Synchrony Financial (SYF) investor relations material

Executive summary

• Q3 net earnings were $892M, or $2.68 diluted EPS, versus $1.077B and $2.86 a year earlier; higher net interest income was outweighed by increased credit provisions, retailer shares and operating expenses.

• Purchase volume rose 8.0% to $49.7B and period-end loan receivables increased 3.2% to $103.3B; average active accounts were 68.3M.

• Net charge-offs and delinquencies improved YoY, with credit performance described as consistent with typical seasonality.

Financial highlights

• Net interest income increased 1.9% to $4.809B; interest expense fell 3.2% to $979M, partly offsetting a 7.0% rise in retailer share arrangements to $1.096B.

• Provision for credit losses rose 10.5% 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 expense increased 9.9% to $1.371B, primarily on operational losses, technology investment and marketing; other income fell 17.3% to $105M, mainly due to higher loyalty costs.

• Net earnings available to common stockholders fell 18% to $864M; diluted EPS was $2.68 versus $2.86 in Q3 2025.

• 9M net earnings were $2.582B and diluted EPS was $7.52, versus $2.801B and $7.22 in 2025.

Outlook and guidance

• FY26 diluted EPS outlook is ~$9.50; ending loan receivables growth is expected in the mid-single digits, with net charge-offs below 5.5%.

• FY26 assumptions include stable macro conditions, no significant inflation change, and no additional product, pricing, policy or broad-based credit refinements.

• Net interest income is expected to grow as product, pricing and policy changes lift interest and fees and funding costs decline, partly offset by lower late-fee incidence and new-account acceleration.

• Strong purchase-volume growth is expected to continue; payment rates are expected to remain elevated, with credit performance relatively stable and following normal seasonality.

• Q4 NIM is expected to increase sequentially; 2027 double-digit EPS growth framework cited NII growth, portfolio seasoning and capital returns, but no 2027 guidance was issued.