Synchrony Financial : Presentation Q1'26

Published: 2026-04-21 05:59:42 ET SYF

Published on 04/21/2026 at 05:59 am EDT

FINANCIAL RESULTS

April 21, 2026

BEST COMPANIES TO WORK FOR IN THE U.S.

Customer engagement1

Culture drives results

New & renewed partnerships

69mm average active accounts $43bn purchase volume $100bn loan receivables2

Returning capital to shareholders

Cumulative capital returned since IPO

$17.8bn

$9.3bn

$0.7bn

$25.2bn

Repurchases

Dividends

Board of Directors approved:

a new $6.5bn share repurchase program of common stock without set expiration date, commencing 2Q263, and

a planned 13% increase in the quarterly cash dividend to $0.34 per share of common stock,

2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 1Q'26

commencing 3Q26

(1) Customer engagement metrics at or for the quarter ended March 31, 2026. (2) Unless otherwise indicated, references to Loan receivables do not include Loan receivables held for sale. (3) Replaces prior program, which was scheduled to expire on June 30, 2026

Growth

Results

Capital & Shareholder Value

Purchase volume +6%

Co-Branded Cards1: $22.0bn, +20%

$40.7bn $43.0bn

Net interest margin

15.50%

PY: 14.74%

Common Equity Tier 1 (CET1) capital ratio4

13.2% 12.7%

Loan receivables2 -%

Co-Branded Cards1: $33.9bn, +22%

$99.6bn $100.1bn

Average active accounts3 (1)%

Net charge-offs 5.42%

PY: 6.38%

Efficiency ratio 35.6%

PY: 33.4%

1Q'25 2Q'25 3Q'25 4Q'25 1Q'26

Capital returned

$0.7bn

$1.0bn

1Q'25 2Q'25 3Q'25 4Q'25 1Q'26

Book value per share

$40.37 $45.29

1Q'25 2Q'25 3Q'25 4Q'25 1Q'26

69.3mm 68.8mm

Tangible book value per share5

Diluted earnings per share

$2.27

PY: $1.89

Return on assets

2.7%

PY: 2.5%

$34.79 $37.62

1Q'25 2Q'25 3Q'25 4Q'25 1Q'26

(1) Represents in- and out-of-partner activity for Dual Card and general purpose co-branded consumer card programs. (2) Unless otherwise indicated, references to Loan receivables do not include Loan receivables held for sale.

(3) Credit card or installment loan accounts on which there has been a purchase, payment or outstanding balance in the current month. (4) Amounts at March 31, 2026 are preliminary and therefore subject to change. (5) This is a non-GAAP measure. See Non-GAAP reconciliation in appendix.

By Platform ($bn)

B / (W)1

1Q'25

1Q'26

Interest expense

968

1,086

11%

Net interest income

4,635

4,464

Provision for credit losses

1,335

1,491

10%

Other income

133

149

(11)%

Other expense

1,316

1,243

(6)%

Pre-tax earnings

1,047

984

Provision for income taxes

242

227

(7)%

Retailer share arrangements (RSA) (1,070) (895) (20)%

Home & Auto2

Results ($mm, except per share statistics)

B / (W)

1Q'25

1Q'26

Interest income

$5,603

$5,550

Loan receivables

$29.1

$30.3

(4)%

Purchase volume $9.4 $9.4 -% Interest and fees on loans $1.4 $1.4 (2)%

Digital

Loan receivables $28.7 $27.8 3%

Purchase volume $13.5 $12.5 8% Interest and fees on loans $1.6 $1.5 6%

Diversified & Value

Loan receivables

$20.3

$19.4

Purchase volume

$14.9

$13.7

Interest and fees on loans

$1.2

Health & Wellness

Net earnings

805

757

Loan receivables

Purchase volume

$15.3

$3.9

$15.2

$3.8

Preferred dividends

Interest and fees on loans

$0.9

Net earnings available to common stockholders

$784 $736 7%

Lifestyle

Diluted earnings per share $2.27 $1.89 20%

Loan receivables

$6.5

$6.6

(1)%

Purchase volume

$1.2

Interest and fees on loans

$0.3

(1)%

(1) Percentages calculated from amounts presented in millions in the financial supplement. (2) All Home & Auto metrics have been recast to remove amounts associated with a Home & Auto program agreement sold in October 2025. See footnotes in financial supplement for additional information.

