Synchrony Financial (SYF) investor relations material

Third quarter performance and consumer trends

• High single-digit purchase volume growth continued, with super prime and prime cohorts showing strength while non-prime lags slightly but remains stable.

• Consumers remain resilient in discretionary spending despite affordability pressures, though some big-ticket categories like outdoor, health, and furniture show mixed results.

• Payment and spending behaviors are consistent with earlier trends, indicating stable consumer health.

Credit quality and risk management

• Delinquency entry rates are better than pre-pandemic years, with net charge-offs below the long-term 5.5%-6% framework.

• Credit aperture has been widened idiosyncratically, focusing on specific products and channels rather than broad-based changes.

• Over 20 million new accounts are expected to be originated this year, with responsible consumer behavior supporting credit quality.

• Reserve ratios are stable, with a medium-term downward bias possible if macro conditions improve.

Growth outlook and strategic initiatives

• Loan growth is guided to mid-single digits by year-end, supported by new and expanded partnerships with major retailers and relaunches in health and wellness.

• Digital and diversified value platforms, including Walmart, Amazon, and PayPal, are driving growth, with home and auto expected to accelerate in the second half.

• Long-term growth target of 7%-10% remains unchanged, with focus on customer engagement, multi-product offerings, and platform diversification.