Core Insights - Synchrony Financial plans to reverse recent credit tightening as delinquencies and charge-offs decline, indicating strong consumer credit health despite economic concerns [1][8] Financial Performance - Synchrony reported a revenue of $3.82 billion, slightly above analysts' expectations of $3.8 billion, and net income of $1.1 billion, or $2.86 per diluted share, reflecting a 39.9% increase year-over-year [6] - Net interest income rose by 2.4% to $4.7 billion, with net interest margin increasing by 58 basis points to 15.6% [7] - Provisions for credit losses decreased by 39% year-over-year to $1.1 billion, while purchase volume increased by 2% to $46 billion [4] Credit Quality - Net charge-offs fell by 90 basis points to 5.16%, 30-day delinquencies dropped by 37 basis points to 4.39%, and 90-day delinquencies declined by 21 basis points to 2.12% [2][5] - The company plans to unwind about 30% of previous credit tightening actions, focusing on existing customers with credit line increases and upgrades [3] Strategic Actions - Synchrony is taking incremental actions to widen the credit aperture in the fourth quarter, having already loosened credit in its health and wellness business [3] - The board approved an increase in the share repurchase program from $1.1 billion to $2.1 billion through June 30, 2026 [7]

Core Insights - Synchrony's third-quarter profit increased by 37% to $1.1 billion, indicating a stable consumer environment rather than a strained one [1][7] - The earnings report reflects a cautious but improving consumer behavior, with borrowers meeting obligations and maintaining credit discipline despite higher interest rates [4][9] Financial Performance - Net earnings reached $1.1 billion, with earnings per share rising to $2.86 from $1.94, showcasing strong financial health [7] - Purchase volume grew by 2%, reversing two quarters of stagnation, while delinquency and charge-off rates declined, indicating improved borrower behavior [7][8] - Net charge-offs fell to 5.16% of average loan receivables, down 90 basis points from the previous year, and loans 30-plus days delinquent dropped to 4.39% [8] Consumer Behavior - Consumers are adjusting to tighter monetary conditions with discipline, as evidenced by the stabilization of average active accounts and purchase volume [6][10] - Spending patterns indicate a shift towards value and necessity, with consumers favoring digital deals and value retailers while pulling back on big-ticket purchases [1][4] Business Segments - The Digital portfolio saw a 5% growth in purchase volume, reflecting strong performance in eCommerce and FinTech integrations [12] - The Diversified and Value segment grew by 3%, driven by mass-market retailers, while the Home and Auto and Lifestyle platforms contracted by 1% and 3%, respectively [13][14] - The Health and Wellness segment rose by 3%, supported by spending in pet care and elective health services, indicating a focus on essentials [14] Credit Metrics - Loan receivables decreased by 2% to $100.2 billion, suggesting consumers are borrowing cautiously and maintaining manageable balances [9][15] - The net interest margin widened by 58 basis points to 15.62%, indicating sustained lending profitability despite moderated growth [9]

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Financial Data and Key Metrics Changes - Synchrony Financial reported net earnings of $1,100,000,000 or $2.86 per diluted share, with a return on average assets of 3.6% and return on tangible common equity of 30.6% [6][20] - The company generated $46,000,000,000 in purchase volume in Q3 2025, reflecting a year-over-year increase of 2% [6][16] - Ending loan receivables decreased by 2% to $100,000,000,000, influenced by lower prior period purchase volume and higher payment rates [16][20] - Net revenue was flat at $3,800,000,000, with net interest income increasing by 2% to $4,700,000,000 [17][20] Business Line Data and Key Metrics Changes - Purchase volume in Health and Wellness grew by 3%, while Home and Auto was down by 1% and Lifestyle was down by 3% [7][16] - Dual and co-branded cards accounted for 46% of total purchase volume, increasing by 8% year-over-year [7][16] - Average transaction values were approximately 40 basis points higher than last year, with spend frequency up by 3.4% [8][20] Market Data and Key Metrics Changes - The 30-plus delinquency rate decreased to 4.39%, down 39 basis points from the prior year [20][21] - The net charge-off rate was 5.16%, a decrease of 90 basis points from the previous year [21][20] - The allowance for credit losses as a percent of loan receivables was 10.35%, down 24 basis points from the previous quarter [22][20] Company Strategy and Development Direction - The company is gradually reversing some credit tightening in areas with strong risk-adjusted growth opportunities [10][28] - Synchrony added or expanded partnerships with over 15 partners in Q3, including the Toro Company and Lowe's [11][12] - The acquisition of Versatile Credit is expected to enhance access to flexible financing and contribute to long-term growth [13][14] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about consumer resilience and credit performance, noting improvements in spending trends [44][46] - The company expects flat ending receivables for the year, with a loss rate projected between 5.6% and 5.7% [25][26] - The outlook for 2025 includes expectations for net interest margin expansion and stronger delinquency formation [27][25] Other