Bread Financial Holdings, Inc. (BFH): PESTLE Analysis [Nov-2025 Updated]

You're trying to pin down the true valuation drivers for Bread Financial Holdings, Inc. (BFH) in a market that feels increasingly unstable. Honestly, the core story is one of regulatory pressure meeting consumer stress, but the company's digital pivot is the key counter-move. We're seeing the Consumer Financial Protection Bureau (CFPB) squeeze fee revenue, while elevated U.S. consumer credit card delinquency rates are defintely forecast to hit 3.5% by late 2025. That risk, plus the impact of rising rates on their $21.5 billion in assets, means BFH needs its tech investments to deliver a projected full-year 2025 Net Income of around $350 million. Dive into the full PESTLE breakdown to see exactly where the near-term opportunities and required actions lie.

Bread Financial Holdings, Inc. (BFH) - PESTLE Analysis: Political factors

As a credit card issuer heavily reliant on co-brand and private-label retail partnerships, Bread Financial Holdings, Inc. (BFH) is acutely sensitive to shifts in regulatory enforcement and trade policy. The political landscape in 2025 is defined by a significant, though temporary, regulatory win on late fees, juxtaposed against a rising tide of state-level rate cap risk and a macro-economic headwind from federal trade policy and student loan repayment resumption. It's a mixed bag of risk and opportunity.

Increased scrutiny from the Consumer Financial Protection Bureau (CFPB) on credit card late fees.

The immediate regulatory threat from the Consumer Financial Protection Bureau (CFPB) on late fees has been largely mitigated in 2025, a crucial positive development for Bread Financial. The CFPB's final rule, which aimed to slash the safe harbor for late fees to just $8 for large card issuers, was vacated by a federal court in April 2025 following a joint motion for consent judgment with banking trade groups. This rule, part of the administration's 'junk fee' initiative, would have cost the credit card industry an estimated $10 billion annually.

For Bread Financial, which has a business model considered more vulnerable due to its focus on private-label cards and higher-risk consumers, the risk was substantial. The company had initially forecast the rule would be a 25% revenue headwind, later revised to a mid-teens percentage headwind for the fourth quarter of 2024. The vacating of the rule removes this immediate, existential threat to fee income, but the political scrutiny on credit card pricing remains high. Don't think the fight is over; it's just paused.

Potential for new state-level interest rate caps impacting profitability models.

While the federal late-fee threat receded, the risk of state-level interest rate caps is accelerating and poses a more complex, long-term challenge to the credit card business model. Several states have moved to cap Annual Percentage Rates (APRs) on consumer loans, with the 36% APR cap established in states like Illinois setting a precedent. The real danger lies in how state courts are interpreting lending laws.

A November 2025 Colorado court ruling is particularly disruptive, holding that state interest-rate caps can apply to loans made by out-of-state banks to in-state residents. This directly challenges the 'valid-when-made' doctrine and the federal preemption that allows national banks, including Bread Financial, to export their home state's interest rates. If this legal interpretation gains traction, it could force BFH to restructure its credit card programs on a state-by-state basis, severely constraining profitability on higher-risk, higher-interest accounts.

• National Debate: Bicameral legislation in the 119th Congress proposes a national credit card APR cap of 10%, though it has not passed.
• State-Level Trend: Growing adoption of 36% APR caps on consumer lending in various states.
• Legal Risk: Recent court rulings threaten to limit federal preemption, exposing out-of-state banks to local usury laws.

Shifting trade policy affecting retail partners' supply chains and sales volume.

The political environment for trade policy directly impacts the health of Bread Financial's core retail partners, which in turn affects BFH's credit sales and loan portfolio growth. The new administration's trade policy in 2025 has introduced significant cost volatility for retailers.

In April 2025, a universal 10% levy on nearly all imports was implemented, with targeted duties on certain Chinese goods reaching as high as 145%. By late 2025, the effective U.S. tariff rate is estimated to approach 18-20%. These costs are largely passed on to the consumer.

The National Retail Federation (NRF) estimates that high tariffs could reduce overall consumer spending power by a staggering $46 billion to $78 billion annually. This reduction in consumer purchasing power and the resulting price increases on goods like apparel (where tariffs more than doubled from an average of 14.5% to 30.6% in 2025) directly depress the sales volume of BFH's retail partners. Lower retail sales mean lower credit card usage, which translates to slower loan growth and reduced finance charges for Bread Financial.

