Bread Financial Holdings, Inc 8-K, filed Oct 22, 2026
Bread Financial Holdings, Inc. (BFH)
8-K
2026-10-22
For: 2026-10-22
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Added on
October 22, 2026
About this 8-K
Bread Financial Holdings, Inc filed this 8-K on October 22, 2026.
Bread Financial Holdings, Inc. reported third-quarter net income of $156 million, revenue growth of 5%, and end-of-period loans up 7% to $18.9 billion; it declared a $0.25 common dividend and lowered full-year net loss guidance to below 7.0%. AI summary
Items reported
- Item 2.02: Financial results
- Item 7.01: Regulation FD disclosure
- Item 8.01: Other events
- Item 9.01: Financial statements and exhibits
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):
(Exact Name of Registrant as Specified in Charter)
| (State or Other Jurisdiction of Incorporation) | (Commission File Number) | (IRS Employer Identification No.) | ||||||
(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:
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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 22, 2026, Bread Financial Holdings, Inc. (the “Company”) issued a press release regarding its results of operations for the quarter ended September 30, 2026 (the “Q3 2026 Earnings Release”). Copies of the Q3 2026 Earnings Release and the related financial supplement are furnished as Exhibit 99.1 and Exhibit 99.2 hereto, respectively.
Item 7.01 Regulation FD Disclosure.
In connection with the Q3 2026 Earnings Release, on October 22, 2026, the Company posted an investor presentation to the Company’s website (at www.breadfinancial.com) on the “Investors” page under “Events & Presentations,” where the Company routinely posts, and intends to do so in the future, announcements, events, presentations, news releases and other investor information. The investor presentation may be used by the Company’s senior management during meetings and calls with analysts, investors and other market participants. 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 22, 2026, the Company issued a press release announcing that the Board of Directors of the Company has declared: (i) a quarterly cash dividend of $21.56 per share of its 8.625% Non-Cumulative Perpetual Preferred Stock, Series A (equivalent to $0.539 per depositary share, each representing a 1/40th interest in a share of preferred stock), payable on December 15, 2026 to preferred stockholders of record at the close of business on November 30, 2026; (ii) a quarterly cash dividend of $22.19 per share of its 8.875% Fixed Rate Reset Non-Cumulative Perpetual Preferred Stock, Series B (equivalent to $0.55475 per depositary share, each representing a 1/40th interest in a share of preferred stock), payable on December 15, 2026 to preferred stockholders of record at the close of business on November 30, 2026; and (iii) a quarterly cash dividend of $0.25 per share of common stock, payable on December 15, 2026 to common stockholders of record at the close of business on November 30, 2026. A copy of the press release announcing these dividends is attached as Exhibit 99.3 hereto.
Item 9.01 Financial Statements and Exhibits.
(d) Exhibits
| Exhibit No. | Document Description | |||||||
| Press Release dated October 22, 2026 announcing the Company’s results of operations for the quarter ended September 30, 2026. | ||||||||
| Financial Supplement -Third Quarter 2026. | ||||||||
| Press Release dated October 22, 2026 announcing the dividends on the Company’s preferred and common stock. | ||||||||
| 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.
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 22, 2026 | By: | /s/ Joseph L. Motes III | ||||||
| Joseph L. Motes III Executive Vice President, Chief Administrative Officer, General Counsel and Secretary | ||||||||
Bread Financial | October 22, 2026 1 "Our third quarter results underscore the sustained strength of Bread Financial's performance and our disciplined and consistent execution of key priorities including: responsible growth, credit risk management, and capital allocation. Credit sales increased 9% year-over-year, from both new and existing brand partners and continued strength in general-purpose spending. This positive momentum contributed to 7% growth in end-of-period loans, 5% revenue growth, and net income of $156 million. Consumer deposits increased 21% to $9.9 billion. These results demonstrate the continued success of our business model and our ability to generate sustainable, profitable growth. "Additionally, we saw continued improvement in our credit metrics, with both the delinquency and net loss rates trending positively year-over-year. These trends reflect our disciplined credit risk management, sophisticated underwriting, and further maturation of higher-quality new account acquisitions. We continue to monitor the effects of higher inflation and broader macroeconomic uncertainty on the consumer, however, our consumers continue to thoughtfully manage their spending and financial obligations. "Our partner renewal activity this quarter reinforces the differentiated value we deliver. We extended our longstanding agreement with Signet Jewelers through a renewal that enhances technology and data-driven marketing capabilities, and expands the credit program to include the Blue Nile brand. We also renewed our long-term agreement with Sephora, where we will further integrate brand loyalty with our card offerings, enhance personalization, and deliver more seamless experiences across channels. These important long-term renewals, with two of our top 10 partners, underscore the durability and strength of our relationships and our continued ability to create long-term value for both our partners and their customers. "Our strong capital position and consistent cash flow generation provide flexibility to invest in growth and technology, including AI capabilities, while returning capital to shareholders. Tangible book value per share grew 19% year-over-year, reflecting the compounding benefits of our earnings power and our prudent capital management. During the quarter, we repurchased $75 million of common stock. Today we announced that we are increasing our quarterly common stock dividend by 9%. Both actions reflect our Board's confidence in our business model and our positive long-term financial outlook. Since the end of the third quarter, we successfully completed our bank merger and received a credit ratings upgrade from Moody's, providing further evidence of the company's transformation and the strength of our enhanced enterprise risk, funding, and capital management. "We enter the final quarter of 2026 confident in our performance, encouraged by continued credit improvement and balance sheet growth, and remain committed to advancing our strategic priorities while achieving our long-term financial targets." - Ralph Andretta, president and chief executive officer Bread Financial reports accelerated loan and consumer deposits growth; improves full year net loss rate outlook to be below 7% (1) Represents a Non-GAAP financial measure. See “Non-GAAP Financial Measures” and "Reconciliation of GAAP to Non-GAAP Financial Measures." $18.6B 3Q26 Average loans $3.82 3Q26 Earnings per diluted common share 13.1% Common equity tier 1 capital ratio 23.6% 3Q26 Return on average tangible common equity(1) • Relative to the third quarter of 2025: • Net income of $156 million decreased $32 million, or 17%, as the prior year included a $38 million favorable discrete tax item. Pretax income increased $13 million, or 6%, as strong loan growth resulted in 5% revenue growth. • Pretax pre-provision earnings (PPNR)(1) increased $35 million, or 7%. • Average loans increased 6%, attributed to new partnership growth and improved credit sales. • Book value and Tangible book value per common share(1) increased 18% to $85.23 and 19% to $66.95, respectively. • Return on average equity was 17.7%; Return on average tangible common equity(1) was 23.6%. • The delinquency rate was 5.57% and the net loss rate was 6.40%. • Declared a quarterly cash dividend of $0.25 per common share, a 9% increase from the prior quarter. • Repurchased 0.7 million shares of common stock for an aggregate purchase price of $75 million. • Received credit ratings upgrade from Moody's to Ba1 from Ba2. CEO COMMENTARY COLUMBUS, Ohio, October 22, 2026 – 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, 2026. 17.7% 3Q26 Return on average equity Exhibit 99.1
