Synchrony Financial (SYF) investor relations material

Executive summary

• Achieved 8% year-over-year growth in purchase volume, reaching a record $49.8 billion, with co-branded cards up 23% and loan receivables up 2% to $102.2 billion; average active accounts stable at 68.3 million.

• Net earnings for Q2 2026 were $885 million ($2.59 per diluted share), down 8% year-over-year, with strong customer engagement and new account growth.

• Strategic initiatives included over 15 new or renewed partnerships, acquisition of the MyLowe's Pro Rewards American Express Card portfolio, and program refreshes.

Financial highlights

• Net interest income rose 2% to $4.61 billion, driven by higher average loan receivables and lower interest expense; net interest margin increased 30 basis points year-over-year to 15.08%.

• Provision for credit losses increased $55 million (5%) to $1.2 billion, mainly due to a smaller reserve release compared to last year.

• Efficiency ratio rose to 35.8%, up 170 basis points year-over-year, reflecting higher expenses and RSA impact.

• Book value per share increased to $46.67, and tangible book value per share to $42.01.

• Return on assets was 2.9%, down from 3.2% a year ago; return on tangible common equity at 25.2%.

Outlook and guidance

• FY 2026 diluted EPS guidance updated to $9.25–$9.50, with mid-single-digit loan receivables growth projected and net charge-off rate expected to remain below 5.5%.

• Receivables growth anticipated to accelerate in the second half of 2026; payment rate expected to remain elevated.

• Other expenses in the second half of the year projected to be consistent with the first half.