For Immediate Release

Synchrony Financial (NYSE: SYF)

October 24, 2023

THIRD QUARTER 2023 RESULTS AND KEY METRICS

2.3%

12.4%

$254M

Return on

CET1

Capital

Assets

Ratio

Returned

$97.9B

Loan Receivables

Net Earnings of $628 Million or $1.48 per Diluted Share

CEO COMMENTARY

“Synchrony’s monetary efficiency highlights the power of our differentiated mannequin and the continued resilience of our clients, who proceed to regularly revert to historic spend and cost norms,” stated Brian Doubles, Synchrony’s President and Chief Executive Officer.

Record Third Quarter Purchase Volume, and

Continued Strong Receivables Growth

Returned $254 Million of Capital to Shareholders, together with $150 Million of Share Repurchases

STAMFORD, Conn. – Synchrony Financial (NYSE: SYF) at the moment introduced third quarter 2023 internet earnings of $628 million, or $1.48 per diluted share, in comparison with $703 million, or $1.47 per diluted share within the third quarter 2022.

KEY OPERATING & FINANCIAL METRICS*

PERFORMANCE REFLECTS DIFFERENTIATED BUSINESS MODEL AND CONTINUED CONSUMER RESILIENCE


  • Purchase quantity elevated 5% to $47.0 billion

  • Loan receivables elevated 14% to $97.9 billion

  • Average lively accounts elevated 6% to 70.3 million

  • New accounts decreased 2% to five.7 million

  • Net curiosity margin decreased 16 foundation factors to fifteen.36%

  • Efficiency ratio decreased 330 foundation factors to 33.2%

  • Return on property decreased 50 foundation factors to 2.3%

  • Return on fairness decreased 3 share factors to 18.1%; return on tangible frequent fairness** decreased 3.7 share factors to 22.9%

“Our diversified product suite and superior digital capabilities enabled Synchrony to proceed to ship constantly sturdy outcomes in an ever-evolving atmosphere. We are more and more on the middle of consumers’ on daily basis financing wants, and positioned because the accomplice of alternative for retailers, retailers and suppliers alike, as they search enhanced worth, higher utility and best-in-class omnichannel experiences.

“Synchrony stays intently targeted on optimizing the outcomes for our many stakeholders. As we proceed to prioritize sustainable progress at acceptable risk-adjusted returns by means of altering market situations and selectively make investments to fulfill the more and more digital calls for of our clients in a secure and safe method, we’re assured in our capability to proceed to ship on our monetary commitments and drive long-term worth.”

CFO COMMENTARY

“Synchrony’s third quarter outcomes mirrored the power of our monetary mannequin, demonstrated by means of our constant progress and powerful risk-adjusted returns,” stated Brian Wenzel, Synchrony’s Executive Vice President and Chief Financial Officer.

“Our numerous product suite and compelling worth propositions continued to deeply resonate with clients, driving broad- based mostly buy quantity and receivables progress.

“Synchrony’s superior underwriting capabilities and digital-first servicing technique continued to assist the gradual normalization of our credit score efficiency and drive enchancment in our working effectivity. In addition, our Retailer Share Arrangements continued to functionally align our companions’ pursuits as increased internet curiosity earnings was partially offset by the affect of credit score normalization.

“As Synchrony continues to leverage our core strengths – our superior knowledge analytics, our disciplined strategy to underwriting and credit score administration, and our steady funding mannequin – we’re assured in our capability to execute on our key strategic priorities and drive market main returns over the long- time period.”

BUSINESS AND FINANCIAL RESULTS FOR THE THIRD QUARTER OF 2023*

BUSINESS HIGHLIGHTS

CONTINUED TO EXPAND PORTFOLIO, ENHANCE PRODUCTS AND EXTEND REACH


  • Added or renewed greater than 9 applications, together with Belk, Installation Made Easy, York and Park West Gallery

  • Expanded digital pockets provisioning to incorporate PayPal and Venmo

  • Broadened access to pet care financing by means of partnerships with Virginia Tech, the University of Missouri and Oregon State University, making CareCredit available at greater than 95% of veterinary college hospitals nationwide

FINANCIAL HIGHLIGHTS

EARNINGS DRIVEN BY CORE BUSINESS DRIVERS


  • Interest and costs on loans elevated 21% to $5.2 billion, pushed primarily by progress in common mortgage receivables, increased benchmark charges and decrease cost price.