Bread Financial | October 22, 2026 2 "Bread Financial delivered strong third quarter results, driven by responsible balance sheet growth and improved efficiency and credit metrics. Pretax pre- provision earnings, a non-GAAP financial measure, rose 7% from the prior year, as revenue increased as a result of loan portfolio growth coupled with prudent expense management generating meaningful operating leverage. Average loans increased 6% year-over-year, reflecting strong credit sales growth and a lower net loss rate. Our loan growth resulted in a higher provision for credit losses, which was partially offset by improved credit metrics and a lower reserve rate. Tangible book value per common share increased nearly $11 to $66.95, up 19% from the prior year, underscoring strong value creation for our shareholders. "Revenue grew 5% year-over-year, while total non-interest expenses increased only 2%. Net interest margin expanded sequentially, consistent with typical seasonal patterns, partially offset by lower billed late fees. Billed late fees continued to decline compared to the prior year, in line with the favorable trend we are seeing in delinquency rates. Within non-interest income, retailer share arrangement payments increased sequentially as expected, reflecting seasonality, ongoing credit sales and loan growth, increased profit share from improved performance, and the impact of partner renewals. "Consumer deposits increased 21% year-over-year to $9.9 billion at quarter- end, with average consumer deposits representing 53% of total funding, up from 47% in the prior year period. The successful completion of our bank merger on October 1 better positions the company to further increase consumer deposits as a core funding source over time and provides additional balance sheet and funding flexibility with a larger, simplified bank structure. During the quarter, we repurchased $75 million of common shares and $24 million of subordinated debt, further optimizing our balance sheet. Additionally, the Board's decision to increase the quarterly common stock dividend by 9% was supported by the strength of our earnings coupled with our disciplined capital management. "The demonstrated strength of our credit risk management continued this quarter, with both the delinquency rate and net loss rate improving year-over- year. Given our year-to-date credit performance and the favorable outlook indicated by current delinquency trends, for the second consecutive quarter we are improving our full year 2026 net loss rate guidance, now projecting below 7%. "The allowance for credit losses also reflected our improved credit quality trajectory, with the reserve rate declining 60 basis points year-over-year to 11.12%. Our credit reserve continues to reflect prudent weightings on the economic scenarios used in our modeling given the broad range of potential macroeconomic outcomes. "This quarter's results reinforce the quality and durability of our earnings model and the underlying financial discipline. We enter the final stretch of 2026 with strong momentum, a robust balance sheet, and an enhanced operating model." - Perry Beberman, executive vice president and chief financial officer 2026 full year outlook • "Our 2026 outlook is predicated on continued consumer resilience, inflation remaining above the Federal Reserve target rate of 2%, and a generally stable labor market. • Average loan growth: "Based on visibility into our pipeline and partner growth, we now expect average loans to be up approximately 4% from full year 2025. • Total revenue: "We now anticipate total revenue growth to be up approximately 5% from full year 2025, primarily driven by average loan growth. • Total expenses: "We actively manage expense growth based on revenue generation and ongoing investment in our business. We expect to deliver positive operating leverage in 2026, excluding the pretax impacts from our debt repurchases. • Net loss rate: "We now anticipate a 2026 net loss rate below 7.0%. • Effective tax rate: "We expect our full year normalized effective tax rate to be in the range of 25% to 27%, with quarter-over-quarter variability due to the timing of certain discrete items." CFO COMMENTARY
Bread Financial | October 22, 2026 3 PPNR $498MM $531MM 3Q25 3Q26 Third quarter Year-to-date ($ in millions, except per share amounts) 2026 2025 % change 2026 2025 % change Total net interest and non-interest income (“Revenue”) $ 1,017 $ 971 5 $ 3,027 $ 2,870 5 Net principal losses 300 327 (8) 947 1,040 (9) Reserve build (release) 21 (28) (173) (10) (171) (94) Provision for credit losses 321 299 7 937 869 8 Total non-interest expenses 487 476 2 1,442 1,433 1 Income from continuing operations before income taxes 209 196 6 648 568 14 Income from continuing operations 156 188 (17) 483 468 3 Loss from discontinued operations, net of income taxes — — — — (4) (100) Net income $ 156 $ 188 (17) $ 483 $ 464 4 Dividends declared to preferred stockholders (6) — nm (10) — nm Net income available to common stockholders $ 150 $ 188 (20) $ 473 $ 464 2 Adjusted net income available to common stockholders(1) $ 151 $ 191 (21) $ 475 $ 479 (1) Weighted average common shares outstanding – diluted 39.3 47.5 (17) 41.0 48.1 (15) Earnings per diluted common share (EPS) $ 3.82 $ 3.96 (4) $ 11.54 $ 9.65 20 Adjusted earnings per diluted common share(1) $ 3.84 $ 4.02 (4) $ 11.60 $ 9.96 16 Pretax pre-provision earnings (PPNR)(1) $ 530 $ 495 7 $ 1,585 $ 1,437 10 Adjusted PPNR(1) $ 531 $ 498 7 $ 1,588 $ 1,456 9 Revenue $971MM $1,017MM 3Q25 3Q26 +5% Key operating and financial metrics Credit metrics (1) Represents a Non-GAAP financial measure. See “Non-GAAP Financial Measures” and "Reconciliation of GAAP to Non-GAAP Financial Measures." Credit sales $6.8B $7.4B 3Q25 3Q26 +9% Net loss rate 7.39% 6.40% 3Q25 3Q26 Delinquency rate 6.04% 5.57% 3Q25 3Q26 Diluted EPS $3.96 $4.02 $3.82 3Q25 Adj. 3Q25 3Q26 -47 bps -99 bps +7% Adjusted pretax pre-provision earnings (excl. impacts from debt repurchases)(1) nm – Not meaningful, denoting a variance of 1,000 percent or more. (1)
