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SYF · Synchrony Financial

38 filings

10-Q

SYF 10-Q Quarterly Reports

Synchrony Financial - 38 quarterly reports

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

2026-Q3
Synchrony Financial Quarterly Report for Q3 Ended Sep 30, 2026
Synchrony Financial (SYF) reported net earnings of $892 million for the three months ended September 30, 2026, down from $1.08 billion a year earlier, and $2.58 billion for the nine months, down from $2.80 billion. The filing attributes the decline mainly to higher other expense (up $123 million for the quarter, driven by operational losses, technology costs and marketing), a higher provision for credit losses (up $120 million for the quarter, reflecting a reserve build versus a prior-year release), and higher retailer share arrangements, partly offset by net interest income growth of $89 million for the quarter. Net interest margin was 15.50% for the quarter versus 15.62% a year earlier, and the efficiency ratio rose to 35.9% from 32.6%. Credit quality improved on most measures. Net charge-offs fell to 4.79% of average loan receivables for the quarter from 5.16%, the over-30 day delinquency rate eased to 4.34% from 4.39%, and management expects the full-year 2026 net charge-off rate to be below its 5.5% to 6.0% long-term target range. Loan receivables grew 3.2% year over year to $103.3 billion, helped by partner expansion and the April 2026 acquisition of the Lowe's commercial co-branded card portfolio ($0.7 billion). Deposits reached $83.0 billion, representing 83% of total funding sources. Capital returns remained significant. The company repurchased $2.9 billion of common stock in the first nine months of 2026, and the Board approved a quarterly dividend increase to $0.34 per share, effective in the third quarter. The remaining authorization under the new $6.5 billion, no-expiration repurchase program was $4.6 billion at quarter-end. Standardized common equity Tier 1 capital ratio declined to 12.9% from 13.5% at year-end 2025, which the filing attributes to buybacks and dividends exceeding net earnings. S&P assigns Synchrony Financial a positive outlook, and Fitch a stable outlook.
Oct 22, 2026
2026-Q2
Synchrony Financial Quarterly Report for Q2 Ended Jun 30, 2026
Synchrony Financial reported net earnings of $885 million for the three months ended June 30, 2026, down from $967 million a year earlier, and $1.69 billion for the six months, roughly flat against $1.72 billion. Diluted earnings per share rose to $2.59 for the quarter from $2.50 and to $4.85 for the six months from $4.38, reflecting the share count reduction from buybacks. Net interest income grew 1.9% in the quarter and 2.9% year to date, driven by lower interest expense, while the provision for credit losses rose $55 million in the quarter because of a smaller reserve release. Other expense increased $86 million in the quarter, primarily from higher operational losses and technology costs. Credit performance improved year over year. The net charge-off rate was 5.43% for both the three- and six-month periods, down 27 basis points and 61 basis points respectively, and the company expects its 2026 full-year net charge-off rate to be below its long-term target range of 5.5% to 6.0%. Over-30 day delinquencies were 4.16% of period-end loan receivables, compared with 4.18% a year earlier. Loan receivables totaled $102.2 billion, up 2.4% from June 30, 2025, and deposits of $82.8 billion funded 83% of total funding sources. Capital returns remained significant. The company repurchased $1.8 billion of common stock in the first half, has $5.7 billion remaining under a new $6.5 billion authorization with no expiration date, and plans to raise its quarterly common dividend to $0.34 per share from the third quarter of 2026. It also issued $500 million of 7.250% fixed-rate reset preferred stock in June 2026. The common equity Tier 1 ratio was 13.2%, down from 13.5% at December 31, 2025, mainly due to repurchases and dividends.
Jul 23, 2026
2026-Q1
Synchrony Financial Quarterly Report for Q1 Ended Mar 31, 2026
Synchrony Financial reported first-quarter 2026 net earnings of $805 million, up from $757 million a year earlier, with diluted EPS of $2.27 versus $1.89. The increase was driven mainly by net interest income rising $171 million to $4.635 billion, as interest expense fell $118 million on lower benchmark rates and the loan receivables yield rose 47 basis points to 21.80%. The provision for credit losses fell $156 million to $1.335 billion on lower net charge-offs, which declined to $1.346 billion and a 5.42% annualized rate. These gains were partly offset by higher retailer share arrangements (up $175 million) and other expense (up $73 million to $1.316 billion), while other income declined to $133 million. Balance sheet and liquidity remained stable. Loan receivables were flat year over year at $100.1 billion, deposits grew to $82.9 billion and represented 83% of total funding sources, and liquid assets rose to $22.8 billion from $16.6 billion at year-end 2025. The company repurchased $900 million of common stock and paid $0.30 per share in dividends. In April 2026 the Board approved a new share repurchase program of up to $6.5 billion with no expiration date and a planned increase in the quarterly dividend to $0.34 per share beginning in the third quarter of 2026. Capital ratios remained above well-capitalized levels, with a common equity Tier 1 ratio of 12.7%. Management expects the full-year 2026 net charge-off rate to be below its long-term target range of 5.5% to 6.0%. Over-30 day delinquencies rose slightly to 4.54% of period-end loan receivables, and the allowance coverage ratio fell to 10.42% from 10.87% a year earlier, though it rose from 10.06% at year-end 2025 on seasonal trends.
Apr 23, 2026
2025-Q3
Synchrony Financial Quarterly Report for Q3 Ended Sep 30, 2025
Synchrony Financial reported net earnings of $1.1 billion for the three months ended September 30, 2025, up from $789 million a year earlier, and $2.8 billion for the nine months, up from $2.7 billion. The increases were primarily driven by lower provision for credit losses and higher net interest income, partially offset by higher retailer share arrangements. The prior-year nine-month period included an after-tax gain on sale related to Pets Best of $802 million. Provision for credit losses fell $451 million (28.2%) in the quarter and $1.4 billion (26.9%) for the nine months, reflecting reserve releases in 2025 versus reserve builds in 2024, along with lower net charge-offs. The net charge-off rate was 5.16% for the quarter and 5.74% for the nine months, and over-30 day delinquencies improved to 4.39% of period-end loan receivables. Loan receivables declined 2.0% year over year to $100.2 billion, reflecting lower purchase volume and higher payment rates. Net interest income rose 2.4% to $4.7 billion for the quarter, driven by lower interest expense as benchmark rates fell, while the loan receivables yield increased to 21.89%. Deposits were $79.9 billion, representing 85% of total funding sources. Other expense rose 5.0% in the quarter, mainly on employee costs and technology investments. Capital remained strong, with a common equity Tier 1 ratio of 13.7% and a total risk-based capital ratio of 16.9% at September 30, 2025. Capital return remained a focus: the company repurchased $2.0 billion of common stock in the first nine months, and the Board approved an incremental $1.0 billion authorization in September 2025, leaving $2.1 billion remaining under the 2025 program. The quarterly common dividend was raised to $0.30 per share, and the company acquired Versatile Credit in October 2025.
Oct 22, 2025
2025-Q2
Synchrony Financial Quarterly Report for Q2 Ended Jun 30, 2025
Synchrony Financial's 10-Q for the quarter ended June 30, 2025 shows net earnings of $967 million for the three months ended June 30, 2025, up from $643 million a year earlier, and $1.7 billion for the six months, down from $1.9 billion. The three-month increase was primarily driven by a decrease in the provision for credit losses, partially offset by higher retailer share arrangements. The six-month decrease reflects the $802 million after-tax gain on the Pets Best sale recognized in the prior year, partially offset by lower provision for credit losses. Credit metrics improved. The provision for credit losses fell $545 million (32.2%) for the quarter, reflecting reserve releases of $265 million versus reserve builds of $70 million a year earlier. The net charge-off rate decreased 72 basis points to 5.70% for the quarter, and over-30 day delinquencies fell to 4.18% of period-end loan receivables from 4.47%. Loan receivables declined 2.5% year over year to $99.8 billion, reflecting lower purchase volume and higher payment rates. Net interest income rose 2.6% to $4.5 billion for the quarter. Capital and funding remained solid. Deposits were $82.3 billion, or 84% of total funding sources. The company repurchased $1.1 billion of common stock in the first half, declared quarterly dividends of $0.30 per share starting in the second quarter, and had $2.0 billion of remaining repurchase authorization under a new $2.5 billion program approved in April 2025. Common equity Tier 1 capital ratio was 13.6% at June 30, 2025, up from 13.3% at December 31, 2024.
