8-K

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):

January 26, 2023

BREAD FINANCIAL HOLDINGS, INC.

(Exact Name of Registrant as Specified in Charter)

Delaware	001-15749	31-1429215
(State or Other Jurisdiction	(Commission	(IRS Employer
of Incorporation)	File Number)	Identification No.)

3095 LOYALTY CIRCLE

COLUMBUS, Ohio 43219

(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:

Title of each class	Trading symbol	Name of each exchange on which registered
Common Stock, par value $0.01 per share	BFH	NYSE

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 January 26, 2023, Bread Financial Holdings, Inc. (the “Company”) issued a press release regarding its results of operations for the fourth quarter and fiscal year ended December 31, 2022 (the “Q4 2022 Earnings Release”).  A copy of the Q4 2022 Earnings Release is furnished as Exhibit 99.1 hereto.

Item 7.01 Regulation FD Disclosure.

In connection with the Q4 2022 Earnings Release, on January 26, 2023, the Company made available an investor presentation that may be used by the Company’s senior management during meetings and calls with analysts, investors and other market participants, a copy of which is furnished as Exhibit 99.2 hereto and is posted on the Company’s website at www.breadfinancial.com on the “Investors” page under “Events & Presentations.” Information on the Company’s website does not constitute a part of this Current Report on Form 8-K.

In addition, on January 26, 2023, the Company issued a press release announcing a multi-year co-brand credit card agreement with the New York Yankees. A copy of the press release announcing the Company’s agreement with the New York Yankees is furnished as Exhibit 99.3 hereto.

Item 8.01 Other Events.

On January 26, 2023, the Company issued a press release announcing that the Board of Directors of the Company declared a quarterly cash dividend of $0.21 per share of common stock, payable on March 17, 2023 to stockholders of record at the close of business on February 10, 2023. A copy of the press release announcing the Company‘s quarterly dividend is attached as Exhibit 99.4 hereto.

Item 9.01 Financial Statements and Exhibits.

(d) Exhibits

Exhibit No.	Document Description
99.1	Press Release dated January 26, 2023 announcing the Company’s results of operations for the fourth quarter and fiscal year ended December 31, 2022.
99.2	Investor Presentation dated January 26, 2023.
99.3	Press Release dated January 26, 2023 announcing the Company’s agreement with the New York Yankees.
99.4	Press Release dated January 26, 2023 announcing the Company’s quarterly dividend.
104	Cover Page Interactive Data File (embedded within the Inline XBRL document).

Note: Except for the information in Item 8.01 hereof (including Exhibit 99.4 hereto), the information contained in this report (including Exhibits 99.1, 99.2 and 99.3) 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, except as expressly set forth by specific reference in such a filing.

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: January 26, 2023	By:	/s/ Joseph L. Motes III
		Joseph L. Motes III
		Executive Vice President, Chief Administrative Officer, General Counsel and Secretary

EX-99.1

Exhibit 99.1

 “During the fourth quarter, we announced a new multi-year agreement with the New York Yankees. This exciting relationship rewards   Yankees fans for their purchases and provides enhanced   benefits through a New York Yankees co-brand credit card, while further diversifying our brand partner base.  ($ in millions)  Fourth Quarter 2022  Full Year 2022  Net (loss) income  $(134)  $223  Earnings per Diluted Share  $(2.68)  $4.46  “We are excited to announce a new relationship with Hard   Rock International, which includes offering Hard Rock’s vast   customer base a new way to pay through our co-brand credit card, creating new experiences, providing special offers, and   strengthening customer loyalty for the brand. Hard Rock attracts a broad demographic given its offerings, further expanding our reach across generations.  Bread Financial Reports Fourth Quarter and Full Year 2022 Results  CEO COMMENTARY  “2022 was another successful transformational year for our company, starting with our rebrand to Bread Financial last March. We executed on our strategic objectives, including expanding our product offerings with the launch of the Bread Cashback™ American Express® Credit Card, securing new, diverse program agreements and long-term renewals with iconic brands, and advancing our technology modernization through major enhancements to our core platform and surrounding digital assets.  “We achieved our full year 2022 financial targets, delivering quality average loan growth of 13% year-over-year, as evidenced by a 19% increase in pretax pre-provision earnings (PPNR) versus 2021. We remained disciplined while continuing to invest in our future growth, generating over 200 basis points of positive operating leverage for the year. We further demonstrated our financial resilience with greater product and funding diversification, increased loss absorption capacity through our loan loss reserve build, and growth in capital and tangible book value.  “As the macroeconomic landscape evolves, we are closely monitoring the impact of inflation and higher interest rates on consumers. We are observing a shift toward non-discretionary spending with payment rates approaching pre-pandemic levels, and we continue to proactively adjust our underwriting and credit line management accordingly.   “Our seasoned leadership team is experienced in managing through the entire credit cycle, with an emphasis on responsible risk management and recession readiness planning.  “We remain focused on executing on   our strategic priorities and making the investments that position Bread Financial to drive sustainable, profitable growth.”  - Ralph Andretta, president and chief executive officer   COLUMBUS, Ohio, January 26, 2023 – 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 fourth quarter and full year ended December 31, 2022.  Fourth quarter net income was $(134) million, or $(2.68) per diluted share, with a reserve build of $380 million primarily due to strong loan growth in the quarter, including the required reserve build relating to the acquisition of the AAA credit card portfolio.  Total fourth quarter revenue was $1,033 million, up $178 million, or 21%, versus the fourth quarter of 2021.  As expected, normalization of credit metrics continued in the fourth quarter with a delinquency rate of 5.5% and a net loss rate of 6.3%.  “I am pleased with our solid business development efforts throughout 2022, including the addition of AAA and the NFL, as well as our multi-year renewal with Victoria’s Secret and its co-brand product launch. Our business development pipeline remains robust and diverse from a size, product, and industry standpoint. We will continue to leverage our full suite of lending products to attract and retain top brands and build upon our momentum in 2023,” said Ralph Andretta, president and chief executive officer of Bread Financial.  “We are also pleased to extend our long-standing relationship with Helzberg Diamonds, underscoring our strong position in the   jewelry space and optimizing the value proposition   that we offer to Helzberg customers,” Andretta noted.  Business Highlights    

 2023 Full Year Outlook  Macroeconomic Assumptions: “Our outlook assumes a more challenging macroeconomic landscape with continued inflationary pressures and an unemployment rate gradually moving to the mid-to-upper 4% range by year-end 2023. Our outlook continues to assume additional interest rate increases by the Federal Reserve will result in a nominal benefit to total net interest income.  Average Loan Growth: “Based on our new and renewed brand partner announcements, visibility into our pipeline, anticipated sale of the BJ’s Wholesale Club portfolio, and the current economic outlook, we expect full year 2023 average credit card and other loans to grow in the mid-single digit range relative to 2022.   Total Revenue: “Total revenue growth for 2023, excluding the anticipated portfolio gain on sale, is anticipated to align with average loan growth, with full year net interest margin similar to 2022.  Total Expenses: “As a result of ongoing investments in technology modernization, digital advancement, marketing, and product innovation, along with continued portfolio growth, we anticipate an increase in total full year expenses versus 2022 although the pace of growth is projected to decelerate versus the 2022 rate. We remain focused on delivering positive operating leverage for the full year as we manage the pace and timing of our investments to align with our full year revenue and growth outlook.   Net Loss Rate: “We expect a net loss rate of approximately 7% for 2023, inclusive of impacts from the 2022 transition of our credit card processing services as well as continued pressure on consumers’ ability to pay due to persistent inflation. We remain confident in our long-term guidance of a through-the-cycle average net loss rate below our historical average of 6%.   Effective Tax Rate: “We expect our full year normalized effective tax rate to be in the range of 25% to 26%, with quarter-over-quarter variability due to the timing of certain discrete items.”  CFO COMMENTARY  “Our fourth quarter financial results reflected continued strong momentum for the company, including year-over-year revenue growth of 21%, driven by 23% average loan growth and improved margins. Credit sales growth in the quarter of 16% was fueled by the addition of new brand partners during the year like the NFL and AAA, as well as new products and existing brand partner growth. As expected, our strong loan growth and the required reserve build related to the acquisition of the AAA portfolio resulted in a meaningful increase in our loan loss reserve which impacted our EPS and Net income in the fourth quarter.   “For the seventh consecutive quarter, PPNR grew year-over-year at a double-digit rate, reflecting our continued focus on delivering quality growth. As expected, fourth quarter expenses increased 13% versus the third quarter of 2022. Consistent with our strategic priorities, we continued to invest in technology modernization, digital advancement, marketing, and product innovation.   “Throughout the year, we made significant progress in strengthening our capital position and diversifying our funding mix. Retail direct-to-consumer deposits now account for $5.5 billion, or 26% of our total funding, and grew 72% year-over-year.  “Our full year financial results were in line with our expectation for normalization of consumer payment behavior in 2022. As expected, inflation and higher interest rates are broadly impacting consumers. We are proactively using our recession readiness playbook to ensure our current and future returns meet our profitability and risk tolerance thresholds.  “Additionally, we have continued to maintain conservative economic scenario weightings in our credit reserve modeling as a result of softness in economic indicators, including the increased cost of consumer debt and high inflation. We believe that our loan loss reserve provides for future loss absorption and protection should more adverse economic scenarios materialize.  “We remain confident in our ability to evaluate risk-reward trade-offs to create long-term value for our stakeholders.”  - Perry Beberman, executive vice president and chief financial officer 

