Fiscal Year 2025 Results**

Bread Financial Holdings, Inc. (BFH), a tech-forward financial services company, reported its financial results for the fiscal year ended December 31, 2025. The company's total net interest and non-interest income remained relatively stable at $3.845 billion, compared to $3.838 billion in the previous year. However, this figure is lower than the $4.289 billion reported in 2023. Net income available to common stockholders was $518 million, or $10.89 per diluted share, a significant increase from $277 million, or $5.49 per diluted share, in 2024. This is still lower than the $718 million, or $14.34 per diluted share, reported in 2023.

A key factor influencing the company's performance was the provision for credit losses, which decreased to $1.242 billion in 2025 from $1.397 billion in 2024. Total non-interest expenses also saw a decrease, falling to $1.988 billion from $2.060 billion in the prior year. The company's net interest margin increased slightly to 18.4% in 2025 from 18.3% in 2024, but is lower than the 19.5% reported in 2023. The return on average tangible common equity was 20.4%, up from 11.4% in 2024, but lower than the 38.0% reported in 2023.

Operationally, Bread Financial reported a 3% increase in credit sales, reaching $27.777 billion compared to $26.962 billion in 2024. Average credit card and other loans decreased slightly by 1% to $17.850 billion. End-of-period direct-to-consumer (retail) deposits increased by 11% to $8.523 billion. The company's delinquency rate decreased slightly to 5.8% from 5.9% in the previous year, while the net principal loss rate decreased to 7.7% from 8.2%. The company's common equity tier 1 capital ratio increased to 13.0% from 12.4% in the previous year.

Strategic initiatives during the year included the issuance of $500 million in senior notes due 2031 and $400 million in subordinated notes due 2035. The company also completed tender offers and repurchased outstanding senior and subordinated notes, as well as repurchasing 5.7 million shares of common stock for $310 million. The company also filed applications with regulatory agencies for permission to merge Comenity Bank with and into Comenity Capital Bank, with CCB being the surviving entity. Looking ahead, Bread Financial anticipates low-single-digit growth in average credit card and other loans and total net interest and non-interest income for 2026. The company also expects a net principal loss rate ranging from 7.2% to 7.4% and a full-year normalized effective tax rate in the range of 25% to 27%.

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.

This description was generated via AI from an annual report. Updated 8 months ago.

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