me Allow echo Margaret and briefly to crisis nation. said what our morning, earlier Brian, facing the about Thanks, good dual everyone.
our serve never the our and had we committed I the people, in and We’ve this proud determined been are volatility, fight who our live. are. and by safe, is change in With inside the partners keep of customers company employees we successful We backdrop which more unprecedented uncertainty meaningful inclusion our equality the our we and time. that communities company and heart of live and help a commitment values driving to during racial and to to been for our be
of to Slide results turning the Now financial on start second the presentation. quarter. I'll for X our
volume as so the performance company the the who First, standpoint, from important well purchase trends from March, mid-March. I update activity we Slide sales volume the year-over-year an travel, a healthcare purchase provide impact volume forbearance. are total dating purchase of curtailment back non-essential a elective increased, growth January was second event as stores with significantly Purchase the were through strong retail of and for also was number high restrictions curtailed by a to total want from of as to COVID-XX X platform volume double-digit for of growth as quarter, January. the and company entertainment services. and some by There cover half growth seeing shows In platform to closed. government accounts received significant for and of on of
as much the in significant sales purchase for medical the expenditures. impacted as spending full and Retail volume during first from of XX% increase XX%, for better products essential digital concentration the April in by period. that benefited company. due April half as result, the retail services programs CareCredit performed and having such decreasing CareCredit XX% elective month the supplies looking volume, as as of dental home-related grocery, higher Solutions card an in declined total Payment procedures significantly, most to was a declined with decrease of XX%. declined and and In for in at the well As this declined platform, card spending planned
in second April year orders stay As through on we sales and May volume of consumers the increased home second June reopening trough. quarter. in each of the the occurred, significant and purchase recovery became their moved and from recovery initial half we over June, In in the three volume a purchase prior purchase overall phases more comfortable volume saw platforms a as at X% saw the
retail balance progressed usual accounts. of quarter, of of purchase as some the well business impact we the key declined X% and our declined took through see digital well in reflecting drivers from portfolio account the average to other per crisis than mix as new volume pandemic’s did by the for increase account accounts X% and underwriting volume to actions due the the the in as a quarter. partners, new Looking XX%, as a We combination as impact lower
encouraged a we is these industry-wide uncertainty when the abate. lies which While by trends, measures amount are ahead actions there stimulus of and tremendous forbearance
diversification the areas uncertain mix, our given largely likely services still benefit dampen at some digital to ultimate impact positioned being including the spend duration will a home-related as as However, business such pandemic expenditures, well unknown of the of strong The the largely as still of is economic in veterinary as effects this as well from magnitude segments is in point. downturn. and component,
granted X, forbearance. total Slide million forbearance XX, in a a Through and of we cumulative or accounts of account balances granted we’ve accounts X.X impact approximately to of billion the accounts that forbearance not highlight to in compared Moving performance time forbearance. at $X.X were the June to
trends not days accounts XXX,XXX due, are balances performance lower. look remaining current XX the leave We either stable. Through is $X.X were When these small will that have of than approximately surprising. enrolled have in these line mid-July, payment XX% forbearance, account billion or see days June past you numbers accounts XX forbearance. for seen some Of accounts are XX% a less characteristics, of utilization Credit past so nearly due. higher relatively number or and at in through XX in forbearance plus are relatively you accounts been of rates the bringing that
than March in XX,XXX enrolling interest APs and In perspective, have impact number where terms of substantial dropped to from we less in From million saw total, June. early XX,XXX in $XX day performance, nearly decline through to per second in late seeing a day, financial April, a the this $XX quarter. in on the accounts peak the enrolling in per weighed are end of we accounts in of we forbearance million trend a
enrolled of payment XX% accounts accounts XX% enrolled not XX% the at credit enrollees score the of at Looking forbearance a of are the X% the trends June, From nearly those and of or making making XX% time of of payments, payments. in enrollment. were XXX had paid bringing that balance perspective, FICO a below for making in payments. their full were those accounts
accounts three slightly accounts. entry forbearance is in the into forbearance similar For on credit times than performance that program, Accounts the increase delinquency. other exited have worse their rate have a
limited However, similar accounts, a given material in time improved delinquency this not impact will performance point accounts than not be on cover is XX will is I It our have in while perform which at weaker generally ultimately delinquency had delinquency. the second that clear how been the performance it measures, on during has later those forbearance the quarter. should our the presentation. plus the accounts noted
provide to as to monitor accounts of We that continue the forbearance have the the to closely impact will stay as forbearance, cardholders. in rate well exited and performance assistance in accounts