Bread Financial | October 22, 2026 4 Third quarter 2026 compared with third quarter 2025 • Credit sales were $7.4 billion, an increase of $0.6 billion, or 9%, driven by growth in both new and existing partnerships and increased general-purpose spending. • Average credit card and other loans of $18.6 billion were up 6%, and end-of-period credit card and other loans of $18.9 billion increased 7%, benefiting from growth in our new partnerships and improved credit sales. • End-of-period consumer deposits of $9.9 billion increased 21%, or $1.7 billion. • Revenue increased $46 million, or 5%, primarily reflecting loan growth, lower interest expense, higher merchant and interchange fees, partially offset by higher retailer share arrangements and lower billed late fees. • Non-interest expenses increased $11 million, or 2%, as a result of higher information processing and communication costs, as well as employee compensation and benefits costs, partially offset by lower depreciation and marketing expenses. • Net income decreased $32 million, or 17%, as the prior year included a $38 million favorable discrete tax item. Pretax income increased $13 million, or 6%, as strong loan growth drove an increase in revenue. • PPNR(1) increased $35 million, or 7%, driven by loan growth and prudent expense management. • The delinquency rate of 5.57% decreased 47 basis points. • The net loss rate of 6.40% decreased 99 basis points. • CET1 ratio of 13.1% decreased from 14.0% in the third quarter of 2025 as a result of our capital optimization. Contacts Investor Relations: Brian Vereb (brian.vereb@breadfinancial.com) Susan Haugen (susan.haugen@breadfinancial.com) Media Relations: Rachel Stultz (rachel.stultz@breadfinancial.com) (1) Represents a Non-GAAP financial measure. See “Non-GAAP Financial Measures” and "Reconciliation of GAAP to Non-GAAP Financial Measures." Impacts from debt repurchases ($ in millions, except per share amounts) Total non-interest expenses Net income available to common stockholders Diluted EPS 3Q26 3Q25 3Q26 3Q25 3Q26 3Q25 GAAP-basis $ 487 $ 476 $ 150 $ 188 $ 3.82 $ 3.96 Impacts from debt repurchases 1 3 1 3 0.02 0.06 Adjusted GAAP-basis(1) $ 486 $ 473 $ 151 $ 191 $ 3.84 $ 4.02
Bread Financial | October 22, 2026 5 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, future dividend declarations, and future economic conditions. We believe that our expectations are based on reasonable assumptions. Forward-looking statements, however, are subject to a number of risks and uncertainties that are difficult to predict and, in many cases, beyond our control. Accordingly, our actual results could 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. Factors that could cause the outcomes to differ materially include, but are not limited to, the following: macroeconomic conditions, including inflation, interest rates, labor market conditions, financial and capital market conditions, recessionary pressures or concerns over a prolonged economic slowdown, and the related impact on consumer spending behavior, payments, debt levels, savings rates and other behaviors; domestic and international political events and conditions, including significant shifts in trade policy, such as changes to, or the imposition of, tariffs and/or trade barriers and consequently any economic impacts, volatility, uncertainty and geopolitical instability resulting therefrom, as well as ongoing wars and military conflicts, and international tensions or hostilities; local or global public health issues, climate-related events, impacts to the power grid, and natural disasters; future credit performance, including the level of future delinquency and charge-off rates; loss of, or reduction in demand for services and/or products from, significant brand partners or customers in the highly competitive markets in which we operate, including competition from new and non-traditional competitors, such as financial technology companies, and with respect to new products, services and technologies, such as the emergence or increase in popularity of agentic commerce, digital payment platforms and currencies and other alternative payment and deposit solutions; the concentration of our business in U.S. consumer credit; inaccuracies in the models and estimates on which we rely, including our credit risk management models and the amount of our Allowance for credit losses; the inability to realize the intended benefits of acquisitions, dispositions and other strategic initiatives; our level of indebtedness and ability to access financial or capital markets; pending and future federal and state legislation, executive action, regulation, supervisory guidance, and regulatory and legal actions, including, but not limited to, those related to financial regulatory reform and consumer financial services practices, as well as any such actions that would place limits on credit card interest rates or late fees, interchange fees or other charges; failures or breaches in our operational or security systems, including as a result of cyberattacks, unanticipated impacts from technology modernization projects or otherwise; and any liability or other adverse impacts arising out of or related to the spinoff of our former LoyaltyOne segment or the bankruptcy filings of Loyalty Ventures Inc. (LVI) and certain of its subsidiaries, including the pending litigation against us in connection with the spinoff. The foregoing factors, along with other risks and uncertainties that could cause actual results to differ materially from those expressed or implied in forward-looking statements, are described in greater detail under the headings “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” 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 | October 22, 2026 6 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 herein 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: • We have previously repurchased and may, from time to time, in the future continue to repurchase debt, including any outstanding senior unsecured notes, subordinated notes or convertible notes. In such transactions, we may pay a premium to induce these repurchases, or in certain cases repurchase at a discount, which, from a GAAP perspective, would result in an impact to Total non-interest expenses, with a corresponding impact also reflected in Net income available to common stockholders and consequently our Earnings per diluted common share. For our prior debt repurchases, we show adjustments to these three financial statement line items to exclude the impacts from our debt repurchases. We use Adjusted total non-interest expenses, Adjusted net income available to common stockholders, and Adjusted earnings per diluted common share to evaluate the ongoing operations of the Company excluding the volatility that can occur from the impacts of our debt repurchases. • Pretax pre-provision earnings (PPNR) represents Income from continuing operations before income taxes and the Provision for credit losses. PPNR excluding impacts from debt repurchases then excludes from PPNR the loss or gain on any debt repurchases in the period. We use PPNR and PPNR excluding impacts from debt repurchases as metrics to evaluate our results of operations before income taxes, excluding the movements that can occur within Provision for credit losses and the one-time nature of the impacts from debt repurchases. • Return on average tangible common equity (ROTCE) represents annualized Income from continuing operations less Dividends to preferred stockholders, divided by average Tangible common equity. Tangible common equity (TCE) represents Total stockholders’ equity reduced by Preferred stock and Goodwill and intangible assets, net. We use ROTCE as a metric to evaluate the Company’s performance. • Tangible book value per common share represents TCE divided by common shares outstanding. We use Tangible book value per common share, a metric used across the industry, to assess capital and performance, in conjunction with ROTCE. 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.”