Investment income

Interest & fees

Interest expense

(20)%

$238

$5,312

$190

$5,413

$(1,086)

$(968)

+2%

+11%

Highlights

Net interest income ($mm)

Net int. income

1Q'25

1Q'26

B / (W)

$4,464

$4,635

Net interest income increased 4%, or $171 million

Interest and fees increased 2%, or $101 million primarily driven by the impact of our PPPCs1, partially offset by lower benchmark rates

Lower benchmark rates primarily drove reductions in interest expense by 11% or $118 million and a reduction in investment income by 20% or

$48 million

Net interest margin of 15.50% increased 76bps

Reflects higher Loan receivables yield and lower liabilities cost, partially offset by lower liquidity portfolio yield

Loan receivables mix as a percent of Interest-earning assets of 83.03% increased 76bps

Net interest margin

1Q'25 Net interest margin

14.74%

Loan receivables yield

+0.39 %

Interest-bearing liabilities cost

+0.35 %

Mix of Interest-earning assets

+0.14 %

Liquidity portfolio yield

(0.12)%

1Q'26 Net interest margin

15.50%

Retailer share arrangements increased $175 million and were 4.3% of average loan receivables reflecting program performance which included lower Net charge-offs and the impact of our PPPCs

Payment rate2 of 16.3% up approximately 50bps vs. 1Q'25 and up approximately 110bps vs. pre-pandemic 5-year historical average ('15-'19)3

Primarily reflects shifts in portfolio/product mix, new portfolio seasoning, the impact of our previous credit actions and higher average tax refunds

(1) Product, Pricing, and Policy Changes (or "PPPCs"). (2) Customer payments received during the period divided by beginning of period loan receivables, including Loan receivables held for sale. (3) Excludes portfolios sold in 2019 and 2022.

Results ($mm)

Other expense

1Q'25

1Q'26

B / (W)

$1,243

$1,316

(6)%

Other

Information processing

Marketing and business dev

Professional fees

(17)%

$515

$506

$209

$217

$114

$116

$219

$262

$185

$216

Highlights

32.6%

34.1%

33.4%

35.6%

36.9%

Other expense increased 6%, or $73 million

Increase primarily driven by technology investments and higher operational losses

Information processing increase driven by costs related to technology investments

Other increase primarily attributable to higher operational losses

Efficiency ratio 35.6% vs. 33.4% prior year

Efficiency ratio1

(20)%

+2%

+4%

Employee costs

(2)%

1Q'25 2Q'25 3Q'25 4Q'25 1Q'26 7

(1) Other expense divided by sum of Net interest income, plus Other income, less Retailer share arrangements.

Highlights

Provision for credit losses decreased 10%, or $156 million, primarily driven by lower Net charge-offs of $242 million, partially offset by a $97 million reserve release in the prior year

Credit trends1

30+ days past due

$mm, % of period-end loan receivables

4.74% 4.70% 4.52% 4.49% 4.54%

Net charge-offs

6.31%

6.45% 6.38%

5.37% 5.42%

$1,585

$1,661 $1,588

$1,367 $1,346

$mm, annualized as % of average loan receivables, including held for sale

$4,820

$4,925

$4,505

$4,660 $4,543

1Q'24 2Q'24 3Q'24 4Q'24 1Q'25 2Q'25 3Q'25 4Q'25 1Q'26 1Q'24 2Q'24 3Q'24 4Q'24 1Q'25 2Q'25 3Q'25 4Q'25 1Q'26

90+ days past due

$mm, % of period-end loan receivables

$2,284

$2,248

$2,285

$2,512

$2,459

2.42% 2.40% 2.29% 2.17% 2.28%

Allowance for credit losses2

$mm, % of period-end loan receivables

$10,905

$10,428

$10,442

$10,828

$10,929

10.72% 10.44% 10.87% 10.06% 10.42%

1Q'24 2Q'24 3Q'24 4Q'24 1Q'25 2Q'25 3Q'25 4Q'25 1Q'26 1Q'24 2Q'24 3Q'24 4Q'24 1Q'25 2Q'25 3Q'25 4Q'25 1Q'26

Unless otherwise indicated, references to Loan receivables do not include Loan receivables held for sale. (2) Excludes reserves for credit exposures primarily related to purchase commitments for loan portfolio acquisitions.

