Thanks, Margaret, everyone. and morning, good
community everyone The appreciated. safe of a for grocery workers healthcare stores inspiring deeply is me those selflessness our from to working dedication and on to workers, who's first First, and responders, Margaret's vaccines. keep and echo let or secure working thanks in these our lot
who world to all In customers. thank to you. to working are of to new employees the Thank adjusting our around continue addition, I serve ways partners and want our
turning I'll X of the for our financial the Slide in results presentation. Now start to quarter. first
the to we're aspects volume the seeing well now quarter move as important of facing. impact I as results, our highlight that business of cover from the to first COVID-XX trends into key from early given perspective, environment are current are I Before some the want we purchase of
and between for shows February, increased to March well March. X related total year-over-year volume of where half first cards then company, the purchase half second world and and the as for Dual the the COVID-XX significantly. is our split as Co-Branded sales month the impact growth Slide from for January,
world at second strong retail significantly non-essential half In the of high closed. mid-March for and with mandates growth and volume levels, federal the and state activity total stores and of a event entertainment double-digit number through growth travel, sales curtailed both volumes. increased Purchase as were March was company the
XX% respectively both into April. March. purchase a half the declined result, world As The in are second XX% the of sales by continuing and trends total significantly volume decreasing company for and
in category, restriction period, the restriction the month of post-travel of spend same period. end world the categories, experienced at and post-January, pre-travel significantly rates discount overall we specialty then periods increased growth the year-over-year entertainment, and the trends. restaurant, the significantly the January, similar to as while quarter, during spend gas, first sales Looking growth of Grocery, drugstore declined by defined changes during industry travel through
significantly were world sales XX% only travel and impacted, While of gas, these restaurants categories. entertainment, incurred in XXXX
will still magnitude duration receivable are this and our these forward. volume is impact trends and Obviously, impact The given largely of that pandemic still is the purchase ultimate loan the growth at unknown this point. uncertain going
Slide crisis. processes that This quality financial higher XXXX and to have been asset asset going very we've into effective highlight improve is strategy in credit a through of asset versus advance base overall X, managing made our great disciplined in to Moving our we result quality base underwriting underwriting the quality. the today direct our
highlight I'd program. management our like various credit aspects to of
disciplined First, we have in experienced very we're credit and underwriting. to our very approach a team
and credit across sales programs all our platforms. control in our underwriting and we Second, decisions
management. channel to are for by in tailored strategies the industry which partner credit account unique operate we origination and Our as
shown As score measure have above the using the left XX% compared XXX XX% the FICO to comparative FICO side the XXXX. on of portfolio of page, in as
balances of XX% lower, to portfolio reduced FICO or the XXX in a of portfolio X% the that XXX the above quality; of a exposure are XXX higher significant loss in in FICOs to balances shifted importantly, X% our or XXX to in we've from FICO XXXX. is This at with compared we XX% FICO More with below or higher. generating portfolio range increase improvement
our new decision quality the since portfolio reflected As of in this we quality credit financial strategic we made account improve our origination crisis, and the mix to great of XXXX. the the exited is
in we XXXX XXX, the above of advanced FICOs FICOs Over originated We're or have accounts accounts using techniques had having also XX% originated XXX XX% XXX of since or lower. underwriting what the less were FICO higher, have of portfolio. that than of we managing with X%
validate acquisition, are Some account different and customer to example attributes for we XX to than this of sources to utilizing authenticate data are more and up identity. X,XXX creditworthiness
more engagement a use multi algorithmic to effective customer and synthetic as are We credit outcomes, with other target credit, to designated to approach employing behavior, malicious leveraging lines. clients as partners IDs, specific assign our well fraud,
these passively in the as This For approved customers quarter creditworthiness the the reevaluate from mix manage triggers time exposure, in account bureau XXX FICO target volume utilize of technology deployed for shows The side quarter right to at hand and well quarter management, we're the internal of first the XX% in purchase the XXXX, and to techniques customers' evident plus latest as the the selectively volume is from XXXX. credit leveraging underwriting continuing dynamically improvement credit high the behavior. to XX% XXXX. mix chart page on which the being first first purchase more to mix risk purchase we shows the in of compared to volume authenticate
rate a don't by any Finally, industry been now well it growing Retail portfolio and Card is and we concentrations. faster should at payment we've be significant that in geographic have diversified solutions portfolios than CareCredit our
