01—Abstract
Summary
Summary of the 10-Q filed July 23, 2025. Cited figures are marked; the original filing is the authoritative source.
Synchrony Financial's 10-Q for the quarter ended June 30, 2025 shows net earnings of $967 milliona 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 millionb 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 millionc (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 billiond 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.
02—Key points
Key Highlights
- Quarterly net earnings rose to $967 million from $643 million, driven mainly by a lower provision for credit losses.
- Provision for credit losses decreased $545 million (32.2%) for the quarter, with reserve releases of $265 million versus reserve builds of $70 million a year earlier.
- Net charge-off rate fell 72 basis points to 5.70% for the three months ended June 30, 2025.
- Over-30 day delinquencies improved to 4.18% of period-end loan receivables, down from 4.47% a year earlier.
- Net interest income increased 2.6% to $4.5 billion for the quarter, while retailer share arrangements rose 22.5% to $992 million.
- Loan receivables declined 2.5% to $99.8 billion, reflecting lower purchase volume and higher payment rates.
- The company repurchased $1.1 billion of common stock in the first half, with $2.0 billion remaining under a $2.5 billion program, and raised its quarterly dividend to $0.30 per share.
03—One dollar
04—Financials
Financial Highlights
Figures from 10-QQ2 FY2025filed July 23, 2025Financial Statements
Q2 FY2025 against Q2 FY2024
| Line item | Q2 FY2025Q2 FY2024 | Change |
|---|---|---|
| Net Income | $967.00M$643.00M | +50.4% |
| EPS (Basic) | $2.51$1.56 | +60.9% |
| EPS (Diluted) | $2.50$1.55 | +61.3% |
| Shares Outstanding (Basic) | 376.20M399.30M | −5.8% |
| Shares Outstanding (Diluted) | 379.10M402.60M | −5.8% |
05—Questions
Frequently Asked Questions
Why did net earnings increase in the second quarter but decline for the six months?
For the three months ended June 30, 2025, net earnings rose to $967 million from $643 million, primarily due to a decrease in the provision for credit losses, partly offset by higher retailer share arrangements. For the six months, net earnings fell to $1.7 billion from $1.9 billion, mainly because the prior year included the $802 million after-tax gain on the Pets Best sale, partially offset by the lower provision.
How is the credit quality trending?
Credit metrics improved. The net charge-off rate was 5.70% for the quarter, down 72 basis points, and over-30 day delinquencies were 4.18% of period-end loan receivables, down from 4.47% a year earlier. The allowance coverage ratio was 10.59%, compared with 10.74% at June 30, 2024.
What is the company's funding and liquidity position?
Deposits totaled $82.3 billion at June 30, 2025, representing 84% of total funding sources. Liquid assets were $21.8 billion, and the company had $10.8 billion of available Federal Reserve discount window capacity, plus $2.6 billion of undrawn securitization capacity and $500 million of undrawn committed capacity under its unsecured revolving credit facility.
What are the capital return plans?
In the first half of 2025, the company repurchased $1.1 billion of common stock and paid $0.55 per share in common dividends. In April 2025 the Board approved a new repurchase program of up to $2.5 billion through June 30, 2026, leaving $2.0 billion remaining at June 30, 2025. The quarterly dividend increased to $0.30 per share beginning in the second quarter of 2025.
What regulatory developments affect the company?
The CFPB's credit card late fee rule was vacated on April 15, 2025, after the court granted a joint motion by the CFPB and industry plaintiffs. The company expects to make minor modifications to the product, pricing and policy changes it had implemented in anticipation of the rule. The company also noted that the One Big Beautiful Bill Act, enacted July 4, 2025, is not expected to have a material impact on its financial statements.
06—Continue