Important Information - Synchrony returned $971,000,000 to shareholders, including $861,000,000 in share repurchases [24][20] - The company has a CET1 ratio of 13.7%, indicating strong capital generation capacity [23][20] Q&A Session Summary Question: What led to the updated revenue guidance? - Management indicated that the guidance was influenced by improved delinquencies and elevated payment rates, which reduced late fee incidents [32][34] Question: Can you provide insights on the credit actions and potential rollbacks? - Management confirmed that any potential rollbacks would occur on a partner-by-partner basis, with no large-scale rollback plans in place [35][36] Question: What is the outlook for consumer behavior and credit performance? - Management noted that the consumer remains resilient, with positive trends in spending and credit performance expected to continue [44][46] Question: How do you view the potential for account growth? - Management highlighted that new accounts were up 10% sequentially and year-over-year, indicating a willingness among consumers to apply for credit [76][77] Question: What are the implications of the delinquency trends for future charge-offs? - Management acknowledged that while delinquency rates have improved, they expect to return to more seasonal trends moving forward [99][100]

Core Insights - Synchrony reported quarterly earnings of $2.86 per share, exceeding the Zacks Consensus Estimate of $2.22 per share, and showing a year-over-year increase from $1.94 per share, resulting in an earnings surprise of +28.83% [1] - The company achieved revenues of $4.72 billion for the quarter ended September 2025, surpassing the Zacks Consensus Estimate by 0.64% and reflecting a year-over-year increase from $4.61 billion [2] - Synchrony has consistently surpassed consensus EPS estimates over the last four quarters, indicating strong performance [2] Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is $1.93 on revenues of $4.83 billion, while for the current fiscal year, the estimate is $8.35 on revenues of $18.51 billion [7] - The company's earnings outlook will be influenced by management's commentary during the earnings call, which is crucial for assessing future stock performance [3][4] Industry Context - The Financial - Miscellaneous Services industry, to which Synchrony belongs, is currently ranked in the top 39% of over 250 Zacks industries, suggesting a favorable environment for stock performance [8] - Empirical research indicates a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can be tracked by investors [5]

Financial Performance - Net earnings available to common stockholders increased by 38% to $1057 million compared to $768 million in the third quarter of 2024[11] - Diluted earnings per share increased by 47% to $2.86 from $1.94 in the third quarter of 2024[9, 11] - Net interest margin increased by 58 basis points to 15.62%[14] - Provision for credit losses decreased by 28%, or $451 million, driven by lower Net charge-offs of $255 million and a reserve release of $152 million[22] Business Segments - Dual Card / Co-Brand loan receivables increased by 13% to $30.6 billion[9] - Dual Card / Co-Brand purchase volume increased by 8% to $21.1 billion[9] - Digital purchase volume increased by 5% to $14 billion[11] Customer Engagement - The company has 68 million average active accounts[7] - Purchase volume reached $46 billion[7] - Loan receivables totaled $100 billion[7] Capital and Liquidity - The company's Common Equity Tier 1 (CET1) capital ratio is 13.7%[9, 24] - The board approved incremental share repurchases of $1 billion, with a total remaining repurchase authorization of $2.1 billion through 2Q'26[6] Outlook - The company expects flat period-end loan receivables growth for the full year 2025[27] - The company revised net revenue outlook to $15.0 - $15.1 billion[27]

Core Insights - Synchrony Financial reported increased profit and revenue in the third quarter, indicating a return to growth in purchase volume driven by stronger consumer spending trends [1] Financial Performance - The company experienced higher profit and revenue in the third quarter compared to previous periods, reflecting a positive shift in consumer behavior and spending [1]

Core Insights - Synchrony Financial reported third-quarter net revenue of $3.82 billion, net income of $1.1 billion, and earnings per share of $2.86 [1] Financial Performance - The company achieved a net revenue of $3.82 billion in the third quarter [1] - Net income for the quarter was reported at $1.1 billion [1] - Earnings per share stood at $2.86 [1]

Financial Summary [Earnings](index=1&type=section&id=EARNINGS) The company achieved significant earnings growth in Q3 2025, with net income and EPS substantially increasing, primarily due to reduced credit loss provisions, though year-to-date net income declined due to a significant decrease in other income Earnings Performance Summary | Indicator | Q3 2025 | YoY Change (3Q'25 vs. 3Q'24) | YTD 2025 | YoY Change (YTD'25 vs. YTD'24) | | :--------------------------------- | :------------- | :-------------------------- | :------------- | :-------------------------- | | **Net Interest Income** | $4,720 million | 2.4% Increase | $13,705 million | 2.1% Increase | | **Net Income** | $3,823 million | 0.2% Increase | $11,188 million | (9.2)% Decrease | | **Provision for Credit Losses** | $1,146 million | (28.2)% Decrease | $3,783 million | (26.9)% Decrease | | **Net Earnings** | $1,077 million | 