In the we had great financial the our the summary, improved asset substantially compared portfolio have crisis. quality of we during to portfolio
tools We can better with efficacy ever have underwriting changes quickly and deploy developed and before. capabilities and greater than more
managed than on our see the in loss chart can credit higher Slide general The perspective, the X periods to that you slightly rate in losses. issuers in purpose dating XXXX relatively line XXXX. card is to how for top in in private in perception longer-term perform credit cards back when general was general issuers on shows that loss a great crisis label purpose you XX% credit with card we performance cards financial XX% loss the perform a from range peaked a worse will But basis. view of
than being One experience of lower is purpose cards. is that lower similar the general to of loss us due keys the the average the loss to being severity for balance generally
first balance year. average per last quarter, was the For $X,XXX flat active account to is the which
wide basis, XXX basis through card you we crisis, purpose this points the peers on higher margin a the over than yield the general adjusted group. look a risk risk adjusted yield with at If a peer outperformed by running
card As losses outperformance we increase cycle, of again was X. and points purpose RSAs the have yield shown has lower and over also compared declined, a buffer. through right hand remained Slide issuers evident beyond XXXX beginning provide chart costs risk This move as in the in adjusted XXXX general as basis XXXX our in XXX the post-crisis. to corner credit
program factors RSAs the to as strong of credit the RSAs related, RSAs mix. normalized receivables of of revenue, the In business countercyclical average through more the important driver and RSA financial model. The adjusted nature RSAs our both expenses, While a countercyclical percentage our XXXX, yield are X.X%, through of highlight the XXXX resiliency of other average impact also such as in declined X.XX% profitable to XX% remain earnings and below the nature of crisis XXXX. ability great for were as risk elements
crisis in return The company generated of the X% a at around height XXXX. on the assets
situation was the in context elements to great you financial give from our apart the Given the current we charge-offs while it of from the important similar expecting items sets historical some be to felt key level I've crisis, highlighted on business the the we're earlier, industry. resulting that not others to
implementation to of This for million which or the first as January. first a CECL results we of X. was included Slide provision Moving This quarter after-tax diluted the morning, The million of reduced in EPS financial result share. per $XXX credit an increase by on million the quarter increase or $XXX earnings $X.XX. losses, $X.XX in $XX reported
interest basis, driven on Walmart On purchase by receivables were X% growth X% growth was loan a which and a X% over solid core were year. and up loan Yamaha several and up On excludes receivables. last receivables accounts generated fees areas volume X. basis on average We X% in in noted and Slide the as year-over-year core portfolios, active increased
cards XX% Co-Branded first the the On loan card with we Slide XX% we of pleased total receivables over volumes X% and to prior-year. X% receivable the business. prior-year. the X, Dual these grew growth we the portfolio we're purchase underlying account have total and to Co-Branded They level provide over and in across included accounted the for and products. Dual volume generate the for of Overall, quarter and diversification grew have of purchase balances loan
I with in of of As we quarter. accelerated the move the occurring the earlier noted impact the through as quarter COVID-XX impact late most
precise a are more still duration substantial We forecast the is given unknown magnitude provide expecting difficult quarter, impact. the at it's impact this to more this a but and the largely point, of
quarter, in credit from expected end lower range X% $XX RSAs year. a higher quarter for receivables as the the at million percentage reserve decreased X.X% first the we or of RSAs due builds. of last the average loss were to
lower credit year. totaled the primarily driven reserve $XXX million, $XXX related for The first increased year net The the last the due quarter build partially reserve million. that in credit by increase. increase the losses. and Walmart projected COVID-XX in of largely remaining by the loss last provision to losses was reduction from or impact $XXX build The higher offset million quarter charge-offs first XX% reserve was for accounted The
expense COVID-XX increased $X operational cost due and expenses down offset to million, partially Other related income losses was response. Other reductions $XX or from by million. X% Walmart, the to higher
overall, COVID-XX. of outside the the first from to results the quarter solid continued impacts So generate in company
Slide X. down digital with our driven primarily Walmart X% I to take sale In the solid core were loan our the of growth results highlight by will other by portfolio. moment driven a growth Retail platform partners; on receivable was metrics Card
