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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549 
FORM 8-K
 
 
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d)
OF THE SECURITIES EXCHANGE ACT OF 1934
July 17, 2024
Date of Report
(Date of earliest event reported) 
 
SYNCHRONY FINANCIAL
(Exact name of registrant as specified in its charter) 
 
Delaware 001-36560 51-0483352
(State or other jurisdiction
of incorporation)		 (Commission
File Number)		 (I.R.S. Employer
Identification No.)

777 Long Ridge Road 
Stamford,Connecticut06902
(Address of principal executive offices) (Zip Code)
(203) 585-2400
(Registrant’s telephone number, including area code)
N/A
(Former name or former address, if changed since last report)
 
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions: 
☐Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
☐Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
☐Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
☐Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
Securities Registered Pursuant to Section 12(b) of the Act:


Title of each classTrading Symbol(s)Name of each exchange on which registered
Common stock, par value $0.001 per shareSYFNew York Stock Exchange
Depositary Shares Each Representing a 1/40th Interest in a Share of 5.625% Fixed Rate Non-Cumulative Perpetual Preferred Stock, Series ASYFPrANew York Stock Exchange
Depositary Shares Each Representing a 1/40th Interest in a Share of 8.250% Fixed Rate Reset Non-Cumulative Perpetual Preferred Stock, Series BSYFPrBNew York Stock Exchange
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.    ¨


Item 2.02    Results of Operations and Financial Condition.
On July 17, 2024, Synchrony Financial (the “Company”) issued a press release setting forth the Company’s second quarter 2024 earnings. A copy of the Company’s press release is being furnished as Exhibit 99.1 and hereby incorporated by reference. The information furnished pursuant to this Item 2.02, including Exhibits, shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934 (the “Exchange Act”) or otherwise subject to the liabilities under that Section and shall not be deemed to be incorporated by reference into any filing of the Company under the Securities Act of 1933 or the Exchange Act.
 
Item 9.01    Financial Statements and Exhibits.
(d) Exhibits
The following exhibits are being furnished as part of this report:



SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

SYNCHRONY FINANCIAL
Date: July 17, 2024
By:
/s/ Jonathan Mothner
Name:
Jonathan Mothner
Title:
Executive Vice President, Chief Risk and Legal Officer



Exhibit 99.1
For Immediate Release
Synchrony Financial (NYSE: SYF)
July 17, 2024
synchonylogoa.jpg
SECOND QUARTER 2024 RESULTS AND KEY METRICS
2.2%

Return on
Assets
12.6%

CET1
Ratio

$400M

Capital
Returned
CEO COMMENTARY
“Synchrony’s second quarter results highlight our sustained, high level of execution, as we lean on our core strengths to deliver resilient earnings while positioning our business for future growth,” said Brian Doubles, Synchrony’s President and Chief Executive Officer.

“We continued to leverage our proprietary data and insights, innovative technological capabilities, and diversified product suite to add new partnerships, expand our distribution networks and deliver enhanced digital wallet capabilities.

“In addition, Synchrony’s differentiated underwriting and credit management tools continued to empower our dynamic responses to evolving consumer trends – strengthening our ability to deliver consistent, risk-adjusted returns for our many stakeholders.

“We remain focused on driving greater access, flexibility and utility through the financial solutions we deliver for the customers, partners, providers and small businesses we serve and, in so doing, are further embedding Synchrony in the heart of American commerce.”
$102.3B

Loan Receivables
a2021-07x09_14x35x25a.jpg
Net Earnings of $643 Million or $1.55 per Diluted Share
a2021-07x09_14x35x57a.jpg
Continued Strong Receivables Growth
imagea.jpg
Returned $400 Million of Capital to Shareholders, including $300 Million of Share Repurchases
STAMFORD, Conn. – Synchrony Financial (NYSE: SYF) today announced second quarter 2024 net earnings of $643 million, or $1.55 per diluted share, compared to $569 million, or $1.32 per diluted share in the second quarter 2023.
KEY OPERATING & FINANCIAL METRICS*
PERFORMANCE REFLECTS DIFFERENTIATED BUSINESS MODEL
•Purchase volume decreased 1% to $46.8 billion
•Loan receivables increased 8% to $102.3 billion
•Average active accounts increased 2% to 71.0 million
•New accounts decreased 14% to 5.1 million
•Net interest margin decreased 48 basis points to 14.46%
•Efficiency ratio decreased 380 basis points to 31.7%
•Return on assets increased 10 basis points to 2.2%
•Return on equity decreased 30 basis points to 16.7%
•Return on tangible common equity** decreased 40 basis points to 20.2%


CFO COMMENTARY
BUSINESS AND FINANCIAL RESULTS FOR
THE SECOND QUARTER OF 2024*
“Synchrony again demonstrated the resilience of our business through an evolving environment during the second quarter,” said Brian Wenzel, Synchrony’s Executive Vice President and Chief Financial Officer.

"Our diversified portfolio of products and spend categories continued to resonate well with our customers, even as behavior became more selective in the persistent inflationary environment.

“In addition, Synchrony’s disciplined approach to underwriting and credit management is supporting the trajectory of our delinquency performance, while we continue to monitor and take appropriate actions to strengthen our positioning going forward.

“Synchrony’s differentiated model is proving itself through a range of environments, as we build on our track record of resilient growth at strong, risk-adjusted returns.

“Our long history in innovative technology not only empowers our agility, but opens new opportunities to deliver powerful experiences — and through those, create value for our customers, partners and shareholders alike.”

BUSINESS HIGHLIGHTS
CONTINUED TO EXPAND PORTFOLIO, ENHANCE PRODUCTS AND EXTEND REACH
•Added or renewed more than 15 programs, including Virgin Red and Jerome’s Furniture
•Expanded and extended Verizon program, which will include delivering maximum customer value on purchases made at Verizon
•Launched partnership with Installation Made Easy, enabling Floor & Decor cardholders to finance materials and installation through one streamlined process


FINANCIAL HIGHLIGHTS
EARNINGS DRIVEN BY CORE BUSINESS DRIVERS
•Interest and fees on loans increased 10% to $5.3 billion, driven primarily by growth in average loan receivables.
•Net interest income increased $285 million, or 7%, to $4.4 billion, driven by higher interest and fees on loans, partially offset by an increase in interest expense from higher benchmark rates and higher interest-bearing liabilities.
•Retailer share arrangements decreased $77 million, or 9%, to $810 million, reflecting higher net charge-offs partially offset by higher net interest income.
•Provision for credit losses increased $308 million to $1.7 billion, driven by higher net charge-offs partially offset by a lower reserve build.
•Other income increased $56 million to $117 million, primarily reflecting a $51 million gain related to an exchange of Visa B-1 shares, in addition to the initial impact of product, pricing and policy change (“PPPC”) related fees, partially offset by impact of Pets Best disposition.
•Other expense increased $8 million, or 1%, to $1.2 billion, primarily driven by technology investments, preparatory expenses related to the Late Fee rule change, and servicing costs related to newly acquired business, partially offset by lower operational losses and cost discipline resulting in lower employee and marketing costs.
•Net earnings increased 13% to $643 million, compared to $569 million.
CREDIT QUALITY
  DELINQUENCY TRENDING IN LINE WITH SEASONALITY
•Loans 30+ days past due as a percentage of total period-end loan receivables were 4.47% compared to 3.84% in the prior year, an increase of 63 basis points and approximately 19 basis points above the average of the second quarters in 2017 through 2019.
•Net charge-offs as a percentage of total average loan receivables were 6.42% compared to 4.75% in the prior year, an increase of 167 basis points, and 62 basis points above the average of the second quarters in 2017 through 2019.
•The allowance for credit losses as a percentage of total period-end loan receivables was 10.74%, compared to 10.72% in the first quarter 2024.