Bread Financial | October 22, 2026 7 Financial supplement This earnings release should be read in conjunction with the Financial Supplement for the third quarter of 2026, available at investor.breadfinancial.com and in a Form 8-K furnished today with the Securities and Exchange Commission. Conference call/webcast information Bread Financial will host a conference call on Thursday, October 22, 2026, at 8:30 a.m. (Eastern Time) to discuss the company’s third quarter results. The conference call will be available via the internet at investor.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. About Bread Financial® Bread Financial® (NYSE: BFH) is a tech-forward financial services company that provides simple, personalized payment, lending and saving solutions to millions of U.S. consumers. Our payment solutions deliver growth for some of the most recognized brands in travel & entertainment, health & beauty, technology, electronics, jewelry, home and specialty apparel through our co-brand and private label credit cards and pay-over-time products providing choice and value to our shared customers. Additionally, we offer Bread Financial general purpose credit cards and saving products that empower our customers and their passions for a better life. Bread Financial proudly marks 30 years of success in 2026. To learn more about our global associates, our performance and our sustainability progress, visit breadfinancial.com or follow us on Instagram and LinkedIn.
Bread Financial | October 22, 2026 8 BREAD FINANCIAL HOLDINGS, INC. RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES (In millions, except percentages) As of or for the three months ended September 30, As of or for the nine months ended September 30, 2026 2025 % change 2026 2025 % change Adjusted net income available to common stockholders Net income available to common stockholders $ 150 $ 188 (20) $ 473 $ 464 2 Impacts from debt repurchases 1 3 (65) 2 15 (84) Adjusted net income available to common stockholders $ 151 $ 191 (21) $ 475 $ 479 (1) Adjusted earnings per diluted common share Earnings per diluted common share $ 3.82 $ 3.96 (4) $ 11.54 $ 9.65 20 Impacts from debt repurchases 0.02 0.06 (57) 0.06 0.31 (81) Adjusted earnings per diluted common share $ 3.84 $ 4.02 (4) $ 11.60 $ 9.96 16 Adjusted total non-interest expenses Total non-interest expenses $ 487 $ 476 2 $ 1,442 $ 1,433 1 Impacts from debt repurchases 1 3 (60) 3 19 (82) Adjusted total non-interest expenses $ 486 $ 473 3 $ 1,439 $ 1,414 2 Pretax pre-provision earnings (PPNR) Income from continuing operations before income taxes $ 209 $ 196 6 $ 648 $ 568 14 Provision for credit losses 321 299 7 937 869 8 Pretax pre-provision earnings (PPNR) 530 495 7 1,585 1,437 10 Impacts from debt repurchases 1 3 (60) 3 19 (82) PPNR excluding impacts from debt repurchases $ 531 $ 498 7 $ 1,588 $ 1,456 9 Average Tangible common equity Average Total stockholders’ equity $ 3,497 $ 3,335 5 $ 3,464 $ 3,255 6 Less: average Preferred stock (201) — nm (139) — nm Less: average Goodwill and intangible assets, net (699) (728) (4) (707) (736) (4) Average Tangible common equity $ 2,597 $ 2,607 — $ 2,618 $ 2,519 4 Tangible common equity (TCE) Total stockholders’ equity $ 3,437 $ 3,317 4 $ 3,437 $ 3,317 4 Less: Preferred stock (201) — nm (201) — nm Less: Goodwill and intangible assets, net (694) (723) (4) (694) (723) (4) Tangible common equity (TCE) $ 2,542 $ 2,594 (2) $ 2,542 $ 2,594 (2) nm – Not meaningful, denoting a variance of 1,000 percent or more.
Bread Financial Holdings, Inc Financial Supplement Third Quarter 2026 Table of Contents Page Number Table 1: Consolidated Statements of Income 2 Table 2: Consolidated Balance Sheets 3 Table 3: Select Financial Metrics 4 Table 4: Capital Ratios 5 Table 5: Average Balances and Net Interest Margin 6 Table 6: Reconciliation of GAAP to Non-GAAP Financial Measures 7 Glossary of Terms 9 Note: The information contained in this Financial Supplement is preliminary and based on data available at the time of the earnings presentation. Please refer to our Quarterly Report on Form 10-Q for the period ended September 30, 2026 once it is filed with the Securities and Exchange Commission. Amounts presented in the following tables may not sum and percentages may not recalculate due to rounding. 1 Exhibit 99.2
3Q26 2Q26 1Q26 4Q25 3Q25 3Q26 vs. 2Q26 3Q26 vs. 3Q25 YTD '26 YTD '25 YTD '26 vs. YTD '25 (Millions, except per share amounts and percentages) Interest income Interest and fees on loans $ 1,254 $ 1,195 $ 1,224 $ 1,208 $ 1,198 5 % 5 % $ 3,673 $ 3,531 4 % Interest on cash and investment securities 40 39 36 38 44 4 % (10) % 114 135 (15) % Total interest income 1,294 1,234 1,260 1,246 1,242 5 % 4 % 3,787 3,666 3 % Interest expense Interest on deposits 148 139 133 137 139 7 % 6 % 420 417 1 % Interest on borrowings 51 56 60 62 71 (9) % (29) % 166 238 (30) % Total interest expense 199 195 193 199 210 2 % (6) % 586 655 (10) % Net interest income 1,095 1,039 1,067 1,047 1,032 5 % 6 % 3,201 3,011 6 % Non-interest income Interchange revenue, net of retailer share arrangements (144) (110) (107) (127) (111) 32 % 30 % (361) (289) 25 % Other 66 64 58 55 50 5 % 33 % 187 148 27 % Total non-interest income (78) (46) (49) (72) (61) 68 % 27 % (174) (141) 23 % Total net interest and non-interest income 1,017 993 1,018 975 971 2 % 5 % 3,027 2,870 5 % Provision for credit losses 321 313 303 373 299 2 % 7 % 937 869 8 % Total net interest and non-interest income, after provision for credit losses 696 680 715 602 672 2 % 4 % 2,090 2,001 4 % Non-interest expenses Employee