36.5% Increase | $2,801 million | 2.8% Increase | | **Net Earnings Attributable to Common Stockholders** | $1,057 million | 37.6% Increase | $2,739 million | 2.4% Increase | | **Diluted EPS** | $2.86 | 47.4% Increase | $7.22 | 8.6% Increase | - In Q3 2025, the provision for credit losses significantly decreased by **28.2% year-over-year**, a key driver of net earnings growth[1](index=1&type=chunk) - Year-to-date, other income significantly decreased by **71.7% year-over-year**, leading to an overall **9.2% decline in net income**[1](index=1&type=chunk) [Common Share Statistics](index=1&type=section&id=COMMON%20SHARE%20STATISTICS) The company's common stock EPS and book value both saw significant growth in Q3 2025, with increased dividends per share, while period-end common shares decreased due to share repurchases Common Share Statistics Summary | Indicator | Q3 2025 | YoY Change (3Q'25 vs. 3Q'24) | YTD 2025 | YoY Change (YTD'25 vs. YTD'24) | | :--------------------------------- | :------------- | :-------------------------- | :------------- | :-------------------------- | | **Basic EPS** | $2.89 | 47.4% Increase | $7.29 | 8.6% Increase | | **Diluted EPS** | $2.86 | 47.4% Increase | $7.22 | 8.6% Increase | | **Dividends Per Share** | $0.30 | 20.0% Increase | $0.60 | (20.0)% Decrease | | **Common Stock Price** | $71.05 | 42.4% Increase | $71.05 | 42.4% Increase | | **Book Value Per Share** | $44.00 | 16.0% Increase | $44.00 | 16.0% Increase | | **Tangible Book Value Per Share** | $37.93 | 16.1% Increase | $37.93 | 16.1% Increase | | **Period-End Common Shares (millions)** | 360.1 | (7.5)% Decrease | 360.1 | (7.5)% Decrease | | **Shares Repurchased (millions)** | (12.1) | 83.3% Increase | (20.9) | (0.5)% Decrease | - In Q3 2025, dividends per share increased by **20.0% year-over-year**, but year-to-date dividends per share decreased by **20.0%**[1](index=1&type=chunk) - Period-end common shares decreased by **7.5% year-over-year**, indicating share repurchases that helped boost EPS and book value per share[1](index=1&type=chunk) Selected Metrics [Performance Metrics](index=2&type=section&id=PERFORMANCE%20METRICS) The company achieved strong profitability improvements in Q3 2025, with significant growth in ROA, ROE, and ROTE, alongside an improved net interest margin, while the efficiency ratio slightly increased but remained healthy Key Performance Metrics | Indicator | Q3 2025 | YoY Change (3Q'25 vs. 3Q'24) | YTD 2025 | YoY Change (YTD'25 vs. YTD'24) | | :------------------------------------------------- | :------------- | :-------------------------- | :------------- | :-------------------------- | | **Return on Assets (ROA)** | 3.6% | 1.0% Increase | 3.1% | 0.1% Increase | | **Return on Equity (ROE)** | 25.1% | 5.3% Increase | 22.2% | (1.6)% Decrease | | **Return on Tangible Common Equity (ROTE)** | 30.6% | 6.3% Increase | 27.1% | (2.0)% Decrease | | **Net Interest Margin (NIM)** | 15.62% | 0.58% Increase | 15.05% | 0.37% Increase | | **Efficiency Ratio** | 32.6% | 1.4% Increase | 33.4% | 4.4% Increase | | **Effective Income Tax Rate** | 24.6% | 1.4% Increase | 23.7% | (0.2)% Decrease | - In Q3 2025, Return on Assets, Return on Equity, and Return on Tangible Common Equity all showed significant growth, reaching **3.6%**, **25.1%**, and **30.6%**, respectively[2](index=2&type=chunk) - Net Interest Margin increased by **0.58% year-over-year** to **15.62%** in Q3 2025, indicating improved interest income management[2](index=2&type=chunk) [Credit Quality Metrics](index=2&type=section&id=CREDIT%20QUALITY%20METRICS) The company's credit quality metrics in Q3 2025 showed an improving trend, with decreases in net charge-off rate and delinquent loan ratios, and a slight reduction in the allowance for credit losses coverage ratio Credit Quality Metrics Summary | Indicator | Q3 2025 | YoY Change (3Q'25 vs. 3Q'24) | YTD 2025 | YoY Change (YTD'25 vs. YTD'24) | | :------------------------------------------------- | :------------- | :-------------------------- | :------------- | :-------------------------- | | **Net Charge-Off Rate (% of average loan receivables)** | 5.16% | (0.90)% Decrease | 5.74% | (0.52)% Decrease | | **30+ Day Delinquent Loans (% of period-end loan receivables)** | 4.39% | (0.39)% Decrease | 4.39% | (0.39)% Decrease | | **90+ Day Delinquent Loans (% of period-end loan receivables)** | 2.12% | (0.21)% Decrease | 2.12% | (0.21)% Decrease | | **Allowance for Credit Losses (period-end)** | $10,373 million | (5.9)% Decrease | $10,373 million | (5.9)% Decrease | | **Coverage Ratio** | 10.35% | (0.44)% Decrease | 10.35% | (0.44)% Decrease | - The net charge-off rate and 30+ day and 90+ day delinquent loan ratios all decreased year-over-year in Q3 2025, indicating an alleviation of credit risk[2](index=2&type=chunk) - Period-end allowance for credit losses decreased by **5.9% year-over-year** to **$10,373 million**, with the coverage ratio also declining by **0.44%** to **10.35%**[2](index=2&type=chunk) [Business Metrics](index=2&type=section&id=BUSINESS%20METRICS) In Q3 2025, the company's purchase volume slightly increased, but period-end loan receivables and active accounts both decreased, reflecting a minor contraction in business scale Business Metrics Summary | Indicator | Q3 2025 | YoY Change (3Q'25 vs. 3Q'24) | YTD 2025 | YoY Change (YTD'25 vs. YTD'24) | | :------------------------------------------------- | :------------- | :-------------------------- | :------------- | :-------------------------- | | **Purchase Volume** | $46,005 