Bread Financial reported fourth-quarter earnings of $2.07 per share, substantially above the consensus estimate of $0.40 and more than quadruple the $0.41 posted in the year-ago period. Revenue growth was driven by increased transaction volumes on both private-label and co-brand credit cards, with total net interest income rising by 22% year-over-year. The company’s tech-forward payment and lending platform processed a record $6.2 billion in purchase volume during the quarter, up from $5.1 billion in Q4 2024. Non-interest income also improved, reflecting higher late-fee collections and growth in fee-based savings deposits.

As of December 31, end-of-period credit card and other loans totaled $18.805 billion, flat with the prior quarter and down 1% from the year-ago level. Average loans for the quarter were $17.961 billion, a 1% decline year-over-year. Net principal losses for the three months ended December 31 reached $336 million, resulting in a net loss rate of 7.4%, unchanged from the prior quarter. Delinquent accounts (30 days+) declined to $971 million from $1.034 billion a year earlier, lowering the delinquency rate to 5.8% from 5.9%. Management attributed the stabilization in credit metrics to disciplined underwriting and early intervention programs.

The board declared a quarterly dividend of $0.23 per share of common stock, payable on March 16, 2026, reflecting a 15% increase from the prior quarter. In addition, the company will pay $26.35 per share on its 8.625% non-cumulative perpetual preferred series, consistent with its target payout ratio. Bread Financial’s CET1 capital ratio remained robust at 12.1% as of year-end, above regulatory requirements and supporting a sustainable dividend policy and selective share repurchases over the next twelve months.