 +21%  +13%  Key Operating and Financial Metrics(1)  Credit Metrics  (1) Reflective of the spinoff of Loyalty Ventures Inc. for all periods presented.  Note: The quarter and year ended December 31, 2022 Delinquency and Net loss rates were impacted by the transition of our credit card processing services.  nm – not meaningful  Pretax pre-provision earnings (PPNR) is a non-GAAP financial measure. See “Non-GAAP Financial Measures” and "Reconciliation of GAAP to Non-GAAP Financial Measures".  Diluted EPS  Continuing Operations(1)  Quarter Ended  Year Ended  December 31,   December 31,  ($ in millions, except per share amounts)  2022  2021  Change  2022  2021  Change  Total net interest and non-interest income (“Revenue”)  $ 1,033   $ 855    21%   $ 3,826   $ 3,272    17%   Net principal losses  $ 312   $ 176    77%   $ 968   $ 720    35%   Reserve build (release)  $ 380   $ 187    103%   $ 626   $ (176)  nm  Provision for credit losses  $ 692   $ 363    91%   $ 1,594   $ 544    193%   Total non-interest expenses  $ 548   $ 427    28%   $ 1,932   $ 1,684    15%   (Loss) income from continuing operations before income taxes  $ (207)  $ 65   nm  $ 300   $ 1,044    (71%)  (Loss) income from continuing operations  $ (134)  $ 61   nm  $ 224   $ 797    (72%)  (Loss) income from continuing operations per diluted share  $ (2.68)  $ 1.21   nm  $ 4.47   $ 15.95    (72%)  Weighted average shares outstanding – diluted  50.0  50.0  50.0  50.0  Pretax pre-provision earnings (PPNR)*  $ 485   $ 428    13%   $ 1,894   $ 1,588    19%   +16%  160 bps  190 bps 

 Fourth Quarter 2022 Compared with Fourth Quarter 2021 – Continuing Operations  Credit sales were $10.2 billion for the fourth quarter 2022, an increase of $1.4 billion, or 16%, versus the fourth quarter of 2021 driven by new brand partner additions including AAA and NFL, as well as new products and growth from existing brand partners.  Average and end-of-period credit card and other loans were $19.8 billion and $21.4 billion, respectively, each up 23%, driven by continued credit sales growth, new partner additions, as well as further moderation in the consumer payment rate.  Revenue increased $178 million, or 21%, resulting from higher average loan balances and improved loan yields. Net Interest Margin increased 30 basis points year-over-year and was lower sequentially due to seasonality, our acquisition of the AAA portfolio, and increased reversals of interest and fee revenues from higher gross losses.  Total non-interest expenses increased $121 million, or 28%, as card and processing expenses increased $30 million, or 37%, information processing and communications expenses increased $27 million, or 50%, and employee compensation and benefit costs increased $25 million, or 14%.  PPNR, a non-GAAP financial measure, increased $57 million, or 13%, reflecting sustainable, quality growth and continued success in executing on our strategic priorities.  Income from continuing operations decreased $195 million, as the improvement in PPNR was offset by a higher provision for credit losses reflecting both loan growth in the quarter, including the required reserve build related to the acquisition of the AAA portfolio, and a higher reserve rate, as well as increased net principal losses.  The Delinquency rate of 5.5% increased from 3.9% in 4Q21 and decreased from 5.7% in 3Q22. The year-over-year increase was the result of expected consumer payment rate normalization.  The Net loss rate of 6.3% increased from 4.4% in 4Q21 and 5.0% in 3Q22. The fourth quarter rate was impacted by the transition of our credit card processing services, as well as continued consumer payment rate normalization.   Contacts  Investor Relations: Brian Vereb (Brian.Vereb@breadfinancial.com)  Media Relations: Shelley Whiddon (Shelley.Whiddon@breadfinancial.com), 214-494-3811  Rachel Stultz (Rachel.Stultz@breadfinancial.com), 614-729-4890 

 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 market conditions, inflation, rising interest rates, unemployment levels and the increased probability of a recession, and the related impact on consumer payment rates, savings rates and other behavior; global political and public health events and conditions, including the ongoing war in Ukraine and the continuing effects of the global COVID-19 pandemic; future credit performance, including the level of future delinquency and write-off rates; the loss of, or reduction in demand from, significant brand partners or customers in the highly competitive markets in which we compete; the concentration of our business in U.S. consumer credit; inaccuracies in the models and estimates on which we rely, including the amount of our Allowance for credit losses and our credit risk management models; the inability to realize the intended benefits of acquisitions, dispositions and other strategic initiatives, including the spinoff of our former LoyaltyOne® segment; our level of indebtedness and ability to access financial or capital markets; pending and future legislation, 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 with respect to late fees, interchange fees or other charges; impacts arising from or relating to the transition of our credit card processing services to third party service providers that we completed in 2022; and failures or breaches in our operational or security systems, including as a result of cyberattacks, unanticipated impacts from technology modernization projects or otherwise. 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. Additional information will also be set forth in our Annual Report on Form 10-K for the year ended December 31, 2022. 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.   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 within this presentation, 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, Pretax pre-provision earnings (PPNR) is calculated by increasing/decreasing Income from continuing operations before income taxes by the net build/release in Provision for credit losses. We use PPNR as a metric to evaluate our results of operations before income taxes, excluding the volatility that can occur within Provision for credit losses. Tangible common equity over Tangible assets (TCE/TA) represents Total stockholders’ equity reduced by Goodwill and intangible assets, net, (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 cover potential losses. Tangible book value per common share represents TCE divided by shares outstanding. We use Tangible book value per common share as a metric to estimate the Company’s potential value in relation to tangible assets per share. 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”.  

 Conference Call / Webcast Information  Bread Financial will host a conference call on Thursday, January 26, 2023 at 8:30 a.m. (Eastern Time) to discuss the Company’s fourth quarter and full year 2022 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 FinancialTM (NYSE: BFH) is a tech-forward financial services company providing simple, personalized payment, lending and saving solutions. The company creates opportunities for its customers and partners through digitally enabled choices that offer ease, empowerment, financial flexibility and exceptional customer experiences. Driven by a digital-first approach, data insights and white-label technology, Bread Financial delivers growth for its partners through a comprehensive product suite, including private label and co-brand credit cards, installment lending, and buy now, pay later (BNPL). Bread Financial also offers direct-to-consumer solutions that give customers more access, choice and freedom through its branded Bread CashbackTM American Express® Credit Card and Bread SavingsTM products.  Headquartered in Columbus, Ohio, Bread Financial is powered by its 6,000+ global associates and is committed to sustainable business practices. To learn more about Bread Financial, visit BreadFinancial.com or follow us on Facebook, LinkedIn, Twitter and Instagram. 

