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SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549


FORM 8-K

CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934

Date of report (Date of earliest event reported):
October 27, 2022

graphic


BREAD FINANCIAL HOLDINGS, INC.
(Exact Name of Registrant as Specified in Charter)


Delaware
 
001-15749
 
31-1429215
(State or Other Jurisdiction
 
(Commission
 
(IRS Employer
of Incorporation)
 
File Number)
 
Identification No.)


3095 LOYALTY CIRCLE
COLUMBUS, Ohio 43219
(Address and Zip Code of Principal Executive Offices)

(614) 729-4000
(Registrant’s Telephone Number, including Area Code)

NOT APPLICABLE
(Former name or former address, if changed since last report)


Check the appropriate box below if the Form 8-K is intended to simultaneously satisfy the filing obligation of the Registrant under any of the following provisions:

☐
  
Written communications pursuant to Rule 425 under the Securities Act
     
☐
  
Soliciting material pursuant to Rule 14a-12 under the Exchange Act
     
☐
  
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act
     
☐
  
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act

 

Securities registered pursuant to Section 12(b) of the Act:

Title of each class
  
Trading symbol
  
Name of each exchange on which registered
Common Stock, par value $0.01 per share
  
BFH
  
NYSE

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

Emerging growth company   ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.    [  ]


Item 2.02 Results of Operations and Financial Condition.

On October 27, 2022, Bread Financial Holdings, Inc. (the “Company”) issued a press release regarding its results of operations for the third quarter ended September 30, 2022 (the “Q3 2022 Earnings Release”).  A copy of the Q3 2022 Earnings Release is furnished as Exhibit 99.1 hereto.


Item 7.01 Regulation FD Disclosure.

In connection with the Q3 2022 Earnings Release, on October 27, 2022, the Company made available an investor presentation that may be used by the Company’s senior management during meetings and calls with analysts, investors and other market participants, a copy of which is furnished as Exhibit 99.2 hereto and is posted on the Company’s website at www.breadfinancial.com on the “Investors” page under “Events & Presentations.” Information on the Company’s website does not constitute a part of this Current Report on Form 8-K.


Item 8.01 Other Events.

On October 27, 2022, the Company issued a press release announcing that the Board of Directors of the Company declared a quarterly cash dividend of $0.21 per share of common stock, payable on December 16, 2022 to stockholders of record at the close of business on November 14, 2022. A copy of the press release announcing the Company‘s quarterly dividend is attached as Exhibit 99.3 hereto.


Item 9.01 Financial Statements and Exhibits.

(d) Exhibits

Exhibit No.
  
Document Description
     
 
Press Release dated October 27, 2022 announcing the Company’s results of operations for the third quarter ended September 30, 2022.
     
 
Investor Presentation dated October 27, 2022.
     
 
Press Release dated October 27, 2022 announcing the Company’s quarterly dividend.
     
104
  
Cover Page Interactive Data File (embedded within the Inline XBRL document).

Note: Except for the information in Item 8.01 hereof (including Exhibit 99.3 hereto), the information contained in this report (including Exhibits 99.1 and 99.2) shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, or otherwise subject to the liabilities of that section, nor shall it be deemed incorporated by reference in any filing under the Securities Act of 1933, as amended, except as expressly set forth by specific reference in such a filing.

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, as amended, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.


 
Bread Financial Holdings, Inc.
       
Date: October 27, 2022
By:
  
/s/ Joseph L. Motes III
     
Joseph L. Motes III
     
Executive Vice President, Chief
Administrative Officer, General
Counsel and Secretary




Exhibit 99.1



 Financial Summary  Third Quarter 2022  Year-to-Date 2022  Net Income   ($ millions)  $134  $357  Earnings per Diluted Share  $2.69  $7.15  Business Highlights   “We are pleased to announce a new long-term   credit card relationship with World Market, a specialty retailer of home furniture, decor, apparel, and international food products. Bread Financial draws on its decades of experience with specialty retailers like World Market to provide best-in-class payment, lending, and loyalty solutions, and expand the options for World Market customers,” said Ralph Andretta, president and chief executive officer of Bread Financial.  “During the third quarter, we also announced a partnership with Marqeta that   will further enable our in-store virtual payment solutions for Bread Financial. The Marqeta-supported product allows customers to provision a one-time-use virtual card, without a mobile app download, to check out in-store at point of sale with Bread Financial’s loan products. Through our   relationship with Marqeta, Bread Pay now   delivers SplitPay and installment loan products both online and in-store.  “We continued to maintain a strong renewal rate as we renewed our relationship with Buckle, a valued brand partner, in the third quarter. Buckle operates over 440 retail stores in 42 states and has grown to become one of America's favorite denim destinations. We remain   committed to providing Buckle’s guests   with lending and loyalty products that meet their evolving needs.  “We successfully completed the AAA portfolio conversion in October, achieving our target of greater than $2 billion in loan balances from new   partner signings in 2022. Now, we are driving engagement   with AAA’s more than 56 million U.S. members through our   enhanced cardholder value propositions.  “We remain focused on driving sustainable, profitable growth leveraging our technology enhancements and business development success,” Andretta noted.  1  Bread Financial Reports Third Quarter 2022 Results     CEO Commentary  “Our third quarter results reflect additional progress toward our 2022 financial targets, with double-digit loan growth and a pretax pre-provision earnings (PPNR) increase of 17% versus the third quarter of 2021. We remain on track to deliver positive operating leverage for the full year while continuing to invest in enhanced technology, digital modernization, and new product innovation. We continue to transform Bread Financial and invest in our future to deliver long-term sustainable value for our stakeholders.  “The ongoing successful execution of our strategy has strengthened our financial resilience as evidenced by the improvement in our capital and funding metrics, as well as enhanced diversification across our products and portfolio. Our improved credit profile supports sustained performance as we move into a more challenging economic environment.  “We are closely monitoring consumer economic indicators, including how consumers are navigating the changing economic environment. Consumer payment behaviors show continued signs of normalization toward pre-pandemic levels. We proactively adjust our underwriting and credit management to account for the challenges inflation and other factors present to consumers. Our seasoned leadership team is experienced in managing through credit cycles, with an emphasis on responsible risk management and proactive recession readiness planning.  “We remain focused on our continued transformation and the investments that position Bread Financial to drive profitable growth through the full economic cycle.”  - Ralph Andretta, president and chief executive officer  COLUMBUS, Ohio, October 27, 2022 – Bread Financial Holdings, Inc.   (NYSE: BFH), a tech-forward financial services company that provides simple, personalized payment, lending, and saving solutions, today announced financial results for the third quarter ended September 30, 2022.  Third quarter net income was $134 million, or $2.69 per diluted share.  Total third quarter revenue was $979 million, up $128 million, or 15%, versus the third quarter of 2021.  Expected normalization of credit metrics continued in the third quarter, with a quarter-end delinquency rate of 5.7% and a net loss rate of 5.0%.  Bread Financial | October 27, 2022 
 
