Bread Financial Holdings, Inc. · NYSE:BFH
Bread Financial — Q3 2025 Earnings Presentation
24 slides from Bread Financial's earnings presentation, Oct 23, 2025
Slide 1: Third quarter 2025 results
Third quarter 2025 results October 23, 2025 © 2 0 2 2 B r e a d F i n a n c i a l |
Slide 2: Key highlights
Third quarter 2025 Demonstrated financial resilience and strategic capital allocation • Enhanced financial resilience through ongoing operational excellence initiatives, responsible growth, proactive credit risk Key management, and prudent capital allocation. • Net income of $188 million and earning
Slide 3: Third quarter 2025 financial highlights
Third quarter 2025 financial highlights Continuing operations(1) Year-over-year comparisons • Credit sales were $6.8 billion for the third quarter of 2025, an increase of $0.3 billion, or 5%, driven by new Revenue partner growth and increased general-purpose spending. • Average and end-of-period loa
Slide 4: Summary P&L results
Summary P&L results Continuing operations ($ in millions, except per share amounts) 3Q25 3Q24 $ change % change YTD '25 YTD '24 $ change % change Adjusted PPNR⁽¹⁾ Total interest income $ 1,242 $ 1,277 $ (35) (3) $ 3,666 $ 3,806 $ (140) (4) ($ in millions) Total interest expense 210 240 (30) (12) 655
Slide 5: Net interest margin
Net interest margin Interest-earning asset yields and mix Interest-bearing liability costs and funding mix Loan yield Avg. earning asset yield Net interest margin Cost of total interest-bearing liabilities Cost of deposits 28.6% 27.7% 27.4% 27.0% 27.0% 26.4% 26.5% 26.0% 25.7% 24.8% 5.4% 5.4% 5.4% 5.
Slide 6: Funding, capital, and liquidity
Funding, capital, and liquidity Average funding sources CET1 capital ratio walk ($ in billions) 3Q24 $12.8 (73% of total funding) $3.5 $1.3 $17.6 CET1 3Q24 13.3 % 3Q25 $13.4 (77% of total funding) $2.9 $1.1 $17.4 Net earnings 2.6 % Risk-weighted asset changes 0.2 % Deposits Secured borrowings Unsecu
Slide 7: Credit quality and allowance
Credit quality and allowance Delinquency rates Net loss rates 6.5% 5-year peak rate: 6.5% 6.3% 6.2% 5-year peak rate: 8.6% 5.7% 7.4% 6.4% 8.5% 8.6% 6.9% 8.2% 6.0% 5.9% 5.9% 6.0% 8.0% 8.0% 7.9% 7.8% 5-year avg rate: ~5.3% 5-year avg rate: ~6.6% 5-year low rate: 3.3% (2Q21) 5-year low rate: 3.9% (in 3
Slide 8: 2025 financial outlook
2025 financial outlook As of 10/23/2025 Full year 2024 actuals Full year 2025 outlook Commentary Based on our current economic outlook, an increased payment rate, elevated gross credit losses, and Average loans Flat to slightly down visibility into our pipeline and existing partners, we expect 2025
Slide 9: Appendix
Appendix © 2 0 2 2 ©2025 Bread Financial 9 B r e a d F i n a n c i a l |
Slide 10: Building on our position of strength
Building on our position of strength 2025 focus areas Responsible Manage to the Disciplined Operational growth macroeconomic capital allocation excellence Scale diversified product and regulatory and risk Accelerate continuous suite enabling growth and environment management improvement initiatives
Slide 11: Total non-interest expenses
Total non-interest expenses Adjusted total non-interest expenses Continuing operations excl. impacts from repurchased debt(1) ($ in millions) 3Q25 vs. 3Q24 change in non-interest expenses ($ in millions) $1,420 $1,414 Employee comp. and benefits: $(6) -3% Card and processing: 5% $4 -1% Info. process
Slide 12: Diversified product and partner mix
Diversified product and partner mix Product diversification Partner diversification End-of-period loans Credit sales End-of-period loans Credit sales 2% 2% 5% 3% 4% 4% 4% 4% 40% 55% 4% 4% 4% 4% 2% 5% 6% 13% 34% 18% 54% 39% 23% 19% 24% 24% 3Q25 3Q25 3Q25 3Q25 Private label Co-brand Proprietary Bread
Slide 13: Summary financial highlights