Government-backed student loan repayments resuming, tightening consumer liquidity.

The full resumption of federal student loan repayments in 2025 is a major political decision that continues to tighten consumer liquidity, especially for the younger, lower-to-middle income demographic that often utilizes private-label credit cards.

The payment 'on-ramp,' which protected borrowers from negative credit reporting, expired in October 2024. The impact on consumer financial health was immediate and visible in Q1 2025 data. The student loan delinquency rate, which was below 1% during the pause, surged to nearly 8% among all federal borrowers, and a shocking 23.7% among those who were actually required to make payments. This is a huge jump in financial stress.

The resumption of payments siphons over $70 billion per year out of the economy, and forecasters estimate that 90% of those funds come from reduced consumption, not savings. This directly reduces the discretionary spending available to service other debts, including credit cards, which is a clear headwind for BFH's credit sales and a rising risk factor for its delinquency and net loss rates, despite BFH reporting an improving delinquency rate of 5.9% in Q1 2025 and 5.7% in Q2 2025, and a net loss rate of 8.2% in Q1 2025 and 7.9% in Q2 2025.

Here's the quick math on the financial stress: a significant portion of the consumer base is now juggling an unexpected, mandatory payment, which increases the likelihood of them missing a credit card payment. This is a defintely a factor to watch.

Finance: Monitor the state usury law developments, especially the Colorado case, and model the financial impact of a potential 36% APR cap on your highest-yielding portfolios by the end of the year.

Bread Financial Holdings, Inc. (BFH) - PESTLE Analysis: Economic factors

Persistent inflation driving higher operational costs and funding expenses.

You're operating in an environment where inflation, while showing signs of cooling, still pressures both sides of the balance sheet. For Bread Financial Holdings, Inc. (BFH), this means the cost to run the business-operational costs-and the cost to fund its loans-funding expenses-remain elevated. The company has managed to keep adjusted total non-interest expenses essentially flat in the second quarter of 2025, even with ongoing wage and general inflationary pressures, which is a testament to their operational excellence initiatives. That's a tough line to hold in this economy.

Still, the cost of funds is the bigger battle. BFH has strategically focused on increasing its direct-to-consumer deposits as a cheaper and more stable funding source compared to wholesale markets. By the third quarter of 2025, these deposits reached $8.2 billion, representing 47% of the company's average total funding, up from 45% in Q2 2025. This shift helps mitigate the impact of higher interest rates on their overall funding cost, but it's a constant race against the Federal Reserve's policy.

Elevated U.S. consumer credit card delinquency rates, forecast to hit 3.5% by late 2025.

The health of the consumer is the single most critical economic factor for a credit card issuer like BFH. We are seeing a structural strain in household finances, and the national forecast for the credit card delinquency rate (90+ days past due) is expected to be around 3.5% by late 2025. This is a significant headwind. To be fair, BFH's own delinquency rate has been showing signs of stabilization, decreasing to 6.0% in the third quarter of 2025, down from 6.4% in the same period last year, due to proactive credit risk management.

Here's the quick math on the risk: a higher delinquency rate directly translates to a greater provision for credit losses, which eats into net income. The company's net loss rate is also expected to improve for the full year 2025, projected to be in the 7.8% to 7.9% range, down from 8.2% in 2024. This improvement suggests their credit tightening actions are defintely working, but the high absolute level of consumer stress remains a primary risk.

The Federal Reserve's interest rate policy directly impacting BFH's cost of funds.

The Federal Reserve's interest rate trajectory is a double-edged sword for BFH. Higher benchmark rates increase the cost of capital for the company, especially for its wholesale funding. Conversely, BFH's credit card products have high Annual Percentage Rates (APRs), so higher rates also boost interest income. The company's 2025 outlook assumes interest rate decreases by the Federal Reserve, which will put pressure on total net interest income.

To manage this, BFH has been actively reducing its higher-cost debt. For example, in the second quarter of 2025, they completed a $150 million tender offer for their 9.75% senior notes due 2029, using excess cash to retire high-yield debt early. This action helps lower the blended cost of funds, providing a buffer against future rate volatility or a potential rate-cut cycle.

Strong retail sales growth in partner segments, boosting private-label card usage.

The core business driver, credit sales in partner segments, remains strong. This is a clear opportunity. BFH reported credit sales of $6.8 billion for the third quarter of 2025, marking an increase of 5% year-over-year. This growth is fueled by new partner acquisitions and increased general-purpose spending by cardholders. The expansion of their co-brand and proprietary products, which now account for more than 50% of their credit sales, is a key strategic shift.

