01—Abstract
Summary
Summary of the 8-K filed August 15, 2024. Cited figures are marked; the original filing is the authoritative source.
Synchrony Financial furnished its Monthly Charge-Off and Delinquency Statistics for the thirteen months ended July 31, 2024 under Item 7.01 (Regulation FD).
The statistics are unaudited and expressed in billions of dollars. The company states it will continue furnishing these statistics monthly, and for the last month of each calendar quarter it will furnish them together with its announcement of quarterly financial results. For July 31, 2024, period-end loan receivables were $102.7 billiona, up from $96.3 billion at July 31, 2023, and average loan receivables, including held for sale, were $101.9 billion for the month.
The 30+ day delinquency rate was 4.6%b at July 31, 2024, compared with 4.0% a year earlier. The net charge-off rate for the month was 6.2%, compared with 4.7% in July 2023, and the adjusted net charge-off rate, which includes a recovery adjustment, was 6.3%, compared with 4.7%. The filing attributes the year-over-year increases in the 30+ delinquency rate and the net charge-off rate to the continued impact of moderation in customer payment rates.
The filing also notes that consumer credit card loan receivables represented approximately 92%c of total period-end loan receivables at July 31, 2024. Monthly charge-off results can vary with the number of charge-off cycle dates in a given month, which the filing lists for each calendar month, so investors should consider these figures alongside the quarterly results.
02—Key points
Key Highlights
- Period-end loan receivables were $102.7 billion at July 31, 2024, versus $96.3 billion at July 31, 2023.
- The 30+ day delinquency rate was 4.6% at July 31, 2024, versus 4.0% at July 31, 2023.
- The net charge-off rate for July 2024 was 6.2%, versus 4.7% in July 2023.
- The adjusted net charge-off rate, including the recovery adjustment, was 6.3% for July 2024, versus 4.7% in July 2023.
- The company attributes the year-over-year increases in delinquency and net charge-off rates to the continued impact of moderation in customer payment rates.
- Consumer credit card loan receivables represented approximately 92% of total period-end loan receivables at July 31, 2024.
- The company will furnish these statistics monthly, with the last month of each quarter furnished alongside quarterly earnings results.
03—Questions
Frequently Asked Questions
What is the company reporting in this filing?
Synchrony Financial is furnishing monthly charge-off and delinquency statistics for the thirteen months ended July 31, 2024, in Exhibit 99.1 under Item 7.01 of Form 8-K. The information is unaudited and is furnished rather than filed for purposes of Section 18 of the Securities Exchange Act of 1934.
How did delinquencies and charge-offs compare with a year earlier?
At July 31, 2024, the 30+ delinquency rate was 4.6% versus 4.0% at July 31, 2023. The net charge-off rate for July 2024 was 6.2% versus 4.7% for July 2023, and the adjusted net charge-off rate was 6.3% versus 4.7%. The filing attributes these increases to the continued impact of moderation in customer payment rates.
How large is the loan portfolio?
Period-end loan receivables were $102.7 billion at July 31, 2024, and average loan receivables, including held for sale, were $101.9 billion for the month of July 2024.
What share of the portfolio is credit cards?
Consumer credit card loan receivables represented approximately 92% of total period-end loan receivables at July 31, 2024.
Why can monthly charge-off figures fluctuate?
Charge-offs are executed on charge-off cycle dates that vary by month based on the calendar and billing cycles. The filing states that the amount of charged-off receivables can therefore vary between months without a corresponding change in portfolio performance. The filing also provides the number of charge-off cycle dates for each month in 2023 and 2024.
04—Continue