Core Insights - Synchrony has announced a strategic partnership with Dental Intelligence to integrate CareCredit financing options into their patient relationship management platform, enhancing administrative efficiency for dental practices [1][2]. Partnership Details - The integration will allow dental practices to manage patient financing more intuitively through automated payment communications, including appointment reminders and confirmations [3][4]. - This collaboration aims to simplify financial discussions within dental practices, making it easier for patients to understand their payment options [4][5]. Benefits for Providers and Patients - Providers will have the ability to identify if patients are preapproved for CareCredit, streamlining the financing process throughout the care journey [4]. - The partnership is expected to enhance patient-provider relationships and improve operational efficiency for clinical staff [5]. Company Background - Synchrony has been a leader in consumer lending for nearly 100 years and has specialized in dental financing with CareCredit for over 35 years, accepted by more than 285,000 providers, including 80% of dental practices in the U.S. [6].

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]

Core Insights - Synchrony (SYF) reported quarterly earnings of $2.5 per share, exceeding the Zacks Consensus Estimate of $1.72 per share, and up from $1.55 per share a year ago, representing an earnings surprise of +45.35% [1] - The company achieved revenues of $4.52 billion for the quarter ended June 2025, surpassing the Zacks Consensus Estimate by 0.46% and showing an increase from $4.41 billion year-over-year [2] - Synchrony has consistently surpassed consensus EPS estimates over the last four quarters, with a total of four earnings surprises [2] Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is $2.14 on revenues of $4.68 billion, while for the current fiscal year, the estimate is $7.76 on revenues of $18.47 billion [7] - The company's earnings outlook will be influenced by management's commentary during the earnings call, which is crucial for understanding future stock movements [3][4] Industry Context - Synchrony operates within the Zacks Financial - Miscellaneous Services industry, which is currently ranked in the top 39% of over 250 Zacks industries, indicating a favorable industry outlook [8] - The performance of Synchrony’s stock may also be affected by the overall industry trends, as empirical research shows a strong correlation between stock movements and earnings estimate revisions [5][8] Stock Performance - Synchrony shares have increased by approximately 6.8% since the beginning of the year, compared to a 7.2% gain in the S&P 500 [3] - The current Zacks Rank for Synchrony is 3 (Hold), suggesting that the shares are expected to perform in line with the market in the near future [6]

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 | | | | | | ...