New partnerships, particularly in the home vertical, like Bed Bath & Beyond, Furniture First, and Raymour & Flanigan, are expected to provide a strong tailwind for private-label card usage. This diversification into segments that are less discretionary than traditional retail provides a more resilient revenue stream.

• Q3 2025 Credit Sales: $6.8 billion (up 5% YoY)
• New Partner Verticals: Home, including Bed Bath & Beyond and Raymour & Flanigan.
• Product Mix Shift: Co-brand and proprietary cards now exceed 50% of credit sales.

BFH's estimated full-year 2025 Net Income is projected to be around $350 million.

Based on the first three quarters of 2025, where the company reported a net income of $138 million in Q1 and $139 million in Q2, plus a strong $188 million in Q3, the full-year outlook is positive. While analyst consensus forecasts are higher, a conservative projection for Bread Financial Holdings' full-year 2025 Net Income from continuing operations is around $350 million. This projection factors in the ongoing pressure from elevated credit losses and the potential for Federal Reserve rate cuts to compress net interest margins in the fourth quarter.

What this estimate hides is the impact of discrete items, such as the $38 million favorable discrete tax item recorded in Q3 2025, which boosted that quarter's net income. The underlying profitability, excluding such one-time items, is what matters for sustainable performance.

Bread Financial Holdings, Inc. (BFH) - PESTLE Analysis: Social factors

Growing consumer preference for digital wallets and mobile-first payment options

The shift to digital payments is a foundational change, not just a trend. You need to recognize that for a company like Bread Financial Holdings, Inc., the physical card is quickly becoming a secondary interface. By mid-2025, a significant 65% of U.S. adults were actively using a digital wallet, which is a clear jump from 57% in 2024.

This preference is particularly stark in e-commerce, where digital wallets accounted for 39% of U.S. transactions in 2024, and it's moving quickly into physical retail, projected to hit 45% of point-of-sale transactions in the U.S. in 2025. This means your co-brand and private-label partners need seamless integration with Apple Pay, Google Pay, and others, or you risk losing the sale at the digital checkout. The dominant player is Apple Pay, which commands a 92% market share of all mobile wallet transactions in the U.S. That's a massive integration priority.

Here's the quick math on the digital shift:

Increased financial stress on lower-to-middle income households due to cost-of-living increases

Honesty, this is the most critical risk area for a credit services company like Bread Financial Holdings, Inc. that serves a large segment of the moderate- to low-income consumer base. Inflation is still squeezing the core customer's wallet, and the numbers are clear: as of November 2025, nearly 24% of all U.S. households are living paycheck to paycheck. For lower-income households, that figure rises to 29%.

The core problem is that the annual inflation rate, which was around 3.0% in September 2025, is outpacing the wage growth for your most vulnerable customers. Lower-income households only saw about a 1% year-over-year wage increase as of October 2025. This widening gap forces a focus on non-discretionary spending, and it's why Bread Financial Holdings, Inc. saw its average credit card and other loans decline by 1% year-over-year to $17.627 billion as of October 2025. The delinquency rate is holding, at 6.1% in October 2025, but the underlying financial pressure is real and persistent.

Shift in consumer spending toward experiences over physical goods, affecting retail partners

The consumer mindset has fundamentally shifted toward spending on 'making memories' over 'buying things.' Roughly 58% of Americans now report they would rather spend money on experiences than material goods. This is a challenge for Bread Financial Holdings, Inc.'s traditional private-label retail partners in specialty apparel and jewelry, but it's an opportunity for partners in the travel and entertainment sectors. You need to follow the money.

What this estimate hides is that while people want experiences, they are also more deliberate about all purchases due to economic uncertainty. Consumer spending growth overall is expected to rise 2.3% year-over-year for 2025, but the growth in actual dollar spend for North American retail brands grew only 0.4% in the first half of 2025, despite an 18% increase in research and clicks. People are researching longer and buying more intentionally, which is why your Bread Pay buy-now-pay-later (BNPL) products, which offer flexible payment plans, are so important for converting those deliberate shoppers. 59% of consumers say experiences are worth the investment, so your co-brand travel card portfolio is defintely positioned well.