SALES PLATFORM HIGHLIGHTS
DIVERSITY ACROSS OUR PLATFORMS CONTINUES TO PROVIDE RESILIENCE
•Home & Auto purchase volume decreased 3%, as the strong growth in Home Specialty and the impact of the Ally Lending acquisition was more than offset by a combination of lower consumer traffic, fewer large ticket purchases, and the impact of credit actions. Period-end loan receivables increased 6%, reflecting the impacts of the Ally Lending acquisition and lower payment rates. Interest and fees on loans were up 11%, primarily driven by higher average loan receivables and higher benchmark rates. Average active accounts increased 2%.
•Digital purchase volume decreased 1%, as continued customer engagement through growth in average active accounts was more than offset by lower spend per account and the impact of credit actions. Period-end loan receivables increased 8%, driven primarily by lower payment rates. Interest and fees on loans increased 9%, reflecting the impacts of higher average loan receivables, lower payment rate, and higher benchmark rates. Average active accounts increased 2%.
•Diversified & Value purchase volume was flat versus prior year, as growth in out-of-partner spend was offset by the impact of credit actions. Period-end loan receivables increased 6%, driven primarily by lower payment rates. Interest and fees on loans increased 7%, driven by the impacts of higher average loan receivables, lower payment rate, and higher benchmark rates. Average active accounts remained flat.
•Health & Wellness purchase volume increased 2%, as growth in Pet was partially offset by lower spend in Vision and the impact of credit actions. Period-end loan receivables increased 15%, driven by continued higher purchase volume and lower payment rates. Interest and fees on loans increased 16%, reflecting the impacts of higher average loan receivables and lower payment rate. Average active accounts increased 10%.
•Lifestyle purchase volume decreased 3%, reflecting the impact of lower transaction values and credit actions. Period-end loan receivables increased 9%, driven primarily by lower payment rates. Interest and fees on loans increased 11%, driven by the impacts of higher average loan receivables, lower payment rate and higher benchmark rates. Average active accounts increased 5%.
BALANCE SHEET, LIQUIDITY & CAPITAL
FUNDING, CAPITAL & LIQUIDITY REMAIN ROBUST
•Loan receivables of $102.3 billion increased 8%; purchase volume decreased 1% and average active accounts increased 2%.
•Deposits increased $7.3 billion, or 10%, to $83.1 billion and comprised 84% of funding.
•Total liquid assets and undrawn credit facilities were $23.0 billion, or 19.1% of total assets.
•The company returned $400 million in capital to shareholders, including $300 million of share repurchases and $100 million of common stock dividends.
•As of June 30, 2024 the Company had a total remaining share repurchase authorization of $1 billion.
•The estimated Common Equity Tier 1 ratio was 12.6% compared to 12.8%, and the estimated Tier 1 Capital ratio was 13.8% compared to 13.6% in the prior year.

         * All comparisons are for the second quarter of 2024 compared to the second quarter of 2023, unless otherwise noted.
** Tangible common equity is a non-GAAP financial measure. See non-GAAP reconciliation in the financial tables.


CORRESPONDING FINANCIAL TABLES AND INFORMATION
No representation is made that the information in this news release is complete. Investors are encouraged to review the foregoing summary and discussion of Synchrony Financial's earnings and financial condition in conjunction with the detailed financial tables and information that follow, the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2023, as filed February 8, 2024, and the Company’s forthcoming Quarterly Report on Form 10-Q for the quarter ended June 30, 2024. The detailed financial tables and other information are also available on the Investor Relations page of the Company’s website at www.investors.synchronyfinancial.com. This information is also furnished in a Current Report on Form 8-K filed with the SEC today.



CONFERENCE CALL AND WEBCAST
On Wednesday, July 17, 2024, at 8:00 a.m. Eastern Time, Brian Doubles, President and Chief Executive Officer, and Brian Wenzel Sr., Executive Vice President and Chief Financial Officer, will host a conference call to review the financial results and outlook for certain business drivers. The conference call can be accessed via an audio webcast through the Investor Relations page on the Synchrony Financial corporate website, www.investors.synchrony.com, under Events and Presentations. A replay will also be available on the website.


ABOUT SYNCHRONY FINANCIAL
Synchrony (NYSE: SYF) is a premier consumer financial services company delivering one of the industry’s most complete digitally-enabled product suites. Our experience, expertise and scale encompass a broad spectrum of industries including digital, health and wellness, retail, telecommunications, home, auto, outdoor, pet and more. We have an established and diverse group of national and regional retailers, local merchants, manufacturers, buying groups, industry associations and healthcare service providers, which we refer to as our “partners.” We connect our partners and consumers through our dynamic financial ecosystem and provide them with a diverse set of financing solutions and innovative digital capabilities to address their specific needs and deliver seamless, omnichannel experiences. We offer the right financing products to the right customers in their channel of choice.

For more information, visit www.synchrony.com



synchonylogoa.jpg

Investor RelationsMedia Relations
Kathryn MillerLisa Lanspery
(203) 585-6291(203) 585-6143


CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING STATEMENTS
This news release contains certain forward-looking statements as defined in Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, which are subject to the "safe harbor" created by those sections. Forward-looking statements may be identified by words such as "expects," "intends," "anticipates," "plans," "believes," "seeks," "targets," "outlook," "estimates," "will," "should," "may," “aim” or words of similar meaning, but these words are not the exclusive means of identifying forward-looking statements. Forward-looking statements are based on management's current expectations and assumptions, and are subject to inherent uncertainties, risks and changes in circumstances that are difficult to predict. As a result, actual results could differ materially from those indicated in these forward-looking statements. Factors that could cause actual results to differ materially include global political, economic, business, competitive, market, regulatory and other factors and risks, such as: the impact of macroeconomic conditions and whether industry trends we have identified develop as anticipated; retaining existing partners and attracting new partners, concentration of our revenue in a small number of partners, and promotion and support of our products by our partners; cyber-attacks or other security incidents or breaches; disruptions in the operations of our and our outsourced partners' computer systems and data centers; the financial performance of our partners; the Consumer Financial Protection Bureau’s (the “CFPB”) final rule on credit card late fees, including the timing for resolution and outcome of the litigation challenging the final rule, as well as changes to consumer behaviors in response to the final rule, if implemented, and the product, policy and pricing changes that have been or will be implemented to mitigate the impacts of the final rule; the sufficiency of our allowance for credit losses and the accuracy of the assumptions or estimates used in preparing our financial statements, including those related to the CECL accounting guidance; higher borrowing costs and adverse financial market conditions impacting our funding and liquidity, and any reduction in our credit ratings; our ability to grow our deposits in the future; damage to our reputation; our ability to securitize our loan receivables, occurrence of an early amortization of our securitization facilities, loss of the right to service or subservice our securitized loan receivables, and lower payment rates on our securitized loan receivables; changes in market interest rates and the impact of any margin compression; effectiveness of our risk management processes and procedures, reliance on models which may be inaccurate or misinterpreted, and our ability to manage our credit risk; our ability to offset increases in our costs in retailer share arrangements; competition in the consumer finance industry; our concentration in the U.S. consumer credit market; our ability to successfully develop and commercialize new or enhanced products and services; our ability to realize the value of acquisitions, dispositions and strategic investments; reductions in interchange fees; fraudulent activity; failure of third parties to provide various services that are important to our operations; international risks and compliance and regulatory risks and costs associated with international operations; alleged infringement of intellectual property rights of others and our ability to protect our intellectual property; litigation and regulatory actions; our ability to attract, retain and motivate key officers and employees; tax legislation initiatives or challenges to our tax positions and/or interpretations, and state sales tax rules and regulations; regulation, supervision, examination and enforcement of our business by governmental authorities, the impact of the Dodd-Frank Wall Street Reform and Consumer Protection Act and other legislative and regulatory developments and the impact of the CFPB’s regulation of our business, including new requirements and constraints that the Company and the Bank will become subject to as a result of having $100 billion or more in total assets; impact of capital adequacy rules and liquidity requirements; restrictions that limit our ability to pay dividends and repurchase our common stock, and restrictions that limit the Bank’s ability to pay dividends to us; regulations relating to privacy, information security and data protection; use of third-party vendors and ongoing third-party business relationships; and failure to comply with anti-money laundering and anti-terrorism financing laws.



CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING STATEMENTS (Continued)
For the reasons described above, we caution you against relying on any forward-looking statements, which should also be read in conjunction with the other cautionary statements that are included elsewhere in this news release and in our public filings, including under the heading "Risk Factors Relating to our Business" and “Risk Factors Relating to Regulation” in the Company's Annual Report on Form 10-K for the fiscal year ended December 31, 2023, filed on February 8, 2024. You should not consider any list of such factors to be an exhaustive statement of all the risks, uncertainties, or potentially inaccurate assumptions that could cause our current expectations or beliefs to change. Further, any forward-looking statement speaks only as of the date on which it is made, and we undertake no obligation to update or revise any forward-looking statement to reflect events or circumstances after the date on which the statement is made or to reflect the occurrence of unanticipated events, except as otherwise may be required by law.


NON-GAAP MEASURES
The information provided herein includes measures we refer to as “adjusted,” "tangible common equity," and certain “CECL fully phased-in" capital measures, which are not prepared in accordance with U.S. generally accepted accounting principles ("GAAP"). For a reconciliation of these non-GAAP measures to the most directly comparable GAAP measures, please see the detailed financial tables and information that follow. For a statement regarding the usefulness of these measures to investors, please see the Company's Current Report on Form 8-K filed with the SEC today.

