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SYF · Synchrony Financial

12 filings

10-K

SYF 10-K Annual Reports

Synchrony Financial - 12 annual reports

Filing record · 2016–202610-K1110-Q338-K245

2025
Synchrony Financial Annual Report, Year Ended Dec 31, 2025
Synchrony Financial (SYF) reported net earnings of $3.6 billion for the year ended December 31, 2025, up 1.5% from $3.5 billion in 2024, driven mainly by a $1.5 billion decrease in the provision for credit losses, which fell to $5.2 billion from $6.7 billion. Net interest income rose $455 million to $18.5 billion, reflecting lower interest expense, partially offset by higher retailer share arrangements of $4.0 billion (up 17.6%). Other income declined to $520 million from $1.5 billion because the 2024 results included a $1.1 billion gain on the Pets Best sale. Credit quality improved over the year. The net charge-off rate fell 66 basis points to 5.65%, and over-30 day delinquencies decreased to 4.49% of period-end loan receivables. The allowance for credit losses totaled $10.4 billion, or 10.06% of loan receivables. Loan receivables declined 0.9% to $103.8 billion, reflecting flat purchase volume of $182.3 billion and lower average active accounts. Management expects loan receivables and interest and fees on loans to grow in 2026, with net charge-offs in line with its long-term target range of 5.5% to 6.0%. Funding and capital remained solid. Deposits of $81.1 billion represented 84% of total funding sources, and the Basel III common equity Tier 1 ratio was 12.6%. Synchrony repurchased $2.9 billion of common stock and paid $427 million in common dividends during 2025, and $1.2 billion of its authorization remained at year-end. Synchrony also acquired Versatile Credit in October 2025 and agreed to acquire a Lowe's commercial co-branded card portfolio with about $0.8 billion of loan receivables, expected to close in the first half of 2026.
Feb 6, 2026
2024
Synchrony Financial Annual Report, Year Ended Dec 31, 2024
Synchrony Financial reported net earnings of $3.5 billion for 2024, up from $2.2 billion in 2023, driven primarily by the after-tax gain of $802 million on the sale of Pets Best, higher net interest income and lower retailer share arrangements, partially offset by higher provision for credit losses. Loan receivables rose to $104.7 billion at December 31, 2024, reflecting lower customer payment rates and the March 2024 acquisition of Ally Lending for $2.0 billion, partly offset by lower purchase volume of $182.2 billion. Net interest income increased to $18.0 billion, while the net charge-off rate rose 144 basis points to 6.31%, and the provision for credit losses increased to $6.7 billion. Credit trends were mixed: over-30 day delinquencies improved slightly to 4.70%, while over-90 day delinquencies rose to 2.40%. Management expects net charge-offs to decline in 2025 and interest and fees on loans to increase, but notes that the CFPB's credit card late fee rule, currently enjoined, could materially reduce late fee income if it takes effect. Deposits of $82.1 billion funded 84% of total funding sources, and the company returned capital through $1.0 billion of share repurchases and $398 million of common dividends. Key risks highlighted include macroeconomic sensitivity, concentration in a small number of large partners (five largest programs were 54% of interest and fees on loans), the pending late fee rule, and rising regulatory requirements as the company now has over $100 billion in total assets. The Basel III common equity Tier 1 ratio was 13.3%, and management expects CECL phase-in to reduce it by approximately 50 basis points in 2025.
