July 16, 2024

Business Active

business the management

Synchrony Reports Fourth Quarter Net Earnings of $738 Million or $1.24 Per Diluted Share

47 min read

STAMFORD, Conn., Jan. 29, 2021 /PRNewswire/ — Synchrony Financial (NYSE: SYF) today announced fourth quarter 2020 earnings results amid the continuing Coronavirus (COVID-19) pandemic. Synchrony reported fourth quarter 2020 net earnings of $738 million, or $1.24 per diluted share.

Key Highlights*.

  • Loan receivables decreased 6{14cc2b5881a050199a960a1a3483042b446231310e72f0dc471a7a1eddd6b0c3} to $81.9 billion
  • Interest and fees on loans decreased 11{14cc2b5881a050199a960a1a3483042b446231310e72f0dc471a7a1eddd6b0c3} to $4.0 billion
  • Purchase volume decreased 1{14cc2b5881a050199a960a1a3483042b446231310e72f0dc471a7a1eddd6b0c3} to $39.9 billion
  • Average active accounts decreased 10{14cc2b5881a050199a960a1a3483042b446231310e72f0dc471a7a1eddd6b0c3} to 66.3 million
  • Deposits decreased $2.3 billion, or 4{14cc2b5881a050199a960a1a3483042b446231310e72f0dc471a7a1eddd6b0c3}, to $62.8 billion
  • Renewed Payment Solutions programs with Mattress Firm and Kawasaki, and added a new program with Doosan Bobcat
  • Added new CareCredit programs with Walgreens and the Community Veterinary Partners, renewed program with Aspen Dental, and acquired Allegro Credit, a leading provider of point-of-sale consumer financing for audiology products and dental services
  • Returned $128 million in capital through common stock dividends
  • The Board of Directors approved a share repurchase program of up to $1.6 billion, commencing in the first quarter of 2021, subject to capital plan and any regulatory restrictions

“Last year brought challenges the likes of which we have never before experienced, and I am proud of how we came together as an organization to help our employees, partners, customers, and communities. We never lost sight of the necessity to build for the future, one in which the acceleration of digital adoption is profound. We quickly deployed digital assets to help our partners navigate this new environment and we continue to make investments for the future.  In 2020, we renewed 41 key relationships, won 25 new deals, and launched promising new programs with Verizon and Venmo. We also took a deep look at our organization to decisively reduce costs to appropriately align the expenses of our business while maintaining investments in our long-term strategy,” said Margaret Keane, Chief Executive Officer, Synchrony Financial. “With Synchrony in a position of strength, now is the right time to implement the leadership transition announced earlier this month.  Effective April 1, I will transition to the role of Executive Chair of our Board of Directors, and Brian Doubles will become President and CEO, allowing him to continue the incredible progress that has been made and drive the next stage of Synchrony’s exciting growth journey.”

Business and Financial Results for the Fourth Quarter of 2020*

Earnings

  • Net interest income decreased $370 million, or 9{14cc2b5881a050199a960a1a3483042b446231310e72f0dc471a7a1eddd6b0c3}, to $3.7 billion, mainly due to the impact of COVID-19.
  • Retailer share arrangements increased $18 million, or 2{14cc2b5881a050199a960a1a3483042b446231310e72f0dc471a7a1eddd6b0c3}, to $1.0 billion, reflecting the improvement in net charge-offs.
  • Provision for credit losses decreased $354 million, or 32{14cc2b5881a050199a960a1a3483042b446231310e72f0dc471a7a1eddd6b0c3}, to $750 million, mainly driven by lower net charge-offs, partially offset by a $119 million reserve increase.
  • Other income decreased $22 million, or 21{14cc2b5881a050199a960a1a3483042b446231310e72f0dc471a7a1eddd6b0c3}, to $82 million, largely driven by higher loyalty program costs.
  • Other expense decreased $79 million, or 7{14cc2b5881a050199a960a1a3483042b446231310e72f0dc471a7a1eddd6b0c3}, to $1.0 billion, mainly driven by lower purchase volume and accounts, lower employee costs, and lower operational losses.
  • Net earnings increased $7 million, or 1{14cc2b5881a050199a960a1a3483042b446231310e72f0dc471a7a1eddd6b0c3}, to $738 million .

Balance Sheet

  • Period-end loan receivables decreased 6{14cc2b5881a050199a960a1a3483042b446231310e72f0dc471a7a1eddd6b0c3}; purchase volume decreased 1{14cc2b5881a050199a960a1a3483042b446231310e72f0dc471a7a1eddd6b0c3}; and average active accounts decreased 10{14cc2b5881a050199a960a1a3483042b446231310e72f0dc471a7a1eddd6b0c3}.
  • Deposits decreased $2.3 billion, or 4{14cc2b5881a050199a960a1a3483042b446231310e72f0dc471a7a1eddd6b0c3}, to $62.8 billion and comprised 80{14cc2b5881a050199a960a1a3483042b446231310e72f0dc471a7a1eddd6b0c3} of funding.
  • The Company’s balance sheet remained strong with total liquidity (liquid assets and undrawn credit facilities) of $23.7 billion, or 24.7{14cc2b5881a050199a960a1a3483042b446231310e72f0dc471a7a1eddd6b0c3} of total assets.
  • The Company has elected to defer the regulatory capital effects of CECL for two years; the estimated Common Equity Tier 1 ratio was 15.9{14cc2b5881a050199a960a1a3483042b446231310e72f0dc471a7a1eddd6b0c3} compared to 14.1{14cc2b5881a050199a960a1a3483042b446231310e72f0dc471a7a1eddd6b0c3}, and the estimated Tier 1 Capital ratio was 16.8{14cc2b5881a050199a960a1a3483042b446231310e72f0dc471a7a1eddd6b0c3} compared to 15.0{14cc2b5881a050199a960a1a3483042b446231310e72f0dc471a7a1eddd6b0c3}, reflecting the Company’s strong capital generation capabilities.
  • The Board of Directors approved a share repurchase program of up to $1.6 billion, commencing in the first quarter of 2021 and expiring December 31, 2021.

Key Financial Metrics

  • Return on assets was 3.1{14cc2b5881a050199a960a1a3483042b446231310e72f0dc471a7a1eddd6b0c3} and return on equity was 23.6{14cc2b5881a050199a960a1a3483042b446231310e72f0dc471a7a1eddd6b0c3}.
  • Net interest margin was 14.64{14cc2b5881a050199a960a1a3483042b446231310e72f0dc471a7a1eddd6b0c3}.
  • Efficiency ratio was 37.1{14cc2b5881a050199a960a1a3483042b446231310e72f0dc471a7a1eddd6b0c3}.

Credit Quality

  • Loans 30+ days past due as a percentage of total period-end loan receivables were 3.07{14cc2b5881a050199a960a1a3483042b446231310e72f0dc471a7a1eddd6b0c3} compared to 4.44{14cc2b5881a050199a960a1a3483042b446231310e72f0dc471a7a1eddd6b0c3} last year.
  • Net charge-offs as a percentage of total average loan receivables were 3.16{14cc2b5881a050199a960a1a3483042b446231310e72f0dc471a7a1eddd6b0c3} compared to 5.15{14cc2b5881a050199a960a1a3483042b446231310e72f0dc471a7a1eddd6b0c3} last year.
  • The allowance for credit losses as a percentage of total period-end loan receivables was 12.54{14cc2b5881a050199a960a1a3483042b446231310e72f0dc471a7a1eddd6b0c3}.

Sales Platforms

  • Retail Card period-end loan receivables decreased 8{14cc2b5881a050199a960a1a3483042b446231310e72f0dc471a7a1eddd6b0c3}, driven primarily by the impact from COVID-19, partially offset by growth in digital partners. Interest and fees on loans decreased 13{14cc2b5881a050199a960a1a3483042b446231310e72f0dc471a7a1eddd6b0c3}, driven primarily by COVID-19 and the decline in loan receivables. Purchase volume increased 1{14cc2b5881a050199a960a1a3483042b446231310e72f0dc471a7a1eddd6b0c3} and average active accounts decreased 10{14cc2b5881a050199a960a1a3483042b446231310e72f0dc471a7a1eddd6b0c3}.
  • Payment Solutions period-end loan receivables decreased 2{14cc2b5881a050199a960a1a3483042b446231310e72f0dc471a7a1eddd6b0c3}, primarily due to the impact from COVID-19, partially offset by growth in Power Sports and Home Specialty. Interest and fees on loans decreased 9{14cc2b5881a050199a960a1a3483042b446231310e72f0dc471a7a1eddd6b0c3}, driven primarily by lower yield on loan receivables. Purchase volume decreased 7{14cc2b5881a050199a960a1a3483042b446231310e72f0dc471a7a1eddd6b0c3} and average active accounts decreased 9{14cc2b5881a050199a960a1a3483042b446231310e72f0dc471a7a1eddd6b0c3}.
  • CareCredit period-end loan receivables decreased 7{14cc2b5881a050199a960a1a3483042b446231310e72f0dc471a7a1eddd6b0c3}, driven primarily by the impact from COVID-19. Interest and fees on loans decreased 4{14cc2b5881a050199a960a1a3483042b446231310e72f0dc471a7a1eddd6b0c3}, driven primarily by lower merchant discount as a result of the decline in purchase volume, which decreased 6{14cc2b5881a050199a960a1a3483042b446231310e72f0dc471a7a1eddd6b0c3}. Average active accounts decreased 10{14cc2b5881a050199a960a1a3483042b446231310e72f0dc471a7a1eddd6b0c3}.

* All comparisons are for the fourth quarter of 2020 compared to the fourth quarter of 2019, unless otherwise noted.

Corresponding Financial Tables and Information

No representation is made that the information in this news release is complete.  Investors are encouraged to review the foregoing summary and discussion of Synchrony Financial’s earnings and financial condition in conjunction with the detailed financial tables and information that follow and the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2019, as filed February 13, 2020, and the Company’s forthcoming Annual Report on Form 10-K for the year ended December 31, 2020.  The detailed financial tables and other information are also available on the Investor Relations page of the Company’s website at www.investors.synchronyfinancial.com. This information is also furnished in a Current Report on Form 8-K filed with the SEC today.

Conference Call and Webcast Information

On Friday, January 29, 2021, at 8:30 a.m. Eastern Time, Margaret Keane, Chief Executive Officer, Brian Doubles, President, and Brian Wenzel Sr., Executive Vice President and Chief Financial Officer, will host a conference call to review the financial results and outlook for certain business drivers. The conference call can be accessed via an audio webcast through the Investor Relations page on the Synchrony Financial corporate website, www.investors.synchronyfinancial.com, under Events and Presentations. A replay will also be available on the website.

About Synchrony Financial

Synchrony (NYSE: SYF) is a premier consumer financial services company. We deliver a wide range of specialized financing programs, as well as innovative consumer banking products, across key industries including digital, retail, home, auto, travel, health and pet. Synchrony enables our partners to grow sales and loyalty with consumers. We are one of the largest issuers of private label credit cards in the United States; we also offer co-branded products, installment loans and consumer financing products for small- and medium-sized businesses, as well as healthcare providers.

Synchrony is changing what’s possible through our digital capabilities, deep industry expertise, actionable data insights, frictionless customer experience and customized financing solutions.

For more information, visit www.synchrony.com and Twitter: @Synchrony.