Exhibit 99.2
SYNCHRONY FINANCIAL
FINANCIAL SUMMARY
(unaudited, in millions, except per share statistics)
Quarter EndedSix Months Ended
Jun 30,
2024		Mar 31,
2024		Dec 31,
2023		Sep 30,
2023		Jun 30,
2023		2Q'24 vs. 2Q'23Jun 30,
2024		Jun 30,
2023		YTD'24 vs. YTD'23
EARNINGS
Net interest income$4,405 $4,405 $4,466 $4,362 $4,120 $285 6.9 %$8,810  $8,171 $639 7.8 %
Retailer share arrangements(810)(764)(878)(979)(887)77 (8.7)%(1,574)(1,804)230 (12.7)%
Other income117 1,157 71 92 61 56 91.8 %1,274 126 1,148 NM
Net revenue3,712 4,798 3,659 3,475 3,294 418 12.7 %8,510 6,493 2,017 31.1 %
Provision for credit losses1,691 1,884 1,804 1,488 1,383 308 22.3 %3,575 2,673 902 33.7 %
Other expense1,177 1,206 1,316 1,154 1,169 8 0.7 %2,383 2,288 95 4.2 %
Earnings before provision for income taxes844 1,708 539 833 742 102 13.7 %2,552 1,532 1,020 66.6 %
Provision for income taxes201 415 99 205 173 28 16.2 %616 362 254 70.2 %
Net earnings$643 $1,293 $440 $628 $569 $74 13.0 %$1,936 $1,170 $766 65.5 %
Net earnings available to common stockholders$624 $1,282 $429 $618 $559 $65 11.6 %$1,906 $1,149 $757 65.9 %
COMMON SHARE STATISTICS
Basic EPS $1.56 $3.17 $1.04 $1.49 $1.32 $0.24 18.2 %$4.74 $2.74 $2.00 73.0 %
Diluted EPS $1.55 $3.14 $1.03 $1.48 $1.32 $0.23 17.4 %$4.70 $2.73 $1.97 72.2 %
Dividend declared per share$0.25 $0.25 $0.25 $0.25 $0.23 $0.02 8.7 %$0.50 $0.46 $0.04 8.7 %
Common stock price$47.19 $43.12 $38.19 $30.57 $33.92 $13.27 39.1 %$47.19 $33.92 $13.27 39.1 %
Book value per share $36.24 $35.03 $32.36 $31.50 $30.25 $5.99 19.8 %$36.24 $30.25 $5.99 19.8 %
Tangible common equity per share(1)
$31.05 $30.36 $27.59 $27.18 $25.89 $5.16 19.9 %$31.05 $25.89 $5.16 19.9 %
Beginning common shares outstanding401.4 406.9 413.8 418.1 428.4 (27.0)(6.3)%406.9 438.2 (31.3)(7.1)%
Issuance of common shares— — — — — — NM— — — NM
Stock-based compensation0.6 2.0 0.4 0.2 0.2 0.4 200.0 %2.6 1.7 0.9 52.9 %
Shares repurchased(6.9)(7.5)(7.3)(4.5)(10.5)3.6 (34.3)%(14.4)(21.8)7.4 (33.9)%
Ending common shares outstanding395.1 401.4 406.9 413.8 418.1 (23.0)(5.5)%395.1 418.1 (23.0)(5.5)%
Weighted average common shares outstanding 399.3 404.7 411.9 416.0 422.7 (23.4)(5.5)%402.0 418.9 (16.9)(4.0)%
Weighted average common shares outstanding (fully diluted) 402.6 408.2 414.6 418.4 424.2 (21.6)(5.1)%405.4 421.1 (15.7)(3.7)%
(1) Tangible Common Equity ("TCE") is a non-GAAP measure. For corresponding reconciliation of TCE to a GAAP financial measure, see Reconciliation of Non-GAAP Measures and Calculations of Regulatory Measures.
1

SYNCHRONY FINANCIAL
SELECTED METRICS
(unaudited, $ in millions)
Quarter EndedSix Months Ended
Jun 30,
2024		Mar 31,
2024		Dec 31,
2023		Sep 30,
2023		Jun 30,
2023		2Q'24 vs. 2Q'23Jun 30,
2024		Jun 30,
2023		YTD'24 vs. YTD'23
PERFORMANCE METRICS
Return on assets(1)
2.2 %4.4 %1.5 %2.3 %2.1 %0.1 %3.3 %2.2 %1.1 %
Return on equity(2)
16.7 %35.6 %12.4 %18.1 %17.0 %(0.3)%25.8 %17.6 %8.2 %
Return on tangible common equity(3)
20.2 %43.6 %14.7 %21.9 %20.6 %(0.4)%31.6 %22.5 %9.1 %
Net interest margin(4)
14.46 %14.55 %15.10 %15.36 %14.94 %(0.48)%14.50 %15.08 %(0.58)%
Net revenue as a % of average loan receivables, including held for sale14.71 %19.11 %14.56 %14.33 %14.29 %0.42 %16.91 %14.29 %2.6 %
Efficiency ratio(5)
31.7 %25.1 %36.0 %33.2 %35.5 %(3.8)%28.0 %35.2 %(7.2)%
Other expense as a % of average loan receivables, including held for sale4.66 %4.80 %5.24 %4.76 %5.07 %(0.41)%4.73 %5.03 %(0.30)%
Effective income tax rate23.8 %24.3 %18.4 %24.6 %23.3 %0.5 %24.1 %23.6 %0.5 %
CREDIT QUALITY METRICS
Net charge-offs as a % of average loan receivables, including held for sale6.42 %6.31 %5.58 %4.60 %4.75 %1.67 %6.37 %4.62 %1.75 %
30+ days past due as a % of period-end loan receivables(6)
4.47 %4.74 %4.74 %4.40 %3.84 %0.63 %4.47 %3.84 %0.63 %
90+ days past due as a % of period-end loan receivables(6)
2.19 %2.42 %2.28 %2.06 %1.77 %0.42 %2.19 %1.77 %0.42 %
Net charge-offs$1,621 $1,585 $1,402 $1,116 $1,096 $525 47.9 %$3,206 $2,102 $1,104 52.5 %
Loan receivables delinquent over 30 days(6)
$4,574 $4,820 $4,885 $4,304 $3,641 $933 25.6 %$4,574 $3,641 $933 25.6 %
Loan receivables delinquent over 90 days(6)
$2,244 $2,459 $2,353 $2,020 $1,677 $567 33.8 %$2,244 $1,677 $567 33.8 %
Allowance for credit losses (period-end)$10,982 $10,905 $10,571 $10,176 $9,804 $1,178 12.0 %$10,982 $9,804 $1,178 12.0 %
Allowance coverage ratio(7)
10.74 %10.72 %10.26 %10.40 %10.34 %0.40 %10.74 %10.34 %0.40 %
BUSINESS METRICS
Purchase volume(8)
$46,846 $42,387 $49,339 $47,006 $47,276 $(430)(0.9)%$89,233 $88,833 $400 0.5 %
Period-end loan receivables$102,284 $101,733 $102,988 $97,873 $94,801 $7,483 7.9 %$102,284 $94,801 $7,483 7.9 %
Credit cards$94,091 $93,736 $97,043 $92,078 $89,299 $4,792 5.4 %$94,091 $89,299 $4,792 5.4 %
Consumer installment loans$6,072 $5,957 $3,977 $3,784 $3,548 $2,524 71.1 %$6,072 $3,548 $2,524 71.1 %
Commercial credit products$2,003 $1,912 $1,839 $1,879 $1,826 $177 9.7 %$2,003 $1,826 $177 9.7 %
Other$118 $128 $129 $132 $128 $(10)(7.8)%$118 $128 $(10)(7.8)%
Average loan receivables, including held for sale$101,478 $100,957 $99,683 $96,230 $92,489 $8,989 9.7 %$101,218 $91,656 $9,562 10.4 %
Period-end active accounts (in thousands)(9)
70,991 70,754 73,484 70,137 70,269 722 1.0 %70,991 70,269 722 1.0 %
Average active accounts (in thousands)(9)
70,974 71,667 71,526 70,308 69,517 1,457 2.1 %71,402 69,637 1,765 2.5 %
LIQUIDITY
Liquid assets
Cash and equivalents$18,632 $20,021 $14,259 $15,643 $12,706 $5,926 46.6 %$18,632 $12,706 $5,926 46.6 %
Total liquid assets$20,051 $21,929 $16,808 $17,598 $16,448 $3,603 21.9 %$20,051 $16,448 $3,603 21.9 %
Undrawn credit facilities
Undrawn credit facilities$2,950 $2,950 $2,950 $2,950 $2,950 $— — %$2,950 $2,950 $— — %
Total liquid assets and undrawn credit facilities(10)
$23,001 $24,879 $19,758 $20,548 $19,398 $3,603 18.6 %$23,001 $19,398 $3,603 18.6 %
Liquid assets % of total assets16.64 %18.10 %14.31 %15.58 %15.13 %1.51 %16.64 %15.13 %1.51 %
Liquid assets including undrawn credit facilities % of total assets19.09 %20.53 %16.82 %18.19 %17.85 %1.24 %19.09 %17.85 %1.24 %
(1) Return on assets represents net earnings as a percentage of average total assets.
(2) Return on equity represents net earnings as a percentage of average total equity.
(3) Return on tangible common equity represents net earnings available to common stockholders as a percentage of average tangible common equity. Tangible common equity ("TCE") is a non-GAAP measure. For corresponding reconciliation of TCE to a GAAP financial measure, see Reconciliation of Non-GAAP Measures and Calculations of Regulatory Measures.
(4) Net interest margin represents net interest income divided by average interest-earning assets.
(5) Efficiency ratio represents (i) other expense, divided by (ii) net interest income, plus other income, less retailer share arrangements.
(6) Based on customer statement-end balances extrapolated to the respective period-end date.
(7) Allowance coverage ratio represents allowance for credit losses divided by total period-end loan receivables.
(8) Purchase volume, or net credit sales, represents the aggregate amount of charges incurred on credit cards or other credit product accounts less returns during the period.
(9) Active accounts represent credit card or installment loan accounts on which there has been a purchase, payment or outstanding balance in the current month.
(10) Excludes available borrowing capacity related to unencumbered assets.
2