 BREAD FINANCIAL HOLDINGS, INC.  UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF (LOSS) INCOME  (In millions, except per share amounts)  Pretax pre-provision earnings (PPNR) is a non-GAAP financial measure. See “Non-GAAP Financial Measures” and "Reconciliation of GAAP to Non-GAAP Financial Measures".  Three Months Ended December 31,  Twelve Months Ended December 31,  2022  2021  2022  2021  Interest income  Interest and fees on loans  $ 1,290   $ 1,015   $ 4,615   $ 3,861   Interest on cash and investment securities   35    2    69    7   Total interest income   1,325    1,017    4,684    3,868   Interest expense  Interest on deposits   102    37    243    167   Interest on borrowings   93    47    260    216   Total interest expense   195    84    503    383   Net interest income   1,130    933    4,181    3,485   Non-interest income  Interchange revenue, net of retailer share arrangements   (135)   (119)   (469)   (369)  Other   38    41    114    156   Total non-interest income   (97)   (78)   (355)   (213)  Total net interest and non-interest income   1,033    855    3,826    3,272   Provision for credit losses   692    363    1,594    544   Total net interest and non-interest income, after provision for credit losses   341    492    2,232    2,728   Non-interest expenses  Employee Compensation and Benefits   207    182    779    671   Card and Processing Expenses   111    81    359    323   Information Processing and Communication   82    55    274    216   Marketing Expense   56    47    180    160   Depreciation and Amortization   33    22    113    92   Other   59    40    227    222   Total non-interest expenses   548    427    1,932    1,684   (Loss) income from continuing operations before income taxes   (207)   65    300    1,044   Provision for income taxes   (73)   4    76    247   (Loss) income from continuing operations   (134)   61    224    797   Income (loss) from discontinued operations, net of taxes   —    (44)   (1)   4   Net (loss) income  $ (134)  $ 17   $ 223   $ 801   Basic income per share  (Loss) income from continuing operations  $ (2.69)  $ 1.22   $ 4.48   $ 16.02   Income (loss) from discontinued operations  $ —   $ (0.88)  $ (0.01)  $ 0.07   Net (loss) income per share  $ (2.69)  $ 0.34   $ 4.47   $ 16.09   Diluted income per share  (Loss) income from continuing operations  $ (2.68)  $ 1.21   $ 4.47   $ 15.95   Income (loss) from discontinued operations  $ —   $ (0.87)  $ (0.01)  $ 0.07   Net (loss) income per share  $ (2.68)  $ 0.34   $ 4.46   $ 16.02   Weighted average common shares outstanding  Basic   49.9    49.8    49.9    49.7   Diluted   50.0    50.0    50.0    50.0   Pretax pre-provision earnings (PPNR)*   $ 485   $ 428   $ 1,894   $ 1,588  

 BREAD FINANCIAL HOLDINGS, INC.  UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS  (In millions)  December 31, 2022  December 31, 2021  ASSETS  Cash and cash equivalents  $ 3,891   $ 3,046   Credit card and other loans:  Total credit card and other loans   21,365    17,399   Allowance for credit losses   (2,464)   (1,832)  Credit card and other loans, net   18,901    15,567   Investment securities   221    239   Property and equipment, net   195    215   Goodwill and intangible assets, net   799    687   Other assets   1,400    1,992   Total assets  $ 25,407   $ 21,746   LIABILITIES AND STOCKHOLDERS' EQUITY  Deposits  $ 13,826   $ 11,027   Debt issued by consolidated variable interest entities   6,115    5,453   Long-term and other debt   1,892    1,986   Other liabilities   1,309    1,194   Total liabilities   23,142    19,660   Total stockholders’ equity   2,265    2,086   Total liabilities and stockholders’ equity  $ 25,407   $ 21,746   Shares of common stock outstanding  49.9  49.8 

 Note: The unaudited Condensed Consolidated Statements of Cash Flows are presented reflecting the combined cash flows from continuing and discontinued operations.  BREAD FINANCIAL HOLDINGS, INC.  UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS  (In millions)  Year Ended    December 31,  2022  2021  CASH FLOWS FROM OPERATING ACTIVITIES:  Net income  $ 223   $ 801   Adjustments to reconcile net income to net cash provided by operating activities:  Provision for credit losses   1,594    544   Depreciation and amortization   113    123   Deferred income taxes   (245)   (15)  Non-cash stock compensation   33    29   Amortization of deferred financing costs   24    31   Amortization of deferred origination costs   86    75   Other   67    (4)  Change in other operating assets and liabilities, net of acquisitions and dispositions  Change in other assets   (134)   (30)  Change in other liabilities   87    (11)  Net cash provided by operating activities   1,848    1,543   CASH FLOWS FROM INVESTING ACTIVITIES:  Change in credit card and other loans   (3,222)   (1,805)  Change in redemption settlement assets   —    (113)  Payments for acquired businesses, net of cash and restricted cash   —    (75)  Proceeds from sale of credit card loan portfolio   —    512   Purchase of credit card loan portfolios   (1,804)   (110)  Capital expenditures   (68)   (84)  Purchases of investment securities   (43)   (93)  Maturities of investment securities   30    73   Other   (4)   4   Net cash (used in) provided by investing activities   (5,111)   (1,691)  CASH FLOWS FROM FINANCING ACTIVITIES:  Unsecured borrowings under debt agreements   218    38   Repayments/maturities of unsecured borrowings under debt agreements   (319)   (864)  Debt issued by consolidated variable interest entities   4,248    4,278   Repayments/maturities of debt issued by consolidated variable interest entities   (3,587)   (4,538)  Net increase (decrease) in deposits   2,778    1,228   Debt proceeds from spinoff of Loyalty Ventures Inc.   —    652   Transfers to Loyalty Ventures Inc. related to spinoff   —    (127)  Payment of deferred financing costs   (13)   (13)  Dividends paid   (43)   (42)  Repurchases of common stock   (12)   —   Other   (3)   (4)  Net cash provided by (used in) financing activities   3,267    608   Effect of foreign currency exchange rates on cash, cash equivalents and restricted cash   —    —   Change in cash, cash equivalents and restricted cash   4    460   Cash, cash equivalents and restricted cash at beginning of period   3,923    3,463   Cash, cash equivalents and restricted cash at end of period  $ 3,927   $ 3,923  

