01—Abstract
Summary
Summary of the 8-K filed April 24, 2024. Cited figures are marked; the original filing is the authoritative source.
Synchrony Financial furnished Exhibit 99.1, its monthly charge-off and delinquency statistics for the thirteen months ended March 31, 2024 (unaudited, in billions of dollars), under Item 7.01 (Regulation FD).
The filing states that the company will continue to furnish these statistics monthly, with the statistics for the last month of each calendar quarter furnished alongside its quarterly financial results announcement. The information is furnished, not filed, for purposes of Section 18 of the Exchange Act. Period-end loan receivables were $101.7 billiona at March 31, 2024, up from $91.1 billion at March 31, 2023, and average loan receivables, including held for sale, were $101.2 billion for March 2024 versus $90.3 billion a year earlier.
The 30+ delinquency rate was 4.7%b at March 31, 2024, compared with 3.8% at March 31, 2023, and 5.0% at February 29, 2024. The company attributes the year-over-year increases in the 30+ delinquency rate and in the March 2024 net charge-off rate to the continued impact of moderation in customer payment rates.
The net charge-off rate was 6.6%c for March 2024 (4.5% in March 2023), and the adjusted net charge-off rate, which includes a recovery adjustment of (0.2)% in March, was 6.4%, versus 4.5% a year earlier. The filing also notes that credit card loan receivables represented approximately 92% of total period-end loan receivables at March 31, 2024.
02—Key points
Key Highlights
- Period-end loan receivables of $101.7 billion at March 31, 2024, compared with $91.1 billion at March 31, 2023.
- 30+ delinquency rate of 4.7% at March 31, 2024, up from 3.8% a year earlier and 5.0% at February 29, 2024.
- Net charge-off rate of 6.6% for March 2024, versus 4.5% for March 2023.
- Adjusted net charge-off rate of 6.4% for March 2024 after a (0.2)% recovery adjustment, versus 4.5% for March 2023.
- Management attributes the year-over-year increases in delinquency and net charge-off rates to the continued impact of moderation in customer payment rates.
- Credit card loans make up approximately 92% of total period-end loan receivables at March 31, 2024.
- Statistics will be furnished monthly going forward, with quarter-end month figures released alongside quarterly earnings.
03—Questions
Frequently Asked Questions
How did Synchrony's delinquency and charge-off rates trend as of March 31, 2024?
The 30+ delinquency rate rose to 4.7% at March 31, 2024, from 3.8% at March 31, 2023. The net charge-off rate was 6.6% for March 2024, versus 4.5% for March 2023. The filing attributes the year-over-year increases to the continued impact of moderation in customer payment rates.
What is the difference between the net charge-off rate and the adjusted net charge-off rate?
The adjusted net charge-off rate includes a recovery adjustment that allocates recoveries, including debt sales, evenly across the three months of each quarter. For March 2024 the recovery adjustment was (0.2)%, reducing the net charge-off rate of 6.6% to an adjusted rate of 6.4%. The company describes the adjusted rate as a non-GAAP measure that it believes is more indicative of its quarterly and annual net charge-off rates.
How large is the loan portfolio and what share is credit cards?
Period-end loan receivables were $101.7 billion at March 31, 2024, up from $91.1 billion a year earlier. Consumer credit card loan receivables represented approximately 92% of total period-end loan receivables at March 31, 2024.
How often will Synchrony publish these statistics?
The company intends to furnish these statistics monthly. For the last month of each calendar quarter, the statistics will be furnished at the same time as its announcement of quarterly financial results.
04—Continue