Synchrony Financial (SYF) boosts Q1 earnings and unveils $6.5B share repurchase plan
Filing Impact
Filing Sentiment
Form Type
8-K
Rhea-AI Filing Summary
Synchrony Financial reported solid first quarter 2026 results with net earnings of $805 million, or $2.27 per diluted share, up from $757 million, or $1.89, a year earlier. Net interest income rose to $4.64 billion, driven by higher loan yields and lower funding costs, lifting net interest margin to 15.50%.
Purchase volume grew 6% to $43.0 billion, while loan receivables were stable at $100.1 billion. Credit quality improved, with net charge-offs at 5.42% versus 6.38%. Return on assets reached 2.7% and return on equity 19.5%.
The company returned $1.0 billion to shareholders in the quarter, including $900 million of share repurchases and $104 million of common dividends. The Board approved a new share repurchase program of up to $6.5 billion with no expiration and a planned 13% increase in the quarterly dividend to $0.34 per share starting in the third quarter of 2026. The estimated Common Equity Tier 1 capital ratio was 12.7%, compared with 13.2% a year earlier.
Positive
- Diluted EPS grew 20.1% year over year to $2.27, with net earnings up 6.3% to $805 million, supported by higher net interest income and improved credit performance.
- Board authorized a new share repurchase program of up to $6.5 billion with no expiration and approved a planned 13% dividend increase to $0.34 per share, indicating strong capital return capacity.
Negative
- None.
Insights
Synchrony posts stronger Q1 profits, cleaner credit and a large new buyback.
Synchrony Financial delivered net earnings of $805 million, up 6.3% year over year, with diluted EPS rising 20.1% to $2.27. Net interest income grew 3.8% to $4.64 billion as loan yields improved and deposit costs fell, expanding net interest margin to 15.50%.
Asset quality was a clear bright spot. Net charge-offs declined to 5.42% of average loan receivables from 6.38%, and 90+ day delinquencies edged down to 2.28%. The allowance for credit losses stood at $10.43 billion, or 10.42% of period-end loan receivables, modestly below last year but consistent with lower realized losses.
Capital return is significant. The company returned $1.0 billion in the quarter and the Board authorized up to $6.5 billion of additional share repurchases with no set expiry, alongside a planned quarterly dividend increase to $0.34 per share. These actions, together with a CET1 ratio of 12.7%, signal confidence in earnings durability under the 2026 outlook presented in this report.
8-K Event Classification
2 items: 2.02, 9.01
2 items
Item 2.02
Results of Operations and Financial Condition
Financial
Disclosure of earnings results, typically an earnings press release or preliminary financials.
Item 9.01
Financial Statements and Exhibits
Exhibits
Financial statements, pro forma financial information, and exhibit attachments filed with this report.
Key Figures
Net earnings: $805 million
Diluted EPS: $2.27 per share
Net interest income: $4.635 billion
+5 more
8 metrics
Net earnings
$805 million
Q1 2026 vs $757 million in Q1 2025
Diluted EPS
$2.27 per share
Q1 2026, up 20.1% year over year from $1.89
Net interest income
$4.635 billion
Q1 2026, 3.8% higher than Q1 2025
Purchase volume
$43.0 billion
Q1 2026, 5.6% growth vs Q1 2025
Net interest margin
15.50%
Q1 2026, up 76 basis points year over year
Net charge-offs ratio
5.42%
Q1 2026 net charge-offs as % of average loan receivables
CET1 capital ratio
12.7%
Estimated at March 31, 2026 vs 13.2% prior year
New share repurchase authorization
$6.5 billion
Common stock repurchase program approved by Board, no expiration
Key Terms
net interest margin, Common Equity Tier 1 capital ratio, retailer share arrangements, allowance for credit losses, +1 more
5 terms
net interest margin financial
"Net interest margin increased 76 basis points to 15.50%"
Net interest margin measures how much a bank earns from lending and investing compared with what it pays for funding, expressed as a percentage of its interest-earning assets. Think of it like a grocery store’s markup: it shows the gap between buying cost and selling price per dollar of goods — here, the cost is interest paid and the sale is interest received. Investors watch it because a higher margin usually means a bank is more profitable and better at managing interest rate and credit conditions.