Jul 23, 2025
2025-Q1
Synchrony Financial Quarterly Report for Q1 Ended Mar 31, 2025
Synchrony Financial reported first-quarter 2025 net earnings of $757 million, down from $1.3 billion in the prior-year quarter, which included an after-tax gain of $802 million on the sale of Pets Best. Net interest income rose 1.3% to $4.5 billion as interest expense fell 6.6% on lower benchmark rates, while interest and fees on loans were flat. Retailer share arrangements increased 17.1% to $895 million, and the provision for credit losses fell $393 million to $1.49 billion, aided by a $97 million reserve release versus a $299 million build a year earlier. The net charge-off rate rose to 6.38% from 6.31%, while over-30 day delinquencies improved to 4.52% from 4.74%. Loan receivables declined to $99.6 billion, reflecting seasonality and lower purchase volume of $40.7 billion. Funding and liquidity remained strong, with deposits of $83.4 billion representing 83% of total funding sources and liquid assets of $23.8 billion at March 31, 2025. The company repurchased $600 million of common stock during the quarter and completed its prior repurchase program. In April 2025, the Board approved a new program of up to $2.5 billion through June 30, 2026, and the quarterly common dividend will increase to $0.30 per share starting in the second quarter of 2025. The filing also notes that the CFPB's credit card late fee rule was vacated on April 15, 2025, and that management plans to review the related product, pricing and policy changes with partners. Regulatory capital ratios remained above well-capitalized levels, with a common equity Tier 1 ratio of 13.2% at March 31, 2025, down from 13.3% at year-end 2024, largely reflecting the final phase-in of the CECL capital transition adjustment. Management described its disclosure controls as effective, and the filing reports no material changes to risk factors.
Apr 24, 2025
2024-Q3
Synchrony Financial Quarterly Report for Q3 Ended Sep 30, 2024
Synchrony Financial's third-quarter 2024 Form 10-Q reports net earnings of $789 million for the three months ended September 30, 2024, up from $628 million a year earlier, and $2.7 billion for the nine months, up from $1.8 billion. The nine-month increase was primarily driven by the after-tax gain on the sale of Pets Best of $802 million. Net interest income rose 5.7% to $4.6 billion for the quarter, while the net charge-off rate increased 146 basis points to 6.06% and the provision for credit losses rose 7.3% to $1.6 billion for the quarter. Loan receivables were $102.2 billion at September 30, 2024, up 4.4% year over year, driven by lower customer payment rates and the Ally Lending acquisition, which closed in March 2024 for $2.0 billion in cash. Management notes that purchase volume fell 4.3% in the quarter and expects a low single digit decrease in purchase volume for the full year 2024, with loan receivable growth moderating. Deposits of $82.3 billion represented 84% of total funding sources. The filing highlights regulatory uncertainty: a CFPB final rule lowering the credit card late fee safe harbor to $8 is blocked by an injunction, so its 2024 effective date and impact remain uncertain. The company says it is implementing product, policy and pricing changes to offset lost late fee income. Synchrony also repurchased $900 million of common stock in the nine months and had $700 million of authorization remaining at quarter end.
Oct 23, 2024
2024-Q2
Synchrony Financial Quarterly Report for Q2 Ended Jun 30, 2024
Synchrony Financial's Form 10-Q for the quarter ended June 30, 2024 reports net earnings of $643 million for the three months and $1.9 billion ($1,936 million) for the six months, compared with $569 million and $1.2 billion ($1,170 million) a year earlier. The six-month increase was driven primarily by an after-tax gain of $802 million on the sale of Pets Best. Net interest income rose to $4.4 billion for the quarter (from $4.12 billion) and $8.8 billion for the six months, while the provision for credit losses increased to $1.69 billion for the quarter and $3.58 billion for the six months, mainly from higher net charge-offs. The net charge-off rate was 6.42% for the quarter, up from 4.75%, and over-30 day delinquencies rose to 4.47% of period-end loan receivables from 3.84%. The filing states that the CFPB's final rule lowering the credit card late fee safe harbor to $8 is subject to a court injunction granted May 10, 2024, but the company expects the rule, if it takes effect in 2024, to have an adverse effect on 2024 results, and it is implementing product, policy and pricing changes to offset lost late fee income. Management expects purchase volume to be flat or decline by a low single digit percentage in the second half of 2024, with loan receivable growth moderating. Total loan receivables were $102.3 billion at June 30, 2024, including the Ally Lending acquisition completed in March 2024 for $2.0 billion in cash. Deposits totaled $83.1 billion, or 84% of total funding sources, and the company repurchased $600 million of common stock in the first half of 2024 while approving a new $1.0 billion share repurchase program. Capital and liquidity remained above regulatory well-capitalized thresholds, with a Basel III common equity Tier 1 ratio of 12.6% at June 30, 2024, up from 12.2% at December 31, 2023. Liquid assets in the liquidity portfolio were $20.0 billion, compared with $16.8 billion at year-end 2023. The filing reports no material changes to risk factors from the 2023 Form 10-K and discloses a Rule 10b5-1 trading plan adopted by the CFO covering 74,698 company securities.
Jul 19, 2024
2024-Q1
Synchrony Financial Quarterly Report for Q1 Ended Mar 31, 2024
Synchrony Financial's first-quarter 2024 Form 10-Q reports net earnings of $1.3 billion ($1,293 million) versus $601 million a year earlier, driven primarily by an after-tax gain of $802 million on the sale of Pets Best, higher interest income and lower retailer share arrangements. These gains were partially offset by a higher provision for credit losses of $1,884 million (up from $1,290 million) and higher interest expense. Loan receivables were $101.7 billion at March 31, 2024, up 11.6% from a year earlier but down 1.2% from December 31, 2023 on seasonality, and net charge-offs rose to 6.31% of average loan receivables from 4.49%. The allowance coverage ratio increased to 10.72%, and over-30 day delinquencies rose to 4.74% of period-end loan receivables. Management stated that the CFPB's final rule lowering the credit card late fee safe harbor from $30 (adjusted to $41) to $8 will adversely affect 2024 results and will have a material impact on net income for 2024 if it takes effect May 14, 2024, though the rule faces industry litigation and its outcome is uncertain. The company is implementing product, policy and pricing changes and expects a decrease in retailer share payments to partially offset the lost late fee income. Deposits of $83.6 billion represented 84% of total funding sources, and liquid assets rose to $21.9 billion. Capital actions in the quarter included the acquisition of Ally Financial's point-of-sale lending business, Ally Lending, for $2.0 billion cash, issuance of $500 million of Series B preferred stock, and repurchases of $300 million of common stock. In April 2024 the Board approved an incremental $1.0 billion repurchase program through June 30, 2025, bringing total authorization to $1.3 billion. Common equity Tier 1 capital ratio rose to 12.6% from 12.2%.