Capital ratios1

Funding and liquidity ($bn)

Total funding

1Q'25

1Q'26

% total

$100.4

$99.3

100%

CET1 capital ratio Tier 1 capital ratio

13.2% 12.7%

Unsecured

$8.4

$7.5

Secured

$8.6

$8.9

Deposits

$83.4

$82.9

1Q'25 1Q'26

14.4% 13.9%

1Q'25 1Q'26

Total capital ratio Tier 1 capital + credit loss

reserve ratio2

25.1% 24.1%

16.5% 16.0%

Common Equity Tier 1 (CET1) ratio

83%

1Q'25 1Q'26

1Q'25 CET1%

13.2 %

Net earnings

+3.5 %

Share repurchases

(3.2)%

Common and preferred dividends

(0.5)%

Risk-weighted asset changes

- %

Liquid assets

$23.8

$22.8

Other activity, net

(0.3)%

% of total assets

19.5%

18.8%

1Q'26 CET1%

12.7 %

Amounts at March 31, 2026 are preliminary and therefore subject to change.

Sum of "Tier 1 Capital" and "Allowance for Credit Losses," divided by "Total Risk-Weighted Assets." This ratio is a non-GAAP measure. See Non-GAAP reconciliation in appendix.

Ending loan receivables growth

Net charge-off rate

Earnings per diluted share

Baseline assumptions

(excluding impacts of qualitative overlays)

No regulatory or legislative changes

Stable macroeconomic environment

No significant change in inflation rates

No additional modifications to PPPCs

No additional broad-based credit refinements

Commentary

Ending loan receivables growth

FY'26 EPS

Strong purchase volume growth expected to continue throughout 2026

Payment rate expected to remain elevated

Receivables growth expected to accelerate through second half of 2026

Net interest income growth, reflecting building impact of PPPCs on I&F and lower funding liabilities costs, partially offset by lower late fee incidence and new account acceleration

Continued strength in delinquency and net charge-off performance; continue to expect relative stability and will follow normal seasonality patterns with losses peaking in 2Q'26

RSA / Average loan receivables increasing, reflecting program performance; expected to stay within target 4.0% - 4.5% range

Other expense growth in line with receivables, ex-$98mm notable items in FY25

(comments and trends in comparison to 2025, except where noted) 10

The following table sets forth transaction related activity and other notable items incurred during 1Q'26 and 1Q'25.

$ in millions

Quarter Ended March 31

Transaction related activity Provision for credit losses: Loan portfolio acquisition

2026

2025

Total

Notable items

Notable Other expense items:

Charitable Contribution

$15

Ally Lending restructuring charge

Preparatory expenses related to Late fee rule change

Total

$28

The following table sets forth a reconciliation between GAAP results and non-GAAP adjusted results.

$ in millions, except per share data

1Q'26

4Q'25

3Q'25

2Q'25

1Q'25

Tangible common equity:

GAAP Total equity

$16,477

$16,766

$17,065

$16,952

$16,581

Less: Preferred stock

(1,222)

Less: Goodwill

(1,363)

(1,274)

Less: Intangible assets, net

(1,223)

(1,255)

(909)

(862)

(847)

Tangible common equity

$12,669

$12,926

$13,660

$13,594

$13,238

Tangible book value per share:

Book value per share

$45.29

$44.74

$44.00

$42.30

$40.37

Less: Goodwill

(4.04)

(3.92)

(3.55)

(3.43)

(3.35)

Less: Intangible assets, net

(3.63)

(3.61)

(2.52)

(2.32)

(2.23)

Tangible book value per share

$37.62

$37.21

$37.93

$36.55

$34.79

The following table sets forth the components of our Tier 1 Capital + Reserves ratio for the periods indicated below.

$ in millions

At March 31

2026 1

2025

Tier 1 Capital

$14,207

$14,668

Add: Allowance for credit losses

10,428

10,828

Tier 1 capital plus Reserves for credit losses

$24,635

$25,496

Risk-weighted assets

$102,095

$101,625

(1) Amounts at March 31, 2026 are preliminary and therefore subject to change.

Disclaimer

Synchrony Financial published this content on April 21, 2026, and is solely responsible for the information contained herein. Distributed via Public Technologies (PUBT), unedited and unaltered, on April 21, 2026 at 09:58 UTC.