SYNCHRONY FINANCIAL
STATEMENTS OF EARNINGS
(unaudited, $ in millions)
Quarter EndedSix Months Ended
Jun 30,
 2024		Mar 31,
 2024		Dec 31,
 2023		Sep 30,
 2023		Jun 30,
2023		2Q'24 vs. 2Q'23Jun 30,
2024		Jun 30,
2023		YTD'24 vs. YTD'23
Interest income: 
Interest and fees on loans$5,301 $5,293 $5,323 $5,151 $4,812 $489 10.2 %$10,594 $9,428 $1,166 12.4 %
Interest on cash and debt securities281 275 226 203 209 72 34.4 %556 379 177 46.7 %
Total interest income5,582 5,568 5,549 5,354 5,021 561 11.2 %11,150 9,807 1,343 13.7 %
Interest expense:
Interest on deposits967 954 878 800 717 250 34.9 %1,921 1,274 647 50.8 %
Interest on borrowings of consolidated securitization entities110 105 99 86 78 32 41.0 %215 155 60 38.7 %
Interest on senior unsecured notes100 104 106 106 106 (6)(5.7)%204 207 (3)(1.4)%
Total interest expense1,177 1,163 1,083 992 901 276 30.6 %2,340 1,636 704 43.0 %
Net interest income4,405 4,405 4,466 4,362 4,120 285 6.9 %8,810 8,171 639 7.8 %
Retailer share arrangements(810)(764)(878)(979)(887)77 (8.7)%(1,574)(1,804)230 (12.7)%
Provision for credit losses1,691 1,884 1,804 1,488 1,383 308 22.3 %3,575 2,673 902 33.7 %
Net interest income, after retailer share arrangements and provision for credit losses1,904 1,757 1,784 1,895 1,850 54 2.9 %3,661 3,694 (33)(0.9)%
Other income:
Interchange revenue263 241 270 267 262 1 0.4 %504 494 10 2.0 %
Protection product revenue125 141 139 131 125 — — %266 240 26 10.8 %
Loyalty programs(346)(319)(369)(358)(345)(1)0.3 %(665)(643)(22)3.4 %
Other75 1,094 31 52 19 56 294.7 %1,169 35 1,134 NM
Total other income117 1,157 71 92 61 56 91.8 %1,274 126 1,148 NM
Other expense:
Employee costs434 496 538 444 451 (17)(3.8)%930 902 28 3.1 %
Professional fees236 220 228 219 209 27 12.9 %456 395 61 15.4 %
Marketing and business development129 125 138 125 133 (4)(3.0)%254 264 (10)(3.8)%
Information processing207 186 190 177 179 28 15.6 %393 345 48 13.9 %
Other171 179 222 189 197 (26)(13.2)%350 382 (32)(8.4)%
Total other expense1,177 1,206 1,316 1,154 1,169 8 0.7 %2,383 2,288 95 4.2 %
Earnings before provision for income taxes844 1,708 539 833 742 102 13.7 %2,552 1,532 1,020 66.6 %
Provision for income taxes201 415 99 205 173 28 16.2 %616 362 254 70.2 %
Net earnings$643 $1,293 $440 $628 $569 $74 13.0 %$1,936 $1,170 $766 65.5 %
Net earnings available to common stockholders$624 $1,282 $429 $618 $559 $65 11.6 %$1,906 $1,149 $757 65.9 %

3

SYNCHRONY FINANCIAL
STATEMENTS OF FINANCIAL POSITION
(unaudited, $ in millions)
Quarter Ended
Jun 30,
 2024		Mar 31,
 2024		Dec 31,
 2023		Sep 30,
 2023		Jun 30,
2023		Jun 30, 2024 vs.
Jun 30, 2023
Assets
Cash and equivalents$18,632 $20,021 $14,259 $15,643 $12,706 $5,926 46.6 %
Debt securities2,693 3,005 3,799 2,882 4,294 (1,601)(37.3)%
Loan receivables:
Unsecuritized loans held for investment82,144 81,642 81,554 78,470 75,532 6,612 8.8 %
Restricted loans of consolidated securitization entities20,140 20,091 21,434 19,403 19,269 871 4.5 %
Total loan receivables102,284 101,733 102,988 97,873 94,801 7,483 7.9 %
Less: Allowance for credit losses(10,982)(10,905)(10,571)(10,176)(9,804)(1,178)12.0 %
Loan receivables, net91,302 90,828 92,417 87,697 84,997 6,305 7.4 %
Goodwill1,274 1,073 1,018 1,105 1,105 169 15.3 %
Intangible assets, net776 800 815 680 717 59 8.2 %
Other assets5,812 5,446 4,915 4,932 4,878 934 19.1 %
Assets held for sale— — 256 — — — NM
Total assets$120,489 $121,173 $117,479 $112,939 $108,697 $11,792 10.8 %
Liabilities and Equity
Deposits:
Interest-bearing deposit accounts$82,708 $83,160 $80,789 $77,669 $75,344 $7,364 9.8 %
Non-interest-bearing deposit accounts392 394 364 397 421 (29)(6.9)%
Total deposits83,100 83,554 81,153 78,066 75,765 7,335 9.7 %
Borrowings:
Borrowings of consolidated securitization entities7,517 8,016 7,267 6,519 5,522 1,995 36.1 %
Senior and Subordinated unsecured notes8,120 8,117 8,715 8,712 8,709 (589)(6.8)%
Total borrowings15,637 16,133 15,982 15,231 14,231 1,406 9.9 %
Accrued expenses and other liabilities6,212 6,204 6,334 5,875 5,321 891 16.7 %
Liabilities held for sale— — 107 — — — NM
Total liabilities104,949 105,891 103,576 99,172 95,317 9,632 10.1 %
Equity:
Preferred stock1,222 1,222 734 734 734 488 66.5 %
Common stock1 1 1 1 1 — — %
Additional paid-in capital9,793 9,768 9,775 9,750 9,727 66 0.7 %
Retained earnings20,310 19,790 18,662 18,338 17,828 2,482 13.9 %
Accumulated other comprehensive income (loss)(73)(69)(68)(96)(96)23 (24.0)%
Treasury stock(15,713)(15,430)(15,201)(14,960)(14,814)(899)6.1 %
Total equity15,540 15,282 13,903 13,767 13,380 2,160 16.1 %
Total liabilities and equity$120,489 $121,173 $117,479 $112,939 $108,697 $11,792 10.8 %

4

SYNCHRONY FINANCIAL
AVERAGE BALANCES, NET INTEREST INCOME AND NET INTEREST MARGIN
(unaudited, $ in millions)
Quarter Ended
Jun 30, 2024Mar 31, 2024Dec 31, 2023Sep 30, 2023Jun 30, 2023
InterestAverageInterestAverageInterestAverageInterestAverageInterestAverage
AverageIncome/Yield/AverageIncome/Yield/AverageIncome/Yield/AverageIncome/Yield/AverageIncome/Yield/
BalanceExpenseRateBalanceExpenseRateBalanceExpenseRateBalanceExpenseRateBalanceExpenseRate
Assets
Interest-earning assets:
Interest-earning cash and equivalents$18,337 $249 5.46 %$17,405 $236 5.45 %$13,762 $188 5.42 %$12,753 $172 5.35 %$14,198 $178 5.03 %
Securities available for sale2,731 32 4.71 %3,432 39 4.57 %3,895 38 3.87 %3,706 31 3.32 %3,948 31 3.15 %
Loan receivables, including held for sale:
Credit cards93,267 5,013 21.62 %94,216 5,096 21.75 %93,744 5,162 21.85 %90,587 5,003 21.91 %87,199 4,679 21.52 %
Consumer installment loans6,085 243 16.06 %4,734 149 12.66 %3,875 116 11.88 %3,656 108 11.72 %3,359 94 11.22 %
Commercial credit products2,001 43 8.64 %1,878 45 9.64 %1,934 42 8.62 %1,861 38 8.10 %1,808 36 7.99 %
Other125 2 6.44 %129 3 9.35 %130 3 9.16 %126 2 6.30 %123 3 9.78 %
Total loan receivables, including held for sale101,478 5,301 21.01 %100,957 5,293 21.09 %99,683 5,323 21.19 %96,230 5,151 21.24 %92,489 4,812 20.87 %
Total interest-earning assets122,546 5,582 18.32 %121,794 5,568 18.39 %117,340 5,549 18.76 %112,689 5,354 18.85 %110,635 5,021 18.20 %
Non-interest-earning assets:
Cash and due from banks887 944 886 964 976 
Allowance for credit losses(10,878)(10,677)(10,243)(9,847)(9,540)
Other assets7,309 6,973 6,616 6,529 6,330 
Total non-interest-earning assets(2,682)(2,760)(2,741)(2,354)(2,234)
Total assets$119,864 $119,034 $114,599 $110,335 $108,401 
Liabilities
Interest-bearing liabilities:
Interest-bearing deposit accounts$82,749 $967 4.70 %$82,598 $954 4.65 %$78,892 $878 4.42 %$75,952 $800 4.18 %$74,812 $717 3.84 %
Borrowings of consolidated securitization entities7,858 110 5.63 %7,383 105 5.72 %6,903 99 5.69 %6,096 86 5.60 %5,863 78 5.34 %
Senior and Subordinated unsecured notes8,118 100 4.95 %8,630 104 4.85 %8,712 106 4.83 %8,710 106 4.83 %8,707 106 4.88 %
Total interest-bearing liabilities98,725 1,177 4.80 %98,611 1,163 4.74 %94,507 1,083 4.55 %90,758 992 4.34 %89,382 901 4.04 %
Non-interest-bearing liabilities
Non-interest-bearing deposit accounts396 390 379 401 420 
Other liabilities5,221 5,419 5,652 5,418 5,164 
Total non-interest-bearing liabilities5,617 5,809 6,031 5,819 5,584 
Total liabilities104,342 104,420 100,538 96,577 94,966 
Equity
Total equity15,522 14,614 14,061 13,758 13,435 
Total liabilities and equity$119,864 $119,034 $114,599 $110,335 $108,401 
Net interest income$4,405 $4,405 $4,466 $4,362 $4,120 
Interest rate spread(1)
13.53 %13.64 %14.22 %14.51 %14.16 %
Net interest margin(2)
14.46 %14.55 %15.10 %15.36 %14.94 %
(1) Interest rate spread represents the difference between the yield on total interest-earning assets and the rate on total interest-bearing liabilities.
(2) Net interest margin represents net interest income divided by average interest-earning assets.