Apr 25, 2024
2023-Q3
Synchrony Financial Quarterly Report for Q3 Ended Sep 30, 2023
Synchrony Financial's Form 10-Q for the quarter ended September 30, 2023 shows a year-over-year decline in profitability as credit costs rose. Net earnings were $628 million for the three months ended September 30, 2023, down from $703 million, and $1.8 billion for the nine months, down from $2.4 billion. The filing attributes the decline mainly to a higher provision for credit losses ($1.5 billion for the quarter versus $929 million a year earlier) and higher interest expense, partially offset by higher interest income and lower retailer share arrangements. Loan growth and funding remained strong. Loan receivables rose 13.8% to $97.9 billion at September 30, 2023, driven by lower customer payment rates and purchase volume growth. Deposits reached $78.1 billion, representing 84% of total funding sources. Credit quality weakened: the net charge-off rate rose to 4.60% for the quarter, and over-30 day delinquencies increased to 4.40% of period-end loan receivables from 3.28% a year earlier. Management expects net charge-offs to continue increasing. Capital returns continued, with $850 million of common stock repurchased during the nine months and a quarterly dividend increased to $0.25 per share starting in the third quarter of 2023. Synchrony Financial met all requirements to be deemed well-capitalized, and its common equity Tier 1 ratio was 12.4% at September 30, 2023.
Oct 24, 2023
2023-Q2
Synchrony Financial Quarterly Report for Q2 Ended Jun 30, 2023
Synchrony Financial's second-quarter 2023 Form 10-Q reports net earnings of $569 million for the three months ended June 30, 2023, down from $804 million a year earlier, and $1.2 billion for the six months ($1,170 million) versus $1.7 billion ($1,736 million). The filing attributes the decline primarily to higher provision for credit losses ($1.4 billion for the quarter, up from $724 million) and higher interest expense, partially offset by higher interest income and lower retailer share arrangements. Net interest income rose 8.4% to $4.1 billion for the quarter, while net charge-offs were 4.75% of average loan receivables for the quarter versus 2.73% a year earlier. Credit quality indicators weakened over the period. Over-30 day delinquencies rose to 3.84% of period-end loan receivables from 2.74% a year earlier, and past due balances reached $3.6 billion at June 30, 2023. The allowance for credit losses totaled $9.8 billion, with a coverage ratio of 10.34%. Loan receivables grew 14.7% year over year to $94.8 billion, and deposits represented 84% of total funding sources at $75.8 billion. On capital and shareholder returns, the company repurchased $700 million of common stock in the first half of 2023 and had $1.0 billion remaining under its incremental authorization through June 30, 2024. It intends to raise its quarterly common dividend to $0.25 per share beginning in the third quarter of 2023. The company issued $750 million of 7.250% subordinated unsecured notes due 2033 in February 2023. Synchrony Financial's Basel III common equity Tier 1 ratio was 12.3% at June 30, 2023, down from 12.8% at December 31, 2022, which the filing attributes mainly to the second-year phase-in of CECL and higher risk-weighted assets.
Jul 21, 2023
2023-Q1
Synchrony Financial Quarterly Report for Q1 Ended Mar 31, 2023
Synchrony Financial (SYF) reported net earnings of $601 million for the three months ended March 31, 2023, down from $932 million a year earlier. The filing attributes the decline primarily to higher provision for credit losses ($1.3 billion versus $521 million) and higher interest expense ($735 million versus $233 million), partially offset by higher interest income ($4.8 billion versus $4.0 billion) and lower retailer share arrangements ($917 million versus $1.1 billion). Diluted earnings per share were $1.35 versus $1.77 in the prior-year period. Loan receivables were $91.1 billion at March 31, 2023, up 15.5% from $78.9 billion a year earlier, though down from $92.5 billion at December 31, 2022 on seasonality. Credit quality weakened: the net charge-off rate rose to 4.49% from 2.73%, and over-30 day delinquencies rose to 3.81% of period-end loans from 2.78%. The allowance for credit losses was $9.5 billion, a coverage ratio of 10.44%, down from 10.96% a year earlier. The filing also notes a $294 million allowance reduction from adopting ASU 2022-02, which eliminated separate troubled debt restructuring accounting. Funding remained deposit-driven, with $74.4 billion of deposits representing 83% of total funding sources. The company repurchased $400 million of common stock in the quarter, with $300 million of authorization remaining through June 2023, and issued $750 million of 7.250% subordinated notes due 2033. Liquid assets rose to $18.7 billion from $14.2 billion at year-end 2022. Regulatory capital ratios remained above well-capitalized levels, with common equity Tier 1 at 12.5% versus 12.8% at year-end 2022.
Apr 20, 2023
2022-Q3
Synchrony Financial Quarterly Report for Q3 Ended Sep 30, 2022
Synchrony Financial's third-quarter 2022 Form 10-Q shows net earnings falling to $703 million for the three months ended September 30, 2022, from $1.1 billion a year earlier, and to $2.4 billion for the nine months from $3.4 billion. The decline was driven primarily by a provision for credit losses of $929 million for the quarter versus $25 million in the prior-year period, reflecting reserve increases in 2022 compared with reserve reductions in 2021. Net interest income grew 7.4% to $3.9 billion for the quarter and 10.7% to $11.5 billion for the nine months, supported by loan receivables that rose 12.6% to $86.0 billion year over year. Credit quality and expenses also moved in opposite directions. Over-30 day delinquencies rose to 3.28% of period-end loan receivables from 2.42% a year earlier, and the quarterly net charge-off rate increased to 3.00%. Other expense rose 10.7% for the quarter to $1.06 billion, with higher employee costs and operational losses. The company sold $3.8 billion of Gap Inc. and BP loan receivables in the second quarter of 2022, recognizing a $120 million gain. Funding and capital remained substantial. Deposits totaled $68.4 billion, or 82% of total funding sources, and the company repurchased $2.6 billion of common stock in the first nine months, with $1.4 billion remaining under the 2022 authorization. Synchrony Financial and Synchrony Bank both met well-capitalized requirements at September 30, 2022, with a common equity Tier 1 ratio of 14.3% at the holding company level. The common quarterly dividend was raised 5% to $0.23 per share beginning in the third quarter.
Oct 25, 2022
2022-Q2
Synchrony Financial Quarterly Report for Q2 Ended Jun 30, 2022
Synchrony Financial's second-quarter 2022 10-Q shows net earnings of $804 million for the three months ended June 30, 2022, down from $1.2 billion ($1,242 million) a year earlier, and $1.7 billion ($1,736 million) for the six months, down from $2.3 billion ($2,267 million). The filing attributes the decline mainly to higher provision for credit losses, which rose $918 million for the quarter because of reserve releases recorded in the prior-year periods. This was partially offset by higher net interest income, which increased to $3.8 billion for the quarter and $7.6 billion for the six months, driven by growth in average loan receivables. Loan receivables reached $82.7 billion at June 30, 2022, up from $78.4 billion a year earlier. Purchase volume was $47.2 billion for the quarter and $87.7 billion for the six months. The company sold $3.8 billion of Gap Inc. and BP loan receivables in the second quarter, recognizing a $120 million gain in other income. Over-30 day delinquencies rose to 2.74% from 2.11% a year earlier, while the net charge-off rate fell to 2.73% for both the quarter and the six months. Deposits totaled $64.7 billion, representing 84% of total funding sources. Capital returns continued during the period. The company repurchased $1.7 billion of common stock in the first half, paid common dividends of $0.44 per share, and announced an incremental $2.8 billion repurchase authorization through June 2023. It also plans to raise the quarterly dividend 5% to $0.23 starting in the third quarter of 2022. Common equity Tier 1 capital ratio was 15.2% at June 30, 2022, down from 15.6% at year-end 2021, primarily due to the first-year phase-in of CECL.