Feb 7, 2025
2023
Synchrony Financial Annual Report, Year Ended Dec 31, 2023
Synchrony Financial (SYF) reported net earnings of $2.2 billion for 2023, down 25.8% from the prior year, primarily driven by a higher provision for credit losses and higher interest expense, partially offset by higher interest income and lower retailer share arrangements. Net interest income rose 8.8% to $17.0 billion. The provision for credit losses increased by $2.6 billion to $6.0 billion, and the net charge-off rate rose 187 basis points to 4.87%, while over-30 day delinquencies reached 4.74% of period-end loan receivables. Management expects net charge-offs to keep increasing in 2024 and anticipates a higher allowance and provision for credit losses in 2024. Growth remained solid: purchase volume was $185.2 billion, loan receivables grew 11.4% to $103.0 billion, and deposits increased 13.1% to $81.2 billion, representing 84% of total funding sources. Management expects interest income and loan receivables to increase in 2024, but flagged that a final CFPB rule reducing credit card late fees, if adopted and upheld, would significantly reduce interest income and late fee revenue in 2024. Capital returns continued, with $1.1 billion of common stock repurchased and $406 million of common dividends paid, and a $600 million repurchase authorization remaining at year-end. The Basel III common equity Tier 1 ratio was 12.2%. Pending transactions include the sale of Pets Best, expected to yield an estimated gain of about $750 million net of tax, and the acquisition of Ally Lending, which had approximately $2.2 billion of loan receivables, both expected to close in the first quarter of 2024.
Feb 8, 2024
2022
Synchrony Financial Annual Report, Year Ended Dec 31, 2022
Synchrony Financial (SYF) reported net earnings of $3.0 billion for 2022, down 28.5% from the prior year, as the provision for credit losses rose to $3.4 billion from $726 million in 2021. The filing attributes the decline mainly to higher credit loss provisions, which reflected reserve reductions in 2021 and reserve increases in 2022, partially offset by higher net interest income of $15.6 billion (up 9.7%). Loan receivables grew 14.5% to $92.5 billion, driven by purchase volume of $180.2 billion and moderating customer payment rates, and deposits rose 15.2% to $71.7 billion, funding 84% of total sources. Credit quality deteriorated from unusually low levels. The over-30 day delinquency rate rose to 3.65% from 2.62%, and the net charge-off rate increased to 3.00%. Management expects delinquencies and net charge-offs to keep rising in 2023 as they trend toward historical averages, and expects the allowance and provision for credit losses in 2023 to exceed 2022 levels. Retailer share arrangement payments are expected to decline in absolute terms in 2023, and interest expense and cost of funds are expected to keep increasing. Capital returns remained significant: the company repurchased $3.3 billion of common stock and paid $434 million in common dividends during 2022, and the quarterly dividend was raised 5% to $0.23 per share. The Basel III common equity Tier 1 ratio was 12.8%, down from 15.6%, reflecting higher risk-weighted assets and the first-year phase-in of CECL. The filing also notes a February 2023 issuance of $750 million of 7.250% subordinated unsecured notes.
Feb 9, 2023
2021
Synchrony Financial Annual Report, Year Ended Dec 31, 2021
Synchrony Financial (SYF) reported net earnings of $4.2 billion for 2021, up sharply from $1.4 billion in 2020, driven mainly by a lower provision for credit losses, which fell to $726 million from $5.3 billion. Net interest income declined 1.1% to $14.2 billion as interest and fees on loans fell with elevated customer payment rates, which the filing says were approximately 260 basis points above the five-year historical average. Retailer share arrangements rose 24.2% to $4.5 billion, reflecting the lower provision. Loan receivables ended the year at $80.7 billion, and deposits were $62.3 billion, representing 81% of total funding sources. The company's asset quality improved markedly, with over-30 day delinquencies at 2.62% of period-end loan receivables versus 3.07% a year earlier, and a net charge-off rate of 2.92%. The filing warns that management expects payment rates to moderate in 2022, which would likely lead to higher delinquencies, net charge-offs and provisions. The allowance coverage ratio fell to 10.76% from 12.54%. The Common equity Tier 1 ratio was 15.6%, and the company repurchased $2.9 billion of common stock and paid $500 million in common dividends during 2021. The filing also notes that the Gap Inc. and BP receivable portfolios, totaling $4.4 billion classified as held for sale, are expected to be conveyed in the second quarter of 2022, which the company expects will reduce interest and fee income compared with 2021. Key risks include concentration in a few large partners (Amazon, JCPenney, Lowe's, PayPal and Sam's Club accounted for 50% of interest and fees on loans), U.S. consumer credit exposure, regulatory and CFPB uncertainty, and reliance on Fiserv for core processing.
