Bread Financial Holdings Inc ( (BFH) ) has released its Q4 earnings. Here is a breakdown of the information Bread Financial Holdings Inc presented to its investors.
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Bread Financial Holdings Inc., a tech-forward financial services company, offers personalized payment, lending, and saving solutions primarily through credit cards and savings products for U.S. consumers.
In the latest earnings report, Bread Financial Holdings Inc. announced a slight decline in average loans by 1%, while their common equity tier 1 capital ratio increased to 12.4%. The company’s tangible book value per common share rose by 7%, reflecting a growing financial strength as they repurchased $44 million in convertible notes and completed $44 million in share repurchases.
Key financial metrics show that Bread Financial experienced a reduction in fourth quarter revenue by 9% compared to the previous year, primarily due to lower finance charges and late fees. Despite a stable net loss rate, the company saw a significant decrease in income from continuing operations, largely affected by lower net interest income and increased non-interest expenses. The company’s capital ratios improved, supported by a reduction in parent-level debt and increased direct-to-consumer deposits.
Looking forward, Bread Financial anticipates economic stability with a focus on responsible growth amidst macroeconomic uncertainties. The company expects flat average loan growth for 2025, with total revenue anticipated to grow in low single digits. Despite external challenges, the management remains cautiously optimistic about achieving solid financial results through prudent capital allocation and operational excellence.