 “We are pleased with our third quarter financial results, which include year-over-year revenue growth of 15%, driven by 14% average loan growth and improved net interest margin. Credit sales growth in the quarter of 4% was impacted by both the transition of our credit card processing services and the temporary spike in fuel prices in July. For the sixth consecutive quarter, PPNR grew year-over-year at a double-digit rate, reflective of the quality growth we are delivering. Retail direct-to-consumer deposit balances exceeded $5 billion in the quarter further improving our cost of funds mix and funding diversification. Third quarter expenses were lower than anticipated as some expenses were shifted to the fourth quarter and we received payment network expense credits that were projected in the fourth quarter.  “Our expectation for the normalization of consumer payment behavior is reflected in our 2022 guidance, and our results this quarter were within the range of our expectations considering temporary impacts from the transition of our credit card processing services. We anticipate delinquency rates to move lower in the fourth quarter driven by improvement in early stage delinquency performance, while losses are expected to be higher in the fourth quarter, which is typically the highest quarter of the year for this metric based on seasonality.   “Additionally, we have maintained conservative economic scenario weightings in our credit reserve modeling as a result of an increasing probability of a recession, more persistent inflation, and the increased cost of overall consumer debt.  “Despite these macroeconomic headwinds, we remain confident in our full year guidance and our long-term outlook. We will continue to act prudently and responsibly in our allocation of capital and will moderate our growth as appropriate as we manage risk-reward tradeoffs to maintain long-term sustainable, profitable growth.”  CFO Commentary  - Perry Beberman, executive vice president and chief financial officer  2022 Full Year CFO Outlook  Macroeconomic Assumptions: “Our outlook continues to assume a moderation in the consumer payment rate throughout the remainder of 2022. We also expect further interest rate increases by the Federal Reserve to result in a nominal benefit to total net interest income, which is factored into our outlook.  Average Loan Growth: “Based on our new and renewed business announcements, visibility into our pipeline, and the current economic outlook, we reiterate our expectation for low-double-digit growth in full year 2022 average credit card and other loans relative to 2021.   Total Revenue: “Total revenue growth for 2022 is anticipated to align with average loan growth, with slight upside from improved full year net interest margin versus 2021.  Total Expenses: “As a result of ongoing investment in technology modernization, digital advancement, marketing, and product innovation, along with strong portfolio growth, we expect a sequential increase in total expenses in the fourth quarter. We remain focused on delivering positive operating leverage for the full year as we manage the pace and timing of our investments to align with our full year revenue and growth outlook.   Net Loss Rate: “We expect a net loss rate at the high end of our previously communicated low-to-mid 5% range for 2022. We remain confident in our long-term guidance of a through-the-cycle average net loss rate below our historical average of 6%.   Effective Tax Rate: “We continue to expect our full year normalized effective tax rate to be in the range of 25% to 26%, with quarter-over-quarter volatility due to the timing of various discrete items.”  2  Bread Financial | October 27, 2022 
 
 +4%  +15%  +17%  +1.9%  +1.1%  Key Operating and Financial Metrics(1)  Credit Metrics   nm – not meaningful  (1) Reflective of the spinoff of Loyalty Ventures Inc. for all periods presented.  (2) Pretax pre-provision earnings (PPNR) is a non-GAAP financial measure. See “Non-GAAP Financial Measures” below.  (3) The 3Q22 Delinquency rate was impacted by the transition of our credit card processing services.   (4) The 3Q22 Net loss rate was impacted by the transition of our credit card processing services. Excluding this impact, which is timing-related, the Net loss rate for the quarter would have been higher.  3  Diluted EPS  Continuing Operations(1)  Quarter Ended  Year-to-Date  September 30,  through September 30,  ($ in millions, except per share amounts)  2022  2021  Change  2022  2021  Change  Total net interest and non-interest income (“Revenue”)  $979   $851   15%  $2,793   $2,416   16%   Net principal losses  $218   $151   44%  $656   $543   21%   Reserve build (release)  $86   $10  nm  $246  $(363)   nm  Provision for credit losses  $304   $161   89%  $902   $180   nm  Total non-interest expenses  $486   $431   13%  $1,383   $1,256   10%  Income from continuing operations before income taxes  $189   $259   (27)%  $508   $980   (48)%  Income from continuing operations  $134   $206   (35)%  $358   $737   (51)%  Income from continuing operations per diluted share  $2.69   $4.11   (35)%  $7.16   $14.74  (51)%  Weighted average shares outstanding – diluted  49.9  50.0  50.0  50.0  **********************************  Pretax pre-provision earnings (PPNR)(2)  $493   $420   17%  $1,410   $1,160   21%  Bread Financial | October 27, 2022  -40%  -35% 
 
 Third Quarter 2022 Compared with Third Quarter 2021 – Continuing Operations  Credit sales increased 4% to $7.7 billion driven by existing partners, as well as new product and brand partner additions.  Average and end-of-period credit card and other loans increased 14% and 16% to $17.6 billion and $18.1 billion, respectively, driven by continued credit sales growth, as well as further moderation in the consumer payment rate.  Revenue increased 15%, or $128 million, resulting from higher average loan balances and improved loan yields. Net interest margin increased 94 basis points year-over-year and 123 basis points sequentially.  Total non-interest expenses increased 13%, or $55 million, as employee compensation and benefit costs increased 20%, or $34 million, information processing and communication expenses increased 39%, or $21 million, as a result of the transition of our credit card processing services, and other expenses decreased 22%, or $16 million, primarily due to decreased legal and other business activity costs.  PPNR, a non-GAAP financial measure, improved by $73 million, or 17%, reflecting sustainable, profitable growth and continued success with our business transformation efforts.  Income from continuing operations decreased $72 million, as the improvement in PPNR was offset by a higher provision for credit losses reflecting both loan growth in the quarter and a higher reserve rate, as well as increased net principal losses.  Delinquency rate of 5.7% increased from 3.8% in 3Q21 and 4.4% in 2Q22; the 3Q22 rate was impacted by the transition of our credit card processing services, and increased as a result of expected consumer payment rate normalization, as well as seasonal trends.  Net loss rate of 5.0% increased from 3.9% in 3Q21, and decreased from 5.6% in 2Q22. The third quarter rate was impacted by the transition of our credit card processing services. Excluding the transition impact, which is timing-related, the net loss rate for the quarter would have been higher.  4  Contacts  Investor Relations: Brian Vereb (Brian.Vereb@breadfinancial.com), 614-528-4516     Media Relations: Shelley Whiddon (Shelley.Whiddon@breadfinancial.com), 214-494-3811   Rachel Stultz (Rachel.Stultz@breadfinancial.com), 614-729-4890  Bread Financial | October 27, 2022 
 