million | 2.3% Increase | $132,809 million | (1.0)% Decrease | | **Period-End Loan Receivables** | $100,178 million | (2.0)% Decrease | $100,178 million | (2.0)% Decrease | | **Credit Card Loan Receivables** | $92,550 million | (1.6)% Decrease | $92,550 million | (1.6)% Decrease | | **Consumer Installment Loan Receivables** | $5,584 million | (8.8)% Decrease | $5,584 million | (8.8)% Decrease | | **Commercial Credit Product Receivables** | $1,961 million | 1.3% Increase | $1,961 million | 1.3% Increase | | **Period-End Active Accounts (thousands)** | 68,585 | (2.0)% Decrease | 68,585 | (2.0)% Decrease | | **Average Active Accounts (thousands)** | 68,318 | (3.0)% Decrease | 68,676 | (3.3)% Decrease | - Q3 2025 purchase volume increased by **2.3% year-over-year**, but year-to-date purchase volume decreased by **1.0%**[2](index=2&type=chunk) - Period-end loan receivables and active accounts both decreased year-over-year, with consumer installment loan receivables showing the most significant decline at **8.8%**[2](index=2&type=chunk) [Liquidity](index=2&type=section&id=LIQUIDITY) The company's liquidity metrics in Q3 2025 showed decreases in cash and cash equivalents and total liquid assets, with a significant reduction in undrawn credit lines, leading to a lower proportion of total liquidity to total assets Liquidity Metrics Summary | Indicator | Q3 2025 | YoY Change (3Q'25 vs. 3Q'24) | | :------------------------------------------------- | :------------- | :-------------------------- | | **Cash and Cash Equivalents** | $16,245 million | (9.4)% Decrease | | **Total Liquid Assets** | $18,234 million | (7.5)% Decrease | | **Undrawn Credit Lines** | $2,125 million | (21.3)% Decrease | | **Total Liquid Assets and Undrawn Credit Lines** | $20,359 million | (9.1)% Decrease | | **Liquid Assets as % of Total Assets** | 15.59% | (0.94)% Decrease | | **Liquid Assets (incl. Undrawn Credit Lines) as % of Total Assets** | 17.40% | (1.39)% Decrease | - Cash and cash equivalents and total liquid assets decreased by **9.4%** and **7.5% year-over-year**, respectively, in Q3 2025[2](index=2&type=chunk) - Undrawn credit lines significantly decreased by **21.3%** to **$2,125 million**, impacting overall liquidity levels[2](index=2&type=chunk) Statements of Earnings [Interest Income and Expense](index=3&type=section&id=Interest%20Income%20and%20Expense) In Q3 2025, total interest income slightly decreased, mainly due to lower interest income from cash and debt securities, but a significant drop in total interest expense, particularly deposit interest expense, drove net interest income growth Interest Income and Expense Summary | Indicator | Q3 2025 | YoY Change (3Q'25 vs. 3Q'24) | YTD 2025 | YoY Change (YTD'25 vs. YTD'24) | | :--------------------------------- | :------------- | :-------------------------- | :------------- | :-------------------------- | | **Interest and Fees on Loans** | $5,510 million | (0.2)% Decrease | $16,150 million | 0.2% Increase | | **Interest on Cash and Debt Securities** | $221 million | (16.0)% Decrease | $717 million | (12.5)% Decrease | | **Total Interest Income** | $5,731 million | (0.9)% Decrease | $16,867 million | (0.4)% Decrease | | **Interest Expense on Deposits** | $812 million | (16.1)% Decrease | $2,549 million | (11.8)% Decrease | | **Total Interest Expense** | $1,011 million | (14.0)% Decrease | $3,162 million | (10.1)% Decrease | | **Net Interest Income** | $4,720 million | 2.4% Increase | $13,705 million | 2.1% Increase | - In Q3 2025, total interest income decreased by **0.9% year-over-year**, but total interest expense significantly declined by **14.0%**, primarily due to a **16.1% reduction** in deposit interest expense[6](index=6&type=chunk) - Net interest income increased by **2.4% year-over-year** to **$4,720 million** in Q3 2025, and also grew by **2.1% year-to-date**[6](index=6&type=chunk) [Other Income and Expense](index=3&type=section&id=Other%20Income%20and%20Expense) In Q3 2025, other income slightly increased, but year-to-date other income significantly decreased, mainly due to a sharp decline in the 'Other' category, while other expenses rose, driven by personnel and information processing costs Other Income and Expense Summary | Indicator | Q3 2025 | YoY Change (3Q'25 vs. 3Q'24) | YTD 2025 | YoY Change (YTD'25 vs. YTD'24) | | :--------------------------------- | :------------- | :-------------------------- | :------------- | :-------------------------- | | **Retailer Share Arrangements** | $(1,024) million | 12.0% Increase (negative) | $(2,911) million | 17.0% Increase (negative) | | **Provision for Credit Losses** | $1,146 million | (28.2)% Decrease | $3,783 million | (26.9)% Decrease | | **Total Other Income** | $127 million | 6.7% Increase | $394 million | (71.7)% Decrease | | **Personnel Expenses** | $503 million | 8.4% Increase | $1,518 million | 8.9% Increase | | **Information Processing Expenses** | $226 million | 11.3% Increase | $660 million | 10.7% Increase | | **Total Other Expenses** | $1,248 million | 5.0% Increase | $3,736 million | 4.6% Increase | | **Earnings Before Income Taxes** | $1,429 million | 39.0% Increase | $3,669 million | 2.5% Increase | | **Provision for Income Taxes** | $352 million | 47.3% Increase | $868 million | 1.5% Increase | | **Net Earnings** | $1,077 million | 36.5% Increase | $2,801 million | 2.8% Increase | - In Q3 2025, retailer share arrangements expense increased by **12.0% year-over-year**, while the provision for credit losses significantly