Summary financial highlights Continuing operations 3Q25 vs 3Q25 vs YTD '25 vs 3Q25 3Q24 2Q25 YTD '25 YTD '24 ($ in millions) 3Q24 2Q25 YTD '24 Credit sales $ 6,787 $ 6,464 5% $ 6,814 —% $ 19,707 $ 19,064 3% Average credit card and other loans $ 17,596 $ 17,766 (1)% $ 17,686 (1)% $ 17,813 $ 18,060 (1
Slide 14: Summary financial highlights – trending
Summary financial highlights – trending Continuing operations ($ in millions) 3Q23 4Q23 1Q24 2Q24 3Q24 4Q24 1Q25 2Q25 3Q25 YTD '24 YTD '25 Credit sales $ 6,668 $ 7,802 $ 6,030 $ 6,570 $ 6,464 $ 7,898 $ 6,106 $ 6,814 $ 6,787 $ 19,064 $ 19,707 Year-over-year change (13)% (23)% (18)% (7)% (3)% 1% 1% 4%
Slide 15: Summary P&L results – trending
Summary P&L results – trending Continuing operations ($ in millions, except per share amounts) 3Q23 4Q23 1Q24 2Q24 3Q24 4Q24 1Q25 2Q25 3Q25 YTD '24 YTD '25 Total interest income $ 1,301 $ 1,312 $ 1,300 $ 1,228 $ 1,277 $ 1,219 $ 1,231 $ 1,194 $ 1,242 $ 3,806 $ 3,666 Total interest expense 219 237 248
Slide 16: Net interest margin
Net interest margin 3Q25 YTD '25 Interest income / Average yield / Interest income / Average yield / ($ in millions) Average balance Average balance expense rate expense rate Cash and investment securities $ 4,173 $ 44 4.2 % $ 4,322 $ 135 4.2 % Credit card and other loans 17,596 1,198 27.0 % 17,813
Slide 17: Capital
Capital Rolling 4 ($ in millions) 3Q23 4Q23 1Q24 2Q24 3Q24 4Q24 1Q25 2Q25 3Q25 quarter avg. Total company Common equity tier 1 capital ratio(1) 12.9 % 12.2 % 12.6 % 13.8 % 13.3 % 12.4 % 12.0 % 13.0 % 14.0 % 12.9 % Total risk-based capital ratio(2) 14.2 % 13.6 % 14.0 % 15.1 % 14.6 % 13.8 % 15.5 % 16.
Slide 18: Credit quality trends
Credit quality trends Delinquency rates 15-year peak rate: 6.5% 6.5% 6.4% 6.3% 6.2% 6.0% 5.9% 5.9% 6.0% 15-year avg rate: ~4.9% 5.7% 5.7% 5.7% 5.5% 5.5% 3.9% 4.4% 15-year low rate: 3.3% 4.1% (in 2Q21) 4Q21 1Q22 2Q22 3Q22 4Q22 1Q23 2Q23 3Q23 4Q23 1Q24 2Q24 3Q24 4Q24 1Q25 2Q25 3Q25 Net loss rates 15-y
Slide 19: Additional footnotes and definitions of terms
Additional footnotes and definitions of terms Credit quality and allowance • Beginning in 2024, we revised the calculation of average balances to more closely align with industry practice by incorporating an average daily balance. Prior to 2024, average balances represent the average balance at the
Slide 20: Additional footnotes and definitions of terms
Additional footnotes and definitions of terms Net interest margin (1) Net interest margin: Net interest margin represents annualized Net interest income divided by average Total interest-earning assets. Capital (1) Common equity tier 1 capital ratio: Common equity tier 1 capital ratio represents tie
Slide 21: Forward-looking statements
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 iden
Slide 22: Non-GAAP financial measures
Non-GAAP financial measures We prepare our Consolidated Financial Statements in accordance with accounting principles generally accepted in the United States of America (GAAP). However, certain information included herein constitutes Non-GAAP Financial Measures. Our calculations of Non-GAAP Financia
Slide 23: Reconciliation of GAAP to Non-GAAP financial measures
Reconciliation of GAAP to Non-GAAP financial measures ($ in millions, except per share amounts) 3Q23 4Q23 1Q24 2Q24 3Q24 4Q24 1Q25 2Q25 3Q25 YTD '24 YTD '25 Adjusted total non-interest expenses Total non-interest expenses $ 502 $ 516 $ 482 $ 469 $ 574 $ 536 $ 477 $ 481 $ 476 $ 1,525 $ 1,433 Impacts
Slide 24: Reconciliation of GAAP to Non-GAAP financial measures
Reconciliation of GAAP to Non-GAAP financial measures ($ in millions) 3Q23 4Q23 1Q24 2Q24 3Q24 4Q24 1Q25 2Q25 3Q25 YTD '24 YTD '25 Pretax pre-provision earnings (PPNR) Income (loss) before income taxes $ 225 $ 19 $ 188 $ 180 $ 40 $ (27) $ 197 $ 174 $ 196 $ 408 $ 568 Provision for credit losses 304 4
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