Jul 21, 2022
2022-Q1
Synchrony Financial Quarterly Report for Q1 Ended Mar 31, 2022
Synchrony Financial's first-quarter 2022 Form 10-Q shows net earnings of $932 million, down from $1.0 billion ($1,025 million) in the prior-year quarter. The filing attributes the decline mainly to higher provision for credit losses ($521 million vs. $334 million), higher retailer share arrangements ($1.1 billion vs. $989 million) and higher other expense ($1.04 billion vs. $932 million), partly offset by net interest income of $3.79 billion, up from $3.44 billion. Diluted earnings per share were $1.77, versus $1.73 a year earlier. Credit quality and funding improved. Net charge-offs fell to $558 million (2.73% of average loan receivables) from $699 million (3.62%), and over-30 day delinquencies were 2.78% of period-end loan receivables versus 2.83% a year earlier. Loan receivables were $78.9 billion, and deposits rose to $63.6 billion, representing 83% of total funding sources. Management cites lower benchmark rates and lower funding liabilities for a cost of funds of 1.24%, down from 1.57%. The allowance coverage ratio fell to 10.96% from 12.88%, reflecting a smaller reserve release than in the prior year. Capital returns were significant. The company repurchased $967 million of common stock in the quarter and paid $114 million in common dividends. In April 2022 the Board approved an incremental $2.8 billion repurchase authorization through June 2023, bringing total authorization to $3.1 billion, and plans a quarterly dividend increase of 5% to $0.23 per share starting in the third quarter of 2022. Common equity Tier 1 capital ratio was 15.0%, down from 15.6%, mainly due to the first-year phase-in of CECL.
Apr 21, 2022
2021-Q3
Synchrony Financial Quarterly Report for Q3 Ended Sep 30, 2021
Synchrony Financial's third-quarter 2021 Form 10-Q reports a sharp rebound in profitability driven mainly by lower credit losses. Net earnings were $1.14 billion for the three months ended September 30, 2021, up from $313 million a year earlier, and $3.41 billion for the nine months, up from $647 million. The filing attributes much of the increase to a $247 million reserve release tied to the reclassification of the Gap Inc. portfolio to loan receivables held for sale, and the provision for credit losses fell to $25 million in the quarter from $1.21 billion. Net interest income rose 5.8% to $3.66 billion for the quarter but fell 3.1% to $10.41 billion for the nine months, as customer payment rates ran elevated and lower benchmark rates reduced interest expense. Loan receivables declined to $76.39 billion at September 30, 2021, from $78.52 billion a year earlier, largely due to the $3.5 billion Gap portfolio reclassification. Excluding that reclassification, the filing states loan receivables increased 2%, reflecting purchase volume growth of 16.4% in the quarter and 19.7% for the nine months. Credit quality improved: the net charge-off rate was 2.18% for the quarter versus 4.42% a year earlier, and over-30 day delinquencies were 2.42% of period-end loan receivables. The allowance coverage ratio fell to 11.28% from 12.92%. Funding and capital remained strong. Deposits were $60.3 billion, representing 82% of total funding sources. The company repurchased $1.9 billion of common stock in the nine months and has $1.2 billion of remaining authorization under its May 2021 program. Synchrony Financial's Common Equity Tier 1 ratio was 17.1% at September 30, 2021, and the company reported that it met the requirements to be deemed well-capitalized. The company also entered into an agreement to sell the Gap portfolio loan receivables, with completion expected in the second quarter of 2022.
Oct 21, 2021
2021-Q2
Synchrony Financial Quarterly Report for Q2 Ended Jun 30, 2021
Synchrony Financial's second-quarter 2021 Form 10-Q shows a sharp swing to profitability, driven mainly by a much lower provision for credit losses. Net earnings were $1,242 million for the three months ended June 30, 2021, versus $48 million a year earlier, and $2,267 million for the six months, versus $334 million. Provision for credit losses was a benefit of $194 million for the quarter, compared with an expense of $1,673 million in the prior-year quarter, and the filing states that reserves were reduced by $878 million in the quarter. Net interest income declined to $3,312 million for the quarter from $3,396 million, reflecting lower interest and fees on loans as customer payment rates rose and delinquencies fell. Credit quality improved meaningfully. Over-30 day delinquencies fell to 2.11% of period-end loan receivables from 3.13% a year earlier, and the net charge-off rate was 3.57% for the quarter versus 5.35%. Allowance for credit losses declined to $9.0 billion, and the allowance coverage ratio was 11.51%. Loan receivables were flat year over year at $78.4 billion, while purchase volume rose to $42.1 billion for the quarter from $31.2 billion, and deposits fell to $59.8 billion, representing 81% of total funding sources. Capital and shareholder returns remained strong. Common equity Tier 1 capital ratio was 17.8% and total risk-based capital ratio was 20.1% at June 30, 2021. The company repurchased $593 million of common stock in the first half and declared $0.44 per share in common dividends. A new share repurchase program of up to $2.9 billion covers April 1, 2021 through June 30, 2022, with $2.5 billion remaining at quarter end. The filing also notes that the Gap Inc. program agreement will not be renewed when it expires on April 30, 2022.
Jul 22, 2021
2021-Q1
Synchrony Financial Quarterly Report for Q1 Ended Mar 31, 2021
Synchrony Financial (SYF) reported its first-quarter 2021 results in this Form 10-Q, with net earnings of $1.025 billion, up 258.4% from $286 million a year earlier. The improvement was driven mainly by a lower provision for credit losses, which fell to $334 million from $1.677 billion, and lower other expense, partially offset by a decline in net interest income to $3.439 billion from $3.890 billion. Loan receivables declined 6.8% year over year to $76.9 billion, reflecting the effects of the 2020 shutdowns and improved customer payment behavior, while the over-30 day delinquency rate fell to 2.83% and the net charge-off rate fell to 3.62%. The allowance coverage ratio rose to 12.88% from 11.13% a year earlier. Funding remained stable, with $62.7 billion in deposits representing 81% of total funding sources and a cost of funds of 1.57%, down from 2.50%. Liquidity was $22.6 billion of liquid assets at quarter end, and the company repurchased $200 million of common stock under a $1.6 billion 2021 program, leaving $1.4 billion of remaining authorization. Capital ratios remained above well-capitalized levels, with a common equity Tier 1 ratio of 17.4%. Leadership and partnerships also changed during the quarter. Brian Doubles succeeded Margaret Keane as President and CEO effective April 1, 2021, and the company completed its acquisition of Allegro Credit in CareCredit. In April 2021, Synchrony announced it will not renew its Gap Inc. program agreement when it expires on April 30, 2022.
Apr 27, 2021
2020-Q3
Synchrony Financial Quarterly Report for Q3 Ended Sep 30, 2020
Synchrony Financial's Form 10-Q for the quarter ended September 30, 2020 shows a sharp earnings decline driven by COVID-19 and the 2019 sale of the Walmart consumer portfolio. Net earnings fell to $313 million for the three months (from $1,056 million) and to $647 million for the nine months (from $3,016 million). Net interest income dropped 21.2% to $3.5 billion in the quarter and 15.9% to $10.7 billion for the nine months, while the provision for credit losses rose to $1.21 billion in the quarter and $4.56 billion for the nine months. The company adopted CECL on January 1, 2020, increasing its allowance for credit losses by $3.0 billion, and the allowance coverage ratio rose to 12.92% at September 30, 2020, from 6.74% a year earlier. Credit metrics improved on a reported basis. Over-30 day delinquencies fell to 2.67% from 4.47%, and the net charge-off rate declined to 4.42% for the quarter. However, the filing states that COVID-19 forbearance programs have led to a higher incidence of re-delinquency after accounts exit, and management expects delinquencies and net charge-offs to rise for the rest of 2020 and into 2021. Management also said it expects interest income growth to slow for the remainder of 2020, and that the expectations and guidance given on the January 24, 2020 earnings call can no longer be relied upon. Capital and liquidity remained strong, with $21.4 billion of liquid assets and deposits of $63.5 billion, representing 80% of funding sources. Share repurchases have been suspended in response to COVID-19, and the company declared $0.66 per share in common dividends for the nine months. The filing also discloses a $89 million restructuring charge, a CFPB NORA letter received September 23, 2020 concerning deferred interest promotions, and a Basel III common equity Tier 1 ratio of 15.8% at September 30, 2020.
