Bread Financial Holdings, Inc. · NYSE:BFH
Bread Financial — Q4 2025 Earnings Presentation
20 slides from Bread Financial's earnings presentation, Jan 29, 2026
Slide 1: Fourth quarter and full year 2025 results
Fourth quarter and full year 2025 results January 29, 2026 © 2 0 2 2 B r e a d F i n a n c i a l |
Slide 2: 2025 achievements
2025 achievements Achieved full year 2025 Delivered responsible growth financial outlook • Added new relationships in diversified verticals including Cricket Wireless, Crypto.com, and Vivint, and expanded our home vertical, including Bed Bath & Beyond, Furniture First, and Raymour & Flanigan. Full y
Slide 3: Key highlights
Fourth quarter 2025 Demonstrated financial resilience and strategic capital allocation • Enhanced financial resilience through ongoing operational excellence initiatives, responsible growth, proactive credit Key risk management, and prudent capital allocation. • Net income available to common stockh
Slide 4: Full year 2025 financial highlights
Full year 2025 financial highlights Continuing operations(1) Year-over-year comparisons • Credit sales were $27.8 billion, an increase of $0.8 billion, or 3%, driven by new partner growth and increased general- Revenue purpose spending. $3.8 billion • Average credit card and other loans of $17.9 bil
Slide 5: Fourth quarter 2025 financial highlights
Fourth quarter 2025 financial highlights Continuing operations(1) Year-over-year comparisons • Credit sales were $8.1 billion, an increase of $0.2 billion, or 2%, driven by new partner growth and increased general- Revenue purpose spending. $1.0 billion • Average credit card and other loans of $18.0
Slide 6: Summary P&L results
Summary P&L results Continuing operations ($ in millions, except per share amounts) 4Q25 4Q24 $ change % change 2025 2024 $ change % change Adjusted PPNR⁽¹⁾ Total interest income $ 1,246 $ 1,219 $ 27 2 $ 4,912 $ 5,024 $ (112) (2) ($ in millions) Total interest expense 199 231 (32) (14) 854 960 (106)
Slide 7: 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 27.7% 27.4% 27.0% 27.0% 26.7% 26.4% 26.5% 26.0% 25.7% 5.4% 5.4% 5.4% 5.2% 5.2
Slide 8: Funding, capital, and liquidity
Funding, capital, and liquidity Average funding sources CET1 capital ratio walk ($ in billions) 4Q24 $12.9 (73% of total funding) $3.7 $1.0 $17.7 CET1 4Q24 12.4 % 4Q25 $13.7 (78% of total funding) $2.8 $1.0 $17.5 Net earnings 3.0 % Risk-weighted asset changes 0.1 % Deposits Secured borrowings Unsecu
Slide 9: 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% 5.7% 5.8% 7.4% 7.4% 6.5% 6.4% 8.5% 8.6% 6.2% 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: ~6.7% 5-year low rate: 3.3% (2Q21) 5-year low rate: 3.9% (in 3
Slide 10: 2026 financial outlook
2026 financial outlook As of 1/29/2026 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: $17,850 million average credit card and other loans growt
Slide 11: Building on our position of strength
Building on our position of strength 2026 focus areas Responsible growth Proactive, strategic Accelerate sustainable growth risk management through our diversified product suite Execute strategies to improve credit and expand revenue generation performance and maintain strong opportunities, deliveri
Slide 12: Appendix
Appendix © 2 0 2 2 ©2026 Bread Financial 12 B r e a d F i n a n c i a l |
Slide 13: Total non-interest expenses
Total non-interest expenses Adjusted total non-interest expenses Continuing operations excl. impacts from debt repurchases(1) ($ in millions) 4Q25 vs. 4Q24 change in non-interest expenses -1% ($ in millions) $1,943 $1,914 Employee comp. and benefits: -4% $(10) Card and processing: -8% $(7) -5% Info.
Slide 14: Diversified product and partner mix
Diversified product and partner mix Product diversification Partner diversification End-of-period loans Credit sales End-of-period loans Credit sales 2% 2% 3% 4% 4% 3% 4% 4% 41% 52% 4% 3% 5% 4% 2% 5% 9% 14% 30% 18% 53% 43% 23% 18% 24% 26% 4Q25 4Q25 4Q25 4Q25 Private label Co-brand Proprietary Bread
Slide 15: Credit quality trends
Credit quality trends Delinquency rates 15-year peak rate: 6.5% 6.5% 6.4% 6.3% 6.2% 6.0% 5.9% 5.9% 6.0% 15-year avg rate: ~4.9% 5.7% 5.7% 5.7% 5.8% 5.5% 5.5% 4.4% 15-year low rate: 3.3% 4.1% (in 2Q21) (1) (1) 1Q22 2Q22 3Q22 4Q22 1Q23 2Q23 3Q23 4Q23 1Q24 2Q24 3Q24 4Q24 1Q25 2Q25 3Q25 4Q25 Net loss ra
Slide 16: Additional footnotes and definitions of terms
Additional footnotes and definitions of terms • Average daily balance: Beginning in 2024, we revised the calculation of average balances to more closely align with industry practice by incorporating an average daily balance. Prior to 2024, average balances represent the average balance at the beginn
Slide 17: Forward-looking statements
Forward-looking statements This release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Forward- looking statements give our expectations or forecasts of future events and can generally be ide
Slide 18: Non-GAAP financial measures
Non-GAAP financial measures We prepare our Consolidated Financial Statements in accordance with accounting principles generally accepted in the United States of America (GAAP). However, certain information included herein constitutes Non-GAAP Financial Measures. Our calculations of Non-GAAP Financia
Slide 19: Reconciliation of GAAP to Non-GAAP financial measures
Reconciliation of GAAP to Non-GAAP financial measures ($ in millions, except per share amounts) 4Q25 4Q24 2025 2024 Adjusted total non-interest expenses Total non-interest expenses $ 555 $ 536 $ 1,988 $ 2,060 Impacts from debt repurchases 55 11 74 117 Adjusted total non-interest expenses $ 500 $ 525
Slide 20: Reconciliation of GAAP to Non-GAAP financial measures
Reconciliation of GAAP to Non-GAAP financial measures ($ in millions) 4Q25 4Q24 2025 2024 Pretax pre-provision earnings (PPNR) Income (loss) before income taxes $ 47 $ (27) $ 615 $ 381 Provision for credit losses 373 417 1,242 1,397 Pretax pre-provision earnings (PPNR) $ 420 $ 390 $ 1,857 $ 1,778 Le
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