With over 40 partnerships with healthcare software solutions, Synchrony has made it even easier to have financing conversations and streamline practice operations through innovative technology. Synchrony has been a leader in consumer lending for nearly 100 years and has been at the forefront of dental financing with its CareCredit credit card for more than 35 years. Today, CareCredit is accepted by over 285,000 providers, including 80% of dental practices in the U.S. For more information, please visit www.C ...

Core Viewpoint - Synchrony Financial (NYSE: SYF) has shown significant stock performance, returning over 38% since the last quarter, outperforming the S&P 500 which returned around 17% [1] Company Performance - The stock of Synchrony Financial has appreciated significantly, indicating strong market confidence and performance [1] Investment Strategy - The investment approach focuses on long-term holdings, seeking opportunities regardless of asset class, market cap, sector, or yield, with an emphasis on maximizing total return by purchasing when prices are low relative to intrinsic value [1]

Core Insights - Synchrony Financial (SYF) reported strong second-quarter 2025 results with adjusted earnings per share (EPS) of $2.50, exceeding the Zacks Consensus Estimate by 45.4% and reflecting a year-over-year increase of 61.3% [1][9] - The company's net interest income reached $4.5 billion, a 2.6% year-over-year growth, surpassing the consensus estimate by 0.5% [1][2] Financial Performance - Improved net interest margin and increased interest and fees on loans contributed to the strong quarterly results, alongside a reduced provision for credit losses [2][9] - Total loan receivables decreased by 2.5% year over year to $99.8 billion, missing the Zacks Consensus Estimate of $100.9 billion [3][4] - Total deposits fell by 1% year over year to $82.3 billion, also below the estimate of $83.9 billion [4] - Provision for credit losses was $1.1 billion, down 32.2% year over year, which was lower than the estimate of $1.7 billion [4][9] Segment Performance - Retailer share arrangements increased by 22% year over year to $992 million [3] - Home & Auto loan receivables decreased by 6.9% year over year, while Digital loan receivables inched up by 0.3% [7][10] - Health & Wellness loan receivables saw a slight increase of 0.2% year over year, but purchase volume fell by 2% [10] Financial Position - As of June 30, 2025, Synchrony had cash and equivalents of $19.5 billion, up from $14.7 billion at the end of 2024 [11] - Total assets increased to $120.1 billion from $119.5 billion at the end of 2024, with total equity rising to $17 billion [11][12] - The efficiency ratio improved to 34.1%, better than the consensus mark of 32.5% [6] Capital Deployment - Synchrony returned $500 million through share buybacks and paid $114 million in common stock dividends during the second quarter [13] - The company had approximately $2 billion remaining under its share buyback authorization as of June 30, 2025 [13] Guidance - For 2025, Synchrony anticipates flat loan receivables and slower purchase volume growth due to credit actions and consumer spending behavior [14] - Net revenues are projected to be between $15 billion and $15.3 billion, lower than the previous estimate of $15.2-$15.7 billion [14] - Management expects net charge-offs to be between 5.6% and 5.8%, with an efficiency ratio forecasted to remain between 32% and 33% [15]

Core Viewpoint - Synchrony Financial (NYSE: SYF) has shown strong performance over the past year, with a 37% increase in share price, despite concerns regarding the consumer credit environment not materializing [1] Group 1: Company Performance - The company reported extremely strong results, indicating resilience in its operations and financial health [1] Group 2: Market Context - The fears surrounding a worsening consumer credit environment have not been realized, contributing to the positive performance of Synchrony Financial [1]

For the quarter ended June 2025, Synchrony (SYF) reported revenue of $4.52 billion, up 2.6% over the same period last year. EPS came in at $2.50, compared to $1.55 in the year-ago quarter. The reported revenue represents a surprise of +0.46% over the Zacks Consensus Estimate of $4.5 billion. With the consensus EPS estimate being $1.72, the EPS surprise was +45.35%. View all Key Company Metrics for Synchrony here>>> As these metrics influence top- and bottom-line performance, comparing them to the year-ago n ...

