Core Insights - Belle Tire has partnered with Synchrony to launch a private label credit card, enhancing customer access to flexible financing options for automotive products and services [1][2][3] Group 1: Partnership Details - The partnership aims to provide a seamless rollout of financing options across nearly 200 Belle Tire locations in the Midwest [1][6] - Synchrony’s collaboration with 1stMILE, Belle Tire's integrated payment provider, facilitated the quick implementation of these financing solutions [1] Group 2: Credit Card Features - The Belle Tire credit card offers promotional financing of six months on purchases of $199 or more and twelve months on purchases of $1,000 or more [3] - Cardholders can use the Synchrony Car Care credit card at over one million gas stations, auto parts retailers, and service locations nationwide [3] Group 3: Customer Application Process - Customers can apply for Synchrony financing through various channels, including in-store pin pads, QR codes, text-to-apply options, and online at BelleTire.com [4] Group 4: Company Background - Founded in 1922, Belle Tire has expanded to nearly 200 locations, providing a range of automotive services including tires, maintenance, and repairs [6][8] - Belle Tire emphasizes superior service and convenience, aligning with the new financing options to make automotive purchases more affordable [6][7]

Core Viewpoint - Synchrony Financial reported a decline in adjusted earnings per share (EPS) for Q1 2025, despite exceeding consensus estimates, indicating challenges in loan receivables and consumer spending [1][4]. Financial Performance - Adjusted EPS for Q1 2025 was $1.89, surpassing the Zacks Consensus Estimate by 16%, but down 39.8% year over year [1]. - Net interest income reached $4.5 billion, a slight increase of 1.3% year over year, but fell short of consensus by 1.8% [1][5]. - Total loan receivables decreased by 2% year over year to $99.6 billion, missing estimates [3][4]. - Total deposits slightly declined by 0.1% year over year to $83.4 billion, also below estimates [4]. - Provision for credit losses was $1.5 billion, down 20.9% year over year, which was lower than estimates [4]. Business Segments - Retailer share arrangements increased by 17% year over year to $895 million [3]. - Purchase volume fell by 4% year over year to $40.7 billion, attributed to selective consumer spending [4]. - Interest and fees on loans totaled $5.3 billion, remaining flat year over year but missing estimates [5]. Operational Metrics - Average active accounts decreased by 3% year over year to 69.3 million, missing consensus estimates [6]. - Total other expenses rose by 3% year over year to $1.24 billion, exceeding estimates [6]. - The efficiency ratio improved to 33.4%, up 830 basis points year over year, surpassing consensus [6]. Financial Position - As of March 31, 2025, cash and equivalents were $21.6 billion, a 47% increase from the end of 2024 [11]. - Total assets grew by 2.1% year over year to $122 billion [11]. - Total borrowings increased by 10% to $17 billion [11]. - Return on assets decreased to 2.5%, while return on equity fell to 18.4% [12]. Capital Deployment - Synchrony returned $600 million through share buybacks and paid $97 million in dividends during Q1 2025 [13]. - A new share repurchase program of $2.5 billion was approved, alongside a 20% increase in the quarterly cash dividend to $0.30 per share [13]. Guidance - The company anticipates low single-digit growth in period-end loan receivables and expects purchase volume growth to reflect credit actions and consumer behavior [14]. - Net revenues are projected between $15.2 billion and $15.7 billion, indicating a 4% decline from 2024 [14]. - Management expects net charge-offs to be between 5.8% and 6% for the year [15].

Highlights Synchrony’s results show consumer spending is moderating, with a decrease in purchase volumes, especially for larger ticket items, indicating consumers are becoming more selective in their discretionary spending. Synchrony is observing strong credit metrics, including a decrease in delinquency rates, which they attribute to effective risk management and consumer efforts to manage their debt obligations. Despite broader economic uncertainty impacting consumer confidence, current consumer be ...