 BREAD FINANCIAL HOLDINGS, INC.  UNAUDITED SUMMARY FINANCIAL HIGHLIGHTS  (In millions, except per share amounts and percentages)  Three Months Ended December 31,  Twelve Months Ended December 31,  2022  2021  Change  2022  2021  Change  Credit sales  $ 10,166   $ 8,778    16%   $ 32,883   $ 29,603    11%   Average credit card and other loans  $ 19,820   $ 16,086    23%   $ 17,768   $ 15,656    13%   End-of-period credit card and other loans  $ 21,365   $ 17,399    23%   $ 21,365   $ 17,399    23%   End-of-period direct-to-consumer deposits  $ 5,466   $ 3,180    72%   $ 5,466   $ 3,180    72%   Return on average assets(1)   (2.2%)   1.1%    (3.3%)   1.0%    3.6%    (2.6%)  Return on average equity(2)   (23.3%)   11.1%    (34.4%)   9.8%    40.7%    (30.9%)  Net interest margin(3)   19.1%    18.8%    0.3%    19.2%    18.2%    1.0%   Loan yield(4)   26.0%    25.2%    0.8%    26.0%    24.7%    1.3%   Efficiency ratio(5)   53.1%    50.0%    3.1%    50.5%    51.5%    (1.0%)  Tangible common equity / tangible assets ratio (TCE/TA)(6)   6.0%    6.6%    (0.6%)   6.0%    6.6%    (0.6%)  Tangible book value per common share(7)  $ 29.42   $ 28.09    4.7%   $ 29.42   $ 28.09    4.7%   Cash dividend per common share  $ 0.21   $ 0.21    0.0%   $ 0.84   $ 0.84    0.0%   Payment rate(8)   16.4%    17.2%    (0.8%)   16.4%    17.2%    (0.8%)  Delinquency rate(9)   5.5%    3.9%    1.6%    5.5%    3.9%    1.6%   Net loss rate(9)   6.3%    4.4%    1.9%    5.4%    4.6%    0.8%   Reserve rate   11.5%    10.5%    1.0%    11.5%    10.5%    1.0%   (1) Return on average assets represents annualized Income from continuing operations divided by average Total assets.  (2) Return on average equity represents annualized Income from continuing operations divided by average Total stockholders’ equity.  (3) Net interest margin represents annualized Net interest income divided by average Total interest-earning assets.   (4) Loan yield represents annualized Interest and fees on loans divided by Average credit card and other loans.  (5) Efficiency ratio represents Total non-interest expenses divided by Total net interest and non-interest income.  (6) Tangible common equity (TCE) represents Total stockholders’ equity reduced by Goodwill and intangible assets, net. Tangible assets (TA) represents Total assets reduced by Goodwill and intangible assets, net. TCE/TA is a non-GAAP financial measure.  (7) Tangible book value per common share represents TCE divided by shares outstanding, and is a non-GAAP measure.  (8) Payment rate represents consumer payments during the last month of the period, divided by the beginning-of-month credit card and other loans, including held for sale in applicable periods.  (9) The three and twelve months ended December 31, 2022 Delinquency and Net Loss rates were impacted by the transition of our credit card processing services. 

 BREAD FINANCIAL HOLDINGS, INC.  RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES  (In millions, except percentages)  Three Months Ended December 31,  Twelve Months Ended December 31,  2022  2021  Change  2022  2021  Change  Pretax pre-provision earnings:  (Loss) income from continuing operations before income taxes  $ (207)  $ 65   nm  $ 300   $ 1,044    (71%)  Provision for credit losses   692    363    91%    1,594    544    193%   Pretax pre-provision earnings (PPNR)  $ 485   $ 428    13%   $ 1,894   $ 1,588    19%   Tangible common equity (TCE)  Total stockholders’ equity   2,265    2,086    9%    2,265    2,086    9%   Less: Goodwill and intangible assets, net   (799)   (687)   16%    (799)   (687)   16%   Tangible common equity (TCE)  $ 1,466   $ 1,399    5%   $ 1,466   $ 1,399    5%   Tangible assets (TA)  Total assets   25,407    21,746    17%    25,407    21,746    17%   Less: Goodwill and intangible assets, net   (799)   (687)   16%    (799)   (687)   16%   Tangible assets (TA)  $ 24,608   $ 21,059    17%   $ 24,608   $ 21,059    17%  

EX-99.2

Exhibit 99.2

 Bread Financial  Fourth Quarter and Full Year  2022 Results  January 26, 2023  ©2022 Bread Financial | Confidential & Proprietary  1  Ralph Andretta  President & CEO  Perry Beberman  EVP & CFO 

 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 market conditions, inflation, rising interest rates, unemployment levels and the increased probability of a recession, and the related impact on consumer payment rates, savings rates and other behavior; global political and public health events and conditions, including the ongoing war in Ukraine and the continuing effects of the global COVID-19 pandemic; future credit performance, including the level of future delinquency and write-off rates; the loss of, or reduction in demand from, significant brand partners or customers in the highly competitive markets in which we compete; the concentration of our business in U.S. consumer credit; inaccuracies in the models and estimates on which we rely, including the amount of our Allowance for credit losses and our credit risk management models; the inability to realize the intended benefits of acquisitions, dispositions and other strategic initiatives, including the spinoff of our former LoyaltyOne® segment; our level of indebtedness and ability to access financial or capital markets; pending and future legislation, 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 with respect to late fees, interchange fees or other charges; impacts arising from or relating to the transition of our credit card processing services to third party service providers that we completed in 2022; and failures or breaches in our operational or security systems, including as a result of cyberattacks, unanticipated impacts from technology modernization projects or otherwise. 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. Additional information will also be set forth in our Annual Report on Form 10-K for the year ended December 31, 2022. 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.   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 within this presentation, 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, Pretax pre-provision earnings (PPNR) is calculated by increasing/decreasing Income from continuing operations before income taxes by the net build/release in Provision for credit losses. We use PPNR as a metric to evaluate our results of operations before income taxes, excluding the volatility that can occur within Provision for credit losses. Tangible common equity over Tangible assets (TCE/TA) represents Total stockholders’ equity reduced by Goodwill and intangible assets, net, (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 cover potential losses. Tangible book value per common share represents TCE divided by shares outstanding. We use Tangible book value per common share as a metric to estimate the Company’s potential value in relation to tangible assets per share. 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”.  

 ©2023 Bread Financial  Continued Business Transformation in 2022  Transforming our Company to deliver sustainable, profitable growth  3  Enhanced our core technology and digital capabilities  Invested more than $125 million in technology modernization, digital advancement, marketing, and product innovation  Rebranded to Bread Financial, a tech-forward financial services company  Recognized for our prioritization of Environmental, Social, and Governance  Successfully launched new brand partners and renewed long-term relationships  Expanded our product suite and direct-to-consumer offerings 

 ©2023 Bread Financial  Full Year 2021  Actuals  Full Year 2022  Outlook  Full Year 2022  Actuals  Average loans   $15,656 million  Up low   double digits  Up 13%  $17,768 million  Revenue  $3,272 million  Aligned with / better than   loan growth   Up 17%  $3,826 million  Total non-interest expenses  $1,684 million  Positive operating leverage  Positive operating leverage = 2%  $1,932 million  Net loss rate  4.6%  Low-to-mid   5% range  5.4%  Achievement of 2022 Financial Outlook  4  Additional Financial Achievements  Quality growth as PPNR increased 19% compared with 2021  Strengthened financial resilience through improvement in capital positioning and debt reduction  Increased credit loss absorption capacity through loan loss reserves  Grew retail deposits on our Bread Savings platform to $5.5 billion, an increase of $2.3 billion or 72%  ☑  ☑  ☑  ☑  4 

 4Q22 Business Development Highlights  Brand Partner Renewal  New Brand Partnerships  Select New Bread Pay Partners  Continued strong merchant adoption  boutique tech retailer  luxury handbags  tires, wheels &   auto parts  online jewelry &   accessories retailer  exercise & fitness  equipment 

 $1,033 million  Revenue  $(134) million  Net Loss  $(2.68)  Diluted EPS  6  Fourth Quarter 2022 Financial Highlights  Credit sales of $10.2 billion were up 16% versus 4Q21 driven by new brand partner additions including AAA and NFL, as well as new products and growth from existing brand partners  Fourth quarter average loans of $19.8 billion were up 23% versus 4Q21  Revenue increased 21% versus 4Q21, while total non-interest expenses increased 28%  Income from continuing operations decreased $195 million versus 4Q21, as the improvement in PPNR was offset by a higher provision for credit losses reflecting loan growth in the quarter, including the acquisition of the AAA portfolio, a higher reserve rate, and increased net principal losses  Credit performance metrics continued to normalize, as expected  ©2023 Bread Financial 

 $3,826 million  Revenue  $224 million  Net Income  $4.47  Diluted EPS  7  Credit sales of $32.9 billion were up 11% versus 2021 driven by organic growth, as well as new product and brand partner additions  Full year 2022 average loans of $17.8 billion were up 13% versus 2021  Revenue increased 17% versus 2021, while total non-interest expenses increased 15%  Income from continuing operations of $224 million was down 72% versus 2021, as PPNR growth was more than offset by higher provision for credit losses reflecting strong loan growth, including the acquisition of new portfolios, a higher reserve rate, and increased net principal losses  Credit performance metrics continued to normalize, as expected  Full Year 2022 Financial Highlights  Continuing Operations  ©2023 Bread Financial 