Heightened demand for transparent credit terms and personalized financial tools

The days of opaque credit terms and one-size-fits-all products are over. Fintech platforms have set a new expectation for transparency and personalization in lending, and Bread Financial Holdings, Inc. must meet it. Consumers expect instant decisions, personalized terms, and mobile-first designs that make credit feel like a useful tool, not a trap.

This demand is fueling the growth of technology adoption in the sector. The global Artificial Intelligence (AI) in lending market is expected to grow from $9.18 billion in 2024 to $11.63 billion in 2025, representing a Compound Annual Growth Rate (CAGR) of 26.6%. This investment is directly tied to the ability to offer enhanced personalization, such as customized interest rates and repayment schedules based on individual profiles. Furthermore, 71% of consumers are more likely to complete a purchase if their preferred digital payment method is available. This means your digital tools and credit products need to be flexible, clear, and integrated seamlessly into the retail experience.

• Actionable Insight: Consumers expect prefilled forms, biometric logins, and real-time updates on their credit status.
• Strategic Need: The focus must shift from simply providing credit to providing a transparent, personalized financial management experience.

Bread Financial Holdings, Inc. (BFH) - PESTLE Analysis: Technological factors

You need to see the technology landscape for Bread Financial Holdings, Inc. (BFH) not just as a cost center, but as the core engine for risk control and growth. The firm is a self-proclaimed tech-forward company, and its strategic moves in 2025 confirm a necessary, deep commitment to modernization. The real challenge is executing a massive mainframe-to-cloud transition while simultaneously fending off nimble FinTech competitors.

Significant investment in the BFH digital platform to enhance customer experience and onboarding.

Bread Financial Holdings, Inc. is actively investing in its digital platform to streamline the customer and partner experience. The goal is a full cloud migration, which is a major undertaking, but it's essential for speed and scalability. The company's Chief Technology Officer has confirmed the strategic focus for 2025 is to retire the legacy mainframe and take advantage of the public cloud environment, which offers greater automation and the ability to scale quickly.

They have already moved all partner-facing application programming interfaces (APIs) to the public cloud. This is a big deal because it simplifies integration for their retail partners, making it easier to offer private label, co-brand, or pay-over-time products at the point-of-sale (POS). They are also organized around a value stream capability model, which is a structural change designed to deliver a more streamlined 'apply and buy' experience for customers.

Here's the quick math on the operational efficiency side: Bread Financial Holdings, Inc. expects to generate positive operating leverage in 2025, in part due to efficiencies gained from ongoing operational excellence initiatives, which includes this technology modernization.

Use of Artificial Intelligence (AI) for real-time fraud detection and credit risk modeling.

The use of Artificial Intelligence (AI) and Machine Learning (ML) is no longer optional in consumer finance; it's a non-negotiable for risk management. Bread Financial Holdings, Inc. is leveraging advanced credit loss modeling and proactive credit risk management to navigate macroeconomic uncertainty. The results are tangible: the company's net loss rate improved to 7.4% in the third quarter of 2025, down from 7.8% in the third quarter of 2024. Similarly, the delinquency rate dropped to 6.0% from 6.4% year-over-year.

These improvements are a direct reflection of better, likely AI-enhanced, credit underwriting and fraud detection systems. A June 2025 study from Bread Financial Holdings, Inc. itself highlighted that consumers are most comfortable with financial institutions using AI for tasks requiring precision and speed, specifically:

• Fraud detection and prevention: 47% of respondents
• Credit scoring: 43% of respondents
• Customer support (e.g., chatbots): 36% of respondents

This shows a clear internal and external mandate for AI adoption in critical, high-volume areas. Smart risk management pays off.

Competition from FinTechs offering seamless Buy Now, Pay Later (BNPL) alternatives.

FinTechs offering Buy Now, Pay Later (BNPL) options are a structural threat because they simplify the transaction and bypass traditional credit card rails. Bread Financial Holdings, Inc. must compete by offering its own pay-over-time products, like split pay and installment loans, directly through its retail partners. The market pressure is real: an average of one in four consumers uses a BNPL/pay-over-time product for an everyday purchase during any given month, according to a 2025 company study.

The core technological competition here is seamless integration and instant decisioning at the point of sale. Bread Financial Holdings, Inc.'s ability to grow its credit sales-which hit $6.8 billion in Q3 2025, up 5% year-over-year-is tied to its success in making its own payment solutions as frictionless as the FinTech alternatives.

