COLUMBUS, Ohio - Bread Financial Holdings, Inc. (NYSE: BFH), a provider of financial services and payment solutions with a market capitalization of $3.19 billion, has released an update on its financial performance, revealing a modest decrease in its loan portfolio and a slight variation in net loss rates year-over-year. The company's stock has shown remarkable strength, delivering a 109.66% return over the past year.
The company reported an end-of-period credit card and other loan balance of $18,143 million for November 2024, a slight decrease from $18,780 million in November 2023. The average credit card and other loans showed a 1% year-over-year decline, compared to an 8% decrease in the previous year. Notably, the net loss rate for November 2024 was 8.0%, marginally up from 7.9% in the same month last year. According to InvestingPro analysis, the company maintains a healthy financial position with an overall health score of "GREAT" and trades at a P/E ratio of 10.26.
Delinquency rates showed a minor improvement, with 30 days plus delinquencies at $1,032 million as of November 2024, down from $1,131 million a year earlier. This resulted in a delinquency rate of 6.2%, compared to 6.5% as of November 2023.
These figures come after Bread Financial adjusted its calculation methods in January 2024 to better align with industry practices, incorporating an average daily balance for loans. This change in methodology affects the comparability of year-over-year data. InvestingPro subscribers have access to over 10 additional key insights about Bread Financial's performance and future prospects through exclusive ProTips and comprehensive financial analysis.
The company also noted the impact of hurricanes Helene and Milton, which led to a freezing of delinquency progression for cardholders in the affected areas identified by the Federal Emergency Management Agency. This action is expected to result in temporarily lower net principal losses and net loss rates in the fourth quarter of 2024, with a subsequent increase anticipated in the second quarter of 2025.
Bread Financial, headquartered in Columbus (WA:CLC), Ohio, emphasizes its commitment to sustainable business practices and a digital-first approach, aiming to provide personalized financial services to its customers. Currently trading near its 52-week high of $65.27 and offering a dividend yield of 1.31%, the company's product suite includes private label and co-brand credit cards, buy now, pay later options, and direct-to-consumer products such as the Bread Cashback® American Express (NYSE:AXP)® Credit Card. For detailed valuation analysis and comprehensive research, investors can access the full Pro Research Report available on InvestingPro.
The information in this article is based on a press release statement from Bread Financial Holdings, Inc.
In other recent news, Bread Financial has reported a slight decrease in their net loss rate, now standing at 7.9% for October 2024, compared to 8.0% for the same period last year. The company's end-of-period credit card and other loans also saw a minor decline, sitting at $17,915 million as of October 2024, down from $18,386 million in October 2023. Delinquency rates showed an improvement, with 30 days plus delinquencies at $1,056 million, a reduction from $1,103 million the previous year.
In their recent Q3 2024 results, Bread Financial announced an adjusted net income of $93 million and adjusted diluted EPS of $1.83, despite a 5% decrease in revenue. The company also enhanced their balance sheet strength through a strategic repurchase of convertible notes.
Analysts have noted that Bread Financial is anticipating a gradual economic recovery while carefully monitoring regulatory changes. The company expects average loans and total revenue to decline in low single digits for 2024, while adjusted expenses are projected to decrease relative to 2023. These recent developments highlight Bread Financial's strategic approach to navigating the current economic landscape.
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