Feb 10, 2022
2020
Synchrony Financial Annual Report, Year Ended Dec 31, 2020
Synchrony Financial (SYF) reported a sharp earnings decline for 2020. Net earnings decreased 63.0% to $1.4 billion, driven mainly by lower net interest income and a higher provision for credit losses, partially offset by lower retailer share arrangements and other expense. Net interest income fell 14.3% to $14.4 billion, reflecting the 2019 sale of the Walmart consumer portfolio and COVID-19 impacts. Loan receivables decreased 6.1% to $81.9 billion, and purchase volume was $139.1 billion. The company adopted CECL on January 1, 2020, adding $3.0 billion to its allowance for credit losses, which reached $10.3 billion, or 12.54% of loan receivables. Credit quality improved in 2020: over-30 day delinquencies fell to 3.07% from 4.44%, and the net charge-off rate decreased to 4.58% from 5.65%. Management nonetheless expects delinquencies and net charge-offs to increase in the second half of 2021 as unemployment-related pressures persist, and expects loan receivables and interest income to grow in 2021. Deposits of $62.8 billion funded 80% of total funding sources. The company repurchased $1.0 billion of common stock and paid $520 million in common dividends in 2020, and in January 2021 announced a new buyback of up to $1.6 billion through December 31, 2021. The filing also notes a planned leadership transition effective April 1, 2021, in which CEO Margaret Keane becomes Executive Chair and President Brian Doubles becomes President and CEO. Credit ratings carry negative outlooks at both Synchrony Financial and Synchrony Bank, with senior unsecured debt rated BBB- by Fitch and S&P at the holding company level.
Feb 11, 2021
2019
Synchrony Financial Annual Report, Year Ended Dec 31, 2019
Synchrony Financial reported net earnings of $3.7 billion for 2019, up from $2.8 billion in 2018, driven primarily by higher net interest income and a reduction in provision for loan losses tied to the sale of the Walmart consumer portfolio. Net earnings increased 34.3%, and diluted earnings per share were $5.56 compared with $3.74 in 2018. Loan receivables decreased 6.4% to $87.2 billion at December 31, 2019, primarily due to the Walmart sale, which included $8.2 billion of receivables sold in October 2019, while remaining loan receivables grew 5.2%. The Walmart sale also produced reserve reductions of $857 million, which the filing cites as contributing to the earnings increase. The company operates through three sales platforms (Retail Card, Payment Solutions and CareCredit) and funds itself largely through deposits, which totaled $65.1 billion, or 77% of total funding sources. Retailer share arrangements rose 24.5% to $3.9 billion, and the over-30 day delinquency rate improved 32 basis points to 4.44%, while the net charge-off rate rose slightly to 5.65%. The company repurchased $3.6 billion of common stock in 2019 and paid $0.86 per share in dividends, and it issued $750 million of non-cumulative perpetual preferred stock in November 2019. The filing highlights a significant upcoming accounting change: adoption of CECL on January 1, 2020 is expected to increase the allowance for loan losses by approximately $3.0 billion, or 54%, and reduce retained earnings by approximately $2.3 billion. Management expects provision for loan losses to increase in 2020 as a result. The Basel III common equity Tier 1 ratio was 14.1% at December 31, 2019, and the company expects that CECL will reduce this ratio by approximately 60 basis points per year during the phase-in period through 2023.
