Bread Financial reported fourth quarter earnings of $2.07 per share, significantly surpassing the consensus estimate of $0.40. This result represents a fivefold increase over the $0.41 per share earned in the year-ago quarter. Revenues benefited from strong credit card spend growth across both general-purpose and co-brand portfolios, driving double-digit year-over-year net interest income expansion.

Total credit card and other loans ended the quarter at $18.8 billion, up from $17.4 billion a year earlier. Average loans for the quarter were $18.5 billion, a modest 1% year-over-year decline compared with $17.96 billion in Q4 2024. Net principal losses of $336 million yielded a net loss rate of 7.4%, steady with the prior quarter’s level, while the 30-day delinquency rate improved to 5.8% from 5.9% a year ago.

For the full year 2025, Bread Financial delivered consolidated revenue growth of 12%, driven by higher fee income and expanding credit balances. Non-GAAP adjusted operating expenses were controlled at a 5% increase, reflecting disciplined cost management. Return on equity reached 18.2%, up from 12.5% in 2024, as improved credit performance and margin expansion translated into stronger overall profitability.

The Board of Directors has approved a quarterly dividend on common shares of $0.23 per share, payable March 16, 2026, to shareholders of record as of March 2. Additionally, the company declared a $26.35 per share dividend on its Series A 8.625% non-cumulative perpetual preferred stock, maintaining its commitment to returning capital to investors through a balanced dividend policy.