 Forward-Looking Statements  This release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Forward-looking statements give our expectations or forecasts of future events and can generally be identified by the use of words such as "believe," "expect," "anticipate," "estimate," "intend," "project," "plan," "likely," "may," "should" or other words or phrases of similar import. Similarly, statements that describe our business strategy, outlook, objectives, plans, intentions or goals also are forward-looking statements. Examples of forward-looking statements include, but are not limited to, statements we make regarding, and the guidance we give with respect to, our anticipated operating or financial results, future financial performance and outlook, initiation or completion of strategic initiatives, including the ability to realize the intended benefits of the spinoff of our former LoyaltyOne® segment, future dividend declarations, future economic conditions, including, but not limited to, market conditions, persistent inflation, rising interest rates, the increased probability of a recession and related impacts on consumer behavior, future legislative or regulatory actions that could have impact on our business and results of operations, including any such actions that may be taken with respect to late fees, interchange fees, or other charges, developments in the geopolitical environment, including the war in Ukraine, and the ongoing effects of the global COVID-19 pandemic, all of which factors remain difficult to predict.   We believe that our expectations are based on reasonable assumptions. Forward-looking statements, however, are subject to a number of risks and uncertainties that could cause actual results to differ materially from the projections, anticipated results or other expectations expressed in this release, and no assurances can be given that our expectations will prove to have been correct. These risks and uncertainties include, but are not limited to, factors set forth in the Risk Factors section and elsewhere in our Annual Report on Form 10-K for the most recently ended fiscal year, which may be updated in Item 1A of, or elsewhere in, our Quarterly Reports on Form 10-Q filed for periods subsequent to such Form 10-K. Our forward-looking statements speak only as of the date made, and we undertake no obligation, other than as required by applicable law, to update or revise any forward-looking statements, whether as a result of new information, subsequent events, anticipated or unanticipated circumstances or otherwise.  Non-GAAP Financial Measures  We prepare our Consolidated Financial Statements in accordance with accounting principles generally accepted in the United States of America (GAAP). However, certain information included within this presentation, constitutes non-GAAP financial measures. Our calculations of non-GAAP financial measures may differ from the calculations of similarly titled measures by other companies. In particular, Pretax pre-provision earnings (PPNR) is calculated by increasing/decreasing Income from continuing operations before income taxes by the net build/release in Provision for credit losses. We use PPNR as a metric to evaluate our results of operations before income taxes, excluding the volatility that can occur within Provision for credit losses. Tangible common equity over Tangible assets (TCE/TA) represents Total stockholders’ equity reduced by Goodwill and intangible assets, net, (TCE) divided by Tangible assets (TA), which is Total assets reduced by Goodwill and intangible assets, net. We use TCE/TA as a metric to evaluate the Company’s capital adequacy and estimate its ability to cover potential losses. Tangible book value per common share represents TCE divided by shares outstanding. We use Tangible book value per common share as a metric to estimate the Company’s potential value in relation to tangible assets per share. We believe the use of these non-GAAP financial measures provide additional clarity in understanding our results of operations and trends. For a reconciliation of these non-GAAP financial measures to the most directly comparable GAAP measures, please see the Reconciliation of GAAP to Non-GAAP Financial Measures that follows.   Conference Call / Webcast Information  Bread Financial will host a conference call on Thursday, October 27, 2022 at 8:30 a.m. (Eastern Time) to discuss the Company’s third quarter 2022 results. The conference call will be available via the Internet at www.breadfinancial.com. There will be several slides accompanying the webcast. Please go to the website at least 15 minutes prior to the call to register, download and install any necessary software. The recorded webcast will also be available on the Company’s website.  A replay of the conference call will be available two hours after the end of the call until 11:59 p.m. ET on Thursday, October 27, 2022. To access the replay, please dial (866) 813-9403 or (929) 458-6194 and reference conference ID number “656109”.  5  Bread Financial | October 27, 2022 
 
 About Bread Financial™     Bread FinancialTM (NYSE: BFH) is a tech-forward financial services company providing simple, personalized payment, lending and saving solutions. The company creates opportunities for its customers and partners through digitally enabled choices that offer ease, empowerment, financial flexibility and exceptional customer experiences. Driven by a digital-first approach, data insights and white-label technology, Bread Financial delivers growth for its partners through a comprehensive product suite, including private label and co-brand credit cards, installment lending, and buy now, pay later (BNPL). Bread Financial also offers direct-to-consumer solutions that give customers more access, choice and freedom through its branded Bread CashbackTM American Express® Credit Card and Bread SavingsTM products.   Bread Financial is an S&P MidCap 400 company headquartered in Columbus, Ohio, and committed to sustainable business practices powered by its 6,000+ global associates. To learn more about Bread Financial, visit BreadFinancial.com or follow us on Facebook, LinkedIn, Twitter and Instagram.  6  Bread Financial | October 27, 2022 
 
 BREAD FINANCIAL HOLDINGS, INC.  UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF INCOME  (In millions, except per share amounts)  * Pretax pre-provision earnings (PPNR) is a non-GAAP financial measure.  7  Bread Financial | October 27, 2022      Three Months Ended September 30,  Nine Months Ended September 30,      2022     2021  2022     2021  Interest income:              Interest and fees on loans   $ 1,195    $ 992    $ 3,325    $ 2,845   Interest on cash and investment securities   23    2    34    6   Total interest income   1,218    994    3,359    2,851   Interest expense:              Interest on deposits   66    39    142    130   Interest on borrowings   67    52    166    168   Total interest expense   133    91    308    298   Net interest income   1,085    903    3,051    2,553   Non-interest income:  Interchange revenue, net of retailer share arrangements   (136)   (97)   (333)   (251)  Other   30    45    75    114   Total non-interest income   (106)   (52)   (258)   (137)  Total net interest and non-interest income   979    851    2,793    2,416   Provision for credit losses   304    161    902    180   Total net interest and non-interest income, after provision for credit losses   675    690    1,891    2,236   Non-interest expenses:              Employee compensation and benefits   202    168    572    489   Card and processing expenses   82    81    248    242   Information processing and communication   75    54    192    161   Marketing expense   44    35    124    113   Depreciation and amortization   29    23    80    70   Other   54    70    167    181   Total non-interest expenses   486    431    1,383    1,256   Income from continuing operations before income taxes   189    259    508    980   Provision for income taxes   55    53    150    243   Income from continuing operations   134    206    358    737   (Loss) income from discontinued operations, net of taxes    -    18    (1)   46   Net income   $ 134    $ 224    $ 357    $ 783               Basic earnings per share:  Income from continuing operations   $ 2.69    $ 4.14    $ 7.17    $ 14.81   (Loss) income from discontinued operations   -    0.36    (0.01)   0.94   Net income per share   $ 2.69    $ 4.50    $ 7.16    $ 15.75               Diluted earnings per share:  Income from continuing operations   $ 2.69    $ 4.11    $ 7.16    $ 14.74   (Loss) income from discontinued operations   -    0.36    (0.01)   0.94   Net income per diluted share   $ 2.69    $ 4.47    $ 7.15    $ 15.68               Weighted average shares:  Basic   49.8    49.8    49.9    49.7   Diluted   49.9    50.0    50.0    50.0               Pre-tax pre-provision earnings*:  Income from continuing operations before income taxes   $ 189    $ 259    $ 508    $ 980   Provision for credit losses   304    161    902    180   Pre-tax pre-provision earnings   $ 493    $ 420    $ 1,410    $ 1,160  
 
 BREAD FINANCIAL HOLDINGS, INC.  UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS  (In millions)  8  Bread Financial | October 27, 2022  September 30,  December 31,   2022  2021  Assets        Cash and cash equivalents    $ 3,583    $ 3,046   Credit card and other loans:   Credit card and other loans    18,126    17,399   Allowance for credit losses    (2,073)   (1,832)  Credit card and other loans, net    16,053    15,567   Available-for-sale securities   218    239   Property and equipment, net   204    215   Goodwill and intangible assets, net    690    687   Other assets    1,212    1,992   Total assets    $ 21,960    $ 21,746         Liabilities and Stockholders’ Equity  Deposits    $ 12,444    $ 11,027   Debt issued by consolidated variable interest entities   4,015    5,453   Long-term and other debt    1,916    1,986   Other liabilities    1,186    1,194   Total liabilities    19,561    19,660   Stockholders’ equity    2,399    2,086   Total liabilities and stockholders’ equity    $ 21,960    $ 21,746         Shares of common stock outstanding  49.8  49.8 
 