Cautionary Statement Regarding Forward-Looking Statements

This news release contains certain forward-looking statements as defined in Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, which are subject to the “safe harbor” created by those sections. Forward-looking statements may be identified by words such as “expects,” “intends,” “anticipates,” “plans,” “believes,” “seeks,” “targets,” “outlook,” “estimates,” “will,” “should,” “may” or words of similar meaning, but these words are not the exclusive means of identifying forward-looking statements. Forward-looking statements are based on management’s current expectations and assumptions, and are subject to inherent uncertainties, risks and changes in circumstances that are difficult to predict. As a result, actual results could differ materially from those indicated in these forward-looking statements. Factors that could cause actual results to differ materially include global political, economic, business, competitive, market, regulatory and other factors and risks, such as: the impact of macroeconomic conditions and whether industry trends we have identified develop as anticipated, including the future impacts of the novel coronavirus disease (“COVID-19”) outbreak and measures taken in response thereto for which future developments are highly uncertain and difficult to predict; retaining existing partners and attracting new partners, concentration of our revenue in a small number of Retail Card partners, and promotion and support of our products by our partners; cyber-attacks or other security breaches; disruptions in the operations of our computer systems and data centers; the financial performance of our partners; the sufficiency of our allowance for credit losses and the accuracy of the assumptions or estimates used in preparing our financial statements, including those related to the new CECL accounting guidance; higher borrowing costs and adverse financial market conditions impacting our funding and liquidity, and any reduction in our credit ratings; our ability to grow our deposits in the future; damage to our reputation; our ability to securitize our loan receivables, occurrence of an early amortization of our securitization facilities, loss of the right to service or subservice our securitized loan receivables, and lower payment rates on our securitized loan receivables; changes in market interest rates and the impact of any margin compression; effectiveness of our risk management processes and procedures, reliance on models which may be inaccurate or misinterpreted, our ability to manage our credit risk; our ability to offset increases in our costs in retailer share arrangements; competition in the consumer finance industry; our concentration in the U.S. consumer credit market; our ability to successfully develop and commercialize new or enhanced products and services; our ability to realize the value of acquisitions and strategic investments; reductions in interchange fees; fraudulent activity; failure of third parties to provide various services that are important to our operations; international risks and compliance and regulatory risks and costs associated with international operations; alleged infringement of intellectual property rights of others and our ability to protect our intellectual property; litigation and regulatory actions; our ability to attract, retain and motivate key officers and employees; tax legislation initiatives or challenges to our tax positions and/or interpretations, and state sales tax rules and regulations; a material indemnification obligation to GE under the Tax Sharing and Separation Agreement with GE if we cause the split-off from GE or certain preliminary transactions to fail to qualify for tax-free treatment or in the case of certain significant transfers of our stock following the split-off; regulation, supervision, examination and enforcement of our business by governmental authorities, the impact of the Dodd-Frank Wall Street Reform and Consumer Protection Act and other legislative and regulatory developments and the impact of the Consumer Financial Protection Bureau’s regulation of our business; impact of capital adequacy rules and liquidity requirements; restrictions that limit our ability to pay dividends and repurchase our common stock, and restrictions that limit the Synchrony Bank’s ability to pay dividends to us; regulations relating to privacy, information security and data protection; use of third-party vendors and ongoing third-party business relationships; and failure to comply with anti-money laundering and anti-terrorism financing laws.

For the reasons described above, we caution you against relying on any forward-looking statements, which should also be read in conjunction with the other cautionary statements that are included elsewhere in this news release and in our public filings, including under the heading “Risk Factors” in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2019, as filed on February 13, 2020, and the Company’s Quarterly Report on Form 10-Q for the quarter ended September 30, 2020, as filed on October 22, 2020. You should not consider any list of such factors to be an exhaustive statement of all the risks, uncertainties, or potentially inaccurate assumptions that could cause our current expectations or beliefs to change. Further, any forward-looking statement speaks only as of the date on which it is made, and we undertake no obligation to update or revise any forward-looking statement to reflect events or circumstances after the date on which the statement is made or to reflect the occurrence of unanticipated events, except as otherwise may be required by law.

Non-GAAP Measures

The information provided herein includes measures we refer to as “tangible common equity”, and certain “CECL fully phased-in” capital measures, which are not prepared in accordance with U.S. generally accepted accounting principles (“GAAP”).  For a reconciliation of these non-GAAP measures to the most directly comparable GAAP measures, please see the detailed financial tables and information that follow. For a statement regarding the usefulness of these measures to investors, please see the Company’s Current Report on Form 8-K filed with the SEC today.

SYNCHRONY FINANCIAL

FINANCIAL SUMMARY

(unaudited, in millions, except per share statistics)


Quarter Ended




Twelve Months Ended





Dec 31,
2020


Sep 30,
2020


Jun 30,
2020


Mar 31,
2020


Dec 31,
2019


4Q’20 vs. 4Q’19


Dec 31,
2020


Dec 31,
2019


YTD’20 vs. YTD’19

EARNINGS




















Net interest income

$3,659


$3,457


$3,396


$3,890


$4,029


$(370)

(9.2){14cc2b5881a050199a960a1a3483042b446231310e72f0dc471a7a1eddd6b0c3}


$14,402


$16,799


$(2,397)

(14.3){14cc2b5881a050199a960a1a3483042b446231310e72f0dc471a7a1eddd6b0c3}

Retailer share arrangements

(1,047)


(899)


(773)


(926)


(1,029)


(18)

1.7{14cc2b5881a050199a960a1a3483042b446231310e72f0dc471a7a1eddd6b0c3}


(3,645)


(3,858)


213

(5.5){14cc2b5881a050199a960a1a3483042b446231310e72f0dc471a7a1eddd6b0c3}





















Provision for credit losses

750


1,210


1,673


1,677


1,104


(354)

(32.1){14cc2b5881a050199a960a1a3483042b446231310e72f0dc471a7a1eddd6b0c3}


5,310


4,180


1,130

27.0{14cc2b5881a050199a960a1a3483042b446231310e72f0dc471a7a1eddd6b0c3}

Net interest income, after retailer share arrangements and provision for credit losses

1,862


1,348


950


1,287


1,896


(34)

(1.8){14cc2b5881a050199a960a1a3483042b446231310e72f0dc471a7a1eddd6b0c3}


5,447


8,761


(3,314)

(37.8){14cc2b5881a050199a960a1a3483042b446231310e72f0dc471a7a1eddd6b0c3}

Other income

82


131


95


97


104


(22)

(21.2){14cc2b5881a050199a960a1a3483042b446231310e72f0dc471a7a1eddd6b0c3}


405


371


34

9.2{14cc2b5881a050199a960a1a3483042b446231310e72f0dc471a7a1eddd6b0c3}

Other expense

1,000


1,067


986


1,002


1,079


(79)

(7.3){14cc2b5881a050199a960a1a3483042b446231310e72f0dc471a7a1eddd6b0c3}


4,055


4,245


(190)

(4.5){14cc2b5881a050199a960a1a3483042b446231310e72f0dc471a7a1eddd6b0c3}

Earnings before provision for income taxes

944


412


59


382


921


23

2.5{14cc2b5881a050199a960a1a3483042b446231310e72f0dc471a7a1eddd6b0c3}


1,797


4,887


(3,090)

(63.2){14cc2b5881a050199a960a1a3483042b446231310e72f0dc471a7a1eddd6b0c3}

Provision for income taxes

206


99


11


96


190


16

8.4{14cc2b5881a050199a960a1a3483042b446231310e72f0dc471a7a1eddd6b0c3}


412


1,140


(728)

(63.9){14cc2b5881a050199a960a1a3483042b446231310e72f0dc471a7a1eddd6b0c3}

Net earnings

$738


$313


$48


$286


$731


$7

1.0{14cc2b5881a050199a960a1a3483042b446231310e72f0dc471a7a1eddd6b0c3}


$1,385


$3,747


$(2,362)

(63.0){14cc2b5881a050199a960a1a3483042b446231310e72f0dc471a7a1eddd6b0c3}

Net earnings available to common stockholders

$728


$303


$37


$275


$731


$(3)

(0.4){14cc2b5881a050199a960a1a3483042b446231310e72f0dc471a7a1eddd6b0c3}


$1,343


$3,747


$(2,404)

(64.2){14cc2b5881a050199a960a1a3483042b446231310e72f0dc471a7a1eddd6b0c3}





























































COMMON SHARE STATISTICS




















Basic EPS   

$1.25


$0.52


$0.06


$0.45


$1.15


$0.10

8.7{14cc2b5881a050199a960a1a3483042b446231310e72f0dc471a7a1eddd6b0c3}


$2.28


$5.59


$(3.31)

(59.2){14cc2b5881a050199a960a1a3483042b446231310e72f0dc471a7a1eddd6b0c3}

Diluted EPS   

$1.24


$0.52


$0.06


$0.45


$1.15


$0.09

7.8{14cc2b5881a050199a960a1a3483042b446231310e72f0dc471a7a1eddd6b0c3}


$2.27


$5.56


$(3.29)

(59.2){14cc2b5881a050199a960a1a3483042b446231310e72f0dc471a7a1eddd6b0c3}





















Dividend declared per share

$0.22


$0.22


$0.22


$0.22


$0.22


$-

– {14cc2b5881a050199a960a1a3483042b446231310e72f0dc471a7a1eddd6b0c3}


$0.88


$0.86


$0.02

2.3{14cc2b5881a050199a960a1a3483042b446231310e72f0dc471a7a1eddd6b0c3}

Common stock price

$34.71


$26.17


$22.16


$16.09


$36.01


$(1.30)

(3.6){14cc2b5881a050199a960a1a3483042b446231310e72f0dc471a7a1eddd6b0c3}


$34.71


$36.01


$(1.30)

(3.6){14cc2b5881a050199a960a1a3483042b446231310e72f0dc471a7a1eddd6b0c3}

Book value per share   

$20.49


$19.47


$19.13


$19.27


$23.31


$(2.82)

(12.1){14cc2b5881a050199a960a1a3483042b446231310e72f0dc471a7a1eddd6b0c3}


$20.49


$23.31


$(2.82)

(12.1){14cc2b5881a050199a960a1a3483042b446231310e72f0dc471a7a1eddd6b0c3}

Tangible common equity per share(1)

$16.72


$15.75


$15.28


$15.35


$19.50


$(2.78)

(14.3){14cc2b5881a050199a960a1a3483042b446231310e72f0dc471a7a1eddd6b0c3}


$16.72


$19.50


$(2.78)

(14.3){14cc2b5881a050199a960a1a3483042b446231310e72f0dc471a7a1eddd6b0c3}





















Beginning common shares outstanding

583.8


583.7


583.2


615.9


653.7


(69.9)

(10.7){14cc2b5881a050199a960a1a3483042b446231310e72f0dc471a7a1eddd6b0c3}


615.9


718.8


(102.9)

(14.3){14cc2b5881a050199a960a1a3483042b446231310e72f0dc471a7a1eddd6b0c3}

Issuance of common shares






– {14cc2b5881a050199a960a1a3483042b446231310e72f0dc471a7a1eddd6b0c3}




– {14cc2b5881a050199a960a1a3483042b446231310e72f0dc471a7a1eddd6b0c3}

Stock-based compensation

0.2


0.1


0.5


0.9


0.6


(0.4)

(66.7){14cc2b5881a050199a960a1a3483042b446231310e72f0dc471a7a1eddd6b0c3}


1.7


3.1


(1.4)

(45.2){14cc2b5881a050199a960a1a3483042b446231310e72f0dc471a7a1eddd6b0c3}

Shares repurchased




(33.6)


(38.4)


38.4

(100.0){14cc2b5881a050199a960a1a3483042b446231310e72f0dc471a7a1eddd6b0c3}


(33.6)


(106.0)


72.4

(68.3){14cc2b5881a050199a960a1a3483042b446231310e72f0dc471a7a1eddd6b0c3}

Ending common shares outstanding

584.0


583.8


583.7


583.2


615.9


(31.9)

(5.2){14cc2b5881a050199a960a1a3483042b446231310e72f0dc471a7a1eddd6b0c3}


584.0


615.9


(31.9)

(5.2){14cc2b5881a050199a960a1a3483042b446231310e72f0dc471a7a1eddd6b0c3}





















Weighted average common shares outstanding 

583.9


583.8


583.7


604.9


633.7


(49.8)

(7.9){14cc2b5881a050199a960a1a3483042b446231310e72f0dc471a7a1eddd6b0c3}


589.0


670.2


(81.2)

(12.1){14cc2b5881a050199a960a1a3483042b446231310e72f0dc471a7a1eddd6b0c3}

Weighted average common shares outstanding (fully diluted) 

586.6


584.8


584.4


607.4


637.7


(51.1)

(8.0){14cc2b5881a050199a960a1a3483042b446231310e72f0dc471a7a1eddd6b0c3}


590.8


673.5


(82.7)

(12.3){14cc2b5881a050199a960a1a3483042b446231310e72f0dc471a7a1eddd6b0c3}





















(1) Tangible Common Equity (“TCE”) is a non-GAAP measure. For corresponding reconciliation of TCE to a GAAP financial measure, see Reconciliation of Non-GAAP Measures and Calculations of Regulatory Measures.

