Bread Financial Holdings, Inc. · NYSE:BFH
Bread Financial — Q2 2025 Earnings Presentation
24 slides from Bread Financial's earnings presentation, Jul 24, 2025
Slide 1: Second quarter 2025 results
Second quarter 2025 results July 24, 2025 © 2 0 2 2 B r e a d F i n a n c i a l |
Slide 2: Key highlights
Second quarter 2025 Demonstrated financial resilience and focused capital allocation • Enhanced financial resilience through ongoing operational excellence and responsible growth, proactive credit Key risk management and prudent capital allocation. • Net income of $139 million and earnings per dilut
Slide 3: Second quarter 2025 financial highlights
Second quarter 2025 financial highlights Continuing operations(1) Year-over-year comparisons • Credit sales of $6.8 billion increased 4%, driven by new partner growth and increased general-purpose spending. Revenue • Average loans of $17.7 billion decreased 1%. As compared with historic trends, cont
Slide 4: Summary P&L results
Summary P&L results Continuing operations ($ in millions, except per share amounts) 2Q25 2Q24 $ change % change YTD '25 YTD '24 $ change % change Adjusted PPNR⁽¹⁾ Total interest income $ 1,194 $ 1,228 $ (34) (3) $ 2,424 $ 2,528 $ (104) (4) ($ in millions) Total interest expense 220 241 (21) (9) 444
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% 26.1% 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 and total risk-based capital (TRBC) ratios walk $17.9 $17.9 % of funding ($ in billions) $1.3 $1.3 7% CET1 TRBC $3.5 $3.4 19% 2Q24 13.8 % 15.1 % Unsecured borrowings Net earnings 2.2 % 2.2 % Secured borrowings $13.1 $13.2 74% Risk-weighted
Slide 7: Credit quality and allowance
Credit quality and allowance Delinquency rates Net loss rates 6.5% 5-year peak rate: 6.5% 6.3% 5-year peak rate: 8.6% 5.5% 6.4% 8.5% 8.6% 6.2% 8.2% 6.0% 5.9% 5.9% 8.0% 8.0% 8.0% 7.9% 5.7% 7.8% 5-year avg rate: ~5.2% 6.9% 5-year avg rate: ~6.5% 5-year low rate: 3.3% 5-year low rate: 3.9% 2Q23 3Q23 4Q
Slide 8: 2025 financial outlook
2025 financial outlook As of 7/24/2025 Full year 2024 actuals Full year 2025 outlook Commentary Based on our current economic outlook, elevated gross credit losses, and visibility into our pipeline and Average loans Flat to slightly down existing partners, we expect 2025 average credit card and othe
Slide 9: Appendix
Appendix © 2 0 2 2 ©2025 Bread Financial 9 B r e a d F i n a n c i a l |
Slide 10: Building on our position of strength
Building on our position of strength 2025 focus areas Responsible Manage to the Disciplined Operational growth macroeconomic capital allocation excellence Scale diversified product and regulatory and risk Accelerate continuous suite enabling growth and environment management improvement initiatives
Slide 11: Total non-interest expenses
Total non-interest expenses Adjusted total non-interest expenses Continuing operations excl. impacts from repurchased debt(1) ($ in millions) 2Q25 vs. 2Q24 change in non-interest expenses ($ in millions) $940 $943 Employee comp. and benefits: -1% $(2) Card and processing: $4 5% $469 $468 Info. proce
Slide 12: Diversified product and partner mix
