Bread Financial Holdings, Inc. reported financial results for the quarter ended September 30, 2026, highlighting growth in credit sales and consumer deposits. Credit sales for the third quarter were $7.4 billion, representing a 9% increase year-over-year. This growth was attributed to new and existing brand partners, as well as continued strength in general-purpose spending. As a result, average loans increased 6% year-over-year to $18.6 billion, and end-of-period loans increased 7% to $18.9 billion.
Consumer deposits at the end of the quarter totaled $9.9 billion, an increase of 21% year-over-year. The company noted that the completion of its bank merger on October 1, 2026, provides additional balance sheet and funding flexibility. Net income for the quarter was $156 million, a decrease of $32 million from the prior year, largely due to the absence of a $38 million favorable discrete tax item in the prior period. However, pretax income increased by $13 million, or 6%, driven by loan growth.
In terms of capital management, Bread Financial repurchased $75 million of common stock during the quarter. The company also announced that its Board of Directors has approved a quarterly cash dividend of $0.25 per share of common stock, a 9% increase from the previous quarter. This dividend is payable on December 15, 2026, to shareholders of record as of November 30, 2026.
The company also disclosed dividend declarations for its preferred stock. A quarterly cash dividend of $21.56 per share of its 8.625% Non-Cumulative Perpetual Preferred Stock, Series A, was declared. Additionally, a quarterly cash dividend of $22.19 per share of its 8.875% Fixed Rate Reset Non-Cumulative Perpetual Preferred Stock, Series B, was declared. Both dividends are payable on December 15, 2026, to holders of record at the close of business on November 30, 2026.
