Synchrony Financial : Earnings Release Q1'26

Published: 2026-04-21 05:59:45 ET SYF

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

For Immediate Release Synchrony Financial (NYSE: SYF)

April 21, 2026

STAMFORD, Conn - Synchrony Financial (NYSE: SYF) today announced first quarter 2026 net earnings of $805 million, or $2.27 per diluted share, compared to $757 million, or $1.89 per diluted share in the first quarter 2025.

The Company announced that the Board of Directors approved a new share repurchase program of up to $6.5 billion of the Company's common stock, which commences in second quarter 2026 and, in a change from our prior share repurchase programs, does not have an expiration date. The new share repurchase program replaces the Company's prior program, which was scheduled to expire on June 30, 2026.

In addition, the Board approved a planned 13% increase in the quarterly cash dividend to $0.34 per share of common stock beginning in third quarter 2026.

CEO Commentary

"Synchrony's year is off to a strong start with record first quarter purchase volume," said Brian Doubles, Synchrony's President and Chief Executive Officer. "The broad utility and strong value propositions of our product offerings continued to resonate with both new and existing customers, contributing to continued sequential improvement in our average active account trends as well as higher spend per account across all five of our platforms."

"As we look to the remainder of 2026, Synchrony is focused on driving our momentum forward by executing across our key strategic priorities to deepen our customer relationships, extend our reach and deliver still greater outcomes for the many small and midsized businesses, partners and providers we serve at the center of our local and national economies."

"I am proud to say that we are doing all of this while also earning the privilege of being ranked as the #1 "Best Company to Work For" in the U.S. by Fortune magazine and Great Place to Work in 2026. Together, all of the incredible people at Synchrony have built a high-trust culture that makes us faster, bolder, and better for the customers and partners we serve every single day."

2.7%

Return on Assets

12.7%

CET1 Ratio

$1.0B

Capital Returned

$100.1B

Loan Receivables

Key Operating and Financial Metrics*

Purchase volume increased 6% to $43.0 billion

Loan receivables were flat at $100.1 billion

Average active accounts decreased 1% to 68.8 million

Net interest margin increased 76 basis points to 15.50%

Efficiency ratio increased 220 basis points to 35.6%

Return on assets increased 20 basis points to 2.7%

Return on equity increased 110 basis points to 19.5%

Return on tangible common equity** increased 210 basis points to 24.5%

Book value per share increased 12% to $45.29

Tangible book value per share** increased 8% to $37.62

CFO Commentary

"Synchrony's first quarter financial results were highlighted by continued, sequential acceleration in purchase volume growth and positive inflection in ending loan receivables growth - all while maintaining our credit discipline amid an uncertain macroeconomic backdrop," said Brian Wenzel, Synchrony's Executive Vice President and Chief Financial Officer.

"The combination of higher interest and fees, lower interest expense and lower net charge-offs supported stronger program performance in the first quarter versus the prior year, which was shared through higher RSA. This continued alignment of interests between Synchrony and our partners sets us apart by sharing economic performance with our partners and generating consistent, risk-adjusted returns to our stakeholders."

"Synchrony has built a long track record of delivering strong financial results and maintaining a resilient balance sheet through evolving market conditions. To that end, our Board of Directors approved a new share repurchase program of up to $6.5 billion of the Company's common stock and a planned 13% increase in our quarterly cash dividend, reflecting confidence in our execution and the opportunities we see to continue driving long-term shareholder value in the years to come."

Business Highlights

Added or renewed more than 15 partners in the quarter, including Miracle Ear, Indian Motorcycle and Harbor Freight Tools.

Broadened CareCredit utility with the addition of CareCredit acceptance at Walmart.com, as well as expanded eligibility for health and wellness products at all Walmart and Sam's Club locations nationwide.

Renewed Miracle Ear partnership to offer patients a way to pay for hearing devices and related services over time at their over 400 Miracle-Ear corporate clinics.

Extended relationship with Harbor Freight, providing private label credit card financing with the option of 5% back or no interest equal payment installment loans.

Expanded CareCredit partnerships with pet insurance providers, Figo and Embrace, to enable reimbursements back to CareCredit accounts, making the solution available for more than 1.7 million pets.

Financial Highlights

Interest and fees on loans increased 2% to $5.4 billion as expansion in loan receivables yield, primarily reflecting the impact of our PPPCs, was partially offset by lower benchmark rates.

Net interest income increased $171 million, or 4%, to $4.6 billion, primarily driven by higher loan receivables yield and lower interest-bearing liabilities cost associated with lower benchmark rates, partially offset by lower liquidity portfolio yield.

Retailer share arrangements increased $175 million, or 20%, to $1.1 billion, reflecting program performance which included lower net charge-offs and the impact of our PPPCs.