and as financial was on $XXX $XXX second This have On quarter the Walmart we excludes dual quarter or core have X. $XX of through receivables basis, per second diluted year. for X%. or Slide COVID-XX and and to down accounts in a loan accounted million accounted increase an X. provide a portfolios, from basis, after several CECL XX% X implementation growth X% X% down of portfolio included we was these card results volume basis, Slide down losses of areas year. balances core EPS fees of last noted prior interest for XX% On million cards in year. declined the the of from loan the by and products. prior down Yamaha Dual earnings credit which and as a increase second the were and impacted co-branded we XX% which X% loan On and diversification average to quarter on and and the This share. the XX% $X.XX. the were the purchase included this they Slide purchase co-branded volume reduced for volumes tax, our active a on provision from declined in year. reported loan of result level morning, receivable were On $X.XX Moving purchase The receivable million
through the also positive seeing the credit of these and we magnitude $XX of March charitable spend. the experienced but noted million. April, these and during and to reductions of accelerated Other from partially higher purchase accounts unknown to decreased related and by some reduction driven see duration by that volume to impact million As the our is active as $XX second impact remains down is of increase through losses. The year. program or the cost projected related the provision while difficult earlier, provide RSAs sale, of The May and discretionary losses for COVID-XX-related income of a I due response for from more reserve starting point. Walmart as the build at last having the June. to primarily signs for $XXX and was These the reserve operational or moved projected average that due certain impact pandemic and We XX% prior primarily and reserve the were of moved $XXX million. to to encouraging reductions contributions. losses, we COVID-XX X.X% in X% totaled as the expense was largely on we the a offset the from metrics, receivables was COVID-XX quarter would COVID-XX note year metrics $XXX quarter, XX% last in RSAs in impact the largely forecast the lower million did and expenses $X are the or percentage we reflect trending increased quarter impact performance. decreases average million precise year. The losses million this increased COVID-XX-related Other a Walmart increased is for still
Moving X. to Slide results our on platform
impacted partially metrics the Other driven from were programs. loan the by earlier, our retail being the noted of COVID-XX. in growth receivables down, portfolio strong degrees platform offset with were COVID-XX. to by impact were COVID-XX down Walmart and the X% sales core digital by due card, sales I As In varying impact
resulted lower key Payment fees strength X%. on loan primarily X%. fees. Interest sports partnerships quarter in Slide of average Solutions volumes Purchase a power loans X. Although driven receivables was COVID-XX on in late of XX% decreased as and decreased programs X%, renewed by and noted impacted accounts and growth this core by We signed new decreased active number
of with the close along We of to growth did at as during quarter discretionary base most card for of These see to on that purchase declined decline which volume result XX% in networks in impact build and stands encouraging initiatives was and offset specialties the merchants future. which provide growth continue the services. Interest primarily X,XXX business COVID-XX. decreased down reuse, and continue the purchase such X%. added decreased driven drive new but CareCredit excluding gas as providers our and merchant and sign a see progressed noted X% lower to XX%. networks, now the fees began COVID-XX as driving other through as discount, we volume, the organically higher planned as partially accounts did of the trends approximately active Average negative partnerships by and quarter, the quarter. some oil second in in loans Receivables veterinary I we a by impacted was solid earlier, to X%,
reduction declined and XX.XX%, cover margin. lower This to drive our by impacts interest utility compared X,XXX declined as the during We a waivers we I a in the forbearance the due has over the decreased network due partially margin liquidity, noted points XX mix quarter. to net primarily rates for point of decline XX% the XX% Net benchmark the loan of the sale second The interest in cost XX.X% largely provided income locations on to of helped network earnings from that basis rates basis interest-bearing XX interest to to a last interest This points reuse pricing. Walmart and from and our and receivables the X.XX%, quarter. by and interest benchmark were our margin. an net fees lower interest higher liabilities waivers interest continue the was Walmart of rates decrease and fee of decrease to in total investment sale a impact interest of of XX portfolio, loan driven and decline, a on accounted by primarily to as net basis to margin rate decline. receivables the Slide receivables expand benchmark lower for volume decreased for our benefit XX to margin lower added CareCredit fees XX.XX%, The benchmark point from by XXX driven I’ll securities move earlier, driven this assets the receivables margin core networks percent lower receivables accounted deposit lower interest last new margin income card during portfolio. COVID-XX and result interest and the purchased of of liquidity our year’s of of loan net of as net impact provider accounted This and of for offset yield, in year, expansion in basis, benchmark The the and the quarter. of and loan in XX increasing XX% The a COVID-XX primarily XX% margin total mix, the our net net interest rates. fee points XXX These of basis accounted interest to The yield basis rates. On by X%. on impact a basis decline. driven points and trends.