decreased by **28.2%**[6](index=6&type=chunk) - Year-to-date, 'Other' income within total other income sharply decreased by **82.6% year-over-year**, leading to a **71.7% decline** in total other income[6](index=6&type=chunk) - Personnel expenses and information processing expenses increased in both Q3 2025 and year-to-date periods, contributing to the rise in total other expenses[6](index=6&type=chunk) Statements of Financial Position [Assets](index=4&type=section&id=Assets) As of September 30, 2025, total assets slightly decreased year-over-year, primarily due to reductions in cash and cash equivalents and net loan receivables, though debt securities and net intangible assets increased Assets Summary | Indicator | Sep 30, 2025 | YoY Change (Sep 30, 2025 vs. Sep 30, 2024) | | :--------------------------------- | :------------- | :--------------------------------------- | | **Cash and Cash Equivalents** | $16,245 million | (9.4)% Decrease | | **Debt Securities** | $2,716 million | 15.8% Increase | | **Total Loan Receivables** | $100,178 million | (2.0)% Decrease | | **Less: Allowance for Credit Losses** | $(10,373) million | (5.9)% Decrease (negative) | | **Net Loan Receivables** | $89,805 million | (1.5)% Decrease | | **Net Intangible Assets** | $909 million | 18.8% Increase | | **Total Assets** | $116,984 million | (1.9)% Decrease | - Total assets decreased by **1.9% year-over-year** to **$116,984 million**, mainly due to reductions in cash and cash equivalents and net loan receivables[7](index=7&type=chunk) - The allowance for credit losses decreased by **5.9% year-over-year**, resulting in a smaller decline in net loan receivables compared to total loan receivables[7](index=7&type=chunk) [Liabilities and Equity](index=4&type=section&id=Liabilities%20and%20Equity) As of September 30, 2025, total liabilities decreased year-over-year, driven by reductions in deposits and borrowings, while total equity increased, primarily due to higher retained earnings, partially offset by increased treasury stock Liabilities and Equity Summary | Indicator | Sep 30, 2025 | YoY Change (Sep 30, 2025 vs. Sep 30, 2024) | | :--------------------------------- | :------------- | :--------------------------------------- | | **Total Deposits** | $79,886 million | (2.9)% Decrease | | **Total Borrowings** | $14,431 million | (7.7)% Decrease | | **Total Liabilities** | $99,919 million | (3.2)% Decrease | | **Retained Earnings** | $23,978 million | 14.3% Increase | | **Treasury Stock** | $(17,956) million | 12.3% Increase (negative) | | **Total Equity** | $17,065 million | 6.8% Increase | | **Total Liabilities and Equity** | $116,984 million | (1.9)% Decrease | - Total liabilities decreased by **3.2% year-over-year** to **$99,919 million**, with deposits and borrowings declining by **2.9%** and **7.7%**, respectively[7](index=7&type=chunk) - Total equity increased by **6.8% year-over-year** to **$17,065 million**, driven by a **14.3% growth** in retained earnings, partially offset by a **12.3% increase** in treasury stock[7](index=7&type=chunk) Average Balances, Net Interest Income and Net Interest Margin [Quarter Ended](index=5&type=section&id=Quarter%20Ended) In Q3 2025, average earning assets and liabilities both decreased, but net interest income still grew due to a larger decline in interest expense than interest income, improving net interest margin and interest rate spread Quarterly Average Balances, Net Interest Income and Net Interest Margin | Indicator | Q3 2025 Average Balance | Q3 2025 Interest Income/Expense | Q3 2025 Yield/Rate | | :--------------------------------- | :--------------------- | :-------------------------- | :------------------------ | | **Total Earning Assets** | $119,888 million | $5,731 million | 18.97% | | **Total Interest-Bearing Liabilities** | $95,419 million | $1,011 million | 4.20% | | **Net Interest Income** | | $4,720 million | | | **Interest Rate Spread** | | | 14.76% | | **Net Interest Margin** | | | 15.62% | - In Q3 2025, the average balance of total earning assets decreased year-over-year, but net interest income increased by **2.4%** to **$4,720 million**[1](index=1&type=chunk)[8](index=8&type=chunk) - Net interest margin rose from **15.04%** in the prior year to **15.62%**, and the interest rate spread also increased from **14.10%** to **14.76%**, indicating enhanced profitability[2](index=2&type=chunk)[8](index=8&type=chunk) [Nine Months Ended](index=6&type=section&id=Nine%20Months%20Ended) Year-to-date 2025, average earning assets and liabilities remained relatively stable, with net interest income slightly increasing, and both net interest margin and interest rate spread improving, reflecting sustained full-year profitability enhancement Year-to-Date Average Balances, Net Interest Income and Net Interest Margin | Indicator | YTD 2025 Average Balance | YTD 2025 Interest Income/Expense | YTD 2025 Yield/Rate | | :--------------------------------- | :--------------------- | :-------------------------- | :------------------------ | | **Total Earning Assets** | $121,786 million | $16,867 million | 18.52% | | **Total Interest-Bearing Liabilities** | $97,335 million | $3,162 million | 4.34% | | **Net Interest Income** | | $13,705 million | | | **Interest Rate Spread** | | | 14.17% | | **Net Interest Margin** | | | 15.05% | - Year-to-date 2025, net interest income increased by **2.1%** to **$13,705 million**[1](index=1&type=chunk)[10](index=10&type=chunk) - Net interest margin rose from **14.68%** in the prior year to **15.05%**, and the interest rate spread also increased from **13.76%** to **14.17%**[2](index=2&type=chunk)[10](index=10&type=chunk) Balance Sheet Statistics [Balance Sheet Key Statistics](index=7&type=section&id=BALANCE%20SHEET%20STATISTICS) As of September 30, 2025, the company's total common equity and tangible common equity both achieved significant growth, with a substantial increase in tangible book value per share, reflecting enhanced shareholder value Balance Sheet Key Statistics Summary | Indicator | Sep 30, 2025 | YoY Change (Sep 30, 2025 vs. Sep 30, 2024) | | :--------------------------------- | :------------- | :--------------------------------------- | | **Total Common Equity** | $15,843 million | 7.4% Increase | | **Total Common Equity as % of Total Assets** | 13.54% | 1.16% Increase | | **Tangible Assets** | $114,801 million | (2.0)% Decrease | | **Tangible Common Equity** | $13,660 million | 7.4% Increase | | **Tangible Common Equity as % of Tangible Assets** | 11.90% | 1.05% Increase | | **Tangible Book Value Per Share** | $37.93 | 16.1% Increase | - Total common equity and tangible common equity both increased by **7.4% year-over-year**, demonstrating the company's strengthened capital base[12](index=12&type=chunk) - Tangible book value per share increased by **16.1% year-over-year** to **$37.93**, reflecting efforts to enhance shareholder value[12](index=12&type=chunk) [Regulatory Capital Ratios](index=7&type=section&id=REGULATORY%20CAPITAL%20RATIOS) As of September 30, 2025, the company's regulatory capital ratios remained healthy and improved year-over-year, indicating a robust capital adequacy position Regulatory Capital Ratios | Indicator | Sep 30, 2025 | | :--------------------------------- | :------------- | | **Total Risk-Weighted Capital Ratio** | 17.0% | | **Tier 1 Risk-Weighted Capital Ratio** | 14.9% | | **Tier 1 Leverage Ratio** | 13.0% | | **Common Equity Tier 1 Capital Ratio** | 13.7% | - All regulatory capital ratios were higher than the prior year, with the total risk-weighted capital ratio increasing from **16.4% to 17.0%**, and the Common Equity Tier 1 capital ratio rising from **13.1% to 13.7%**[12](index=12&type=chunk) - Capital ratios reflect the impact of CECL (Current Expected Credit Losses) being phased into regulatory capital at **100% in 2025** and **75% in 2024**[14](index=14&type=chunk) Platform Results [Home & Auto Platform](index=8&type=section&id=HOME%20%26%20AUTO) The Home & Auto platform saw declines in purchase volume, period-end loan receivables, and average active accounts in Q3 2025 and year-to-date, leading to reduced interest and fee income, with some loan receivables reclassified to 'Corporate & Other' Home & Auto Platform Performance | Indicator | Q3 2025 | YoY Change (3Q'25 vs. 3Q'24) | YTD 2025 | YoY Change (YTD'25 vs. YTD'24) | | :--------------------------------- | :------------- | :-------------------------- | :------------- | :-------------------------- | | **Purchase Volume** | $11,061 million | (1.4)% Decrease | $31,966 million | (5.9)% Decrease | | **Period-End Loan Receivables** | $30,295 million | (6.3)% Decrease | $30,295 million | (6.3)% Decrease | | **Average Active Accounts (thousands)** | 17,749 | (6.7)% Decrease | 17,831 | (6.2)% Decrease | | **Interest and Fees on Loans** | $1,443 million | (2.4)% Decrease | $4,240 million | (0.5)% Decrease | | **Other Income** | $54 million | (1.8)% Decrease | $162 million | 30.6% Increase | - In June 2025, the company entered into an agreement to sell **$200 million** of Home & Auto program loan receivables, leading to reclassification and declines in some platform metrics[16](index=16&type=chunk) - Despite decreases in purchase volume and loan receivables, year-to-date other income increased by **30.6%**[16](index=16&type=chunk) [Digital Platform](index=8&type=section&id=DIGITAL) The Digital platform achieved growth in purchase volume and period-end loan receivables in Q3 2025, with a corresponding increase in interest and fee income, though average active accounts slightly decreased Digital Platform Performance | Indicator | Q3 2025 | YoY Change (3Q'25 vs. 3Q'24) | YTD 2025 | YoY Change (YTD'25 vs. YTD'24) | | :--------------------------------- | :------------- | :-------------------------- | :------------- | :-------------------------- | | **Purchase Volume** | $14,044 million | 5.2% Increase | $40,170 million | 2.0% Increase | | **Period-End Loan Receivables** | $28,179 million | 1.5% Increase | $28,179 million | 1.5% Increase | | **Average Active Accounts (thousands)** | 20,680 | (0.5)% Decrease | 20,627 | (1.9)% Decrease | | **Interest and Fees on Loans** | $1,631 million | 2.4% Increase | $4,751 million | 1.0% Increase | | **Other Income** | $(2) million | (150.0)% Decrease | $7 million | (30.0)% Decrease | - The Digital platform's purchase volume increased by **5.2% year-over-year** and period-end loan receivables grew by **1.5% year-over-year** in Q3 2025[16](index=16&type=chunk) - Interest and fees on loans increased by **2.4% year-over-year**, but other income significantly decreased by **150.0%**[16](index=16&type=chunk) [Diversified & Value Platform](index=8&type=section&id=DIVERSIFIED%20%26%20VALUE) The Diversified & Value platform saw slight growth in purchase volume and period-end loan receivables in Q3 2025, but interest and fee income decreased, and average active accounts continued to decline Diversified & Value Platform Performance | Indicator | Q3 2025 | YoY Change (3Q'25 vs. 3Q'24) | YTD 2025 | YoY Change (YTD'25 vs. YTD'24) | | :--------------------------------- | :------------- | :-------------------------- | :------------- | :-------------------------- | | **Purchase Volume** | $15,417 million | 2.8% Increase | $44,542 million | 0.4% Increase | | **Period-End Loan Receivables** | $19,500 million | 0.2% Increase | $19,500 million | 0.2% Increase | | **Average Active Accounts (thousands)** | 19,470 | (2.5)% Decrease | 19,735 | (3.5)% Decrease | | **Interest and Fees on Loans** | $1,192 million | (1.4)% Decrease | $3,529 million | (1.6)% Decrease | | **Other Income** | $(3) million | (72.7)% Decrease | $(6) million | (88.0)% Decrease | - Q3 2025 purchase volume increased by **2.8% year-over-year**, and period-end loan receivables grew by **0.2% year-over-year**[16](index=16&type=chunk) - Interest and fees on loans decreased by **1.4% year-over-year**, and other income significantly declined by **72.7%**[16](index=16&type=chunk) [Health & Wellness Platform](index=8&type=section&id=HEALTH%20%26%20WELLNESS) The Health & Wellness platform experienced slight growth in purchase volume and period-end loan receivables in Q3 2025, with a corresponding increase in interest and fee income, and other income saw significant growth Health & Wellness Platform Performance | Indicator | Q3 2025 | YoY Change (3Q'25 vs. 3Q'24) | YTD 2025 | YoY Change (YTD'25 vs. YTD'24) | | :--------------------------------- | :------------- | :-------------------------- | :------------- | :-------------------------- | | **Purchase Volume** | $3,976 million | 2.8% Increase | $11,757 million | (1.5)% Decrease | | **Period-End Loan Receivables** | $15,447 million | 0.1% Increase | $15,447 million | 0.1% Increase | | **Average Active Accounts (thousands)** | 7,730 | (0.9)% Decrease | 7,743 | 0.4% Increase | | **Interest and Fees on Loans** | $967 million | 1.2% Increase | $2,804 million | 2.5% Increase | | **Other Income** | $73 million | 7.4% Increase | $214 million | 17.6% Increase | - Q3 2025 purchase volume increased by **2.8% year-over-year**, and period-end loan receivables grew by **0.1% year-over-year**[16](index=16&type=chunk) - Interest and fees on loans increased by **1.2% year-over-year**, and other income grew by **7.4% year-over-year**[16](index=16&type=chunk) [Lifestyle Platform](index=8&type=section&id=LIFESTYLE) The Lifestyle platform saw declines in purchase volume, period-end loan receivables, and average active accounts in Q3 2025, with a slight decrease in interest and fee income, though other income achieved significant growth Lifestyle Platform Performance | Indicator | Q3 2025 | YoY Change (3Q'25 vs. 3Q'24) | YTD 2025 | YoY Change (YTD'25 vs. YTD'24) | | :--------------------------------- | :------------- | :-------------------------- | :------------- | :-------------------------- | | **Purchase Volume** | $1,371 million | (2.8)% Decrease | $3,971 million | (5.0)% Decrease | | **Period-End Loan Receivables** | $6,644 million | (2.7)% Decrease | $6,644 million | (2.7)% Decrease | | **Average Active Accounts (thousands)** | 2,543 | (5.0)% Decrease | 2,583 | (3.2)% Decrease | | **Interest and Fees on Loans** | $264 million | (2.2)% Decrease | $786 million | 0.4% Increase | | **Other Income** | $11 million | 22.2% Increase | $30 million | 30.4% Increase | - Q3 2025 purchase volume decreased by **2.8% year-over-year**, and period-end loan receivables declined by **2.7% year-over-year**[16](index=16&type=chunk) - Interest and fees on loans decreased by **2.2% year-over-year**, but other income increased by **22.2% year-over-year**[16](index=16&type=chunk) [Corporate & Other](index=8&type=section&id=CORP%2C%20OTHER) The Corporate & Other category experienced significant declines in period-end loan receivables and average active accounts in Q3 2025 and year-to-date, mainly due to reclassification from the Home & Auto platform, with other income showing significant negative growth year-to-date Corporate & Other Performance | Indicator | Q3 2025 | YoY Change (3Q'25 vs. 3Q'24) | YTD 2025 | YoY Change (YTD'25 vs. YTD'24) | | :--------------------------------- | :------------- | :-------------------------- | :------------- | :-------------------------- | | **Purchase Volume** | $136 million | (8.1)% Decrease | $403 million | (2.9)% Decrease | | **Period-End Loan Receivables** | $113 million | (69.0)% Decrease | $113 million | (69.0)% Decrease | | **Average Active Accounts (thousands)** | 146 | (13.6)% Decrease | 157 | (16.5)% Decrease | | **Interest and Fees on Loans** | $13 million | (13.3)% Decrease | $40 million | (11.1)% Decrease | | **Other Income** | $(6) million | 0.0% Change | $(13) million | (101.2)% Decrease | - Period-end loan receivables significantly decreased by **69.0% year-over-year**, and average active accounts declined by **13.6% year-over-year**, primarily due to reclassification of loan receivables from the Home & Auto platform[16](index=16&type=chunk) - Year-to-date other income significantly decreased by **101.2%** to **negative $13 million**[16](index=16&type=chunk) [Total Synchrony Financial](index=8&type=section&id=TOTAL%20SYF) Synchrony Financial's purchase volume slightly increased in Q3 2025, but period-end loan receivables and average active accounts both decreased, with interest and fee income remaining stable, though year-to-date other income significantly declined Total Synchrony Financial Performance | Indicator | Q3 2025 | YoY Change (3Q'25 vs. 3Q'24) | YTD 2025 | YoY Change (YTD'25 