Credit trends are trending in the right direction, with both delinquencies and charge-offs improving. The sequential improvement in September's loss rate relative to the Q3 average suggests the peak of the credit cycle may be behind them. Monitor the Q3 2026 earnings release for full P&L impact and forward guidance.
Price Chart
Executive Summary
Bread Financial released a monthly performance update for September 2026, showing improving credit trends. The delinquency rate fell to 5.57% from 6.04% a year earlier, and the net principal loss rate for the month was 5.99%, down from the Q3 average of 6.40%. The update is a routine FD disclosure with no guidance or earnings data, but the credit quality improvement is a modest positive.
Key Facts
- Delinquency rate (30+ days) improved to 5.57% as of September 30, 2026, from 6.04% a year earlier.
- Net principal loss rate for September 2026 was 5.99%, versus 6.40% for the three months ended September 30, 2026.
- End-of-period credit card and other loans were $18.85 billion as of September 30, 2026.
- Average credit card and other loans grew 6.4% year-over-year for the month of September 2026.
- Net principal losses were $92 million for September 2026 and $300 million for the third quarter.
Financial Impact
Credit quality improvement: delinquency rate down ~47 bps YoY; net principal loss rate for September below the Q3 average by ~41 bps.
Risk Factors
- Macroeconomic uncertainty could reverse credit improvement if consumer stress increases.
- Forward-looking statements caution about inflation, interest rates, and recession risks.
Investment Themes
Documents Analyzed
This report is based on 5 SEC documents filed with EDGAR.
| Document | Accession Number |
|---|---|
| 8-K Filing (Primary) | 0001101215-26-000088 |
| Document: bfh-20261022.htm | 0001101215-26-000088 |
| Document: 0001101215-26-000088-index-headers.html | 0001101215-26-000088 |
| Document: 0001101215-26-000088-index.html | 0001101215-26-000088 |
| Document: 0001101215-26-000088.txt | 0001101215-26-000088 |
Filters
| Type | Now | ||||
|---|---|---|---|---|---|
Oct 22, 2026 5d ago | 8-K | $102.45 | awaiting T+5 | — | $101.72 (−0.71%) |
Oct 22, 2026 5d ago | 8-K | $102.45 | awaiting T+5 | — | $101.72 (−0.71%) |
Oct 6, 2026 21d ago | Press Release | $97.80 | awaiting T+5 | — | $101.72 (+4.01%) |
Sep 15, 2026 6w ago | 8-K | $107.65 $108.53 | ▲ +0.82% | · 0.00% | $101.72 (−5.51%) |
Aug 17, 2026 10w ago | 8-K | $111.25 $105.19 | ▼ −5.45% | ▼ −4.26% | $101.72 (−8.57%) |
Aug 14, 2026 10w ago | Institutional Cluster | $111.25 $105.19 | ▼ −5.45% | ▼ −4.26% | $101.72 (−8.57%) |
Jul 23, 2026 13w ago | 8-K | $103.58 $110.62 | ▲ +6.80% | ▲ +6.32% | $101.72 (−1.80%) |
Jul 23, 2026 13w ago | 8-K | $103.58 $110.62 | ▲ +6.80% | ▲ +6.32% | $101.72 (−1.80%) |
Jul 14, 2026 15w ago | 8-K | $98.49 $99.48 | ▲ +1.01% | ▲ +2.30% | $101.72 (+3.28%) |
May 20, 2026 22w ago | Press Release | $87.46 $88.23 | ▲ +0.88% | ▼ −0.92% | $101.72 (+16.30%) |
US Market Status
Subscribe to SecBot
Get Real-Time SEC Filing Intelligence
Comprehensive SEC filing analysis delivered the moment filings hit EDGAR. Sentiment scoring, impact analysis, and actionable insights for every material event.
Create a free account Live analysis, Telegram alerts, watchlists and the MCP server for subscribers