While still higher than a year ago, it has been a very difficult few months for Synchrony Financial (NYSE: SYF ) investors with the stock falling over 30% from its highs. Its Q1 earnings resultsOver fifteen years of experience making contrarian bets based on my macro view and stock-specific turnaround stories to garner outsized returns with a favorable risk/reward profile. If you want me to cover a specific stock or have a question for an article, just let me know!Analyst’s Disclosure: I/we have no stock, o ...

Synchrony Financial (SYF) Q1 2025 Earnings Conference Call April 22, 2025 08:00 AM ET Company Participants Operator - Technical/Call OperatorOperator - Conference ModeratorCatherine Miller - Senior Vice President, Investor RelationsBrian Devils - President & Chief Executive Officer Conference Call Participants Ryan Nash - Analyst, Goldman SachsTerry Ma / Rick Shane - Analyst (Barclays / JP Morgan)John Pinkerry - Analyst, EvercoreMihir Bhatia - Analyst, Bank of AmericaMark DeVries / Don Vandetti - Analyst (D ...

Financial Data and Key Metrics Changes - The company reported net earnings of $757 million or $1.89 per diluted share, with a return on average assets of 2.5% and a return on tangible common equity of 22.4% [6][20] - Purchase volume decreased by 4% year over year to $41 billion, influenced by credit actions and selective customer spending [16][28] - Ending loan receivables decreased by 2% to $100 billion, attributed to lower purchase volume [16][20] - Net revenue decreased by 23% to $3.7 billion, primarily due to the prior year's Pets Best gain on sale [17] - Net interest income increased by 1% to $4.5 billion, with a net interest margin of 14.74%, up 19 basis points year over year [17][18] Business Line Data and Key Metrics Changes - Dual and co-branded cards accounted for 45% of total purchase volume, reflecting a 2% increase, driven by the CareCredit dual card launch [7] - Purchase volume at the platform level varied from down 1% to down 9% year over year, with customers remaining selective in discretionary spending [7][8] - The payment rate remained flat year over year at 15.8%, with a sequential increase of 10 basis points [8][20] Market Data and Key Metrics Changes - The 30-plus delinquency rate improved to 4.52%, down 22 basis points from the previous year, while the 90-plus delinquency rate decreased to 2.29% [21] - The net charge-off rate was 6.38%, an increase of 7 basis points from the prior year, but net charge-off dollars were down 4% sequentially [22] Company Strategy and Development Direction - The company aims to expand access to flexible financing across various spend categories, focusing on partnerships and customer engagement [9][10] - A new co-brand program with Sun Country Airlines and renewals with major partners like Ashley and American Eagle were highlighted as strategic growth opportunities [10][11] - The company is committed to maintaining a strong capital position, with a new share repurchase authorization of $2.5 billion and a 20% increase in quarterly dividends [26][30] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in consumer trends and credit performance, noting that customers are managing spending prudently amid inflation [9][80] - The outlook for 2025 includes expectations for low single-digit growth in ending loan receivables and net revenue between $15.2 billion and $15.7 billion [28][30] - The company is monitoring the impact of potential tariffs and macroeconomic conditions on consumer behavior and spending [78][84] Other Important Information - The company achieved a credit rating upgrade from Fitch, reflecting its strong balance sheet and business model resilience [23][24] - The efficiency ratio for the first quarter was 33.4%, approximately 110 basis points higher than the previous year when excluding the Pets Best gain on sale [20] Q&A Session Summary Question: Concerns about credit and guidance adjustments - Management noted improved credit trends, with delinquencies down and confidence in consumer behavior, leading to slight adjustments in guidance [39][40] Question: Growth outlook and purchase volume drivers - Management indicated that while purchase volume was down, they expect improvements in the second half of the year as consumer confidence stabilizes [56][57] Question: Impact of tariffs and consumer behavior - Management stated that while uncertainty exists, current consumer spending remains strong, and they are closely monitoring partner strategies regarding tariffs [81][82] Question: Appetite for onboarding larger portfolios - Management confirmed a consistent competitive environment and ongoing discussions for new partnerships and program renewals [89][90]

Synchrony (SYF) came out with quarterly earnings of $1.89 per share, beating the Zacks Consensus Estimate of $1.63 per share. This compares to earnings of $1.18 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 15.95%. A quarter ago, it was expected that this consumer credit company would post earnings of $1.90 per share when it actually produced earnings of $1.91, delivering a surprise of 0.53%.Over the last four quarters, the ...

