NYSE$BFH

Bread Financial Holdings Inc · Q4 2023 earnings

Q4 2023 earnings · · Investor relations

Briefing

Bread Financial's Q4 2023 earnings were released, highlighting focus on prudent growth and expense discipline.

Bread Financial reported a net income of $43 million for Q4 2023. The company's revenue was $1.017 billion, a decrease of 2% compared to Q4 2022. Diluted earnings per share from continuing operations were $0.90. The company is proactively addressing the CFPB's proposed rule on credit card late fees and remains focused on sustainable, profitable growth.

  • Average credit card and other loans decreased 8% year-over-year.
  • Revenue decreased 2% year-over-year, while net income increased $177 million.
  • Common equity tier 1 capital ratio increased 350 basis points year-over-year.
  • Tangible book value per share increased 49% year-over-year.

Headline financials

Total Revenue

$1.02B

Previous: $1.03B-1.5%
EPS (adj)

$0.90

Previous: -$2.68+133.6%
Delinquency Rate

6.5%

Previous: 5.5%+18.2%
CET1 Capital Ratio

12.2%

No prior period
Capital Expenditures

-$21M

No prior period
Net Income

$43M

Previous: -$134M+132.1%
Operating Income

$45M

No prior period
Stock-Based Comp

$12M

Previous: $9M+33.3%

Revenue & EPS history

Bread Financial · Revenue · Quarterly

$1.02B

Q4 2023-1.5%vs Q4 2022
Beat estimate in 14 of 15 quarters(93%)
ActualEstimate

Forward guidance

Bread Financial anticipates slower sales growth due to strategic credit tightening and moderating consumer spending, impacting loan growth and net loss rate. The outlook assumes multiple interest rate decreases by the Federal Reserve, pressuring total net interest income. The potential impacts of the proposed CFPB late fee rule are not factored in.

Tailwinds

  • Efficiency gains from technology modernization and digital advancement.
  • Disciplined expense management to deliver nominal positive operating leverage.
  • Commitment to mitigate the impact of potential CFPB late fee rule changes.
  • Ongoing engagement with brand partners to address regulatory changes.
  • Continued product diversification strategies.

Headwinds

  • Slower sales growth due to strategic credit tightening.
  • Continued moderation in consumer spending pressuring loan growth.
  • Multiple interest rate decreases by the Federal Reserve pressuring total net interest income.
  • Higher gross credit losses increasing reversals of interest and fees.
  • Potential significant impact from the proposed CFPB late fee rule if implemented as proposed.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q4 2023

Historical avgQ4 2023

+0.8%

Avg return

Earnings day

+2.2%

Avg return

5 days after

+3.3%

Avg return

30 days after

59%

41 / 69 earnings

Positive

+17.8%

Q3 2020

Best reaction

-19.0%

Q4 2015

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026+0.1%-6.6%-6.5%
Q4 2025+7.4%+10.6%+3.9%
Q3 2025+8.4%+7.3%+6.9%
Q2 2025+0.6%-2.0%+3.5%
Q1 2025+2.5%+1.2%+5.7%
Q4 2024-0.5%-5.4%-15.2%
Q3 2024+0.2%-1.8%+13.8%
Q2 2024+9.2%+8.1%+12.4%
Q1 2024+4.2%+3.9%+17.9%
Q4 2023+16.4%+20.3%+20.6%
Q3 2023-2.5%-2.8%-2.2%
Q2 2023+12.0%+11.4%+1.7%
Q1 2023+3.3%-7.0%+11.0%
Q4 2022-5.8%-4.0%-7.2%
Q3 2022+5.9%+12.6%+21.3%
Q2 2022-5.2%-10.0%-8.0%
Q1 2022+6.0%+3.5%+1.8%
Q4 2021+1.7%+5.0%+1.8%
Q3 2021-3.7%-2.1%+2.4%
Q2 2021-5.9%-6.1%-1.2%
Q1 2021+9.3%+10.9%+12.2%
Q4 2020+0.1%+3.2%+42.8%
Q3 2020+17.8%+31.1%+70.4%
Q2 2020+4.3%+1.1%+1.5%
Q1 2020+10.1%+29.8%+14.6%
Q4 2019-6.3%-6.6%-21.7%
Q3 2019-15.3%-16.0%-15.6%
Q2 2019+0.5%+2.9%-8.0%
Q1 2019-4.9%-2.9%-13.0%
Q4 2018-8.7%-6.0%-7.5%
Q3 2018+2.2%-2.8%-6.3%
Q2 2018+3.1%+2.8%+5.3%
Q1 2018-2.0%-3.9%-1.6%
Q4 2017+0.9%-1.9%-6.7%
Q3 2017+4.8%+5.0%-1.8%
Q2 2017-10.2%-8.1%-16.0%
Q1 2017+7.8%+9.3%-2.3%
Q4 2016-2.2%+0.5%+7.7%
Q3 2016-6.9%-5.1%+1.3%
Q2 2016+7.5%+8.4%-6.9%
Q1 2016-5.5%
Q4 2015-19.0%
Q3 2015+7.2%
Q2 2015-9.1%
Q1 2015-2.5%
Q4 2014-6.1%
Q3 2014+8.8%
Q2 2014-1.6%
Q1 2014-7.5%
Q4 2013+13.2%
Q3 2013+2.5%
Q2 2013+3.0%
Q1 2013+1.9%
Q4 2012+2.2%
Q3 2012+4.0%
Q2 2012+0.5%
Q1 2012+0.5%
Q4 2011-0.3%
Q3 2011+0.7%
Q2 2011-3.7%
Q1 2010+1.0%
Q1 2011+1.0%
Q4 2008-1.0%
Q4 2010-1.0%
Q3 2010+0.4%
Q3 2009+0.4%
Q4 2009-0.5%
Q2 2010-0.5%
Q2 2009-0.5%

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