  • Net curiosity earnings elevated $434 million, or 11%, to $4.4 billion, pushed by increased curiosity and costs on loans, partially offset by a rise in curiosity expense from increased benchmark charges and better funding liabilities.

  • Retailer share preparations decreased $78 million, or 7%, to $979 million, reflecting increased internet     charge-offs partially offset by increased Net Interest Income.
  • Provision for credit score losses elevated $559 million to $1.5 billion, pushed by increased internet charge-offs and a better reserve build.
  • Other expense elevated $90 million, or 8%, to $1.2 billion, pushed primarily by progress associated objects, in addition to know-how investments and operational losses, partially offset by further advertising and progress reinvestment of Gain on Sale proceeds within the prior 12 months.

  • Net earnings decreased to $628 million, in comparison with $703 million.

CREDIT QUALITY

CREDIT CONTINUES TO NORMALIZE IN LINE WITH EXPECTATIONS


  • Loans 30+ days late as a share of whole     period-end mortgage receivables have been 4.40% in comparison with 3.28% within the prior 12 months, a rise of 112 foundation factors.
  • Net charge-offs as a share of whole common mortgage receivables have been 4.60% in comparison with 3.00% within the prior 12 months, a rise of 160 foundation factors, and continued to normalize inside our expectations towards our underwriting goal of 5.5-6.0%
  • The allowance for credit score losses as a share of whole period-end mortgage receivables was 10.40%, in comparison with 10.34% within the second quarter 2023.

SALES PLATFORM HIGHLIGHTS

DIVERSITY ACROSS OUR PLATFORMS CONTINUES TO PROVIDE RESILIENCE


  • Home & Auto buy quantity remained flat, as progress in business, Home Specialty and Auto Network was usually offset by decrease retail site visitors in Furniture and Electronics and the affect of decrease gasoline and lumber costs.     Period-end mortgage receivables elevated 9%, reflecting decrease cost charges. Interest and costs on loans have been up 13%, primarily pushed by mortgage receivables progress, increased benchmark charges and decrease cost price. Average lively accounts elevated 5%.
  • Digital buy quantity elevated 7%, reflecting progress in common lively accounts. Period-end mortgage receivables elevated 16%, pushed by decrease cost charges and continued buy quantity progress. Interest and costs on loans elevated 28%, reflecting the impacts of mortgage receivables progress, decrease cost price, increased benchmark charges and maturation of newer applications. Average lively accounts elevated 7%.
  • Diversified & Value buy quantity elevated 7%, pushed by increased out-of-partner spend and powerful retailer efficiency. Period-end mortgage receivables elevated 14%, reflecting buy quantity progress and decrease cost charges. Interest and costs on loans elevated 25%, pushed by the impacts of mortgage receivables progress, decrease cost price and better benchmark charges. Average lively accounts elevated 5%.
  • Health & Wellness buy quantity elevated 14%, reflecting broad-based progress in lively accounts led by Dental, Pet and Cosmetic. Period-end mortgage receivables elevated 21%, pushed by continued increased promotional buy quantity and decrease cost charges. Interest and costs on loans elevated 20%, reflecting the impacts of progress in quantity and mortgage receivables in addition to decrease cost price. Average lively accounts elevated 13%.
  • Lifestyle buy quantity elevated 8%, reflecting stronger transaction values in Outdoor and Luxury. Period-end mortgage receivables elevated 14%, pushed by buy quantity progress and decrease cost charges. Interest and costs on loans elevated 20%, pushed primarily by the impacts of mortgage receivables progress, decrease cost price and better benchmark charges. Average lively accounts elevated 1%.

BALANCE SHEET, LIQUIDITY & CAPITAL

FUNDING, CAPITAL & LIQUIDITY REMAIN ROBUST


  • Loan receivables of $97.9 billion elevated 14%; buy quantity elevated 5% and common lively accounts elevated 6%.

  • Deposits elevated $9.7 billion, or 14%, to $78.1 billion and comprised 84% of funding.

  • Total liquidity, consisting of liquid property and undrawn credit score services, was $20.5 billion, or 18.2% of whole property.

  • The firm returned $254 million in capital to shareholders, together with $150 million of share repurchases and $104 million of frequent inventory dividends.

  • As of September 30, 2023, the Company had a complete remaining share repurchase authorization of $850 million.