        Nine Months Ended  September 30,            2022        2021                  Cash Flows from Operating Activities:     Net income     $  357        $  783  Adjustments to reconcile net income to net cash provided by operating activities:     Provision for credit losses        902           180  Depreciation and amortization  80  97  Deferred income taxes  (137)  20  Non-cash stock compensation  24  25  Amortization of deferred financing costs        18           23     Amortization of deferred origination costs        64           54     Change in other operating assets and liabilities:           Change in other assets  (25)  (89)  Change in other liabilities  11  115  Other        57           —     Net cash provided by operating activities        1,351           1,208           Cash Flows from Investing Activities:     Change in credit card and other loans        (1,171)           88     Change in redemption settlement assets        —           (47)     Proceeds from sale of credit card portfolio  —  512  Purchase of credit card portfolios  (249)  (99)  Capital expenditures        (53)           (59)     Purchase of investment securities        (35)           (77)     Maturities of investment securities        25           61     Other        (5)           2     Net cash (used in) provided by investing activities        (1,488)           381           Cash Flows from Financing Activities:     Unsecured borrowings under debt agreements        218           38     Repayments/maturities of unsecured borrowings under debt agreements        (294)           (114)     Debt issued by consolidated variable interest entities        1,723           2,768     Repayments/maturities of debt issued by consolidated variable interest entities        (3,162)           (3,891)     Net increase in deposits        1,395           88     Payment of deferred financing costs  (10)  (13)  Dividends paid        (32)           (31)     Repurchase of common stock        (12)           —     Other        (4)           (2)     Net cash used in financing activities        (178)           (1,157)           Effect of exchange rate changes on cash, cash equivalents and restricted cash        —           (4)     Change in cash, cash equivalents and restricted cash        (315)           428     Cash, cash equivalents and restricted cash at beginning of period        3,923           3,463     Cash, cash equivalents and restricted cash at end of period     $  3,608        $  3,891                                      Note: The unaudited Condensed Consolidated Statements of Cash Flows are presented reflecting the combined cash flows from continuing and discontinued operations.  BREAD FINANCIAL HOLDINGS, INC.  UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS  (In millions)  9  Bread Financial | October 27, 2022 
 
 BREAD FINANCIAL HOLDINGS, INC.  UNAUDITED SUMMARY FINANCIAL HIGHLIGHTS  (In millions, except per share amounts and percentages)  10  (1) Return on average assets represents annualized Income from continuing operations divided by average Total assets.  (2) Return on average equity represents annualized Income from continuing operations divided by average Total stockholders’ equity.  (3) Net interest margin represents annualized Net interest income divided by average Total interest-earning assets.  (4) Loan yield represents annualized Interest and fees on loans divided by Average credit card and other loans.  (5) Efficiency ratio represents Total non-interest expenses divided by Total net interest and non-interest income.  (6) Tangible common equity (TCE) represents Total stockholders’ equity reduced by Goodwill and intangible assets, net. Tangible assets (TA) represents Total assets reduced by Goodwill and intangible assets, net. TCE/TA is a non-GAAP financial measure.  (7) Tangible book value per common share represents TCE divided by shares outstanding, and is a non-GAAP financial measure.  (8) The 3Q22 Delinquency rate was impacted by the transition of our credit card processing services.   (9) The 3Q22 Net loss rate was impacted by the transition of our credit card processing services. Excluding this impact, which is timing-related, the Net loss rate for the quarter would have been higher.  Bread Financial | October 27, 2022  Three Months Ended September 30,  Nine Months Ended September 30,  2022  2021  Change  2022  2021  Change                    Credit sales   $ 7,689    $ 7,380   4%   $ 22,716    $ 20,825   9%  Average credit card and other loans   $ 17,598    $ 15,471   14%   $ 17,084    $ 15,512   10%  End-of-period credit card and other loans   $ 18,126    $ 15,690   16%   $ 18,126    $ 15,690   16%  End-of-period direct-to-consumer deposits   $ 5,176    $ 3,052   70%   $ 5,176    $ 3,052   70%  Return on average assets(1)  2.4%  3.7%  (1.3)%  2.2%  4.5%  (2.3)%  Return on average equity(2)  22.8%  38.0%  (15.2)%  20.9%  52.2%  (31.3)%  Net interest margin(3)  19.9%  18.9%  1.0%  19.3%  18.0%  1.3%  Loan yield(4)  27.2%  25.6%  1.6%  25.9%  24.5%  1.4%  Efficiency ratio(5)  49.7%  50.6%  (0.9)%  49.6%  52.0%  (2.4)%  Tangible common equity / tangible assets ratio (TCE/TA)(6)  8.0%  7.2%  0.8%  8.0%  7.2%  0.8%  Tangible book value per common share(7)   $ 34.30   $ 31.18   10.0%   $ 34.30    $ 31.18   10.0%  Cash dividend per common share   $ 0.21    $ 0.21   0.0%   $ 0.63    $ 0.63   0.0%  Delinquency rate(8)  5.7%  3.8%  1.9%  5.7%  3.8%  1.9%  Net loss rate(9)  5.0%  3.9%  1.1%  5.1%  4.7%  0.4%  Reserve rate  11.4%  10.5%  0.9%  11.4%  10.5%  0.9% 
 
 BREAD FINANCIAL HOLDINGS, INC.  RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES  (In millions, except percentages)  11  Bread Financial | October 27, 2022  Three Months Ended September 30,   Nine Months Ended September 30,   2022     2021     % Change  2022     2021     % Change  (Millions, except percentages)  Pretax pre-provision earnings (PPNR)  Income from continuing operations before income taxes   189    259   (27)%   508    980   (48)%  Provision for credit losses   304    161   89%   902    180   400%  Pretax pre-provision earnings (PPNR)   493    420   17%   1,410    1,160   21%  Tangible common equity (TCE)  Total stockholders' equity   2,399    2,246   7%   2,399    2,246   7%  Less: Goodwill and intangible assets, net   (690)   (694)  (1)%   (690)   (694)  (1)%  Tangible common equity (TCE)   1,709    1,552   10%   1,709    1,552   10%  Tangible assets (TA)  Total assets   21,960    22,257   (1)%   21,960    22,257   (1)%  Less: Goodwill and intangible assets, net   (690)   (694)  (1)%   (690)  (694)  (1)%  Tangible assets (TA)   21,270    21,563   (1)%   21,270    21,563   (1)% 
 

Exhibit 99.2

 Bread FinancialThird Quarter 2022 Results  ©2022 Bread Financial | Confidential & Proprietary  1  Ralph Andretta  President & CEO  Perry Beberman  EVP & CFO  October 27, 2022 
 