SYNCHRONY FINANCIAL

SELECTED METRICS

(unaudited, $ in millions)


Quarter Ended




Twelve Months Ended





Dec 31,
2020


Sep 30,
2020


Jun 30,
2020


Mar 31,
2020


Dec 31,
2019


4Q’20 vs. 4Q’19


Dec 31,
2020


Dec 31,
2019


YTD’20 vs. YTD’19

PERFORMANCE METRICS




















Return on assets(1)

3.1{14cc2b5881a050199a960a1a3483042b446231310e72f0dc471a7a1eddd6b0c3}


1.3{14cc2b5881a050199a960a1a3483042b446231310e72f0dc471a7a1eddd6b0c3}


0.2{14cc2b5881a050199a960a1a3483042b446231310e72f0dc471a7a1eddd6b0c3}


1.1{14cc2b5881a050199a960a1a3483042b446231310e72f0dc471a7a1eddd6b0c3}


2.7{14cc2b5881a050199a960a1a3483042b446231310e72f0dc471a7a1eddd6b0c3}



0.4{14cc2b5881a050199a960a1a3483042b446231310e72f0dc471a7a1eddd6b0c3}


1.4{14cc2b5881a050199a960a1a3483042b446231310e72f0dc471a7a1eddd6b0c3}


3.5{14cc2b5881a050199a960a1a3483042b446231310e72f0dc471a7a1eddd6b0c3}



(2.1){14cc2b5881a050199a960a1a3483042b446231310e72f0dc471a7a1eddd6b0c3}

Return on equity(2)

23.6{14cc2b5881a050199a960a1a3483042b446231310e72f0dc471a7a1eddd6b0c3}


10.3{14cc2b5881a050199a960a1a3483042b446231310e72f0dc471a7a1eddd6b0c3}


1.6{14cc2b5881a050199a960a1a3483042b446231310e72f0dc471a7a1eddd6b0c3}


9.1{14cc2b5881a050199a960a1a3483042b446231310e72f0dc471a7a1eddd6b0c3}


19.0{14cc2b5881a050199a960a1a3483042b446231310e72f0dc471a7a1eddd6b0c3}



4.6{14cc2b5881a050199a960a1a3483042b446231310e72f0dc471a7a1eddd6b0c3}


11.2{14cc2b5881a050199a960a1a3483042b446231310e72f0dc471a7a1eddd6b0c3}


25.1{14cc2b5881a050199a960a1a3483042b446231310e72f0dc471a7a1eddd6b0c3}



(13.9){14cc2b5881a050199a960a1a3483042b446231310e72f0dc471a7a1eddd6b0c3}

Return on tangible common equity(3)

30.4{14cc2b5881a050199a960a1a3483042b446231310e72f0dc471a7a1eddd6b0c3}


13.1{14cc2b5881a050199a960a1a3483042b446231310e72f0dc471a7a1eddd6b0c3}


1.6{14cc2b5881a050199a960a1a3483042b446231310e72f0dc471a7a1eddd6b0c3}


11.6{14cc2b5881a050199a960a1a3483042b446231310e72f0dc471a7a1eddd6b0c3}


23.0{14cc2b5881a050199a960a1a3483042b446231310e72f0dc471a7a1eddd6b0c3}



7.4{14cc2b5881a050199a960a1a3483042b446231310e72f0dc471a7a1eddd6b0c3}


14.4{14cc2b5881a050199a960a1a3483042b446231310e72f0dc471a7a1eddd6b0c3}


29.9{14cc2b5881a050199a960a1a3483042b446231310e72f0dc471a7a1eddd6b0c3}



(15.5){14cc2b5881a050199a960a1a3483042b446231310e72f0dc471a7a1eddd6b0c3}









































Net interest margin(4)

14.64{14cc2b5881a050199a960a1a3483042b446231310e72f0dc471a7a1eddd6b0c3}


13.80{14cc2b5881a050199a960a1a3483042b446231310e72f0dc471a7a1eddd6b0c3}


13.53{14cc2b5881a050199a960a1a3483042b446231310e72f0dc471a7a1eddd6b0c3}


15.15{14cc2b5881a050199a960a1a3483042b446231310e72f0dc471a7a1eddd6b0c3}


15.01{14cc2b5881a050199a960a1a3483042b446231310e72f0dc471a7a1eddd6b0c3}



(0.37){14cc2b5881a050199a960a1a3483042b446231310e72f0dc471a7a1eddd6b0c3}


14.29{14cc2b5881a050199a960a1a3483042b446231310e72f0dc471a7a1eddd6b0c3}


15.78{14cc2b5881a050199a960a1a3483042b446231310e72f0dc471a7a1eddd6b0c3}



(1.49){14cc2b5881a050199a960a1a3483042b446231310e72f0dc471a7a1eddd6b0c3}

Efficiency ratio(5)

37.1{14cc2b5881a050199a960a1a3483042b446231310e72f0dc471a7a1eddd6b0c3}


39.7{14cc2b5881a050199a960a1a3483042b446231310e72f0dc471a7a1eddd6b0c3}


36.3{14cc2b5881a050199a960a1a3483042b446231310e72f0dc471a7a1eddd6b0c3}


32.7{14cc2b5881a050199a960a1a3483042b446231310e72f0dc471a7a1eddd6b0c3}


34.8{14cc2b5881a050199a960a1a3483042b446231310e72f0dc471a7a1eddd6b0c3}



2.3{14cc2b5881a050199a960a1a3483042b446231310e72f0dc471a7a1eddd6b0c3}


36.3{14cc2b5881a050199a960a1a3483042b446231310e72f0dc471a7a1eddd6b0c3}


31.9{14cc2b5881a050199a960a1a3483042b446231310e72f0dc471a7a1eddd6b0c3}



4.4{14cc2b5881a050199a960a1a3483042b446231310e72f0dc471a7a1eddd6b0c3}

Other expense as a {14cc2b5881a050199a960a1a3483042b446231310e72f0dc471a7a1eddd6b0c3} of average loan receivables, including held for sale

5.01{14cc2b5881a050199a960a1a3483042b446231310e72f0dc471a7a1eddd6b0c3}


5.44{14cc2b5881a050199a960a1a3483042b446231310e72f0dc471a7a1eddd6b0c3}


5.04{14cc2b5881a050199a960a1a3483042b446231310e72f0dc471a7a1eddd6b0c3}


4.77{14cc2b5881a050199a960a1a3483042b446231310e72f0dc471a7a1eddd6b0c3}


5.01{14cc2b5881a050199a960a1a3483042b446231310e72f0dc471a7a1eddd6b0c3}



0.00{14cc2b5881a050199a960a1a3483042b446231310e72f0dc471a7a1eddd6b0c3}


5.06{14cc2b5881a050199a960a1a3483042b446231310e72f0dc471a7a1eddd6b0c3}


4.79{14cc2b5881a050199a960a1a3483042b446231310e72f0dc471a7a1eddd6b0c3}



0.27{14cc2b5881a050199a960a1a3483042b446231310e72f0dc471a7a1eddd6b0c3}

Effective income tax rate

21.8{14cc2b5881a050199a960a1a3483042b446231310e72f0dc471a7a1eddd6b0c3}


24.0{14cc2b5881a050199a960a1a3483042b446231310e72f0dc471a7a1eddd6b0c3}


18.6{14cc2b5881a050199a960a1a3483042b446231310e72f0dc471a7a1eddd6b0c3}


25.1{14cc2b5881a050199a960a1a3483042b446231310e72f0dc471a7a1eddd6b0c3}


20.6{14cc2b5881a050199a960a1a3483042b446231310e72f0dc471a7a1eddd6b0c3}



1.2{14cc2b5881a050199a960a1a3483042b446231310e72f0dc471a7a1eddd6b0c3}


22.9{14cc2b5881a050199a960a1a3483042b446231310e72f0dc471a7a1eddd6b0c3}


23.3{14cc2b5881a050199a960a1a3483042b446231310e72f0dc471a7a1eddd6b0c3}



(0.4){14cc2b5881a050199a960a1a3483042b446231310e72f0dc471a7a1eddd6b0c3}









































CREDIT QUALITY METRICS




















Net charge-offs as a {14cc2b5881a050199a960a1a3483042b446231310e72f0dc471a7a1eddd6b0c3} of average loan receivables, including held for sale

3.16{14cc2b5881a050199a960a1a3483042b446231310e72f0dc471a7a1eddd6b0c3}


4.42{14cc2b5881a050199a960a1a3483042b446231310e72f0dc471a7a1eddd6b0c3}


5.35{14cc2b5881a050199a960a1a3483042b446231310e72f0dc471a7a1eddd6b0c3}


5.36{14cc2b5881a050199a960a1a3483042b446231310e72f0dc471a7a1eddd6b0c3}


5.15{14cc2b5881a050199a960a1a3483042b446231310e72f0dc471a7a1eddd6b0c3}



(1.99){14cc2b5881a050199a960a1a3483042b446231310e72f0dc471a7a1eddd6b0c3}


4.58{14cc2b5881a050199a960a1a3483042b446231310e72f0dc471a7a1eddd6b0c3}


5.65{14cc2b5881a050199a960a1a3483042b446231310e72f0dc471a7a1eddd6b0c3}



(1.07){14cc2b5881a050199a960a1a3483042b446231310e72f0dc471a7a1eddd6b0c3}

30+ days past due as a {14cc2b5881a050199a960a1a3483042b446231310e72f0dc471a7a1eddd6b0c3} of period-end loan receivables(6)

3.07{14cc2b5881a050199a960a1a3483042b446231310e72f0dc471a7a1eddd6b0c3}


2.67{14cc2b5881a050199a960a1a3483042b446231310e72f0dc471a7a1eddd6b0c3}


3.13{14cc2b5881a050199a960a1a3483042b446231310e72f0dc471a7a1eddd6b0c3}


4.24{14cc2b5881a050199a960a1a3483042b446231310e72f0dc471a7a1eddd6b0c3}


4.44{14cc2b5881a050199a960a1a3483042b446231310e72f0dc471a7a1eddd6b0c3}



(1.37){14cc2b5881a050199a960a1a3483042b446231310e72f0dc471a7a1eddd6b0c3}


3.07{14cc2b5881a050199a960a1a3483042b446231310e72f0dc471a7a1eddd6b0c3}


4.44{14cc2b5881a050199a960a1a3483042b446231310e72f0dc471a7a1eddd6b0c3}



(1.37){14cc2b5881a050199a960a1a3483042b446231310e72f0dc471a7a1eddd6b0c3}

90+ days past due as a {14cc2b5881a050199a960a1a3483042b446231310e72f0dc471a7a1eddd6b0c3} of period-end loan receivables(6)

1.40{14cc2b5881a050199a960a1a3483042b446231310e72f0dc471a7a1eddd6b0c3}


1.24{14cc2b5881a050199a960a1a3483042b446231310e72f0dc471a7a1eddd6b0c3}


1.77{14cc2b5881a050199a960a1a3483042b446231310e72f0dc471a7a1eddd6b0c3}


2.10{14cc2b5881a050199a960a1a3483042b446231310e72f0dc471a7a1eddd6b0c3}


2.15{14cc2b5881a050199a960a1a3483042b446231310e72f0dc471a7a1eddd6b0c3}



(0.75){14cc2b5881a050199a960a1a3483042b446231310e72f0dc471a7a1eddd6b0c3}


1.40{14cc2b5881a050199a960a1a3483042b446231310e72f0dc471a7a1eddd6b0c3}


2.15{14cc2b5881a050199a960a1a3483042b446231310e72f0dc471a7a1eddd6b0c3}



(0.75){14cc2b5881a050199a960a1a3483042b446231310e72f0dc471a7a1eddd6b0c3}

Net charge-offs

$631


$866


$1,046


$1,125


$1,109


$(478)

(43.1){14cc2b5881a050199a960a1a3483042b446231310e72f0dc471a7a1eddd6b0c3}


$3,668


$5,005


$(1,337)

(26.7){14cc2b5881a050199a960a1a3483042b446231310e72f0dc471a7a1eddd6b0c3}

Loan receivables delinquent over 30 days(6)

$2,514


$2,100


$2,453


$3,500


$3,874


$(1,360)

(35.1){14cc2b5881a050199a960a1a3483042b446231310e72f0dc471a7a1eddd6b0c3}


$2,514


$3,874


$(1,360)

(35.1){14cc2b5881a050199a960a1a3483042b446231310e72f0dc471a7a1eddd6b0c3}

Loan receivables delinquent over 90 days(6)

$1,143


$973


$1,384


$1,735


$1,877


$(734)

(39.1){14cc2b5881a050199a960a1a3483042b446231310e72f0dc471a7a1eddd6b0c3}


$1,143


$1,877


$(734)

(39.1){14cc2b5881a050199a960a1a3483042b446231310e72f0dc471a7a1eddd6b0c3}





















Allowance for credit losses (period-end)