vs. YTD'24) | | :--------------------------------- | :------------- | :-------------------------- | :------------- | :-------------------------- | | **Purchase Volume** | $46,005 million | 2.3% Increase | $132,809 million | (1.0)% Decrease | | **Period-End Loan Receivables** | $100,178 million | (2.0)% Decrease | $100,178 million | (2.0)% Decrease | | **Average Active Accounts (thousands)** | 68,318 | (3.0)% Decrease | 68,676 | (3.3)% Decrease | | **Interest and Fees on Loans** | $5,510 million | (0.2)% Decrease | $16,150 million | 0.2% Increase | | **Other Income** | $127 million | 6.7% Increase | $394 million | (71.7)% Decrease | - Q3 2025 purchase volume increased by **2.3% year-over-year**, but period-end loan receivables decreased by **2.0% year-over-year**[16](index=16&type=chunk) - Average active accounts decreased by **3.0% year-over-year**, reflecting a slight contraction in the overall customer base[16](index=16&type=chunk) - Year-to-date other income significantly decreased by **71.7%**, negatively impacting overall net income[16](index=16&type=chunk) Reconciliation of Non-GAAP Measures and Calculations of Regulatory Measures [Common Equity and Regulatory Capital Measures](index=9&type=section&id=COMMON%20EQUITY%20AND%20REGULATORY%20CAPITAL%20MEASURES) The company provided a reconciliation from GAAP total equity to tangible common equity and various regulatory capital measures (CET1, Tier 1, Total Risk-Weighted Capital), demonstrating a robust capital base and adequate regulatory capital levels Reconciliation of Common Equity and Regulatory Capital Measures | Indicator | Sep 30, 2025 | Sep 30, 2024 | | :------------------------------------------------- | :------------- | :------------- | | **GAAP Total Equity** | $17,065 million | $15,980 million | | **Less: Preferred Stock** | $(1,222) million | $(1,222) million | | **Less: Goodwill** | $(1,274) million | $(1,274) million | | **Less: Net Intangible Assets** | $(909) million | $(765) million | | **Tangible Common Equity** | $13,660 million | $12,719 million | | **Common Equity Tier 1 Capital** | $13,910 million | $13,501 million | | **Tier 1 Capital** | $15,132 million | $14,723 million | | **Total Risk-Weighted Capital** | $17,258 million | $16,864 million | - Tangible common equity increased by **7.4% year-over-year** to **$13,660 million**, and Common Equity Tier 1 capital grew by **3.0% year-over-year** to **$13,910 million**[12](index=12&type=chunk)[20](index=20&type=chunk) - Regulatory capital measures include CECL transition adjustments, phased in at **100% in 2025** and **75% in 2024**[21](index=21&type=chunk) [Asset Measures](index=9&type=section&id=ASSET%20MEASURES) The company provided a reconciliation from total average assets to total assets for leverage purposes and risk-weighted assets, showing the asset base used for regulatory calculations after certain adjustments Asset Measures Reconciliation | Indicator | Sep 30, 2025 | Sep 30, 2024 | | :------------------------------------------------- | :------------- | :------------- | | **Total Average Assets** | $118,157 million | $119,389 million | | **Total Assets for Leverage Purposes** | $116,240 million | $118,154 million | | **Risk-Weighted Assets** | $101,724 million | $103,103 million | - Total assets for leverage purposes decreased by **1.6% year-over-year** to **$116,240 million**, and risk-weighted assets declined by **1.3% year-over-year** to **$101,724 million**[20](index=20&type=chunk) - Asset measures include CECL transition adjustments and adjustments for goodwill and other intangible assets[20](index=20&type=chunk) [CECL Fully Phased-in Capital Measures](index=9&type=section&id=CECL%20FULLY%20PHASED-IN%20CAPITAL%20MEASURES) The company presented Tier 1 capital and risk-weighted assets after full CECL transition, along with the total of Tier 1 capital plus allowance for credit losses, providing a more comprehensive view of capital adequacy CECL Fully Phased-in Capital Measures | Indicator | Sep 30, 2025 | Sep 30, 2024 | | :------------------------------------------------- | :------------- | :------------- | | **Tier 1 Capital (CECL Fully Phased-in)** | $15,132 million | $14,150 million | | **Tier 1 Capital (CECL Fully Phased-in) + Allowance for Credit Losses** | $25,505 million | $25,179 million | | **Risk-Weighted Assets (CECL Fully Phased-in)** | $101,724 million | $102,813 million | - Tier 1 capital after full CECL transition increased by **6.9% year-over-year** to **$15,132 million**[20](index=20&type=chunk) - The total of Tier 1 capital plus allowance for credit losses after full CECL transition increased by **1.3% year-over-year** to **$25,505 million**[20](index=20&type=chunk) [Tangible Book Value Per Share](index=9&type=section&id=TANGIBLE%20BOOK%20VALUE%20PER%20SHARE) The company provided a reconciliation from book value per share to tangible book value per share, offering a more conservative measure of shareholder value by deducting goodwill and net intangible assets per share Tangible Book Value Per Share Reconciliation | Indicator | Sep 30, 2025 | Sep 30, 2024 | | :--------------------------------- | :------------- | :------------- | | **Book Value Per Share** | $44.00 | $37.92 | | **Less: Goodwill** | $(3.55) | $(3.27) | | **Less: Net Intangible Assets** | $(2.52) | $(1.97) | | **Tangible Book Value Per Share** | $37.93 | $32.68 | - Tangible book value per share increased by **16.1% year-over-year** to **$37.93**, surpassing the growth in book value per share[12](index=12&type=chunk)[20](index=20&type=chunk)