Cautionary Statement Regarding Forward-Looking Statements The following slides are part of a presentation by Synchrony Financial in connection with reporting quarterly financial results and should be read in conjunction with 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.investors.synchrony.com) and the SEC's website (www.sec.gov). All references to net earnings and net income are intended to have the same me ...

[Financial Summary](index=1&type=section&id=FINANCIAL%20SUMMARY) This section presents a comprehensive overview of Synchrony Financial's Q1 2025 financial performance, detailing significant declines in net earnings and revenue, alongside changes in common share metrics [Earnings Overview](index=1&type=section&id=EARNINGS) Synchrony Financial reported a significant decrease in net earnings and net revenue for Q1 2025 compared to Q1 2024, primarily driven by a substantial reduction in other income. Provision for credit losses also decreased | Metric | Mar 31, 2025 ($M) | Mar 31, 2024 ($M) | Change ($M) | Change (%) | | :-------------------------- | :------------------ | :------------------ | :---------- | :--------- | | Net interest income | 4,464 | 4,405 | 59 | 1.3 % | | Retailer share arrangements | (895) | (764) | (131) | 17.1 % | | Other income | 149 | 1,157 | (1,008) | (87.1)% | | Net revenue | 3,718 | 4,798 | (1,080) | (22.5)% | | Provision for credit losses | 1,491 | 1,884 | (393) | (20.9)% | | Net earnings | 757 | 1,293 | (536) | (41.5)% | [Common Share Statistics](index=1&type=section&id=COMMON%20SHARE%20STATISTICS) Diluted EPS saw a notable decline year-over-year, while book value and tangible book value per share increased. The company maintained its dividend per share and continued share repurchases | Metric | Mar 31, 2025 | Mar 31, 2024 | Change | Change (%) | | :--------------------------- | :----------- | :----------- | :----------- | :--------- | | Basic EPS | $1.91 | $3.17 | $(1.26) | (39.7)% | | Diluted EPS | $1.89 | $3.14 | $(1.25) | (39.8)% | | Dividend declared per share | $0.25 | $0.25 | — | — % | | Book value per share | $40.37 | $35.03 | $5.34 | 15.2 % | | Tangible book value per share| $34.79 | $30.36 | $4.43 | 14.6 % | | Shares repurchased (millions)| (9.8) | (7.5) | (2.3) | 30.7 % | [Selected Metrics](index=2&type=section&id=SELECTED%20METRICS) This section analyzes key performance, credit quality, business, and liquidity metrics, revealing declines in profitability and business volumes, alongside improved liquidity and mixed credit trends [Performance Metrics](index=2&type=section&id=PERFORMANCE%20METRICS) Key performance indicators like Return on Assets and Return on Equity decreased significantly year-over-year, while Net Interest Margin slightly improved. The efficiency ratio worsened | Metric | Mar 31, 2025 | Mar 31, 2024 | Change (%) | | :------------------------------- | :----------- | :----------- | :--------- | | Return on assets | 2.5 % | 4.4 % | (1.9)% | | Return on equity | 18.4 % | 35.6 % | (17.2)% | | Return on tangible common equity | 22.4 % | 43.6 % | (21.2)% | | Net interest margin | 14.74 % | 14.55 % | 0.19 % | | Efficiency ratio | 33.4 % | 25.1 % | 8.3 % | [Credit Quality Metrics](index=2&type=section&id=CREDIT%20QUALITY%20METRICS) Credit quality metrics showed a slight increase in net charge-offs as a percentage of average loan receivables, but a decrease in 30+ and 90+ days past due percentages. Allowance for credit losses remained relatively stable | Metric | Mar 31, 2025 | Mar 31, 2024 | Change (%) | | :-------------------------------------------------------- | :----------- | :----------- | :--------- | | Net charge-offs as a % of average loan receivables | 6.38 % | 6.31 % | 0.07 % | | 