Synchrony(US:SYF)2026-01-27 11:01Financial Performance - Net interest income for Q4 2025 was $4,761 million, an increase of 3.7% compared to Q4 2024[1] - Net revenue decreased by 0.2% year-over-year to $3,793 million in Q4 2025[1] - Provision for credit losses decreased by 7.6% to $1,442 million in Q4 2025 compared to Q4 2024[1] - Net earnings for Q4 2025 were $751 million, down 3.0% from $1,077 million in Q4 2024[1] - Basic EPS for Q4 2025 was $2.07, a decrease of 7.3% from $2.89 in Q4 2024[1] - Dividend declared per share increased by 20.0% to $0.30 in Q4 2025 compared to Q4 2024[1] - Common stock price rose by 28.4% to $83.43 at the end of Q4 2025 compared to $65.00 at the end of Q4 2024[1] - Book value per share increased by 13.1% to $44.74 in Q4 2025 from $39.55 in Q4 2024[1] - Shares repurchased in Q4 2025 totaled 13.0 million, a significant increase compared to previous quarters[1] Asset and Liability Management - Total assets decreased by $368 million, or 0.3%, to $119,095 million compared to the previous quarter[7] - Total liabilities decreased by $554 million, or 0.5%, to $102,329 million compared to the previous quarter[7] - Total equity increased by $186 million, or 1.1%, to $16,766 million compared to the previous quarter[7] - Total deposits decreased by $918 million, or 1.1%, to $81,144 million compared to the previous quarter[7] - Goodwill increased by $89 million, or 7.0%, to $1,363 million compared to the previous quarter[7] - Intangible assets increased by $401 million, or 47.0%, to $1,255 million compared to the previous quarter[7] Credit Quality - Return on assets for Q4 2025 was 2.5%, down from 3.0% in Q4 2024, reflecting a decrease of 0.5%[2] - Return on equity decreased to 17.6% in Q4 2025 from 21.1% in Q4 2024, a decline of 3.5%[2] - Net charge-offs for Q4 2025 were $1,367 million, a decrease of 11.8% from $1,588 million in Q4 2024[2] - Allowance for credit losses at period-end was $10,442 million, down 4.5% from $10,929 million in Q4 2024[2] Interest Income and Expense - Total interest income for Q4 2025 was $5,734 million, a slight increase of 0.4% compared to Q4 2024[6] - Interest expense for Q4 2025 was $973 million, a decrease of 13.0% from $1,011 million in Q4 2024[6] - Net interest income after retailer share arrangements and provision for credit losses was $2,225 million, reflecting a 5.4% increase from Q4 2024[6] Segment Performance - Home & Auto segment purchase volume decreased by 1.6% year-over-year to $10,381 million for the quarter ended December 31, 2025, and by 4.9% to $42,347 million for the twelve months ended December 31, 2025[17] - Digital segment purchase volume increased by 5.8% to $16,206 million for the quarter ended December 31, 2025, and by 3.1% to $56,376 million for the twelve months ended December 31, 2025[17] - Total purchase volume for Synchrony Financial increased by 3.2% to $49,476 million for the quarter ended December 31, 2025, and by 0.1% to $182,285 million for the twelve months ended December 31, 2025[17] Capital Ratios and Equity - Total common equity as of December 31, 2025, is $15,544 million, reflecting a 1.2% increase from $15,358 million on December 31, 2024[13] - Tangible common equity decreased to $12,926 million as of December 31, 2025, down 2.3% from $13,230 million a year earlier[13] - Total risk-based capital ratio stands at 15.8% as of December 31, 2025, a decrease from 16.5% on December 31, 2024[13] - Tier 1 risk-based capital ratio is 13.8% as of December 31, 2025, down from 14.5% a year prior[13] Transition to CECL - The company is in the process of transitioning to the CECL framework, with capital ratios reflecting 100% of the phase-in effects for 2025[15] - Regulatory capital ratios are preliminary and subject to change, indicating ongoing adjustments in financial reporting[14]