Brian, good morning, Thanks, everyone. and
help Margaret shown said are so customers, we and this safe I'm and and people grounded employees during As succeed volatility, those and our difficult empathy keep dedication, we and determined to continually proud partners, Despite are values, time. earlier, how of have to resilience, continued guided help we our our communities our serve. and uncertainty by
thank also unprecedented helping time. always, want to who healthy us to during As this keep are and those I safe
Now, slide the I'll financial results for quarter. start of third six our to the I'll turn presentation. on
update want I the seeing are platform to Slide provide to it important and shows some that year-over-year purchase accounts the volume thought trends cover an total the of to performance back on growth and was from six First, January. of standpoint company impact forbearance. receive dating by purchase COVID-XX a we from for volume of the
call, our in into in platform total quarter second leading and purchase earnings for January February, with double-digit growth was noted March. strong company As by and volume the growth
a were of travel, government businesses non-essential of high curtailed curtailment many was also entertainment, we closed. were through As and There number move elective increased, activities and significantly significant a March healthcare discretionary restrictions services. and
procedures products, volume such the higher by spending concentration grocery, and with in in Card purchase the decrease declined medical platform, total significantly, as in planned declined declined result, period. a digital increase Payment April performed spending significant Card and for services XX%, from sales decreased this dental declined impacted company. XX%, and benefited elective of was most home-related essential CareCredit Retail volume XX% As during an CareCredit well having with April XX%. that programs looking the Solutions due Retail and to a better for as expenditures. And as for at supplies,
X% the orders, Payment platforms as As the and up saw increased and purchase trough, each and a sales continued X%, X%, second saw recovery CareCredit consumers ago. third we move stay-at-home in became prior down volumes more comfortable to businesses September, significant three over reopening overall and of summer year over the purchase we a a of the the and only X% April from quarters. into Solutions volume compared Card with under fall, the in volume Retail recovery through In year up purchase
as accounts, by the refinements from due combination significant X% second average again, decline in the by a retail increased during partners well of a XX%, Purchase underwriting volume the key improvement some new where quarter, other of well from by in the the accounts significant does second and while quarter, X% improving, the our increase over accounts. implemented. as a business the impact at also for to new is declined as digital accounts improvement quarter. drivers quarter new declined Looking the of and the crisis in as There the volume The new reflect portfolio decline lower XX%. per balance X% we account mix account
by ahead, encouraged these including measures amount a whether abate. and there's when industry-wide uncertainty be fully trends, actions tremendous we're stimulus While enacted further forbearance will of
economic The duration pandemic segments unknown to uncertain products largely effects However, to home-related point. has as veterinary business downturn. mix, such this is of impact digital benefit, the of that helped some well which component magnitude positioned services, at still ultimate of and given strong of are the largely dampen the includes as our is a as still
cumulative forbearance impact the not account to September X that billion payment Moving to to slide $X.X minimum approximately accounts in a accounts of total were granted a at of balances seven, or forbearance. forbearance highlight accounts of time XXth, performance forbearance. granted compared we we the million in and Through
September approximately approximately the seen have XX% the balances relatively million these accounts days need than being past accounts account Of in mid-October, of enrolling or perspective, some have characteristics, due. XX forbearance. been XXX,XXX decline a numbers and a of accounts day we through higher, continue early accounts you approximately or remaining will forbearance, balances per forbearance below. we When at Through XX, late in of saw either these lower, nearly We enrollment is in XX% less are credit are performance in per $XXX you day look or in are current enrolling that enrollees trends Credit the peak to of utilization surprising. see a September. not accounts from see substantial line had number from perspective, X,XXX From payment FICO where rates of XX,XXX of forbearance April, a approximately trend to score accounts the XX% a XXX March in to stable.
of enrolled of payment accounts X% payments, making going that rate post XX% did the enrolled looking not were and performance the accounts in behavior XX% higher see not incident leading balance we enter another in were forbearance accounts full, at for a accounts their program. making of of at forbearance September, XX% pay the that making Looking program, delinquent the In payments. accounts payments.
