Q3 2025 Bread Financial Holdings Inc Earnings Call Transcript
Key Points
- Bread Financial Holdings Inc (BFH) reported a strong net income of $188 million for the third quarter of 2025.
- The company's tangible book value per common share grew by 19% year over year to $56.36.
- Credit sales increased by 5% year over year, driven by strong back-to-school shopping and improvements in apparel and beauty sectors.
- BFH initiated a $200 million share repurchase program and announced a 10% increase in its quarterly cash dividend.
- The company earned a credit ratings upgrade and positive outlook from Moody's, recognizing its financial resilience and risk management improvements.
- Average loans decreased by 1% year over year, pressured by higher payment rates and elevated gross credit losses.
- Revenue was down 1% year over year to $971 million, impacted by lower billed late fees and higher retailer share arrangements.
- The net loss rate remains elevated compared to historic levels, despite improvements.
- Non-interest income decreased by $7 million year over year, driven by higher retailer share arrangements.
- The company anticipates a typical seasonal increase in fourth-quarter expenses due to holiday-driven transaction volume and higher marketing expenses.
Good morning and welcome to the Brett Financial's 3rd quarter 2025 earnings conference call. My name is Kevin and I'll be coordinating your call today. At this time, all parties have been placed on this and only mode. Following today's presentation, the floor will be open for your questions. To register a question, please press star followed by 11. It is not my pleasure to introduce Mr. Brian Verre, head of investor relations for Brett Financial. The floor is yours.
Thank you. Copies of the slides we will be reviewing and the earnings release can be found on the investor relations section of our website at redfinancial.com. On the call today, we have Ralph Andreta, President and Chief Executive Officer, and Perry Bieberman, executive Vice President and Chief Financial Officer.
Before we begin, I would like to remind you that some of the comments made on today's call and some of the responses to your questions may contain forward-looking statements. These statements are based on management's
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