30+ days past due as a % of period-end loan receivables | 4.52 % | 4.74 % | (0.22)% | | 90+ days past due as a % of period-end loan receivables | 2.29 % | 2.42 % | (0.13)% | | Allowance for credit losses (period-end) ($M) | 10,828 | 10,905 | (0.7)% | [Business Metrics](index=2&type=section&id=BUSINESS%20METRICS) Purchase volume and period-end loan receivables experienced a slight decline year-over-year, as did the number of average active accounts | Metric | Mar 31, 2025 ($M) | Mar 31, 2024 ($M) | Change ($M) | Change (%) | | :---------------------------------------------- | :---------------- | :---------------- | :---------- | :--------- | | Purchase volume | 40,720 | 42,387 | (1,667) | (3.9)% | | Period-end loan receivables | 99,608 | 101,733 | (2,125) | (2.1)% | | Average loan receivables, including held for sale | 101,021 | 100,957 | 64 | 0.1 % | | Period-end active accounts (in thousands) | 67,787 | 70,754 | (2,967) | (4.2)% | [Liquidity](index=2&type=section&id=LIQUIDITY) The company's liquidity position improved, with increases in cash and equivalents and total liquid assets, leading to a higher percentage of liquid assets relative to total assets | Metric | Mar 31, 2025 ($M) | Mar 31, 2024 ($M) | Change ($M) | Change (%) | | :---------------------------------------------------- | :---------------- | :---------------- | :---------- | :--------- | | Cash and equivalents | 21,629 | 20,021 | 1,608 | 8.0 % | | Total liquid assets | 23,817 | 21,929 | 1,888 | 8.6 % | | Liquid assets % of total assets | 19.52 % | 18.10 % | | 1.42 % | [Statements of Earnings](index=3&type=section&id=STATEMENTS%20OF%20EARNINGS) This section details the components of the statement of earnings, highlighting a slight increase in net interest income offset by a substantial decrease in other income, leading to a significant decline in net earnings [Interest Income and Expense](index=3&type=section&id=Interest%20Income%20and%20Expense) Net interest income increased slightly year-over-year, driven by a modest rise in interest and fees on loans and a decrease in total interest expense, particularly from deposits | Metric | Mar 31, 2025 ($M) | Mar 31, 2024 ($M) | Change ($M) | Change (%) | | :-------------------------- | :---------------- | :---------------- | :---------- | :--------- | | Interest and fees on loans | 5,312 | 5,293 | 19 | 0.4 % | | Total interest income | 5,550 | 5,568 | (18) | (0.3)% | | Interest on deposits | 882 | 954 | (72) | (7.5)% | | Total interest expense | 1,086 | 1,163 | (77) | (6.6)% | | Net interest income | 4,464 | 4,405 | 59 | 1.3 % | [Other Income and Expense](index=3&type=section&id=Other%20Income%20and%20Expense) Total other income saw a drastic reduction, primarily due to a significant decrease in the 'Other' category, which was largely offset by a slight increase in total other expense | Metric | Mar 31, 2025 ($M) | Mar 31, 2024 ($M) | Change ($M) | Change (%) | | :-------------------------- | :---------------- | :---------------- | :---------- | :--------- | | Interchange revenue | 238 | 241 | (3) | (1.2)% | | Protection product revenue | 147 | 141 | 6 | 4.3 % | | Other (within Total other income) | 75 | 1,094 | (1,019) | (93.1)% | | Total other income | 149 | 1,157 | (1,008) | (87.1)% | | Total other expense | 1,243 | 1,206 | 37 | 3.1 % | [Net Earnings](index=3&type=section&id=Net%20Earnings) Net earnings and net earnings available to common stockholders both declined significantly year-over-year, reflecting the changes in revenue and expenses | Metric | Mar 31, 2025 ($M) | Mar 31, 2024 ($M) | Change ($M) | Change (%) | | :-------------------------------------- | :---------------- | :---------------- | :---------- | :--------- | | Earnings