Provision for credit losses decreased $156 million to $1.3 billion, primarily driven by lower net charge-offs, partially offset by a $97 million reserve release in the prior year.

Other expense increased $73 million, or 6%, to $1.3 billion, primarily driven by costs related to technology investments and higher operational losses.

Net earnings increased 6% to $805 million, compared to $757 million.

Credit Quality

Loans 30+ days past due as a percentage of total period-end loan receivables were 4.54% compared to 4.52% in the prior year, an increase of 2 basis points.

Loans 90+ days past due as a percentage of total period-end loan receivables were 2.28% compared to 2.29% in the prior year, a decrease of 1 basis point.

Net charge-offs as a percentage of total average loan receivables were 5.42% compared to 6.38% in the prior year, a decrease of 96 basis points.

The allowance for credit losses as a percentage of total period-end loan receivables was 10.42%, compared to 10.06% in the fourth quarter of 2025 and 10.87% in the first quarter of 2025.

Sales Platform Highlights

Period-end loan receivables were up 4% in Diversified & Value, up 3% in Digital, up 1% in Health & Wellness, down 1% in Lifestyle and down 4% in Home & Auto. These results reflected improving purchase volume trends in the first quarter as compared to previous quarters, offset by the effects of higher payment rates. Growth of interest and fees on loans ranged from down 2% to up 6%, as expansion in loan receivables yield, primarily reflecting the impact of our PPPCs, was partially offset by lower benchmark rates.

Balance Sheet, Liquidity, & Capital

Loan receivables were flat at $100.1 billion; purchase volume increased 6% and average active accounts decreased 1%.

Deposits decreased 1% or $0.5 billion to $82.9 billion and comprised 83% of funding.

Total liquid assets were $22.8 billion, or 18.8% of total assets.

The Company returned $1.0 billion in capital to shareholders, including $900 million of share repurchases and

$104 million of common stock dividends.

The Board approved a new share repurchase program of up to $6.5 billion of the Company's common stock, which commences in second quarter 2026 and, in a change from our prior share repurchase programs, does not have an expiration date. The new share repurchase program replaces the Company's prior program, which was scheduled to expire on June 30, 2026.

The Board approved a planned 13% increase in the quarterly cash dividend to $0.34 per share of common stock beginning in third quarter 2026.

The estimated Common Equity Tier 1 ratio was 12.7% compared to 13.2%, and the estimated Tier 1 Capital ratio was 13.9% compared to 14.4% in the prior year.

* All comparisons are for the first quarter of 2026 compared to the first quarter of 2025, unless otherwise noted.

** Return on tangible common equity represents net earnings available to common stockholders as a percentage of average tangible common equity. Tangible common equity and tangible book value per share are non-GAAP measures. See non-GAAP reconciliation in the financial supplement.

Corresponding Financial Tables and Information

Investors should review the foregoing summary and discussion of Synchrony Financial's earnings and financial condition in conjunction with the financial results presentation, financial supplement and information that follow, the Company's Annual Report on Form 10-K for the fiscal year ended December 31, 2025, as filed February 6, 2026, and the Company's forthcoming Quarterly Report for the Form 10-Q for the fiscal quarter ended March 31, 2026. The detailed financial tables and other information are also available on the Investor Relations page of the Company's website at https://www.investors.synchrony.com. This information is also furnished in a Current Report on Form 8-K filed with the SEC today.

Conference Call and Webcast

On Tuesday, April 21, 2026, at 8:00 a.m. Eastern Time, Brian Doubles, President and Chief Executive Officer, 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, https://www.investors.synchrony.com, under Events and Presentations. A replay will also be available on the website.

About Synchrony Financial

Synchrony (NYSE: SYF) is a leading consumer financing company that has been at the heart of American commerce and opportunity for nearly a century. Synchrony delivers credit and banking products that empower tens of millions of consumers to improve their financial lives and access what matters most. Leveraging innovative solutions that are shaping the future of retail commerce, Synchrony supports the growth and success of some of the nation's most respected brands, alongside hundreds of thousands of small and midsize businesses, including health and wellness providers. Committed to excellence in service and culture, Synchrony is honored to be ranked the #1 Best Company to Work For® in the U.S. by Fortune magazine and Great Place to Work®.

