Yahoo Finance

• Revenue: $3.8 billion for the full year 2024, a decrease of 11% year-over-year.

• Adjusted Income from Continuing Operations: $21 million for the fourth quarter.

• Adjusted Diluted EPS from Continuing Operations: $0.41 for the fourth quarter.

• Tangible Book Value per Share: $46.97, a 7% increase year-over-year.

• Common Equity Tier 1 Capital Ratio: 12.4%, increased by 20 basis points year-over-year.

• Credit Sales: $27 billion for the full year 2024, a decrease of 7% year-over-year.

• Average Loans: $18.1 billion for the full year 2024, a decrease of 1% year-over-year.

• Fourth Quarter Credit Sales: $7.9 billion, an increase of 1% year-over-year.

• Fourth Quarter Revenue: $0.9 billion, a decrease of 9% year-over-year.

• Net Loss Rate: 8.0% for the fourth quarter, flat year-over-year.

• Delinquency Rate: 5.9% for the fourth quarter, down 60 basis points year-over-year.

• Direct-to-Consumer Deposits: $7.7 billion at quarter end, accounting for 43% of average total funding.

• Loan Yield: 25.7% for the fourth quarter, decreased by 200 basis points year-over-year.

• Net Interest Margin: 17.8% for the fourth quarter.

• Warning! GuruFocus has detected 4 Warning Sign with BFH.

Release Date: January 30, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• Bread Financial Holdings Inc (NYSE:BFH) added iconic brand partners such as Hard Rock International, HP, and Saks Fifth Avenue, enhancing its portfolio and securing over 85% of its loans through 2026.

• The company successfully reduced its parent level debt by 50% since 2021, achieving a double leverage ratio target of below 115%.

• BFH's balance sheet improvements led to Moody's and Fitch upgrading their rating outlooks from stable to positive.

• The company achieved all its 2024 full-year targets despite a challenging macroeconomic environment, demonstrating operational resilience.

• BFH's direct-to-consumer deposits grew to $7.7 billion, improving its overall funding mix and providing a strong foundation for future growth.

Negative Points

• Credit sales decreased by 7% year-over-year, reflecting moderated consumer spending and proactive credit tightening actions.

• Revenue declined by 11% due to lower finance charges and late fees, as well as reduced merchant discount fees from lower big-ticket sales.

• The net loss rate remained elevated at 8.0%, with expectations of continued high loss rates in the first half of 2025.

• Loan yield decreased by 200 basis points year-over-year, impacted by lower finance charges and a shift in product and risk mix.

• The company faces ongoing economic and political uncertainties, including potential impacts from key legislative and monetary policies.