Synchrony Financial (SYF) investor relations material

Executive summary

• Net earnings for Q2 2026 were $885 million ($2.59 per diluted share), down 8% year-over-year, with record purchase volume of $49.8 billion, up 8% year-over-year, and loan receivables up 2% to $102.2 billion despite elevated payment rates.

• Customer engagement remained strong, with new accounts and higher spend per account driving all-time high purchase volume across five sales platforms, led by Diversified & Value and Digital.

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

Financial highlights

• Net interest income rose 2% to $4.6 billion, with net interest margin up 30 bps to 15.08% year-over-year.

• Provision for credit losses increased $55 million to $1.2 billion, mainly due to a smaller reserve release and lower net charge-offs.

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

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

• Return on assets was 2.9%, down from 3.2% a year ago; return on equity was 21.4%, down from 23.1%.

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 rates expected to remain elevated.

• Management remains focused on credit discipline, strategic initiatives, and returning significant capital to shareholders.