For more information, visit https://www.synchrony.com

Kathryn Miller Ashley Tufts

(203) 585-6291 (203) 216-6277

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," "aim," "focus," "goal," "confident," "trajectory," "priorities," "designed," "consider," "opportunity" 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 and geopolitical conditions, including factors impacting consumer confidence and economic growth in the United States, such as inflation, interest rates, tariffs (including retaliatory tariffs), energy prices, global conflicts and an economic downturn or recession, and whether industry trends we have identified develop as anticipated; the impact of changes made or influenced by the U.S. presidential administration and Congress on fiscal, monetary and regulatory policy, including with respect to constraints on the pricing of our credit products; the impact of the federal government shutdowns; retaining existing partners and attracting new partners, concentration of our revenue in a small number of partners, and promotion and support of our products by our partners; cyber-attacks or other security incidents or breaches; disruptions in the operations of our and our outsourced partners' computer systems and data centers; the financial performance of our partners; product, pricing, and policy changes related to the Consumer Financial Protection Bureau's (the "CFPB") final rule on credit card late fees, which was vacated in April 2025; 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 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, and lower payment rates on our securitized loan receivables; changes in benchmark or market interest rates; effectiveness of our risk management processes and procedures, reliance on models which may be inaccurate or misinterpreted, and 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 and susceptibility to market fluctuations and legislative and regulatory developments; our ability to successfully develop and commercialize new or enhanced products and services; our ability to realize the value of acquisitions, dispositions 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, regulatory actions and compliance issues; 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; 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 CFPB's regulation of our business, including new requirements and constraints the Company and the Bank are or will become subject to as a result of having $100 billion or more in total assets; 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 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.

Cautionary Statement Regarding Forward-Looking Statements (Continued)

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 Relating to our Business" and "Risk Factors Relating to Regulation" in the Company's most recent Annual Report on Form 10-K. 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 "tangible book value per share," 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.

‌FINANCIAL SUMMARY

(unaudited, in millions, except per share statistics)

Quarter Ended

Mar 31,

Dec 31,

Sep 30,

Jun 30,

Mar 31,

2026

2025

1Q'26 vs. 1Q'25

EARNINGS

Net interest income

$ 4,635

$ 4,761

$ 4,720

$ 4,521

$ 4,464

$ 171

3.8 %

Retailer share arrangements

(1,070)

(1,094)

(1,024)

(992)

(895)

(175)

19.6 %

Provision for credit losses

1,335

1,442

1,146

1,491

(156)

(10.5)%

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

2,230

2,225

2,550

2,383

2,078

152

7.3 %

Other income

133

126

127

118

149

(16)

(10.7)%

Other expense

1,316

1,399

1,248

1,245

1,243

5.9 %

Earnings before provision for income taxes

1,047

952

1,429

1,256

984

6.4 %

Provision for income taxes

242

201

352

289

227

6.6 %

Net earnings

$ 805

$ 751

$ 1,077

$ 967

$ 757

$ 48

6.3 %

Net earnings available to common stockholders

$ 784

$ 730

$ 1,057

$ 946

$ 736

$ 48

6.5 %

COMMON SHARE STATISTICS

Basic EPS

$ 2.29

$ 2.07

$ 2.89

$ 2.51

$ 1.91

$ 0.38

19.9 %

Diluted EPS

$ 2.27

$ 2.04

$ 2.86

$ 2.50

$ 1.89

$ 0.38

20.1 %

Dividend declared per share

$ 0.30

$ 0.25

$ 0.05

20.0 %

Common stock price

$ 68.02

$ 83.43

$ 71.05

$ 66.74

$ 52.94

$ 15.08

28.5 %

Book value per share

$ 45.29

$ 44.74

$ 44.00

$ 42.30

$ 40.37

$ 4.92

12.2 %

Tangible book value per share(1)

$ 37.62

$ 37.21

$ 37.93

$ 36.55

$ 34.79

$ 2.83

8.1 %

Beginning common shares outstanding

347.4

360.1

371.9

380.5

388.3

(40.9)

(10.5)%

Issuance of common shares

Stock-based compensation

1.9

0.3

0.2

2.0

(0.1)

(5.0)%

Shares repurchased

(12.5)

(13.0)

(12.1)

(8.8)

(9.8)

(2.7)

27.6 %

Ending common shares outstanding

336.8

347.4

360.1

371.9

380.5

(43.7)

(11.5)%

Weighted average common shares outstanding

342.4

352.7

365.9

376.2

385.2

(42.8)

(11.1)%

Weighted average common shares outstanding (fully diluted)

346.0

357.6

369.9

379.1

389.4

(43.4)

(11.1)%

Tangible book value per share is a non-GAAP measure, calculated based on Tangible common equity divided by common shares outstanding. For corresponding reconciliation of this measure to a GAAP financial measure, see Reconciliation of Non-GAAP Measures and Calculations of Regulatory Measures.

SELECTED METRICS

(unaudited, $ in millions)

Quarter Ended

Mar 31,

Dec 31,

Sep 30,

Jun 30,

Mar 31,

2026

2025

1Q'26 vs.