Financial Data and Key Metrics Changes - Synchrony Financial reported net earnings of $967 million or $2.5 per diluted share, with a return on average assets of 3.2% and a return on tangible common equity of 28.3% [8][22][29] - Net revenue decreased by 2% to $3.6 billion, while net interest income increased by 3% to $4.5 billion [19][22] - The efficiency ratio was 34.1%, approximately 240 basis points higher than the previous year [22] Business Line Data and Key Metrics Changes - Purchase volume decreased by 2% year-over-year to $46 billion, with dual and co-branded cards accounting for 45% of that volume, reflecting a 5% increase compared to last year [10][18] - Ending loan receivables decreased by 2% to $100 billion, influenced by lower purchase volume and a higher payment rate of 16.3% [18][19] - Average transaction values improved, declining only 50 basis points compared to last year, a significant improvement from previous quarters [11] Market Data and Key Metrics Changes - The 30-plus delinquency rate decreased to 4.18%, down 29 basis points from the prior year, while the net charge-off rate was 5.7%, a decrease of 72 basis points [23][24] - Total liquid assets increased by 9% to $21.8 billion, representing 18.1% of total assets [25] Company Strategy and Development Direction - Synchrony is focused on evolving its product offerings and enhancing customer experience, with new partnerships and product launches expected to drive growth [12][15] - The company aims to leverage its diversified portfolio and strong credit performance to navigate the uncertain macroeconomic environment [9][15] - The renewal of partnerships with major retailers like Walmart and Amazon is expected to enhance growth opportunities [12][13] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about consumer spending and credit performance, noting that credit actions taken previously have strengthened the portfolio's delinquency and net charge-off performance [41][42] - The outlook for 2025 includes expectations for flat ending loan receivables and a loss rate between 5.6% and 5.8%, aligning with long-term underwriting targets [27][29] - Management highlighted the importance of monitoring economic conditions and potential tariff impacts on future performance [65][66] Other Important Information - Synchrony returned $614 million to shareholders, consisting of $500 million in share repurchases and $114 million in dividends [26] - The company has a strong capital position, with a CET1 ratio of 13.6% and plans to continue returning capital to shareholders [25][72] Q&A Session Summary Question: What encouraging signs are being seen in the portfolio? - Management noted that consumer spending remains strong, with co-brand growth up 5% year-over-year, indicating positive trends in retail and discretionary spending [41][42] Question: Can you elaborate on the minor modifications to the PPPC? - Management clarified that any changes are partner-specific and not part of a broader rollback plan, with minimal revenue impact expected [44][46] Question: What drives the expected increase in net interest margin in the second half? - The increase is attributed to a rise in average loan receivables and the impact of product pricing and policy changes [54][56] Question: How does the company view loan growth and credit standards? - Management indicated that while credit standards have been loosened slightly, it will take time for these changes to reflect in growth metrics [65][66] Question: What is the outlook for capital management and potential acquisitions? - The company remains committed to returning capital to shareholders while also exploring selective M&A opportunities [72][76] Question: How are new products with existing customers expected to contribute to growth? - Management highlighted the multi-product strategy with major partners like Amazon, which is expected to enhance growth over time [84][86]