on Slide key XX. will I Next, cover trends credit
was rate quarter, our with plus of year and was last delinquency X.XX% start to X.XX%, specific compared last year. compared delinquency The XX X.XX%, in dynamics the I’ll rate X.XX% XX terms plus delinquency In the to trends.
Walmart to year. the rate portfolio, and of XX impact plus delinquency rate was a points, approximately compared was down XX XX basis basis the last points exclude the you delinquency down If plus XX approximately
reduction The sale was primarily Focusing on trends. net charge-off credit X.XX%, improving last and in the X.XX% to compared driven rate year. The rate net Walmart net trends. charge-off by charge-off was the
Walmart Excluding CECL of points post charge-off net basis the portfolio, approximately receivables allowance rate the of the XX.XX%, percent year. was lower The was losses credit XX than for a implementation. impact last as loan
the expected CECL, reserve method. reserve the build second of COVID-XX been which quarter the quarter. under we under as in a in was of trends, the effects expect the second than we have accounted forbearance provisioning The do for build would will benefit allowance The providing the continue to move AXXX most of trends impacted reserve under Excluding and higher the method the $XXX trends X.XX%. CECL be million overall quarter in was second AXXX million the In the degree solid, $XXX be of credit COVID-XX, impact forward. due to summary, by delinquency overall
XX, ratio This was for purchase from the response ratio spend. efficiency The last second negatively certain expenses partially expenses quarter. operational attributable to COVID-XX. The to Moving Overall, Walmart, year. expenses and year operational certain losses, slightly related higher the for by versus reductions were higher charitable reductions attributable to under offset certain lower response contributions. million was impacted XX.X% cost during quarter The COVID-XX Slide to and losses million to to to by the our our last volume expenditures was mainly and in related was quarter expenses down from experienced driven active accounts the or and $X quarter. to for by X% decline discretionary the the expenses cover I’ll $XX average XX.X%
basis lower ratio been have points or those XX.X%. Excluding impacts, approximately would the XXX efficiency
to XX. Slide Moving
quarter. platform, loan in we the Given second our strength in during the our deposit reduction and to continue liquidity receivables build
level are While higher actively managing volatility, levels we prudent it liquidity funding we mitigate liquidity. the and our is to given profile uncertainty excess have think of to
of funding result this mix there shift strategy, our quarter. the a is in the As during a of
year. billion, deposits Our last declined $X.X to compared
of We at unsecured million billion and quarter comprising and also at end. of with funding our reduced our our deposits $X.X by securitized the securitized and This XX% funding unsecured $X.X compared last XX% respectively. XX% puts sources of size to each funding year funding sources
in overall given While last deposit quarter, held of billion. we liquidity, second which $XX.X undrawn facilities deposit $XX was including our is excess at the level growth slowed to our we of equated direct liquidity This year’s Total assets. year. XX% credit last billion, XX% up from
details Before the by should in noted issued banking I provide joint to on electing primary position, benefit our the two which rules benefits. has we're be that it capital take transition agencies March, of the federal
year the XX.X% compared year, CECL ratio implementing last this of on basis adjustment a reserves and increased the a First, it under reflecting the the two to reserves and plus of years; preferred ratio, capital provisioning stock XX.X%, capital effects amortized the in the with year’s to issuance. also the the result November. basis of quarter And current as rules, CECL second, XX.X% a the under points above points of With to the phased-in and increased last transition capital compared to issuance the period framework, XX.X% preferred last preferred transition to CECL as adjustment. we portion increase delays well Tier-X incremental allows XX.X% last for issuance. The XXX deferred ratio transition The ended at level rules, ratio the XXX CECL for reflecting XX.X%. be CET-X total Tier-X an transition first basis reflecting under is stock fully XX.X%
