01—Abstract
Summary
Summary of the 8-K filed February 10, 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 January 31, 2025 under Item 7.01 (Regulation FD) of this Form 8-K.
The statistics are unaudited and presented in billions of dollars. The company states it will furnish these statistics monthly, and for the last month of each calendar quarter it will furnish them together with its quarterly financial results announcement. The information is furnished, not filed, and is not subject to Section 18 liabilities.
For January 2025, period-end loan receivables were $102.2 billiona, compared with $101.3 billion at January 31, 2024, and average loan receivables, including held for sale, were $102.8 billion, compared with $101.4 billion a year earlier. The 30+ delinquency rate was 4.7% in January 2025, versus 4.9% in January 2024. The net charge-off rate was 6.2% in January 2025, versus 5.8% in January 2024, and the adjusted net charge-off rate was 6.2%, versus 6.0% a year earlier.
The filing notes that monthly charge-off figures can vary because charge-offs are executed on cycle dates that differ in number from month to month, with no corresponding change in portfolio performance. The consumer credit card loan receivables, which represent approximately 92%b of total period-end loan receivables at January 31, 2025, had 28 charge-off cycle dates in January 2025, compared with 29 in January 2024. The adjusted net charge-off rate includes a recovery adjustment that allocates recoveries, including debt sales, evenly across each quarter's three months, and the company describes this non-GAAP measure as more indicative of its quarterly and annual net charge-off rates.
02—Key points
Key Highlights
- Period-end loan receivables were $102.2 billion at January 31, 2025, up from $101.3 billion at January 31, 2024, and down from $104.7 billion at December 31, 2024.
- The 30+ delinquency rate was 4.7% in January 2025, compared with 4.9% in January 2024 and 4.7% in December 2024.
- The net charge-off rate was 6.2% in January 2025, compared with 5.8% in January 2024 and 6.9% in December 2024.
- The adjusted net charge-off rate was 6.2% in January 2025, compared with 6.0% in January 2024 and 6.7% in December 2024.
- Average loan receivables, including held for sale, were $102.8 billion in January 2025, compared with $101.4 billion in January 2024.
- Consumer credit card loan receivables represent approximately 92% of total period-end loan receivables at January 31, 2025.
- The company will furnish these statistics monthly, with quarter-end month data released alongside quarterly earnings.
03—Questions
Frequently Asked Questions
What is the purpose of this 8-K filing?
The filing furnishes Exhibit 99.1, Monthly Charge-Off and Delinquency Statistics for the thirteen months ended January 31, 2025, under Item 7.01 (Regulation FD Disclosure). The information is furnished rather than filed, so it is not subject to Section 18 liability.
How did credit quality trend in January 2025 compared with January 2024?
The 30+ delinquency rate improved to 4.7% from 4.9%, and the net charge-off rate rose to 6.2% from 5.8%. The adjusted net charge-off rate rose to 6.2% from 6.0%. Period-end loan receivables were $102.2 billion, compared with $101.3 billion a year earlier.
Why do monthly charge-off figures fluctuate?
The filing says charge-offs are executed on charge-off cycle dates that vary in number by month based on the calendar and billing cycles. The company states that the number of cycle dates can cause monthly charged-off amounts to vary without any corresponding change in portfolio performance. For example, consumer credit card receivables had 28 cycle dates in January 2025 versus 29 in January 2024.
What is the adjusted net charge-off rate and how does it differ from the 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. The company describes this non-GAAP measure as a monthly measure more indicative of its quarterly and annual net charge-off rates. In January 2025, the net charge-off rate and adjusted net charge-off rate were both 6.2%.
When will investors receive these statistics going forward?
The company intends to furnish these statistics monthly. For the last month of each calendar quarter, the statistics will be furnished together with the company's announcement of its financial results for that quarter.
04—Continue