01—Abstract
Summary
Summary of the 8-K filed February 15, 2024. Cited figures are marked; the original filing is the authoritative source.
Synchrony Financial (SYF) furnished this Form 8-K under Item 7.01 (Regulation FD Disclosure) with Exhibit 99.1, its Monthly Charge-Off and Delinquency Statistics for the thirteen months ended January 31, 2024.
The statistics are unaudited and stated in billions of dollars. As of January 31, 2024, period-end loan receivables were $101.3 billiona, compared with $91.5 billion at January 31, 2023, and average loan receivables including held for sale were $101.4 billion. The company reported a 30+ day past-due rate of 4.9% of period-end loan receivables at January 31, 2024, up from 3.8% a year earlier.
Net charge-offs (annualized) were 5.8%b of average loan receivables for the month, versus 4.2% in January 2023. Including a recovery adjustment of 0.2%, adjusted net charge-offs were 6.0% of average loan receivables. The filing attributes the year-over-year increases in delinquencies and net charge-offs to the continued impact of moderating customer payment rates, and says the month-over-month rise in net charge-offs also reflects seasonal trends.
Synchrony stated it intends to furnish these statistics monthly, with the December and quarter-end figures released alongside its quarterly earnings announcements. The filing notes that consumer credit card loans represent about 94%c of total period-end loan receivables at January 31, 2024, and it includes a table of charge-off cycle dates by month, which the company says can cause monthly charge-off amounts to vary without a corresponding change in portfolio performance.
02—Key points
Key Highlights
- Period-end loan receivables were $101.3 billion at January 31, 2024, versus $91.5 billion at January 31, 2023.
- The 30+ day past-due rate was 4.9% of period-end loan receivables at January 31, 2024, up from 3.8% a year earlier.
- Annualized net charge-offs were 5.8% of average loan receivables for January 2024, compared with 4.2% for January 2023.
- Adjusted net charge-offs, a non-GAAP measure including a 0.2% recovery adjustment, were 6.0% for January 2024.
- The company attributes the year-over-year increases to moderating customer payment rates, with additional seasonal effects on the month-over-month rise in net charge-offs.
- Consumer credit card loans represent approximately 94% of total period-end loan receivables at January 31, 2024.
- Synchrony will continue to furnish these statistics monthly, with quarter-end figures released alongside quarterly earnings.
03—Questions
Frequently Asked Questions
What is the purpose of this 8-K filing?
The filing furnishes Exhibit 99.1, Synchrony's monthly charge-off and delinquency statistics for the thirteen months ended January 31, 2024, under Item 7.01 (Regulation FD Disclosure). The information is furnished, not filed, and is not subject to Section 18 liability.
How did delinquencies change over the past year?
The 30+ day past-due rate rose to 4.9% of period-end loan receivables at January 31, 2024, from 3.8% at January 31, 2023. The company attributes the increase to the continued impact of moderating customer payment rates.
How did net charge-offs compare with a year earlier?
Annualized net charge-offs were 5.8% of average loan receivables in January 2024, versus 4.2% in January 2023. Adjusted net charge-offs, including the recovery adjustment, were 6.0% in January 2024 and 4.3% in January 2023.
Why can monthly charge-off figures fluctuate?
The filing explains that charge-offs are executed on cycle dates that vary by month based on the calendar and billing cycles. The number of charge-off cycle dates therefore changes between months, so charged-off amounts can vary without a corresponding change in portfolio performance.
When will future statistics be released?
Synchrony intends to furnish these statistics monthly. For the last month of each calendar quarter, the statistics will be released together with the company's quarterly financial results announcement.
04—Continue