Common Equity Tier 1 capital ratio regulatory
"The estimated Common Equity Tier 1 capital ratio was 12.7% compared to 13.2%"
A bank’s common equity tier 1 (CET1) capital ratio measures the size of its strongest loss-absorbing capital—mainly common shares and retained earnings—relative to the bank’s assets after adjusting those assets for how risky they are (riskier loans count more). Think of it as the safety cushion compared with the weight of risky business; investors use it to judge a bank’s ability to survive losses, meet rules, and sustain dividends or growth.
allowance for credit losses financial
"The allowance for credit losses as a percentage of total period-end loan receivables was 10.42%"
Allowance for credit losses is a reserve set aside by a financial institution to cover potential losses from borrowers who may not repay their loans. It acts like a safety net, helping the institution prepare for loans that might turn sour. For investors, it signals how cautious the institution is about the quality of its loans and potential risks to its financial health.
Earnings Snapshot
Net interest income: $4.635 billion · Guidance included
Q1 2026
Net interest income
$4.635 billion
+3.8% YoY
Net earnings
$805 million
+6.3% YoY
Diluted EPS
$2.27
+20.1% YoY
Purchase volume
$42.984 billion
+5.6% YoY
Net charge-offs ratio
5.42%
-0.96 percentage points YoY
Guidance
For full-year 2026, the company projects mid-single digit ending loan receivables growth, a net charge-off rate below 5.5%, and diluted EPS in a range of $9.10 to $9.50, assuming a stable macroeconomic environment and no major regulatory changes.
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d)
OF THE SECURITIES EXCHANGE ACT OF 1934
Date of Report
(Date of earliest event reported)
(Exact name of registrant as specified in its charter)
| (State or other jurisdiction of incorporation) | (Commission File Number) | (I.R.S. Employer Identification No.) | ||||||||||||
| (Address of principal executive offices) | (Zip Code) | ||||||||||
(203 ) 585-2400
(Registrant’s telephone number, including area code)
N/A
(Former name or former address, if changed since last report)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
| Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) | |||||
| Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) | |||||
| Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) | |||||
| Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) | |||||
Securities Registered Pursuant to Section 12(b) of the Act:
| Title of each class | Trading Symbol(s) | Name of each exchange on which registered | ||||||
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
| Emerging growth company | |||||||||||
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ¨
Item 2.02 Results of Operations and Financial Condition.
On April 21, 2026 , Synchrony Financial (the “Company”) issued a press release setting forth the Company’s first quarter 2026 earnings. A copy of the Company’s press release is being furnished as Exhibit 99.1 and hereby incorporated by reference. The information furnished pursuant to this Item 2.02, including Exhibits, shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934 (the “Exchange Act”) or otherwise subject to the liabilities under that Section and shall not be deemed to be incorporated by reference into any filing of the Company under the Securities Act of 1933 or the Exchange Act.
Item 9.01 Financial Statements and Exhibits.
(d) Exhibits
The following exhibits are being furnished as part of this report:
| Number | Description | |||||||
99.1 | Press release, dated April 21, 2026, issued by Synchrony Financial | |||||||
99.2 | Financial Data Supplement of the Company for the quarter ended March 31, 2026 | |||||||
99.3 | Financial Results Presentation of the Company for the quarter ended March 31, 2026 | |||||||
99.4 | Explanation of Non-GAAP Measures | |||||||
| 104 | The cover page from this Current Report on Form 8-K, formatted in Inline XBRL | |||||||
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
SYNCHRONY FINANCIAL | ||||||||||||||||||||
| Date: April 21, 2026 | By: | /s/ Jonathan Mothner | ||||||||||||||||||
Name: | Jonathan Mothner | |||||||||||||||||||
Title: | Executive Vice President, Chief Risk and Legal Officer | |||||||||||||||||||
 | Exhibit 99.1 For Immediate Release Synchrony Financial (NYSE: SYF) April 21, 2026 | ||||||||||
First Quarter 2026 Results and Key Metrics
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% | 12.7% | $1.0B | $100.1B | |||||||||||||||||
| Return on Assets | CET1 Ratio | Capital Returned | 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
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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.