1Q'25

PERFORMANCE METRICS

Return on assets(1)

2.7 %

2.5 %

3.6 %

3.2 %

2.5 %

0.2 %

Return on equity(2)

19.5 %

17.6 %

25.1 %

23.1 %

18.4 %

1.1 %

Return on tangible common equity(3)

24.5 %

21.8 %

30.6 %

28.3 %

22.4 %

2.1 %

Net interest margin(4)

15.50 %

15.83 %

15.62 %

14.78 %

14.74 %

0.76 %

Efficiency ratio(5)

35.6 %

36.9 %

32.6 %

34.1 %

33.4 %

2.2 %

Other expense as a % of average loan receivables, including held for sale

5.30 %

5.50 %

4.96 %

5.03 %

4.99 %

0.31 %

Effective income tax rate

23.1 %

21.1 %

24.6 %

23.0 %

23.1 %

- %

CREDIT QUALITY METRICS

Net charge-offs as a % of average loan receivables, including held for sale

5.42 %

5.37 %

5.16 %

5.70 %

6.38 %

(0.96)%

30+ days past due as a % of period-end loan receivables(6)

4.54 %

4.49 %

4.39 %

4.18 %

4.52 %

0.02 %

90+ days past due as a % of period-end loan receivables(6)

2.28 %

2.17 %

2.12 %

2.06 %

2.29 %

(0.01)%

Net charge-offs

$ 1,346

$ 1,367

$ 1,298

$ 1,411

$ 1,588

$ (242)

(15.2)%

Loan receivables delinquent over 30 days(6)

$ 4,543

$ 4,660

$ 4,400

$ 4,173

$ 4,505

$ 38

0.8 %

Loan receivables delinquent over 90 days(6)

$ 2,284

$ 2,248

$ 2,128

$ 2,059

$ 2,285

$ (1)

- %

Allowance for credit losses (period-end)

$ 10,428

$ 10,442

$ 10,373

$ 10,564

$ 10,828

$ (400)

(3.7)%

Allowance coverage ratio(7)

10.42 %

10.06 %

10.35 %

10.59 %

10.87 %

(0.45)%

BUSINESS METRICS

$ 42,984

$ 49,476

$ 46,005

$ 46,084

$ 40,720

$ 2,264

5.6 %

$ 100,085

$ 103,808

$ 100,178

$ 99,776

$ 99,608

$ 477

0.5 %

$ 92,764

$ 96,346

$ 92,550

$ 92,036

$ 91,909

$ 855

0.9 %

Purchase volume(8)

Period-end loan receivables Credit cards

Consumer installment loans

$ 5,357

$ 5,548

$ 5,584

$ 5,669

$ 5,736

$ (379)

(6.6)%

Commercial credit products

$ 1,886

$ 1,833

$ 1,961

$ 1,980

$ 1,859

$ 27

1.5 %

Other

$ 78

$ 81

$ 83

$ 91

$ 104

$ (26)

(25.0)%

Average loan receivables, including held for sale

$ 100,693

$ 100,982

$ 99,885

$ 99,236

$ 101,021

$ (328)

(0.3)%

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

67,828

70,693

68,585

68,186

67,787

0.1 %

Average active accounts (in thousands)(9)

68,815

69,304

68,318

68,050

69,315

(500)

(0.7)%

LIQUIDITY

Liquid assets

Cash and equivalents

$ 20,559

$ 14,973

$ 16,245

$ 19,457

$ 21,629

$ (1,070)

(4.9)%

Total liquid assets

$ 22,845

$ 16,562

$ 18,234

$ 21,796

$ 23,817

$ (972)

(4.1)%

Undrawn credit facilities

$ 2,125

$ 2,625

$ (500)

(19.0)%

Total liquid assets and undrawn credit facilities(10)

$ 24,970

$ 18,687

$ 20,359

$ 24,421

$ 26,442

$ (1,472)

(5.6)%

Liquid assets % of total assets

18.80 %

13.91 %

15.59 %

18.09 %

19.52 %

(0.72)%

Liquid assets including undrawn credit facilities % of total assets

20.55 %

15.69 %

17.40 %

20.27 %

21.67 %

(1.12)%

Return on assets represents annualized net earnings as a percentage of average total assets.

Return on equity represents annualized net earnings as a percentage of average total equity.

Return on tangible common equity represents annualized 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.

Net interest margin represents annualized net interest income divided by average total interest-earning assets.

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

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

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

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.

