The combination of improving credit trends and accelerating loan growth is a positive signal for earnings power. Monitor the Q3 2026 earnings release for further confirmation of this trajectory and any updated forward guidance on net charge-offs.
Price Chart
Executive Summary
Bread Financial released an August 2026 monthly performance update showing continued improvement in credit quality. The net principal loss rate fell to 6.40% from 7.57% a year ago, and the delinquency rate dropped to 5.36% from 5.84%. Average loan balances grew 5.6% year-over-year, signaling healthy portfolio expansion alongside improving credit metrics.
Key Facts
- Net principal loss rate improved to 6.40% in August 2026 from 7.57% in August 2025.
- Delinquency rate (30+ days) fell to 5.36% from 5.84% year-over-year.
- Average credit card and other loans grew 5.6% YoY to $18.588 billion.
- End-of-period credit card and other loans were $18.730 billion, up from $17.657 billion.
- Net principal losses declined to $101 million from $113 million year-over-year.
Financial Impact
Credit quality improvement of ~117 bps in net principal loss rate and ~48 bps in delinquency rate on a $18.6B loan portfolio
Risk Factors
- Macroeconomic deterioration could reverse credit improvement trends.
- Consumer spending slowdown could pressure loan growth and repayment ability.
Market Snapshot
Investment Themes
Documents Analyzed
This report is based on 5 SEC documents filed with EDGAR.
| Document | Accession Number |
|---|---|
| 8-K Filing (Primary) | 0001101215-26-000084 |
| Document: bfh-20260915.htm | 0001101215-26-000084 |
| Document: 0001101215-26-000084-index-headers.html | 0001101215-26-000084 |
| Document: 0001101215-26-000084-index.html | 0001101215-26-000084 |
| Document: 0001101215-26-000084.txt | 0001101215-26-000084 |
Filters
| Type | Now | ||||
|---|---|---|---|---|---|
Oct 22, 2026 4d ago | 8-K | $102.45 | awaiting T+5 | — | $101.72 (−0.71%) |
Oct 22, 2026 4d ago | 8-K | $102.45 | awaiting T+5 | — | $101.72 (−0.71%) |
Oct 6, 2026 20d ago | Press Release | $97.80 | awaiting T+5 | — | $101.72 (+4.01%) |
Sep 15, 2026 5w 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 14w 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
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