Oct 22, 2020
2020-Q2
Synchrony Financial Quarterly Report for Q2 Ended Jun 30, 2020
Synchrony Financial's Form 10-Q for the quarter ended June 30, 2020 shows a sharp decline in earnings driven by COVID-19 and the 2019 sale of the Walmart consumer portfolio. Net earnings were $48 million for the three months ended June 30, 2020, down 94.4% from the prior year, and $334 million for the six months, down 83.0%. Net interest income fell 18.3% to $3.4 billion for the quarter and 13.1% to $7.3 billion for the six months. The provision for credit losses rose to $1,673 million for the quarter and $3,350 million for the six months, reflecting a higher reserve build tied to COVID-19 and the company's adoption of CECL on January 1, 2020, which increased the allowance for loan losses by $3.0 billion. The allowance coverage ratio rose to 12.52% from 7.10% a year earlier. Loan receivables were $78.3 billion at June 30, 2020, down 4.3% year over year, and purchase volume fell as consumer spending slowed. Management stated that the 2020 guidance from the January 24, 2020 earnings call can no longer be relied upon. The company expects delinquencies and net charge-offs to increase in the second half of 2020 and into 2021, and it suspended share repurchases. Deposits of $64.1 billion funded 80% of total funding sources, and the company reported that it met well-capitalized requirements at both the holding company and the Bank level. Credit ratings from S&P and Fitch carry negative outlooks on senior unsecured debt.
Jul 23, 2020
2020-Q1
Synchrony Financial Quarterly Report for Q1 Ended Mar 31, 2020
Synchrony Financial's first-quarter 2020 Form 10-Q reports a sharp decline in earnings driven by a much larger provision for credit losses. Net earnings fell to $286 million for the three months ended March 31, 2020, from $1,107 million a year earlier, a 74.2% decrease. The filing attributes this mainly to a $1,677 million provision for credit losses, which included a reserve build tied to COVID-19 projections and the adoption of the new CECL accounting standard, along with the prior-year reduction of $522 million in reserves related to the Walmart consumer portfolio sale. Net interest income declined 8.0% to $3,890 million, reflecting the Walmart sale and lower benchmark rates. The company's allowance for credit losses rose to $9,175 million, or 11.13% of loan receivables, after CECL adoption added $3.0 billion to the allowance on January 1, 2020. The filing states that management no longer relies on the 2020 expectations given on its January 24, 2020 earnings call. It reports that purchase volume fell roughly 26% in the last two weeks of the quarter, and it expects lower purchase volume, interest income growth and retailer share payment growth, along with higher delinquencies and net charge-offs in 2020. Management suspended its remaining $366 million share repurchase capacity in response to COVID-19. Funding and capital remained solid. Deposits totaled $64.6 billion, or 79% of total funding sources, and liquid assets were $19.2 billion at March 31, 2020. Synchrony Financial met well-capitalized standards, with a common equity Tier 1 ratio of 14.3%. The Company elected the interim final rule to defer the regulatory capital effects of CECL, which largely delays those effects for two years. Quarterly dividends were $0.22 per common share.
Apr 22, 2020
2019-Q3
Synchrony Financial Quarterly Report for Q3 Ended Sep 30, 2019
Synchrony Financial's Form 10-Q for the quarter ended September 30, 2019 reports net earnings of $1,056 million for the three months and $3,016 million for the nine months, up 57.4% and 50.3% respectively from the prior year. The filing states these increases included reductions in reserves related to the sale of the Walmart consumer portfolio of $248 million and $829 million, respectively. Net interest income rose 4.4% to $4,389 million for the quarter and 8.4% to $12,770 million for the nine months, while retailer share arrangements increased 16.6% and 26.1%, respectively. Loan receivables declined 4.9% year over year to $83,207 million at September 30, 2019, primarily because $8.2 billion of Walmart loan receivables were reclassified to held for sale. The company completed the sale and conversion of that $8.2 billion portfolio on October 11, 2019, after the quarter end. Credit metrics improved on a delinquency basis, with over-30 day delinquencies at 4.47% of period-end loan receivables, down from 4.59%, while the net charge-off rate rose to 5.35% for the quarter and 5.80% for the nine months. The allowance coverage ratio fell to 6.74% from 7.11%. Funding remained deposit-centric, with deposits at $66.0 billion, or 76% of total funding sources. The company repurchased $2.2 billion of common stock in the nine months and paid $0.64 per share in dividends, and the Board approved a new repurchase program of up to $4.0 billion through June 30, 2020. The filing also states that the company expects the CECL standard, effective January 1, 2020, to increase the allowance for loan losses by approximately 50% to 60%, with a corresponding decrease in regulatory capital.
Oct 25, 2019
2019-Q2
Synchrony Financial Quarterly Report for Q2 Ended Jun 30, 2019
Synchrony Financial's second-quarter 2019 Form 10-Q reports net earnings of $853 million for the three months ended June 30, 2019, up 22.6% from the prior year, and $1,960 million for the six months, up 46.7%. Net interest income rose 11.2% to $4,155 million for the quarter, driven by higher average loan receivables, partly offset by higher interest expense reflecting higher benchmark rates and growth. The provision for loan losses fell $82 million (6.4%) for the quarter and $585 million (22.1%) for the six months, primarily due to reserve releases tied to the expected sale of the Walmart portfolio, which was reclassified to loan receivables held for sale ($8.1 billion) and is expected to close in October 2019. Other expense rose 8.6% for the quarter, largely from the PayPal Credit acquisition. Funding and capital remained solid. Deposits were $65.6 billion, representing 75% of total funding sources, and direct deposits grew 6.9% to $52.8 billion. Common equity Tier 1 capital ratio stood at 14.3% at June 30, 2019, versus 14.0% at December 31, 2018. The company repurchased $1.7 billion of common stock in the first half of 2019, declared $0.42 per share in dividends, and announced a $4.0 billion repurchase program through June 30, 2020, along with a planned increase in the quarterly dividend to $0.22 starting in the third quarter of 2019. Over-30 day delinquencies rose to 4.43% of period-end loan receivables, mainly due to the Walmart reclassification, while the allowance coverage ratio declined to 7.10% from 7.43%. The filing also notes that the company expects CECL adoption on January 1, 2020 to materially increase its allowance for loan losses, with preliminary estimates of an increase of approximately 50% to 60%, and a decrease in regulatory capital.