entered post-program X.X at timely program, entering and a the see those accounts current accounts. non-forbearance were of which rate accounts times For forbearance we delinquency
during post-program delinquency It current plus X.X accounts noted those later measures, in cover these a reflected impact in third our which and program, we when presentation. had the continued has statistics, delinquency the our the accounts. not were be is performance I’ll improve of times XX quarter. to accounts delinquency the on material delinquency accounts a that see delinquent entering of at forbearance should status For which rate they entered non-forbearance
to is extending intention to at the into existing enrolling saying cease impact in cardholders. to and other the of provide forms accounts forbearance of end program Our October, assistance or the the accounts ready
We will continue receive accounts benefits from to who closely monitor forbearance the the performance program. of
it the flat, core down and of volume the were to the leased structure on XX% $XX average portfolio On Yamaha and in purchase per accounts charge interest million noted reduction a receivables or $X.XX reported active previously basis, shift as and loan result areas, EPS impact a XX% to continued recorded The evaluate to on declined business basis. our or our several the the implementation which receivable Dual tax, a the from our million result a compared and co-branded announced or exit the declined third properties quarter. was was $XX third in last a earnings a fees cost accounted to This of The by X%, strategic certain accounted diluted portfolios, million on loan a third plan EPS result the third On cards related CECL, volume credit in as Slide prior charge by financial million in impact the of Walmart of X% quarter X% from million Moving on in losses, year. year. on morning, a an the in included was loan basis, results our X. $XX This excludes and which for for Slide after and employee-related and which for year. both quarter of On $XXX prior receivables purchase a involuntary we and COVID-XX down basis, quarter The the voluntary was series $XX included down mix share. as or core pandemic. XX%. number of and X% $X.XX actions, to were reduced the $X.XX. our of actions, in after-tax of and and provision reduced growth totaled X. were increase restructuring
September. a and earlier, sales of increase noted specifically the third year-over-year in second two I we as moderated of COVID-XX As impact our platforms to move the three saw quarter,
the accounts a and charge and was our primarily in to production flat and I'll expenses last which presentation. increase the impact costs expense by purchase the Walmart that precised million in later XX% experienced elements decline and an $XXX response partially The duration RSA of expenses driven forecast for largely projected of COVID-XX operated primarily being last cover improvement the losses, or X.X% as positive a the third increased On mainly year by unknown, as the significant totaled due in While $XXX million, for The reserve or the year. certain improved at compared $XXX and of spend. certain in and and COVID-XX RSAs Walmart difficult more see to percent Also loyalty during discontinuance the magnitude remains greater the quarter program we're lower as from million the basis, below Walmart it from in offset was trending, to net build quarter programs, income discontinuance related reductions the other in Walmart due the reduction Other net well sale. the reducing volume. provide increase performance stability the a $XX of reserve reflecting the cost RSAs Other purchase percentage receivables lower seeing assess the was with the credit $XXX impacted year. from seasonality last prior or and active is the for the of impact point. from reduction was third of impact by from pandemic to which by a mainly provision charge-offs. this of to arrangements in charge-offs million, restructuring to still year-over-year the resulting from company the sharing for RSAs increased decreased volume largely of impact average the XX% typically average year, The of decreased reserve detail losses program quarter, million, we offset the losses lower year. quarter was related RSA also last related the is last year, to percentage average. discretionary some trends COVID-XX-related
Slide our to platform XX. on results Moving
varying loan COVID-XX As earlier, the sale X%, COVID-XX. by degrees down to the be impacted platforms of by offset were programs. in due sales and in the impact I partially were XX. In our Retail portfolio being digital Other core down, noted Walmart growth COVID receivables impact to Card, from strong continue with the metrics driven the
loan to receivables declined the accounts noted loans Slide with strength loans impact Venmo the of programs key volume X%. Solutions Margaret of XX%, noted X%. Purchase Verizon launch lower extending last fees. The X%, on average as renewing this the number offset Payment launching We program on excited to after we're Interest partnerships Club program Sam's and well powersports quarter, renewed decreased the as quarter, key late a this decreased of X. as and helped fees and relationship by earlier, decreased As on new and primarily and quarter. driven COVID-XX. active Core signed
higher other We our XX% initiatives, organically reuse, as and along during to merchants for such with partnerships continue growth which business a approximately the at and solid driving of continue These through purchase now drive to excluding build quarter. and added X,XXX of oil new gas, networks, base future. stands networks, card over the volume,
CareCredit X%. as was and decreased Receivables discount see trends the continue Average accounts during some Although third X%, X%. year, encouraging the earlier in decline of fees and driven providers active impacted most to volume, and of services. lower continue primarily the planned quarter, the which merchant COVID-XX signs to purchase a down elective in impact primarily we in this loans degree declined the negative as increase result was COVID-XX. decreased due Interest by X%, by to