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

Excludes uncommitted credit facilities and available borrowing capacity related to unencumbered assets

Mar 31,

Dec 31,

Sep 30,

Jun 30,

Mar 31,

2026

2025

1Q'26 vs. 1Q'25

Interest income:

Interest and fees on loans

5,413

5,548

5,510

5,328

5,312

101

1.9 %

Interest on cash and debt securities

190

186

221

258

238

(48)

(20.2)%

Total interest income

5,603

5,734

5,731

5,586

5,550

1.0 %

Interest expense:

Interest on deposits

770

781

812

855

882

(112)

(12.7)%

Interest on borrowings of consolidated securitization entities

106

104

105

104

1.9 %

Interest on senior unsecured notes

106

100

(8)

(8.0)%

Total interest expense

968

973

1,011

1,065

1,086

(118)

(10.9)%

Net interest income

4,635

4,761

4,720

4,521

4,464

171

3.8 %

Retailer share arrangements

(1,070)

(1,094)

(1,024)

(992)

(895)

(175)

19.6 %

Provision for credit losses

1,335

1,442

1,146

1,491

(156)

(10.5)%

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

2,230

2,225

2,550

2,383

2,078

152

7.3 %

Other income:

Interchange revenue

264

289

272

268

238

10.9 %

Protection product revenue

161

156

149

144

147

9.5 %

Loyalty programs

(361)

(399)

(368)

(360)

(311)

(50)

16.1 %

Other

(6)

(8.0)%

Total other income

133

126

127

118

149

(16)

(10.7)%

Other expense:

Employee costs

515

575

503

509

506

1.8 %

Professional fees

209

243

240

236

217

(8)

(3.7)%

Marketing and business development

114

148

120

127

116

(2)

(1.7)%

Information processing

262

239

226

215

219

19.6 %

Other

216

194

159

158

185

16.8 %

Total other expense

1,316

1,399

1,248

1,245

1,243

5.9 %

Earnings before provision for income taxes

1,047

952

1,429

1,256

984

6.4 %

Provision for income taxes

242

201

352

289

227

6.6 %

Net earnings

805

751

1,077

967

757

6.3 %

Net earnings available to common stockholders

784

730

1,057

946

736

6.5 %

‌SYNCHRONY FINANCIAL

STATEMENTS OF FINANCIAL POSITION

(unaudited, $ in millions)

Quarter Ended

Mar 31,

Dec 31,

Sep 30,

Jun 30,

Mar 31,

2026

2025

Mar 31, 2026 vs. Mar 31,

2025

Assets

Cash and equivalents

$ 20,559

$ 14,973

$ 16,245

$ 19,457

$ 21,629

$ (1,070)

(4.9)%

Debt securities

3,040

2,348

2,716

2,905

2,724

316

11.6 %

Loan receivables:

Unsecuritized loans held for investment

78,423

81,408

79,207

78,566

79,186

(763)

(1.0)%

Restricted loans of consolidated securitization entities

21,662

22,400

20,971

21,210

20,422

1,240

6.1 %

Total loan receivables

100,085

103,808

100,178

99,776

99,608

477

0.5 %

Less: Allowance for credit losses

(10,428)

(10,442)

(10,373)

(10,564)

(10,828)

400

(3.7)%

Loan receivables, net

89,657

93,366

89,805

89,212

88,780

877

1.0 %

Loan receivables held for sale

192

191

- %

Goodwill

1,363

1,274

7.0 %

Intangible assets, net

1,223

1,255

909

862

847

376

44.4 %

Other assets

5,659

5,790

5,843

6,604

6,772

(1,113)

(16.4)%

Total assets

$ 121,501

$ 119,095

$ 116,984

$ 120,505

$ 122,026

$ (525)

(0.4)%

Liabilities and Equity

Deposits:

Interest-bearing deposit accounts

$ 82,478

$ 80,748

$ 79,513

$ 81,857

$ 83,030

$ (552)

(0.7)%

Non-interest-bearing deposit accounts

416

396

373

405

2.7 %

Total deposits

82,894

81,144

79,886

82,262

83,435

(541)

(0.6)%

Borrowings:

Borrowings of consolidated securitization entities

8,915

8,415

7,666

8,340

8,591

324

3.8 %

Senior and Subordinated unsecured notes

7,513

6,767

6,765

7,669

8,418

(905)

(10.8)%

Total borrowings

16,428

15,182

14,431

16,009

17,009

(581)

(3.4)%

Accrued expenses and other liabilities

5,702

6,003

5,602

5,282

5,001

701

14.0 %

Total liabilities

105,024

102,329

99,919

103,553

105,445

(421)

(0.4)%

Equity:

Preferred stock

1,222

- %

Common stock

- %

Additional paid-in capital

9,844

9,902

9,866

9,836

9,804

0.4 %

Retained earnings

25,210

24,598

23,978

23,036

22,209

3,001

13.5 %

Accumulated other comprehensive income (loss)

(56)

(48)

(46)

(45)

(53)

(3)

5.7 %

Treasury stock

(19,744)

(18,909)

(17,956)

(17,098)

(16,602)

(3,142)

18.9 %

Total equity

16,477

16,766

17,065

16,952

16,581

(104)

(0.6)%

Total liabilities and equity

$ 121,501

$ 119,095

$ 116,984

$ 120,505

$ 122,026

$ (525)

(0.4)%

‌SYNCHRONY FINANCIAL

AVERAGE BALANCES, NET INTEREST INCOME AND NET INTEREST MARGIN

(unaudited, $ in millions)

