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bread financial . Alliance Data Reports First Quarter 2021 Results April 29 , 2021 --Announced Bread strategic partnership leveraging Fiserv's extensive merchant network-- - Net income of $ 286 million or $ 5.74 per diluted share reflects continued resilient performance ; strong credit management and a more favorable economic outlook drove a net reserve release of $ 165 million - Stable year - over - year credit sales aligned with improving consumer confidence and a recovery of in - store sales COLUMBUS , Ohio , April 29 , 2021 / PRNewswire / -- Alliance Data Systems Corporation ( NYSE : ADS ) , a leading provider of data - driven marketing , loyalty and payment solutions , today announced results for the quarter ended March 31 , 2021 . AllianceData " Alliance Data's first quarter results represent a positive start to the year and reflect the continued sequential improvement in business conditions as well as the success of our ongoing business transformation strategies , " said Ralph Andretta , president and chief executive officer of Alliance Data . " On a year - over - year basis , revenue declined 21 % , due to elevated payment rates and the continued impact of the pandemic . Total expenses excluding provision for loan loss declined 6 % year - over - year , despite increased strategic investment and costs related to Bread , which was acquired in the fourth quarter . We continued to enhance our loyalty programs and competitive positioning , providing an integrated full suite of product capabilities for our partners and expanded choices of payment solutions for consumers . " Credit sales year - over - year performance strengthened versus the previous quarter , in line with improved consumer confidence levels , leading to a recovery of in - store sales performance , coupled with continued strength of digital spending . Application and new account growth rates improved year - over - year as consumers were increasingly active in omnichannel shopping and engagement . Card Services revenue increased sequentially as average receivables remained steady and yields improved . We project a more favorable operating environment for LoyaltyOne® in the second half of the year with the potential for a surge in post - pandemic travel - related redemptions . " The improvement in our credit metrics reflects discipline in our risk management and underwriting activities , which remains a key element of our strategy . We took deliberate actions and the results are evident due to our net loss rate remaining below the historical rate of 6.0 % and a first quarter delinquency rate of 3.8 % , down 220 basis points year - over - year . Payment rates benefitted from the additional government stimulus checks received at the end of the quarter , and we expect consumer financial health to continue to improve , auguring well for a broad - based US economic recovery . " Mr. Andretta continued , " The joint partnership between Bread and Fiserv announced today provides additional growth opportunities , enabling us to leverage Fiserv's extensive merchant network . This strategic partnership will power point - of - sale lending for Fiserv's substantial merchant base and drive platform sales and receivables growth for Alliance Data . Additionally , we successfully launched our first card brand partner on Bread's platform . We are actively pursuing cross - sell opportunities , and our partners have shown considerable interest in augmenting existing programs with Bread's white - label solutions . We continue to invest in the expansion of Bread's innovative fintech capabilities to capitalize on its significant prospects and drive long - term profitable growth for our shareholders . " 2021 OUTLOOK " We remain keenly focused on balancing growth and profitability to ensure the sustainable economics of our portfolio . In 2021 , we expect our credit sales to increase at a high - single- to low - double - digit rate , with a net loss rate below 6 % for the year and in the mid - to - upper 5 % range in the second quarter of 2021 , " said Mr. Andretta . " Based on our current visibility , credit card and loan receivables at year - end 2021 are projected to be in line with year - end 2020 levels , although average receivables are expected to be down mid - single - digits for the year , reflecting year - over - year pressure in the first half of 2021. We expect to resume high - single - digit to low - double - digit card receivables growth as we enter 2022. Total revenue is anticipated to be down low - single - digits compared to 2020 as the impact from lower receivables is partially offset by improving revenue from LoyaltyOne and the Bread acquisition . We expect efficiencies to enable us to keep total expenses excluding provision for loan loss flat year - over - year while we continue to fund initiatives to better position the Company for future growth . For 2021 , our expense forecast includes over $ 100 million of digital innovation and technology enhancement and $ 50 million in marketing investments to support growth and a return to positive operating leverage in 2022. " CONSOLIDATED RESULTS SUMMARY ( in millions , except per share amounts ) Revenue Quarter Ended March 31 , 2021 2020 Change -21 % $ 25 1,452 % $ 1,085 $ 1,382 Income before income taxes ( " EBT " ) $ 394 Net income $ 286 $ 30 854 % Net income per diluted share $ 5.74 $ 0.63 811 % Diluted shares outstanding 49.8 47.7 Shares of common stock outstanding 49.7 47.6 ********************************** Supplemental Non - GAAP Metrics ( a ) : Pre - provision , pre - tax earnings $ 428 $ 681 -37 % ( a ) See " Financial Measures " for a discussion of non - GAAP Financial Measures . First Quarter : Due to the impact of COVID - 19 , consolidated revenue decreased 21 % to $ 1,085 million , compared to the first quarter of 2020. EBT