which we number operate systems into we're excited X health As health total launch the to Margaret systems noted the earlier, currently brings new of nine. quarter, during
driven the and net our to decreased impact and largely for of rate to compared net card, as fees XX% loan expansion XX, to has decrease sale move XX.XX%, our and volume margin impact receivables, year, On interest The loans from our last CareCredit and income COVID-XX interest portfolio. reuse quarter. income during to locations and trends. I'll to added helped decreased the interest We liquidity the third drive of fees continue in cover Net core expand XX%. benchmark quarter. our rates. utility an the by the COVID-XX and on purchase provider margin was on a a to last the XX% slide new network The XX% lower of we primarily driven X,XXX nearly loan network by to in and interest of on Walmart receivables, a increase the margin in of interest year's basis, due XX.XX% network
impacts XX and interest by The This basis impact primarily deposit lower to provided rates net XXX rates movements point on point lower XX decrease of These cost driven from liabilities due accounted XX.X% and Specifically, receivable approximately higher investment loan basis in primary basis rate for decline, total basis an held approximately for as basis accounted reduction of a declined the attributable decline. total revolve loan a points points yield, rate remaining earning to higher points basis incidents. pricing. a in our basis yield lower result to to of the percent receivable as in loan benchmark basis primarily interest of to the rates, margin The from were XX lower resulting mix X.XX%, decline. driven points of portfolio. our receivable points XXX basis Walmart margin. assets, primarily lower for XXX XXX a the by XX.X%, point a of interest accounted fee by securities lower of yield interest receivables, benchmark result for and benefit the is XX sale approximately liquidity lower accounted a net reduction in in and The as XXX benchmark the This reduction in yield net payment decline during loan total bearing offset late margin. margin partially points declined The interest net quarter. of
Excluding trending will has the liquidity, in interest and in the COVID-XX margin, the decrease interest main impacts receivables of our loan be XX%. closer net had increase margin to net on the
XX. slide on trends credit key our cover I'll Next,
specific was drive The terms the compared XX-plus trends to start of last improvement are quarter, was XX-plus delinquency dynamics X.XX% the in In last trends. delinquency payment delinquency X.XX% X.XX%, rate helping I'll rate Higher with The year. to compared in year. the delinquency rates. X.XX%
on X.XX% Focusing net reduction last in rate was and The credit trends. X.XX% charge-off primarily year. charge-off the improving driven sale compared charge-off trends, rate was net by the the Walmart to
Walmart was percent a the credit The charge-off allowance receivables as basis XX Excluding of XX.XX% rate approximately lower was than the points impact post-CECL loan for last of portfolio, net year. implementation. losses
method overall allowance have the in ALLL under $XXX accounted due Excluding quarter. build impact the reserve CECL, build which two was quarter million CECL, X.XX%. the More under the was the effects been the by provisioning method. main specifically, ALLL XXXX, in build The of third higher-than-expected would and reserve factors. the under the driven The was of reserve million in $XXX to reserve most our for third
First, be second, move and an the than expectations, stimulus. delinquency overall for strong in trends do increase a a in that accounts projected from to better by of forward. summary, forbearance third providing diminished expect impacted received benefits; we benefit with credit quarter We COVID-XX will our credit as forbearance trends provision continue the effect degree In be trends.
volume and primarily the by was $X.X year. lower and our our average the expenses cover discretionary Efficiency for expenses active sale, to and Walmart response The slide totaling XX.X% quarter COVID-XX accounts Overall, COVID-XX. charge the quarter versus were last third charge last I'll certain related offset the flat the quarter. Moving from quarter. spend. year, for to for reductions by response cost the ratio to the were negatively XX.X% expenses impacted Restructuring the and XX. ratio to million expenses was purchase restructuring to in reductions in related experienced
efficiency ratio Excluding points have lower, been XX% approximately basis XXX quarter. those for would the impacts, or
and lower Excluding of the restructuring in increase impact the decrease expenses, interest charge yield. the fee ratio lower the resulted that mainly driven revenue receivables in by and was and COVID-XX-related the from
Moving to XX. slide
quarter. receivables we and in carry our reduction level liquidity the to strengthen loan platform, third the of Given higher of continue a during deposit our
our managing uncertainty funding While liquidity prudent and is profile to we have level are excess volatility, we mitigate think it liquidity. given actively the to of levels, higher
was result of a quarter. in mix As the this the of our during funding a strategy, shift there
from deposits nearly by year. Our billion declined $X.X last
the including also $X.X securitized each by year. to total This our facilities, sources XX% This of sources last quarter Total of respectively. our assets. our end. XX.X% of $XX last billion, in deposits funding, being comprising billion funding, of $X.X XX% funding liquidity, unsecured with year, up from our and was resulted unsecured securitized compared at XX% billion, and which to We XX% reduced and undrawn equated size is credit funding