 Forward-Looking Statements  This release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Forward-looking statements give our expectations or forecasts of future events and can generally be identified by the use of words such as "believe," "expect," "anticipate," "estimate," "intend," "project," "plan," "likely," "may," "should" or other words or phrases of similar import. Similarly, statements that describe our business strategy, outlook, objectives, plans, intentions or goals also are forward-looking statements. Examples of forward-looking statements include, but are not limited to, statements we make regarding, and the guidance we give with respect to, our anticipated operating or financial results, future financial performance and outlook, initiation or completion of strategic initiatives, including the ability to realize the intended benefits of the spinoff of our former LoyaltyOne® segment, future dividend declarations, future economic conditions, including, but not limited to, market conditions, persistent inflation, rising interest rates, the increased probability of a recession and related impacts on consumer behavior, future legislative or regulatory actions that could have impact on our business and results of operations, including any such actions that may be taken with respect to late fees, interchange fees, or other charges, developments in the geopolitical environment, including the war in Ukraine, and the ongoing effects of the global COVID-19 pandemic, all of which factors remain difficult to predict.   We believe that our expectations are based on reasonable assumptions. Forward-looking statements, however, are subject to a number of risks and uncertainties that could cause actual results to differ materially from the projections, anticipated results or other expectations expressed in this release, and no assurances can be given that our expectations will prove to have been correct. These risks and uncertainties include, but are not limited to, factors set forth in the Risk Factors section and elsewhere in our Annual Report on Form 10-K for the most recently ended fiscal year, which may be updated in Item 1A of, or elsewhere in, our Quarterly Reports on Form 10-Q filed for periods subsequent to such Form 10-K. Our forward-looking statements speak only as of the date made, and we undertake no obligation, other than as required by applicable law, to update or revise any forward-looking statements, whether as a result of new information, subsequent events, anticipated or unanticipated circumstances or otherwise.  Non-GAAP Financial Measures  We prepare our Consolidated Financial Statements in accordance with accounting principles generally accepted in the United States of America (GAAP). However, certain information included within this presentation, constitutes non-GAAP financial measures. Our calculations of non-GAAP financial measures may differ from the calculations of similarly titled measures by other companies. In particular, Pretax pre-provision earnings (PPNR) is calculated by increasing/decreasing Income from continuing operations before income taxes by the net build/release in Provision for credit losses. We use PPNR as a metric to evaluate our results of operations before income taxes, excluding the volatility that can occur within Provision for credit losses. Tangible common equity over Tangible assets (TCE/TA) represents Total stockholders’ equity reduced by Goodwill and intangible assets, net, (TCE) divided by Tangible assets (TA), which is Total assets reduced by Goodwill and intangible assets, net. We use TCE/TA as a metric to evaluate the Company’s capital adequacy and estimate its ability to cover potential losses. Tangible book value per common share represents TCE divided by shares outstanding. We use Tangible book value per common share as a metric to estimate the Company’s potential value in relation to tangible assets per share. We believe the use of these non-GAAP financial measures provide additional clarity in understanding our results of operations and trends. For a reconciliation of these non-GAAP financial measures to the most directly comparable GAAP measures, please see the Reconciliation of GAAP to Non-GAAP Financial Measures that follows.   ©2022 Bread Financial  2 
 
 Remain focused on driving sustainable, profitable growth  Advanced technology modernization to further operating efficiencies and innovation  Seasoned financial services industry executive leadership with successful history of managing through full economic cycles  Improved financial resilience provides increased confidence in our outlook  ©2022 Bread Financial | Confidential & Proprietary  3  Key Highlights  ©2022 Bread Financial  3  Quality growth with strong core performance trends   Growth continues to accelerate as average and end-of-period loans increased 14% and 16%, respectively, versus 3Q21  Revenue growth of 15% and improved Net interest margin   Pretax pre-provision earnings* up 17% versus 3Q21; 6th consecutive quarter up double-digits  Improved funding mix with retail deposit growth of 70% versus 3Q21 and 24% versus 2Q22   Robust business development activity and pipeline  * Pretax pre-provision earnings is a non-GAAP financial measure. See the Reconciliation of GAAP to Non-GAAP Financial Measures that follows. 
 
 ©2022 Bread Financial  Business Development Highlights  New & Renewed Brand Partners  Select New Bread Pay Partners  4  Enables virtual card for a frictionless consumer and merchant experience  Sales finance lending platform providing distribution in diversified verticals  125+ integrated merchants  New Innovative Bread Pay In-Store Technology Solutions 
 
 Third Quarter 2022 Financial Highlights  5  Credit sales of $7.7 billion up 4% in 3Q22 versus 3Q21  Third quarter average loans of $17.6 billion were up 14% versus 3Q21  Revenue increased 15% versus 3Q21, while total non-interest expenses increased 13%  Income from continuing operations of $134 million was down 35% versus 3Q21, as PPNR growth was more than offset by higher provision for credit losses in 3Q22  Credit performance metrics continued to normalize, as expected  $979 million  Revenue  $134 million  Net Income  $2.69  Diluted EPS  5  ©2022 Bread Financial 
 
 Financial Results – Continuing Operations  nm – not meaningful  6  ©2022 Bread Financial  ($ in millions, except per share)  3Q22  3Q21  $ Chg  % Chg  YTD ‘22  YTD ’21  $ Chg  %Chg   Total interest income  $1,218  $994  $224  23  %  $3,359  $2,851   $508  18  %   Total interest expense  133  91  42  47  308  298  10  3  Net interest income  1,085  903  182  20  3,051  2,553  498  20   Total non-interest income  (106)  (52)  (54)  103  (258)  (137)  (121)  90  Revenue  979  851  128  15  2,793  2,416  377  16   Net principal losses  218   151   67  44  656  543  113  21   Reserve build (release)  86  10   76  nm  246  (363)  609  nm   Provision for credit losses  304  161  143  89  902  180  722  nm   Total non-interest expenses  486  431  55  13  1,383  1,256  127  10  Income before income taxes  189  259  (70)  (27)  508  980  (472)  (48)   Provision for income taxes  55  53  2  2  150  243  (93)  (39)  Net income  $134  $206  (72)  (35)  %  $358  $737  $(379)  (51)  %   Net income per diluted share  $2.69  $4.11  $(1.42)  (35)  %  $7.16  $14.74  $(7.58)  (51)  %   Weighted avg. shares outstanding – diluted  49.9  50.0  50.0  50.0  Pretax pre-provision earnings (PPNR)*  $493  $420  $73  17  %  $1,410  $1,160  $250  21  %  $ in millions  +17%  +21%  * Pretax pre-provision earnings is a non-GAAP financial measure. See the Reconciliation of GAAP to Non-GAAP Financial Measures that follows. 
 
 Net Interest Margin  Average interest-bearing liabilities   ($ in billions)  Loan yield Avg. earning asset yield Net interest margin   Cost of total interest-bearing liabilities Cost of deposits  Average interest-earning assets   ($ in billions)  7  ©2022 Bread Financial 
 
 Credit Quality and Allowance  Reserve Rates   ($ in millions)  Net Loss Rates  Delinquency Rates  5 year Max rate: 7.6%  5 year Min rate: 3.9%  5 year Avg rate: ~6%  Revolving Credit Risk Distribution  (Vantage score)  5 year Max rate: 6.0%  5 year Avg rate: ~5%  5 year Min rate: 3.3%  8  ©2022 Bread Financial  The 3Q22 Delinquency rate was impacted by the transition of our credit card processing services.   The 2Q22 Net loss rate includes a 30 basis point increase from the effects of the purchase of previously written-off accounts that were sold to a third-party debt collection agency.  The 3Q22 Net loss rate was impacted by the transition of our credit card processing services. Excluding this impact, which is timing-related, the Net loss rate for the quarter would have been higher.  Calculated as the percentage of the Allowance for credit losses to end-of-period Credit card and other loans.  (2)  (3)  (4)  (1) 
 