Quarter Ended

Mar 31, 2026

Dec 31, 2025

Sep 30, 2025

Jun 30, 2025

Mar 31, 2025

Interest

Average

Interest

Average

Interest

Average

Interest

Average

Interest

Average

Income/

Yield/

Average

Income/

Yield/

Average

Income/

Yield/

Average

Income/

Yield/

Average

Income/

Yield/

Balance

Expense

Rate(1)

Balance

Expense

Rate(1)

Balance

Expense

Rate(1)

Balance

Expense

Rate(1)

Balance

Expense

Rate(1)

Assets

Interest-earning assets:

Interest-earning cash and equivalents

$ 17,992

$ 163

3.67 %

$ 15,679

$ 158

4.00 %

$ 17,131

$ 187

4.33 %

$ 20,699

$ 228

4.42 %

$ 18,539

$ 203

4.44 %

Securities available for sale

2,595

4.22 %

2,635

4.22 %

2,872

4.70 %

2,774

4.34 %

3,231

4.39 %

Loan receivables, including held for sale:

Credit cards

93,290

5,152

22.40 %

93,389

5,297

22.50 %

92,176

5,255

22.62 %

91,460

5,076

22.26 %

93,241

5,055

21.99 %

Consumer installment loans

5,465

188

13.95 %

5,548

198

14.16 %

5,618

208

14.69 %

5,692

207

14.59 %

5,833

211

14.67 %

Commercial credit products

1,857

15.72 %

1,962

10.52 %

2,006

9.10 %

1,981

8.71 %

1,842

9.91 %

Other

5.01 %

4.78 %

4.67 %

103

7.79 %

105

3.86 %

Total loan receivables, including held for sale

100,693

5,413

21.80 %

100,982

5,548

21.80 %

99,885

5,510

21.89 %

99,236

5,328

21.54 %

101,021

5,312

21.33 %

Total interest-earning assets

121,280

5,603

18.74 %

119,296

5,734

19.07 %

119,888

5,731

18.97 %

122,709

5,586

18.26 %

122,791

5,550

18.33 %

Non-interest-earning assets:

Cash and due from banks

976

864

892

868

Allowance for credit losses

(10,431)

(10,391)

(10,536)

(10,797)

(10,936)

Other assets

8,223

8,131

7,913

7,661

7,770

Total non-interest-earning assets

(1,232)

(1,396)

(1,731)

(2,268)

(2,298)

Total assets

$ 120,048

$ 117,900

$ 118,157

$ 120,441

$ 120,493

Liabilities

Interest-bearing liabilities:

Interest-bearing deposit accounts

$ 81,704

$ 770

3.82 %

$ 80,117

$ 781

3.87 %

$ 80,442

$ 812

4.00 %

$ 82,014

$ 855

4.18 %

$ 82,370

$ 882

4.34 %

Borrowings of consolidated securitization entities

8,482

106

5.07 %

8,032

104

5.14 %

7,768

105

5.36 %

7,926

104

5.26 %

8,191

104

5.15 %

Senior and Subordinated unsecured notes

7,056

5.29 %

6,765

5.16 %

7,209

5.17 %

8,269

106

5.14 %

7,850

100

5.17 %

Total interest-bearing liabilities

97,242

968

4.04 %

94,914

973

4.07 %

95,419

1,011

4.20 %

98,209

1,065

4.35 %

98,411

1,086

4.48 %

Non-interest-bearing liabilities

Non-interest-bearing deposit accounts

414

382

410

412

418

Other liabilities

5,621

5,667

5,287

5,065

4,969

Total non-interest-bearing liabilities

6,035

6,049

5,697

5,477

5,387

Total liabilities

103,277

100,963

101,116

103,686

103,798

Equity Total equity

16,771

16,937

17,041

16,755

16,695

Total liabilities and equity

$ 120,048

$ 117,900

$ 118,157

$ 120,441

$ 120,493

Net interest income

$ 4,635

$ 4,761

$ 4,720

$ 4,521

$ 4,464

Interest rate spread(2)

14.70 %

15.00 %

14.76 %

13.91 %

13.86 %

Net interest margin(3)

15.50 %

15.83 %

15.62 %

14.78 %

14.74 %

Average yields/rates are based on annualized total interest income/expense divided by average balances.

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

Net interest margin represents annualized net interest income divided by average total interest-earning assets.

‌SYNCHRONY FINANCIAL

BALANCE SHEET STATISTICS

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

Quarter Ended

Mar 31,

Dec 31,

Sep 30,

Jun 30,

Mar 31,

Mar 31, 2026 vs.

