Bread Financial Holdings Inc. 2025年度报告

2025 Highlights Newsweek’sMost ResponsibleCompanies $10.96(98% increase) $521M(87% increase) Newsweek’sMost Trustworthy 10 of 10 Largest ProgramsSecured into at Least: Increased Tangible Book ValuePer Common Share* to: $57.57(23% increase) 2028 Great Place toWorkCertified $310M(5.6x increase) 10%($0.23 per share) Great Placeto WorkBest $8.5B 48%of 4Q25 total funding Benchmark PortalCenter of Excellence FORBESBest Large Employer Dear Bread FinancialStakeholders Our 2025 financial results reflect disciplined execution,financialresilience,and meaningful progress acrossour strategic priorities to support significant long-termgrowth opportunities. Throughout the year, we focusedongrowingresponsibly,improvingourcreditperformance metrics, optimizing our capital structure, 2025 Business Drivers In 2025, consumer financial health remained resilient,driving a 3.0% year-over-year increase in credit salesthroughhighertransactionsizesandincreasedtransaction frequency. We strengthened our portfolio ofbrandpartners by signing and renewing programsacrossa diversified range of industry verticals,includingtravel and entertainment,technology,and Additionally,we returned capital to shareholdersthrough share repurchases and an increased dividend,while strengthening our balance sheet. Entering 2026,we believe the foundation we have built positions us In parallel, execution and discipline remained central toour strategy in 2025. We delivered positive operatingleveragewhile advancing our ongoing technologytransformation,includinginvestmentsincloud “Our core business is strong, ourteamis executing well,and weenter2026withmomentumsupportedbysolidfinancial Ralph Andretta President and CEO consumer deposit offerings, which increased 11% yearoveryear to$8.5 billion and represented 48%of Our Financial Performance We delivered meaningful improvement in profitabilityand credit performance in 2025. Revenue increasedmodestly,supported by pricing actions and lowerfundingcosts,partially offset by lower late fees asdelinquencytrends improved.Net interest marginexpanded to 18.9%. Average loans declined 1% as higher Wecontinued to proactively optimize our capitalstructure through targeted debt and preferred equityactions.Weopportunisticallyrepurchasedouroutstanding convertible notes and 9.75% senior notes,completed offerings of 8.375% subordinated notes and6.75% senior notes, and issued $75 million of 8.625% Additional 2025 Highlights We consider a strong balance sheet to be foundationalto our strategy and are pleased with the progress wemadethroughout the year.We will continue to bedisciplinedand strategic with our deployment of Creating Value Through Sustainable Number of Awards forPositive Workplace and Increase in PaperlessBilling Rate by: As a purpose̻driven company, responsible growth iscentralto how we create long̻term value for ourstakeholders.Weembedresponsiblebusinesspracticesinto our operations,decision̻making,andstrategy—ensuring our actions align with our values Strong Balance Sheet and Disciplined We further strengthened our balance sheet in 2025.Tangible book value per common share increased $11,or23%,reflecting durable earnings and disciplinedcapitalmanagement.We optimized our capital Our sustainability strategy reflects this focus and ourpromise to empower customers by building financialwellbeing and confidence. It guides how we elevate thecustomer experience, invest in our people, and serve as our people, ensuring they have the tools, developmentopportunities, and support needed to grow. To do that,weactivated a new operating model for enhancedcollaborationand faster delivery of high-qualityproducts and trained over 1,000 associates to betterunderstand their roles and new processes. Additionally,weprovide our associates with various learningopportunities to help ensure we develop and maintain organization,we build resilience,manage risk,and Akey source of pride for both myself and ourassociates is the commitment to community-orientedvalues that are deeply ingrained in our culture. Ourcommunity strategy focuses on collective impact todrivepositive societal outcomes.We bring togetherpeople from across the organization to create change Our commitment is reflected in the actions we takeand the partnerships we maintain through support oforganizations like the Bob Woodruff Foundation, KidsMentalHealth Foundation,ROX,andNationwide We are also supported by a strong leadership teamthat is key to our ability to deliver results and navigatechange.The leadership team is focused on settingclearstrategicpriorities,allocatingresourcesthoughtfully,and maintaining a culture rooted inaccountability and performance. We place a strong We are encouraged that our progress continues to berecognized externally, including being named amongtheWorld’s Best Companies for Sustainable Growthand America’s Most Sustainable Companies, as well as Our Associates: Key to our Success The Year Ahead Oursuccess begins w