Bread Financial Q1 net loss rate 7.6%, delinquency rate 5.8%

• Bread Financial reports Q2 net loss rate at 7.6%, down from 8.0% YoY. • Delinquency rate at 5.8%, down from 6.2% YoY. • Average credit card and other loans remain stable at $17.6mln. • Net principal losses decrease to $114mln from $120mln YoY.

Bread Financial, a tech-forward financial services company, has released its Q2 financial results, showing a notable improvement in key performance indicators compared to the same period last year. The company reported a net loss rate of 7.6%, a decrease of 0.4 percentage points from the previous year's 8.0% [1]. This reduction indicates a stabilizing trend in the company's financial health.

The delinquency rate, a crucial metric for assessing the risk of loan defaults, also showed a significant decline. It stood at 5.8% for Q2, a 0.4 percentage point decrease from the 6.2% recorded in Q2 of the previous year [1]. This reduction suggests that Bread Financial is effectively managing its credit risk, which is a positive sign for investors.

Average credit card and other loan balances remained stable at $17.6 million, indicating consistent customer engagement and retention efforts [1]. The company also reported a decrease in net principal losses, which fell to $114 million from the $120 million recorded in the previous year [1]. This decrease in net principal losses reflects improved collection efforts and potentially lower default rates.

Overall, Bread Financial's Q2 financial results demonstrate a positive trend in financial performance, with significant improvements in net loss rate, delinquency rate, and net principal losses. These improvements signal a more stable financial future for the company, which is encouraging for investors and stakeholders.

References:
[1] https://www.breadfinancial.com/