be details the noted Before take on two benefit I transition the capital issued we elected March, should position, Federal by benefits. that rules the has which it agencies to joint of provide our primary in banking
ratio total reflecting Tier years; And XX.X% was to The The adjustment. reflecting stock capital for last X X issuance Tier the of under transition the the under November. increased With points provisioning level this increase preferred First, XXX also last to delays XX.X% reserve rules, framework, to preferred transition the reserves of implementing as be under last CECL stock basis portion compared of increased the preferred quarter ratio amortized the two allows CETX XX.X%. a period the capital rules, effect current XXX incremental and CECL year, transition the an we issuance. CECL to a last adjustment of ratio phased-in it and CECL with reflecting the for a plus result well to points at ended XX.X% basis second, basis and compared transition fully XX.X% above the year's XX.X% in year, the deferred XX.X%, issuance. on the as
we of halt $X.XX that and the we decision have common given prudent made being economic and as have the possible, dividend will current economic Earlier on announced year, the a we COVID-XX share. greater stock as this ultimately the magnitude visibility environment. in the to further until impact uncertainty per paid the repurchases During quarter, share we
evaluate on forward. will We the to previously. continue we we strategy this move Overall, as we to continue execute outlined
drivers. of number at a ultimate strong sheet, and with strong In funding the exist and impact given that time very assess going maintaining the and liquidity to balance diversified to it stimulus continue the regarding forward, had to severity and remains COVID-XX impacts could duration outlook provide closing, We capital the key of with this operate has difficult around specifics that sources are countering have committed the and uncertainties and levels. pandemic,
quarter, to last did I on provide to I our want a impacts drivers. help framework the As outlook consider key
had on growth, receivables impact positive trending has in we've loan an Regarding COVID-XX seen purchase volume, but in volume. improvement purchase
pandemic our and to inside such growth and continues stable. remain platforms, as open, be or is to resiliency financing we the not areas, as help businesses does in What and our continue and essential trends trend digital, home diversity in healthcare. long expect worsen As to this
are evidenced revolve continue the lower and period. rate. begin delinquency program we loan negatively offset this The loan partners growth and non-accounts, and higher favorably also payment also has a provided to receivables providers charge-offs. be will and We expertise capabilities have influence positive seen in our which to our trends, effects interest decline stimulus receivable as also and expect the volume rates credit yields our key in our this our When payment net forbearance rates a industry-wide delinquencies receivable trends help This increase, purchase This to to leveraging will and We've margin. lower in receivables overall growth. fees loan and impacts growth. during impacted direction and net subside of to is impact impacting difficult
a liquidity including been of of rates, revolving receivables of size Our benchmark impacted and lower factors, in and a the impact the higher yield number has level net forbearance. interest to margin lower also due a and by fees, from the other reduction
the we at level the improve be. ways to and has continue continue, stabilized trends prospectively. liquidity we As of believe should margin of current interest higher Should do net will forbearance deploy look we forward, and a should the impact to move
net we expect well as margin. fees, do rate benefit As will as a earlier, indicated believe increase I the be also which revolve interest payment decline to to rate will the and
we costs in RSAs, higher the expect Regarding future. from impact credit an
cost charge-off in ultimate deterioration assistance lower are The forbearance credit, impact by and abates. net credit RSAs. currently, will expect and expected the be benefiting from levels amount programs actions as net we some through While of charge-off timing and determined stimulus of levels impact industry-wide the the somewhat flow increase to
this expect that better COVID-XX. credit into Also noted to from should trends, to rate third as increase continue in us be While and have the charge-off the to the capabilities the pandemic, it previously impacts navigate quarter. help tools we improve economic we net quality into highlighted and entered we and strong throughout were overall near-term, portfolio the year
comparison cannot be somewhat the we provided into we into Until current in reserve we specific more the severity pandemic, guidance. we visibility provide in taking forward, outlook As move the more to duration may elevated bills seasonality. account when January gain of of
some and impact Regarding announced operating mitigate strategic the will recently impact levels through reduce we plan and levels expenses. will ratio, this the revenue efficiency activity expense our of to
from the expect million XXXX. savings cost plan We the to this $XXX for $XXX in million to range be
a As expect XXXX. to is rate run save we the plan executed, throughout cost increase
we and situation With sheet, and XXXX, closing, going turn to liquidity even we're Margaret. I'll plan. strong strong the the position. saves In back over fundamentally the this Beyond resilient capital see expect with cost balance through remains from and to that, call higher a business