  • The estimated Common Equity Tier 1 ratio was 12.4% in comparison with 14.3%, and the estimated Tier 1 Capital ratio was 13.2% in comparison with 15.2%.

  • All comparisons are for the third quarter of 2023 in comparison with the third quarter of 2022, until in any other case famous.

  • Tangible frequent fairness is a     non-GAAP monetary measure. See non-GAAP reconciliation within the monetary tables.

CORRESPONDING FINANCIAL TABLES AND INFORMATION

No illustration is made that the knowledge on this information launch is full. Investors are inspired to evaluation the foregoing abstract and dialogue of Synchrony Financial’s earnings and monetary situation along side the detailed monetary tables and knowledge that comply with and the Company’s Annual Report on Form 10-Okay for the fiscal 12 months ended December 31, 2022, as filed February 9, 2023, and the Company’s forthcoming Quarterly Report on Form 10-Q for the quarter ended September 30, 2023. The detailed monetary tables and different info are additionally available on the Investor Relations web page of the Company’s web site at www.traders.synchronyfinancial.com. This info can also be furnished in a Current Report on Form 8-Okay filed with the SEC at the moment.

CONFERENCE CALL AND WEBCAST

On Tuesday, October 24, 2023, at 8:00 a.m. Eastern Time, Brian Doubles, President and Chief Executive Officer, and Brian Wenzel Sr., Executive Vice President and Chief Financial Officer, will host a convention name to evaluation the monetary outcomes and outlook for sure business drivers. The convention name might be accessed by way of an audio webcast by means of the Investor Relations web page on the Synchrony Financial company web site, www.traders.synchronyfinancial.com, underneath Events and Presentations. A replay can even be available on the web site.

ABOUT SYNCHRONY FINANCIAL

Synchrony (NYSE: SYF) is a premier client monetary providers firm delivering one of many business’s most full digitally-enabled product suites. Our expertise, experience and scale embody a broad spectrum of industries together with digital, well being and wellness, retail, telecommunications, home, auto, out of doors, pet and extra. We have a longtime and numerous group of nationwide and regional retailers, native retailers, producers, shopping for teams, business associations and healthcare service suppliers, which we discuss with as our “companions.” We join our companions and customers by means of our dynamic monetary ecosystem and supply them with a various set of financing options and progressive digital capabilities to deal with their particular wants and ship seamless, omnichannel experiences. We supply the best financing merchandise to the best clients of their channel of alternative.

For extra info, go to www.synchrony.com and Twitter: @Synchrony.

Investor Relations

Media Relations

Kathryn Miller

Lisa Lanspery

(203) 585-6291

(203) 585-6143

CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING STATEMENTS

This information launch incorporates sure forward-looking statements as outlined in Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, that are topic to the “secure harbor” created by these sections. Forward-looking statements could also be recognized by phrases comparable to “expects,” “intends,” “anticipates,” “plans,” “believes,” “seeks,” “targets,” “outlook,” “estimates,” “will,” “ought to,” “could” or phrases of comparable which means, however these phrases will not be the unique technique of figuring out forward-looking statements. Forward-looking statements are based mostly on administration’s present expectations and assumptions, and are topic to inherent uncertainties, dangers and adjustments in circumstances which might be troublesome to foretell. As a end result, precise outcomes might differ materially from these indicated in these forward-looking statements. Factors that would trigger precise outcomes to vary materially embody world political, financial, business, aggressive, market, regulatory and different components and dangers, comparable to: the affect of macroeconomic situations and whether or not business developments we have now recognized develop as anticipated, together with the longer term impacts of the novel coronavirus illness (“COVID-19”) outbreak and measures taken in response thereto for which future developments are extremely unsure and troublesome to foretell; retaining current companions and attracting new companions, focus of our income in a small variety of companions, and promotion and assist of our merchandise by our companions; cyber-attacks or different safety breaches; disruptions within the operations of our and our outsourced companions’ pc programs and knowledge facilities; the monetary efficiency of our companions; the sufficiency of our allowance for credit score losses and the accuracy of the assumptions or estimates utilized in getting ready our monetary statements, together with these associated to the CECL accounting steering; increased borrowing prices and antagonistic monetary market situations impacting our funding and liquidity, and any discount in our credit score rankings; our capability to develop our deposits sooner or later; harm to our repute; our capability to securitize our mortgage receivables, incidence of an early amortization of our securitization services, lack of the best to service or subservice our securitized mortgage receivables, and decrease cost charges on our securitized mortgage receivables; adjustments in market rates of interest and the affect of any margin compression; effectiveness of our danger administration processes and procedures, reliance on fashions which can be inaccurate or misinterpreted, our capability to handle our credit score danger; our capability to offset will increase in our prices in retailer share preparations; competitors within the client finance business; our focus within the U.S. client credit score market; our capability to efficiently develop and commercialize new or enhanced services and products; our capability to appreciate the worth of acquisitions and strategic investments; reductions in interchange charges; fraudulent exercise; failure of third events to supply varied providers which might be vital to our operations; worldwide dangers and compliance and regulatory dangers and prices related to worldwide operations; alleged infringement of mental property rights of others and our capability to guard our mental property; litigation and regulatory actions; our capability to draw, retain and inspire key officers and staff; tax laws initiatives or challenges to our tax positions and/or interpretations, and state gross sales tax guidelines and laws; regulation, supervision, examination and enforcement of our business by governmental authorities, the affect of the Dodd-Frank Wall Street Reform and Consumer Protection Act and different legislative and regulatory developments and the affect of the Consumer Financial Protection Bureau’s regulation of our business; affect of capital adequacy guidelines and liquidity necessities; restrictions that restrict our capability to pay dividends and repurchase our frequent inventory, and restrictions that restrict the Bank’s capability to pay dividends to us; laws referring to privateness, info safety and knowledge safety; use of third-party distributors and ongoing third-party business relationships; and failure to adjust to anti-money laundering and anti-terrorism financing legal guidelines.

CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING STATEMENTS

For the explanations described above, we warning you towards counting on any forward-looking statements, which must also be learn along side the opposite cautionary statements which might be included elsewhere on this information launch and in our public filings, together with underneath the heading “Risk Factors” within the Company’s Annual Report on Form 10-Okay for the fiscal 12 months ended December 31, 2022, as filed on February 9, 2023. You mustn’t contemplate any record of such components to be an exhaustive assertion of all of the dangers, uncertainties, or probably inaccurate assumptions that would trigger our present expectations or beliefs to vary. Further, any forward-looking assertion speaks solely as of the date on which it’s made, and we undertake no obligation to update or revise any forward-looking assertion to mirror occasions or circumstances after the date on which the assertion is made or to mirror the incidence of unanticipated occasions, besides as in any other case could also be required by legislation.

NON-GAAP MEASURES

The info offered herein consists of measures we discuss with as “tangible frequent fairness,” and sure “CECL totally phased-in” capital measures, which aren’t ready in accordance with U.S. usually accepted accounting rules (“GAAP”). For a reconciliation of those non-GAAP measures to essentially the most instantly comparable GAAP measures, please see the detailed monetary tables and knowledge that comply with. For an announcement relating to the usefulness of those measures to traders, please see the Company’s Current Report on Form 8-Okay filed with the SEC at the moment.

SYNCHRONY FINANCIAL

FINANCIAL SUMMARY

(unaudited, in thousands and thousands, besides per share statistics)

Quarter Ended

Nine Months Ended

Sep 30,

Jun 30,

Mar 31,

Dec 31,

Sep 30,

3Q’23 vs. 3Q’22

Sep 30,

Sep 30,

YTD’23 vs. YTD’22

2023

2023

2023

2022

2022

2023

2022

EARNINGS

Net curiosity earnings

$

4,362

$

4,120

$

4,051

$

4,106

$

3,928

$

434

11.0 %

$

12,533

$

11,519

$

1,014

8.8 %

Retailer share preparations

(979)

(887)

(917)

(1,043)

(1,057)

78

(7.4)%

(2,783)

(3,288)

505

(15.4)%

Provision for credit score losses

1,488

1,383

1,290

1,201

929

559

60.2 %

4,161

2,174

1,987

91.4 %

Net curiosity earnings, after retailer share preparations and provision for credit score

1,895

1,850

1,844

1,862

1,942

(47)

(2.4)%

5,589

6,057

(468)

(7.7)%

losses

Other earnings

92

61

65

30

44

48

109.1 %

218

350

(132)

(37.7)%

Other expense

1,154

1,169

1,119

1,151

1,064

90

8.5 %

3,442

3,186

256

8.0 %

Earnings earlier than provision for earnings taxes

833

742

790

741

922

(89)

(9.7)%

2,365

3,221

(856)