5

SYNCHRONY FINANCIAL
AVERAGE BALANCES, NET INTEREST INCOME AND NET INTEREST MARGIN
(unaudited, $ in millions)
Six Months Ended
Jun 30, 2024		Six Months Ended
Jun 30, 2023
InterestAverageInterestAverage
AverageIncome/Yield/AverageIncome/Yield/
BalanceExpenseRateBalanceExpenseRate
Assets
Interest-earning assets:
Interest-earning cash and equivalents$17,871 $485 5.46 %$13,287 $318 4.83 %
Securities available for sale3,082 71 4.63 %4,358 61 2.82 %
Loan receivables, including held for sale:
Credit cards93,743 10,109 21.69 %86,555 9,176 21.38 %
Consumer installment loans5,409 392 14.57 %3,232 177 11.04 %
Commercial credit products1,939 88 9.13 %1,753 70 8.05 %
Other127 5 7.92 %116 5 8.69 %
Total loan receivables, including held for sale101,218 10,594 21.05 %91,656 9,428 20.74 %
Total interest-earning assets122,171 11,150 18.35 %109,301 9,807 18.09 %
Non-interest-earning assets:
Cash and due from banks915 1,000 
Allowance for credit losses(10,777)(9,402)
Other assets7,141 6,229 
Total non-interest-earning assets(2,721)(2,173)
Total assets$119,450 $107,128 
Liabilities
Interest-bearing liabilities:
Interest-bearing deposit accounts$82,674 $1,921 4.67 %$73,521 $1,274 3.49 %
Borrowings of consolidated securitization entities7,620 215 5.67 %6,045 155 5.17 %
Senior and subordinated unsecured notes8,374 204 4.90 %8,575 207 4.87 %
Total interest-bearing liabilities98,668 2,340 4.77 %88,141 1,636 3.74 %
Non-interest-bearing liabilities
Non-interest-bearing deposit accounts393 415 
Other liabilities5,322 5,147 
Total non-interest-bearing liabilities5,715 5,562 
Total liabilities104,383 93,703 
Equity
Total equity15,067 13,425 
Total liabilities and equity$119,450 $107,128 
Net interest income$8,810 $8,171 
Interest rate spread(1)
13.58 %14.35 %
Net interest margin(2)
14.50 %15.08 %
(1) Interest rate spread represents the difference between the yield on total interest-earning assets and the rate on total interest-bearing liabilities.
(2) Net interest margin represents net interest income divided by average interest-earning assets.
6

SYNCHRONY FINANCIAL
BALANCE SHEET STATISTICS
(unaudited, $ in millions, except per share statistics)
Quarter Ended
Jun 30,
 2024		Mar 31,
 2024		Dec 31,
 2023		Sep 30,
 2023		Jun 30,
2023		Jun 30, 2024 vs.
Jun 30, 2023
BALANCE SHEET STATISTICS
Total common equity$14,318 $14,060 $13,169 $13,033 $12,646 $1,672 13.2 %
Total common equity as a % of total assets11.88 %11.60 %11.21 %11.54 %11.63 %0.25 %
Tangible assets$118,439 $119,300 $115,535 $111,154 $106,875 $11,564 10.8 %
Tangible common equity(1)
$12,268 $12,187 $11,225 $11,248 $10,824 $1,444 13.3 %
Tangible common equity as a % of tangible assets(1)
10.36 %10.22 %9.72 %10.12 %10.13 %0.23 %
Tangible common equity per share(1)
$31.05 $30.36 $27.59 $27.18 $25.89 $5.16 19.9 %
REGULATORY CAPITAL RATIOS(2)(3)
Basel III - CECL Transition
Total risk-based capital ratio(4)
15.8 %15.8 %14.9 %15.7 %15.7 %
Tier 1 risk-based capital ratio(5)
13.8 %13.8 %12.9 %13.6 %13.6 %
Tier 1 leverage ratio(6)
12.0 %12.0 %11.7 %12.2 %12.0 %
Common equity Tier 1 capital ratio12.6 %12.6 %12.2 %12.8 %12.8 %
(1) Tangible common equity ("TCE") is a non-GAAP measure. We believe TCE is a more meaningful measure of the net asset value of the Company to investors. For corresponding reconciliation of TCE to a GAAP financial measure, see Reconciliation of Non-GAAP Measures and Calculations of Regulatory Measures.
(2) Regulatory capital ratios at June 30, 2024 are preliminary and therefore subject to change.
(3) Capital ratios reflect the phase-in of an estimate of CECL’s effect on regulatory capital over a three-year transitional period beginning in the first quarter of 2022 through 2024. Capital ratios for 2024 and 2023 reflect 75% and 50%, respectively, of the phase-in of CECL effects.
(4) Total risk-based capital ratio is the ratio of total risk-based capital divided by risk-weighted assets.
(5) Tier 1 risk-based capital ratio is the ratio of Tier 1 capital divided by risk-weighted assets.
(6) Tier 1 leverage ratio is the ratio of Tier 1 capital divided by total average assets, after certain adjustments.

