Bread Financial Holdings, Inc. · NYSE:BFH
Bread Financial — Q1 2026 Earnings Presentation
17 slides from Bread Financial's earnings presentation, Apr 23, 2026
Slide 1: First quarter 2026 results
First quarter 2026 results April 23, 2026 © 2 0 2 2 B r e a d F i n a n c i a l |
Slide 2: Key highlights
First quarter 2026 Improved credit sales and returned to loan growth • Credit sales of $6.5 billion increased 7% and end-of-period loans of $18.1 billion were up 2% year-over-year. Key • • Launched new card programs with Ford and Ethan Allen, further expanding our auto and home verticals. Offering B
Slide 3: First quarter 2026 financial highlights
First quarter 2026 financial highlights Revenue Year-over-year comparisons $1,018 million • Credit sales were $6.5 billion, an increase of $0.4 billion, or 7%, driven by new partner growth and increased general-purpose spending. • Average credit card and other loans of $18.3 billion were up 1%, and
Slide 4: Summary P&L results
Summary P&L results ($ in millions, except per share amounts) 1Q26 1Q25 $ change % change Total interest income $ 1,260 $ 1,231 $ 29 2 PPNR⁽¹⁾ Total interest expense 193 225 (32) (14) ($ in millions) Net interest income 1,067 1,006 61 6 +11% Total non-interest income (49) (36) (13) 38 $546 Revenue 1
Slide 5: Net interest margin
Net interest margin Interest-earning asset yields and mix Interest-bearing liability costs and funding mix Loan yield Avg. earning asset yield Net interest margin Cost of total interest-bearing liabilities Cost of deposits 27.0% 27.4% 27.0% 27.1% 26.4% 26.5% 26.7% 25.7% 26.0% 5.4% 5.4% 5.4% 5.2% 5.0
Slide 6: Funding, capital, and liquidity
Funding, capital, and liquidity Average funding sources CET1 capital ratio walk ($ in billions) 1Q25 $13.0 (72% of total funding) $4.2 $1.1 $18.3 CET1 1Q25 12.0 % 1Q26 $13.9 (78% of total funding) $3.2 $0.9 $18.0 Net earnings 3.4 % Risk-weighted asset changes (0.4)% Deposits Secured borrowings Unsec
Slide 7: Credit quality and allowance
Credit quality and allowance Delinquency rates Net loss rates 5-year peak rate: 6.5% 5-year peak rate: 8.6% 5.9% 5.9% 6.4% 5.7% 5.8% 8.6% 7.4% 7.4% 7.3% 5.6% 8.5% 6.2% 8.0% 8.2% 6.0% 6.0% 7.8% 7.9% 5-year avg rate: ~5.4% 5-year avg rate: ~6.8% 5-year low rate: 3.3% (2Q21) 5-year low rate: 3.9% (in 3
Slide 8: 2026 financial outlook
2026 financial outlook As of 4/23/2026 Full year 2025 actuals Full year 2026 outlook Commentary Average loans Up low single digits Based on our current economic outlook and visibility into our pipeline and partner growth, we expect 2026 2025: $17,850 average credit card and other loans growth to be
Slide 9: Appendix
Appendix © 2 0 2 2 ©2026 Bread Financial 9 B r e a d F i n a n c i a l |
Slide 10: Building on our position of strength
Building on our position of strength 2026 focus areas Responsible growth Proactive, strategic Accelerate sustainable growth risk management through our diversified product suite Execute strategies to improve credit and expand revenue generation performance and maintain strong opportunities, deliveri
Slide 11: Total non-interest expenses
Total non-interest expenses Total non-interest expenses ($ in millions) 1Q26 vs. 1Q25 change in non-interest expenses -1% ($ in millions) $477 $472 Employee comp. and benefits: $5 2% Card and processing: -3% $(2) Info. processing and comm.: -6% $(5) Marketing: 2% $— 1Q25 1Q26 Depreciation and amorti
Slide 12: Diversified product and partner mix
Diversified product and partner mix Product diversification Partner diversification Credit sales End-of-period loans Credit sales End-of-period loans 3% 2% 2% 2% 4% 4% 4% 4% 52% 4% 4% 37% 4% 5% 5% 6% 7% 14% 18% 56% 23% 21% 42% 23% 35% 19% 1Q26 1Q26 1Q26 1Q26 Co-brand Private label Proprietary Bread
Slide 13: Credit quality trends
Credit quality trends Delinquency rates 15-year peak rate: 6.5% 6.50% 6.44% 6.26% 6.25% 5.99% 5.94% 5.93% 6.04% 5.70% 5.71% 5.73% 5.75% 15-year avg rate: ~4.9% 5.53% 5.53% 5.59% 4.38% 15-year low rate: 3.3% (in 2Q21) (1) (1) 2Q22 3Q22 4Q22 1Q23 2Q23 3Q23 4Q23 1Q24 2Q24 3Q24 4Q24 1Q25 2Q25 3Q25 4Q25
Slide 14: Additional footnotes and definitions of terms
Additional footnotes and definitions of terms • Average daily balance: Beginning in 2024, we revised the calculation of average balances to more closely align with industry practice by incorporating an average daily balance. Prior to 2024, average balances represent the average balance at the beginn
Slide 15: Forward-looking statements
Forward-looking statements This release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Forward- looking statements give our expectations or forecasts of future events and can generally be ide
Slide 16: Non-GAAP financial measures
Non-GAAP financial measures We prepare our Consolidated Financial Statements in accordance with accounting principles generally accepted in the United States of America (GAAP). However, certain information included herein constitutes Non-GAAP Financial Measures. Our calculations of Non-GAAP Financia
Slide 17: Reconciliation of GAAP to Non-GAAP financial measures
Reconciliation of GAAP to Non-GAAP financial measures ($ in millions) 1Q26 1Q25 Pretax pre-provision earnings (PPNR) Income from continuing operations before income taxes $ 243 $ 197 Provision for credit losses 303 296 Pretax pre-provision earnings (PPNR) $ 546 $ 493 Average Tangible common equity A
Bread Financial Holdings — Q1 2026 Earnings Presentation on 6ix