(26.6)%

Provision for earnings taxes

205

173

189

164

219

(14)

(6.4)%

567

782

(215)

(27.5)%

Net earnings

$

628

$

569

$

601

$

577

$

703

$

(75)

(10.7)%

$

1,798

$

2,439

$

(641)

(26.3)%

Net earnings available to frequent stockholders

$

618

$

559

$

590

$

567

$

692

$

(74)

(10.7)%

$

1,767

$

2,407

$

(640)

(26.6)%

COMMON SHARE STATISTICS

Basic EPS

$

1.49

$

1.32

$

1.36

$

1.27

$

1.48

$

0.01

0.7 %

$

4.16

$

4.89

$

(0.73)

(14.9)%

Diluted EPS

$

1.48

$

1.32

$

1.35

$

1.26

$

1.47

$

0.01

0.7 %

$

4.14

$

4.86

$

(0.72)

(14.8)%

Dividend declared per share

$

0.25

$

0.23

$

0.23

$

0.23

$

0.23

$

0.02

8.7 %

$

0.71

$

0.67

$

0.04

6.0 %

Common inventory value

$

30.57

$

33.92

$

29.08

$

32.86

$

28.19

$

2.38

8.4 %

$

30.57

$

28.19

$

2.38

8.4 %

Book worth per share

$

31.50

$

30.25

$

29.08

$

27.70

$

26.76

$

4.74

17.7 %

$

31.50

$

26.76

$

4.74

17.7 %

Tangible frequent fairness per share(1)

$

26.00

$

24.67

$

23.48

$

22.24

$

22.10

$

3.90

17.6 %

$

26.00

$

22.10

$

3.90

17.6 %

Beginning frequent shares excellent

418.1

428.4

438.2

458.9

487.8

(69.7)

(14.3)%

438.2

526.8

(88.6)

(16.8)%

Issuance of frequent shares

–

–

–

–

–

–

NM

–

–

–

– %

Stock-based compensation

0.2

0.2

1.5

0.1

0.4

(0.2)

(50.0)%

1.9

2.0

(0.1)

(5.0)%

Shares repurchased

(4.5)

(10.5)

(11.3)

(20.8)

(29.3)

24.8

(84.6)%

(26.3)

(69.9)

43.6

(62.4)%

Ending frequent shares excellent

413.8

418.1

428.4

438.2

458.9

(45.1)

(9.8)%

413.8

458.9

(45.1)

(9.8)%

Weighted common frequent shares excellent

416.0

422.7

434.4

445.8

468.5

(52.5)

(11.2)%

424.3

492.1

(67.8)

(13.8)%

Weighted common frequent shares excellent (totally diluted)

418.4

424.2

437.2

448.9

470.7

(52.3)

(11.1)%

426.5

495.0

(68.5)

(13.8)%

(1) Tangible Common Equity (“TCE”) is a non-GAAP measure. For corresponding reconciliation of TCE to a GAAP monetary measure, see Reconciliation of Non-GAAP Measures and Calculations of Regulatory Measures.

SYNCHRONY FINANCIAL

SELECTED METRICS

(unaudited, $ in thousands and thousands)

Quarter Ended

Nine Months Ended

Sep 30,

Jun 30,

Mar 31,

Dec 31,

Sep 30,

3Q’23 vs. 3Q’22

Sep 30,

Sep 30,

YTD’23 vs. YTD’22

PERFORMANCE METRICS

2023

2023

2023

2022

2022

2023

2022

Return on property(1)

2.3 %

2.1 %

2.3 %

2.2 %

2.8 %

(0.5)%

2.2 %

3.4 %

(1.2)%

Return on fairness(2)

18.1 %

17.0 %

18.2 %

17.5 %

21.1 %

(3.0)%

17.8 %

24.2 %

(6.4)%

Return on tangible frequent fairness(3)

22.9 %

21.7 %

23.2 %

22.1 %

26.6 %

(3.7)%

22.6 %

30.6 %

(8.0)%

Net curiosity margin(4)

15.36 %

14.94 %

15.22 %

15.58 %

15.52 %

(0.16)%

15.17 %

15.64 %

(0.47)%

Efficiency ratio(5)

33.2 %

35.5 %

35.0 %

37.2 %

36.5 %

(3.3)%

34.5 %

37.1 %

(2.6)%

Other expense as a % of common mortgage receivables, together with held on the market