before provision for income taxes | 984 | 1,708 | (724) | (42.4)% | | Provision for income taxes | 227 | 415 | (188) | (45.3)% | | Net earnings | 757 | 1,293 | (536) | (41.5)% | | Net earnings available to common stockholders | 736 | 1,282 | (546) | (42.6)% | [Statements of Financial Position](index=4&type=section&id=STATEMENTS%20OF%20FINANCIAL%20POSITION) This section outlines the company's financial position, showing a slight increase in total assets driven by cash, a stable liability base, and growth in total equity primarily from retained earnings [Assets](index=4&type=section&id=Assets) Total assets increased slightly, driven by higher cash and equivalents, while total loan receivables decreased. Goodwill also saw an increase | Metric | Mar 31, 2025 ($M) | Mar 31, 2024 ($M) | Change ($M) | Change (%) | | :-------------------------- | :---------------- | :---------------- | :---------- | :--------- | | Cash and equivalents | 21,629 | 20,021 | 1,608 | 8.0 % | | Total loan receivables | 99,608 | 101,733 | (2,125) | (2.1)% | | Loan receivables, net | 88,780 | 90,828 | (2,048) | (2.3)% | | Goodwill | 1,274 | 1,073 | 201 | 18.7 % | | Total assets | 122,026 | 121,173 | 853 | 0.7 % | [Liabilities and Equity](index=4&type=section&id=Liabilities%20and%20Equity) Total liabilities remained stable, with a slight decrease in deposits and a rise in borrowings. Total equity increased, primarily due to higher retained earnings | Metric | Mar 31, 2025 ($M) | Mar 31, 2024 ($M) | Change ($M) | Change (%) | | :-------------------------- | :---------------- | :---------------- | :---------- | :--------- | | Total deposits | 83,435 | 83,554 | (119) | (0.1)% | | Total borrowings | 17,009 | 16,133 | 876 | 5.4 % | | Total liabilities | 105,445 | 105,891 | (446) | (0.4)% | | Retained earnings | 22,209 | 19,790 | 2,419 | 12.2 % | | Total equity | 16,581 | 15,282 | 1,299 | 8.5 % | [Average Balances, Net Interest Income and Net Interest Margin](index=5&type=section&id=AVERAGE%20BALANCES,%20NET%20INTEREST%20INCOME%20AND%20NET%20INTEREST%20MARGIN) This section examines average balances of interest-earning assets and interest-bearing liabilities, demonstrating an increase in net interest income and an expansion of the net interest margin [Interest-Earning Assets](index=5&type=section&id=Interest-Earning%20Assets) Average interest-earning assets increased slightly, with loan receivables remaining stable. The overall yield on interest-earning assets saw a minor decrease | Metric | Mar 31, 2025 ($M) | Mar 31, 2024 ($M) | Change ($M) | Change (%) | | :---------------------------------------------- | :---------------- | :---------------- | :---------- | :--------- | | Average Interest-earning cash and equivalents | 18,539 | 17,405 | 1,134 | 6.5 % | | Total loan receivables, including held for sale | 101,021 | 100,957 | 64 | 0.1 % | | Total interest-earning assets | 122,791 | 121,794 | 997 | 0.8 % | | Yield on Total interest-earning assets | 18.33 % | 18.39 % | | (0.06)% | [Interest-Bearing Liabilities](index=5&type=section&id=Interest-Bearing%20Liabilities) Average interest-bearing liabilities slightly decreased, and the average rate on these liabilities also declined, contributing to improved net interest income | Metric | Mar 31, 2025 ($M) | Mar 31, 2024 ($M) | Change ($M) | Change (%) | | :-------------------------------------- | :---------------- | :---------------- | :---------- | :--------- | | Average Interest-bearing deposit accounts | 82,370 | 82,598 | (228) | (0.3)% | | Total interest-bearing liabilities | 98,411 | 98,611 | (200) | (0.2)% | | Rate on Total interest-bearing liabilities | 4.48 % | 4.74 % | | (0.26)% | [Net Interest Income and