01—Abstract
Summary
Summary of the 8-K filed June 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 May 31, 2025 under Item 7.01 (Regulation FD) of this Form 8-K.
The data are unaudited and reported in billions of dollars. Period-end loan receivables were $99.9 billiona at May 31, 2025, compared with $102.4 billion at May 31, 2024, and average loan receivables, including held for sale, were $99.2 billion for May 2025. In May 2025, the 30+ delinquency rate was 4.2%, compared with 4.5% in May 2024.
The net charge-off rate was 5.1%b for May 2025, compared with 6.5% for May 2024. The adjusted net charge-off rate, which adds a recovery adjustment of 0.1% for the month, was 5.2% for May 2025, compared with 6.4% for May 2024. Over the period, the 30+ delinquency rate moved from 4.7% in January 2025 to 4.2% in May 2025, and the adjusted net charge-off rate ranged from 6.2% to 6.8% in the February through April 2025 months before falling to 5.2% in May.
The filing notes that charge-off cycle dates vary by month, which can cause monthly charge-off amounts to fluctuate without a corresponding change in portfolio performance. Consumer credit card loans represent approximately 92%c of period-end loan receivables at May 31, 2025. The company states it will continue to furnish these statistics monthly.
For the last month of each calendar quarter, the statistics will be released together with its quarterly financial results. The information is furnished, not filed, for purposes of Section 18 of the Exchange Act.
02—Key points
Key Highlights
- Period-end loan receivables were $99.9 billion at May 31, 2025, versus $102.4 billion at May 31, 2024.
- The 30+ delinquency rate was 4.2% in May 2025, compared with 4.5% in May 2024, and declined monthly from 4.7% in January 2025.
- The net charge-off rate was 5.1% in May 2025, compared with 6.5% in May 2024.
- The adjusted net charge-off rate, including a 0.1% recovery adjustment, was 5.2% in May 2025, compared with 6.4% in May 2024.
- Adjusted net charge-off rates were 6.3% in April 2025 and 6.2% in March 2025 before dropping to 5.2% in May 2025.
- Consumer credit card loans represent approximately 92% of total period-end loan receivables at May 31, 2025.
- Monthly statistics will continue to be furnished, 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 monthly charge-off and delinquency statistics for the thirteen months ended May 31, 2025, under Item 7.01 (Regulation FD Disclosure). The information is furnished and not deemed filed for purposes of Section 18 of the Exchange Act.
How did delinquencies trend in the most recent period?
The 30+ delinquency rate was 4.2% at May 31, 2025, down from 4.3% in April 2025, 4.5% in March 2025, and 4.7% in January and February 2025. It was also below the 4.5% reported for May 2024.
What is the difference between the net charge-off rate and the adjusted 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. In May 2025 the recovery adjustment was 0.1%, moving the net charge-off rate from 5.1% to an adjusted rate of 5.2%. The company says the adjusted rate is a non-GAAP measure it believes is more indicative of quarterly and annual net charge-off rates.
Why can monthly charge-off amounts fluctuate?
Charge-offs are executed on charge-off cycle dates, which vary by month based on the calendar and billing cycles. The filing states that the amount of charged-off receivables can vary between months with no corresponding change in portfolio performance.
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 at the same time as the company announces its quarterly financial results.
04—Continue