 2022 Financial Outlook  Full Year 2021  Actuals  Full Year 2022  Outlook  Commentary  Average loans   $15,656 million  Up low   double digits  Continued sales growth and net partner additions driving sustainable, profitable growth  Expect the year-end loan balance to be between $21 and $22 billion as a result of successful new business development activities in 2022  Revenue  $3,272 million  Aligned with loan growth  Net interest income growth is expected to be favorable to full year average loan growth year-over-year, with a nominal benefit from continued Federal Reserve interest rate increases  Non-interest income year-over-year change is expected to partially offset the favorability in Net interest income  Total non-interest expenses  $1,684 million  Positive operating leverage  Includes a planned incremental strategic investment of more than $125 million in technology modernization, digital advancement, marketing, and product innovation driving future growth and efficiencies  We expect expenses will increase sequentially each quarter throughout 2022  We will manage the pace of investments to align with our full year revenue & growth outlook  Net loss rate  4.6%  Low-to-mid   5% range  Anticipate the full year net loss rate to be at the high end of our range  Expect credit metrics to normalize in 2022 off of historically low rates, yet remain below our historical through-the-cycle average of approximately 6.0% for the full year  9  ©2022 Bread Financial 
 
 Strengthened Financial Resilience  Transforming our Company to deliver sustainable, profitable growth with an expectation to outperform historic loss levels  10  Enhanced credit risk management and underlying credit distribution   Improved balance sheet strength and funding mix  ©2022 Bread Financial  Strong corporategovernance  Prudent balance sheetmanagement  Disciplined expense management  Proactive risk management  Loan loss reserve materially higher  Capital ratios significantly improved  Increased mix of retail deposits  Diversification across products and partners  Prudent and proactive line management  Active recession readiness playbook  Enhanced core capabilities  Credit mix shift to higher quality  Well-established risk appetite metrics  Reduced debt levels 
 
 Appendix  ©2022 Bread Financial | Confidential & Proprietary  11 
 
 Average Loans and Credit Sales  ($ in billions)  12  ©2022 Bread Financial 
 
 Total Non-Interest Expenses  $ in millions  +10%  Total non-interest expenses were up 13% versus 3Q21  Employee compensation and benefit costs increased 20%, primarily driven by increased salaries, continued digital and technology modernization-related hiring, incentive compensation, and higher volume-related staffing levels  Information processing and communication expenses increased as a result of our transition of credit card processing services  Other expenses decreased primarily due to decreased legal and other business activity costs  -2%  2%  20%  39%  24%  29%  (22)%  13  ©2022 Bread Financial  +13%  -1% 
 
 Capital and Liquidity  Banks Combined Capital Ratios  3Q20  4Q20  1Q21  2Q21  3Q21  4Q21  1Q22  2Q22  3Q22  Common equity tier 1 capital ratio(2)  18.8%  18.4%  21.0%  22.1%  22.6%  20.0%  20.8%  20.1%  21.4%  Tier 1 capital ratio(3)  18.8%  18.4%  21.0%  22.1%  22.6%  20.0%  20.8%  20.1%  21.4%  Total risk-based capital ratio(4)  20.1%  19.7%  22.3%  23.4%  23.9%  21.3%  22.1%  21.5%  22.8%  Tier 1 leverage capital ratio(5)  16.1%  17.1%  17.8%  19.2%  19.5%  18.6%  18.2%  17.7%  18.0%  Parent Level:  Liquidity as of September 30, 2022, of $0.9 billion, consisting of cash on hand plus revolver capacity  Bank Level (Banks Combined):  As of September 30, 2022, the banks finished the quarter with $3.5 billion in cash on hand and $3.5 billion in equity  Total risk based capital ratio at 22.8% - over double the 10% threshold to be considered well-capitalized; CET1 at 21.4%  Funding in place for expected growth outlook – with continued long-term strategic focus on retail deposit growth  (1) Tangible common equity (TCE) represents Total stockholders’ equity reduced by Goodwill and intangible assets, net. Tangible assets (TA) represents Total assets reduced by Goodwill and intangible assets, net. TCE/TA is a non-GAAP financial measure.  (2) The Common equity tier 1 capital ratio represents common equity tier 1 capital divided by total risk-weighted assets.  (3) The Tier 1 capital ratio represents tier 1 capital divided by total risk-weighted assets.  (4) The Total risk-based capital ratio represents total capital divided by total risk-weighted assets.   (5) The Tier 1 leverage capital ratio represents tier 1 capital divided by total average assets, after certain adjustments.  14  Tangible Common Equity/Tangible Assets Ratio(1)  Support Profitable Growth & Growth Investments  Efficient Return of Capital to Shareholders  Improve Capital Metrics  Capital Priorities  ©2022 Bread Financial 
 
 Summary Financial HighlightsContinuing Operations  15  ©2022 Bread Financial  ($ in millions)  3Q22  3Q21  3Q22 vs  2Q22  2Q22 vs  YTD ’22  YTD ’21  YTD ’22 vs  3Q21  1Q22  YTD ’21  Credit sales  $7,689  $7,380  4%  $8,140  (6)%  $22,716  $20,825  9%  Average credit card and other loans  $17,598  $15,471  14%  $17,003  3%  $17,084  $15,512  10%  End-of-period credit card and other loans  $18,126  $15,690  16%  $17,769  2%  $18,126  $15,690  16%  End-of-period direct-to-consumer deposits  $5,176  $3,052  70%  $4,191  24%  $5,176  $3,052  70%  Return on average assets(1)  2.4%  3.7%  (1.3)%  0.2%  2.2%  2.2%  4.5%  (2.3)%  Return on average equity(2)  22.8%  38.0%  (15.2)%  2.2%  20.6%  20.9%  52.2%  (31.3)%  Net interest margin(3)  19.9%  18.9%  1.0%  18.6%  1.3%  19.3%  18.0%  1.3%  Loan yield(4)  27.2%  25.6%  1.6%  25.0%  2.2%  25.9%  24.5%  1.4%  Efficiency ratio(5)  49.7%  50.6%  (0.9)%  52.9%  (3.2)%  49.6%  52.0%  (2.4)%  Tangible common equity / tangible assets ratio (TCE/TA)(6)  8.0%  7.2%  0.8%  7.5%  0.5%  8.0%  7.2%  0.8%  Tangible book value per common share(7)  $34.30  $31.18  10.0%  $31.75  8.0%  $34.30  $31.18  10.0%  Cash dividend declared per common share  $0.21  $0.21  —%  $0.21  —%  $0.63  $0.63  —%  30+ day delinquency rate  5.7%  3.8%  1.9%  4.4%  1.3%  5.7%  3.8%  1.9%  Net loss rate  5.0%  3.9%  1.1%  5.6%  (0.6)%  5.1%  4.7%  0.4%  Reserve rate  11.4%  10.5%  0.9%  11.2%  0.2%  11.4%  10.5%  0.9%  (1) Return on average assets represents annualized Income from continuing operations divided by average Total assets.  (2) Return on average equity represents annualized Income from continuing operations divided by average Total stockholders’ equity.  (3) Net interest margin represents annualized Net interest income divided by average Total interest-earning assets.  (4) Loan yield represents annualized Interest and fees on loans divided by Average credit card and other loans.  (5) Efficiency ratio represents Total non-interest expenses divided by Total net interest and non-interest income.  (6) Tangible common equity (TCE) represents Total stockholders’ equity reduced by Goodwill and intangible assets, net. Tangible assets (TA) represents Total assets reduced by Goodwill and intangible assets, net. TCE/TA is a non-GAAP financial measure.  (7) Tangible book value per common share represents TCE divided by shares outstanding, and is a non-GAAP financial measure. 
 