Margin](index=5&type=section&id=Net%20Interest%20Income%20and%20Margin) Net interest income increased, and the net interest margin expanded year-over-year, reflecting favorable movements in interest-earning assets and interest-bearing liabilities | Metric | Mar 31, 2025 | Mar 31, 2024 | Change (%) | | :----------------- | :----------- | :----------- | :--------- | | Net interest income| $4,464 | $4,405 | 1.3 % | | Net interest margin| 14.74 % | 14.55 % | 0.19 % | [Balance Sheet Statistics](index=6&type=section&id=BALANCE%20SHEET%20STATISTICS) This section presents key balance sheet statistics, including growth in common and tangible equity, and improved regulatory capital ratios, indicating a stronger capital position [Common Equity and Tangible Equity](index=6&type=section&id=Common%20Equity%20and%20Tangible%20Equity) Both total common equity and tangible common equity, along with tangible book value per share, showed healthy year-over-year growth | Metric | Mar 31, 2025 ($M) | Mar 31, 2024 ($M) | Change ($M) | Change (%) | | :------------------------------- | :---------------- | :---------------- | :---------- | :--------- | | Total common equity | 15,359 | 14,060 | 1,299 | 9.2 % | | Tangible common equity | 13,238 | 12,187 | 1,051 | 8.6 % | | Tangible book value per share | $34.79 | $30.36 | $4.43 | 14.6 % | [Regulatory Capital Ratios](index=6&type=section&id=REGULATORY%20CAPITAL%20RATIOS) The company's regulatory capital ratios, including Total risk-based, Tier 1 risk-based, Tier 1 leverage, and Common equity Tier 1, all improved year-over-year, indicating a stronger capital position | Metric | Mar 31, 2025 | Mar 31, 2024 | | :---------------------------- | :----------- | :----------- | | Total risk-based capital ratio| 16.5 % | 15.8 % | | Tier 1 risk-based capital ratio| 14.4 % | 13.8 % | | Tier 1 leverage ratio | 12.4 % | 12.0 % | | Common equity Tier 1 capital ratio| 13.2 % | 12.6 % | - Regulatory capital ratios at March 31, 2025, are preliminary and subject to change[14](index=14&type=chunk) - Capital ratios for 2025 reflect **100% of the phase-in of CECL effects**, compared to **75% in 2024**[15](index=15&type=chunk) [Platform Results](index=7&type=section&id=PLATFORM%20RESULTS) This section provides a detailed breakdown of performance across various business platforms, revealing mixed trends in purchase volume and loan receivables, with a notable overall decline in other income [Home & Auto](index=7&type=section&id=HOME%20%26%20AUTO) The Home & Auto platform experienced declines in both purchase volume and period-end loan receivables, while interest and fees on loans saw a modest increase | Metric | Mar 31, 2025 ($M) | Mar 31, 2024 ($M) | Change ($M) | Change (%) | | :-------------------------- | :---------------- | :---------------- | :---------- | :--------- | | Purchase volume | 9,567 | 10,512 | (945) | (9.0)% | | Period-end loan receivables | 30,460 | 32,615 | (2,155) | (6.6)% | | Interest and fees on loans | 1,413 | 1,382 | 31 | 2.2 % | [Digital](index=7&type=section&id=DIGITAL) The Digital platform showed a slight decrease in purchase volume but maintained stable period-end loan receivables. Interest and fees on loans saw a minor decline | Metric | Mar 31, 2025 ($M) | Mar 31, 2024 ($M) | Change ($M) | Change (%) | | :-------------------------- | :---------------- | :---------------- | :---------- | :--------- | | Purchase volume | 12,479 | 12,628 | (149) | (1.2)% | | Period-end loan receivables | 27,765 | 27,734 | 31 | 0.1 % | | Interest and fees on loans | 1,544 | 1,567 | (23) | (1.5)% | [Diversified & Value](index=7&type=section&id=DIVERSIFIED%20%26%20VALUE) The Diversified & Value platform experienced a decrease in purchase volume and a slight reduction in period-end