7

SYNCHRONY FINANCIAL
PLATFORM RESULTS
(unaudited, $ in millions)
Quarter EndedSix Months Ended
Jun 30,
 2024		Mar 31,
 2024		Dec 31,
 2023		Sep 30,
 2023		Jun 30,
2023		2Q'24 vs. 2Q'23Jun 30,
2024		Jun 30,
2023		YTD'24 vs. YTD'23
HOME & AUTO
Purchase volume(1)
$12,496 $10,512 $11,421 $12,273 $12,853 $(357)(2.8)%$23,008 $23,716 $(708)(3.0)%
Period-end loan receivables$32,822 $32,615 $31,969 $31,648 $30,926 $1,896 6.1 %$32,822 $30,926 $1,896 6.1 %
Average loan receivables, including held for sale$32,592 $31,865 $31,720 $31,239 $30,210 $2,382 7.9 %$32,228 $29,951 $2,277 7.6 %
Average active accounts (in thousands)(2)
19,335 18,969 19,177 19,223 18,935 400 2.1 %19,176 18,769 407 2.2 %
Interest and fees on loans$1,419 $1,382 $1,403 $1,367 $1,275 $144 11.3 %$2,801 $2,500 $301 12.0 %
Other income$38 $33 $26 $28 $27 $11 40.7 %$71 $52 $19 36.5 %
DIGITAL
Purchase volume(1)
$13,403 $12,628 $15,510 $13,808 $13,472 $(69)(0.5)%$26,031 $25,733 $298 1.2 %
Period-end loan receivables$27,704 $27,734 $28,925 $26,685 $25,758 $1,946 7.6 %$27,704 $25,758 $1,946 7.6 %
Average loan receivables, including held for sale$27,542 $28,081 $27,553 $26,266 $25,189 $2,353 9.3 %$27,812 $25,086 $2,726 10.9 %
Average active accounts (in thousands)(2)
20,920 21,349 21,177 20,768 20,559 361 1.8 %21,142 20,570 572 2.8 %
Interest and fees on loans$1,544 $1,567 $1,579 $1,530 $1,422 $122 8.6 %$3,111 $2,785 $326 11.7 %
Other income$— $6 $(7)$(6)$(2)$2 (100.0)%$6 $(1)$7 NM
DIVERSIFIED & VALUE
Purchase volume(1)
$15,333 $14,023 $16,987 $15,445 $15,356 $(23)(0.1)%$29,356 $28,795 $561 1.9 %
Period-end loan receivables$19,516 $19,559 $20,666 $18,865 $18,329 $1,187 6.5 %$19,516 $18,329 $1,187 6.5 %
Average loan receivables, including held for sale$19,360 $19,593 $19,422 $18,565 $17,935 $1,425 7.9 %$19,477 $17,825 $1,652 9.3 %
Average active accounts (in thousands)(2)
20,253 21,032 21,038 20,410 20,346 (93)(0.5)%20,691 20,652 39 0.2 %
Interest and fees on loans$1,165 $1,214 $1,204 $1,168 $1,091 $74 6.8 %$2,379 $2,161 $218 10.1 %
Other income$(22)$(17)$(30)$(28)$(21)$(1)4.8 %$(39)$(35)$(4)11.4 %
HEALTH & WELLNESS
Purchase volume(1)
$4,089 $3,980 $3,870 $3,990 $4,015 $74 1.8 %$8,069 $7,705 $364 4.7 %
Period-end loan receivables$15,280 $15,065 $14,521 $14,019 $13,327 $1,953 14.7 %$15,280 $13,327 $1,953 14.7 %
Average loan receivables, including held for sale$15,111 $14,697 $14,251 $13,600 $12,859 $2,252 17.5 %$14,904 $12,585 $2,319 18.4 %
Average active accounts (in thousands)(2)
7,752 7,611 7,447 7,276 7,063 689 9.8 %7,670 6,976 694 9.9 %
Interest and fees on loans$911 $869 $866 $844 $786 $125 15.9 %$1,780 $1,521 $259 17.0 %
Other income$48 $66 $82 $74 $54 $(6)(11.1)%$114 $115 $(1)(0.9)%
LIFESTYLE
Purchase volume(1)
$1,525 $1,244 $1,550 $1,490 $1,580 $(55)(3.5)%$2,769 $2,882 $(113)(3.9)%
Period-end loan receivables$6,822 $6,604 $6,744 $6,483 $6,280 $542 8.6 %$6,822 $6,280 $542 8.6 %
Average loan receivables, including held for sale$6,723 $6,631 $6,568 $6,383 $6,106 $617 10.1 %$6,677 $6,013 $664 11.0 %
Average active accounts (in thousands)(2)
2,662 2,642 2,620 2,556 2,529 133 5.3 %2,665 2,575 90 3.5 %
Interest and fees on loans$258 $255 $255 $249 $232 $26 11.2 %$513 $455 $58 12.7 %
Other income$6 $8 $7 $8 $7 $(1)(14.3)%$14 $14 $— — %
CORP, OTHER
Purchase volume(1)
$— $— $1 $— $— $— NM$— $2 $(2)(100.0)%
Period-end loan receivables$140 $156 $163 $173 $181 $(41)(22.7)%$140 $181 $(41)(22.7)%
Average loan receivables, including held for sale$150 $90 $169 $177 $190 $(40)(21.1)%$120 $196 $(76)(38.8)%
Average active accounts (in thousands)(2)
52 64 67 75 85 (33)(38.8)%58 95 (37)(38.9)%
Interest and fees on loans$4 $6 $16 $(7)$6 $(2)(33.3)%$10 $6 $4 66.7 %
Other income$47 $1,061 $(7)$16 $(4)$51 NM$1,108 $(19)$1,127 NM
TOTAL SYF
Purchase volume(1)
$46,846 $42,387 $49,339 $47,006 $47,276 $(430)(0.9)%$89,233 $88,833 $400 0.5 %
Period-end loan receivables$102,284 $101,733 $102,988 $97,873 $94,801 $7,483 7.9 %$102,284 $94,801 $7,483 7.9 %
Average loan receivables, including held for sale$101,478 $100,957 $99,683 $96,230 $92,489 $8,989 9.7 %$101,218 $91,656 $9,562 10.4 %
Average active accounts (in thousands)(2)
70,974 71,667 71,526 70,308 69,517 1,457 2.1 %71,402 69,637 1,765 2.5 %
Interest and fees on loans$5,301 $5,293 $5,323 $5,151 $4,812 $489 10.2 %$10,594 $9,428 $1,166 12.4 %
Other income$117 $1,157 $71 $92 $61 $56 91.8 %$1,274 $126 $1,148 NM
(1) Purchase volume, or net credit sales, represents the aggregate amount of charges incurred on credit cards or other credit product accounts less returns during the period.
(2) Active accounts represent credit card or installment loan accounts on which there has been a purchase, payment or outstanding balance in the current month.
8

SYNCHRONY FINANCIAL
RECONCILIATION OF NON-GAAP MEASURES AND CALCULATIONS OF REGULATORY MEASURES(1)
(unaudited, $ in millions, except per share statistics)
Quarter Ended
Jun 30,
2024		Mar 31,
2024		Dec 31,
2023		Sep 30,
2023		Jun 30,
2023
COMMON EQUITY AND REGULATORY CAPITAL MEASURES(2)
GAAP Total equity$15,540 $15,282 $13,903 $13,767 $13,380 
Less: Preferred stock(1,222)(1,222)(734)(734)(734)
Less: Goodwill(1,274)(1,073)(1,105)(1,105)(1,105)
Less: Intangible assets, net(776)(800)(839)(680)(717)
Tangible common equity$12,268 $12,187 $11,225 $11,248 $10,824 
Add: CECL transition amount573 573 1,146 1,146 1,146 
Adjustments for certain deferred tax liabilities and certain items in accumulated comprehensive income (loss)227 225 229 255 255 
Common equity Tier 1 $13,068 $12,985 $12,600 $12,649 $12,225 
Preferred stock1,222 1,222 734 734 734 
Tier 1 capital$14,290 $14,207 $13,334 $13,383 $12,959 
Add: Subordinated debt741 741 741 741 741 
Add: Allowance for credit losses includible in risk-based capital1,407 1,399 1,389 1,322 1,282 
Total Risk-based capital$16,438 $16,347 $15,464 $15,446 $14,982 
ASSET MEASURES(2)
Total average assets$119,864 $119,034 $114,599 $110,335 $108,401 
Adjustments for:
Add: CECL transition amount573 573 1,146 1,146 1,146 
Less: Disallowed goodwill and other disallowed intangible assets
(net of related deferred tax liabilities) and other		(1,805)(1,631)(1,671)(1,507)(1,537)
Total assets for leverage purposes$118,632 $117,976 $114,074 $109,974 $108,010 
Risk-weighted assets$103,718 $103,242 $103,460 $98,451 $95,546 
CECL FULLY PHASED-IN CAPITAL MEASURES
Tier 1 capital$14,290 $14,207 $13,334 $13,383 $12,959 
Less: CECL transition adjustment(573)(573)(1,146)(1,146)(1,146)
Tier 1 capital (CECL fully phased-in)$13,717 $13,634 $12,188 $12,237 $11,813 
Add: Allowance for credit losses10,982 10,905 10,571 10,176 9,804 
Tier 1 capital (CECL fully phased-in) + Reserves for credit losses$24,699 $24,539 $22,759 $22,413 $21,617 
Risk-weighted assets$103,718 $103,242 $103,460 $98,451 $95,546 
Less: CECL transition adjustment(290)(290)(580)(580)(580)
Risk-weighted assets (CECL fully phased-in)$103,428 $102,952 $102,880 $97,871 $94,966 
TANGIBLE COMMON EQUITY PER SHARE
GAAP book value per share$36.24 $35.03 $32.36 $31.50 $30.25 
Less: Goodwill(3.23)(2.68)(2.72)(2.67)(2.65)
Less: Intangible assets, net(1.96)(1.99)(2.05)(1.65)(1.71)
Tangible common equity per share$31.05 $30.36 $27.59 $27.18 $25.89 
(1) Regulatory measures at June 30, 2024 are preliminary and therefore subject to change.
(2) Capital ratios reflect the phase-in of an estimate of CECL’s effect on regulatory capital over a three-year transitional period beginning in the first quarter of 2022 through 2024. Capital ratios for 2024 and 2023 reflect 75% and 50%, respectively, of the phase-in of CECL effects.
9
2Q'24 FINANCIAL RESULTS July 17, 2024 Exhibit 99.3