 Summary Financial HighlightsContinuing Operations  ($ in millions)  3Q20  4Q20  1Q21  2Q21  3Q21  4Q21  1Q22  2Q22  3Q22  YTD ‘21  YTD ’22  Credit sales  $6,152  $7,657  $6,043  $7,401  $7,380  $8,778  $6,887  $8,140  $7,689  $20,825  $22,716   Year-over-year change  (21)%  (18)%  (1)%  54%  20%  15%  14%  10%  4%  22%  9%  Average credit card and other loans  $15,300  $15,759  $15,785  $15,282  $15,471  $16,086  $16,650  $17,003  $17,598  $15,512  $17,084   Year-over-year change  (12)%  (13)%  (14)%  (5)%  1%  2%  5%  11%  14%  (6)%  10%  End-of-period credit card and other loans  $15,599  $16,784  $15,537  $15,724  $15,690  $17,399  $16,843  $17,769  $18,126  $15,690  $18,126   Year-over-year change  (13)%  (14)%  (12)%  (1)%  1%  4%  8%  13%  16%  1%  16%  End-of-period direct-to-consumer deposits  $1,707  $1,700  $2,152  $2,398  $3,052  $3,180  $3,561  $4,191  $5,176  $3,052  $5,176   Year-over-year change  57%  46%  81%  30%  79%  87%  66%  75%  70%  79%  70%  Return on average assets(1)  2.1%  1.4%  4.9%  4.8%  3.7%  1.1%  4.0%  0.2%  2.4%  4.5%  2.2%  Return on average equity(2)  37.2%  21.3%  66.3%  56.4%  38.0%  11.1%  38.5%  2.2%  22.8%  52.2%  20.9%  Net interest margin(3)  16.1%  17.8%  17.7%  17.3%  18.9%  18.8%  19.4%  18.6%  19.9%  18.0%  19.3%  Loan yield(4)  23.9%  24.1%  23.8%  23.9%  25.6%  25.2%  25.6%  25.0%  27.2%  24.5%  25.9%  Efficiency ratio(5)  51.0%  63.4%  50.1%  55.5%  50.6%  50.0%  46.2%  52.9%  49.7%  52.0%  49.6%  Tangible common equity / Tangible assets ratio (TCE/TA)(6)  4.7%  3.7%  5.2%  6.4%  7.2%  6.6%  7.8%  7.5%  8.0%  7.2%  8.0%  Tangible book value per common share(7)  $20.68  $16.34  $21.32  $27.12  $31.18  $28.09  $31.87  $31.75  $34.30  $31.18  $34.30  Cash dividend declared per common share  $0.21  $0.21  $0.21  $0.21  $0.21  $0.21  $0.21  $0.21  $0.21  $0.63  $0.63  30+ day delinquency rate  4.7%  4.4%  3.8%  3.3%  3.8%  3.9%  4.1%  4.4%  5.7%  3.8%  5.7%  Net loss rate  5.8%  6.0%  5.0%  5.1%  3.9%  4.4%  4.8%  5.6%  5.0%  4.7%  5.1%  Reserve rate  13.3%  12.0%  11.9%  10.4%  10.5%  10.5%  10.8%  11.2%  11.4%  10.5%  11.4%  16  ©2022 Bread Financial  (1) Return on average assets represents annualized Income from continuing operations divided by average Total assets.  (2) Return on average equity represents annualized Income from continuing operations divided by average Total stockholders’ equity.  (3) Net interest margin represents annualized Net interest income divided by average Total interest-earning assets.  (4) Loan yield represents annualized Interest and fees on loans divided by Average credit card and other loans.  (5) Efficiency ratio represents Total non-interest expenses divided by Total net interest and non-interest income.  (6) Tangible common equity (TCE) represents Total stockholders’ equity reduced by Goodwill and intangible assets, net. Tangible assets (TA) represents Total assets reduced by Goodwill and intangible assets, net. TCE/TA is a non-GAAP financial measure.  (7) Tangible book value per common share represents TCE divided by shares outstanding, and is a non-GAAP financial measure. 
 
 Financial ResultsContinuing Operations  ($ in millions, except per share)  3Q20  4Q20  1Q21  2Q21  3Q21  4Q21  1Q22  2Q22  3Q22  YTD ’21  YTD ‘22   Total interest income  $915  $950  $942  $915  $994  $1,017  $1,068  $1,073  $1,218  $2,851   $3,359   Total interest expense  114  112  107  100  91  84  79  95  133  298  308  Net interest income  801  838  835  815  903  933  989  978  1,085  2,553  3,051   Total non-interest income  (47)  (69)  (33)  (51)  (52)  (78)  (68)  (85)  (106)  (137)  (258)  Revenue  754  769  802  764  851  855  921  893  979  2,416  2,793   Net principal losses   223    235    198    194    152    176   199  238  218  544  656   Reserve build (release)  (16)  (82)  (165)  (208)  9   187  (6)  166  86  (364)  246   Provision for credit losses  207  153  33  (14)  161  363  193  404  304  180  902   Total non-interest expenses  385  487  402  424  431  427  426  473  486  1,256  1,383  Income before income taxes  162  129  367  354  259  65  302  16  189  980  508   Provision for income taxes  47  55  99  91  53  4  91  4  55  243  150  Net income  $115  $74  $268  $263  $206  $61  $211  $12  $134  $737  $358   Net income per diluted share  $2.41  $1.54  $5.38  $5.25  $4.11  $1.21  $4.21  $0.25  $2.69  $14.74  $7.16   Weighted average shares outstanding – diluted   47.8  48.4  49.8  50.0  50.0  50.0  50.0  49.9  49.9  50.0  50.0  Pretax pre-provision earnings (PPNR)*  $369  $282  $400  $340  $420  $428  $495  $420  $493  $1,160  $1,410  17  ©2022 Bread Financial  * Pretax pre-provision earnings is a non-GAAP financial measure. See the Reconciliation of GAAP to Non-GAAP Financial Measures that follows. 
 
