01—Abstract
Summary
Summary of the 8-K filed November 15, 2024. Cited figures are marked; the original filing is the authoritative source.
Synchrony Financial furnished Exhibit 99.1 under Item 7.01 (Regulation FD Disclosure) of this Form 8-K, presenting its monthly charge-off and delinquency statistics for the thirteen months ended October 31, 2024.
The unaudited statistics show period-end loan receivables of $102.3 billiona at October 31, 2024, up from $98.9 billion at October 31, 2023, and average loan receivables, including held for sale, of $101.7 billion compared with $97.9 billion a year earlier. Credit metrics were higher year over year. The 30+ delinquency rate was 4.9% at October 31, 2024, versus 4.6% at October 31, 2023.
The net charge-off rate for October 2024 was 6.2%b, compared with 5.4% in October 2023, and the adjusted net charge-off rate was 6.4%, compared with 5.6%. The company states that these year-over-year increases reflect the continued impact of moderation in customer payment rates. The company intends to furnish these statistics monthly, and for the last month of each calendar quarter it will furnish them together with its quarterly financial results.
The filing notes that consumer credit card loan receivables represent approximately 92%c of total period-end loan receivables at October 31, 2024. The information is furnished, not filed, and is not subject to Section 18 liabilities or incorporated by reference into other filings unless expressly stated.
02—Key points
Key Highlights
- Period-end loan receivables were $102.3 billion at October 31, 2024, compared with $98.9 billion at October 31, 2023.
- The 30+ delinquency rate was 4.9% at October 31, 2024, up from 4.6% a year earlier.
- The net charge-off rate for the month ended October 31, 2024 was 6.2%, versus 5.4% in October 2023.
- The adjusted net charge-off rate, a non-GAAP measure that includes the recovery adjustment, was 6.4% for October 2024, versus 5.6% a year earlier.
- 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 represent approximately 92% of total period-end loan receivables at October 31, 2024.
- The company will continue furnishing these statistics monthly, with quarter-end month figures released alongside quarterly earnings.
03—Questions
Frequently Asked Questions
What is being disclosed in this 8-K filing?
The company furnishes Exhibit 99.1, which contains monthly charge-off and delinquency statistics for the thirteen months ended October 31, 2024. The statistics are unaudited and presented in billions of dollars, with rates expressed as percentages of loan receivables.
How did loan receivables change compared with a year earlier?
Period-end loan receivables were $102.3 billion at October 31, 2024, compared with $98.9 billion at October 31, 2023. Average loan receivables, including held for sale, were $101.7 billion for October 2024 versus $97.9 billion for October 2023.
How did credit quality metrics compare year over year?
The 30+ delinquency rate was 4.9% at October 31, 2024, versus 4.6% a year earlier. The net charge-off rate for October 2024 was 6.2%, compared with 5.4%, and the adjusted net charge-off rate was 6.4%, compared with 5.6%. The company says the increases reflect the continued impact of moderation in customer payment rates.
What does the adjusted net charge-off rate measure?
The adjusted net charge-off rate is a non-GAAP measure that adds the recovery adjustment to net charge-offs, expressed as a percentage of average loan receivables, including held for sale. The company states that it believes this measure is useful to investors because it represents a monthly measure more indicative of its quarterly and annual net charge-off rates.
How often will the company 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 the company announces its quarterly financial results.
04—Continue