Alliance Data Provides Card Services Performance Update For September 2021

Rhea-AI Summary

Alliance Data Systems Corporation (NYSE: ADS) reported an update on its Card Services segment for September 2021. The end-of-period receivables stood at $15.69 billion, with an average of $15.32 billion. Net charge-offs were reported at $44.79 million for the month, which is 3.5% of average receivables, a decrease from 3.9% in September 2020. Additionally, the delinquency rate decreased to 3.8% compared to 4.7% last year. These metrics indicate a positive trend in credit quality and performance.

Positive

• Decrease in net charge-offs from 3.9% to 3.5% year-over-year.
• Reduction in delinquency rate from 4.7% to 3.8% year-over-year.

Negative

• Net charge-offs increased from $151.54 million for the quarter compared to the previous year.

COLUMBUS, Ohio, Oct. 28, 2021 /PRNewswire/ -- Alliance Data Systems Corporation (NYSE: ADS), a leading provider of data-driven marketing, loyalty and payment solutions, provided an update on its Card Services segment. The following tables present the Company's net charge-offs and delinquency rate for the periods indicated.

		For the month ended September 30, 2021			For the three months ended September 30, 2021
		(dollars in thousands)
End of period receivables		$	15,689,883		$	15,689,883
Average receivables		$	15,322,162		$	15,470,532
Year over year change in average receivables			—%			1%
Net charge-offs		$	44,786		$	151,538
Net charge-offs as a percentage of average receivables (1)			3.5%			3.9%
(1) Compares to 3.9% and 5.8% for the month and three months ended September 30, 2020, respectively.
		As of September 30, 2021			As of September 30, 2020
		(dollars in thousands)
30 days + delinquencies - principal		$	561,551		$	697,229
Period ended receivables - principal		$	14,939,930		$	14,806,792
Delinquency rate			3.8%			4.7%

About Alliance Data

Alliance Data^® (NYSE: ADS) is a leading provider of data-driven marketing, loyalty and payment solutions serving large, consumer-based industries. The Company creates and deploys customized solutions that measurably change consumer behavior while driving business growth and profitability for some of today's most recognizable brands. Alliance Data helps its partners create and increase customer loyalty across multiple touch points using traditional, digital, mobile and emerging technologies. Headquartered in Columbus, Ohio, Alliance Data is an S&P MidCap 400 company that consists of businesses that together employ approximately 8,000 associates at more than 45 locations worldwide.

Alliance Data's Card Services business is a comprehensive provider of market-leading private label, co-brand, general purpose and business credit card programs, digital payments, including Bread^®, and Comenity-branded financial services. LoyaltyOne^® owns and operates the AIR MILES^® Reward Program, Canada's most recognized loyalty program, and Netherlands-based BrandLoyalty, a global provider of tailor-made loyalty programs for grocers. More information about Alliance Data can be found at www.AllianceData.com.

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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, initiation or completion of strategic initiatives including the proposed spinoff of our LoyaltyOne segment, future dividend declarations, and future economic conditions, including, but not limited to, fluctuation in currency exchange rates, market conditions and COVID-19 impacts related to relief measures for impacted borrowers and depositors, labor shortages due to quarantine, reduction in demand from clients, supply chain disruption for our reward suppliers and disruptions in the airline or travel industries.

We believe that our expectations are based on reasonable assumptions. Forward-looking statements, however, are subject to a number of risks and uncertainties that could cause actual results to 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. These risks and uncertainties include, but are not limited to, factors set forth in the Risk Factors section 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. 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.

Contact:	Investors/Analysts
	Brian Vereb
	Alliance Data
	614-528-4516
	Brian.Vereb@AllianceData.com
	Media
	Shelley Whiddon
	Alliance Data
	214-494-3811
	Shelley.Whiddon@AllianceData.com

 

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SOURCE Alliance Data Systems Corporation

FAQ

What were the net charge-offs for Alliance Data Systems in September 2021?

The net charge-offs for September 2021 were $44.79 million.

What is the delinquency rate reported by Alliance Data Systems for September 2021?

The delinquency rate reported for September 2021 is 3.8%.

How much were the end-of-period receivables for Alliance Data Systems as of September 30, 2021?

The end-of-period receivables for September 30, 2021, were $15.69 billion.

What was the average receivables amount for Alliance Data in the three months ended September 30, 2021?

The average receivables for the three months ended September 30, 2021, were $15.47 billion.

How does the year-over-year performance of Alliance Data's charge-offs look?

Year-over-year, net charge-offs decreased from 5.8% to 3.5% in September 2021.