01—Abstract
Summary
Summary of the 10-K filed February 6, 2026. Cited figures are marked; the original filing is the authoritative source.
Synchrony Financial (SYF) reported net earnings of $3.6 billiona 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 billionb, 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 billionc, 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 billiond 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.
02—Key points
Key Highlights
- Net earnings of $3.55 billion in 2025, up 1.5% from $3.50 billion in 2024; earnings per diluted share of $9.28 versus $8.55 in 2024.
- Provision for credit losses fell $1.5 billion to $5.2 billion, helped by lower net charge-offs and a $439 million reserve release.
- Net charge-off rate improved 66 basis points to 5.65%; over-30 day delinquencies decreased to 4.49% of period-end loan receivables.
- Loan receivables decreased 0.9% to $103.8 billion, with purchase volume flat at $182.3 billion and 70.7 million active accounts at year-end.
- Other income fell to $520 million from $1.52 billion, as 2024 included the $1.1 billion gain on the Pets Best sale.
- Deposits totaled $81.1 billion (84% of funding); Basel III common equity Tier 1 ratio was 12.6%.
- Returned capital through $2.9 billion of share repurchases and $427 million of common dividends ($1.15 per share) in 2025.
03—One dollar
04—Financials
Financial Highlights
Figures from 10-KFY2025filed February 6, 2026Financial Statements
FY2025 against FY2024
| Line item | FY2025FY2024 | Change |
|---|---|---|
| Net Income | $3.55B$3.50B | +1.5% |
| EPS (Basic) | $9.38$8.64 | +8.6% |
| EPS (Diluted) | $9.28$8.55 | +8.5% |
| Shares Outstanding (Basic) | 369.90M396.50M | −6.7% |
| Shares Outstanding (Diluted) | 373.90M400.60M | −6.7% |
05—Questions
Frequently Asked Questions
How did Synchrony's profitability change in 2025?
Net earnings rose 1.5% to $3.55 billion. The main driver was a $1.5 billion decline in the provision for credit losses to $5.2 billion, reflecting lower net charge-offs and a $439 million reserve release. Net interest income increased $455 million to $18.5 billion because interest expense fell. These gains were partly offset by lower other income, which comparatively included a $1.1 billion Pets Best gain in 2024, and by higher retailer share arrangements of $4.0 billion.
What is the company's credit outlook for 2026?
Management expects loan receivables to increase in 2026, driven by growth in purchase volume and average active accounts, including new or recently launched programs. It expects net charge-offs to remain in line with its long-term target range of 5.5% to 6.0%. It also anticipates that its allowance coverage rate will stay consistent with the 10.06% recorded at year-end 2025.
How is Synchrony funding its business and returning capital?
Deposits are the primary funding source, totaling $81.1 billion at December 31, 2025, or 84% of total funding sources. The company also relies on securitized financings and senior and subordinated unsecured notes. In 2025 it repurchased $2.9 billion of common stock and paid $1.15 per share in common dividends, totaling $427 million. At year-end, $1.2 billion remained under its 2025 share repurchase authorization.
What were the main partner and portfolio developments in 2025?
Synchrony extended its program agreement with Amazon and launched a new partnership with OnePay to become the exclusive issuer of a general purpose and private label credit card program at Walmart. It also announced the acquisition of Lowe's commercial co-branded credit card portfolio, with about $0.8 billion of loan receivables, expected to close in the first half of 2026. The five largest programs (Amazon, Lowe's, PayPal, Sam's Club and TJX) accounted for 54% of interest and fees on loans.
What regulatory matters could affect Synchrony?
The CFPB's credit card late fee rule was vacated in April 2025, but the company had already implemented product, pricing and policy changes in anticipation of it. Synchrony will become subject to supervisory stress tests on a biennial basis, with the 2026 test as its first, and a new stress capital buffer will be assigned beginning in 2028. The filing also notes that policy discussions in January 2026 regarding caps on credit card interest rates could constrain the pricing of its credit products.
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