  * Pretax pre-provision earnings (PPNR) is a non-GAAP financial measure. See “Non-GAAP Financial Measures” and "Reconciliation of GAAP to Non-GAAP Financial Measures".  nm – not meaningful  ($ in millions, except per share)  4Q22  4Q21  $ Chg  % Chg  2022  2021  $ Chg  % Chg  Total interest income  $ 1,325   $ 1,017   $ 308    30%   $ 4,684   $ 3,868   $ 816    21%   Total interest expense   195    84    111    132%    503    383    120    31%   Net interest income   1,130    933    197    21%    4,181    3,485    696    20%   Total non-interest income   (97)   (78)   (19)   24%    (355)   (213)   (142)   66%   Revenue   1,033    855    178    21%    3,826    3,272    554    17%   Net principal losses  312  176   136    77%   968  720   248    35%   Reserve build (release)  380  187   193    103%   626  (176)   802   nm  Provision for credit losses  692  363   329    91%   1,594  544   1,050    193%   Total non-interest expenses   548    427    121    28%    1,932    1,684    248    15%    (Loss) income before income taxes   (207)   65    (272)  nm   300    1,044    (744)   (71%)  Provision for income taxes   (73)   4    (77)  nm   76    247    (171)   (69%)  Net (loss) income  $ (134)  $ 61   $ (195)  nm  $ 224   $ 797   $ (573)   (72%)  Net (loss) income per diluted share  $ (2.68)  $ 1.21   $ (3.89)  nm  $ 4.47   $ 15.95   $ (11.48)   (72%)  Weighted avg. shares outstanding – diluted  50.0  50.0  50.0  50.0  Pretax pre-provision earnings (PPNR)*  $ 485   $ 428   $ 57    13%   $ 1,894   $ 1,588   $ 306    19%   $ in millions  +13%  +19%  Financial Results  Continuing Operations 

 Average interest-bearing liabilities   ($ in billions)  Average interest-earning assets   ($ in billions)  Net Interest Margin  84%  84%  81%  81%  81%  81%  81%  81%  84%  16%  16%  19%  19%  19%  19%  19%  19%  16%  26%  27%  26%  28%  26%  28%  29%  26%  25%  17%  16%  17%  16%  14%  11%  11%  10%  10%  10%  11%  13%  15%  18%  19%  22%  27%  26%  47%  46%  44%  41%  42%  42%  38%  37%  39% 

 5 year peak rate: 7.6%  5 year low rate: 3.9%  5 year avg rate: ~6.0%  5 year peak rate: 6.0%  5 year avg rate: ~5.0%  5 year low rate: 3.3%  Reserve Rates  ($ in millions)  Revolving Credit Risk Distribution  (Vantage score)  Credit Quality and Allowance  (1) The 2Q22 Net loss rate includes a 30 basis point increase from the effects of the purchase of previously written-off accounts that were sold to a third-party debt collection agency.  (2) Calculated as the percentage of the Allowance for credit losses to end-of-period Credit card and other loans.  (1)  Note: The 3Q22 and 4Q22 Delinquency and Net loss rates were impacted by the transition of our credit card processing services. 

 Full Year 2022  Actuals  Full Year 2023  Outlook  Commentary  Average loans   $17,768 million  Up mid-  single digits  Based on our new and renewed business announcements, visibility into our pipeline, anticipated BJ's portfolio sale, and our current economic outlook, we expect full year 2023 average credit card and other loans to grow in the mid-single digit range relative to 2022  Revenue  $3,826 million  Aligned with   loan growth  Net interest margin expected to remain similar to the 2022 full year rate of 19.2%  Our outlook continues to assume additional interest rate increases by the Federal Reserve will result in a nominal benefit to total net interest income  Guidance excludes anticipated gain on sale   Total non-interest expenses  $1,932 million  Positive operating leverage  We will manage the pace of investments to align with our revenue and growth outlook  Includes ongoing strategic investment in technology modernization, digital advancement, marketing, and product innovation driving future growth and efficiencies  Expect to deliver nominal full year positive operating leverage, excluding anticipated gain on sale  Net loss rate  5.4%  ~7%  Our outlook is inclusive of impacts from the 2022 transition of our credit card processing services as well as continued pressure on consumers’ ability to pay due to persistent inflation and higher rates   We remain confident in our long-term guidance of a through-the-cycle average net loss rate below our historical average of 6%  2023 Financial Outlook  Our 2023 financial outlook assumes a more challenging macroeconomic landscape with continued inflationary pressures and an unemployment rate gradually moving to the mid-to-upper 4% range by year end 2023. We will update our guidance as these factors change. 

 Enhanced credit risk management and underlying credit distribution   Improved balance sheet strength and funding mix  Strong corporate governance  Prudent balance sheet management  Disciplined expense management  Proactive risk management  Loan loss reserve materially higher  Capital ratios significantly improved  Increased mix of consumer deposits  Diversification across products and partners  Prudent and proactive line management  Active recession readiness playbook  Enhanced core capabilities  Credit mix shift to higher quality  Well-established risk appetite metrics  Reduced debt levels  Strengthened Financial Resilience  Transforming our Company to deliver sustainable, profitable growth with an expectation to outperform historic loss levels 

 Appendix  ©2022 Bread Financial | Confidential & Proprietary  13 

 Average Loans and Credit Sales 

 Pretax Pre-Provision Earnings*  The fourth quarter 2022 marks the seventh consecutive quarter with double-digit year-over-year growth.   * Pretax pre-provision earnings (PPNR) is a non-GAAP financial measure. See “Non-GAAP Financial Measures” and "Reconciliation of GAAP to Non-GAAP Financial Measures".  23%  14%  52%  24%  24%  17%  13% 

 Total non-interest expenses increased 28% versus 4Q21  Employee compensation and benefit costs increased primarily driven by increased salaries and continued digital and technology modernization-related hiring  Card and processing expenses increased in part due to an increase in card issuance volume and related activities  Information processing and communications expenses increased as a result of the transition of our credit card processing services and other software licensing expenses  Other expenses increased primarily due to increased legal and other business activity costs  Total Non-Interest Expenses  14%  37%  50%  18%  48%  49%  +28%  +15%  +3%  -1%  4Q22 vs. 4Q21 Change in Non-Interest Expenses  * Efficiency ratio represents Total non-interest expenses divided by Total net interest and non-interest income. 