compensation and benefits 228 225 220 232 222 1 % 3 % 673 648 4 % Card and processing expenses 79 81 80 78 81 (3) % (3) % 240 244 (2) % Information processing and communication 85 80 76 78 72 6 % 19 % 242 230 5 % Marketing expenses 35 36 35 44 38 (3) % (6) % 106 106 1 % Depreciation and amortization 17 19 19 19 20 (8) % (13) % 55 61 (11) % Other 43 42 42 104 43 5 % (2) % 126 144 (12) % Total non-interest expenses 487 483 472 555 476 1 % 2 % 1,442 1,433 1 % Income from continuing operations before income taxes 209 197 243 47 196 6 % 6 % 648 568 14 % Provision (benefit) for income taxes 53 51 62 (6) 8 6 % 539 % 165 100 66 % Income from continuing operations 156 146 181 53 188 6 % (17) % 483 468 3 % Loss from discontinued operations, net of income taxes — — — — — — % — % — (4) (100) % Net income 156 146 181 53 188 6 % (17) % 483 464 4 % Dividends declared to preferred stockholders (6) (2) (2) — — 253 % nm (10) — nm Net income available to common stockholders $ 150 $ 144 $ 179 $ 53 $ 188 4 % (20) % $ 473 $ 464 2 % Basic income per share Income from continuing operations $ 3.91 $ 3.62 $ 4.19 $ 1.19 $ 4.04 8 % (3) % $ 11.75 $ 9.88 19 % Loss from discontinued operations — — — — — — % — % — (0.09) (100) % Net income per share $ 3.91 $ 3.62 $ 4.19 $ 1.19 $ 4.04 8 % (3) % $ 11.75 $ 9.79 20 % Diluted income per share Income from continuing operations $ 3.82 $ 3.55 $ 4.15 $ 1.16 $ 3.96 7 % (4) % $ 11.54 $ 9.74 19 % Loss from discontinued operations — — — — — — % — % — (0.09) (100) % Net income per share $ 3.82 $ 3.55 $ 4.15 $ 1.16 $ 3.96 7 % (4) % $ 11.54 $ 9.65 20 % Weighted average common shares outstanding Basic 38.3 39.9 42.8 44.9 46.5 (4) % (18) % 40.3 47.4 (15) % Diluted 39.3 40.7 43.2 46.0 47.5 (3) % (17) % 41.0 48.1 (15) % nm - Not meaningful, denoting a variance of 1,000 percent or more. Bread Financial Holdings, Inc Preliminary Table 1: Consolidated Statements of Income 2
3Q26 2Q26 1Q26 4Q25 3Q25 3Q26 vs. 2Q26 3Q26 vs. 3Q25 (Millions, except preferred shares in thousands) ASSETS Cash and cash equivalents $ 3,961 $ 3,683 $ 3,637 $ 3,604 $ 3,764 8 % 5 % Credit card and other loans Total credit card and other loans 18,850 18,477 18,135 18,805 17,655 2 % 7 % Allowance for credit losses (2,096) (2,075) (2,078) (2,106) (2,070) 1 % 1 % Credit card and other loans, net 16,754 16,402 16,057 16,699 15,585 2 % 8 % Investments 279 288 286 284 284 (3) % (2) % Property and equipment, net 97 104 112 117 122 (7) % (21) % Goodwill and intangible assets, net 694 701 708 716 723 (1) % (4) % Other assets 1,506 1,274 1,508 1,243 1,236 18 % 22 % Total assets $ 23,291 $ 22,452 $ 22,308 $ 22,663 $ 21,714 4 % 7 % LIABILITIES AND STOCKHOLDERS’ EQUITY Deposits Consumer $ 9,900 $ 9,357 $ 8,708 $ 8,523 $ 8,188 6 % 21 % Wholesale and other 5,602 5,375 5,365 5,393 5,347 4 % 5 % Total deposits 15,502 14,732 14,073 13,916 13,535 5 % 15 % Debt issued by consolidated variable interest entities 2,320 2,447 3,041 3,422 2,682 (5) % (13) % Long-term and other debt 814 838 837 886 1,105 (3) % (26) % Other liabilities 1,218 1,070 1,032 1,112 1,075 14 % 13 % Total liabilities 19,854 19,087 18,983 19,336 18,397 4 % 8 % Stockholders’ equity Preferred stock — — — — — — % nm Common stock — — — — 1 (2) % (18) % Additional paid-in capital 1,543 1,603 1,699 1,868 1,900 (4) % (19) % Retained earnings 1,919 1,779 1,643 1,475 1,432 8 % 34 % Accumulated other comprehensive loss (25) (17) (17) (16) (16) 41 % 47 % Total stockholders’ equity 3,437 3,365 3,325 3,327 3,317 2 % 4 % Total liabilities and stockholders’ equity $ 23,291 $ 22,452 $ 22,308 $ 22,663 $ 21,714 4 % 7 % Preferred shares outstanding 210.0 210.0 75.0 75.0 — — % nm Common shares outstanding 38.0 38.7 41.3 44.1 46.0 (2) % (18) % nm - Not meaningful, denoting a variance of 1,000 percent or more. Bread Financial Holdings, Inc Preliminary Table 2: Consolidated Balance Sheets 3
3Q26 2Q26 1Q26 4Q25 3Q25 3Q26 vs. 2Q26 3Q26 vs. 3Q25 YTD '26 YTD '25 YTD '26 vs. YTD '25 (Millions, except per share amounts and percentages) Credit sales $ 7,424 $ 7,537 $6,510 $ 8,070 $ 6,787 (2) % 9 % $ 21,471 $ 19,707 9 % Average credit card and other loans 18,591 18,197 18,283 17,961 17,596 2 % 6 % 18,358 17,813 3 % End-of-period credit card and other loans 18,850 18,477 18,135 18,805 17,655 2 % 7 % 18,850 17,655 7 % End-of-period consumer deposits 9,900 9,357 $8,708 8,523 8,188 6 % 21 % 9,900 8,188 21 % Adjusted net income available to common stockholders * $ 151 $ 144 180 $ 95 $ 191 4 % (21) % $ 475 $ 479 (1) % Adjusted earnings per diluted common share * $ 3.84 $ 3.55 $4.18 $ 2.07 $ 4.02 8 % (4) % $ 11.60 $ 9.96 16 % Pretax pre-provision earnings (PPNR) *(1) $ 530 $ 510 546 $ 420 $ 495 4 % 7 % $ 1,585 $ 1,437 10 % PPNR excluding impacts from debt repurchases *(1) $ 531 $ 510 548 $ 475 $ 498 4 % 7 % $ 1,588 $ 1,456 9 % Effective tax rate 25.5 % 25.7 % 25.3 % (13.3) % 4.3 % (0.2) % 21.2 % 25.5 % 17.5 % 8.0 % Return on average assets (1) 2.7 % 2.6 % 3.3 % 1.0 % 3.4 % 0.1 % (0.7) % 2.9 % 2.8 % 0.1 % Return on average equity (1) 17.7 % 17.1 % 21.2 % 6.2 % 22.4 % 0.6 % (4.7) % 18.6 % 19.2 % (0.6) % Return on average tangible common equity *(1) 23.6 % 22.6 % 27.4 % 8.0 % 28.6 % 1.0 % (5.0) % 24.3 % 24.8 % (0.5) % Net interest margin (1) 18.89 % 18.49 % 19.25 % 18.94 % 18.81 % 0.40 % 0.08 % 18.87 % 18.19 % 0.68 % Loan yield (1) 26.76 % 26.35 % 27.14 % 26.68 % 27.01 % 0.41 % (0.25) % 26.75 % 26.51 % 0.24 % Efficiency ratio (1) 47.9 % 48.6 % 46.4 % 57.0 % 49.0 % (0.7) % (1.1) % 47.6 % 49.9 % (2.3) % Adjusted efficiency ratio (1) 47.8 % 48.6 % 46.2 % 51.3 % 48.7 % (0.8) % (0.9) % 47.5 % 49.3 % (2) % Common equity tier 1 capital ratio (1) 13.1 % 12.9 % 13.3 % 13.0 % 14.0 % 0.2 % (0.9) % 13.1 % 14.0 % (0.9) % Book value per common share (1) $ 85.23 $ 81.79 $78.72 $ 73.80 $ 72.08 4 % 18 % $ 85.23 $ 72.08 18 % Tangible book value per common share *(1) $ 66.95 $ 63.66 $61.57 $ 57.57 $ 56.36 5 % 19 % $ 66.95 $ 56.36 19 % Cash dividend per common share $ 0.23 $ 0.23 $0.23 $ 0.23 $ 0.21 — % 10 % $ 0.69 $ 0.63 10 % Payment rate (1) 14.7 % 15.1 % 15.0 % 15.0 % 14.9 % (0.4) % (0.2) % 15.0 % 14.9 % 0.1 % Delinquency rate (1) 5.57 % 5.25 % 5.59 % 5.75 % 6.04 % 0.32 % (0.47) % 5.57 % 6.04 % (0.47) % Net loss rate (1) 6.40 % 6.98 % 7.33 % 7.43 % 7.39 % (0.58) % (0.99) % 6.90 % 7.81 % (0.91) % Reserve rate (1) 11.12 % 11.23 % 11.46 % 11.20 % 11.72 % (0.11) % (0.60) % 11.12 % 11.72 % (0.60) % * Represents a Non-GAAP financial measure. See Table 6: Reconciliation of GAAP to Non-GAAP Financial Measures. (1) Please refer to "Glossary of terms." Bread Financial Holdings, Inc Preliminary Table 3: Select Financial Metrics 4
(Millions, except percentages) 3Q26 2Q26 1Q26 4Q25 3Q25 3Q26 vs. 2Q26 3Q26 vs. 3Q25 Total company Common equity tier 1 capital ratio (1) 13.1 % 12.9 % 13.3 % 13.0 % 14.0 % 0.2 % (0.9) % Total risk-based capital ratio (1) 17.1 % 17.1 % 16.9 % 16.8 % 17.5 % — % (0.4) % Total risk-weighted assets (1) $ 19,728 $ 19,329 $ 19,352 $ 19,755 $ 18,714 2.1 % 5.4 % Tangible common equity / tangible assets ratio *(1) 11.2 % 11.3 % 11.8 % 11.6 % 12.4 % (0.1) % (1.2) % Tangible common equity + credit reserve rate *(1) 24.6 % 24.6 % 25.5 % 24.7 % 26.4 % — % (1.8) % Comenity Bank Common equity tier 1 capital ratio (1) 15.5 % 15.5 % 15.1 % 15.1 % 15.4 % — % 0.1 % Total risk-based capital ratio (1) 16.9 % 16.9 % 16.5 % 16.5 % 16.8 % — % 0.1 % Comenity Capital Bank Common equity tier 1 capital ratio (1) 12.4 % 12.5 % 13.5 % 13.5 % 15.4 % (0.1) % (3.0) % Total risk-based capital ratio (1) 17.5 % 17.7 % 17.6 % 17.5 % 19.0 % (0.2) % (1.5) % * Represents a Non-GAAP financial measure. See Table 6: Reconciliation of GAAP to Non-GAAP Financial Measures. (1) Please refer to "Glossary of terms." Bread Financial Holdings, Inc Preliminary Table 4: Capital Ratios 5
3Q26 2Q26 3Q25 Average Balance Interest Income/ Expense Average Yield / Rate Average Balance Interest Income/ Expense Average Yield / Rate Average Balance Interest Income/ Expense Average Yield / Rate (Millions, except percentages) Cash and investment securities $ 4,412 $ 40 3.55 % $ 4,348 $ 39 3.51 % $ 4,173 $ 44 4.18 % Credit card and other loans 18,591 1,254 26.76 % 18,197 1,195 26.35 % 17,596 1,198 27.01 % Total interest-earning assets 23,003 1,294 22.31 % 22,545 1,234 21.95 % 21,769 1,242 22.64 % Consumer deposits 9,633 96 3.94 % 8,993 89 3.95 % 8,139 86 4.23 % Wholesale deposits 5,487 52 3.79 % 5,344 50 3.77 % 5,296 53 3.94 % Interest-bearing deposits 15,120 148 3.89 % 14,337 139 3.88 % 13,435 139 4.11 % Secured borrowings 2,387 34 5.50 % 2,826 38 5.40 % 2,872 43 5.88 % Unsecured borrowings 836 17 8.18 % 850 18 8.27 % 1,129 28 9.92 % Interest-bearing borrowings 3,223 51 6.20 % 3,676 56 6.06 % 4,001 71 7.02 % Total interest-bearing liabilities $ 18,343 $ 199 4.29 % $ 18,013 $ 195 4.33 % $ 17,436 $ 210 4.78 % Net interest income $ 1,095 $ 1,039 $ 1,032 Net interest margin (1) 18.89 % 18.49 % 18.81 % YTD '26 YTD '25 Average Balance Interest Income/ Expense Average Yield / Rate Average Balance Interest Income/ Expense Average Yield / Rate (Millions, except percentages) Cash and investment securities $ 4,316 $ 114 3.53 % $ 4,322 $ 135 4.17 % Credit card and other loans 18,358 3,673 26.75 % 17,813 3,531 26.50 % Total interest-earning assets 22,674 3,787 22.33 % 22,135 3,666 22.14 % Consumer deposits 9,070 269 3.96 % 7,994 262 4.38 % Wholesale deposits 5,397 151 3.75 % 5,228 155 3.96 % Interest-bearing deposits 14,467 420 3.88 % 13,222 417 4.21 % Secured borrowings 2,803 113 5.42 % 3,481 152 5.84 % Unsecured borrowings 852 53 8.27 % 1,159 86 9.92 % Interest-bearing borrowings 3,655 166 6.09 % 4,640 238 6.86 % Total interest-bearing liabilities $ 18,122 $ 586 4.33 % $ 17,862 $ 655 4.90 % Net interest income $ 3,201 $ 3,011 Net interest margin (1) 18.87 % 18.19 % (1) Please refer to "Glossary of terms." Bread Financial Holdings, Inc Preliminary Table 5: Average Balances and Net Interest Margin 6
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 herein 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: • We have previously repurchased and may, from time to time, in the future continue to repurchase debt, including any outstanding senior unsecured notes, subordinated notes or convertible notes. In such transactions, we may pay a premium to induce these repurchases, or in certain cases repurchase at a discount, which, from a GAAP perspective, would result in an impact to Total non-interest expenses, with a corresponding impact also reflected in Net income available to common stockholders and consequently our Earnings per diluted common share. For our prior debt repurchases, we show adjustments to these three financial statement line items to exclude the impacts from our debt repurchases. We use Adjusted total non-interest expenses, Adjusted net income available to common stockholders, and Adjusted earnings per diluted common share to evaluate the ongoing operations of the Company excluding the volatility that can occur from the impacts of our debt repurchases. • Pretax pre-provision earnings (PPNR) represents Income from continuing operations before income taxes and the Provision for credit losses. PPNR excluding impacts from debt repurchases