Jul 25, 2019
2019-Q1
Synchrony Financial Quarterly Report for Q1 Ended Mar 31, 2019
Synchrony Financial's first quarter 2019 Form 10-Q reports net earnings of $1,107 million, up 73.0% from $640 million a year earlier, driven by higher net interest income and a lower provision for loan losses. Net interest income rose 10.0% to $4,226 million. The provision for loan losses fell 36.9% to $859 million, substantially due to a $522 million reserve release tied to the reclassification of the Walmart portfolio to loan receivables held for sale. Loan receivables were $80.4 billion at March 31, 2019, including $8.1 billion of Walmart-related loans held for sale, and the allowance coverage ratio was 7.39%, compared with 7.37% a year earlier. The company's funding base remained anchored in deposits, which were $64.1 billion and represented 75% of total funding sources, with direct deposits growing 4.9% to $51.8 billion. Management repurchased $966 million of common stock during the quarter and completed the remaining $2.2 billion under its 2018 Share Repurchase Program, stating it will make no further repurchases until a new plan is approved. Retailer share arrangements rose 32.5% to $954 million, and Synchrony announced its acquisition of Pets Best in March 2019. Credit quality metrics were mixed: over-30 day delinquencies rose 40 basis points to 4.92% (driven by the Walmart reclassification), while the net charge-off rate declined 8 basis points to 6.06%. The filing states that the company is not aware of any pending legal proceeding that would have a material adverse effect, though it discloses a securities class action and two shareholder derivative actions.
Apr 25, 2019
2018-Q3
Synchrony Financial Quarterly Report for Q3 Ended Sep 30, 2018
Synchrony Financial's third-quarter 2018 10-Q shows strong earnings growth driven largely by the July 2, 2018 acquisition of the U.S. PayPal Credit financing program, which comprised $7.6 billion of outstanding loan receivables. Net earnings rose 20.9% to $671 million for the three months ended September 30, 2018 and 29.5% to $2,007 million for the nine months, while loan receivables increased 13.8% year over year to $87.5 billion. Net interest income increased 8.5% to $4,206 million for the quarter, though interest expense rose 36.7% as cost of funds increased to 2.36% amid higher benchmark rates. Credit metrics were mixed. Over-30 day delinquencies improved to 4.59% from 4.80% a year earlier, but the nine-month net charge-off rate increased 44 basis points to 5.67%, and the provision for loan losses rose 10.8% in the quarter to $1,451 million, reflecting a reserve build for the PayPal Credit portfolio. The allowance coverage ratio increased to 7.11%. The lower effective tax rate, 24.9% for the quarter versus 36.9% a year earlier, reflects the reduction in the corporate tax rate under the Tax Act. Funding and capital remained a focus. Deposits totaled $62.3 billion, or 72% of total funding sources, and the company repurchased $1.9 billion of common stock in the first nine months while raising its quarterly dividend to $0.21 per share. The Common equity Tier 1 ratio declined to 14.2% from 16.0%, which the filing attributes primarily to the increase in risk-weighted assets from the PayPal Credit acquisition. Senior unsecured debt ratings remain BBB- with negative outlook at Fitch and S&P.
Oct 25, 2018
2018-Q2
Synchrony Financial Quarterly Report for Q2 Ended Jun 30, 2018
Synchrony Financial's Form 10-Q for the quarter ended June 30, 2018 reports net earnings of $696 million for the three months and $1,336 million for the six months, up 40.3% and 34.3% respectively from the prior-year periods. The increases were driven by higher net interest income and a lower provision for income taxes, partially offset by higher other expense. The provision for income taxes fell $96 million (32.9%) for the quarter, primarily due to the reduction in the corporate tax rate under the Tax Act. Net interest income rose 2.7% to $3,737 million for the quarter and 4.9% to $7,579 million for the six months, primarily on higher average loan receivables. Credit metrics were mixed. Net charge-off rate rose to 5.97% for the quarter and 6.06% for the six months, while over-30 day delinquencies improved to 4.17% from 4.25% a year earlier. The allowance coverage ratio increased to 7.43% from 6.63%, reflecting higher forecasted losses. Loan receivables were $78.9 billion at June 30, 2018, up 4.5% year over year, and deposits reached $59.0 billion, representing 73% of total funding sources. Subsequent to quarter end, the company completed the July 2, 2018 acquisition of $7.6 billion of PayPal's U.S. consumer credit portfolio and extended its co-brand program, making Synchrony Bank PayPal's exclusive issuing bank. The company also announced it will not renew its Walmart Retail Card agreement, which expires July 31, 2019. The Board approved a share repurchase program of up to $2.2 billion through June 30, 2019 and a quarterly dividend increase to $0.21 per share beginning in the third quarter of 2018.
Jul 27, 2018
2018-Q1
Synchrony Financial Quarterly Report for Q1 Ended Mar 31, 2018
Synchrony Financial reported first-quarter 2018 net earnings of $640 million, up 28.3% from $499 million a year earlier, driven by higher net interest income and a lower provision for income taxes, partially offset by higher other expense and provision for loan losses. The effective tax rate fell to 24.4% from 36.2%, primarily due to the reduction in the corporate tax rate from 35% to 21% under the Tax Act. Net interest income rose 7.1% to $3.84 billion, while other expense rose 8.8% to $988 million. Credit metrics reflected seasonality and rising losses. Loan receivables were $77.9 billion at March 31, 2018, up 6.1% year over year but down 5.0% from December 31, 2017. Net charge-off rate increased 81 basis points to 6.14%, and over-30 day delinquencies rose 27 basis points to 4.52%. The allowance coverage ratio increased to 7.37% from 6.37% a year earlier. Provision for loan losses rose $56 million, or 4.3%, to $1.36 billion. Funding remained deposit-led: deposits of $56.6 billion represented 73% of total funding sources, with direct deposits up 5.4% to $45.0 billion. The company repurchased $410 million of common stock and paid $114 million in dividends ($0.15 per share) during the quarter. Liquid assets rose to $18.6 billion, and the filing notes a pre-funding strategy for the PayPal credit portfolio acquisition. Synchrony met well-capitalized requirements at both the holding company and the Bank.
Apr 26, 2018
2017-Q3
Synchrony Financial Quarterly Report for Q3 Ended Sep 30, 2017
Synchrony Financial's Form 10-Q for the quarter ended September 30, 2017 reports net earnings of $555 million for the three months and $1,550 million for the nine months, down 8.1% and 7.5% respectively from the prior year. The filing attributes the decline to higher provision for loan losses and other expense, partially offset by higher net interest income. Net interest income rose 11.3% to $3,876 million for the quarter and 12.1% to $11,100 million for the nine months, primarily on higher average loan receivables. Loan receivables reached $76.9 billion at September 30, 2017, up 8.9% year over year, and the company financed $32.9 billion of purchase volume in the quarter. Credit costs rose sharply. Provision for loan losses increased 32.9% to $1,310 million for the quarter and 35.5% to $3,942 million for the nine months, driven by higher net charge-offs and loan growth. The net charge-off rate was 4.95% for the quarter and 5.23% for the nine months, and the allowance coverage ratio increased to 6.97% from 5.82% a year earlier. Over-30 day delinquencies rose to 4.80% from 4.26%. Other expense grew 11.5% in the quarter, primarily from employee costs, marketing and operational losses. Funding and capital remained solid. Deposits reached $54.5 billion, representing 73% of total funding sources, with direct deposits up 9.8% to $41.6 billion. The company repurchased $1,066 million of common stock and paid $328 million in dividends during the nine months, and the quarterly dividend was raised to $0.15 per share. Synchrony Financial met well-capitalized requirements, and its senior unsecured debt is rated BBB- by Fitch and S&P.