 .  .  .  .  .  (6) Tangible common equity (TCE) represents Total stockholders’ equity reduced by Goodwill and intangible assets, net. Tangible assets (TA) represents Total assets reduced by Goodwill and intangible assets, net. TCE/TA is a non-GAAP financial measure.  (7) Tangible book value per common share represents TCE divided by shares outstanding, and is a non-GAAP measure.  (8) Payment rate represents consumer payments during the last month of the period, divided by the beginning-of-month credit card and other loans, including held for sale in applicable periods.  (9) The 3Q22, 4Q22, and full year 2022 Delinquency and Net Loss rates were impacted by the transition of our credit card processing services.  ($ in millions)  4Q22  4Q21  4Q22 vs 4Q21  3Q22  4Q22 vs 3Q22  2022  2021  2022 vs 2021  Credit sales  $ 10,166   $ 8,778    16%   $ 7,689    32%   $ 32,883   $ 29,603    11%   Average credit card and other loans  $ 19,820   $ 16,086    23%   $ 17,598    13%   $ 17,768   $ 15,656    13%   End-of-period credit card and other loans  $ 21,365   $ 17,399    23%   $ 18,126    18%   $ 21,365   $ 17,399    23%   End-of-period direct-to-consumer deposits  $ 5,466   $ 3,180    72%   $ 5,176    6%   $ 5,466   $ 3,180    72%   Return on average assets(1)   (2.2%)   1.1%    (3.3%)   2.4%    (4.6%)   1.0%    3.6%    (2.6%)  Return on average equity(2)   (23.3%)   11.1%    (34.4%)   22.8%    (46.1%)   9.8%    40.7%    (30.9%)  Net interest margin(3)   19.1%    18.8%    0.3%    19.9%    (0.8%)   19.2%    18.2%    1.0%   Loan yield(4)   26.0%    25.2%    0.8%    27.2%    (1.2%)   26.0%    24.7%    1.3%   Efficiency ratio(5)   53.1%    50.0%    3.1%    49.7%    3.4%    50.5%    51.5%    (1.0%)  Tangible common equity / tangible assets ratio (TCE/TA)(6)   6.0%    6.6%    (0.6%)   8.0%    (2.0%)   6.0%    6.6%    (0.6%)  Tangible book value per common share(7)  $ 29.42  $ 28.09   4.7%   $ 34.30   (14.2%)  $ 29.42  $ 28.09   4.7%   Cash dividend declared per common share  $ 0.21  $ 0.21   —%   $ 0.21   —%   $ 0.84  $ 0.84   —%   Payment rate(8)   16.4%    17.2%    (0.8%)   15.5%    0.9%    16.4%    17.2%    (0.8%)  Delinquency rate(9)   5.5%    3.9%    1.6%    5.7%    (0.2%)   5.5%    3.9%    1.6%   Net loss rate(9)   6.3%    4.4%    1.9%    5.0%    1.3%    5.4%    4.6%    0.8%   Reserve rate   11.5%    10.5%    1.0%    11.4%    0.1%    11.5%    10.5%    1.0%   Summary Financial Highlights  Continuing Operations  (1) Return on average assets represents annualized Income from continuing operations divided by average Total assets.  (2) Return on average equity represents annualized Income from continuing operations divided by average Total stockholders’ equity.  (3) Net interest margin represents annualized Net interest income divided by average Total interest-earning assets.   (4) Loan yield represents annualized Interest and fees on loans divided by Average credit card and other loans.  (5) Efficiency ratio represents Total non-interest expenses divided by Total net interest and non-interest income. 

 .  .  .  .  (5) Efficiency ratio represents Total non-interest expenses divided by Total net interest and non-interest income..  (6) Tangible common equity (TCE) represents Total stockholders’ equity reduced by Goodwill and intangible assets, net. Tangible assets (TA) represents Total assets reduced by Goodwill and intangible assets, net. TCE/TA is a non-GAAP financial measure.  (7) Tangible book value per common share represents TCE divided by shares outstanding, and is a non-GAAP measure.  (8) Payment rate represents consumer payments during the last month of the period, divided by the beginning-of-month credit card and other loans, including held for sale in applicable periods.  ($ in millions)  4Q20  1Q21  2Q21  3Q21  4Q21  1Q22  2Q22  3Q22  4Q22  2021  2022  Credit sales  $ 7,657   $ 6,043   $ 7,401   $ 7,380   $ 8,778   $ 6,887   $ 8,140   $ 7,689   $ 10,166   $ 29,603   $ 32,883   Year-over-year change   (18%)   (1%)   54%    20%    15%    14%    10%    4%    16%    20%    11%   Average credit card and other loans  $ 15,759   $ 15,785   $ 15,282   $ 15,471   $ 16,086   $ 16,650   $ 17,003   $ 17,598   $ 19,820   $ 15,656   $ 17,768   Year-over-year change   (13%)   (14%)   (5%)   1%    2%    5%    11%    14%    23%    (4%)   13%   End-of-period credit card and other loans  $ 16,784   $ 15,537   $ 15,724   $ 15,690   $ 17,399   $ 16,843   $ 17,769   $ 18,126   $ 21,365   $ 17,399   $ 21,365   Year-over-year change   (14%)   (12%)   (1%)   1%    4%    8%    13%    16%    23%    4%    23%   End-of-period direct-to-consumer deposits  $ 1,700   $ 2,152   $ 2,398   $ 3,052   $ 3,180   $ 3,561   $ 4,191   $ 5,176   $ 5,466   $ 3,180   $ 5,466   Year-over-year change   46%    81%    30%    79%    87%    66%    75%    70%    72%    87%    72%   Return on average assets(1)   1.4%    4.9%    4.8%    3.7%    1.1%    4.0%    0.2%    2.4%    (2.2%)   3.6%    1.0%   Return on average equity(2)   21.3%    66.3%    56.4%    38.0%    11.1%    38.5%    2.2%    22.8%    (23.3%)   40.7%    9.8%   Net interest margin(3)   17.8%    17.7%    17.3%    18.9%    18.8%    19.4%    18.6%    19.9%    19.1%    18.2%    19.2%   Loan yield(4)   24.1%    23.8%    23.9%    25.6%    25.2%    25.6%    25.0%    27.2%    26.0%    24.7%    26.0%   Efficiency ratio(5)   63.4%    50.1%    55.5%    50.6%    50.0%    46.2%    52.9%    49.7%    53.1%    51.5%    50.5%   Tangible common equity / tangible assets ratio (TCE/TA)(6)   3.7%    5.2%    6.4%    7.2%    6.6%    7.8%    7.5%    8.0%    6.0%    6.6%    6.0%   Tangible book value per common share(7)  $ 16.34   $ 21.32   $ 27.12   $ 31.18   $ 28.09   $ 31.87   $ 31.75   $ 34.30   $ 29.42   $ 28.09   $ 29.42   Cash dividend declared per common share  $ 0.21   $ 0.21   $ 0.21   $ 0.21   $ 0.21   $ 0.21   $ 0.21   $ 0.21   $ 0.21   $ 0.84   $ 0.84   Payment rate(8)   16.2%    18.8%    17.6%    16.7%    17.2%    17.7%    15.3%    15.5%    16.4%    17.2%    16.4%   Delinquency rate   4.4%    3.8%    3.3%    3.8%    3.9%    4.1%    4.4%    5.7%    5.5%    3.9%    5.5%   Net principal loss rate   6.0%    5.0%    5.1%    3.9%    4.4%    4.8%    5.6%    5.0%    6.3%    4.6%    5.4%   Reserve rate   12.0%    11.9%    10.4%    10.5%    10.5%    10.8%    11.2%    11.4%    11.5%    10.5%    11.5%   Summary Financial Highlights  Continuing Operations  (1) Return on average assets represents annualized Income from continuing operations divided by average Total assets.  (2) Return on average equity represents annualized Income from continuing operations divided by average Total stockholders’ equity.  (3) Net interest margin represents annualized Net interest income divided by average Total interest-earning assets.   (4) Loan yield represents annualized Interest and fees on loans divided by Average credit card and other loans. 

