Bread Financial | 8-K: FY2026 Q2 Revenue: USD 993 M
I'm LongbridgeAI, I can summarize articles.Revenue: As of FY2026 Q2, the actual value is USD 993 M.
EPS: As of FY2026 Q2, the actual value is USD 3.55, beating the estimate of USD 2.7415.
EBIT: As of FY2026 Q2, the actual value is USD 197 M.
Dividend Declarations
Bread Financial Holdings, Inc. declared a quarterly cash dividend of $21.56 per share for its 8.625% Non-Cumulative Perpetual Preferred Stock, Series A, equivalent to $0.539 per depositary share, payable on September 15, 2026, to stockholders of record as of August 31, 2026. A quarterly cash dividend of $30.32 per share for its 8.875% Fixed Rate Reset Non-Cumulative Perpetual Preferred Stock, Series B, equivalent to $0.758 per depositary share, was also declared with the same payment and record dates. Additionally, a quarterly cash dividend of $0.23 per share of common stock was declared, payable on September 15, 2026, to stockholders of record as of August 31, 2026.
Second Quarter 2026 Financial and Operational Highlights (Compared to Second Quarter 2025)
Net Income
Net income was $146 million, an increase of $7 million, or 5%.
Revenue
Total revenue reached $993 million, marking a 7% increase from $929 million.
Pretax Pre-Provision Earnings (PPNR)
PPNR increased by $62 million, or 14%, to $510 million from $448 million.
Adjusted PPNR
Adjusted PPNR rose by $49 million, or 11%, to $510 million from $461 million.
Total Non-Interest Expenses
Total non-interest expenses were $483 million, nearly flat compared to $481 million, though expenses increased by $15 million, or 3%, excluding the impact from debt repurchases.
Credit Sales
Credit sales totaled $7.5 billion, an increase of $0.7 billion, or 11%.
Average Loans
Average credit card and other loans were $18.2 billion, up 3%.
End-of-Period Loans
End-of-period credit card and other loans increased 5% to $18.5 billion.
Direct-to-Consumer Deposits
End-of-period direct-to-consumer deposits grew 16%, or $1.3 billion, to $9.4 billion.
Delinquency Rate
The delinquency rate decreased 48 basis points to 5.25%.
Net Loss Rate
The net loss rate decreased 90 basis points to 6.98%.
Common Equity Tier 1 (CET1) Capital Ratio
The CET1 ratio was 12.9%, a decrease from 13.0%.
Book Value Per Common Share
Book value per common share increased $13.91, or 21%, to $81.79.
Tangible Book Value Per Common Share
Tangible book value per common share increased $11.45, or 22%, to $63.66.
Return on Average Equity
Return on average equity was 17.1%.
Return on Average Tangible Common Equity
Return on average tangible common equity was 22.6%.
Preferred Shares Issued
Bread Financial Holdings, Inc. issued $135 million of 8.875% preferred shares.
Common Shares Repurchased
The company repurchased 2.8 million shares of common stock for $241 million.
Net Interest Margin
Net interest margin improved to 18.5% year-over-year.
Provision for Credit Losses
Provision for credit losses was $313 million, an increase of 14% from $274 million.
Reserve Release
The reserve release was - $3 million compared to - $74 million in the prior year.
Reserve Rate
The reserve rate improved 66 basis points year-over-year to 11.23%.
Year-to-Date 2026 Financial Highlights (Compared to Year-to-Date 2025)
Revenue
Total net interest and non-interest income was $2,010 million, up 6% from $1,899 million.
Net Principal Losses
Net principal losses were $647 million, down 9% from $713 million.
Provision for Credit Losses
Provision for credit losses was $616 million, up 8% from $570 million.
Total Non-Interest Expenses
Total non-interest expenses were $955 million, nearly flat compared to $958 million.
Income from Continuing Operations Before Income Taxes
Income from continuing operations before income taxes was $439 million, up 18% from $371 million.
Net Income
Net income was $328 million, up 18% from $276 million.
Net Income Available to Common Stockholders
Net income available to common stockholders was $324 million, up 17% from $276 million.
Adjusted Net Income Available to Common Stockholders
Adjusted net income available to common stockholders was $325 million, up 13% from $288 million.
Pretax Pre-Provision Earnings (PPNR)
PPNR was $1,055 million, up 12% from $941 million.
Adjusted PPNR
Adjusted PPNR was $1,057 million, up 11% from $956 million.
2026 Full Year Outlook
Bread Financial Holdings, Inc. projects average credit card and other loan growth to be up low- to mid-single digits from full year 2025, which is expected to drive a low- to mid-single digit increase in total revenue growth. The company anticipates a 2026 net loss rate in the range of 7.0% to 7.1% and expects to deliver positive operating leverage, excluding the pretax impacts from debt repurchases. The full year normalized effective tax rate is projected to be in the range of 25% to 27%.