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Bread Financial Provides Performance Update for March 2025

1. BFH reported a net loss rate of 8.1% for March 2025. 2. Delinquency rate decreased to 5.9% from 6.2% year-over-year. 3. Average loans declined 2% year-over-year, indicating reduced consumer borrowing. 4. Net principal losses increased significantly to $365 million for Q1 2025. 5. Forward-looking statements indicate potential risks due to economic uncertainties.

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FAQ

Why Bearish?

The increase in net losses and decreasing loan performance typically signals financial instability, which can negatively affect stock prices. Historical trends show that significant losses in companies like BFH usually correlate with price declines.

How important is it?

The reported financial performance directly impacts investor perception and stock valuation. Given the significant figures in losses and delinquencies, the likelihood of affecting stock price is high.

Why Short Term?

Immediate results from Q1 typically influence stock performance; the losses reported are current and could lead to short-term declines. Investors are likely to respond quickly to negative announcements impacting their confidence.

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SYFDFSAXP
COLUMBUS, Ohio, April 24, 2025 (GLOBE NEWSWIRE) --  Bread Financial® Holdings, Inc. (NYSE: BFH), a tech-forward financial services company that provides simple, personalized payment, lending, and saving solutions to millions of U.S. consumers, provided a performance update. The following tables present the Company’s net loss rate and delinquency rate for the periods indicated:  For themonth endedMarch 31, 2025 For the three months endedMarch 31, 2025 (dollars in millions)End-of-period credit card and other loans$17,815  $17,815 Average credit card and other loans$17,818  $18,164 Year-over-year change in average credit card and other loans (2%)  (2%)Net principal losses$123  $365 Net loss rate 8.1%  8.2%  As ofMarch 31, 2025 As ofMarch 31, 2024 (dollars in millions)30 days + delinquencies – principal$973  $1,048 Period ended credit card and other loans – principal$16,390  $16,780 Delinquency rate 5.9%  6.2%         About Bread Financial® Bread Financial® (NYSE: BFH) is a tech-forward financial services company that provides simple, personalized payment, lending, and saving solutions to millions of U.S consumers. Our payment solutions, including Bread Financial general purpose credit cards and savings products, empower our customers and their passions for a better life. Additionally, we deliver growth for some of the most recognized brands in travel & entertainment, health & beauty, jewelry and specialty apparel through our private label and co-brand credit cards and pay-over-time products providing choice and value to our shared customers.  To learn more about Bread Financial, our global associates and our sustainability commitments, visit breadfinancial.com or follow us on Instagram and LinkedIn.  Forward-Looking StatementsThis 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 identified by the use of words such as “believe,” “expect,” “anticipate,” “estimate,” “intend,” “project,” “plan,” “likely,” “may,” “should” or other words or phrases of similar import. Similarly, statements that describe our business strategy, outlook, objectives, plans, intentions or goals also are forward-looking statements. Examples of forward-looking statements include, but are not limited to, statements we make regarding, and the guidance we give with respect to, our anticipated operating or financial results, future financial performance and outlook, future dividend declarations, and future economic conditions. We believe that our expectations are based on reasonable assumptions. Forward-looking statements, however, are subject to a number of risks and uncertainties that are difficult to predict and, in many cases, beyond our control. Accordingly, our actual results could differ materially from the projections, anticipated results or other expectations expressed in this release, and no assurances can be given that our expectations will prove to have been correct. Factors that could cause the outcomes to differ materially include, but are not limited to, the following: macroeconomic conditions, including market conditions, inflation, interest rates, labor market conditions, recessionary pressures or concerns over a prolonged economic slowdown, and the related impact on consumer spending behavior, payments, debt levels, savings rates and other behaviors; global political and public health events and conditions, including significant shifts in trade policy, such as changes to, or the imposition of, tariffs and/or trade barriers and any economic impacts, volatility, uncertainty and geopolitical instability resulting therefrom, as well as ongoing wars and military conflicts and natural disasters; future credit performance, including the level of future delinquency and write-off rates; the loss of, or reduction in demand from, significant brand partners or customers in the highly competitive markets in which we compete; the concentration of our business in U.S. consumer credit; inaccuracies in the models and estimates on which we rely, including the amount of our Allowance for credit losses and our credit risk management models; the inability to realize the intended benefits of acquisitions, dispositions and other strategic initiatives; our level of indebtedness and ability to access financial or capital markets; pending and future federal and state legislation, regulation, supervisory guidance, and regulatory and legal actions, including, but not limited to, those related to financial regulatory reform and consumer financial services practices, as well as any such actions with respect to late fees, interchange fees or other charges; impacts arising from or relating to the transition of our credit card processing services to third party service providers that we completed in 2022; failures or breaches in our operational or security systems, including as a result of cyberattacks, unanticipated impacts from technology modernization projects or otherwise; and any tax or other liability or adverse impacts arising out of or related to the spinoff of our former LoyaltyOne segment or the bankruptcy filings of Loyalty Ventures Inc. (LVI) and certain of its subsidiaries and subsequent litigation or other disputes. The foregoing factors, along with other risks and uncertainties that could cause actual results to differ materially from those expressed or implied in forward-looking statements, are described in greater detail under the headings “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” in our Annual Report on Form 10-K for the most recently ended fiscal year, which may be updated in Item 1A of, or elsewhere in, our Quarterly Reports on Form 10-Q filed for periods subsequent to such Form 10-K. Our forward-looking statements speak only as of the date made, and we undertake no obligation, other than as required by applicable law, to update or revise any forward-looking statements, whether as a result of new information, subsequent events, anticipated or unanticipated circumstances or otherwise. ContactsBrian Vereb – Investor RelationsBrian.Vereb@BreadFinancial.com Susan Haugen – Investor RelationsSusan.Haugen@BreadFinancial.com Rachel Stultz – MediaRachel.Stultz@BreadFinancial.com

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