then excludes from PPNR the loss or gain on any debt repurchases in the period. We use PPNR and PPNR excluding impacts from debt repurchases as metrics to evaluate our results of operations before income taxes, excluding the movements that can occur within Provision for credit losses and the one-time nature of the impacts from debt repurchases. • Return on average tangible common equity (ROTCE) represents annualized Income from continuing operations less Dividends to preferred stockholders, divided by average Tangible common equity. Tangible common equity (TCE) represents Total stockholders’ equity reduced by Preferred stock and Goodwill and intangible assets, net. We use ROTCE as a metric to evaluate the Company’s performance. • Tangible book value per common share represents TCE divided by common shares outstanding. We use Tangible book value per common share, a metric used across the industry, to assess capital and performance, in conjunction with ROTCE. • Tangible common equity over Tangible assets (TCE/TA) represents 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 absorb losses. We believe the use of these Non-GAAP financial measures provide additional clarity in understanding our results of operations and trends. Please see the table below for a reconciliation of these Non-GAAP financial measures to the most directly comparable GAAP measures. Adjusted net income available to common stockholders Net income available to common stockholders $ 150 $ 144 $ 179 $ 53 $ 188 4 % (20) % $ 473 $ 464 2 % Impacts from debt repurchases 1 — 1 42 3 nm (65) % 2 15 (84) % Adjusted net income available to common stockholders $ 151 $ 144 $ 180 $ 95 $ 191 4 % (21) % $ 475 $ 479 (1) % Adjusted earnings per diluted common share Earnings per diluted common share $ 3.82 $ 3.55 $ 4.15 $ 1.16 $ 3.96 7 % (4) % $ 11.54 $ 9.65 20 % Impacts from debt repurchases $ 0.02 $ — $ 0.03 $ 0.91 $ 0.06 nm (57) % $ 0.06 $ 0.31 (81) % Adjusted earnings per diluted common share $ 3.84 $ 3.55 $ 4.18 $ 2.07 $ 4.02 8 % (4) % $ 11.60 $ 9.96 16 % Adjusted total non-interest expenses Total non-interest expenses $ 487 $ 483 $ 472 $ 555 $ 476 1 % 2 % $ 1,442 $ 1,433 1 % Impacts from debt repurchases 1 — 2 55 3 nm (60) % 3 19 (82) % Adjusted total non-interest expenses 486 483 470 500 473 1 % 3 % $ 1,439 $ 1,414 2 % Pretax pre-provision earnings (PPNR) Income from continuing operations before income taxes 209 197 243 47 196 6 % 6 % $ 648 $ 568 14 % Provision for credit losses 321 313 303 373 299 2 % 7 % 937 869 8 % Pretax pre-provision earnings (PPNR) 530 510 546 420 495 4 % 7 % 1,585 1,437 10 % Impacts from debt repurchases 1 — 2 55 3 nm (60) % 3 19 (82) % PPNR excluding impacts from debt repurchases $ 531 $ 510 $ 548 $ 475 $ 498 4 % 7 % $ 1,588 $ 1,456 9 % Continued on the following page 3Q26 2Q26 1Q26 4Q25 3Q25 3Q26 vs. 2Q26 3Q26 vs. 3Q25 YTD '26 YTD '25 YTD '26 vs. YTD '25 (Millions, except per share amounts and percentages) Bread Financial Holdings, Inc Preliminary Table 6: Reconciliation of GAAP to Non-GAAP Financial Measures 7
Average tangible common equity Average Total stockholders’ equity $ 3,497 $ 3,433 $ 3,461 $ 3,405 $ 3,335 2 % 5 % 3,464 3,255 6 % Less: average Preferred Stock (201) (143) (72) (29) — 41 % nm (139) — nm Less: average Goodwill and intangible assets, net (699) (706) (713) (721) (728) (1) % (4) % (707) (736) (4) % Average Tangible common equity 2,597 2,584 2,676 2,655 2,607 — % — % 2,618 2,519 4 % Tangible common equity (TCE) Total stockholders’ equity 3,437 3,365 3,325 3,327 3,317 2 % 4 % 3,437 3,317 4 % Less: Preferred stock (201) (201) (72) (71) — — % nm (201) — nm Less: Goodwill and intangible assets, net (694) (701) (708) (716) (723) (1) % (4) % (694) (723) (4) % Tangible common equity (TCE) 2,542 2,463 2,545 2,540 2,594 3 % (2) % 2,542 2,594 (2) % Tangible assets (TA) Total assets 23,291 22,452 22,308 22,663 21,714 4 % 7 % 23,291 21,714 7 % Less: Goodwill and intangible assets, net (694) (701) (708) (716) (723) (1) % (4) % (694) (723) (4) % Tangible assets (TA) $ 22,597 $ 21,751 $ 21,600 $ 21,947 $ 20,991 4 % 8 % $ 22,597 $ 20,991 8 % 3Q26 2Q26 1Q26 4Q25 3Q25 3Q26 vs. 2Q26 3Q26 vs. 3Q25 YTD '26 YTD '25 YTD '26 vs. YTD '25 (Millions, except per share amounts and percentages) nm - Not meaningful, denoting a variance of 1,000 percent or more. Bread Financial Holdings, Inc Preliminary Table 6: Reconciliation of GAAP to Non-GAAP Financial Measures 8
Book value per common share Book value per common share represents Total stockholders' equity less Preferred stock, divided by common shares outstanding. Common equity tier 1 capital ratio Common equity tier 1 capital ratio represents tier 1 capital reduced by Preferred stock, divided by total risk-weighted assets. In the calculation of tier 1 capital, we follow the Basel III Standardized Approach and therefore Total stockholders’ equity has been reduced by Goodwill and intangible assets, net. Delinquency rate Delinquency rate represents outstanding balances that are contractually delinquent (i.e., principal balances 30 days past due or more) as of the end of the period, divided by the outstanding principal amount of Credit card and other loans as of the same period-end. Efficiency ratio and Adjusted efficiency ratio Efficiency ratio represents Total non-interest expenses divided by Total net interest and non-interest income. Adjusted efficiency ratio excludes any impacts from debt repurchases. Loan yield Loan yield represents annualized Interest and fees on loans divided by Average credit card and other loans. Net interest margin Net