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Alliance Data Provides Card Services Performance Update For January 2021

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Alliance Data Systems Corporation (NYSE: ADS) provided a performance update for its Card Services segment on February 16, 2021. As of January 31, 2021, the company's end-of-period receivables stood at $16.17 billion, with an average of $16.19 billion, reflecting a 14% decrease year-over-year. Net charge-offs amounted to $62.07 million, representing 4.6% of average receivables, compared to 7.2% for January 2020. The delinquency rate improved to 4.3% from 6.0% a year earlier.

Positive
  • Decrease in delinquency rate from 6.0% to 4.3% year-over-year.
  • Net charge-offs as a percentage of average receivables improved to 4.6% from 7.2%.
  • Total receivables remain strong at $16.17 billion.
Negative
  • Average receivables decreased by 14% year-over-year.
  • Net charge-offs increased in dollar terms, totaling $62.07 million.

COLUMBUS, Ohio, Feb. 16, 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

January 31, 2021


(dollars in thousands)

End of period receivables

$

16,174,228

Average receivables

$

16,185,361

Year over year change in average receivables


(14)%

Net charge-offs

$

62,071

Net charge-offs as a percentage of average receivables (1)


4.6%









(1)  Compares to 7.2% for the month ended January 31, 2020.




As of

January 31, 2021


As of

January 31, 2020


(dollars in thousands)

30 days + delinquencies - principal

$

665,278


$

1,061,921

Period ended receivables - principal

$

15,373,568


$

17,817,511

Delinquency rate


4.3%



6.0%

 

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. A FORTUNE 500 and S&P MidCap 400 company headquartered in Columbus, Ohio, Alliance Data consists of businesses that together employ nearly 8,000 associates at 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.

Follow Alliance Data on Twitter, Facebook, LinkedIn, Instagram and YouTube.

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, 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 is the latest performance update for Alliance Data Systems (ADS)?

Alliance Data Systems (ADS) reported a decrease in average receivables by 14% year-over-year, totaling $16.19 billion.

What was the delinquency rate for ADS as of January 31, 2021?

The delinquency rate for Alliance Data Systems (ADS) improved to 4.3% as of January 31, 2021, down from 6.0% in the previous year.

How much did net charge-offs amount to for ADS in January 2021?

Net charge-offs for Alliance Data Systems (ADS) in January 2021 totaled $62.07 million.

What percentage of average receivables were net charge-offs for ADS?

Net charge-offs represented 4.6% of average receivables for Alliance Data Systems (ADS) as of January 31, 2021.

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