furnishings and volume renewed We key quarter. Purchase increased growth. of Interest and average a in resulted loan new delivered X%. Payment growth receivable this receivable core in home loan by growth driven home that primarily strong the platform sales partnerships strength a specialty number X% across Solutions of and quarter with and active and broad-based signed increased loan X%. partners on accounts fees
to partnerships continue organically of other volume helps drive card growth networks. purchase higher excluding networks, which These us solid stands now approximately at results. through as with gas such card along driving XX% We with that and initiatives, our to reuse, drive oil
led CareCredit of veterinary also specialties. X% quarter; was growth another receivable dental our and strong delivered by
fees on X%. was loans volume average accounts and driven Interest primarily our growth. the increased active and by Purchase up increased X% X% receivable loan
the XX% our during We new over network our quarter. reuse network of our the Network utility continue first rate drive we've helped card to expand has X,XXX to added the provider in to to locations expansion quarter. as the purchase volume and
helped see platform results COVID-XX Retail We did as of progressed. store in offset on mitigate start some the impact, in quarter help results, volume pronounced less areas the impact. this closing a store impacted In some the while have while promotional strong effects and purchase also the Payment the as of Solutions growth digital In home offerings that Card, of COVID-XX impact. to saw specialty we closings growth such
veterinary For elective offset see during CareCredit, quarter, be to areas partially procedures. March. performance of many into as reductions continue we latter expect as store the We of such the the effects closings will and pronounced by in do part good carry next occurred in more the
XX.X% sale sale in XX.XX% receivables and decrease driven core receivables the margin margin during decrease by primarily driven our main by from of mix year, to sale performance and benchmark move of and lower higher XX XX.XX% the total net liabilities last year's cost X% basis a Slide fees mix the income a to in decreased cover point basis the total driving A of interest that last XX a in yield as assets. Walmart interest liquidity were of I'll October in decrease receivables interest resulted in basis compared interest driven On XX to loan bearing Walmart factors offset interest from XX.XX%. loan was primarily the quarter trends. increased primarily XX.X% the last due The declined by of rates. portfolio on of proceeds fees percent a and a the loan to the loans portfolio, on year. X%. partially X.XX% to The X% by decline driven of by The the income portfolio. point net from interest margin Walmart margin earning Net mainly
credit cover Next, XX. I'll our key on trends Slide
rate specific XX-plus X.XX% compared of terms with last year. In start trends. dynamics XX-plus was to and rate The the X.XX% delinquency the delinquency in delinquency the year X.XX% last X.XX% to was I'll compared quarter,
Walmart XX-plus basis last and If XX-plus XX was the down delinquency points rate compared down the approximately portfolio, delinquency approximately the you five to exclude the impact of points, rate basis was year.
net year. The compared to by charge-off improving credit driven Focusing net trends. last primarily X.XX% on net charge-off Walmart charge-off reduction and was rate X.XX% The trends. was in rate
increase X.XX%. of was was rate This impact the charge-off portfolio, the basis of better net fourth year. quarter expectation approximately XX than net Walmart points XX point around lower Excluding rate charge-off basis the than last of in
credit receivables for allowance as The included day a XX.XX% which a implementation, transition percent $X.XX billion adjustment. post-seasonal was losses loan one of
reserve under CECL the the to of Excluding quarter. impact accounted method. higher COVID-XX under effect under was due the build which the of overall method would the most than have ALLL quarter CECL, build in $XXX for The allowance million of the reserve the expected in reserve The was first and first the $XXX been X.XX%. provisioning ALLL million
summary, the slightly our credit than COVID-XX expectations impact. first the In trends better excluding were quarter
duration efforts move The the difficult as to impact is the forward. be point, will by magnitude the of the impacted COVID-XX. as well and cardholders this the effects we CARES trends providing given our uncertainty Act this to the pandemic, credit around extent relief impacted expect potential the as to of by We at from and assess
partially last quarter. by Slide came to losses attributable operational cover the from response Walmart. Moving $XX certain expenses was X% or offset The cost decline XX, COVID-XX. billion million driven to in related This I'll expenditures down expenses $X reductions was by and to to at year. higher Overall from our expenses for
for efficiency XX% XX.X% last quarter the versus year. ratio The was
efficiency from operational impact the the the and prior-year. expenses, Excluding was to flat COVID-XX the losses, ratio compared
at year. puts XX% million, XX% compared or to year, our over over XX, Slide This $XXX deposits deposits of last last Moving X%. the grown to refunding we've
overall direct growth the excess continue deposit our year. did quarter first While in sale cost over deposits the portfolio for X% higher the last the we quarter, prior a the lower given of pace Walmart at liquidity in the we fourth year, slowed slightly grow to