 Net Interest Margin  3Q22  YTD 2022  ($ in millions)  Average Balance  Interest Income / Expense  Average Yield / Rate  Average Balance  Interest Income / Expense  Average Yield / Rate   Cash and investment securities  $4,235  $23  2.2%  $4,001  $34  1.1%   Credit card and other loans  17,598  1,195  27.2%  17,084  3,325  25.9%  Total interest-earning assets  21,833  1,218  22.3%  21,085  3,359  21.2%   Direct-to-consumer deposits (retail)  4,850  25  2.0%  3,998  42  1.4%   Wholesale deposits  7,001  41  2.4%  7,172  100  1.9%  Interest-bearing deposits  11,851  66  2.2%  11,170  142  1.7%   Secured borrowings  4,970  40  3.2%  5,098  88  2.3%   Unsecured borrowings  1,953  27  5.6%  1,978  78  5.2%  Interest-bearing borrowings  6,923  67  3.9%  7,076  166  3.1%  Total interest-bearing liabilities  $18,774  $133  2.8%  $18,246  $308  2.2%  Net Interest Income  $1,085  $3,051  Net interest margin*  19.9%  19.3%  * Net interest margin represents annualized Net interest income divided by average Total interest-earning assets.   18  ©2022 Bread Financial 
 
    Financial Results  ($ in millions, except per share amounts)  3Q22  3Q21  $ Chg  % Chg  YTD ’22  YTD ’21  $ Chg  % Chg  Income from continuing operations, net of taxes  $134  $206  $(72)  (35)  %  $358  $737  $(379)  (51)  %  (Loss) income from discontinued operations, net of taxes  0  18  (18)  nm  (1)  46  (47)  nm  Net income  $134  $224  $(90)  (40)  %  $357  $783  $(426)  (54)  %  Net income per diluted share from continuing ops  $2.69  $4.11  $(1.42)  (35)  %  $7.16  $14.74  $(7.58)  (51)  %  Net (loss) income per diluted share from discontinued ops  0.00  0.36  (0.36)  nm  (0.01)  0.94  (0.95)  nm  Net income per diluted share  $2.69  $4.47  $(1.78)  (40)  %  $7.15  $15.68  $(8.53)  (54)  %  Weighted average shares outstanding – diluted (in millions)  49.9  50.0  50.0  50.0  19           ©2022 Bread Financial  nm – not meaningful 
 
 Reconciliation of GAAP to Non-GAAP Financial Measures  20  ©2022 Bread Financial  ($ in millions)  3Q20  4Q20  1Q21  2Q21  3Q21  4Q21  1Q22  2Q22  3Q22  YTD ’21  YTD ‘22  Pretax pre-provision earnings (PPNR)   Income before income taxes  $162  $129  $367  $354  $259  $65  $302  $16  $189  $980  $508   Provision for credit losses  207  153  33  (14)  161  363  193  404  304  180  902  Pretax pre-provision earnings (PPNR)  $369  $282  $400  $340  $420  $428  $495  $420  $493  $1,160  $1,410  Tangible common equity (TCE)   Total stockholders’ equity   $1,323    $1,522    $1,764    $2,048    $2,246    $2,086    $2,268    $2,275    $2,399    $2,246    $2,399    Less: Goodwill and intangible assets, net   (336)   (710)   (704)   (699)   (694)   (686)   (682)   (694)   (690)   (694)   (690)  Tangible common equity (TCE)   $987    $812    $1,060    $1,349    $1,552    $1,400    $1,586    $1,581    $1,709    $1,552    $1,709   Tangible assets (TA)   Total assets   $21,113    $22,547    $21,163    $21,812    $22,257    $21,746    $20,938    $21,811    $21,960    $22,257    $21,960    Less: Goodwill and intangible assets, net   (336)   (710)   (704)   (699)   (694)   (686)   (682)   (694)   (690)   (694)   (690)  Tangible assets (TA)   $20,777    $21,837    $20,459    $21,113    $21,563    $21,060    $20,256    $21,117    $21,270    $21,563    $21,270  
 
 Credit Quality Trends  Net Loss Rates  Delinquency Rates  5 year Max rate: 7.6%  5 year Min rate: 3.9%  5 year Avg rate: ~6%  5 year Max rate: 6.0%  5 year Avg rate: ~5%  5 year Min rate: 3.3%  21  ©2022 Bread Financial  (2)  (3)  The 3Q22 Delinquency rate was impacted by the transition of our credit card processing services.   The 2Q22 Net loss rate includes a 30 basis point increase from the effects of the purchase of previously written-off accounts that were sold to a third-party debt collection agency.  The 3Q22 Net loss rate was impacted by the transition of our credit card processing services. Excluding this impact, which is timing-related, the Net loss rate for the quarter would have been higher.  (1) 
 


Exhibit 99.3



Bread Financial Declares Dividend on Common Stock


COLUMBUS, Ohio – October 27, 2022 – Bread Financial Holdings, Inc. (NYSE: BFH), a tech-forward financial services company that provides simple, personalized payment, lending and saving solutions, today announced that its Board of Directors declared a quarterly cash dividend of $0.21 per share on the Company’s common stock, payable on December 16, 2022 to stockholders of record at the close of business on November 14, 2022.


About Bread Financial(TM)   

Bread FinancialTM (NYSE: BFH) is a tech-forward financial services company providing simple, personalized payment, lending and saving solutions. The company creates opportunities for its customers and partners through digitally enabled choices that offer ease, empowerment, financial flexibility and exceptional customer experiences. Driven by a digital-first approach, data insights and white-label technology, Bread Financial delivers growth for its partners through a comprehensive product suite, including private label and co-brand credit cards, installment lending, and buy now, pay later (BNPL). Bread Financial also offers direct-to-consumer solutions that give customers more access, choice and freedom through its branded Bread CashbackTM American Express® Credit Card and Bread SavingsTM products.

Bread Financial is an S&P MidCap 400 company headquartered in Columbus, Ohio, and committed to sustainable business practices powered by its 6,000+ global associates. To learn more about Bread Financial, visit BreadFinancial.com or follow us on Facebook, LinkedIn, Twitter and Instagram.


Forward-Looking Statements

This release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Forward-looking statements give our expectations or forecasts of future events and can generally be identified by the use of words such as "believe," "expect," "anticipate," "estimate," "intend," "project," "plan," "likely," "may," "should" or other words or phrases of similar import. Similarly, statements that describe our business strategy, outlook, objectives, plans, intentions or goals also are forward-looking statements. Examples of forward-looking statements include, but are not limited to, statements we make regarding, and the guidance we give with respect to, our anticipated operating or financial results, future financial performance and outlook, initiation or completion of strategic initiatives, including the ability to realize the intended benefits of the spinoff of our former LoyaltyOne® segment, future dividend declarations, future economic conditions, including, but not limited to, market conditions, persistent inflation, rising interest rates, the increased probability of a recession and related impacts on consumer behavior, future legislative or regulatory actions that could have impact on our business and results of operations, including any such actions that may be taken with respect to late fees, interchange fees or other charges, developments in the geopolitical environment, including the war in Ukraine, and the ongoing effects of the global COVID-19 pandemic, all of which factors remain difficult to predict.




We believe that our expectations are based on reasonable assumptions. Forward-looking statements, however, are subject to a number of risks and uncertainties that could cause actual results to differ materially from the projections, anticipated results or other expectations expressed in this release, and no assurances can be given that our expectations will prove to have been correct. These risks and uncertainties include, but are not limited to, factors set forth in the Risk Factors section or elsewhere in our Annual Report on Form 10-K for the most recently ended fiscal year, which may be updated in Item 1A of, or elsewhere in, our Quarterly Reports on Form 10-Q filed for periods subsequent to such Form 10-K. Our forward-looking statements speak only as of the date made, and we undertake no obligation, other than as required by applicable law, to update or revise any forward-looking statements, whether as a result of new information, subsequent events, anticipated or unanticipated circumstances or otherwise.

###
Bread Financial

Brian Vereb — Investor Relations
614-528-4516
Brian.Vereb@breadfinancial.com

Shelley Whiddon — Media
214-494-3811
Shelley.Whiddon@breadfinancial.com

Rachel Stultz — Media
614-729-4890
Rachel.Stultz@breadfinancial.com