2026

2025

Mar 31, 2025

BALANCE SHEET STATISTICS

Total common equity

$ 15,255

$ 15,544

$ 15,843

$ 15,730

$ 15,359

$ (104)

(0.7)%

Total common equity as a % of total assets

12.56 %

13.05 %

13.54 %

13.05 %

12.59 %

(0.03)%

Tangible assets

$ 118,915

$ 116,477

$ 114,801

$ 118,369

$ 119,905

$ (990)

(0.8)%

Tangible common equity(1)

$ 12,669

$ 12,926

$ 13,660

$ 13,594

$ 13,238

$ (569)

(4.3)%

Tangible common equity as a % of tangible assets(1)

10.65 %

11.10 %

11.90 %

11.48 %

11.04 %

(0.39)%

Tangible book value per share(2)

$ 37.62

$ 37.21

$ 37.93

$ 36.55

$ 34.79

$ 2.83

8.1 %

REGULATORY CAPITAL RATIOS(3)

Basel III

Total risk-based capital ratio(4)

16.0 %

15.8 %

16.9 %

16.5 %

Tier 1 risk-based capital ratio(5)

13.9 %

13.8 %

14.9 %

14.8 %

14.4 %

Tier 1 leverage ratio(6)

12.1 %

12.5 %

13.0 %

12.7 %

12.4 %

Common equity Tier 1 capital ratio

12.7 %

12.6 %

13.7 %

13.6 %

13.2 %

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.

Regulatory capital ratios at March 31, 2026 are preliminary and therefore subject to change.

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

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

Tier 1 leverage ratio is the ratio of Tier 1 capital divided by total average assets, after certain adjustments.

‌SYNCHRONY FINANCIAL

PLATFORM RESULTS

(unaudited, unrounded, $ in millions)

Quarter Ended

Mar 31,

Dec 31,

Sep 30,

Jun 30,

Mar 31,

2026

2025

1Q'26 vs.

1Q'25

HOME & AUTO(1)

Purchase volume(2)

$ 9,443

$ 10,381

$ 11,061

$ 11,459

$ 9,446

$ (3)

- %

Period-end loan receivables

$ 29,136

$ 30,106

$ 30,295

$ 30,374

$ 30,254

$ (1,118)

(3.7)%

Average loan receivables, including held for sale

$ 29,367

$ 30,055

$ 30,260

$ 30,137

$ 30,810

$ (1,443)

(4.7)%

Average active accounts (in thousands)(3)

16,847

17,370

17,749

17,831

17,894

(1,047)

(5.9)%

Interest and fees on loans

$ 1,379

$ 1,444

$ 1,443

$ 1,395

$ 1,402

$ (23)

(1.6)%

Other income

$ 55

$ 52

$ 54

$ 52

$ 56

$ (1)

(1.8)%

DIGITAL

Purchase volume(2)

$ 13,499

$ 16,206

$ 14,044

$ 13,647

$ 12,479

$ 1,020

8.2 %

Period-end loan receivables

$ 28,733

$ 30,057

$ 28,179

$ 27,786

$ 27,765

$ 968

3.5 %

Average loan receivables, including held for sale

$ 29,024

$ 28,676

$ 27,880

$ 27,571

$ 28,216

$ 808

2.9 %

Average active accounts (in thousands)(3)

21,268

21,352

20,680

20,368

20,711

557

2.7 %

Interest and fees on loans

$ 1,632

$ 1,663

$ 1,631

$ 1,576

$ 1,544

$ 88

5.7 %

Other income

$ 9

$ (6)

$ (2)

$ -

$ 9

$ -

- %

DIVERSIFIED & VALUE

Purchase volume(2)

$ 14,926

$ 17,462

$ 15,417

$ 15,393

$ 13,732

$ 1,194

8.7 %

Period-end loan receivables

$ 20,269

$ 21,236

$ 19,500

$ 19,510

$ 19,436

$ 833

4.3 %

Average loan receivables, including held for sale

$ 20,229

$ 19,978

$ 19,440

$ 19,338

$ 19,670

$ 559

2.8 %

Average active accounts (in thousands)(3)

20,416

20,170

19,470

19,471

20,114

302

1.5 %

Interest and fees on loans

$ 1,195

$ 1,200

$ 1,192

$ 1,159

$ 1,178

$ 17

1.4 %

Other income

$ (18)

$ (13)

$ (3)

$ -

$ (18)

HEALTH & WELLNESS

Purchase volume(2)

$ 3,871

$ 3,897

$ 3,976

$ 4,007

$ 3,774

$ 97

2.6 %

Period-end loan receivables

$ 15,309

$ 15,545

$ 15,447

$ 15,309

$ 15,193

$ 116

0.8 %

Average loan receivables, including held for sale

$ 15,373

$ 15,499

$ 15,347

$ 15,215

$ 15,280

$ 93

0.6 %

Average active accounts (in thousands)(3)

7,680

7,770

7,730

7,697

7,776

(96)