 
2 Cautionary Statement Regarding Forward-Looking Statements The following slides are part of a presentation by Synchrony Financial in connection with reporting quarterly financial results. No representation is made that the information in these slides is complete. For additional information, see the earnings release and financial supplement included as exhibits to our Current Report on Form 8-K filed today and available on our website (www.synchronyfinancial.com) and the SEC's website (www.sec.gov). All references to net earnings and net income are intended to have the same meaning. All comparisons are for the second quarter of 2024 compared to the second quarter of 2023, unless otherwise noted. This presentation contains certain forward-looking statements as defined in Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, which are subject to the "safe harbor" created by those sections. Forward-looking statements may be identified by words such as "expects," "intends," "anticipates," "plans," "believes," "seeks," "targets," "outlook," "estimates," "will," "should," "may," “aim” or words of similar meaning, but these words are not the exclusive means of identifying forward-looking statements. Forward-looking statements are based on management's current expectations and assumptions, and are subject to inherent uncertainties, risks and changes in circumstances that are difficult to predict. As a result, actual results could differ materially from those indicated in these forward-looking statements. Factors that could cause actual results to differ materially include global political, economic, business, competitive, market, regulatory and other factors and risks, such as: the impact of macroeconomic conditions and whether industry trends we have identified develop as anticipated; retaining existing partners and attracting new partners, concentration of our revenue in a small number of partners, and promotion and support of our products by our partners; cyber-attacks or other security incidents or breaches; disruptions in the operations of our and our outsourced partners' computer systems and data centers; the financial performance of our partners; the Consumer Financial Protection Bureau’s (the “CFPB”) final rule on credit card late fees, including the timing for resolution and outcome of the litigation challenging the final rule, as well as changes to consumer behaviors in response to the final rule, if implemented, and the product, policy and pricing changes that have been or will be implemented to mitigate the impacts of the final rule; the sufficiency of our allowance for credit losses and the accuracy of the assumptions or estimates used in preparing our financial statements, including those related to the CECL accounting guidance; higher borrowing costs and adverse financial market conditions impacting our funding and liquidity, and any reduction in our credit ratings; our ability to grow our deposits in the future; damage to our reputation; our ability to securitize our loan receivables, occurrence of an early amortization of our securitization facilities, loss of the right to service or subservice our securitized loan receivables, and lower payment rates on our securitized loan receivables; changes in market interest rates and the impact of any margin compression; effectiveness of our risk management processes and procedures, reliance on models which may be inaccurate or misinterpreted, and our ability to manage our credit risk; our ability to offset increases in our costs in retailer share arrangements; competition in the consumer finance industry; our concentration in the U.S. consumer credit market; our ability to successfully develop and commercialize new or enhanced products and services; our ability to realize the value of acquisitions, dispositions and strategic investments; reductions in interchange fees; fraudulent activity; failure of third-parties to provide various services that are important to our operations; international risks and compliance and regulatory risks and costs associated with international operations; alleged infringement of intellectual property rights of others and our ability to protect our intellectual property; litigation and regulatory actions; our ability to attract, retain and motivate key officers and employees; tax legislation initiatives or challenges to our tax positions and/or interpretations, and state sales tax rules and regulations; regulation, supervision, examination and enforcement of our business by governmental authorities, the impact of the Dodd-Frank Wall Street Reform and Consumer Protection Act (the “Dodd-Frank Act”) and other legislative and regulatory developments and the impact of the CFPB’s regulation of our business, including new requirements and constraints the Company and the Bank will become subject to as a result of having $100 billion or more in total assets; impact of capital adequacy rules and liquidity requirements; restrictions that limit our ability to pay dividends and repurchase our common stock, and restrictions that limit the Bank’s ability to pay dividends to us; regulations relating to privacy, information security and data protection; use of third-party vendors and ongoing third-party business relationships; and failure to comply with anti-money laundering and anti-terrorism financing laws. For the reasons described above, we caution you against relying on any forward-looking statements, which should also be read in conjunction with the other cautionary statements that are included elsewhere in this presentation and in our public filings, including under the headings “Risk Factors Relating to Our Business” and “Risk Factors Relating to Regulation” in the Company's Annual Report on Form 10-K for the fiscal year ended December 31, 2023, filed on February 8, 2024. You should not consider any list of such factors to be an exhaustive statement of all the risks, uncertainties, or potentially inaccurate assumptions that could cause our current expectations or beliefs to change. Further, any forward-looking statement speaks only as of the date on which it is made, and we undertake no obligation to update or revise any forward-looking statement, including the 2024 Business Trends on slide 12 of this presentation, to reflect events or circumstances after the date on which the statement is made or to reflect the occurrence of unanticipated events, except as otherwise may be required by law. Disclaimers

 
3 14.46% NET INTEREST MARGIN compared to 14.94% 12.6% CET1 liquid assets of $20.0 billion, 16.6% of total assets SUMMARY FINANCIAL METRICS CAPITAL $1.55 DILUTED EPS compared to $1.32 31.7% EFFICIENCY RATIO compared to 35.5% 2Q'24 Financial Highlights $102.3 billion LOAN RECEIVABLES compared to $94.8 billion $83.1 billion DEPOSITS 84% of current funding 6.42% NET CHARGE-OFFS compared to 4.75% 71.0 million AVERAGE ACTIVE ACCOUNTS compared to 69.5 million $400 million CAPITAL RETURNED $300 million share repurchases

 
4 8% 8% Dual Card / Co-Brand BUSINESS EXPANSION CONSUMER PERFORMANCE (14)% (3)% New accounts Average balance per account (c) (e) GROWTH METRICS (1)% 2% Purchase volume Average active accounts Loan receivables $23.7 Dual Card / Co-Brand in millions $19.4 2%$19.7 $ billions $26.7 $ billions 2Q'24 Business Highlights 12% Purchase volume per account (a) (a) (d) (b)

 
5 B/(W) $ in millions, except per share statistics 2Q'24 2Q'23 $ % Total interest income $5,582 $5,021 $561 11% Total interest expense 1,177 901 (276) (31)% Net interest income (NII) 4,405 4,120 285 7% Retailer share arrangements (RSA) (810) (887) 77 9% Provision for credit losses 1,691 1,383 (308) (22)% Other income 117 61 56 92% Other expense 1,177 1,169 (8) (1)% Pre-tax earnings 844 742 102 14% Provision for income taxes 201 173 (28) (16)% Net earnings 643 569 74 13% Preferred dividends 19 10 (9) (47)% Net earnings available to common stockholders $624 $559 $65 12% Diluted earnings per share $1.55 $1.32 $0.23 17% Summary earnings statement Financial Results 2Q'24 Highlights $643 million Net earnings, $1.55 Diluted EPS • Net interest income up 7% – Interest and fees on loans up 10% driven primarily by growth in average loan receivables – Interest expense increase attributed to higher benchmark rates and higher interest-bearing liabilities • Retailer share arrangements decreased (9)% – Decrease driven by higher net charge-offs partially offset by higher net interest income • Provision for credit losses up 22% – Higher provision driven by higher net charge-offs partially offset by a lower reserve build • Total Other income up 92% – Increase primarily driven by Visa B-1 share exchange gain of $51 million – Also driven by initial impact of PPPC* related fees, partially offset by Pets Best disposition • Total Other expense up 1% – Increase primarily driven by technology investments, preparatory expenses related to Late Fee rule change, and servicing costs related to newly acquired business, partially offset by lower operational losses and cost discipline resulting in lower employee and marketing costs * Product, Policy and Pricing Changes (or “PPPC”)

 
6 9%15%6%8%6% 2Q'24 Platform Results Home & Auto Digital Diversified & Value Health & Wellness Lifestyle 2Q'23 2Q'24 V% $12.9 $12.5 (3)% 18.9 19.3 2% $1,275 $1,419 11% 2Q'23 2Q'24 V% $13.5 $13.4 (1)% 20.6 20.9 2% $1,422 $1,544 9% 2Q'23 2Q'24 V% $15.4 $15.3 -% 20.3 20.3 -% $1,091 $1,165 7% 2Q'23 2Q'24 V% $4.0 $4.1 2% 7.1 7.8 10% $786 $911 16% (a) Loan receivables Purchase volume Accounts Interest & fees on loans 2Q'23 2Q'24 V% $1.6 $1.5 (3)% 2.5 2.7 5% $232 $258 11%

 
7 Net revenue $ in millions Net Revenue 2Q'23 Net revenue $3,294 Interest and fees on loans 489 Interest on cash and debt securities 72 Total interest expense (276) Net interest income change $285 Retailer share arrangements 77 Total other income 56 2Q'24 Net revenue $3,712 2Q'24 Highlights (a) (b) Payment Rate Trends Net revenue $ in millions • Net revenue increased $418 million, or 13% – Net interest income increased $285 million, or 7%, driven primarily by higher interest & fees on loans – Loan receivables yield of 21.01%, up 14 bps driven by repricing and lower payment rate, partially offset by higher reversals – Total interest-bearing liabilities cost of 4.80%, up 76 bps driven by higher benchmark rates – Retailer share arrangements decreased $77 million driven by higher net charge-offs partially offset by higher net interest income – Total Other income increase primarily driven by Visa B-1 share exchange gain of $51 million and initial impact of PPPC related fees, partially offset by impact of Pets Best disposition 13% $3,712 (b) $3,294

 
8 • Total Other expense up 1% – Increase primarily driven by technology investments, preparatory expenses related to Late Fee rule change, and servicing costs related to newly acquired business, partially offset by lower operational losses and cost discipline resulting in lower employee and marketing costs – Information processing increase primarily driven by technology investments – Professional fees primarily driven by servicing costs related to newly acquired business – Other decrease driven primarily by lower operational losses • Efficiency ratio 31.7% vs. 35.5% prior year – Decrease in ratio driven by higher revenue partially offset by higher expenses B/(W) 2Q'23 2Q'24 V$ V% Employee costs $451 $434 $17 4% Professional fees 209 236 (27) (13)% Marketing/BD 133 129 4 3% Information processing 179 207 (28) (16)% Other 197 171 26 13% Other expense $1,169 $1,177 $(8) (1)% Efficiency(a) 35.5% 31.7% 3.8 pts. Other Expense Other Expense $ in millions 2Q'24 Highlights1%