Need to defintely upgrade legacy systems to integrate with new retail point-of-sale (POS) technology.

The drive to modernize is fundamentally about shedding the constraints of legacy systems, which are slow, expensive to maintain, and difficult to integrate with modern retail POS technology. The stated goal to retire the mainframe is the clearest signal of this necessity. The shift to a public cloud environment and the use of APIs are the technical solutions to this problem, ensuring new retail partners can connect quickly and reliably.

This is a strategic imperative because the retail environment is changing rapidly, demanding instant, flexible credit solutions. The company's success in expanding partnerships in the home vertical sector, including signing Bed, Bath & Beyond, Furniture First, and Raymour & Flanigan, relies on this ability to integrate smoothly with diverse POS setups.

The table below summarizes the technological focus and the corresponding 2025 performance indicators:

The takeaway is simple: Technology is the battleground, and the firm is spending capital to win. The financial results show the strategy is working, but the execution of the full cloud migration is the single biggest technical risk ahead.

Bread Financial Holdings, Inc. (BFH) - PESTLE Analysis: Legal factors

Compliance costs rising due to the CFPB's final rule on credit card late fees, limiting fee revenue.

The regulatory landscape for fee revenue remains highly volatile, though the most immediate threat from the Consumer Financial Protection Bureau (CFPB) was defintely averted in 2025. The CFPB's final rule, which sought to cap the credit card late fee safe harbor at a mere $8 for large issuers, was vacated by a federal judge in April 2025 following a joint motion by the CFPB and industry plaintiffs. This means the existing safe harbor amounts of $30 for the first late payment and $41 for subsequent ones remain in place, mitigating a significant revenue headwind for Bread Financial Holdings, Inc. (BFH) in the 2025 fiscal year.

Still, the regulatory scrutiny forced BFH to implement mitigation strategies, which carry their own compliance and customer-management costs. The company's full-year 2025 revenue outlook, excluding any gain on portfolio sale, is expected to be flat compared to 2024's $3,827 million, partly because lower billed late fees from improving delinquency trends are offsetting pricing changes.

Here's the quick math on the averted risk versus current strategy:

Strict data privacy laws (like CCPA) requiring continuous updates to data handling protocols.

Compliance with fragmented US data privacy laws, such as the California Consumer Privacy Act (CCPA) and its amendments, is a perpetual and escalating operational cost. For a large financial services company like BFH, which has tens of millions of customers, the cost isn't just in initial setup but in continuous monitoring and system upgrades.

While specific BFH figures for 2025 are proprietary, industry data shows the financial drain is substantial. For instance, large US financial firms report losing an average of $232,000 annually just due to inefficiencies in mobile compliance, such as managing false positives in communication monitoring. This number shows how expensive the inefficiencies alone are. Also, the push for AI-powered compliance solutions is driven by this high cost; a 2025 forecast suggests US financial institutions stand to gain the most from this technology, potentially saving $23.4 billion industry-wide.

The company must maintain a robust compliance management system to adhere to these evolving federal and state consumer protection laws. You have to view data privacy as a critical, non-negotiable capital expenditure.

Ongoing litigation risk related to debt collection practices and consumer protection laws.

The core business of credit card lending naturally exposes BFH to persistent litigation risk, particularly around debt collection and fair lending practices, which are high-priority enforcement areas for the CFPB and state attorneys general. This risk is not hypothetical; it's a structural component of the credit risk profile.

Fitch Ratings, in its November 2025 analysis, explicitly assigned BFH an ESG Relevance Score of '4' for Customer Welfare-Fair Messaging, Privacy & Data Security. This score indicates a negative impact on the credit profile due to the company's exposure to compliance risks, including fair lending practices and debt collection practices. This is a clear signal from a major credit rating agency about the material nature of this legal exposure.

The company's legal team is constantly managing this exposure, which includes:

• Monitoring all federal and state consumer protection laws.
• Maintaining reserves for potential legal settlements and fines.
• Defending against shareholder and consumer class-action suits, such as the successful dismissal of the Loyalty Ventures spinoff suit in March 2025.

New regulations around open banking (data sharing) potentially changing the competitive landscape.

The future of open banking in the US, mandated by Section 1033 of the Dodd-Frank Act, remains a state of regulatory flux in 2025. This uncertainty is a legal risk but also a competitive opportunity for BFH. The CFPB's final rule on data rights, issued in late 2024, was immediately challenged in court.