Feb 13, 2020
2018
Synchrony Financial Annual Report, Year Ended Dec 31, 2018
Synchrony Financial's 2018 Form 10-K reports net earnings of $2,790 million, up from $1,935 million in 2017, with diluted EPS of $3.74 versus $2.42. The increase was driven primarily by higher net interest income, which rose 7.3% to $16,118 million, and a lower provision for income taxes, which fell 38.5% to $854 million, reflecting the reduced U.S. corporate tax rate under the Tax Act and the $160 million 2017 tax remeasurement charge. Partially offsetting this were a 4.7% increase in the provision for loan losses to $5,545 million, largely from the reserve build for the PayPal Credit portfolio, and a 9.3% rise in other expense to $4,095 million. Loan receivables grew 13.7% to $93.1 billion, primarily due to the July 2018 acquisition of the U.S. PayPal Credit program ($7.6 billion of loan receivables). Total deposits increased 13.3% to $64.0 billion, with direct deposits at $49.4 billion, and deposits funded 73% of total funding sources. Over-30 day delinquencies rose to 4.76% and the net charge-off rate increased to 5.63%. The company repurchased $1.9 billion of common stock and paid $0.72 per share in dividends, and it has a $2.2 billion repurchase program authorized through June 30, 2019. Investors should note the pending sale of the Walmart Retail Card receivables, announced January 23, 2019 and expected to close late in the third quarter or early in the fourth quarter of 2019, along with the expectation of a slight increase in the 2019 net charge-off rate, primarily due to the PayPal Credit portfolio. The filing also discloses a pending securities class action filed November 2, 2018, and a related derivative action filed January 28, 2019. Current ratings are BBB- (Fitch and S&P) for senior unsecured debt at the holding company.
Feb 15, 2019
2017
Synchrony Financial Annual Report, Year Ended Dec 31, 2017
Synchrony Financial (SYF) reported net earnings of $1,935 million for 2017, down 14.0% from $2,251 million in 2016, driven mainly by higher provision for loan losses ($5,296 million, up $1,310 million or 32.9%), higher other expense, and $160 million of additional tax expense from the Tax Act. Adjusted net earnings, excluding that Tax Act impact, were $2,095 million. Net interest income rose 11.0% to $15,016 million on higher average loan receivables, and loan receivables grew 7.3% to $81,947 million at year-end. The company financed $131.8 billion of purchase volume in 2017 across three sales platforms: Retail Card, Payment Solutions and CareCredit. Retail Card generated $12.0 billion, or 74%, of total interest and fees on loans, and the five largest Retail Card programs (Gap, JCPenney, Lowe's, Sam's Club and Walmart) accounted for 53% of total interest and fees on loans. Deposits grew 8.5% to $56.5 billion and represented 73% of total funding sources. Net charge-off rate rose 80 basis points to 5.37%, and the company expects the trend of rising charge-offs and delinquencies to continue in 2018 at a more modest pace. The filing describes the pending PayPal transaction, a roughly $6.8 billion acquisition of PayPal Credit U.S. receivables that is expected to close in the third quarter of 2018 subject to regulatory approval. Capital remained strong, with a Basel III common equity Tier 1 ratio of 16.0% under transitional rules, and the company repurchased $1.5 billion of common stock and paid $446 million in dividends in 2017. Management expects to increase both dividends and buybacks in 2018 due to the lower corporate tax rate, subject to regulatory and board approval.
Feb 22, 2018
2016
Synchrony Financial Annual Report, Year Ended Dec 31, 2016
Synchrony Financial (SYF) reported net earnings of $2.3 billion for 2016 ($2,251 million), up from $2,214 million in 2015, with return on assets of 2.7%. The company is one of the premier consumer financial services companies in the United States and the largest provider of private label credit cards based on purchase volume and receivables. During 2016 it financed $125.5 billion of purchase volume, and at December 31, 2016 it had $76.3 billion of loan receivables, 71.9 million active accounts and $52.1 billion of deposits, which represented 72% of total funding sources. Operations run through three sales platforms: Retail Card, Payment Solutions and CareCredit, with Retail Card generating $10.9 billion, or 74%, of total interest and fees on loans. Credit quality weakened modestly during 2016. Over-30 day delinquencies rose 26 basis points to 4.32% and the net charge-off rate rose 21 basis points to 4.57%, and the provision for loan losses increased $1,034 million, or 35.0%, to $3,986 million. Management expects delinquency and charge-off rates to continue increasing modestly, and the allowance coverage ratio rose to 5.69%. Concentration is a key investor consideration: the five largest programs (Gap, JCPenney, Lowe's, Sam's Club and Walmart) accounted for 54% of total interest and fees on loans, and JCPenney, Lowe's and Walmart each exceeded 10%. Capital and shareholder returns were active in 2016. The company declared and paid dividends of $0.26 per share ($214 million) and repurchased $476 million of common stock under a program of up to $952 million through June 30, 2017. Its Basel III common equity Tier 1 ratio under transitional rules was 17.2%, and senior unsecured debt is rated BBB- by Fitch and S&P. The filing also discloses ongoing CFPB consent orders and a CFPB Notice of Opportunity to Respond and Advise regarding credit bureau reporting.
