- Bread Financial Holdings, Inc (NYSE:BFH) reported first-quarter FY22 revenue (total net interest and non-interest income) growth of 15% year-on-year to $921 million missing the consensus of $936.4 million.
- Higher average loan balances, improved loan yields, and improvement in the cost of funds drove the growth.
- Credit sales increased 14% Y/Y to $6.9 billion as consumer spending remained strong.
- Net interest income rose 18.4% Y/Y to $989 million.
- EPS of $4.21 missed the consensus of $4.41.
- The delinquency rate of 4.1% increased from 3.8% in 1Q21 due to gradual consumer payment rate normalization.
- The net loss rate of 4.8% improved from 5.0% in 1Q21 and remained well below its historical average net loss rate.
- Bread Financial sees total revenue growth for 2022 aligned with average loan growth, with potential upside from improved net interest margin.
- Bread Financial sees full-year 2022 average credit card and other loan growth in the low-double-digit range relative to 2021, up from a high-single to the low-double-digit range.
- Price Action: BFH shares traded higher by 6% at $56.87 on the last check Thursday.
