Synchrony Financial (SYF) investor relations material

Executive summary

• Q3 net earnings were $892M, or $2.68 diluted EPS, down 17% and 6% YoY, respectively; higher credit provisions and operating expenses weighed on earnings.

• Purchase volume rose 8% to $49.7B and ending loan receivables increased 3% to $103.3B; average active accounts were flat at 68.3M.

• Management cited broad-based growth, improved credit performance and continued digital-commerce investment as drivers of risk-adjusted returns.

Financial highlights

• Net interest income increased 2% to $4.809B, supported by higher average receivables and lower funding costs; interest expense fell 3% to $979M.

• Provision for credit losses rose 10% to $1.266B, including a $30M reserve build versus a $152M release a year earlier; $62M lower net charge-offs partly offset the increase.

• Other income declined $22M to $105M, primarily on higher loyalty costs; other expense rose 10% to $1.371B on operational losses, technology investment and marketing.

• Pre-tax earnings fell 17% to $1.181B; net earnings available to common stockholders decreased 18% to $864M.

• Retailer share arrangements increased $72M, or 7%, to $1.1B, primarily reflecting program performance.

Outlook and guidance

• FY26 diluted EPS is expected at ~$9.50; year-end receivables growth is expected in the mid-single digits and net charge-offs below 5.5%, excluding qualitative-overlay impacts.

• FY26 net interest income is expected to increase, with growth from product, pricing and policy changes and lower funding costs, partly offset by lower late-fee incidence and new-account acceleration.

• Credit performance is expected to remain relatively stable and follow normal seasonality; payment rates are expected to remain elevated.

• Full-year retailer share arrangements are expected within the 4.0%–4.5% target range; Q4 other expense dollars are expected generally in line with Q3.

• Q4 NIM is expected to rise sequentially; management described a framework for double-digit 2027 EPS growth but issued no 2027 guidance.