Bread Financial executives reported that January credit losses and delinquency ratios came in favorably, while loan growth was flat, marking a potential turning point. Management expects February loan growth to seasonally rise toward 8% before normalizing, reflecting typical monthly and day-weighting patterns.

Noninterest expenses totaled $500 million in the fourth quarter and are projected to be slightly lower in the first quarter, excluding debt repurchase costs. CFO Perry Beberman emphasized that adjusted expense comparisons exclude one-time charges to present underlying operating cost trends.

The firm has strengthened its balance sheet through debt paydowns, refinancing high-cost senior notes, and issuing subordinated notes and preferred stock. Bread Financial ended the year with $8.5 billion in direct-to-consumer deposits and aims to have deposits comprise 50% of total funding.

Bread Financial has expanded beyond private-label cards into co-brand, direct-to-consumer and BNPL products across multiple verticals, with top-10 partners secured through 2028. Management is targeting long-term loss rates near 6%, reserve levels around 10%, and low-single-digit loan growth supported by cloud migration and AI enhancements.