$10,265


$10,146


$9,802


$9,175


$5,602


$4,663

83.2{14cc2b5881a050199a960a1a3483042b446231310e72f0dc471a7a1eddd6b0c3}


$10,265


$5,602


$4,663

83.2{14cc2b5881a050199a960a1a3483042b446231310e72f0dc471a7a1eddd6b0c3}

Allowance coverage ratio(7)

12.54{14cc2b5881a050199a960a1a3483042b446231310e72f0dc471a7a1eddd6b0c3}


12.92{14cc2b5881a050199a960a1a3483042b446231310e72f0dc471a7a1eddd6b0c3}


12.52{14cc2b5881a050199a960a1a3483042b446231310e72f0dc471a7a1eddd6b0c3}


11.13{14cc2b5881a050199a960a1a3483042b446231310e72f0dc471a7a1eddd6b0c3}


6.42{14cc2b5881a050199a960a1a3483042b446231310e72f0dc471a7a1eddd6b0c3}



6.12{14cc2b5881a050199a960a1a3483042b446231310e72f0dc471a7a1eddd6b0c3}


12.54{14cc2b5881a050199a960a1a3483042b446231310e72f0dc471a7a1eddd6b0c3}


6.42{14cc2b5881a050199a960a1a3483042b446231310e72f0dc471a7a1eddd6b0c3}



6.12{14cc2b5881a050199a960a1a3483042b446231310e72f0dc471a7a1eddd6b0c3}





















BUSINESS METRICS




















Purchase volume(8)(9)

$39,874


$36,013


$31,155


$32,042


$40,212


$(338)

(0.8){14cc2b5881a050199a960a1a3483042b446231310e72f0dc471a7a1eddd6b0c3}


$139,084


$149,411


$(10,327)

(6.9){14cc2b5881a050199a960a1a3483042b446231310e72f0dc471a7a1eddd6b0c3}

Period-end loan receivables

$81,867


$78,521


$78,313


$82,469


$87,215


$(5,348)

(6.1){14cc2b5881a050199a960a1a3483042b446231310e72f0dc471a7a1eddd6b0c3}


$81,867


$87,215


$(5,348)

(6.1){14cc2b5881a050199a960a1a3483042b446231310e72f0dc471a7a1eddd6b0c3}

Credit cards

$78,455


$75,204


$75,353


$79,832


$84,606


$(6,151)

(7.3){14cc2b5881a050199a960a1a3483042b446231310e72f0dc471a7a1eddd6b0c3}


$78,455


$84,606


$(6,151)

(7.3){14cc2b5881a050199a960a1a3483042b446231310e72f0dc471a7a1eddd6b0c3}

Consumer installment loans

$2,125


$1,987


$1,779


$1,390


$1,347


$778

57.8{14cc2b5881a050199a960a1a3483042b446231310e72f0dc471a7a1eddd6b0c3}


$2,125


$1,347


$778

57.8{14cc2b5881a050199a960a1a3483042b446231310e72f0dc471a7a1eddd6b0c3}

Commercial credit products

$1,250


$1,270


$1,140


$1,203


$1,223


$27

2.2{14cc2b5881a050199a960a1a3483042b446231310e72f0dc471a7a1eddd6b0c3}


$1,250


$1,223


$27

2.2{14cc2b5881a050199a960a1a3483042b446231310e72f0dc471a7a1eddd6b0c3}

Other

$37


$60


$41


$44


$39


$(2)

(5.1){14cc2b5881a050199a960a1a3483042b446231310e72f0dc471a7a1eddd6b0c3}


$37


$39


$(2)

(5.1){14cc2b5881a050199a960a1a3483042b446231310e72f0dc471a7a1eddd6b0c3}

Average loan receivables, including held for sale

$79,452


$78,005


$78,697


$84,428


$85,376


$(5,924)

(6.9){14cc2b5881a050199a960a1a3483042b446231310e72f0dc471a7a1eddd6b0c3}


$80,138


$88,649


$(8,511)

(9.6){14cc2b5881a050199a960a1a3483042b446231310e72f0dc471a7a1eddd6b0c3}

Period-end active accounts (in thousands)(9)(10)

68,540


64,800


63,430


68,849


75,471


(6,931)

(9.2){14cc2b5881a050199a960a1a3483042b446231310e72f0dc471a7a1eddd6b0c3}


68,540


75,471


(6,931)

(9.2){14cc2b5881a050199a960a1a3483042b446231310e72f0dc471a7a1eddd6b0c3}

Average active accounts (in thousands)(9)(10)

66,261


64,270


64,836


72,078


73,734


(7,473)

(10.1){14cc2b5881a050199a960a1a3483042b446231310e72f0dc471a7a1eddd6b0c3}


67,131


75,721


(8,590)

(11.3){14cc2b5881a050199a960a1a3483042b446231310e72f0dc471a7a1eddd6b0c3}





















LIQUIDITY




















Liquid assets




















Cash and equivalents

$11,524


$13,552


$16,344


$13,704


$12,147


$(623)

(5.1){14cc2b5881a050199a960a1a3483042b446231310e72f0dc471a7a1eddd6b0c3}


$11,524


$12,147


$(623)

(5.1){14cc2b5881a050199a960a1a3483042b446231310e72f0dc471a7a1eddd6b0c3}

Total liquid assets

$18,321


$21,402


$22,352


$19,225


$17,322


$999

5.8{14cc2b5881a050199a960a1a3483042b446231310e72f0dc471a7a1eddd6b0c3}


$18,321


$17,322


$999

5.8{14cc2b5881a050199a960a1a3483042b446231310e72f0dc471a7a1eddd6b0c3}

Undrawn credit facilities




















Undrawn credit facilities

$5,400


$5,400


$5,650


$5,600


$6,050


$(650)

(10.7){14cc2b5881a050199a960a1a3483042b446231310e72f0dc471a7a1eddd6b0c3}


$5,400


$6,050


$(650)

(10.7){14cc2b5881a050199a960a1a3483042b446231310e72f0dc471a7a1eddd6b0c3}

Total liquid assets and undrawn credit facilities

$23,721


$26,802


$28,002


$24,825


$23,372


$349

1.5{14cc2b5881a050199a960a1a3483042b446231310e72f0dc471a7a1eddd6b0c3}


$23,721


$23,372


$349

1.5{14cc2b5881a050199a960a1a3483042b446231310e72f0dc471a7a1eddd6b0c3}

Liquid assets {14cc2b5881a050199a960a1a3483042b446231310e72f0dc471a7a1eddd6b0c3} of total assets

19.09{14cc2b5881a050199a960a1a3483042b446231310e72f0dc471a7a1eddd6b0c3}


22.37{14cc2b5881a050199a960a1a3483042b446231310e72f0dc471a7a1eddd6b0c3}


23.15{14cc2b5881a050199a960a1a3483042b446231310e72f0dc471a7a1eddd6b0c3}


19.61{14cc2b5881a050199a960a1a3483042b446231310e72f0dc471a7a1eddd6b0c3}


16.52{14cc2b5881a050199a960a1a3483042b446231310e72f0dc471a7a1eddd6b0c3}



2.57{14cc2b5881a050199a960a1a3483042b446231310e72f0dc471a7a1eddd6b0c3}


19.09{14cc2b5881a050199a960a1a3483042b446231310e72f0dc471a7a1eddd6b0c3}


16.52{14cc2b5881a050199a960a1a3483042b446231310e72f0dc471a7a1eddd6b0c3}



2.57{14cc2b5881a050199a960a1a3483042b446231310e72f0dc471a7a1eddd6b0c3}

Liquid assets including undrawn credit facilities {14cc2b5881a050199a960a1a3483042b446231310e72f0dc471a7a1eddd6b0c3} of total assets

24.72{14cc2b5881a050199a960a1a3483042b446231310e72f0dc471a7a1eddd6b0c3}


28.02{14cc2b5881a050199a960a1a3483042b446231310e72f0dc471a7a1eddd6b0c3}


29.00{14cc2b5881a050199a960a1a3483042b446231310e72f0dc471a7a1eddd6b0c3}


25.32{14cc2b5881a050199a960a1a3483042b446231310e72f0dc471a7a1eddd6b0c3}


22.30{14cc2b5881a050199a960a1a3483042b446231310e72f0dc471a7a1eddd6b0c3}



2.42{14cc2b5881a050199a960a1a3483042b446231310e72f0dc471a7a1eddd6b0c3}


24.72{14cc2b5881a050199a960a1a3483042b446231310e72f0dc471a7a1eddd6b0c3}


22.30{14cc2b5881a050199a960a1a3483042b446231310e72f0dc471a7a1eddd6b0c3}



2.42{14cc2b5881a050199a960a1a3483042b446231310e72f0dc471a7a1eddd6b0c3}





















(1) Return on assets represents net earnings as a percentage of average total assets. 




















(2) Return on equity represents net earnings as a percentage of average total equity.




















(3) Return on tangible common equity represents net earnings available to common stockholders as a percentage of average tangible common equity. Tangible common equity (“TCE”) is a non-GAAP measure. For corresponding reconciliation of TCE to a GAAP financial measure, see Reconciliation of Non-GAAP Measures and Calculations of Regulatory Measures.

(4) Net interest margin represents net interest income divided by average interest-earning assets. 

(5) Efficiency ratio represents (i) other expense, divided by (ii) net interest income, plus other income, less retailer share arrangements.

(6) Based on customer statement-end balances extrapolated to the respective period-end date.



















(7) Allowance coverage ratio represents allowance for credit losses divided by total period-end loan receivables.

(8) Purchase volume, or net credit sales, represents the aggregate amount of charges incurred on credit cards or other credit product accounts less returns during the period. 








(9) Includes activity and accounts associated with loan receivables held for sale.




















(10) Active accounts represent credit card or installment loan accounts on which there has been a purchase, payment or outstanding balance in the current month.









SYNCHRONY FINANCIAL

STATEMENTS OF EARNINGS

(unaudited, $ in millions)


Quarter Ended




Twelve Months Ended





Dec 31,
2020


Sep 30,
2020


Jun 30,
2020


Mar 31,
2020


Dec 31,
2019


4Q’20 vs. 4Q’19


Dec 31,
2020


Dec 31,
2019


YTD’20 vs. YTD’19

Interest income:




















Interest and fees on loans

$3,981


$3,821


$3,808


$4,340


$4,492


$(511)

(11.4){14cc2b5881a050199a960a1a3483042b446231310e72f0dc471a7a1eddd6b0c3}


$15,950


$18,705


$(2,755)

(14.7){14cc2b5881a050199a960a1a3483042b446231310e72f0dc471a7a1eddd6b0c3}

Interest on cash and debt securities

12


16


22


67


93


(81)

(87.1){14cc2b5881a050199a960a1a3483042b446231310e72f0dc471a7a1eddd6b0c3}


117


385


(268)

(69.6){14cc2b5881a050199a960a1a3483042b446231310e72f0dc471a7a1eddd6b0c3}

Total interest income

3,993


3,837


3,830


4,407


4,585


(592)

(12.9){14cc2b5881a050199a960a1a3483042b446231310e72f0dc471a7a1eddd6b0c3}


16,067


19,090


(3,023)

(15.8){14cc2b5881a050199a960a1a3483042b446231310e72f0dc471a7a1eddd6b0c3}





















Interest expense:




















Interest on deposits

200


245


293


356


383


(183)

(47.8){14cc2b5881a050199a960a1a3483042b446231310e72f0dc471a7a1eddd6b0c3}


1,094


1,566


(472)

(30.1){14cc2b5881a050199a960a1a3483042b446231310e72f0dc471a7a1eddd6b0c3}

Interest on borrowings of consolidated securitization entities

52


53


59


73


80


(28)

(35.0){14cc2b5881a050199a960a1a3483042b446231310e72f0dc471a7a1eddd6b0c3}


237


358


(121)

(33.8){14cc2b5881a050199a960a1a3483042b446231310e72f0dc471a7a1eddd6b0c3}

Interest on senior unsecured notes

82


82


82


88


93


(11)

(11.8){14cc2b5881a050199a960a1a3483042b446231310e72f0dc471a7a1eddd6b0c3}


334


367


(33)

(9.0){14cc2b5881a050199a960a1a3483042b446231310e72f0dc471a7a1eddd6b0c3}





















Total interest expense

334


380


434


517


556


(222)

(39.9){14cc2b5881a050199a960a1a3483042b446231310e72f0dc471a7a1eddd6b0c3}


1,665


2,291


(626)

(27.3){14cc2b5881a050199a960a1a3483042b446231310e72f0dc471a7a1eddd6b0c3}





















Net interest income

3,659


3,457


3,396


3,890


4,029


(370)

