How did delinquency and charge-off rates change year over year?

At September 30, 2024, the 30+ delinquency rate was 4.8% versus 4.4% at September 30, 2023. The September net charge-off rate was 6.4% versus 4.5%, and the adjusted net charge-off rate was 6.2% versus 4.4%. The company attributes these increases to the continued impact of moderation in customer payment rates.

Why did net charge-offs increase from August to September 2024?

The company states the increase was primarily due to five more charge-off cycles in September, which the filing shows as 30 cycles versus 25 in August. The filing notes that charge-off cycle counts vary by calendar and billing timing and can cause differences between months without a corresponding change in portfolio performance.

How large is the loan portfolio and what share is credit card?

Period-end loan receivables were $102.2 billion at September 30, 2024, and average loan receivables, including held for sale, were $102.1 billion. Consumer credit card loan receivables represent approximately 92% of total period-end loan receivables.

Will Synchrony continue to publish these statistics?

Yes. 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 quarterly financial results announcement.

Synchrony Financial 8-K: Regulation FD

01—Abstract

Summary

Summary of the 8-K filed October 16, 2024. Cited figures are marked; the original filing is the authoritative source.

Synchrony Financial furnished under Item 7.01 (Regulation FD) its Exhibit 99.1, Monthly Charge-Off and Delinquency Statistics for the thirteen months ended September 30, 2024.

The statistics are unaudited and stated in billions of dollars. The company says it will continue to furnish these statistics monthly, and for the last month of each calendar quarter it will furnish them together with its quarterly financial results announcement. At September 30, 2024, period-end loan receivables were $102.2 billion^a and average loan receivables, including held for sale, were $102.1 billion.

The 30+ delinquency rate was 4.8%^b, compared with 4.4% at September 30, 2023. The net charge-off rate for September 2024 was 6.4%, compared with 4.5% in September 2023, and the adjusted net charge-off rate was 6.2%, compared with 4.4% a year earlier. The company attributes the year-over-year increases in both delinquency and net charge-off rates to the continued impact of moderation in customer payment rates.

It also attributes the rise in net charge-offs from August 2024 to primarily five more charge-off cycles in September, which the filing shows as 30 cycles versus 25 in August. The filing notes that consumer credit card loan receivables represent approximately 92%^c of total period-end loan receivables at September 30, 2024. The information is furnished, not filed, and is not incorporated by reference into other filings under the Securities Act or the Exchange Act unless specifically referenced.

02—Key points

Key Highlights

Period-end loan receivables were $102.2 billion at September 30, 2024, versus $97.9 billion at September 30, 2023.
The 30+ delinquency rate was 4.8% at September 30, 2024, up from 4.4% a year earlier, which the company links to moderation in customer payment rates.
The September 2024 net charge-off rate was 6.4%, compared with 4.5% in September 2023; the adjusted net charge-off rate was 6.2%, compared with 4.4%.
The recovery adjustment for September 2024 was (0.2)%, which lowered the adjusted net charge-off rate relative to the unadjusted rate.
Net charges rose from August to September 2024, which the company attributes primarily to five more charge-off cycles (30 in September versus 25 in August).
Consumer credit card loan receivables represent approximately 92% of total period-end loan receivables at September 30, 2024.
The company will furnish these monthly statistics going forward, with quarter-end month data released alongside quarterly earnings.

03—Questions

Frequently Asked Questions

What did Synchrony Financial disclose in this 8-K?
The company furnished Exhibit 99.1, which contains unaudited monthly charge-off and delinquency statistics for the thirteen months ended September 30, 2024, under Item 7.01 (Regulation FD Disclosure).
How did delinquency and charge-off rates change year over year?
At September 30, 2024, the 30+ delinquency rate was 4.8% versus 4.4% at September 30, 2023. The September net charge-off rate was 6.4% versus 4.5%, and the adjusted net charge-off rate was 6.2% versus 4.4%. The company attributes these increases to the continued impact of moderation in customer payment rates.
Why did net charge-offs increase from August to September 2024?
The company states the increase was primarily due to five more charge-off cycles in September, which the filing shows as 30 cycles versus 25 in August. The filing notes that charge-off cycle counts vary by calendar and billing timing and can cause differences between months without a corresponding change in portfolio performance.
How large is the loan portfolio and what share is credit card?
Period-end loan receivables were $102.2 billion at September 30, 2024, and average loan receivables, including held for sale, were $102.1 billion. Consumer credit card loan receivables represent approximately 92% of total period-end loan receivables.
Will Synchrony continue to publish these statistics?
Yes. 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 quarterly financial results announcement.

04—Continue

← View all 8-K filings