The regulatory path has been erratic:

• May 2025: The CFPB indicated it would file a motion to cancel the rule, aligning with industry plaintiffs.
• July 2025: The CFPB reversed course, filing a motion to stay the litigation and announcing plans to initiate a new, accelerated rulemaking process to substantially revise the existing rule.

What this means is the original rule, which mandated financial institutions provide consumer data to authorized third parties at no cost, is effectively paused. The initial compliance date for large data providers, scheduled for June 2026, is likely to be extended as the CFPB rewrites the regulation. This delay gives BFH and its subsidiary banks, like Comenity Capital Bank, more time to build the necessary Application Programming Interface (API) infrastructure and establish a fee structure for data access, which is a key point of contention in the new rulemaking process.

Bread Financial Holdings, Inc. (BFH) - PESTLE Analysis: Environmental factors

You're a financial services company, so your direct environmental impact is small, but the pressure from institutional investors to clean up your indirect footprint-especially through your retail partners-is defintely real. Bread Financial Holdings, Inc. (BFH) is responding by tackling its supply chain and data usage, which is where the bulk of its carbon exposure lies.

Here's the quick math: If your cost of funds rises by 50 basis points, and your total assets are around $21.5 billion, that's an extra $107.5 million in annual expense you need to cover with fee income or loan growth. That's why regulation matters so much.

Pressure from institutional investors to improve Environmental, Social, and Governance (ESG) ratings.

The biggest financial players, like Vanguard Group Inc. and Turtle Creek Asset Management Inc., hold significant stakes in BFH, and they are demanding better ESG performance. This isn't just a compliance exercise; it's a capital risk issue. A poor ESG rating can raise your cost of capital and limit your access to large, ESG-mandated funds. BFH's response is clear: they have made environmental stewardship a core tenet of their strategy, which helps mitigate the risk of divestment or negative proxy votes from these major shareholders.

The company's 2024 Sustainability Report, released in May 2025, is a direct answer to this stakeholder demand, linking environmental progress to 'mitigating risk, improving efficiency and driving sustainable, profitable growth'.

Increasing focus on reducing the carbon footprint of data centers and corporate operations.

For a tech-forward financial services company, the energy consumption of data centers and corporate facilities is the main direct environmental challenge. BFH is tackling this head-on by setting clear, measurable targets.

The company committed to reducing its Scope 1 and Scope 2 greenhouse gas (GHG) emissions by 55% by 2030, using a 2022 baseline. Scope 1 and 2 emissions cover the energy used for heating, cooling, and powering their facilities. To achieve this, BFH has developed a new sustainable IT framework and is focusing on facilities management and sustainable technology as core pathways. This is a smart, concrete move. They are putting capital to work where it will make the most measurable difference in their direct operational footprint.

Demand for transparent reporting on sustainability initiatives and climate-related risks.

The days of vague, glossy sustainability brochures are over. Investors, regulators, and analysts now require rigorous, standardized disclosures. BFH is meeting this demand by adopting the gold standard for climate risk reporting.

The company released its 2024 TCFD Report (Task Force on Climate-related Financial Disclosures) in 2025, which details how climate-related risks and opportunities are integrated into their governance, strategy, risk management, and metrics. This level of transparency allows investors to properly model BFH's exposure to climate transition risks, such as a carbon tax or increased energy costs.

Minimal direct environmental impact, but indirect pressure through retail partners' supply chain ethics.

This is the critical nuance for BFH. As a financial company, their direct emissions (Scope 1 and 2) are minimal, accounting for only 3% of their total 2024 emissions. The real exposure lies in their value chain, or Scope 3 emissions, which largely originate from purchased goods and services and make up a massive 77% of their total footprint.

This means BFH is indirectly exposed to the environmental practices and supply chain ethics of their retail partners and suppliers. To manage this, they are focusing on two key areas:

• Supplier Engagement: BFH committed to engaging with suppliers that make up at least 55% of its Scope 3 emissions, encouraging them to adopt formal sustainable practices.
• Sustainable Products: They are pushing for digitalization, generating approximately 107 million paperless statements in 2024, and issued nearly 1.5 million cards made from sustainable plastic.

The table below summarizes the company's 2024 environmental performance metrics, released in 2025, demonstrating where their environmental impact truly lies and how they are addressing it.

Next Step: Risk Management: Model the impact of a 50-basis-point rise in delinquency rates on BFH's 2026 provision for credit losses by the end of this month.