4.76 %

5.07 %

5.00 %

5.16 %

5.02 %

(0.26)%

4.94 %

5.11 %

(0.17)%

Effective earnings tax price

24.6 %

23.3 %

23.9 %

22.1 %

23.8 %

0.8 %

24.0 %

24.3 %

(0.3)%

CREDIT QUALITY METRICS

Net charge-offs as a % of common mortgage receivables, together with held on the market

4.60 %

4.75 %

4.49 %

3.48 %

3.00 %

1.60 %

4.62 %

2.82 %

1.80 %

30+ days late as a % of period-end mortgage receivables(6)

4.40 %

3.84 %

3.81 %

3.65 %

3.28 %

1.12 %

4.40 %

3.28 %

1.12 %

90+ days late as a % of period-end mortgage receivables(6)

2.06 %

1.77 %

1.87 %

1.69 %

1.43 %

0.63 %

2.06 %

1.43 %

0.63 %

Net charge-offs

$

1,116

$

1,096

$

1,006

$

776

$

635

$

481

75.7 %

$

3,218

$

1,760

$

1,458

82.8 %

Loan receivables delinquent over 30 days(6)

$

4,304

$

3,641

$

3,474

$

3,377

$

2,818

$

1,486

52.7 %

$

4,304

$

2,818

$

1,486

52.7 %

Loan receivables delinquent over 90 days(6)

$

2,020

$

1,677

$

1,705

$

1,562

$

1,232

$

788

64.0 %

$

2,020

$

1,232

$

788

64.0 %

Allowance for credit score losses (period-end)

$

10,176

$

9,804

$

9,517

$

9,527

$

9,102

$

1,074

11.8 %

$

10,176

$

9,102

$

1,074

11.8 %

Allowance protection ratio(7)

10.40 %

10.34 %

10.44 %

10.30 %

10.58 %

(0.18)%

10.40 %

10.58 %

(0.18)%

BUSINESS METRICS

Purchase quantity(8)(9)

$

47,006

$

47,276

$

41,557

$

47,923

$

44,557

$

2,449

5.5 %

$

135,839

$

132,264

$

3,575

2.7 %

Period-end mortgage receivables

$

97,873

$

94,801

$

91,129

$

92,470

$

86,012

$

11,861

13.8 %

$

97,873

$

86,012

$

11,861

13.8 %

Credit playing cards

$

92,078

$

89,299

$

86,113

$

87,630

$

81,254

$

10,824

13.3 %

$

92,078

$

81,254

$

10,824

13.3 %

Consumer installment loans

$

3,784

$

3,548

$

3,204

$

3,056

$

2,945

$

839

28.5 %

$

3,784

$

2,945

$

839

28.5 %

Commercial credit score merchandise

$

1,879

$

1,826

$

1,690

$

1,682

$

1,723

$

156

9.1 %

$

1,879

$

1,723

$

156

9.1 %

Other

$

132

$

128

$

122

$

102

$

90

$

42

46.7 %

$

132

$

90

$

42

46.7 %

Average mortgage receivables, together with held on the market

$

96,230

$

92,489

$

90,815

$

88,436

$

84,038

$

12,192

14.5 %

$

93,198

$

83,404

$

9,794

11.7 %

Period-end lively accounts (in 1000’s)(10)

70,137

70,269

68,589

70,763

66,503

3,634

5.5 %

70,137

66,503

3,634

5.5 %

Average lively accounts (in 1000’s)(9)(10)

70,308

69,517

69,494

68,373

66,266

4,042

6.1 %

69,842

68,517

1,325

1.9 %

LIQUIDITY

Liquid property

Cash and equivalents

$

15,643

$

12,706

$

15,303

$

10,294

$

11,962

$

3,681

30.8 %

$

15,643

$

11,962

$

3,681

30.8 %

Total liquid property

$

17,598

$

16,448

$

18,778

$

14,201

$

16,566

$

1,032

6.2 %

$

17,591

$

16,566

$

1,025

6.2 %

Undrawn credit score services

Undrawn credit score services

$

2,950

$

2,950

$

2,950

$

2,950

$

3,700

$

(750)

(20.3)%

$

2,950

$

3,700

$

(750)