loan receivables, alongside a decline in interest and fees on loans | Metric | Mar 31, 2025 ($M) | Mar 31, 2024 ($M) | Change ($M) | Change (%) | | :-------------------------- | :---------------- | :---------------- | :---------- | :--------- | | Purchase volume | 13,732 | 14,023 | (291) | (2.1)% | | Period-end loan receivables | 19,436 | 19,559 | (123) | (0.6)% | | Interest and fees on loans | 1,178 | 1,214 | (36) | (3.0)% | [Health & Wellness](index=7&type=section&id=HEALTH%20%26%20WELLNESS) The Health & Wellness platform saw a decrease in purchase volume but an increase in period-end loan receivables and interest and fees on loans, indicating growth in its loan portfolio | Metric | Mar 31, 2025 ($M) | Mar 31, 2024 ($M) | Change ($M) | Change (%) | | :-------------------------- | :---------------- | :---------------- | :---------- | :--------- | | Purchase volume | 3,774 | 3,980 | (206) | (5.2)% | | Period-end loan receivables | 15,193 | 15,065 | 128 | 0.8 % | | Interest and fees on loans | 914 | 869 | 45 | 5.2 % | [Lifestyle](index=7&type=section&id=LIFESTYLE) The Lifestyle platform experienced a decrease in purchase volume but a slight increase in period-end loan receivables and interest and fees on loans | Metric | Mar 31, 2025 ($M) | Mar 31, 2024 ($M) | Change ($M) | Change (%) | | :-------------------------- | :---------------- | :---------------- | :---------- | :--------- | | Purchase volume | 1,168 | 1,244 | (76) | (6.1)% | | Period-end loan receivables | 6,636 | 6,604 | 32 | 0.5 % | | Interest and fees on loans | 261 | 255 | 6 | 2.4 % | [Total SYF](index=7&type=section&id=TOTAL%20SYF) Overall, Synchrony Financial saw a decrease in total purchase volume and period-end loan receivables, while total interest and fees on loans remained relatively stable. Total other income significantly declined | Metric | Mar 31, 2025 ($M) | Mar 31, 2024 ($M) | Change ($M) | Change (%) | | :-------------------------- | :---------------- | :---------------- | :---------- | :--------- | | Purchase volume | 40,720 | 42,387 | (1,667) | (3.9)% | | Period-end loan receivables | 99,608 | 101,733 | (2,125) | (2.1)% | | Interest and fees on loans | 5,312 | 5,293 | 19 | 0.4 % | | Other income | 149 | 1,157 | (1,008) | (87.1)% | [Corp, Other](index=7&type=section&id=CORP,%20OTHER) The 'Corp, Other' category showed a significant decrease in other income, likely reflecting the impact of the Pets Best gain on sale from the prior year | Metric | Mar 31, 2025 ($M) | Mar 31, 2024 ($M) | Change ($M) | Change (%) | | :----------- | :---------------- | :---------------- | :---------- | :--------- | | Other income | (2) | 1,061 | (1,063) | (100.2)% | [Reconciliation of Non-GAAP Measures and Calculations of Regulatory Measures](index=8&type=section&id=RECONCILIATION%20OF%20NON-GAAP%20MEASURES%20AND%20CALCULATIONS%20OF%20REGULATORY%20MEASURES) This section reconciles GAAP to non-GAAP measures and details calculations for regulatory capital and asset metrics, highlighting the company's capital structure and compliance [Common Equity and Regulatory Capital Measures](index=8&type=section&id=COMMON%20EQUITY%20AND%20REGULATORY%20CAPITAL%20MEASURES) The reconciliation shows an increase in tangible common equity and all key regulatory capital components year-over-year, reflecting a stronger capital base | Metric | Mar 31, 2025 ($M) | Mar 31, 2024 ($M) | | :-------------------------- | :---------------- | :---------------- | | GAAP Total equity | 16,581 | 15,282 | | Tangible common equity | 13,238 | 12,187 | | Common equity Tier 1 | 13,446 | 12,985 | | Tier 1 capital | 14,668 | 14,207 | | Total Risk-based capital | 16,798 | 16,347 | [Asset Measures](index=8&type=section&id=ASSET%20MEASURES) Total