Synchrony Financial (SYF) Goldman Sachs U.S. Financial Services Conference summary

Business performance and strategic initiatives

• Achieved strong partner renewals, including Walmart, and managed credit effectively, supporting earnings growth into 2026.

• Launched new products such as Walmart OnePay, Amazon Pay Later, and a physical card with PayPal, with early positive results expected to drive future growth.

• Health and Wellness and Digital platforms are positioned for outsized growth, with significant investments and integration into 40 ISVs.

• Diversified Value platform is bolstered by Walmart OnePay, the fastest-growing program in company history.

• Lifestyle and Home & Auto platforms are recovering, with expectations for continued improvement as consumer confidence returns.

Consumer trends and credit performance

• Purchase volume turned positive in Q3, with improvements in both average transaction value and frequency across all credit segments.

• Super prime segment benefits from stock market gains and higher consumer confidence, expected to continue into 2026.

• Holiday sales showed strong early growth, driven by promotions, with consistent trends across platforms and increased partner penetration.

• Credit delinquencies remain below seasonal expectations, with loan growth showing signs of improvement and payment rates higher than usual.

• Credit actions are being unwound in phases, focusing first on known customers and gradually broadening origination risk over the next year.

Competitive positioning and partner renewals

• Business development pipeline includes both traditional and non-traditional opportunities, such as ISV integrations and multi-source financing platforms.

• Competitive environment remains rational, with the company winning deals based on product capabilities and advanced underwriting (Prism platform).

• Most major partners are renewed through 2027 or later, reducing risk and allowing focus on growth rather than renewals.

• Adjustments to PPP Cs were minor and have not negatively impacted partner relationships or consumer adoption.

• Ongoing evaluation of value propositions and pricing tweaks is now part of normal business operations.