Bread Financial Holdings, Inc. · NYSE:BFH
Bread Financial — Q2 2026 Earnings Presentation
19 slides from Bread Financial's earnings presentation, Jul 23, 2026
Slide 1: Second quarter 2026 results
Second quarter 2026 results July 23, 2026 © 2 0 2 2 ©2023 Bread Financial 1 B r e a d F i n a n c i a l |
Slide 2: Key highlights
Second quarter 2026 Accelerating growth across credit sales, loans, and deposits • Credit sales of $7.5 billion increased 11% and end-of-period loans of $18.5 billion were up 5% year-over-year. Key • ◦ Momentum from scaling new partners within both our home vertical and Bread Pay, as well as increas
Slide 3: Second quarter 2026 financial highlights
Second quarter 2026 financial highlights Year-over-year comparisons • Credit sales were $7.5 billion, an increase of $0.7 billion, or 11%, driven by growth in our new partnerships and increased general- Revenue purpose spending. $993 million • Average credit card and other loans of $18.2 billion wer
Slide 4: Summary P&L results
Summary P&L results ($ in millions, except per share amounts) 2Q26 2Q25 $ change % change Total interest income $ 1,234 $ 1,194 $ 40 3 Total interest expense 195 220 (25) (11) Adjusted PPNR⁽¹⁾ Net interest income 1,039 974 65 7 ($ in millions) Total non-interest income (46) (45) (1) 4 +11% Revenue 9
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 27.4% 27.0% 27.1% 26.4% 26.5% 26.7% 26.4% 25.7% 26.0% 5.4% 5.4% 5.2% 5.0% 4.9
Slide 6: Funding, capital, and liquidity
Funding, capital, and liquidity Average funding sources CET1 capital ratio walk ($ in billions) 2Q25 $13.2 (74% of total funding) $3.4 $1.3 $17.9 CET1 2Q25 13.0 % 2Q26 $14.3 (80% of total funding) $2.8 $0.8 $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% 7.0% 6.0% 5.3% 8.0% 8.2% 6.0% 7.8% 7.9% 5-year avg rate: ~5.5% 5-year avg rate: ~6.9% 5-year low rate: 3.8% (3Q21) 5-year low rate: 3.9% (in 3
Slide 8: 2026 financial outlook
2026 financial outlook As of 7/23/2026 Full year 2025 actuals Full year 2026 outlook Commentary Average loans Up low- to mid-single digits Based on our current economic outlook and visibility into our pipeline and partner growth, we now expect 2025: $17,850 2026 average credit card and other loans g
Slide 9: Financial targets
Financial targets As of 7/23/2026 Near term Long term Financial Sustainable, Enhance targets responsible growth shareholder value Loan growth Low- to mid-single digit Mid- to high-single digit Building on our loan growth loan growth position of strength CET1 Maintain CET1 ratio of 13-14% Maintain CE
Slide 10: Appendix
Appendix © 2 0 2 2 ©2026 Bread Financial 10 B r e a d F i n a n c i a l |
Slide 11: Building on our position of strength
Building on our position of strength 2026 focus areas Responsible growth Proactive, strategic Accelerate sustainable growth risk management through our diversified product suite Execute strategies to improve credit and expand revenue generation performance and maintain strong opportunities, deliveri
Slide 12: Total non-interest expenses
Total non-interest expenses Adjusted total non-interest expenses excl. impacts from debt repurchases(1) ($ in millions) 2Q26 vs. 2Q25 change in non-interest expenses +1% ($ in millions) $943 $953 Employee comp. and benefits: $13 6% +3% Card and processing: $— 1% $468 $483 Info. processing and comm.:
Slide 13: Diversified product and partner mix
Diversified product and partner mix Product diversification Partner diversification Credit sales End-of-period loans Credit sales End-of-period loans 5% 4% 3% 3% 3% 4% 4% 4% 4% 4% 36% 50% 4% 4% 6% 13% 7% 8% 17% 56% 23% 21% 42% 22% 34% 19% 2Q26 2Q26 2Q26 2Q26 Co-brand Private label Proprietary Bread
Slide 14: Credit quality trends
Credit quality trends Delinquency rates 15-year peak rate: 6.5% 6.50% 6.44% 6.26% 6.25% 5.25% 5.99% 5.94% 5.93% 6.04% 15-year avg rate: ~4.9% 5.70% 5.71% 5.73% 5.75% 5.53% 5.53% 5.59% 15-year low rate: 3.3% (in 2Q21) (1) (1) 3Q22 4Q22 1Q23 2Q23 3Q23 4Q23 1Q24 2Q24 3Q24 4Q24 1Q25 2Q25 3Q25 4Q25 1Q26
Slide 15: Additional footnotes and definitions of terms
Additional footnotes and definitions of terms • Average daily balance: Beginning in 2024, we revised the calculation of average balances to more closely align with industry practice by incorporating an average daily balance. Prior to 2024, average balances represent the average balance at the beginn
Slide 16: Forward-looking statements
Forward-looking statements This release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Forward- looking statements give our expectations or forecasts of future events and can generally be ide
Slide 17: Non-GAAP financial measures
Non-GAAP financial measures We prepare our Consolidated Financial Statements in accordance with accounting principles generally accepted in the United States of America (GAAP). However, certain information included herein constitutes Non-GAAP Financial Measures. Our calculations of Non-GAAP Financia
Slide 18: Reconciliation of GAAP to Non-GAAP financial measures
Reconciliation of GAAP to Non-GAAP financial measures ($ in millions, except per share amounts) 2026 2025 2026 2025 Adjusted net income available to common stockholders Net income available to common stockholders $ 144 $ 139 $ 324 $ 276 Impacts from debt repurchases — 10 1 12 Adjusted net income ava
Slide 19: Reconciliation of GAAP to Non-GAAP financial measures
Reconciliation of GAAP to Non-GAAP financial measures ($ in millions, except per share amounts) 2026 2025 2026 2025 Average Tangible common equity Average Total stockholders’ equity $ 3,433 $ 3,183 $ 3,447 $ 3,214 Less: average Preferred stock (143) — (108) — Less: average Goodwill and intangible as
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