 ($ in millions, except per share)  4Q20  1Q21  2Q21  3Q21  4Q21  1Q22  2Q22  3Q22  4Q22  2021  2022  Total interest income  $ 950   $ 942   $ 915   $ 994   $ 1,017   $ 1,068   $ 1,073   $ 1,218   $ 1,325   $ 3,868   $ 4,684   Total interest expense   112    107    100    91    84    79    95    133    195    383    503   Net interest income   838    835    815    903    933    989    978    1,085    1,130    3,485    4,181   Total non-interest income   (69)   (33)   (51)   (52)   (78)   (68)   (85)   (106)   (97)   (213)   (355)  Revenue   769    802    764    851    855    921    893    979    1,033    3,272    3,826   Net principal losses   235    198    194    152    176    199    238    218    312    720    968   Reserve build (release)   (82)   (165)   (208)   9    187    (6)   166    86    380    (176)   626   Provision for credit losses   153    33    (14)   161    363    193    404    304    692    544    1,594   Total non-interest expenses   487    402    424    431    427    426    473    486    548    1,684    1,932   Income (loss) before income taxes   129    367    354    259    65    302    16    189    (207)   1,044    300   Provision for income taxes   55    99    91    53    4    91    4    55    (73)   247    76   Net income (loss)  $ 74   $ 268   $ 263   $ 206   $ 61   $ 211   $ 12   $ 134   $ (134)  $ 797   $ 224   Net income (loss) per diluted share  $ 1.54   $ 5.38   $ 5.25   $ 4.11   $ 1.21   $ 4.21   $ 0.25   $ 2.69   $ (2.68)  $ 15.95   $ 4.47   Weighted average shares outstanding – diluted   48.4  49.8  50.0  50.0  50.0  50.0  49.9  49.9  50.0  50.0  50.0  Pretax pre-provision earnings (PPNR)*  $ 282   $ 400   $ 340   $ 420   $ 428   $ 495   $ 420   $ 493   $ 485   $ 1,588   $ 1,894   Pretax pre-provision earnings (PPNR) is a non-GAAP financial measure. See “Non-GAAP Financial Measures” and "Reconciliation of GAAP to Non-GAAP Financial Measures".  Financial Results  Continuing Operations 

 4Q22  2022  ($ in millions)  Average Balance  Interest Income / Expense  Average Yield / Rate  Average Balance  Interest Income / Expense  Average Yield / Rate  Cash and investment securities  $ 3,813   $ 35    3.7%   $ 3,954   $ 69    1.8%   Credit card and other loans   19,820    1,290    26.0%    17,768    4,615    26.0%   Total interest-earning assets   23,633    1,325    22.4%    21,722    4,684    21.6%   Direct-to-consumer (Retail)   5,374    40    2.9%    4,342    81    1.9%   Wholesale deposits   7,915    62    3.1%    7,358    162    2.2%   Interest-bearing deposits   13,289    102    3.1%    11,700    243    2.1%   Secured borrowings   5,065    64    5.1%    5,089    153    3.0%   Unsecured borrowings   1,928    29    6.1%    1,966    107    5.5%   Interest-bearing borrowings   6,993    93    5.4%    7,055    260    3.7%   Total interest-bearing liabilities  $ 20,282   $ 195    3.9%   $ 18,755   $ 503    2.7%   Net interest income  $ 1,130   $ 4,181   Net interest margin*   19.1%    19.2%   Net interest margin represents annualized Net interest income divided by average Total interest-earning assets.   Net Interest Margin 

 Banks Combined Capital Ratios  4Q20  1Q21  2Q21  3Q21  4Q21  1Q22  2Q22  3Q22  4Q22  Common equity tier 1 capital ratio(2)   18.4%    21.0%    22.1%    22.6%    20.0%    20.8%    20.1%    19.4%    17.0%   Tier 1 capital ratio(3)   18.4%    21.0%    22.1%    22.6%    20.0%    20.8%    20.1%    19.4%    17.0%   Total risk-based capital ratio(4)   19.7%    22.3%    23.4%    23.9%    21.3%    22.1%    21.5%    20.7%    18.3%   Tier 1 leverage capital ratio(5)   17.1%    17.8%    19.2%    19.5%    18.6%    18.2%    17.7%    16.3%    15.6%   Parent Level:  Liquidity as of December 31, 2022, of $0.9 billion, consisting of cash on hand plus revolver capacity  Bank Level (Banks Combined):  As of December 31, 2022, the banks finished the quarter with $3.8 billion in cash on hand and $3.3 billion in equity  Total risk-based capital ratio at 18.3% - nearly double the 10% threshold to be considered well-capitalized; CET1 at 17.0%  Funding in place to support expected growth outlook – with continued long-term strategic focus on retail deposit growth  (1) Tangible common equity (TCE) represents Total stockholders’ equity reduced by Goodwill and intangible assets, net. Tangible assets (TA) represents Total assets reduced by Goodwill and intangible assets, net. TCE/TA is a non-GAAP financial measure.  (2) The Common equity tier 1 capital ratio represents common equity tier 1 capital divided by total risk-weighted assets.  (3) The Tier 1 capital ratio represents tier 1 capital divided by total risk-weighted assets.  (4) The Total risk-based capital ratio represents total capital divided by total risk-weighted assets.   (5) The Tier 1 leverage capital ratio represents tier 1 capital divided by total assets for leverage ratio.   Tangible Common Equity/Tangible Assets Ratio(1)  -0.6%  Capital and Liquidity 

 -33%  Loss Absorption Capacity and Debt Levels  Capital Priorities  Support Profitable Growth   Opportunities  Improve Capital Metrics   & Reduce Debt Levels  Efficient Return of Capital   to Shareholders  * The “Tangible Common Equity + Credit Reserves Rate” is calculated as the sum of Tangible common equity and Allowance for credit losses divided by End-of-period loans. This is a non-GAAP financial measure. See “Non-GAAP Financial Measures” and “Reconciliation of GAAP to Non-GAAP Financial Measures”. 

 ($ in millions, except per share amounts)  4Q22  4Q21  $ Chg  % Chg  2022  2021  $ Chg  % Chg  (Loss) income from continuing operations, net of taxes  $ (134)  $ 61   $ (195)  nm  $ 224   $ 797   $ (573)   (72%)  Income (loss) from discontinued operations, net of taxes   0    (44)   44    (100%)   (1)   4    (5)   (111%)  Net (loss) income  $ (134)  $ 17   $ (151)  nm  $ 223   $ 801   $ (578)   (72%)  Net (loss) income per diluted share from continuing ops  $ (2.68)  $ 1.21   $ (3.89)  nm  $ 4.47   $ 15.95   $ (11.48)   (72%)  Net income (loss) per diluted share from discontinued ops  $ —   $ (0.87)  $ 0.87    (100%)  $ (0.01)  $ 0.07   $ (0.08)   (111%)  Net (loss) income per diluted share  $ (2.68)  $ 0.34   $ (3.02)  nm  $ 4.46   $ 16.02   $ (11.56)   (72%)  Weighted average shares outstanding – diluted (in millions)  50.0  50.0  50.0  50.0  nm – not meaningful  Financial Results 

 ($ in millions)  4Q20  1Q21  2Q21  3Q21  4Q21  1Q22  2Q22  3Q22  4Q22  2021  2022  Pretax pre-provision earnings (PPNR)  Income (loss) before income taxes  $ 129   $ 367   $ 354   $ 259   $ 65   $ 302   $ 16   $ 189   $ (207)  $ 1,044   $ 300   Provision for credit losses   153    33    (14)   161    363    193    404    304    692    544    1,594   Pretax pre-provision earnings (PPNR)  $ 282   $ 400   $ 340   $ 420   $ 428   $ 495   $ 420   $ 493   $ 485   $ 1,588   $ 1,894   Tangible common equity (TCE)  Total stockholders’ equity  $ 1,522   $ 1,764   $ 2,048   $ 2,246   $ 2,086   $ 2,268   $ 2,275   $ 2,399   $ 2,265   $ 2,086   $ 2,265   Less: Goodwill and intangible assets, net   (710)   (704)   (699)   (694)   (687)   (682)   (694)   (690)   (799)   (687)   (799)  Tangible common equity (TCE)  $ 812   $ 1,060   $ 1,349   $ 1,552   $ 1,399   $ 1,586   $ 1,581   $ 1,709   $ 1,466   $ 1,399   $ 1,466   Tangible assets (TA)  Total assets  $ 22,547   $ 21,163   $ 21,812   $ 22,257   $ 21,746   $ 20,938   $ 21,811   $ 21,960   $ 25,407   $ 21,746   $ 25,407   Less: Goodwill and intangible assets, net   (710)   (704)   (699)   (694)   (687)   (682)   (694)   (690)   (799)   (687)   (799)  Tangible assets (TA)  $ 21,837   $ 20,459   $ 21,113   $ 21,563   $ 21,059   $ 20,256   $ 21,117   $ 21,270   $ 24,608   $ 21,059   $ 24,608   Reconciliation of GAAP to Non-GAAP Financial Measures 