Oct 26, 2017
2017-Q2
Synchrony Financial Quarterly Report for Q2 Ended Jun 30, 2017
Synchrony Financial's second-quarter 2017 Form 10-Q reports net earnings of $496 million for the three months ended June 30, 2017, up 1.4% from the prior year, while six-month net earnings fell 7.1% to $995 million. The company cites higher net interest income as the main driver of the quarter's result, partly offset by a 29.9% increase in the provision for loan losses and higher other expense. Loan receivables rose 10.5% year over year to $75,458 million, and the allowance coverage ratio increased to 6.63% from 5.70%. Over-30 day delinquencies rose to 4.25% from 3.79%, and the net charge-off rate was 5.42% for the quarter and 5.37% for the six months. Deposits totaled $52.9 billion at June 30, 2017, representing 72% of total funding sources, and direct deposits grew 6.6% to $40.4 billion. Capital remained strong, with the Common equity Tier 1 ratio at 17.4% on a transition basis and 17.2% on a fully phased-in basis. The Board announced an increase in the quarterly dividend to $0.15 per share starting in the third quarter of 2017 and approved a share repurchase program of up to $1.64 billion through June 30, 2018. During the six months, the company repurchased $676 million of common stock and paid $210 million in dividends. The filing also notes ongoing regulatory and legal matters, including a CFPB Civil Investigative Demand received May 9, 2017 concerning the marketing and servicing of deferred interest promotions, and TCPA class actions. Management states that reasonably possible losses from legal and regulatory matters are immaterial.
Jul 28, 2017
2017-Q1
Synchrony Financial Quarterly Report for Q1 Ended Mar 31, 2017
Synchrony Financial's first-quarter 2017 Form 10-Q shows net earnings of $499 million for the three months ended March 31, 2017, down 14.3% from $582 million a year earlier. The filing attributes the decline to higher provision for loan losses ($1,306 million, up $403 million, or 44.6%) and higher other expense ($908 million, up 13.5%), partially offset by net interest income growth of 11.8% to $3,587 million. Loan receivables were $73.4 billion at March 31, 2017, up 11.4% year over year, driven by higher purchase volume ($28.9 billion for the quarter) and average active account growth to 69.6 million. Credit metrics weakened year over year. Over-30 day delinquencies rose 40 basis points to 4.25%, the net charge-off rate rose 59 basis points to 5.33%, and the allowance coverage ratio increased to 6.37% from 5.50%. The company attributed the reserve build to a higher forecasted net charge-off rate over the next twelve months and lower pricing of recoveries. Management also noted that the seasonal decline in loan balances affects period-end comparisons. Funding and capital remained solid. Deposits were $51.6 billion, representing 72% of total funding sources, and direct deposits grew 4.0% to $39.4 billion. The company repurchased $238 million of common stock and paid dividends of $0.13 per share ($105 million). Synchrony Financial reported a Common equity Tier 1 ratio of 18.0% on a transition basis, and Synchrony Bank was well-capitalized at March 31, 2017. The filing also notes the announced acquisition of GPShopper on March 20, 2017.
May 1, 2017
2016-Q3
Synchrony Financial Quarterly Report for Q3 Ended Sep 30, 2016
Synchrony Financial (SYF) reported net earnings of $604 million for the three months ended September 30, 2016, up 5.2% from the prior-year quarter, and $1,675 million for the nine months, roughly flat versus $1,667 million a year earlier. Loan receivables reached $70.6 billion at September 30, 2016, up 11.2% year over year, driven by higher purchase volume and average active account growth. Net interest income rose 12.2% for the quarter to $3,481 million, but the provision for loan losses increased 40.5% to $986 million for the quarter and 36.7% to $2,910 million... (nine-month provision $2,910 million, up $781 million or 36.7%), which absorbed much of the revenue growth. Credit quality is the key watch item. The net charge-off rate rose to 4.38% for the quarter and 4.51% for the nine months, the over-30 day delinquency rate increased to 4.26% from 4.02%, and the allowance coverage ratio climbed to 5.82% from 5.31%. The company attributes these to a higher loan loss reserve build and expected increases in forecasted net charge-offs over the next twelve months. Other expense rose 1.9% in the quarter, and the effective tax rate was 37.3%. Funding and capital remained solid. Deposits grew 14.9% to $49.8 billion, representing 71% of total funding sources, with direct deposits up 21.9% to $36.2 billion. The company prepaid the remaining $4.1 billion Bank Term Loan and, after its first quarterly dividend of $0.13 per share paid in August 2016, repurchased $238 million of common stock in the quarter under a program of up to $952 million through June 30, 2017. Common equity Tier 1 capital ratio was 18.2% on a transition basis, and senior unsecured debt is rated BBB- by Fitch and S&P.
Oct 27, 2016
2016-Q2
Synchrony Financial Quarterly Report for Q2 Ended Jun 30, 2016
Synchrony Financial's second-quarter 2016 Form 10-Q reports net earnings of $489 million for the three months ended June 30, 2016, down 9.6% from the prior year, and $1,071 million for the six months, down 2.0%. The decline was driven by higher provision for loan losses and other expense, partially offset by higher net interest income. Provision for loan losses rose $281 million, or 38.0%, for the quarter, reflecting a higher loan loss reserve build and receivable growth. The allowance coverage ratio increased to 5.70% at June 30, 2016 from 5.38% a year earlier, and management now estimates a 20-30 basis point increase in its net charge-off rate over the next twelve months, citing an increase in delinquent accounts during the second quarter. Loan receivables grew 11.2% year over year to $68.3 billion, and total deposits rose 7.1% from December 31, 2015 to $46.4 billion, with direct deposits up 14.8% to $34.1 billion. The company prepaid the remaining $4.1 billion Bank Term Loan during the first half of 2016. Synchrony's senior unsecured debt is rated BBB- (stable outlook) by Fitch and S&P. On July 7, 2016, the Board approved a first quarterly cash dividend of $0.13 per share, payable August 25, 2016, and a share repurchase program of up to $952 million for the four quarters ending June 30, 2017. The company states it remains well-capitalized, with a Tier 1 risk-based capital ratio of 18.5% at June 30, 2016.
Jul 28, 2016
2016-Q1
Synchrony Financial Quarterly Report for Q1 Ended Mar 31, 2016
Synchrony Financial (SYF) reported net earnings of $582 million for the three months ended March 31, 2016, up 5.4% from $552 million a year earlier, with a return on assets of 2.8%. Net interest income rose 11.6% to $3,209 million, driven by higher average loan receivables, which reached $65,849 million at quarter-end, up 13.0% year over year. Growth was supported by purchase volume of $27.0 billion and 66.1 million average active accounts, along with the BP portfolio acquired in the second quarter of 2015. Credit costs rose. The provision for loan losses increased 31.4% to $903 million, reflecting portfolio growth and a lower loan loss reserve build in the prior year. The allowance coverage ratio edged down to 5.50% from 5.59% a year earlier, and the net charge-off rate rose 17 basis points to 4.70%. Over-30-day delinquencies were 3.85% of period-end loan receivables, versus 3.79% a year earlier. Management described asset quality as relatively stable. Other expense rose 7.2% to $800 million, mainly from employee costs and information processing. Funding has shifted toward direct deposits, which grew 9.4% to $32.5 billion, and total deposits reached $45.0 billion. The company prepaid $2.7 billion of its Bank Term Loan during the quarter and repaid the remaining balance on April 5, 2016. Capital ratios remained strong: the Common equity Tier 1 ratio was 18.1% on a transition basis and 17.5% fully phased-in (estimated), and the company met well-capitalized requirements.
Apr 28, 2016
2015-Q3
Synchrony Financial Quarterly Report for Q3 Ended Sep 30, 2015
Synchrony Financial reported net earnings of $574 million for the third quarter and $1,667 million for the nine months ended September 30, 2015, representing a return on assets of 2.9% and 3.0%, respectively. The company financed $29.2 billion of purchase volume in the quarter and $81.2 billion year to date, with $63.5 billion of loan receivables and $40.5 billion of deposits at quarter end. Net interest income rose to $3,103 million for the quarter and $8,885 million for the nine months, while other expense increased 15.8% in the quarter as the company invested in growth and infrastructure ahead of its separation from GE. The filing states that the Federal Reserve Board approved Synchrony to become a standalone savings and loan holding company on October 14, 2015, and that GE commenced an exchange offer on October 19, 2015 for its remaining shares, which it owns at approximately 84.6%. The company does not currently pay dividends, and its board intends to consider a dividend policy and possible stock repurchases after the exchange offer is completed. Credit quality improved, with the over-30 day delinquency rate falling to 4.02% from 4.26% a year earlier, and the allowance coverage ratio edging down to 5.31% from 5.46%. The company also reported growth in direct deposits to $27.6 billion, a 40.1% increase from December 31, 2014, while it prepaid $3.6 billion of its Bank Term Loan during the nine months. Its senior unsecured debt is rated BBB- by both Fitch and S&P, and its Basel III common equity Tier 1 capital ratio on a fully phased-in basis was estimated at 16.6%.