average assets for leverage purposes increased, while risk-weighted assets decreased year-over-year | Metric | Mar 31, 2025 ($M) | Mar 31, 2024 ($M) | | :------------------------------ | :---------------- | :---------------- | | Total average assets | 120,493 | 119,034 | | Total assets for leverage purposes | 118,598 | 117,976 | | Risk-weighted assets | 101,625 | 103,242 | [CECL Fully Phased-in Capital Measures](index=8&type=section&id=CECL%20FULLY%20PHASED-IN%20CAPITAL%20MEASURES) CECL fully phased-in Tier 1 capital and risk-weighted assets show an improved capital position, with the full phase-in of CECL effects in 2025 | Metric | Mar 31, 2025 ($M) | Mar 31, 2024 ($M) | | :---------------------------------------- | :---------------- | :---------------- | | Tier 1 capital (CECL fully phased-in) | 14,668 | 13,634 | | Risk-weighted assets (CECL fully phased-in) | 101,625 | 102,952 | - Capital ratios for 2025 reflect **100% of the phase-in of CECL effects**, compared to **75% in 2024**[20](index=20&type=chunk) [Tangible Book Value Per Share Reconciliation](index=8&type=section&id=TANGIBLE%20BOOK%20VALUE%20PER%20SHARE) Tangible book value per share increased significantly year-over-year, reflecting growth in common equity adjusted for goodwill and intangible assets | Metric | Mar 31, 2025 | Mar 31, 2024 | | :-------------------------- | :----------- | :----------- | | Book value per share | $40.37 | $35.03 | | Tangible book value per share| $34.79 | $30.36 | [Adjusted Financial Measures (Non-GAAP)](index=9&type=section&id=RECONCILIATION%20OF%20NON-GAAP%20MEASURES%20%28Continued%29) This section presents adjusted financial measures for Q1 2024, excluding the Pets Best gain on sale, to provide a clearer view of core operational performance [Adjusted Financial Measures (Excluding Pets Best Gain on Sale)](index=9&type=section&id=ADJUSTED%20FINANCIAL%20MEASURES) This section provides adjusted financial measures for Q1 2024, excluding the one-time gain on sale of Pets Best. These adjustments significantly reduce reported net earnings, EPS, and return metrics, while increasing the efficiency ratio, providing a clearer view of core operational performance | Metric | March 31, 2024 (Reported) | Pets Best gain on sale impact | March 31, 2024 (Adjusted) | | :-------------------------------------- | :------------------------ | :---------------------------- | :------------------------ | | Net earnings | $1,293 | $(802) | $491 | | Diluted earnings per share | $3.14 | $(1.96) | $1.18 | | Return on assets | 4.4 % | (2.7)% | 1.7 % | | Return on equity | 35.6 % | (21.8)% | 13.8 % | | Return on tangible common equity | 43.6 % | (26.8)% | 16.8 % | | Efficiency ratio | 25.1 % | 7.2 % | 32.3 % |

Financial Results - Synchrony Financial announced its first quarter 2025 results for the period ending March 31, 2025 [1] - A conference call will be hosted by the CEO and CFO to review financial results and outlook [2] Dividends - The Board declared a quarterly cash dividend of $0.30 per share of common stock, representing a 20% increase [3] - Dividends for Series A Preferred Stock are approximately $14.06 per share and for Series B Preferred Stock are approximately $20.63 per share, both payable on May 15, 2025 [3] Share Repurchase Program - The Board approved a share repurchase program of up to $2.5 billion, set to commence in the second quarter of 2025 through June 30, 2026 [4] Company Overview - Synchrony is a leading consumer financing company, providing access to credit and banking products for nearly 100 years [5] - The company supports the growth of over 400,000 small and midsize businesses and is ranked as the 2 Best Company to Work For by Fortune magazine [5]