Feb 23, 2017
2015
Synchrony Financial Annual Report, Year Ended Dec 31, 2015
Synchrony Financial (SYF) reported net earnings of $2.2 billion for 2015, up from $2.1 billion in 2014, with a return on assets of 2.9% versus 3.2%. The company is one of the premier consumer financial services companies in the United States and describes itself as the largest provider of private label credit cards in the U.S. based on purchase volume and receivables. During 2015 it financed $113.6 billion of purchase volume, and at December 31, 2015 it held $68.3 billion of loan receivables, 68.3 million active accounts and $43.4 billion of deposits. The company operates through three sales platforms: Retail Card ($7.4 billion, or 69%, of total platform revenue), Payment Solutions ($1.7 billion, or 15%) and CareCredit ($1.7 billion, or 16%). The filing marks the company's separation from General Electric. GE's exchange offer was completed on November 17, 2015, and GE no longer owns any of Synchrony's common stock. Synchrony also became a stand-alone savings and loan holding company, and its Bank is regulated by the OCC. Earlier, the Bank's Operating Agreement with the OCC was terminated on February 4, 2016, and the CALMA also terminated. The company says it does not expect to pay a dividend or repurchase stock until it has the Federal Reserve Board's non-objection, and it expects to keep retaining earnings to build capital and liquidity. Its fully phased-in Basel III common equity Tier 1 ratio was 15.9% at December 31, 2015. Key risks highlighted include concentration in a small number of Retail Card partners (five largest programs produced 49% of platform revenue), reliance on securitization and deposit funding, regulatory and CFPB enforcement exposure, and dependence on First Data and FIS (transitioning to Fiserv) for key services. Credit performance improved, with the net charge-off rate falling to 4.33% from 4.51% and the over-30 day delinquency rate falling to 4.06% from 4.14%.
Feb 25, 2016
2014
Synchrony Financial Annual Report, Year Ended Dec 31, 2014
Synchrony Financial (SYF) filed this annual report on Form 10-K for fiscal 2014, following its initial public offering in August 2014. The company is the largest provider of private label credit cards in the United States by purchase volume and receivables, operating through three sales platforms: Retail Card, Payment Solutions and CareCredit. In 2014 it financed $103.1 billion of purchase volume, ended the year with $61.3 billion of loan receivables and 64.3 million active accounts, and reported net earnings of $2.1 billion, up from $2.0 billion in 2013, with a return on assets of 3.2%. The company remains majority-owned by General Electric, which holds approximately 84.6% of its common stock through GECFI and GECC. GE has stated it targets completing a full separation in late 2015, but that depends on Federal Reserve Board approval of Synchrony's application to remain a savings and loan holding company, and the filing states that timing and conditions are uncertain. Until that approval, the company says it expects to retain earnings and not pay dividends or repurchase stock, and it describes significant costs and infrastructure build-out required to operate as a standalone company. Key risk areas investors should weigh include concentration in a small number of large Retail Card partners (the ten largest accounted for 59.8% of platform revenue), rising funding costs after the IPO as GE-related debt is replaced with third-party borrowings, and ongoing regulatory and consumer-enforcement exposure, including CFPB and DOJ consent orders covering CareCredit and debt cancellation products. Deposits grew to $35.0 billion, with $19.7 billion from direct deposits, and the Basel III Tier 1 common ratio was estimated at 14.5%.
Feb 23, 2015