Oct 30, 2015
2015-Q2
Synchrony Financial Quarterly Report for Q2 Ended Jun 30, 2015
Synchrony Financial's second-quarter 2015 Form 10-Q reports net earnings of $541 million for the three months ended June 30, 2015, up 14.6%, and $1,093 million for the six months, up 6.1%, with return on assets of 2.9% and 3.0%, respectively. Growth was driven by higher net interest income, which rose 6.9% for the quarter to $2,907 million, reflecting higher average loan receivables partly offset by higher funding costs. Loan receivables reached $61.4 billion at June 30, 2015, up 12.0% year over year and including the acquisition of the BP portfolio, while purchase volume grew 10.9% in the quarter. Credit quality improved: the over-30 day delinquency rate fell to 3.53% from 3.82%, and the net charge-off rate decreased to 4.63% for the quarter. Funding continued to shift toward deposits and third-party debt. Total deposits rose 8.1% to $37.8 billion, with direct deposits up 23.9% to $24.4 billion, while related party debt from GECC was fully repaid in the first quarter of 2015. Other expense rose 10.2% for the six months to $1,551 million as the company built standalone infrastructure. The company is still majority owned by GE (approximately 84.6%), and the filing states that it does not expect to pay dividends or repurchase stock until its application to the Federal Reserve Board is approved in connection with the separation from GE. The company reported Basel III capital ratios, with a common equity Tier 1 ratio of 17.2% on a transition basis and 16.4% on a fully phased-in basis at June 30, 2015. It stated it was in compliance with all debt covenants. Subsequent to quarter end, on July 23, 2015, it issued $1.0 billion of 4.500% senior unsecured notes due 2025.
Jul 31, 2015
2015-Q1
Synchrony Financial Quarterly Report for Q1 Ended Mar 31, 2015
Synchrony Financial (SYF) reported net earnings of $552 million for the three months ended March 31, 2015, a return on assets of 3.0%, compared with net earnings of $558 million in the prior-year quarter. Net earnings decreased 1.1%, driven by higher retailer share arrangements and other expense, partially offset by higher net interest income and a lower provision for loan losses. The company financed $23.1 billion of purchase volume, had 61.6 million average active accounts, and ended the quarter with $58.2 billion of loan receivables and $35.0 billion of deposits. Other expense rose $136 million, or 22.3%, reflecting costs of building a standalone infrastructure and business growth, while the provision for loan losses fell $77 million, or 10.1%, on improving asset quality. Over-30 day delinquencies declined to 3.79% from 4.09% a year earlier, and the allowance coverage ratio edged up to 5.59%. Funding costs rose as the company shifted its mix toward higher-cost third-party debt. Interest expense increased $85 million, or 44.7%, and the cost of funds rose to 1.86% from 1.58%. The company issued $1.0 billion of senior unsecured notes in February 2015 and used the proceeds, along with other cash, to prepay $2.6 billion of its Bank Term Loan and to repay all remaining GECC Term Loan debt. GE owned approximately 84.6% of common stock. The company filed its application with the Federal Reserve Board on April 30, 2015 in connection with its separation from GE, and it does not expect to pay a dividend or repurchase stock until that application is approved. Basel I Tier 1 common ratio at March 31, 2015 was 16.9%, and the company estimates a fully phased-in Basel III Tier 1 common ratio of 16.4%. The filing also details ongoing regulatory and litigation matters, including the 2014 CFPB and DOJ consent orders requiring approximately $204 million in total consumer remediation, and several Telephone Consumer Protection Act class actions. Management states that it believes none of the pending legal proceedings would have a material adverse effect on its financial condition or liquidity.
May 1, 2015
2014-Q3
Synchrony Financial Quarterly Report for Q3 Ended Sep 30, 2014
Synchrony Financial reported net earnings of $548 million for the third quarter of 2014, down 14.5% from $641 million a year earlier, driven by higher other expense, provision for loan losses and interest expense, partly offset by higher interest income. For the nine months ended September 30, 2014, net earnings rose 2.7% to $1,578 million, supported by higher net interest income and a lower provision for loan losses, which was partly offset by higher retailer share arrangements and other expenses. Loan receivables grew 6.6% to $56,767 million, and the company reported 60.5 million active accounts at quarter-end. The quarter reflected the company's initial public offering, which closed August 5, 2014 with 125 million shares sold at $23.00 per share, plus 3.5 million shares issued under the underwriters' option. Net proceeds were approximately $2.8 billion, and GE owns approximately 84.6% of common stock. The company also completed new debt financings, including an $8.0 billion unsecured term loan from third-party lenders and $3.6 billion of senior unsecured notes, and repaid most of its related party debt owed to GECC. Third-party debt stood at $11.1 billion and related party debt at $1.4 billion at September 30, 2014. Funding and credit metrics were mixed. Total deposits rose 27.1% to $32.7 billion since December 31, 2013, with direct deposits up 66.4% to $18.3 billion. The over-30 day delinquency rate improved to 4.26% from 4.32%, but the provision for loan losses increased $134 million, or 24.8%, for the quarter. Other expense rose to $728 million from $575 million. The filing states the company will not pay a dividend or repurchase stock until its Federal Reserve application is approved.
Oct 31, 2014
2014-Q2
Synchrony Financial Quarterly Report for Q2 Ended Jun 30, 2014
Synchrony Financial (SYF) filed this Form 10-Q for the quarter ended June 30, 2014, presenting results before its initial public offering, which closed on August 5, 2014. For the three months ended June 30, 2014, the company reported net earnings of $472 million, down from $536 million a year earlier, while six-month net earnings rose to $1,030 million from $895 million. Net interest income increased 8.5% to $2,720 million in the quarter, while other expense rose to $797 million from $563 million, driven by business growth, standalone infrastructure costs, marketing and a self-identified consumer remediation. Loan receivables reached $54.9 billion at June 30, 2014 (including $1,458 million held for sale), and deposits grew to $30.5 billion, with direct deposits up 42.7% to $15.7 billion. The filing describes the Transactions tied to GE's staged exit: the IPO of 125 million shares at $23.00 per share, plus 3.5 million shares under the underwriters' option, generating net proceeds of approximately $2.8 billion. GE will own approximately 84.6% of the common stock afterward. The company also borrowed $8.0 billion under a new third-party term loan and $1.5 billion from GECC, repaid $8.0 billion of related party debt owed to GECC, and issued $3.6 billion of senior notes in August 2014. Management expects to retain earnings and not pay dividends or repurchase stock until its Federal Reserve Board application is approved. Key risk and credit indicators include a 30+ day delinquency rate of 3.8% at June 30, 2014, versus 4.3% at December 31, 2013, and an allowance coverage ratio of 5.5%. The Bank's Tier 1 risk-based capital ratio was 16.5% at June 30, 2014. The filing also discloses 2014 Consent Orders with the CFPB and DOJ requiring about $37 million of remaining remediation, which the company says were previously reserved and not material to the quarter.
Sep 5, 2014