Bread Financial Holdings Inc: Good quarter leads to nice guidance raise

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Bread Financial Holdings Inc: Good quarter leads to nice guidance raise

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Bread Financial Holdings Inc

Good quarter leads to nice guidance raise

Reiterate Rating: BUY | PO: 115.00 USD | Price: 101.87 USD

Continued momentum in 2Q 23 July 2026

BFH reported strong 2Q26 results, with adjusted EPS of $3.55, exceeding Equity

BofAe/consensus of $2.52/$2.77. Relative to our forecast the beat was driven by

stronger non-interest income, lower expenses, and stronger loan growth. Results

Key Changeshighlighted continued momentum across the business, including 5% ending loan growth,

11% credit sales growth, improving delinquency and loss rates, and meaningful capital (US$) Previous Current

returns through share repurchases. Management also raised its outlook for average loan Price Obj. 106.00 115.00

and revenue growth to low- to mid-single digits while improving full-year net loss

guidance to 7.0%-7.1%. We continue to view BFH as an attractive story as improving Mihir Bhatia

Research Analyst

credit, accelerating growth, and strong shareholder returns support further earnings BofAS

power. Reiterate Buy, raise PO to $115 PO. +1 415 436 3553 mihir.bhatia@bofa.com

What we liked: improving credit and growth MatthewResearch AnalystC. O'Neill

Credit trends remained favorable in 2Q, with net charge-offs of 6.98% and delinquencies BofAS matthew.c.oneill@bofa.com

of 5.25% both improving from 7.33% and 5.59% last quarter. BFH is gradually improving Natalie Howe

credit towards its 6% target. Credit sales and loan growth were also strong in 2Q Research Analyst

increasing 11% and 5% y/y respectively driven by new partner additions, strength in co- BofASnatalie.howe@bofa.com

Brand and continued momentum in Bread Pay. FY2026 outlook was also increased Caroline Latta