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Bread Financial Holdings Inc - Stock Quote BFH

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Morningstar's Bread Financial Holdings Inc Stock Analysis

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Expanding Net Interest Margins Drive Higher Net Interest Income for Bread Financial in Q1 Earnings

Michael Miller Equity Analyst

Analyst Note

| Michael Miller |

No-moat rated Bread Financial reported a strong start to 2022, as good loan growth and net interest margin expansion drove net interest income higher. Bread’s net revenue grew 15% year over year and 7.7% sequentially to $921 million. Earnings per share of $4.21 was 21% lower than last year’s quarter, which benefited from reserve releases. These results were largely in line with our expectations, and we are reaffirming our $72 fair value estimate for Bread.

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Bread Financial Holdings Inc's Company Profile

Business Description

Formed by a combination of J.C. Penney’s credit card processing unit and The Limited’s credit card bank business, Bread Financial is a provider of private label and co-branded credit cards, loyalty programs, and marketing services. The company’s most financially significant unit is its credit card business that partners with retailers to jointly market Bread’s credit cards to their customers. The company also retains minority interest in its recently spunoff LoyaltyOne division, which operates the largest airline miles loyalty program in Canada and offers marketing services to grocery chains in Europe and Asia.

3075 Loyalty Circle
Columbus, OH, 43219
T +1 614 729-4000
Sector Financial Services
Industry Credit Services
Most Recent Earnings Mar 31, 2022
Fiscal Year End Dec 31, 2022
Stock Type Cyclical
Employees 6,000

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