(9.2){14cc2b5881a050199a960a1a3483042b446231310e72f0dc471a7a1eddd6b0c3}


14,402


16,799


(2,397)

(14.3){14cc2b5881a050199a960a1a3483042b446231310e72f0dc471a7a1eddd6b0c3}





















Retailer share arrangements

(1,047)


(899)


(773)


(926)


(1,029)


(18)

1.7{14cc2b5881a050199a960a1a3483042b446231310e72f0dc471a7a1eddd6b0c3}


(3,645)


(3,858)


213

(5.5){14cc2b5881a050199a960a1a3483042b446231310e72f0dc471a7a1eddd6b0c3}









































Provision for credit losses

750


1,210


1,673


1,677


1,104


(354)

(32.1){14cc2b5881a050199a960a1a3483042b446231310e72f0dc471a7a1eddd6b0c3}


5,310


4,180


1,130

27.0{14cc2b5881a050199a960a1a3483042b446231310e72f0dc471a7a1eddd6b0c3}

Net interest income, after retailer share arrangements and provision for credit losses

1,862


1,348


950


1,287


1,896


(34)

(1.8){14cc2b5881a050199a960a1a3483042b446231310e72f0dc471a7a1eddd6b0c3}


5,447


8,761


(3,314)

(37.8){14cc2b5881a050199a960a1a3483042b446231310e72f0dc471a7a1eddd6b0c3}





















Other income:




















Interchange revenue

185


172


134


161


192


(7)

(3.6){14cc2b5881a050199a960a1a3483042b446231310e72f0dc471a7a1eddd6b0c3}


652


748


(96)

(12.8){14cc2b5881a050199a960a1a3483042b446231310e72f0dc471a7a1eddd6b0c3}

Debt cancellation fees

72


68


69


69


64


8

12.5{14cc2b5881a050199a960a1a3483042b446231310e72f0dc471a7a1eddd6b0c3}


278


265


13

4.9{14cc2b5881a050199a960a1a3483042b446231310e72f0dc471a7a1eddd6b0c3}

Loyalty programs

(202)


(155)


(134)


(158)


(181)


(21)

11.6{14cc2b5881a050199a960a1a3483042b446231310e72f0dc471a7a1eddd6b0c3}


(649)


(743)


94

(12.7){14cc2b5881a050199a960a1a3483042b446231310e72f0dc471a7a1eddd6b0c3}

Other

27


46


26


25


29


(2)

(6.9){14cc2b5881a050199a960a1a3483042b446231310e72f0dc471a7a1eddd6b0c3}


124


101


23

22.8{14cc2b5881a050199a960a1a3483042b446231310e72f0dc471a7a1eddd6b0c3}

Total other income

82


131


95


97


104


(22)

(21.2){14cc2b5881a050199a960a1a3483042b446231310e72f0dc471a7a1eddd6b0c3}


405


371


34

9.2{14cc2b5881a050199a960a1a3483042b446231310e72f0dc471a7a1eddd6b0c3}





















Other expense:




















Employee costs

347


382


327


324


385


(38)

(9.9){14cc2b5881a050199a960a1a3483042b446231310e72f0dc471a7a1eddd6b0c3}


1,380


1,455


(75)

(5.2){14cc2b5881a050199a960a1a3483042b446231310e72f0dc471a7a1eddd6b0c3}

Professional fees

186


187


189


197


199


(13)

(6.5){14cc2b5881a050199a960a1a3483042b446231310e72f0dc471a7a1eddd6b0c3}


759


867


(108)

(12.5){14cc2b5881a050199a960a1a3483042b446231310e72f0dc471a7a1eddd6b0c3}

Marketing and business development

139


107


91


111


152


(13)

(8.6){14cc2b5881a050199a960a1a3483042b446231310e72f0dc471a7a1eddd6b0c3}


448


549


(101)

(18.4){14cc2b5881a050199a960a1a3483042b446231310e72f0dc471a7a1eddd6b0c3}

Information processing

128


125


116


123


122


6

4.9{14cc2b5881a050199a960a1a3483042b446231310e72f0dc471a7a1eddd6b0c3}


492


485


7

1.4{14cc2b5881a050199a960a1a3483042b446231310e72f0dc471a7a1eddd6b0c3}

Other

200


266


263


247


221


(21)

(9.5){14cc2b5881a050199a960a1a3483042b446231310e72f0dc471a7a1eddd6b0c3}


976


889


87

9.8{14cc2b5881a050199a960a1a3483042b446231310e72f0dc471a7a1eddd6b0c3}

Total other expense

1,000


1,067


986


1,002


1,079


(79)

(7.3){14cc2b5881a050199a960a1a3483042b446231310e72f0dc471a7a1eddd6b0c3}


4,055


4,245


(190)

(4.5){14cc2b5881a050199a960a1a3483042b446231310e72f0dc471a7a1eddd6b0c3}





















Earnings before provision for income taxes

944


412


59


382


921


23

2.5{14cc2b5881a050199a960a1a3483042b446231310e72f0dc471a7a1eddd6b0c3}


1,797


4,887


(3,090)

(63.2){14cc2b5881a050199a960a1a3483042b446231310e72f0dc471a7a1eddd6b0c3}

Provision for income taxes

206


99


11


96


190


16

8.4{14cc2b5881a050199a960a1a3483042b446231310e72f0dc471a7a1eddd6b0c3}


412


1,140


(728)

(63.9){14cc2b5881a050199a960a1a3483042b446231310e72f0dc471a7a1eddd6b0c3}

Net earnings

$738


$313


$48


$286


$731


$7

1.0{14cc2b5881a050199a960a1a3483042b446231310e72f0dc471a7a1eddd6b0c3}


$1,385


$3,747


$(2,362)

(63.0){14cc2b5881a050199a960a1a3483042b446231310e72f0dc471a7a1eddd6b0c3}





















Net earnings available to common stockholders

$728


$303


$37


$275


$731


$(3)

(0.4){14cc2b5881a050199a960a1a3483042b446231310e72f0dc471a7a1eddd6b0c3}


$1,343


$3,747


$(2,404)

(64.2){14cc2b5881a050199a960a1a3483042b446231310e72f0dc471a7a1eddd6b0c3}





















SYNCHRONY FINANCIAL

STATEMENTS OF FINANCIAL POSITION

(unaudited, $ in millions)


Quarter Ended




Dec 31,
2020


Sep 30,
2020


Jun 30,
2020


Mar 31,
2020


Dec 31,
2019


Dec 31, 2020 vs.
Dec 31, 2019

Assets













Cash and equivalents

$11,524


$13,552


$16,344


$13,704


$12,147


$(623)

(5.1){14cc2b5881a050199a960a1a3483042b446231310e72f0dc471a7a1eddd6b0c3}

Debt securities

7,469


8,432


6,623


6,146


5,911


1,558

26.4{14cc2b5881a050199a960a1a3483042b446231310e72f0dc471a7a1eddd6b0c3}

Loan receivables:













Unsecuritized loans held for investment

56,472


52,613


52,629


54,765


58,398


(1,926)

(3.3){14cc2b5881a050199a960a1a3483042b446231310e72f0dc471a7a1eddd6b0c3}

Restricted loans of consolidated securitization entities

25,395


25,908


25,684


27,704


28,817


(3,422)

(11.9){14cc2b5881a050199a960a1a3483042b446231310e72f0dc471a7a1eddd6b0c3}

Total loan receivables

81,867


78,521


78,313


82,469


87,215


(5,348)

(6.1){14cc2b5881a050199a960a1a3483042b446231310e72f0dc471a7a1eddd6b0c3}

Less: Allowance for credit losses(1)

(10,265)


(10,146)


(9,802)


(9,175)


(5,602)


(4,663)

83.2{14cc2b5881a050199a960a1a3483042b446231310e72f0dc471a7a1eddd6b0c3}

Loan receivables, net

71,602


68,375


68,511


73,294


81,613


(10,011)

(12.3){14cc2b5881a050199a960a1a3483042b446231310e72f0dc471a7a1eddd6b0c3}

Loan receivables held for sale

5


4


4


5


725


(720)

(99.3){14cc2b5881a050199a960a1a3483042b446231310e72f0dc471a7a1eddd6b0c3}

Goodwill

1,078


1,078


1,078


1,078


1,078


– {14cc2b5881a050199a960a1a3483042b446231310e72f0dc471a7a1eddd6b0c3}

Intangible assets, net

1,125


1,091


1,166


1,208


1,265


(140)

(11.1){14cc2b5881a050199a960a1a3483042b446231310e72f0dc471a7a1eddd6b0c3}

Other assets

3,145


3,126


2,818


2,603


2,087


1,058

50.7{14cc2b5881a050199a960a1a3483042b446231310e72f0dc471a7a1eddd6b0c3}

Total assets

$95,948


$95,658


$96,544


$98,038


$104,826


$(8,878)

(8.5){14cc2b5881a050199a960a1a3483042b446231310e72f0dc471a7a1eddd6b0c3}














Liabilities and Equity













Deposits:













Interest-bearing deposit accounts

$62,469


$63,195


$63,857


$64,302


$64,877


$(2,408)

(3.7){14cc2b5881a050199a960a1a3483042b446231310e72f0dc471a7a1eddd6b0c3}

Non-interest-bearing deposit accounts

313


298


291


313


277


36

13.0{14cc2b5881a050199a960a1a3483042b446231310e72f0dc471a7a1eddd6b0c3}

Total deposits

62,782


63,493


64,148


64,615


65,154


(2,372)

(3.6){14cc2b5881a050199a960a1a3483042b446231310e72f0dc471a7a1eddd6b0c3}

Borrowings:













Borrowings of consolidated securitization entities

7,810


7,809


8,109


9,291


10,412


(2,602)

(25.0){14cc2b5881a050199a960a1a3483042b446231310e72f0dc471a7a1eddd6b0c3}














Senior unsecured notes

7,965


7,962


7,960


7,957


9,454


(1,489)

(15.7){14cc2b5881a050199a960a1a3483042b446231310e72f0dc471a7a1eddd6b0c3}














Total borrowings

15,775


15,771


16,069


17,248


19,866


(4,091)

(20.6){14cc2b5881a050199a960a1a3483042b446231310e72f0dc471a7a1eddd6b0c3}

Accrued expenses and other liabilities

4,690


4,295


4,428


4,205


4,718


(28)

(0.6){14cc2b5881a050199a960a1a3483042b446231310e72f0dc471a7a1eddd6b0c3}

Total liabilities

83,247


83,559


84,645


86,068


89,738


(6,491)

(7.2){14cc2b5881a050199a960a1a3483042b446231310e72f0dc471a7a1eddd6b0c3}

Equity:













Preferred stock

734


734


734


734


734


– {14cc2b5881a050199a960a1a3483042b446231310e72f0dc471a7a1eddd6b0c3}

Common stock

1


1


1


1


1


– {14cc2b5881a050199a960a1a3483042b446231310e72f0dc471a7a1eddd6b0c3}

Additional paid-in capital

9,570


9,552


9,532


9,523


9,537


33

0.3{14cc2b5881a050199a960a1a3483042b446231310e72f0dc471a7a1eddd6b0c3}

Retained earnings

10,621


10,024


9,852


9,960


12,117


(1,496)

(12.3){14cc2b5881a050199a960a1a3483042b446231310e72f0dc471a7a1eddd6b0c3}

Accumulated other comprehensive income (loss)

(51)


(31)


(37)


(49)


(58)


7

(12.1){14cc2b5881a050199a960a1a3483042b446231310e72f0dc471a7a1eddd6b0c3}

Treasury stock

(8,174)


(8,181)


(8,183)


(8,199)


(7,243)


(931)

12.9{14cc2b5881a050199a960a1a3483042b446231310e72f0dc471a7a1eddd6b0c3}

Total equity

12,701


12,099


11,899


11,970


15,088


(2,387)

(15.8){14cc2b5881a050199a960a1a3483042b446231310e72f0dc471a7a1eddd6b0c3}

Total liabilities and equity

$95,948


$95,658


$96,544


$98,038


$104,826


$(8,878)

(8.5){14cc2b5881a050199a960a1a3483042b446231310e72f0dc471a7a1eddd6b0c3}














(1) Effective January 1, 2020, the Company adopted ASU 2016-13, Financial Instruments-Credit Losses (“CECL”) that measures the allowance for credit losses based on management’s best estimate of expected credit losses for the life of our loan receivables. Prior periods presented reflect measurement of the allowance based on management’s estimate of probable incurred credit losses in accordance with the previous accounting guidance effective for those periods.

