01—Abstract
Summary
Summary of the 8-K filed March 17, 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 February 28, 2025, under Item 7.01 of Form 8-K (Exhibit 99.1).
The statistics are unaudited and are not deemed "filed" for purposes of Section 18 of the Securities Exchange Act of 1934. The company intends to furnish these statistics monthly, and for the last month of each calendar quarter, it will furnish them with its quarterly financial results announcement. As of February 28, 2025, period-end loan receivables were $100.1 billiona, down from $102.2 billion at January 31, 2025 and $104.7 billion at December 31, 2024, and up from $100.0 billion at February 29, 2024.
The 30+ day delinquency rate was 4.7% in February 2025, compared with 5.0% in February 2024. The net charge-off rate was 6.8% in February 2025 and 6.5% in February 2024, and the adjusted net charge-off rate was also 6.8% for February 2025. Average loan receivables, including held for sale, were $101.0 billionb for February 2025.
The filing notes that charge-offs occur on charge-off cycle dates that vary by month, so monthly charge-off figures can move without a corresponding change in portfolio performance. Consumer credit card loan receivables represented approximately 92%c of total period-end loan receivables at February 28, 2025. The adjusted net charge-off rate adds a recovery adjustment that allocates recoveries, including debt sales, evenly across the quarter's three months; the company describes this measure as a non-GAAP figure that it believes is more indicative of its quarterly and annual net charge-off rates.
02—Key points
Key Highlights
- Period-end loan receivables were $100.1 billion at February 28, 2025, versus $102.2 billion at January 31, 2025 and $104.7 billion at December 31, 2024.
- The 30+ day delinquency rate was 4.7% in February 2025, compared with 5.0% in February 2024.
- The net charge-off rate was 6.8% in February 2025, compared with 6.5% in February 2024.
- The adjusted net charge-off rate was 6.8% in February 2025, versus 6.2% in January 2025 and 6.7% in December 2024.
- Average loan receivables, including held for sale, were $101.0 billion in February 2025.
- Consumer credit card loan receivables represented approximately 92% of total period-end loan receivables at February 28, 2025.
- The company will furnish these statistics monthly, with quarter-end month figures released alongside quarterly earnings.
03—Questions
Frequently Asked Questions
What is the purpose of this 8-K filing?
The filing furnishes Synchrony Financial's Monthly Charge-Off and Delinquency Statistics for the thirteen months ended February 28, 2025, under Item 7.01 (Regulation FD Disclosure). 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 change in February 2025?
The 30+ day delinquency rate, defined as over-30 day loan delinquencies as a percentage of period-end loan receivables, was 4.7% in February 2025. This compares with 5.0% in February 2024 and 4.7% in both January 2025 and December 2024.
Why did the adjusted net charge-off rate differ from the net charge-off rate in some months?
The adjusted net charge-off rate includes a recovery adjustment that allocates recoveries, including debt sales, evenly across the three calendar months of each quarter. In December 2024, the net charge-off rate was 6.9% and the recovery adjustment was (0.2)%, producing an adjusted rate of 6.7%. In February 2025, the recovery adjustment was zero, so both rates were 6.8%.
Why can monthly charge-off figures fluctuate?
Charge-offs are executed on charge-off cycle dates, which occur on various days each month. The number of cycle dates varies with the calendar and billing cycle timing, so charged-off balances can change between months without a corresponding change in portfolio performance. The filing lists the number of cycle dates for consumer credit card receivables, which represent about 92% of total period-end loan receivables.
When will investors receive these statistics going forward?
Synchrony 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's announcement of quarterly financial results.
04—Continue