Bread Financial Projects 4% Average Loan Growth for 2026

Bread Financial Holdings Inc. expects average loans to grow about 4% in 2026 and revenue to rise about 5% from full-year 2025, alongside a lower outlook for its annual net loss rate.

The company said Thursday it expects the 2026 net loss rate to come in below 7%. That marks its second consecutive quarterly improvement to the forecast. In July, Bread Financial projected a rate of 7.0% to 7.1%.

Credit card and other loans totaled $18.9 billion at Sept. 30, up 7% from a year earlier. Average loans during the third quarter were $18.6 billion, up 6%. The quarter-end figure is a balance on one date; the average covers the quarter.

The third-quarter net loss rate was 6.40%, down 99 basis points year over year, and the delinquency rate fell 47 basis points to 5.57%. Revenue rose 5% to $1.017 billion, while net income fell 17% to $156 million. The year-earlier quarter included a $38 million favorable tax item. Bread Financial’s quarterly results include additional earnings details.