01—Abstract
Summary
Summary of the 8-K filed April 21, 2026. Cited figures are marked; the original filing is the authoritative source.
Synchrony Financial (NYSE: SYF) reported first quarter 2026 net earnings of $805 milliona, or $2.27 per diluted share, compared to $757 million, or $1.89 per diluted share in the first quarter of 2025.
The company reported record first quarter purchase volume of $43.0 billionb, up 6%, while loan receivables were flat at $100.1 billion and average active accounts decreased 1% to 68.8 million. Net interest income rose 4% to $4.6 billion, and the provision for credit losses fell $156 million to $1.3 billion, primarily due to lower net charge-offs. Net charge-offs were 5.42% of average loan receivables compared to 6.38% in the prior year.
Other expense rose 6% to $1.3 billionc, driven by technology investments and higher operational losses, and the efficiency ratio increased to 35.6% from 33.4%. The Board approved a new share repurchase program of up to $6.5 billion, commencing in the second quarter of 2026, with no expiration date, replacing the prior program scheduled to expire June 30, 2026. The Board also approved a planned 13% increase in the quarterly cash dividend to $0.34 per share beginning in the third quarter of 2026.
During the quarter, the company returned $1.0 billiond in capital, including $900 million of share repurchases and $104 million of common stock dividends. The estimated Common Equity Tier 1 ratio was 12.7%, compared to 13.2% a year earlier. management's 2026 outlook, presented in the accompanying earnings presentation, calls for FY'26 EPS of $9.10 to $9.50, mid-single digit ending loan receivables growth, and a net charge-off rate below 5.5%, with losses expected to peak in the second quarter of 2026.
02—Key points
Key Highlights
- Net earnings of $805 million, or $2.27 per diluted share, up from $757 million, or $1.89 per diluted share, in Q1 2025.
- Purchase volume rose 6% to $43.0 billion, a record first quarter; loan receivables were flat at $100.1 billion.
- New $6.5 billion share repurchase program with no expiration date, commencing in Q2 2026; $900 million of repurchases were made in the quarter.
- Planned 13% increase in the quarterly cash dividend to $0.34 per share beginning in Q3 2026.
- Net charge-offs improved to 5.42% of average loan receivables from 6.38%, and the provision for credit losses decreased $156 million to $1.3 billion.
- Net interest margin increased 76 basis points to 15.50%, while the efficiency ratio rose to 35.6% from 33.4% on higher other expense.
- CET1 ratio was an estimated 12.7%, down from 13.2% a year earlier; 2026 outlook calls for FY'26 EPS of $9.10 to $9.50.
03—Questions
Frequently Asked Questions
What drove the increase in Synchrony's first quarter 2026 earnings?
Net interest income increased $171 million, or 4%, to $4.6 billion, primarily from higher loan receivables yield and lower interest-bearing liabilities cost. The provision for credit losses also decreased $156 million to $1.3 billion, mainly due to lower net charge-offs, partially offset by a $97 million reserve release in the prior year. Retailer share arrangements rose $175 million, or 20%, to $1.1 billion, reflecting program performance.
What are the details of the new share repurchase program and dividend increase?
The Board approved a new share repurchase program of up to $6.5 billion of common stock, commencing in the second quarter of 2026, with no expiration date, replacing the prior program scheduled to expire June 30, 2026. The Board also approved a planned 13% increase in the quarterly cash dividend to $0.34 per share beginning in the third quarter of 2026.
How did credit quality and capital ratios change?
Loans 30+ days past due were 4.54% compared to 4.52% in the prior year, and loans 90+ days past due were 2.28% compared to 2.29%. Net charge-offs were 5.42% compared to 6.38%. The estimated CET1 ratio was 12.7% compared to 13.2%, and the estimated Tier 1 Capital ratio was 13.9% compared to 14.4% in the prior year.
What is the company's 2026 outlook?
The earnings presentation outlines FY'26 EPS of $9.10 to $9.50, mid-single digit ending loan receivables growth, and a net charge-off rate below 5.5%. Management expects strong purchase volume growth to continue throughout 2026, receivables growth to accelerate through the second half, and losses to peak in the second quarter of 2026.
What drove higher other expense and the efficiency ratio?
Other expense increased $73 million, or 6%, to $1.3 billion, primarily driven by costs related to technology investments and higher operational losses. Information processing expense rose 19.6% to $262 million, and the efficiency ratio increased to 35.6% from 33.4%.
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