Synchrony Financial (SYF) investor relations material

Executive summary

• Achieved record first quarter purchase volume of $43 billion, up 6% year-over-year, with growth across all five platforms and strong customer engagement driving higher spend per account.

• Net earnings rose 6% year-over-year to $805 million, with diluted EPS up 20% to $2.27, and co-branded credit cards accounting for 51% of purchase volume, up 20% year-over-year.

• Maintained high customer engagement with 69 million average active accounts and $100 billion in loan receivables.

• Board approved a new $6.5 billion share repurchase program with no expiration date and a 13% increase in quarterly dividend to $0.34 per share starting Q3 2026.

• Recognized as the number one best company to work for in the U.S. by Fortune and Great Place to Work in 2026.

Financial highlights

• Net interest income rose 4% to $4.64 billion, driven by higher loan receivables yield and lower interest expense.

• Net interest margin increased 76 basis points to 15.5% year-over-year.

• Provision for credit losses decreased 10% to $1.3 billion, reflecting a $242 million drop in net charge-offs.

• Efficiency ratio was 35.6%, up 220 basis points due to higher expenses and improved program performance.

• Book value per share rose to $45.29, and tangible book value per share reached $37.62.

Outlook and guidance

• FY'26 diluted EPS guidance maintained at $9.10 to $9.50, with mid-single-digit growth in ending loan receivables and net charge-offs projected below 5.5%.

• Receivables growth expected to accelerate in the second half of 2026; purchase volume growth to remain strong.

• Other expense growth expected to align with loan receivables growth, maintaining operating discipline while investing in technology.

• Payment rate projected to stay elevated; net interest income growth to continue, supported by product, pricing, and policy changes.

• Focus remains on deepening customer relationships, expanding reach, and executing strategic priorities for continued growth.