(1.2)%

Interest and fees on loans

$ 948

$ 979

$ 967

$ 923

$ 914

$ 34

3.7 %

Other income

$ 80

$ 79

$ 73

$ 66

$ 75

$ 5

6.7 %

LIFESTYLE

Purchase volume(2)

$ 1,245

$ 1,522

$ 1,371

$ 1,432

$ 1,168

$ 77

6.6 %

Period-end loan receivables

$ 6,548

$ 6,771

$ 6,644

$ 6,673

$ 6,636

$ (88)

(1.3)%

Average loan receivables, including held for sale

$ 6,607

$ 6,657

$ 6,652

$ 6,646

$ 6,716

$ (109)

(1.6)%

Average active accounts (in thousands)(3)

2,584

2,589

2,543

2,531

2,651

(67)

(2.5)%

Interest and fees on loans

$ 258

$ 265

$ 264

$ 261

$ (3)

(1.1)%

Other income

$ 11

$ 9

$ 10

$ 1

10.0 %

CORP, OTHER(1)(5)

Purchase volume(2)

$ -

$ 8

$ 136

$ 146

$ 121

$ (121)

(100.0)%

Period-end loan receivables(4)

$ 90

$ 93

$ 113

$ 124

$ 324

$ (234)

(72.2)%

Average loan receivables, including held for sale

$ 93

$ 117

$ 306

$ 329

$ (236)

(71.7)%

Average active accounts (in thousands)(3)

146

152

169

(149)

(88.2)%

Interest and fees on loans

$ 1

$ (3)

$ 13

$ 14

$ 13

$ (12)

(92.3)%

Other income

$ (4)

$ 3

$ (6)

$ (1)

$ (3)

TOTAL SYF(5)

Purchase volume(2)

$ 42,984

$ 49,476

$ 46,005

$ 46,084

$ 40,720

$ 2,264

5.6 %

Period-end loan receivables

$ 100,085

$ 103,808

$ 100,178

$ 99,776

$ 99,608

$ 477

0.5 %

Average loan receivables, including held for sale

$ 100,693

$ 100,982

$ 99,885

$ 99,236

$ 101,021

$ (328)

(0.3)%

Average active accounts (in thousands)(3)

68,815

69,304

68,318

68,050

69,315

(500)

(0.7)%

Interest and fees on loans

$ 5,413

$ 5,548

$ 5,510

$ 5,328

$ 5,312

$ 101

1.9 %

Other income

$ 133

$ 126

$ 127

$ 118

$ 149

$ (16)

(10.7)%

In June 2025, we entered into an agreement to sell $0.2 billion of loan receivables associated with a Home & Auto program agreement. In connection with this agreement, revenue activities for the portfolio were no longer managed within our Home & Auto sales platform, and the portfolio was sold in October 2025. All metrics for the portfolio previously reported within our Home & Auto sales platform are now reported within Corp, Other. We have recast all prior-period reported metrics for our Home & Auto sales platform and Corp, Other to conform to the current-period presentation.

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.

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

Reflects the reclassification of $0.2 billion to loan receivables held for sale in 2Q 2025.

Includes activity and balances (except for Period-end loan receivables) associated with a Home & Auto portfolio which was sold in 4Q 2025.

‌SYNCHRONY FINANCIAL

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

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

Quarter Ended

Mar 31,

Dec 31,

Sep 30,

Jun 30,

Mar 31,

2026

2025

COMMON EQUITY AND REGULATORY CAPITAL MEASURES

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

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

316

250

209

208

Common equity Tier 1

$ 12,985

$ 13,242

$ 13,910

$ 13,803

$ 13,446

Preferred stock

1,222

Tier 1 capital

$ 14,207

$ 14,464

$ 15,132

$ 15,025

$ 14,668

Add: Subordinated debt

742

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

1,390

1,426

1,386

1,388

Total Risk-based capital

$ 16,339

$ 16,632

$ 17,260

$ 17,153

$ 16,798

ASSET MEASURES

Total average assets

$ 120,048

$ 117,900

$ 118,157

$ 120,441

$ 120,493

Adjustments for:

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

(2,267)

(2,291)

(1,917)

(1,913)

(1,895)

Total assets for leverage purposes

$ 117,781

$ 115,609

$ 116,240

$ 118,528

$ 118,598

Risk-weighted assets

$ 102,095

$ 105,029

$ 101,884

$ 101,716

$ 101,625

TIER 1 CAPITAL + RESERVES RATIO

Tier 1 capital

$ 14,207

$ 14,464

$ 15,132

$ 15,025

$ 14,668

Add: Allowance for credit losses

10,428

10,442

10,373

10,564

10,828

Tier 1 capital + Reserves for credit losses

$ 24,635

$ 24,906

$ 25,505

$ 25,589

$ 25,496

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

(1) Regulatory measures 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.