SYNCHRONY FINANCIAL

AVERAGE BALANCES, NET INTEREST INCOME AND NET INTEREST MARGIN

(unaudited, $ in millions)
































Quarter Ended


Dec 31, 2020


Sep 30, 2020


Jun 30, 2020


Mar 31, 2020


Dec 31, 2019




Interest


Average




Interest


Average




Interest


Average




Interest


Average




Interest


Average


Average


Income/


Yield/


Average


Income/


Yield/


Average


Income/


Yield/


Average


Income/


Yield/


Average


Income/


Yield/


Balance


Expense


Rate


Balance


Expense


Rate


Balance


Expense


Rate


Balance


Expense


Rate


Balance


Expense


Rate

Assets






























Interest-earning assets:






























Interest-earning cash and equivalents

$11,244


$4


0.14{14cc2b5881a050199a960a1a3483042b446231310e72f0dc471a7a1eddd6b0c3}


$13,664


$4


0.12{14cc2b5881a050199a960a1a3483042b446231310e72f0dc471a7a1eddd6b0c3}


$15,413


$3


0.08{14cc2b5881a050199a960a1a3483042b446231310e72f0dc471a7a1eddd6b0c3}


$12,902


$42


1.31{14cc2b5881a050199a960a1a3483042b446231310e72f0dc471a7a1eddd6b0c3}


$16,269


$68


1.66{14cc2b5881a050199a960a1a3483042b446231310e72f0dc471a7a1eddd6b0c3}

Securities available for sale

8,706


8


0.37{14cc2b5881a050199a960a1a3483042b446231310e72f0dc471a7a1eddd6b0c3}


7,984


12


0.60{14cc2b5881a050199a960a1a3483042b446231310e72f0dc471a7a1eddd6b0c3}


6,804


19


1.12{14cc2b5881a050199a960a1a3483042b446231310e72f0dc471a7a1eddd6b0c3}


5,954


25


1.69{14cc2b5881a050199a960a1a3483042b446231310e72f0dc471a7a1eddd6b0c3}


4,828


25


2.05{14cc2b5881a050199a960a1a3483042b446231310e72f0dc471a7a1eddd6b0c3}































Loan receivables, including held for sale:






























Credit cards

76,039


3,908


20.45{14cc2b5881a050199a960a1a3483042b446231310e72f0dc471a7a1eddd6b0c3}


74,798


3,752


19.96{14cc2b5881a050199a960a1a3483042b446231310e72f0dc471a7a1eddd6b0c3}


75,942


3,740


19.81{14cc2b5881a050199a960a1a3483042b446231310e72f0dc471a7a1eddd6b0c3}


81,716


4,272


21.03{14cc2b5881a050199a960a1a3483042b446231310e72f0dc471a7a1eddd6b0c3}


81,960


4,409


21.34{14cc2b5881a050199a960a1a3483042b446231310e72f0dc471a7a1eddd6b0c3}

Consumer installment loans

2,057


50


9.67{14cc2b5881a050199a960a1a3483042b446231310e72f0dc471a7a1eddd6b0c3}


1,892


46


9.67{14cc2b5881a050199a960a1a3483042b446231310e72f0dc471a7a1eddd6b0c3}


1,546


37


9.63{14cc2b5881a050199a960a1a3483042b446231310e72f0dc471a7a1eddd6b0c3}


1,432


35


9.83{14cc2b5881a050199a960a1a3483042b446231310e72f0dc471a7a1eddd6b0c3}


2,058


48


9.25{14cc2b5881a050199a960a1a3483042b446231310e72f0dc471a7a1eddd6b0c3}

Commercial credit products

1,293


23


7.08{14cc2b5881a050199a960a1a3483042b446231310e72f0dc471a7a1eddd6b0c3}


1,238


22


7.07{14cc2b5881a050199a960a1a3483042b446231310e72f0dc471a7a1eddd6b0c3}


1,150


30


10.49{14cc2b5881a050199a960a1a3483042b446231310e72f0dc471a7a1eddd6b0c3}


1,243


33


10.68{14cc2b5881a050199a960a1a3483042b446231310e72f0dc471a7a1eddd6b0c3}


1,311


34


10.29{14cc2b5881a050199a960a1a3483042b446231310e72f0dc471a7a1eddd6b0c3}

Other

63



– {14cc2b5881a050199a960a1a3483042b446231310e72f0dc471a7a1eddd6b0c3}


77


1


NM


59


1


NM


37



– {14cc2b5881a050199a960a1a3483042b446231310e72f0dc471a7a1eddd6b0c3}


47


1


NM

Total loan receivables, including held for sale

79,452


3,981


19.93{14cc2b5881a050199a960a1a3483042b446231310e72f0dc471a7a1eddd6b0c3}


78,005


3,821


19.49{14cc2b5881a050199a960a1a3483042b446231310e72f0dc471a7a1eddd6b0c3}


78,697


3,808


19.46{14cc2b5881a050199a960a1a3483042b446231310e72f0dc471a7a1eddd6b0c3}


84,428


4,340


20.67{14cc2b5881a050199a960a1a3483042b446231310e72f0dc471a7a1eddd6b0c3}


85,376


4,492


20.87{14cc2b5881a050199a960a1a3483042b446231310e72f0dc471a7a1eddd6b0c3}

Total interest-earning assets

99,402


3,993


15.98{14cc2b5881a050199a960a1a3483042b446231310e72f0dc471a7a1eddd6b0c3}


99,653


3,837


15.32{14cc2b5881a050199a960a1a3483042b446231310e72f0dc471a7a1eddd6b0c3}


100,914


3,830


15.26{14cc2b5881a050199a960a1a3483042b446231310e72f0dc471a7a1eddd6b0c3}


103,284


4,407


17.16{14cc2b5881a050199a960a1a3483042b446231310e72f0dc471a7a1eddd6b0c3}


106,473


4,585


17.08{14cc2b5881a050199a960a1a3483042b446231310e72f0dc471a7a1eddd6b0c3}































Non-interest-earning assets:






























Cash and due from banks

1,525






1,489






1,486






1,450






1,326





Allowance for credit losses

(10,190)






(9,823)






(9,221)






(8,708)






(5,593)





Other assets

5,228






5,021






4,779






4,696






3,872





Total non-interest-earning assets

(3,437)






(3,313)






(2,956)






(2,562)






(395)



































Total assets

$95,965






$96,340






$97,958






$100,722






$106,078



































Liabilities






























Interest-bearing liabilities:






























Interest-bearing deposit accounts

$62,800


$200


1.27{14cc2b5881a050199a960a1a3483042b446231310e72f0dc471a7a1eddd6b0c3}


$63,569


$245


1.53{14cc2b5881a050199a960a1a3483042b446231310e72f0dc471a7a1eddd6b0c3}


$64,298


$293


1.83{14cc2b5881a050199a960a1a3483042b446231310e72f0dc471a7a1eddd6b0c3}


$64,366


$356


2.22{14cc2b5881a050199a960a1a3483042b446231310e72f0dc471a7a1eddd6b0c3}


$65,380


$383


2.32{14cc2b5881a050199a960a1a3483042b446231310e72f0dc471a7a1eddd6b0c3}

Borrowings of consolidated securitization entities

7,809


52


2.65{14cc2b5881a050199a960a1a3483042b446231310e72f0dc471a7a1eddd6b0c3}


8,057


53


2.62{14cc2b5881a050199a960a1a3483042b446231310e72f0dc471a7a1eddd6b0c3}


8,863


59


2.68{14cc2b5881a050199a960a1a3483042b446231310e72f0dc471a7a1eddd6b0c3}


9,986


73


2.94{14cc2b5881a050199a960a1a3483042b446231310e72f0dc471a7a1eddd6b0c3}


10,831


80


2.93{14cc2b5881a050199a960a1a3483042b446231310e72f0dc471a7a1eddd6b0c3}































Senior unsecured notes

7,963


82


4.10{14cc2b5881a050199a960a1a3483042b446231310e72f0dc471a7a1eddd6b0c3}


7,960


82


4.10{14cc2b5881a050199a960a1a3483042b446231310e72f0dc471a7a1eddd6b0c3}


7,958


82


4.14{14cc2b5881a050199a960a1a3483042b446231310e72f0dc471a7a1eddd6b0c3}


8,807


88


4.02{14cc2b5881a050199a960a1a3483042b446231310e72f0dc471a7a1eddd6b0c3}


9,452


93


3.90{14cc2b5881a050199a960a1a3483042b446231310e72f0dc471a7a1eddd6b0c3}































Total interest-bearing liabilities

78,572


334


1.69{14cc2b5881a050199a960a1a3483042b446231310e72f0dc471a7a1eddd6b0c3}


79,586


380


1.90{14cc2b5881a050199a960a1a3483042b446231310e72f0dc471a7a1eddd6b0c3}


81,119


434


2.15{14cc2b5881a050199a960a1a3483042b446231310e72f0dc471a7a1eddd6b0c3}


83,159


517


2.50{14cc2b5881a050199a960a1a3483042b446231310e72f0dc471a7a1eddd6b0c3}


85,663


556


2.58{14cc2b5881a050199a960a1a3483042b446231310e72f0dc471a7a1eddd6b0c3}































Non-interest-bearing liabilities






























Non-interest-bearing deposit accounts

308






307






309






299






281





Other liabilities

4,663






4,308






4,349






4,672






4,906





Total non-interest-bearing liabilities

4,971






4,615






4,658






4,971






5,187



































Total liabilities

83,543






84,201






85,777






88,130






90,850



































Equity






























Total equity

12,422






12,139






12,181






12,592






15,228



































Total liabilities and equity

$95,965






$96,340






$97,958






$100,722






$106,078





Net interest income



$3,659






$3,457






$3,396






$3,890






$4,029

































Interest rate spread(1)





14.29{14cc2b5881a050199a960a1a3483042b446231310e72f0dc471a7a1eddd6b0c3}






13.42{14cc2b5881a050199a960a1a3483042b446231310e72f0dc471a7a1eddd6b0c3}






13.11{14cc2b5881a050199a960a1a3483042b446231310e72f0dc471a7a1eddd6b0c3}






14.66{14cc2b5881a050199a960a1a3483042b446231310e72f0dc471a7a1eddd6b0c3}






14.50{14cc2b5881a050199a960a1a3483042b446231310e72f0dc471a7a1eddd6b0c3}

Net interest margin(2)





14.64{14cc2b5881a050199a960a1a3483042b446231310e72f0dc471a7a1eddd6b0c3}






13.80{14cc2b5881a050199a960a1a3483042b446231310e72f0dc471a7a1eddd6b0c3}






13.53{14cc2b5881a050199a960a1a3483042b446231310e72f0dc471a7a1eddd6b0c3}






15.15{14cc2b5881a050199a960a1a3483042b446231310e72f0dc471a7a1eddd6b0c3}






15.01{14cc2b5881a050199a960a1a3483042b446231310e72f0dc471a7a1eddd6b0c3}































(1) Interest rate spread represents the difference between the yield on total interest-earning assets and the rate on total interest-bearing liabilities. 

(2) Net interest margin represents net interest income divided by average interest-earning assets. 

