COLUMBUS, Ohio - Bread Financial Holdings, Inc. (NYSE: BFH), a provider of personalized financial services, announced its performance metrics for February, highlighting an uptick in the net loss rate compared to the same period last year. The company, which specializes in payment, lending, and saving solutions, reported a net loss rate of 8.9% for the month ended February 29, 2024, up from 7.8% in February 2023.
The financial services firm also disclosed a rise in delinquency rates, with 30-days-plus delinquencies reaching 6.7% as of February 29, 2024, compared to 6.0% as of February 28, 2023. This increase comes despite a slight rise in the end-of-period credit card and other loans, which stood at $18,391 million at the end of February 2024, up from $18,113 million in the prior year.
Bread Financial has revised its calculation method for average credit card and other loans to align more closely with industry practices, utilizing an average daily balance starting January 2024. The company noted that this change affects year-over-year comparisons for average credit card and other loans and net loss rate calculations.
The company's press release also mentioned that the figures for February 2023 were influenced by the transition of its credit card processing services in June 2022. However, specific details on how this transition impacted the metrics were not provided.
Bread Financial, headquartered in Columbus, Ohio, emphasizes its tech-forward approach and commitment to sustainable business practices. It offers a range of products, including private-label and co-brand credit cards, as well as buy now, pay later options through Bread Pay™. The company also provides direct-to-consumer products like the Bread Cashback™ American Express® Credit Card and Bread Savings™ products.
This update is based on a press release statement and includes forward-looking statements that are subject to various risks and uncertainties, which could cause actual results to differ materially from the company's projections or expectations.
Factors such as macroeconomic conditions, market trends, and regulatory changes could influence future performance. Bread Financial has not provided guidance on anticipated operating or financial results, nor has it made any predictions about future economic conditions or their potential impact on the company's business.
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