Bread Financial Holdings, Inc. reported improved credit performance for the month ended May 31, 2026, with the net principal loss rate declining to 6.98% from 7.97% in the prior year. The company, a tech-forward financial services provider, disclosed that average credit card and other loans grew 2.6% year-over-year to $18,169 million, while end-of-period loans reached $18,363 million. The delinquency rate also improved, falling to 5.24% as of May 31, 2026, down from 5.71% in the same period last year.

Credit Performance Metrics

The company’s net principal losses for May 2026 were $108 million, a decrease from $120 million in May 2025. The reduction in the loss rate coincided with a modest increase in loan balances compared to the previous year. Bread Financial noted that specific weather-related actions taken in late 2024 continued to influence loss metrics in the current period.

Loan Portfolio and Delinquencies

Bread Financial’s loan portfolio showed growth, with average credit card and other loans rising to $18,169 million in May 2026 from $17,714 million in May 2025. The 30-day plus delinquencies stood at $853 million as of May 31, 2026, lower than the $926 million recorded a year earlier. The period-ended credit card and other loans principal was $16,287 million, slightly up from $16,200 million in the prior year.

Impact of Prior Relief Measures

The company attributed some of the variance in loss metrics to actions taken following hurricanes Helene and Milton in September and October 2024. Bread Financial froze delinquency progression in the fourth quarter of 2024 for cardholders in Federal Emergency Management Agency identified impact zones for one billing cycle. This resulted in lower net principal losses and net loss rate in the fourth quarter of 2024, which subsequently negatively impacted the same metrics in the second quarter of 2025.

Financial Highlights for May 2026 vs May 2025