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NYSE: BFH BREAD FINANCIAL HOLDINGS, INC. 8-K

Bread Financial reports 6.88% net loss rate, 5.25% delinquency in June credit update

Filed July 23, 2026 · Period ending July 23, 2026 · ~1 min read

3 key changes 2 high relevance 1 section

Key Changes

  • high

    Net principal loss rate of 6.88% for June 2026, with $104M in monthly charge-offs on an $18.4B loan portfolio—credit losses remain elevated in the consumer finance sector.

    Exhibit 99.1 view on EDGAR →
  • high

    Delinquency rate improved to 5.25% from 5.73% year-over-year, with delinquent principal declining to $859M from $922M—signals moderating credit stress versus prior year.

    Exhibit 99.1 view on EDGAR →
  • medium

    Average credit card and other loans grew 4.1% year-over-year to $18.4B, reflecting modest portfolio expansion amid the credit environment.

    Exhibit 99.1 view on EDGAR →

Summary

Bread Financial disclosed June 2026 credit performance metrics showing a 6.88% net principal loss rate and $104 million in monthly charge-offs. The loss rate reflects the percentage of the average loan portfolio written off as uncollectible during the month, a key indicator of credit quality in the consumer finance business. While losses remain elevated, the delinquency rate improved year-over-year to 5.25% from 5.73%, with delinquent balances declining from $922 million to $859 million—suggesting some stabilization in borrower payment behavior.

The company's loan portfolio grew modestly, with average credit card and other loans up 4.1% year-over-year to $18.4 billion. The combination of improving delinquencies and ongoing portfolio growth indicates Bread is managing credit risk while continuing to originate new business. For investors, the key watch is whether the loss rate continues at current levels or begins to trend down in line with the delinquency improvement—sustained high charge-offs would pressure profitability even as the delinquency trend improves.

Section-by-Section Diff

Event · Exhibit 99.1

2 Added
Added June 2026 net principal loss rate high

Added in current filing · view on EDGAR →

Net principal loss rate 6.88 % 6.98 %

For the month ended June 30, 2026, Bread Financial reported a net principal loss rate of 6.88%, with a three-month rate of 6.98%. This represents the percentage of average credit card and other loans written off as uncollectible during the period.

Added June 2026 net principal losses medium

Added in current filing · view on EDGAR →

Net principal losses $ 104 $ 317

Bread Financial recorded $104 million in net principal losses for June 2026, and $317 million for the three-month period ended June 30, 2026. These figures represent the dollar amount of loans written off during the respective periods.

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Figures/quotes linked to EDGAR · Narrative written by AI · Jul 27, 2026 · How we verify