SYNCHRONY FINANCIAL

AVERAGE BALANCES, NET INTEREST INCOME AND NET INTEREST MARGIN

(unaudited, $ in millions)














Twelve Months Ended
Dec 31, 2020


Twelve Months Ended
Dec 31, 2019




Interest


Average




Interest


Average


Average


Income/


Yield/


Average


Income/


Yield/


Balance


Expense


Rate


Balance


Expense


Rate

Assets












Interest-earning assets:












Interest-earning cash and equivalents

$13,301


$53


0.40{14cc2b5881a050199a960a1a3483042b446231310e72f0dc471a7a1eddd6b0c3}


$12,320


$258


2.09{14cc2b5881a050199a960a1a3483042b446231310e72f0dc471a7a1eddd6b0c3}

Securities available for sale

7,367


64


0.87{14cc2b5881a050199a960a1a3483042b446231310e72f0dc471a7a1eddd6b0c3}


5,464


127


2.32{14cc2b5881a050199a960a1a3483042b446231310e72f0dc471a7a1eddd6b0c3}













Loan receivables, including held for sale:












Credit cards

77,115


15,672


20.32{14cc2b5881a050199a960a1a3483042b446231310e72f0dc471a7a1eddd6b0c3}


85,334


18,384


21.54{14cc2b5881a050199a960a1a3483042b446231310e72f0dc471a7a1eddd6b0c3}

Consumer installment loans

1,733


168


9.69{14cc2b5881a050199a960a1a3483042b446231310e72f0dc471a7a1eddd6b0c3}


1,963


182


9.27{14cc2b5881a050199a960a1a3483042b446231310e72f0dc471a7a1eddd6b0c3}

Commercial credit products

1,231


108


8.77{14cc2b5881a050199a960a1a3483042b446231310e72f0dc471a7a1eddd6b0c3}


1,306


137


10.49{14cc2b5881a050199a960a1a3483042b446231310e72f0dc471a7a1eddd6b0c3}

Other

59


2


3.39{14cc2b5881a050199a960a1a3483042b446231310e72f0dc471a7a1eddd6b0c3}


46


2


4.35{14cc2b5881a050199a960a1a3483042b446231310e72f0dc471a7a1eddd6b0c3}

Total loan receivables, including held for sale

80,138


15,950


19.90{14cc2b5881a050199a960a1a3483042b446231310e72f0dc471a7a1eddd6b0c3}


88,649


18,705


21.10{14cc2b5881a050199a960a1a3483042b446231310e72f0dc471a7a1eddd6b0c3}

Total interest-earning assets

100,806


16,067


15.94{14cc2b5881a050199a960a1a3483042b446231310e72f0dc471a7a1eddd6b0c3}


106,433


19,090


17.94{14cc2b5881a050199a960a1a3483042b446231310e72f0dc471a7a1eddd6b0c3}













Non-interest-earning assets:












Cash and due from banks

1,488






1,327





Allowance for credit losses

(9,488)






(5,902)





Other assets

4,932






3,819





Total non-interest-earning assets

(3,068)






(756)

















Total assets

$97,738






$105,677

















Liabilities












Interest-bearing liabilities:












Interest-bearing deposit accounts

$63,755


$1,094


1.72{14cc2b5881a050199a960a1a3483042b446231310e72f0dc471a7a1eddd6b0c3}


$64,756


$1,566


2.42{14cc2b5881a050199a960a1a3483042b446231310e72f0dc471a7a1eddd6b0c3}

Borrowings of consolidated securitization entities

8,675


237


2.73{14cc2b5881a050199a960a1a3483042b446231310e72f0dc471a7a1eddd6b0c3}


11,941


358


3.00{14cc2b5881a050199a960a1a3483042b446231310e72f0dc471a7a1eddd6b0c3}












Senior unsecured notes

8,171


334


4.09{14cc2b5881a050199a960a1a3483042b446231310e72f0dc471a7a1eddd6b0c3}


9,310


367


3.94{14cc2b5881a050199a960a1a3483042b446231310e72f0dc471a7a1eddd6b0c3}













Total interest-bearing liabilities

80,601


1,665


2.07{14cc2b5881a050199a960a1a3483042b446231310e72f0dc471a7a1eddd6b0c3}


86,007


2,291


2.66{14cc2b5881a050199a960a1a3483042b446231310e72f0dc471a7a1eddd6b0c3}













Non-interest-bearing liabilities












Non-interest-bearing deposit accounts

306






280





Other liabilities

4,498






4,473





Total non-interest-bearing liabilities

4,804






4,753

















Total liabilities

85,405






90,760

















Equity












Total equity

12,333






14,917

















Total liabilities and equity

$97,738






$105,677





Net interest income



$14,402






$16,799















Interest rate spread(1)





13.87{14cc2b5881a050199a960a1a3483042b446231310e72f0dc471a7a1eddd6b0c3}






15.28{14cc2b5881a050199a960a1a3483042b446231310e72f0dc471a7a1eddd6b0c3}

Net interest margin(2)





14.29{14cc2b5881a050199a960a1a3483042b446231310e72f0dc471a7a1eddd6b0c3}






15.78{14cc2b5881a050199a960a1a3483042b446231310e72f0dc471a7a1eddd6b0c3}













(1) Interest rate spread represents the difference between the yield on total interest-earning assets and the rate on total interest-bearing liabilities. 

(2) Net interest margin represents net interest income divided by average interest-earning assets. 

SYNCHRONY FINANCIAL

BALANCE SHEET STATISTICS

(unaudited, $ in millions, except per share statistics)















Quarter Ended




Dec 31,
2020


Sep 30,
2020


Jun 30,
2020


Mar 31,
2020


Dec 31,
2019


Dec 31, 2020 vs.
Dec 31, 2019

BALANCE SHEET STATISTICS













Total common equity

$11,967


$11,365


$11,165


$11,236


$14,354


$(2,387)

(16.6){14cc2b5881a050199a960a1a3483042b446231310e72f0dc471a7a1eddd6b0c3}

Total common equity as a {14cc2b5881a050199a960a1a3483042b446231310e72f0dc471a7a1eddd6b0c3} of total assets

12.47{14cc2b5881a050199a960a1a3483042b446231310e72f0dc471a7a1eddd6b0c3}


11.88{14cc2b5881a050199a960a1a3483042b446231310e72f0dc471a7a1eddd6b0c3}


11.56{14cc2b5881a050199a960a1a3483042b446231310e72f0dc471a7a1eddd6b0c3}


11.46{14cc2b5881a050199a960a1a3483042b446231310e72f0dc471a7a1eddd6b0c3}


13.69{14cc2b5881a050199a960a1a3483042b446231310e72f0dc471a7a1eddd6b0c3}



(1.22){14cc2b5881a050199a960a1a3483042b446231310e72f0dc471a7a1eddd6b0c3}














Tangible assets

$93,745


$93,489


$94,300


$95,752


$102,483


$(8,738)

(8.5){14cc2b5881a050199a960a1a3483042b446231310e72f0dc471a7a1eddd6b0c3}

Tangible common equity(1)

$9,764


$9,196


$8,921


$8,950


$12,011


$(2,247)

(18.7){14cc2b5881a050199a960a1a3483042b446231310e72f0dc471a7a1eddd6b0c3}

Tangible common equity as a {14cc2b5881a050199a960a1a3483042b446231310e72f0dc471a7a1eddd6b0c3} of tangible assets(1)

10.42{14cc2b5881a050199a960a1a3483042b446231310e72f0dc471a7a1eddd6b0c3}


9.84{14cc2b5881a050199a960a1a3483042b446231310e72f0dc471a7a1eddd6b0c3}


9.46{14cc2b5881a050199a960a1a3483042b446231310e72f0dc471a7a1eddd6b0c3}


9.35{14cc2b5881a050199a960a1a3483042b446231310e72f0dc471a7a1eddd6b0c3}


11.72{14cc2b5881a050199a960a1a3483042b446231310e72f0dc471a7a1eddd6b0c3}



(1.30){14cc2b5881a050199a960a1a3483042b446231310e72f0dc471a7a1eddd6b0c3}

Tangible common equity per share(1)

$16.72


$15.75


$15.28


$15.35


$19.50


$(2.78)

(14.3){14cc2b5881a050199a960a1a3483042b446231310e72f0dc471a7a1eddd6b0c3}














REGULATORY CAPITAL RATIOS(2)(3)














Basel III – CECL Transition


Basel III 




Total risk-based capital ratio(4)

18.1{14cc2b5881a050199a960a1a3483042b446231310e72f0dc471a7a1eddd6b0c3}


18.1{14cc2b5881a050199a960a1a3483042b446231310e72f0dc471a7a1eddd6b0c3}


17.6{14cc2b5881a050199a960a1a3483042b446231310e72f0dc471a7a1eddd6b0c3}


16.5{14cc2b5881a050199a960a1a3483042b446231310e72f0dc471a7a1eddd6b0c3}


16.3{14cc2b5881a050199a960a1a3483042b446231310e72f0dc471a7a1eddd6b0c3}




Tier 1 risk-based capital ratio(5)

16.8{14cc2b5881a050199a960a1a3483042b446231310e72f0dc471a7a1eddd6b0c3}


16.7{14cc2b5881a050199a960a1a3483042b446231310e72f0dc471a7a1eddd6b0c3}


16.3{14cc2b5881a050199a960a1a3483042b446231310e72f0dc471a7a1eddd6b0c3}


15.2{14cc2b5881a050199a960a1a3483042b446231310e72f0dc471a7a1eddd6b0c3}


15.0{14cc2b5881a050199a960a1a3483042b446231310e72f0dc471a7a1eddd6b0c3}

















Tier 1 leverage ratio(6)

14.0{14cc2b5881a050199a960a1a3483042b446231310e72f0dc471a7a1eddd6b0c3}


13.3{14cc2b5881a050199a960a1a3483042b446231310e72f0dc471a7a1eddd6b0c3}


12.7{14cc2b5881a050199a960a1a3483042b446231310e72f0dc471a7a1eddd6b0c3}


12.3{14cc2b5881a050199a960a1a3483042b446231310e72f0dc471a7a1eddd6b0c3}


12.6{14cc2b5881a050199a960a1a3483042b446231310e72f0dc471a7a1eddd6b0c3}




Common equity Tier 1 capital ratio

15.9{14cc2b5881a050199a960a1a3483042b446231310e72f0dc471a7a1eddd6b0c3}


15.8{14cc2b5881a050199a960a1a3483042b446231310e72f0dc471a7a1eddd6b0c3}


15.3{14cc2b5881a050199a960a1a3483042b446231310e72f0dc471a7a1eddd6b0c3}


14.3{14cc2b5881a050199a960a1a3483042b446231310e72f0dc471a7a1eddd6b0c3}


14.1{14cc2b5881a050199a960a1a3483042b446231310e72f0dc471a7a1eddd6b0c3}































(1) Tangible common equity (“TCE”) is a non-GAAP measure. We believe TCE is a more meaningful measure of the net asset value of the Company to investors. For corresponding reconciliation of TCE to a GAAP financial measure, see Reconciliation of Non-GAAP Measures and Calculations of Regulatory Measures.

(2) Regulatory capital ratios at December 31, 2020 are preliminary and therefore subject to change.

(3) Capital ratios starting March 31, 2020 reflect election to delay for two years an estimate of CECL’s effect on regulatory capital in accordance with the interim final rule issued by U.S. banking agencies in March 2020.

(4) Total risk-based capital ratio is the ratio of total risk-based capital divided by risk-weighted assets.






(5) Tier 1 risk-based capital ratio is the ratio of Tier 1 capital divided by risk-weighted assets.








(6) Tier 1 leverage ratio is the ratio of Tier 1 capital divided by total average assets, after certain adjustments. Tier 1 leverage ratios are based upon the use of daily averages for all periods presented.

SYNCHRONY FINANCIAL

PLATFORM RESULTS

(unaudited, $ in millions)


Quarter Ended




Twelve Months Ended





Dec 31,
2020


Sep 30,
2020


Jun 30,
2020


Mar 31,
2020


Dec 31,
2019


4Q’20 vs. 4Q’19


Dec 31,
2020


Dec 31,
2019


YTD’20 vs. YTD’19

RETAIL CARD




















Purchase volume(1)(2)

$31,256


$27,374


$24,380


$24,008


$30,968


$288

0.9{14cc2b5881a050199a960a1a3483042b446231310e72f0dc471a7a1eddd6b0c3}


$107,018


$114,440


$(7,422)

(6.5){14cc2b5881a050199a960a1a3483042b446231310e72f0dc471a7a1eddd6b0c3}

Period-end loan receivables

$52,130


$49,595


$49,967


$52,390


$56,387


$(4,257)

(7.5){14cc2b5881a050199a960a1a3483042b446231310e72f0dc471a7a1eddd6b0c3}


$52,130


$56,387


$(4,257)

(7.5){14cc2b5881a050199a960a1a3483042b446231310e72f0dc471a7a1eddd6b0c3}

Average loan receivables, including held for sale

$50,235


$49,503


$50,238


$53,820


$54,505


$(4,270)

(7.8){14cc2b5881a050199a960a1a3483042b446231310e72f0dc471a7a1eddd6b0c3}


$50,943


$58,984


$(8,041)

(13.6){14cc2b5881a050199a960a1a3483042b446231310e72f0dc471a7a1eddd6b0c3}

Average active accounts (in thousands)(2)(3)

49,001


47,065


46,970


53,018


54,662


(5,661)

(10.4){14cc2b5881a050199a960a1a3483042b446231310e72f0dc471a7a1eddd6b0c3}


49,258


57,073


(7,815)

(13.7){14cc2b5881a050199a960a1a3483042b446231310e72f0dc471a7a1eddd6b0c3}





















Interest and fees on loans

$2,719


$2,619


$2,640


$3,037


$3,143


$(424)

(13.5){14cc2b5881a050199a960a1a3483042b446231310e72f0dc471a7a1eddd6b0c3}


$11,015


$13,557


$(2,542)

