Bread Financial Credit Quality Improves as Loan Growth Accelerates
The financial services provider reported a net principal loss rate of 6.98% for the month ended May 31, 2026.
Bread Financial Holdings (BFH), the financial services provider, reported a steady improvement in credit quality and an acceleration in loan growth through the second quarter.
The company saw a consistent decline in risk metrics over the spring of 2026. The net principal loss rate moved from 7.23% in March to 7.09% in April, ending at 6.98% for the month ended May 31. This represented a decrease from the 7.97% loss rate recorded for the same period in 2025.
Asset quality improved across other key indicators. The delinquency rate followed a similar downward trajectory, falling from 5.59% in March to 5.34% in April and reaching 5.24% by May 31. This was down from the 5.71% delinquency rate reported as of May 31, 2025.
Loan volumes grew as credit performance stabilized. Average credit card and other loans grew 2.6% year-over-year for the month ended May 31, 2026. This growth rate accelerated from 2.0% in April and 1.3% in March.
Bread Financial also announced changes to its executive leadership. Valerie Greer, executive vice president and chief commercial officer, announced her retirement effective February 2027.
To fill the vacancy, the company promoted Dennis McCarthy to executive vice president and chief revenue officer, effective September 2026.