Bread Financial Holdings, Inc. · NYSE:BFH
Bread Financial — Q3 2026 Earnings Presentation
18 slides from Bread Financial's earnings presentation, Oct 22, 2026
Slide 1: Third quarter 2026 results
Third quarter 2026 results October 22, 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
Third quarter 2026 Increasing credit sales and accelerating loan and deposit growth • Credit sales increased 9% to $7.4 billion and end-of-period loans of $18.9 billion were up 7% year-over-year. Key ◦ Momentum from both new and existing partners and increased general-purpose spending. • Renewed and
Slide 3: Third quarter 2026 financial highlights
Third quarter 2026 financial highlights Year-over-year comparisons • Credit sales were $7.4 billion, an increase of $0.6 billion, or 9%, driven by growth in both new and existing partnerships, as well Revenue as increased general-purpose spending. $1,017 million • Average credit card and other loans
Slide 4: Summary P&L results
Summary P&L results ($ in millions, except per share amounts) 3Q26 3Q25 $ change % change Total interest income $ 1,294 $ 1,242 $ 52 4 Total interest expense 199 210 (11) (6) Adjusted PPNR⁽¹⁾ Net interest income 1,095 1,032 63 6 ($ in millions) Total non-interest income (78) (61) (17) 27 +9% Revenue
Slide 5: Net interest margin and yields
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% 26.5% 26.7% 26.4% 26.8% 25.7% 26.0% 5.4% 5.2% 5.0% 4.9% 23.
Slide 6: Funding, capital, and liquidity
Funding, capital, and liquidity Average funding sources CET1 capital ratio walk ($ in billions) 3Q25 $13.4 (77% of total funding) $2.9 $1.1 $17.4 CET1 3Q25 14.0 % 3Q26 $15.1 (83% of total funding) $2.4 $0.8 $18.3 Net earnings 3.1 % Risk-weighted asset changes (0.7)% Deposits Secured borrowings Unsec
Slide 7: Credit quality and allowance
Credit quality and allowance Delinquency rates Net loss rates⁽¹⁾ 5-year peak rate: 6.5% 5-year peak rate: 8.6% 5.9% 5.9% 7.8% 7.4% 7.4% 6.4% 5-year avg rate: ~7.0% 5-year avg rate: ~5.6% 8.0% 8.2% 6.0% 7.9% 5.7% 5.8% 7.3% 5.6% 5.6% 7.0% 5.3% 6.4% 5-year low rate: 3.9% (4Q21) 5-year low rate: 4.4% (i
Slide 8: 2026 financial outlook
2026 financial outlook As of 10/22/2026 Full year 2026 Full year 2025 actuals Commentary outlook Average loans Approximately 4% Based on our current economic outlook and visibility into our pipeline and partner growth, we now 2025: $17,850 expect 2026 average loans to be up approximately 4% from ful
Slide 9: Appendix
Appendix © 2 0 2 2 ©2026 Bread Financial 9 B r e a d F i n a n c i a l |
Slide 10: Building on our position of strength
Building on our position of strength 2026 focus areas Responsible growth Proactive, strategic Accelerate sustainable growth risk management through our diversified product suite Execute strategies to improve credit and expand revenue generation performance and maintain strong opportunities, deliveri
Slide 11: Non-interest expenses
Non-interest expenses Adjusted non-interest expenses excl. impacts from debt repurchases(1) ($ in millions) 3Q26 vs. 3Q25 change in non-interest expenses +2% ($ in millions) $1,414 $1,439 Employee comp. and benefits: $6 3% Card and processing: -3% $(2) +3% $473 $486 Info. processing and comm.: $13 1
Slide 12: Diversified product and partner mix
Diversified product and partner mix Product diversification Partner diversification Credit sales End-of-period loans Credit sales End-of-period loans 4% 4% 3% 3% 3% 4% 3% 4% 4% 5% 5% 4% 6% 35% 13% 8% 49% 9% 17% 22% 20% 58% 22% 43% 34% 18% 3Q26 3Q26 3Q26 3Q26 Co-brand Private label Proprietary Bread
Slide 13: Credit quality trends
Credit quality trends Delinquency rates 15-year peak rate: 6.5% 6.50% 6.44% 6.26% 6.25% 5.25% 5.99% 5.94% 5.93% 6.04% 5.71% 5.73% 5.75% 15-year avg rate: ~4.9% 5.53% 5.53% 5.59% 5.57% 15-year low rate: 3.3% (in 2Q21) 4Q22 1Q23 2Q23 3Q23 4Q23 1Q24 2Q24 3Q24 4Q24 1Q25 2Q25 3Q25 4Q25 1Q26 2Q26 3Q26 Net
Slide 14: Additional footnotes and definitions of terms
Additional footnotes and definitions of terms • Average daily balance: Beginning in 2024, we revised the calculation of average balances to more closely align with industry practice by incorporating an average daily balance. Prior to 2024, average balances represent the average balance at the beginn
Slide 15: Forward-looking statements
Forward-looking statements This release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Forward- looking statements give our expectations or forecasts of future events and can generally be ide
Slide 16: Non-GAAP financial measures
Non-GAAP financial measures We prepare our Consolidated Financial Statements in accordance with accounting principles generally accepted in the United States of America (GAAP). However, certain information included herein constitutes Non-GAAP Financial Measures. Our calculations of Non-GAAP Financia
Slide 17: Reconciliation of GAAP to Non-GAAP financial measures
Reconciliation of GAAP to Non-GAAP financial measures ($ in millions, except per share amounts) 3Q26 3Q25 YTD '26 YTD '25 Adjusted net income available to common stockholders Net income available to common stockholders $ 150 $ 188 $ 473 $ 464 Impacts from debt repurchases 1 3 2 15 Adjusted net incom
Slide 18: Reconciliation of GAAP to Non-GAAP financial measures
Reconciliation of GAAP to Non-GAAP financial measures ($ in millions) 3Q26 3Q25 YTD '26 YTD '25 Average Tangible common equity Average Total stockholders’ equity $ 3,497 $ 3,335 $ 3,464 $ 3,255 Less: average Preferred stock (201) — (139) — Less: average Goodwill and intangible assets, net (699) (728
Bread Financial Holdings — Q3 2026 Earnings Presentation on 6ix