 
9 Asset Quality Metrics Allowance for credit losses $ in millions, % of period-end loan receivables Net charge-offs $ in millions, % of average loan receivables including held for sale 30+ days past due $ in millions, % of period-end loan receivables 90+ days past due $ in millions, % of period-end loan receivables (a)(b)

 
10 Delinquency Trends 0 bps 0 bps Basis point change versus prior year Basis point change versus prior year +63 bps +42 bps 30+ days past due % of period-end loan receivables (left axis); rate change versus prior year in basis points (right axis) 90+ days past due % of period-end loan receivables (left axis); rate change versus prior year in basis points (right axis)

 
11 CET1% Walk Tier 1 Capital + Credit Loss Reserve Ratio* Capital ratios Funding, Capital and Liquidity Funding sources $ in billions % 8% 8% CET1 Capital Ratio Tier 1 Capital Ratio Total Capital Ratio * The “Tier 1 Capital + Credit Loss Reserve Ratio” is the sum of our “Tier 1 Capital” and “Allowance for Credit Losses,” divided by our “Total Risk-Weighted Assets”. Tier 1 Capital and Risk-Weighted Assets are adjusted to reflect the fully phased-in impact of CECL. These adjusted metrics are non-GAAP measures, see non-GAAP reconciliation in appendix. Unsecured Securitization Deposits Liquid assets $16.4 $20.0 Undrawn credit facilities 3.0 3.0 Total $19.4 $23.0 % of Total assets 17.9% 19.1% (a) (b) 84% 2Q'23 CET1% 12.8% Net Earnings 2.4% Risk Weighted Asset changes (0.9)% Common & Preferred dividends (0.5)% Share repurchases (1.1)% CECL transition provisions (0.5)% Other activity, net 0.1% Pets Best disposition & Ally Lending acquisition 0.3% 2Q'24 CET1% 12.6%

 
12 2Q’24 Performance • Purchase volume lower than expectations, offset by lower payment rate • Net interest income growth in-line with expectations due to lower than expected payment rate and favorable deposit betas, partially offset by higher reversals • Delinquency trending in-line to slightly better than seasonality • RSA functioning as designed • Other expense reflects continued cost discipline 2H’24 Trends • Flat to low single digit year-over-year declines in purchase volume, reflecting impact of credit actions and softening consumer demand • Year-over-year receivables growth to continue to moderate • Progressive growth in Net interest income (excluding impact of Late Fee Rule implementation) and Other income as PPPC go into effect • Delinquency trends in-line with or better than seasonality • NCO rate lower than 1H’24 • YE’24 Reserve rate in-line with YE’23 • RSA to continue to align program performance and function as designed • Other expense to continue trend consistently with 1H’24 average on a dollar basis Late Fees • First phase of PPPC implementation complete; continue to expect ongoing waves of Changes in Terms notices (e.g. recently acquired accounts, inactive accounts, etc.) • Expect to evaluate impacts of PPPC as changes go into effect, likely 2H’24 FY24 EPS Outlook • $7.60 – $7.80 and includes impacts of: late fee rule implementation date of October 1, 2024; impact of PPPC primarily in 3Q’24 and 4Q’24; and $1.96 Pets Best gain on sale in 1Q’24. • Continued uncertainty with regard to timing of final Late Fee Rule implementation; changes to assumptions regarding implementation timing and/or consumer behavior changes in response to PPPC, could impact EPS expectations 2024 Business Trends

 
13 Footnotes All amounts and metrics included in this presentation are as of, or for the three months ended, June 30, 2024, unless otherwise stated. 2Q'24 Business Highlights a. Dual Card / Co-Brand metrics are consumer only and include in-partner and out-of-partner activity. b. Average active accounts are credit card or installment loan accounts on which there has been a purchase, payment or outstanding balance in the current month. c. New accounts represent accounts that were approved in the respective period, in millions. d. Purchase volume per account is calculated as total Purchase volume divided by Average active accounts, in $. e. Average balance per account is calculated as the Average loan receivables divided by Average active accounts, in $. Platform Results a. Accounts represent Average active accounts in millions. Loan receivables $ in billions, Purchase volume $ in billions and Interest and fees on loans $ in millions. Net Revenue a. Payment rate is calculated as customer payments divided by beginning of period loan receivables. b. Historical payment rate excludes portfolios sold in 2019 and 2022. Other Expense a. Efficiency ratio is calculated as Total Other expense divided by sum of Net interest income plus Other income less Retailer share arrangements. Asset Quality Metrics a. Allowance for credit losses reflects the adoption of ASU 2022-22, “Financial Instruments - Credit Losses (Topic 326): Troubled Debt Restructurings and Vintage Disclosures” on January 1, 2023, which included a $294 million reduction to the allowance for credit losses upon adoption. b. Allowance for credit losses includes impact of Ally Lending acquisition beginning in 1Q’24. Funding, Capital and Liquidity a. Excludes available borrowing capacity related to unencumbered assets. b. Capital ratios reflect the phase-in of an estimate of CECL’s effect on regulatory capital over a three-year transitional period beginning in the first quarter of 2022, with effects fully phased-in beginning in the first quarter of 2025. CET1, Tier 1, and Total Capital Ratio are presented on a Transition basis and capital ratios for 2024 and 2023 reflect 75% and 50%, respectively, of the phase-in of CECL effects.

 

 
15 Notable Other Income and Other Expense Items The following table sets forth notable items incurred during the quarter included in Total Other income and Total Other expense. Quarter Ended June 30, 2024 Notable Other income items Total Other income: Gain related to Visa B-1 share exchange $51 Total $51 Notable Other expense items Total Other expenses: Preparatory expenses related to Late Fee rule change $23 Total $23 $ in millions

 
16 Non-GAAP Reconciliation* The following table sets forth the components of our Tier 1 Capital + Reserves ratio for the periods indicated below. $ in millions At June 30 Total 2023 2024 Tier 1 Capital $ 12,959 $ 14,290 Less: CECL transition adjustment (1,146) (573) Tier 1 capital (CECL fully phased-in) $ 11,813 $ 13,717 Add: Allowance for credit losses 9,804 10,982 Tier 1 capital (CECL fully phased-in) plus Reserves for credit losses $ 21,617 $ 24,699 Risk-weighted assets $ 95,546 $ 103,718 Less: CECL transition adjustment (580) (290) Risk-weighted assets (CECL fully phased-in) $ 94,966 $103,428 * Amounts at June 30, 2024 are preliminary and therefore subject to change.

 
Exhibit 99.4
Explanation of Non-GAAP Measures
The information provided in this Form 8-K and exhibits includes measures which are not prepared in accordance with U.S. generally accepted accounting principles ("GAAP").
We present certain capital measures in this Form 8-K and exhibits. Our “fully-phased Tier 1 Capital and Credit Loss Reserve Ratio” is not required by regulators to be disclosed, and therefore is considered a non-GAAP measure. We believe this ratio is a useful measure to investors as it provides a meaningful measure of what the Company’s total loss absorption capacity would be if the transitional rules currently in effect, which permit the temporary deferral of the regulatory capital effects of CECL, were no longer available for us to apply.
We also present a measure we refer to as “tangible common equity” in this Form 8-K and exhibits. Tangible common equity itself is not a measure presented in accordance with GAAP. We believe tangible common equity is a more meaningful measure to investors of the net asset value of the Company.
The reconciliations of these capital and equity related non-GAAP measures to the applicable comparable GAAP financial measures are included in the detailed financial tables included in Exhibit 99.2.

v3.24.2
8-K Cover Page
Jul. 17, 2024
Entity Information [Line Items]  
Document Type 8-K
Document Period End Date Jul. 17, 2024
Entity Registrant Name SYNCHRONY FINANCIAL
Entity Incorporation, State or Country Code DE
Entity File Number 001-36560
Entity Tax Identification Number 51-0483352
Entity Address, Address Line One 777 Long Ridge Road
Entity Address, City or Town Stamford,
Entity Address, State or Province CT
Entity Address, Postal Zip Code 06902
City Area Code 203
Local Phone Number 585-2400
Written Communications false
Soliciting Material false
Pre-commencement Tender Offer false
Pre-commencement Issuer Tender Offer false
Entity Emerging Growth Company false
Amendment Flag false
Entity Central Index Key 0001601712
Common Stock  
Entity Information [Line Items]  
Title of 12(b) Security Common stock, par value $0.001 per share
Trading Symbol SYF
Security Exchange Name NYSE
Series A Preferred Stock  
Entity Information [Line Items]  
Title of 12(b) Security Depositary Shares Each Representing a 1/40th Interest in a Share of 5.625% Fixed Rate Non-Cumulative Perpetual Preferred Stock, Series A
Trading Symbol SYFPrA
Security Exchange Name NYSE
Series B Preferred Stock  
Entity Information [Line Items]  
Title of 12(b) Security Depositary Shares Each Representing a 1/40th Interest in a Share of 8.250% Fixed Rate Reset Non-Cumulative Perpetual Preferred Stock, Series B
Trading Symbol SYFPrB
Security Exchange Name NYSE
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