Financial Data and Key Metrics Changes - The company reported net earnings of $967 million or $2.5 per diluted share, with a return on average assets of 3.2% and a return on tangible common equity of 28.3% [6][19][23] - Net revenue decreased by 2% to $3.6 billion, while net interest income increased by 3% to $4.5 billion [16][19] - The efficiency ratio was 34.1%, approximately 240 basis points higher than the previous year [19] Business Line Data and Key Metrics Changes - Purchase volume decreased by 2% year over year to $46 billion, with dual and co-branded cards accounting for 45% of that volume, reflecting a 5% increase compared to last year [7][15] - Ending loan receivables decreased by 2% to $100 billion due to lower purchase volume and a higher payment rate, which increased by approximately 30 basis points to 16.3% [15][16] - The company saw a 1% year-over-year increase in other income, driven by program performance [18] Market Data and Key Metrics Changes - The 30-plus delinquency rate was 4.18%, a decrease of 29 basis points from the previous year, while the net charge-off rate was 5.7%, down 72 basis points [20][21] - Total liquid assets increased by 9% to $21.8 billion, representing 18.1% of total assets [22] Company Strategy and Development Direction - The company is focused on evolving its product offerings and enhancing customer experience, with new partnerships and product launches expected to drive growth [10][13] - The partnership with Walmart and the renewal with Amazon are expected to enhance the company's market position and drive future growth [11][14] - The company aims to maintain a strong credit position while selectively loosening credit standards to drive growth [27][28] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about consumer spending and credit performance, noting encouraging signs in the portfolio [36][38] - The company expects ending loan receivables to remain flat compared to last year, with a loss rate projected between 5.6% and 5.8% [24][25] - The outlook for net interest margin is expected to increase to an average of 15.6% in the second half of 2025 [26] Other Important Information - The company returned $614 million to shareholders, consisting of $500 million in share repurchases and $114 million in dividends [23] - The CET1 ratio increased to 13.6%, indicating a strong capital position [22] Q&A Session Summary Question: What encouraging signs are being seen in the portfolio? - Management noted that consumer spending remains strong, with co-branded growth up 5% compared to the prior year, indicating positive trends in retail and discretionary spending [36][37] Question: Can you elaborate on the modifications to the PPPC? - Management stated that any potential rollbacks will occur on a partner-by-partner basis, with minor modifications expected to have a limited impact on net revenue [40][41] Question: What drives the expected increase in net interest margin in the second half? - The increase is attributed to a rise in average loan receivables as a percentage of interest-earning assets and the impact of PPPC on loan yield [48][49] Question: How does the company view loan growth and credit standards? - Management indicated that while loan growth may slow, there is optimism for growth opportunities as credit standards are selectively loosened [58][59] Question: What is the outlook for capital management and potential acquisitions? - The company is committed to returning capital to shareholders and is actively looking for attractive opportunities, including potential acquisitions [66][70]

Synchrony (SYF) came out with quarterly earnings of $2.5 per share, beating the Zacks Consensus Estimate of $1.72 per share. This compares to earnings of $1.55 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of +45.35%. A quarter ago, it was expected that this consumer credit company would post earnings of $1.63 per share when it actually produced earnings of $1.89, delivering a surprise of +15.95%.Over the last four quarters, th ...

Financial Performance - Net earnings available to common stockholders increased by 52% to $946 million compared to $624 million in the second quarter of 2024[13] - Diluted earnings per share increased by 61% to $2.50 compared to $1.55 in the second quarter of 2024[13] - Net revenue decreased by 2%, or $65 million, to $3647 million[15, 19] - Provision for credit losses decreased 32%, or $545 million, due to a reserve release and lower net charge-offs[26] Key Metrics - Loan receivables decreased by 2% to $99.8 billion from $102.3 billion in the second quarter of 2024[11] - Purchase volume decreased by 2% to $46.1 billion from $46.8 billion in the second quarter of 2024[11] - Net interest margin increased by 32 bps to 14.78%[15, 17] - Net charge-offs decreased to 5.70% from 6.42% in the second quarter of 2024[11] Capital and Funding - Common Equity Tier 1 (CET1) capital ratio increased to 13.6% from 12.6% in the second quarter of 2024[11, 35] - Capital returned to shareholders increased to $614 million from $400 million in the second quarter of 2024[11] - Total funding decreased slightly to $98.3 billion from $98.7 billion in the second quarter of 2024[35] Outlook Revision - The company revised its full-year 2025 net revenue outlook to $150 billion - $153 billion, down from the previous outlook of $152 billion - $157 billion[37] - The company revised its full-year 2025 net charge-offs outlook to 5.6% - 5.8%, improved from the previous outlook of 5.8% - 6.0%[37]

Exhibit 99.2 FINANCIAL SUMMARY (unaudited, in millions, except per share statistics) | Quarter Ended | | | | | | | | | | | | | | | Six Months Ended | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | Jun 30, Mar 31, Dec 31, Sep 30, | | | | | | | | | | Jun 30, | | | | Jun 30, | | Jun 30, | | | | | 2025 2025 | | | | | | 2024 | | 2024 | | 2024 | | 2Q'25 vs. 2Q'24 | | 2025 | | 2024 | | YTD'25 vs. YTD'24 | | | EARNINGS | | | | | | ...