Press Release Details

Alliance Data Systems Corporation (NYSE: ADS), a leading global provider of data-driven marketing and loyalty solutions, today provided an update on its Card Services segment.

In conjunction with the release of the Company’s Master Trust Monthly Noteholder’s Statement, the Company is releasing similar metrics for the overall total managed portfolio. The Master Trust data represents a subset of the Company’s total managed portfolio, and the Company believes the information presented below provides a more complete view of the Card Services segment.

1. Compares to 6.5% and 6.3% for the month and two months ended February 28, 2017, respectively. The difference in the year over year net charge-off rate for the month of February is attributable to the impact of the hurricanes of approximately 15 basis points and recovery rates of approximately 40 points.

⁽²⁾ Delinquency and net charge-off rates will be elevated for the first part of 2018 as accounts that were provided a two-month leniency period due to last year's hurricanes will roll through delinquency. In addition, net charge-off rates will be impacted by lower recovery rates as the Company transitions from third-party sales of written-off accounts to in-house collections in order to realize higher long-term recovery rates. Both of these factors are expected to be transitory and dissipate as the year progresses. As such, the Company is targeting a full-year loss rate of 6%.