(18.8){14cc2b5881a050199a960a1a3483042b446231310e72f0dc471a7a1eddd6b0c3}

Other income

$50


$84


$56


$59


$77


$(27)

(35.1){14cc2b5881a050199a960a1a3483042b446231310e72f0dc471a7a1eddd6b0c3}


$249


$277


$(28)

(10.1){14cc2b5881a050199a960a1a3483042b446231310e72f0dc471a7a1eddd6b0c3}





















Retailer share arrangements

$(1,026)


$(877)


$(752)


$(904)


$(988)


$(38)

3.8{14cc2b5881a050199a960a1a3483042b446231310e72f0dc471a7a1eddd6b0c3}


$(3,559)


$(3,762)


$203

(5.4){14cc2b5881a050199a960a1a3483042b446231310e72f0dc471a7a1eddd6b0c3}









































PAYMENT SOLUTIONS




















Purchase volume(1)(2)

$5,942


$5,901


$4,823


$5,375


$6,402


$(460)

(7.2){14cc2b5881a050199a960a1a3483042b446231310e72f0dc471a7a1eddd6b0c3}


$22,041


$23,880


$(1,839)

(7.7){14cc2b5881a050199a960a1a3483042b446231310e72f0dc471a7a1eddd6b0c3}

Period-end loan receivables

$20,153


$19,550


$19,119


$19,973


$20,528


$(375)

(1.8){14cc2b5881a050199a960a1a3483042b446231310e72f0dc471a7a1eddd6b0c3}


$20,153


$20,528


$(375)

(1.8){14cc2b5881a050199a960a1a3483042b446231310e72f0dc471a7a1eddd6b0c3}

Average loan receivables, including held for sale

$19,734


$19,247


$19,065


$20,344


$20,701


$(967)

(4.7){14cc2b5881a050199a960a1a3483042b446231310e72f0dc471a7a1eddd6b0c3}


$19,597


$19,918


$(321)

(1.6){14cc2b5881a050199a960a1a3483042b446231310e72f0dc471a7a1eddd6b0c3}

Average active accounts (in thousands)(2)(3)

11,536


11,497


11,900


12,681


12,713


(1,177)

(9.3){14cc2b5881a050199a960a1a3483042b446231310e72f0dc471a7a1eddd6b0c3}


11,921


12,451


(530)

(4.3){14cc2b5881a050199a960a1a3483042b446231310e72f0dc471a7a1eddd6b0c3}





















Interest and fees on loans

$673


$650


$632


$706


$737


$(64)

(8.7){14cc2b5881a050199a960a1a3483042b446231310e72f0dc471a7a1eddd6b0c3}


$2,661


$2,829


$(168)

(5.9){14cc2b5881a050199a960a1a3483042b446231310e72f0dc471a7a1eddd6b0c3}

Other income

$4


$13


$14


$13


$4


$-

– {14cc2b5881a050199a960a1a3483042b446231310e72f0dc471a7a1eddd6b0c3}


$44


$15


$29

193.3{14cc2b5881a050199a960a1a3483042b446231310e72f0dc471a7a1eddd6b0c3}





















Retailer share arrangements

$(17)


$(20)


$(18)


$(18)


$(37)


$20

(54.1){14cc2b5881a050199a960a1a3483042b446231310e72f0dc471a7a1eddd6b0c3}


$(73)


$(85)


$12

(14.1){14cc2b5881a050199a960a1a3483042b446231310e72f0dc471a7a1eddd6b0c3}









































CARECREDIT




















Purchase volume(1)

$2,676


$2,738


$1,952


$2,659


$2,842


$(166)

(5.8){14cc2b5881a050199a960a1a3483042b446231310e72f0dc471a7a1eddd6b0c3}


$10,025


$11,091


$(1,066)

(9.6){14cc2b5881a050199a960a1a3483042b446231310e72f0dc471a7a1eddd6b0c3}

Period-end loan receivables

$9,584


$9,376


$9,227


$10,106


$10,300


$(716)

(7.0){14cc2b5881a050199a960a1a3483042b446231310e72f0dc471a7a1eddd6b0c3}


$9,584


$10,300


$(716)

(7.0){14cc2b5881a050199a960a1a3483042b446231310e72f0dc471a7a1eddd6b0c3}

Average loan receivables, including held for sale

$9,483


$9,255


$9,394


$10,264


$10,170


$(687)

(6.8){14cc2b5881a050199a960a1a3483042b446231310e72f0dc471a7a1eddd6b0c3}


$9,598


$9,747


$(149)

(1.5){14cc2b5881a050199a960a1a3483042b446231310e72f0dc471a7a1eddd6b0c3}

Average active accounts (in thousands)(3)

5,724


5,708


5,966


6,379


6,359


(635)

(10.0){14cc2b5881a050199a960a1a3483042b446231310e72f0dc471a7a1eddd6b0c3}


5,952


6,197


(245)

(4.0){14cc2b5881a050199a960a1a3483042b446231310e72f0dc471a7a1eddd6b0c3}





















Interest and fees on loans

$589


$552


$536


$597


$612


$(23)

(3.8){14cc2b5881a050199a960a1a3483042b446231310e72f0dc471a7a1eddd6b0c3}


$2,274


$2,319


$(45)

(1.9){14cc2b5881a050199a960a1a3483042b446231310e72f0dc471a7a1eddd6b0c3}

Other income

$28


$34


$25


$25


$23


$5

21.7{14cc2b5881a050199a960a1a3483042b446231310e72f0dc471a7a1eddd6b0c3}


$112


$79


$33

41.8{14cc2b5881a050199a960a1a3483042b446231310e72f0dc471a7a1eddd6b0c3}





















Retailer share arrangements

$(4)


$(2)


$(3)


$(4)


$(4)


$-

– {14cc2b5881a050199a960a1a3483042b446231310e72f0dc471a7a1eddd6b0c3}


$(13)


$(11)


$(2)

18.2{14cc2b5881a050199a960a1a3483042b446231310e72f0dc471a7a1eddd6b0c3}





















TOTAL SYF




















Purchase volume(1)(2)

$39,874


$36,013


$31,155


$32,042


$40,212


$(338)

(0.8){14cc2b5881a050199a960a1a3483042b446231310e72f0dc471a7a1eddd6b0c3}


$139,084


$149,411


$(10,327)

(6.9){14cc2b5881a050199a960a1a3483042b446231310e72f0dc471a7a1eddd6b0c3}

Period-end loan receivables

$81,867


$78,521


$78,313


$82,469


$87,215


$(5,348)

(6.1){14cc2b5881a050199a960a1a3483042b446231310e72f0dc471a7a1eddd6b0c3}


$81,867


$87,215


$(5,348)

(6.1){14cc2b5881a050199a960a1a3483042b446231310e72f0dc471a7a1eddd6b0c3}

Average loan receivables, including held for sale

$79,452


$78,005


$78,697


$84,428


$85,376


$(5,924)

(6.9){14cc2b5881a050199a960a1a3483042b446231310e72f0dc471a7a1eddd6b0c3}


$80,138


$88,649


$(8,511)

(9.6){14cc2b5881a050199a960a1a3483042b446231310e72f0dc471a7a1eddd6b0c3}

Average active accounts (in thousands)(2)(3)

66,261


64,270


64,836


72,078


73,734


(7,473)

(10.1){14cc2b5881a050199a960a1a3483042b446231310e72f0dc471a7a1eddd6b0c3}


67,131


75,721


(8,590)

(11.3){14cc2b5881a050199a960a1a3483042b446231310e72f0dc471a7a1eddd6b0c3}





















Interest and fees on loans

$3,981


$3,821


$3,808


$4,340


$4,492


$(511)

(11.4){14cc2b5881a050199a960a1a3483042b446231310e72f0dc471a7a1eddd6b0c3}


$15,950


$18,705


$(2,755)

(14.7){14cc2b5881a050199a960a1a3483042b446231310e72f0dc471a7a1eddd6b0c3}

Other income

$82


$131


$95


$97


$104


$(22)

(21.2){14cc2b5881a050199a960a1a3483042b446231310e72f0dc471a7a1eddd6b0c3}


$405


$371


$34

9.2{14cc2b5881a050199a960a1a3483042b446231310e72f0dc471a7a1eddd6b0c3}





















Retailer share arrangements

$(1,047)


$(899)


$(773)


$(926)


$(1,029)


$(18)

1.7{14cc2b5881a050199a960a1a3483042b446231310e72f0dc471a7a1eddd6b0c3}


$(3,645)


$(3,858)


$213

(5.5){14cc2b5881a050199a960a1a3483042b446231310e72f0dc471a7a1eddd6b0c3}





















(1) Purchase volume, or net credit sales, represents the aggregate amount of charges incurred on credit cards or other credit product accounts less returns during the period. 

(2) Includes activity and balances associated with loan receivables held for sale.

(3) Active accounts represent credit card or installment loan accounts on which there has been a purchase, payment or outstanding balance in the current month.

SYNCHRONY FINANCIAL

RECONCILIATION OF NON-GAAP MEASURES AND CALCULATIONS OF REGULATORY MEASURES(1)

(unaudited, $ in millions, except per share statistics)


Quarter Ended


Dec 31,
2020


Sep 30,
2020


Jun 30,
2020


Mar 31,
2020


Dec 31,
2019

COMMON EQUITY AND REGULATORY CAPITAL MEASURES(2)










GAAP Total equity

$12,701


$12,099


$11,899


$11,970


$15,088

Less: Preferred stock

(734)


(734)


(734)


(734)


(734)

Less: Goodwill

(1,078)


(1,078)


(1,078)


(1,078)


(1,078)

Less: Intangible assets, net

(1,125)


(1,091)


(1,166)


(1,208)


(1,265)

Tangible common equity

$9,764


$9,196


$8,921


$8,950


$12,011

Add: CECL transition amount

2,686


2,656


2,570


2,417












Adjustments for certain deferred tax liabilities and certain items in accumulated comprehensive income (loss)

341


305


302


304


319

Common equity Tier 1 

$12,791


$12,157


$11,793


$11,671


$12,330

Preferred  stock

734


734


734


734


734

Tier 1 capital

$13,525


$12,891


$12,527


$12,405


$13,064











Add: Allowance for credit losses includible in risk-based capital

1,079


1,034


1,031


1,082


1,147

Total Risk-based capital

$14,604


$13,925


$13,558


$13,487


$14,211











ASSET MEASURES(2)










Total average assets

$95,965


$96,340


$97,958


$100,722


$106,078

Adjustments for:










Add: CECL transition amount

2,686


2,656


2,570


2,417


Disallowed goodwill and other disallowed intangible assets
(net of related deferred tax liabilities) and other

(1,924)


(1,906)


(1,980)


(2,010)


(2,059)











Total assets for leverage purposes

$96,727


$97,090


$98,548


$101,129


$104,019











Risk-weighted assets

$80,561


$76,990


$77,048


$81,639


$87,302











CECL FULLY PHASED-IN CAPITAL MEASURES










Tier 1 capital

$13,525


$12,891


$12,527


$12,405


$13,064

Less: CECL transition adjustment

(2,686)


(2,656)


(2,570)


(2,417)


Tier 1 capital (CECL fully phased-in)

$10,839


$10,235


$9,957


$9,988


$13,064

Add: Allowance for credit losses

10,265


10,146


9,802


9,175


5,602

Tier 1 capital (CECL fully phased-in) + Reserves for credit losses

$21,104


$20,381


$19,759


$19,163


$18,666











Risk-weighted assets

$80,561


$76,990


$77,048


$81,639


$87,302

Less: CECL transition adjustment

(2,477)


(2,447)


(2,361)


(2,204)


Risk-weighted assets (CECL fully phased-in)

$78,084


$74,543


$74,687


$79,435


$87,302











TANGIBLE COMMON EQUITY PER SHARE










GAAP book value per share

$20.49


$19.47


$19.13


$19.27


$23.31

Less: Goodwill

(1.85)


(1.85)


(1.85)


(1.85)


(1.75)

Less: Intangible assets, net

(1.92)


(1.87)


(2.00)


(2.07)


(2.06)

Tangible common equity per share

$16.72


$15.75


$15.28


$15.35


$19.50











(1) Regulatory measures at December 31, 2020 are presented on an estimated basis.

(2) Capital ratios starting March 31, 2020 reflect election to delay for two years an estimate of CECL’s effect on regulatory capital in accordance with the interim final rule issued by U.S. banking agencies in March 2020

SOURCE Synchrony

Related Links

www.synchrony.com

You may have missed