Diversified product and partner mix Product diversification Partner diversification End-of-period loans Credit sales End-of-period loans Credit sales 2% 2% 2% 4% 4% 5% 4% 4% 4% 39% 54% 4% 4% 4% 2% 6% 7% 13% 33% 17% 55% 40% 23% 19% 24% 25% 2Q25 2Q25 2Q25 2Q25 Private label Co-brand Proprietary Bread
Slide 13: Summary financial highlights
Summary financial highlights Continuing operations 2Q25 vs 2Q25 vs YTD '25 vs 2Q25 2Q24 1Q25 YTD '25 YTD '24 ($ in millions) 2Q24 1Q25 YTD '24 Credit sales $ 6,814 $ 6,570 4% $ 6,106 12% $ 12,920 $ 12,600 3% Average credit card and other loans $ 17,686 $ 17,872 (1%) $ 18,164 (3%) $ 17,924 $ 18,209 (
Slide 14: Summary financial highlights – trending
Summary financial highlights – trending Continuing operations ($ in millions) 2Q23 3Q23 4Q23 1Q24 2Q24 3Q24 4Q24 1Q25 2Q25 YTD '24 YTD '25 Credit sales $ 7,057 $ 6,668 $ 7,802 $ 6,030 $ 6,570 $ 6,464 $ 7,898 $ 6,106 $ 6,814 $ 12,600 $ 12,920 Year-over-year change (13%) (13%) (23%) (18%) (7%) (3%) 1%
Slide 15: Summary P&L results – trending
Summary P&L results – trending Continuing operations ($ in millions, except per share amounts) 2Q23 3Q23 4Q23 1Q24 2Q24 3Q24 4Q24 1Q25 2Q25 YTD '24 YTD '25 Total interest income $ 1,197 $ 1,301 $ 1,312 $ 1,300 $ 1,228 $ 1,277 $ 1,219 $ 1,231 $ 1,194 $ 2,528 $ 2,424 Total interest expense 205 219 237
Slide 16: Net interest margin
Net interest margin 2Q25 YTD '25 Interest income / Average yield / Interest income / Average yield / ($ in millions) Average balance Average balance expense rate expense rate Cash and investment securities $ 4,372 $ 46 4.2% $ 4,397 $ 91 4.2% Credit card and other loans 17,686 1,148 26.0% 17,924 2,33
Slide 17: Capital
Capital Rolling 4 ($ in millions) 2Q23 3Q23 4Q23 1Q24 2Q24 3Q24 4Q24 1Q25 2Q25 quarter avg. Total company Common equity tier 1 capital ratio(1) 12.1% 12.9% 12.2% 12.6% 13.8% 13.3% 12.4% 12.0% 13.0% 12.7% Total risk-based capital ratio(2) 13.4% 14.2% 13.6% 14.0% 15.1% 14.6% 13.8% 15.5% 16.5% 15.1% To
Slide 18: Credit quality trends
Credit quality trends Delinquency rates 15-year peak rate: 6.5% 5.7% 5.7% 6.5% 6.4% 5.5% 5.5% 6.3% 6.2% 6.0% 5.9% 5.9% 15-year avg rate: ~4.9% 5.7% 4.4% 4.1% 3.8% 3.9% 15-year low rate: 3.3% 3Q21 4Q21 1Q22 2Q22 3Q22 4Q22 1Q23 2Q23 3Q23 4Q23 1Q24 2Q24 3Q24 4Q24 1Q25 2Q25 Net loss rates 15-year peak r
Slide 19: Additional footnotes and definitions of terms
Additional footnotes and definitions of terms Notes (1) 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 beginning and end of
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 financial measures
Reconciliation of GAAP to Non-GAAP financial measures ($ in millions, except per share amounts) 2Q23 3Q23 4Q23 1Q24 2Q24 3Q24 4Q24 1Q25 2Q25 YTD '24 YTD '25 Adjusted total non-interest expenses Total non-interest expenses $ 530 $ 502 $ 516 $ 482 $ 469 $ 574 $ 536 $ 477 $ 481 $ 949 $ 958 Impacts from
Slide 24: Reconciliation financial measures
Reconciliation of GAAP to Non-GAAP financial measures ($ in millions) 2Q23 3Q23 4Q23 1Q24 2Q24 3Q24 4Q24 1Q25 2Q25 YTD '24 YTD '25 Pretax pre-provision earnings (PPNR) Income (loss) before income taxes $ 86 $ 225 $ 19 $ 188 $ 180 $ 40 $ (27) $ 197 $ 174 $ 369 $ 371 Provision for credit losses 336 30
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