we prudent made the the so will economic During the we per quarter, $X.XX we a share. of and common the quarter, given impact being visibility possible, of uncertainty, on as ultimately repurchases, to COVID-XX share the decision further on have greater that dividend environment. paid the current magnitude have Last economic stock announced halt as of we
to will previously. Overall, continue we outlined to this the we evaluate move continue strategy We execute on that forward. we as
uncertainties funding consumers, pandemic, regarding with the a and of strong maintaining number liquidity and committed severity closing, with and to sources, the are sheet balance and operating exists given diversified COVID-XX duration actions of of payment levels. other countering We time the capital In strong that the remains for actions may key outlook have government impacts to ultimate specifics assistance at assess around difficult this such drivers. CARES and impact Act, and to very the regulatory the as provide
a on to we consider impacts framework key the outlook our quarter, help As last did to you I provide drivers. want
receivables loan a impact and volume, then first into had particularly in businesses in significant quarter we on Regarding COVID-XX and purchase the second growth, positives quarter improvement late purchase reopened, volume. the turning and saw as
areas as the such open, inside expect the continue, forward. healthcare. this volatility and home financing we essential As seeing in further to we this diversity help continues nationally responses in digital, businesses and to our remain COVID-XX result long platforms, and resiliency as trend it continues but will may whether What as move as in the in increase effects to our trends and recovery we is the are growth influence
growth overall in key this volume providers We direction a our partners will our during will expertise leveraging capabilities rate. receivable help be our difficult and This continue to and influence in period. purchase
And interest in reduction receivables of period net factors the the cuts of impacted been on and of by a yields. forbearance a from interest temporary size FED in our impact reduction sheet and including for of on liquidity has balance Our and the time. buildup fee of in benchmark security our rate of number waivers receivables, terms investment rates margin resulting our
of and liquidity forbearance interest be. evolve income our number will in generated accounts we an receivable portfolio to expect lower move deploy and at look and continue interest means We the to fees forward, of impact loan and As interest should from do margin, in higher increase to it we excess that expense. benefit our will continued net to
the be through it on Finally, we revenues the share costs also should and RSA. impact funding noted
industry-wide income in as will the the we'll assistance forbearance addition and ultimate cost in be by somewhat RSAs, net and credit credit impacts, determined expected Regarding timing to impact from also interest higher deterioration stimulus impact see The an credit the of actions abates. sharing costs. amount
the we impacts While us net noted we pandemic the charge-off strong trends quality COVID-XX. should and Also, that progresses, better are will economic credit it quarter. the capabilities portfolio help as increase second improve be highlighted as from in an we rate have overall navigate the to in this the continued and expect year tools and previously that entered
also losses. we partially higher mitigating recoveries impact ultimately higher will the Finally, materialize of believe
more current While we be and pandemic, until severity expectations we'll the into we gain move we guidance. stimulus duration net charge-off we expected be the to the visibility a builds going to forward. cannot reserve elevated reserve better continue greater to have of more and in provide from we Once as expect position the the impacts specific build and forward, forbearance, industry-wide define and visibility,
Regarding ratio, levels to look we and levels some the through expense and impact impacts reduction the expense mitigate opportunities. revenue will of will activity efficiency
a to business With our comprehensive is the of of back through portfolio. with and a Fundamentally, I'll set in formulating We review a have balance result turn we over undertaken loan Margaret. position. of actions our to and this sheet, are capital, situation remains expense and that, reduction as resilient a operating right-size mix receivable operating base expense and strong call our and are going the strong liquidity the
