How did Synchrony's delinquency rate change over the past year?

The 30+ delinquency rate was 4.7% at December 31, 2024, the same as at December 31, 2023. The company said this was primarily due to the impact of credit actions.

Why did net charge-offs increase in December 2024?

Compared with November 2024, the increase was primarily due to four more charge-off cycles, with 30 cycle dates in December versus 26 in November. Charge-off timing can vary between months without a change in portfolio performance, according to the filing. Year over year, the company attributed the higher net charge-off rate to the continued impact of moderation in customer payment rates.

How large is Synchrony's loan portfolio?

Period-end loan receivables were $104.7 billion at December 31, 2024, compared with $103.0 billion at December 31, 2023. Average loan receivables, including held for sale, were $103.9 billion for December 2024.

What share of the loan book is credit cards?

Consumer credit card loan receivables represent approximately 92% of total period-end loan receivables at December 31, 2024.

What is the adjusted net charge-off rate and how is it different?

The adjusted net charge-off rate adds a recovery adjustment that allocates recoveries, including debt sales, evenly across the three months of each quarter. The December 2024 adjusted net charge-off rate was 6.7%, versus 6.9% for the unadjusted net charge-off rate. The company describes it as a non-GAAP measure that it believes is more indicative of its quarterly and annual net charge-off rates.

Synchrony Financial 8-K: Regulation FD

01—Abstract

Summary

Summary of the 8-K filed January 28, 2025. 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 December 31, 2024, in Exhibit 99.1 under Item 7.01 (Regulation FD).

The statistics are unaudited and reported in billions of dollars. The company stated 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 December 31, 2024, period-end loan receivables were $104.7 billion^a, up from $103.0 billion at December 31, 2023, and average loan receivables, including held for sale, were $103.9 billion for December 2024.

The 30+ delinquency rate was 4.7%^b at December 31, 2024, the same as a year earlier, which the company attributed primarily to the impact of credit actions. The net charge-off rate for December 2024 was 6.9%, compared with 5.7% in December 2023, and the adjusted net charge-off rate was 6.7%, compared with 5.6%. The company said the year-over-year increase in the net charge-off rate reflects the continued impact of moderation in customer payment rates.

The filing also explains that the December 2024 increase in net charge-offs compared with November 2024 was primarily due to four more charge-off cycles, with 30 cycle dates in December 2024 versus 26 in November 2024. Consumer credit card loan receivables represent approximately 92%^c of total period-end loan receivables at December 31, 2024. The recovery adjustment for December 2024 was (0.2)%, which allocates recoveries, including debt sales, evenly across the quarter's three months.

02—Key points

Key Highlights

Period-end loan receivables were $104.7 billion at December 31, 2024, up from $103.0 billion at December 31, 2023.
The 30+ delinquency rate was 4.7% at December 31, 2024, flat year over year, which the company attributed primarily to credit actions.
The net charge-off rate for December 2024 was 6.9%, versus 5.7% in December 2023; the adjusted net charge-off rate was 6.7%, versus 5.6%.
Management attributed the year-over-year increase in the net charge-off rate to the continued impact of moderation in customer payment rates.
December 2024 net charge-offs rose from November 2024 mainly because of four more charge-off cycles (30 in December versus 26 in November).
Consumer credit card loan receivables represent approximately 92% of total period-end loan receivables at December 31, 2024.
The company will furnish these statistics monthly, with quarter-end month data released alongside quarterly earnings.

03—Questions

Frequently Asked Questions

How did Synchrony's delinquency rate change over the past year?
The 30+ delinquency rate was 4.7% at December 31, 2024, the same as at December 31, 2023. The company said this was primarily due to the impact of credit actions.
Why did net charge-offs increase in December 2024?
Compared with November 2024, the increase was primarily due to four more charge-off cycles, with 30 cycle dates in December versus 26 in November. Charge-off timing can vary between months without a change in portfolio performance, according to the filing. Year over year, the company attributed the higher net charge-off rate to the continued impact of moderation in customer payment rates.
How large is Synchrony's loan portfolio?
Period-end loan receivables were $104.7 billion at December 31, 2024, compared with $103.0 billion at December 31, 2023. Average loan receivables, including held for sale, were $103.9 billion for December 2024.
What share of the loan book is credit cards?
Consumer credit card loan receivables represent approximately 92% of total period-end loan receivables at December 31, 2024.
What is the adjusted net charge-off rate and how is it different?
The adjusted net charge-off rate adds a recovery adjustment that allocates recoveries, including debt sales, evenly across the three months of each quarter. The December 2024 adjusted net charge-off rate was 6.7%, versus 6.9% for the unadjusted net charge-off rate. The company describes it as a non-GAAP measure that it believes is more indicative of its quarterly and annual net charge-off rates.

04—Continue

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