our last was year. which over XX% Total liquidity facilities billion up total $XX.X This including assets. equates credit is XX% undrawn from of
detail liquidity on issued two position, transition capital Before had should our electing and March, noted primary the I it be agencies the of the to banking by we're provide benefits. joint rules take that in which benefit federal
transition First, allows it this for to at be provisioning transition CECL of year. the XX.X% portion under delays and same last a with effects adjustment quarter They're the transition an With incremental adjustment. the of we deferred two the CECL second, levels under amortized CET-X years; and first current period ended the framework, rules. the the
issuance. capital CECL stock rules, issuance to preferred total reflecting as XX.X% year capital compared last to ratio XX.X% the Tier-X the last well the preferred transition also under XX November. ratio The XX.X% basis is reflecting increased points
a basis stock Tier-X the and increase the over increased basis CECL XXX the reserves a XX.X%, preferred of result on reserves increase fully capital plus faith-in ratio point the as implementing ratio And reflecting in a issuance. to prior-year,
for current continue the We of During of dividend end remaining paid share plan and share plan first capacity cycle. XXX a billion capital million of authorized the quarter. plan per announced the of of on had we or repurchase last quarter, the stock the $X.XX the $X first At common the billion during quarter, we we shares common million $X XX.X repurchased stock May. capital execute to
greater being decision this under uncertainty, economic current the halt further and environment. prudent depth possible, of purchases and had to current the as the of we've visibility magnitude we as Given so plan share made the
strong We're outlined to execute committed funding levels. with we and operating capital to sheet and the strategy a liquidity sources, continue very we strong Overall, diversified on previously. maintaining with balance
In closing, our updates we normally to provide outlook.
very exists of CARES Given the countering the such our actions ultimate and the the time. is the assess customers, COVID-XX impact may pandemic, for assistance and to at uncertainties regulatory Act, the payment actions government the number and duration have of severity of impact that as difficult regarding this that
of guidance our we January, provide a As expectations uncertain, for drivers we Since our drivers. changed and and I help be provide But can't is in versus should the longer magnitude result, the have that to key impacts a consider outlook the duration upon. XXXX. outlook relied want environment around current no outlook key the ranges on any provided to framework the
this in digital. has impact this well as our receivable mitigate anticipate COVID-XX other And first receivable of partners, late well-positioned on on deterioration presumably year. our growth in Regarding the particularly may a We volume significant purchase impact improves, in year-over-year the later quarter. loan help the purchase this until continued some growth, volumes situation purchase basis to net through for digital is and volume of leveraging overall expertise impact growth deterioration The we're help ultimately rate. as partners providers. our will What
resulting from temporary a our time. we from investment the in interest reduction rate cuts, reduction of the income waivers a of forbearance margin, portfolio, of period well in as by as will considering fee liquidity impact Fed interest impacted potential net prime terms rates in When be a in for
portfolio increase in in the expected the loan number rates revolver are the offsetting compression from higher generated lower is receivable an expense of accounts of lower. and benchmark as income margin interest Partially the interest
it should the While noted revenues share to impact be funding we also the RSA. of and costs
be from the RSAs will we'll also Also fully pronounced credit January, realized higher the we in costs as year. impact as in more sharing the the half addition of of more through net CECL interest Regarding on the second income noted in RSAs year. impact to a see impacts, move
an are the pandemic While strong quality highlighted more credit portfolio which advanced that as this the in increase rate in call. in we and crisis, noted capabilities and and are trends overall be charge-off as great financial the have expect we net we that the year progresses, the were should it earlier entered tools
higher higher share ultimately of for losses. Similar of the mitigating recoveries revenue, to the costs believe materialize also we impact also the will we Finally, RSA. partially impact higher credit
pandemic, we have to to gain visibility expectations we While in the cannot build specific the expectations, we duration severity current provide reserve the define charge-off into be better higher be guidance. expect reserve expected than until visibility, we'll Once forward. more and a more position greater the we going and original builds of
efficiency Regarding will expense revenue some expense impact impact we and levels And activity reduction levels. ratio, of through the to this opportunities. look mitigate
and into liquidity to environment. have the will strong is situation sheet, with the situation this business greater visibility go position. and of assess and and a the continue Fundamentally, guidance remains balance we We current provide capital, resilient, when we effects into strong the
back call With that, turn over the Margaret. I'll to
