Bread Financial Holdings, Inc. reported adjusted net income of $149 million and adjusted earnings per diluted share of $3.15 for the second quarter of 2025. The company achieved a robust return on average tangible common equity (ROTCE) of 22.7% for the quarter.
Credit sales grew 4% year-over-year to $6.8 billion, driven by new brand partner growth and higher general-purpose spending, though average credit card and other loans decreased 1% to $17.7 billion. Net interest margin (NIM) was 17.7%, down from 18.0% in Q2 2024, primarily due to lower billed late fees and an elevated cash position.
Credit quality showed encouraging signs, with the provision for credit losses decreasing due to a $74 million reserve release. The delinquency rate improved to 5.7% (down 30 bps year-over-year), and the net loss rate fell to 7.9% (down 70 bps year-over-year). The company updated its 2025 full-year net principal loss rate guidance to a range of 7.8% to 7.9%, reflecting better-than-expected credit performance.
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