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bread financial . Alliance Data Reports Second Quarter 2021 Results July 29 , 2021 - Net income of $ 273 million , or $ 5.47 per diluted share - Strong credit management and more favorable economic outlook drove a net reserve release of $ 208 million - Credit sales returned to pre - pandemic levels as we exited the quarter - Credit sales trends align with expectation of strong 2022 receivables growth - Successful execution of strategic initiatives , including launch of Bread / Fiserv relationship - Previously announced spinoff of LoyaltyOne® remains on track for year - end completion COLUMBUS , Ohio , July 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 June 30 , 2021 . Alliance Data " Alliance Data's second quarter results highlight considerable progress in the transformation of our company , driven by efficient execution across our portfolio , together with improving business conditions , " said Ralph Andretta , president and chief executive officer of Alliance Data . " Credit sales returned to pre - pandemic levels as we exited the quarter , as retailers experienced robust omnichannel shopping and engagement aligned with improved consumer confidence and mobility . While reopening efforts are progressing in the U.S. , we are experiencing a more gradual recovery both in Canada and internationally . We continue to maintain a favorable outlook for the LoyaltyOne segment given pipeline and activity level improvement . AIR MILES® reward miles redeemed and average flight bookings per day significantly increased in June while BrandLoyalty's new campaign pipeline strengthened , indicating more robust growth in the second half of 2021 . " Credit performance remained strong , reflecting our disciplined risk management and the ongoing impact of economic stimulus resulting in increased customer liquidity and greater ability to pay . Our net loss rate remains well below our historic average rate of 6.0 % and our delinquency rate was exceptionally low at 3.3 % . We expect credit metrics and payment rates to begin to normalize as stimulus programs wind down in the latter half of the year . " Business development was robust during the second quarter , highlighted by a number of new partner signings , multiple renewals , and a growing pipeline of high - quality prospects . We continue to expand Bread's direct acquisition merchant partners as well as enlisting existing card brand partners to launch on Bread's platform . The e - commerce pilot for the Bread and Fiserv strategic relationship went live at quarter - end . Select merchant launches from Fiserv's extensive merchant network will be staggered throughout the second half of 2021 and a full roll - out planned for 2022. We expect Alliance Data's differentiated full - spectrum lending capabilities and broad product suite to drive strong growth in 2022 and beyond . " In June , we released our 2020 Environmental , Social and Governance ( " ESG " ) performance report highlighting the progress we have made over the past three - years . Our ESG strategy is a key component of our business transformation , which prioritizes delivering long - term sustainable stakeholder value , modernizing technology , advancing a diverse and inclusive culture , and maintaining a commitment to ethical decision making . These priorities are embedded in the Company's business practices and corporate governance , and will help drive the long - term success of Alliance Data . " 2021 OUTLOOK " First half results represent a strong foundation on which to build continued revenue growth , as receivables gain traction and LoyaltyOne activity increases in the second half of this year . We remain keenly focused on the execution of our strategy , focused on balancing growth and profitability to ensure the sustainable economics of our portfolio . " Assuming continued strength in the U.S. economy , we are increasing our 2021 credit sales forecast to a double - digit growth rate and now expect a net loss rate in the low 5 % range for the year , " said Mr. Andretta . " Based on our current visibility and payment rate expectations , 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 the year - over - year pressure in the first half of 2021 and elevated payment rates . We expect to resume high - single - digit to low - double - digit average receivables growth in 2022. Total revenue for the year 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 position the company for future growth . In 2021 , we are investing over $ 100 million in digital innovation and technology enhancements and $ 50 million in marketing to support growth and a return to positive operating leverage in 2022 . " We remain on track for the successful spinoff of our LoyaltyOne segment , with completion expected by year - end 2021 , positioning both companies to pursue their respective unique growth opportunities and build long - term stockholder value . " CONSOLIDATED RESULTS SUMMARY ( in millions , except per share amounts ) Revenue Income before income taxes ( " EBT " ) Quarter Ended June 30 , 2021 2020 Change $ 1,012 $ 979 3 % $ 372 $ 47 691 %