(20.3)%

Total liquid property and undrawn credit score services

$

20,548

$

19,398

$

21,728

$

17,151

$

20,266

$

282

1.4 %

$

20,541

$

20,266

$

275

1.4 %

Liquid property % of whole property

15.58 %

15.13 %

17.41 %

13.58 %

16.44 %

(0.86)%

15.58 %

16.44 %

(0.86)%

Liquid property together with undrawn credit score services % of whole property

18.19 %

17.85 %

20.15 %

16.40 %

20.11 %

(1.92)%

18.19 %

20.11 %

(1.92)%

  1. Return on property represents internet earnings as a share of common whole property.

  2. Return on fairness represents internet earnings as a share of common whole fairness.

  3. Return on tangible frequent fairness represents internet earnings available to frequent stockholders as a share of common tangible frequent fairness. Tangible frequent fairness (“TCE”) is a     non-GAAP measure. For corresponding reconciliation of TCE to a GAAP monetary measure, see Reconciliation of Non-GAAP Measures and Calculations of Regulatory Measures.
  4. Net curiosity margin represents internet curiosity earnings divided by common interest-earning property.
  5. Efficiency ratio represents (i) different expense, divided by (ii) internet curiosity earnings, plus different earnings, much less retailer share preparations.

  6. Based on buyer     statement-end balances extrapolated to the respective period-end date.
  7. Allowance protection ratio represents allowance for credit score losses divided by whole period-end mortgage receivables.
  8. Purchase quantity, or internet credit score gross sales, represents the mixture quantity of expenses incurred on bank cards or different credit score product accounts much less returns through the interval.

  9. Includes exercise and accounts related to mortgage receivables held on the market.

  10. Active accounts signify bank card or installment mortgage accounts on which there was a purchase order, cost or excellent steadiness within the present month.

SYNCHRONY FINANCIAL

STATEMENTS OF EARNINGS

(unaudited, $ in thousands and thousands)

Quarter Ended

Nine Months Ended

Sep 30,

Jun 30,

Mar 31,

Dec 31,

Sep 30,

3Q’23 vs. 3Q’22

Sep 30,

Sep 30,

YTD’23 vs. YTD’22

2023

2023

2023

2022

2022

2023

2022

Interest earnings:

Interest and costs on loans

$

5,151

$

4,812

$

4,616

$

4,576

$

4,258

$

893

21.0 %

$

14,579

$

12,305

$

2,274

18.5 %

Interest on money and debt securities

203

209

170

132

84

119

141.7 %

582

133

449

NM

Total curiosity earnings

5,354

5,021

4,786

4,708

4,342

1,012

23.3 %

15,161

12,438

2,723

21.9 %

Interest expense:

Interest on deposits

800

717

557

441

280

520

185.7 %

2,074

567

1,507

265.8 %

Interest on borrowings of consolidated securitization entities

86

78

77

69

54

32

59.3 %

241

127

114

89.8 %

Interest on senior unsecured notes

106

106

101

92

80

26

32.5 %

313

225

88

39.1 %

Total curiosity expense

992

901

735

602

414

578

139.6 %

2,628

919

1,709

186.0 %

Net curiosity earnings

4,362

4,120

4,051

4,106

3,928

434

11.0 %

12,533

11,519

1,014

8.8 %

Retailer share preparations

(979)

(887)

(917)

(1,043)

(1,057)

78

(7.4)%

(2,783)

(3,288)

505

(15.4)%

Provision for credit score losses

1,488

1,383

1,290

1,201

929

559

60.2 %

4,161

2,174

1,987

91.4 %

Net curiosity earnings, after retailer share preparations

1,895

1,850

1,844

1,862

1,942

(47)

(2.4)%

5,589

6,057

(468)

(7.7)%

and provision for credit score losses

Other earnings:

Interchange income

267

262

232

251

238

29

12.2 %

761

731

30

4.1 %

Debt cancellation charges

131

125

115

102

103

28

27.2 %

371

285

86

30.2 %

Loyalty applications

(358)

(345)

(298)

(351)

(326)

(32)

9.8 %

(1,001)

(906)

(95)

10.5 %

Other

52

19

16

28

29

23

79.3 %

87

240

(153)

(63.8)%

Total different earnings

92

61

65

30

44

48

109.1 %

218

350

(132)

(37.7)%

Other expense:

Employee prices

444

451

451

459

416

28

6.7 %

1,346

1,222

124

10.1 %

Professional charges

219

209

186

233

204

15

7.4 %

614

599

15

2.5 %

Marketing and business growth

125

133

131

121

115

10

8.7 %

389

366

23

6.3 %

Information processing

177

179

166

165

150

27

18.0 %

522

458

64

14.0 %

Other

189

197

185

173

179

10

5.6 %

571

541

30

5.5 %

Total different expense

1,154

1,169

1,119

1,151

1,064

90

8.5 %

3,442

3,186

256

8.0 %

Earnings earlier than provision for earnings taxes

833

742

790

741

922

(89)

(9.7)%

2,365

3,221

(856)

(26.6)%

Provision for earnings taxes

205

173

189

164

219

(14)

(6.4)%

567

782

(215)

(27.5)%

Net earnings

$

628

$

569

$

601

$

577

$

703

$

(75)

(10.7)%

$

1,798

$

2,439

$

(641)

(26.3)%

Net earnings available to frequent stockholders

$

618

$

559

$

590

$

567

$

692

$

(74)

(10.7)%

$

1,767

$

2,407

$

(640)

(26.6)%

SYNCHRONY FINANCIAL

STATEMENTS OF FINANCIAL POSITION

(unaudited, $ in thousands and thousands)

Quarter Ended

Sep 30,

Jun 30,

Mar 31,

Dec 31,

Sep 30,

Sep 30, 2023 vs.

2023

2023

2023

2022

2022

Sep 30, 2022

Assets

Cash and equivalents

$

15,643

$

12,706

$

15,303

$

10,294

$

11,962

$

3,681

30.8 %

Debt securities

2,882

4,294

4,008

4,879

5,082

(2,200)

(43.3)%

Loan receivables:

Unsecuritized loans held for funding

78,470

75,532

72,079

72,638

67,651

10,819

16.0 %

Restricted loans of consolidated securitization entities

19,403

19,269

19,050

19,832

18,361

1,042

5.7

%

Total mortgage receivables

97,873

94,801

91,129

92,470

86,012

11,861

13.8 %

Less: Allowance for credit score losses

(10,176)

(9,804)

(9,517)

(9,527)

(9,102)

(1,074)

11.8

%

Loan receivables, internet

87,697

84,997

81,612

82,943

76,910

10,787

14.0 %

Goodwill

1,105

1,105

1,105

1,105

1,105

–

– %

Intangible property, internet

1,169

1,226

1,297

1,287

1,033

136

13.2

%

Other property

4,443

4,369

4,528

4,056

4,674

(231)

(4.9)%

Total property

$

112,939

$

108,697

$

107,853

$

104,564

$

100,766

$

12,173

12.1 %

Liabilities and Equity

Deposits:

Interest-bearing deposit accounts

$

77,669

$

75,344

$

74,008

$

71,336

$

68,032

$

9,637

14.2 %

Non-interest-bearing deposit accounts

397

421

417

399

372

25

6.7 %

Total deposits

78,066

75,765

74,425

71,735

68,404

9,662

14.1 %

Borrowings:

Borrowings of consolidated securitization entities

6,519

5,522

6,228

6,227

6,360

159

2.5

%

Senior and Subordinated unsecured notes

8,712

8,709

8,706

7,964

7,961

751

9.4 %

Total borrowings

15,231

14,231

14,934

14,191

14,321

910

6.4 %

Accrued bills and different liabilities

5,875

5,321

5,301

5,765

5,029

846

16.8

%

Total liabilities

99,172

95,317

94,660

91,691

87,754

11,418

13.0

%

Equity:

Preferred inventory

734

734

734

734

734

–

– %

Common inventory

1

1

1

1

1

–

– %

Additional paid-in capital

9,750

9,727

9,705

9,718

9,685

65

0.7

%

Retained earnings

18,338

17,828

17,369

16,716

16,252

2,086

12.8 %

Accumulated different complete earnings (loss)

(96)

(96)

(102)

(125)

(187)

91

(48.7)%

Treasury inventory

(14,960)

(14,814)

(14,514)

(14,171)

(13,473)

(1,487)

11.0

%

Total fairness

13,767

13,380

13,193

12,873

13,012

755

5.8 %

Total liabilities and fairness

$

112,939

$

108,697

$

107,853

$

104,564

$

100,766

$

12,173

12.1 %

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Synchrony Financial Inc. printed this content material on 24 October 2023 and is solely accountable for the knowledge contained therein. Distributed by Public, unedited and unaltered, on 24 October 2023 10:13:40 UTC.