interest margin represents annualized Net interest income divided by average Total interest-earning assets. Net principal loss rate Net principal loss rate, an annualized rate, represents net principal losses for the period divided by Average credit card and other loans for the same period, using an average daily balance calculation methodology. Payment rate Payment rate represents consumer payments during the period, divided by the aggregate of the opening monthly Credit card and other loans balances during the period, including held for sale in applicable periods. PPNR and PPNR excluding impacts from debt repurchases * PPNR represents Income from continuing operations before income taxes and the Provision for credit losses. PPNR excluding impacts from debt repurchases excludes from PPNR impacts from our debt repurchases in the period. Reserve rate Reserve rate represents the Allowance for credit losses divided by End-of-period credit card and other loans. Return on average assets Return on average assets represents annualized Income from continuing operations divided by average Total assets. Return on average equity Return on average equity represents annualized Income from continuing operations divided by average Total stockholders’ equity. Return on average tangible common equity * Return on average tangible common equity (ROTCE) represents annualized Income from continuing operations, less Dividends to preferred stockholders, divided by average Tangible common equity. Tangible common equity (TCE) represents Total stockholders’ equity reduced by Preferred stock and Goodwill and intangible assets, net. Tangible book value per common share * Tangible book value per common share represents TCE divided by common shares outstanding. Tangible common equity + credit reserve rate * Tangible common equity + credit reserve rate represents the sum of TCE and Allowance for credit losses, divided by End-of-period credit card and other loans. Tangible common equity / tangible assets ratio * Tangible common equity over tangible assets (TCE/TA) represents TCE divided by Tangible assets (TA), which is Total assets reduced by Goodwill and intangible assets, net. Total risk-based capital ratio Total risk-based capital ratio represents total capital divided by total risk-weighted assets. In the calculation of total capital, we follow the Basel III Standardized Approach and therefore tier 1 capital has been increased by tier 2 capital, which for us is comprised of subordinated notes, as well as the allowable portion of the Allowance for credit losses. Total risk-weighted assets Total risk-weighted assets are generally measured by allocating assets, and specified off-balance sheet exposures, to various risk categories as defined by the Basel III Standardized Approach. * Represents a Non-GAAP financial measure. See Table 6: Reconciliation of GAAP to Non-GAAP Financial Measures. Bread Financial Holdings, Inc Glossary of Terms 9
Exhibit 99.3
Bread Financial Declares Dividends on Preferred Stock and Increased Dividend on Common Stock
COLUMBUS, Ohio – October 22, 2026 – 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 quarterly dividends on its preferred stock and an increased quarterly dividend on its common stock for the fourth quarter of 2026.
On the Company’s 8.625% Non-Cumulative Perpetual Preferred Stock, Series A (NYSE: BFH-PrA), the Board of Directors declared a quarterly cash dividend of $21.56 per share (equivalent to $0.539 per depositary share, each representing a 1/40th interest in a share of preferred stock). The dividend is payable on December 15, 2026 to preferred stockholders of record at the close of business on November 30, 2026.
On the Company’s 8.875% Fixed Rate Reset Non-Cumulative Perpetual Preferred Stock, Series B (NYSE: BFH-PrB), the Board of Directors declared a quarterly cash dividend of $22.19 per share (equivalent to $0.55475 per depositary share, each representing a 1/40th interest in a share of preferred stock). The dividend is payable on December 15, 2026 to preferred stockholders of record at the close of business on November 30, 2026.
On the Company’s common stock, the Board of Directors declared a quarterly cash dividend of $0.25 per share, a 9% increase from the prior quarterly dividend of $0.23 per share, payable on December 15, 2026 to common stockholders of record at the close of business on November 30, 2026.
About Bread Financial®
Bread Financial® (NYSE: BFH) is a tech-forward financial services company that provides simple, personalized payment, lending and saving solutions to millions of U.S. consumers. Our payment solutions deliver growth for some of the most recognized brands in travel & entertainment, specialty apparel, health & beauty, jewelry, sporting goods, technology and electronics, as well as home & furniture through our co-brand and private label credit cards and pay-over-time products providing choice and value to our shared customers. Additionally, we offer Bread Financial general purpose credit cards and saving products that empower our customers and their passions for a better life.
Bread Financial proudly marks 30 years of success in 2026. To learn more about our global associates, our performance and our sustainability progress, visit breadfinancial.com or follow us on Instagram and LinkedIn.
Contacts
Brian Vereb – Investor Relations
Brian.Vereb@BreadFinancial.com
Susan Haugen – Investor Relations
Susan.Haugen@BreadFinancial.com
Rachel Stultz – Media
Rachel.Stultz@BreadFinancial.com
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