 5 year peak rate: 7.6%  5 year low rate: 3.9%  5 year avg rate: ~6.0%  5 year peak rate: 6.0%  5 year avg rate: ~5.0%  5 year low rate: 3.3%  Credit Quality Trends  (2)  (1) Peak Delinquency and Net loss rates occurred in 2009.  (2) The 2Q22 Net loss rate includes a 30 basis point increase from the effects of the purchase of previously written-off accounts that were sold to a third-party debt collection agency.   Note: The 3Q22 and 4Q22 Delinquency and Net loss rates were impacted by the transition of our credit card processing services.  Delinquency Rates  Net Loss Rates  15 year peak rate(1): 10.0%  15 year peak rate(1): 6.2% 

EX-99.3

Exhibit 99.3

Bread Financial™ Teams Up with the New York Yankees^® to Offer Co-Brand Credit Card,

Rewards Program for Loyal Fans

The New York Yankees Mastercard^® Credit Card will provide cardholders with exclusive experiences and unique

benefits from their favorite team

COLUMBUS, Ohio – Jan. 26, 2023 – Bread Financial (NYSE: BFH), a tech-forward financial services company that provides simple, personalized payment, lending and saving solutions, today announced a multi-year co-brand credit card agreement with the New York Yankees, one of America’s most iconic sports franchises. Launching prior to the start of the 2023 Major League Baseball season, the New York Yankees Mastercard will reward loyal fans for their purchases with exclusive benefits.

Cardholders can earn 5% back on all purchases made at Yankee Stadium concessions and shops, 3% on dining, gas, rideshare and transit, and 1% on all other purchases. Bread Financial worked with the New York Yankees to understand its fans’ preferences, interests and motivators to develop a rewards program, Pinstripe Rewards, which will launch in tandem with the card. Cardholders can

redeem their earned points for game tickets and exclusive experiences like access to alumni dinners, stadium tours, pre-game meet and greets, memorabilia and much more.

The New York Yankees will leverage Bread Financial’s digital capabilities, including in-stadium QR codes, so fans can quickly and easily apply for the card. Once approved, fans can immediately add the card to their digital wallets to begin saving and earning rewards at the game.

“Bread Financial is proud to be working with the New York Yankees by providing this unique co-brand credit card offering that will help drive fan engagement, loyalty and

sales for their organization while also delivering a highly compelling value proposition for its cardholders,” said Val Greer, EVP and chief commercial officer, Bread Financial. “We are so pleased to extend our credit and loyalty products to one of the world’s most recognized and respected sports franchises and look forward to delivering a compelling offering that excites their fans on and off the field.”

"The New York Yankees are excited to leverage the expertise and insight of Bread Financial, which can offer our fans a customized and straightforward credit card experience,” said Michael Tusiani, SVP of partnerships, New York Yankees. “Additionally, the rewards and benefits program associated with the New York Yankees Mastercard is sure to be a win for fans both inside and outside of the Stadium.”

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About Bread Financial^™
Bread Financial^TM (NYSE: BFH) is a tech-forward financial services company providing simple, personalized payment, lending and saving solutions. The company creates opportunities for its customers and partners through digitally enabled choices that offer ease, empowerment, financial flexibility and exceptional customer experiences. Driven by a digital-first approach, data insights and white-label technology, Bread Financial delivers growth for its partners through a comprehensive product suite, including private label and co-brand credit cards, installment lending, and buy now, pay later (BNPL). Through its Comenity-branded financial services, Bread Financial also offers credit and savings products to consumers.

Headquartered in Columbus, Ohio, Bread Financial is powered by its 6,000+ global associates and is committed to sustainable business practices. To learn more about Bread Financial, visit BreadFinancial.com or follow us on Facebook, LinkedIn, Twitter and Instagram.

About the New York Yankees

Founded in 1903, the New York Yankees are the most successful and popular team in Major League Baseball history, having won 27 championships while appearing in 40 World Series. The club plays its home games at Yankee Stadium, which is one of New York City’s most-frequented tourist destinations and home to numerous non-baseball events, including college football’s Bad Boy Mowers Pinstripe Bowl. As a result of their on-field accomplishments and iconic interlocking “NY” logo, the New York Yankees are among the most recognized brands in the world.

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 market conditions, inflation, rising interest rates, unemployment levels and the increased probability of a recession, and the related impact on consumer payment rates, savings rates and other behavior; global political and public health events and conditions, including the ongoing war in Ukraine and the continuing effects of the global COVID-19 pandemic; future credit performance, including the level of future delinquency and write-off rates; the loss of, or reduction in demand from, significant brand partners or customers in the highly competitive markets in which we compete; the concentration of our business in U.S. consumer credit; inaccuracies in the models and estimates on which we rely, including the amount of our Allowance for credit losses and our credit risk management models; the inability to realize the intended benefits of acquisitions, dispositions and other strategic initiatives, including the spinoff of our former LoyaltyOne^® segment; our level of indebtedness and ability to access financial or capital markets; pending and future legislation, 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 with respect to late fees, interchange fees or other charges; impacts arising from or relating to the transition of our credit card processing services to third party service providers that we completed in 2022; and failures or breaches in our operational or security systems, including as a result of cyberattacks, unanticipated impacts from technology modernization projects or otherwise.  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. Additional information will also be set forth in our Annual Report on Form 10-K for the year ended December 31, 2022. 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.

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Contacts

Rachel Stultz — Media

Rachel.Stultz@breadfinancial.com

EX-99.4

Exhibit 99.4

Bread Financial Declares Dividend on Common Stock

COLUMBUS, Ohio – January 26, 2023 – 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 a quarterly cash dividend of $0.21 per share on the Company’s common stock, payable on March 17, 2023 to stockholders of record at the close of business on February 10, 2023.

About Bread Financial^™ 

Bread Financial^TM (NYSE: BFH) is a tech-forward financial services company providing simple, personalized payment, lending and saving solutions. The company creates opportunities for its customers and partners through digitally enabled choices that offer ease, empowerment, financial flexibility and exceptional customer experiences. Driven by a digital-first approach, data insights and white-label technology, Bread Financial delivers growth for its partners through a comprehensive product suite, including private label and co-brand credit cards, installment lending, and buy now, pay later (BNPL). Bread Financial also offers direct-to-consumer solutions that give customers more access, choice and freedom through its branded Bread Cashback^TM American Express^® Credit Card and Bread Savings^TM products.

Headquartered in Columbus, Ohio, Bread Financial is powered by its 6,000+ global associates and is committed to sustainable business practices. To learn more about Bread Financial, visit BreadFinancial.com or follow us on Facebook, LinkedIn, Twitter and Instagram.

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Bread Financial

Brian Vereb — Investor RelationsBrian.Vereb@breadfinancial.com
Shelley Whiddon — Media214-494-3811Shelley.Whiddon@breadfinancial.com
Rachel Stultz — Media614-729-4890Rachel.Stultz@breadfinancial.com

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Document and Entity Information	Jan. 26, 2023
Cover [Abstract]
Document Type	8-K
Amendment Flag	false
Document Period End Date	Jan. 26, 2023
Entity File Number	001-15749
Entity Registrant Name	BREAD FINANCIAL HOLDINGS, INC.
Entity Central Index Key	0001101215
Entity Incorporation, State or Country Code	DE
Entity Tax Identification Number	31-1429215
Entity Address, Address Line One	3095 LOYALTY CIRCLE
Entity Address, City or Town	COLUMBUS
Entity Address, State or Province	OH
Entity Address, Postal Zip Code	43219
City Area Code	614
Local Phone Number	729-4000
Entity Emerging Growth Company	false
Written Communications	false
Soliciting Material	false
Pre-commencement Tender Offer	false
Pre-commencement Issuer Tender Offer	false
Title of 12(b) Security	Common Stock
Trading Symbol	BFH
Security Exchange Name	NYSE