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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.
•Home & Auto purchase volume was flat, reflecting higher spend per account and partner expansion in Furniture and Electronics, offset by selective spend in Home Improvement and lower average active accounts.
•Digital purchase volume increased 8%, driven by higher spend per account and strong customer response to enhanced product offerings and refreshed value propositions.
•Diversified & Value purchase volume increased 9%, primarily reflecting the impact of partner expansion in addition to higher spend per account.
•Health & Wellness purchase volume increased 3%, reflecting growth in Pet and Audiology, partially offset by lower spend in Cosmetic and Dental. In addition, higher spend per account exceeded the impact of lower average active accounts.
•Lifestyle purchase volume increased 7%, primarily driven by Other Apparel and Goods and Luxury, partially offset by lower average active accounts.
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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 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, www.investors.synchrony.com, under Events and Presentations. A replay will also be available on the website.
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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 www.synchrony.com
Investor Relations Media Relations
Kathryn Miller Ashley Tufts
(203) 585-6291 (203) 216-6277
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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.
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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.
Exhibit 99.2
| SYNCHRONY FINANCIAL | |||||||||||||||||||||||||||||||||||||||||
| FINANCIAL SUMMARY | |||||||||||||||||||||||||||||||||||||||||
| (unaudited, in millions, except per share statistics) | |||||||||||||||||||||||||||||||||||||||||
| Quarter Ended | |||||||||||||||||||||||||||||||||||||||||
| Mar 31, 2026 | Dec 31, 2025 | Sep 30, 2025 | Jun 30, 2025 | Mar 31, 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 | 1,146 | 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 | 73 | 5.9 | % | |||||||||||||||||||||||||||||||||
| Earnings before provision for income taxes | 1,047 | 952 | 1,429 | 1,256 | 984 | 63 | 6.4 | % | |||||||||||||||||||||||||||||||||
| Provision for income taxes | 242 | 201 | 352 | 289 | 227 | 15 | 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 | $ | 0.30 | $ | 0.30 | $ | 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 | — | — | — | — | — | — | NM | ||||||||||||||||||||||||||||||||||
| Stock-based compensation | 1.9 | 0.3 | 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) | % | |||||||||||||||||||||||||||||||||
| (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. | |||||||||||||||||||||||||||||||||||||||||
1
| SYNCHRONY FINANCIAL | |||||||||||||||||||||||||||||||||||||||||
| SELECTED METRICS | |||||||||||||||||||||||||||||||||||||||||
| (unaudited, $ in millions) | |||||||||||||||||||||||||||||||||||||||||
| Quarter Ended | |||||||||||||||||||||||||||||||||||||||||
| Mar 31, 2026 | Dec 31, 2025 | Sep 30, 2025 | Jun 30, 2025 | Mar 31, 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 | |||||||||||||||||||||||||||||||||||||||||
Purchase volume(8) | $ | 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 | % | |||||||||||||||||||||||||||
| Credit cards | $ | 92,764 | $ | 96,346 | $ | 92,550 | $ | 92,036 | $ | 91,909 | $ | 855 | 0.9 | % | |||||||||||||||||||||||||||
| 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 | 41 | 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 | |||||||||||||||||||||||||||||||||||||||||
| Undrawn credit facilities | $ | 2,125 | $ | 2,125 | $ | 2,125 | $ | 2,625 | $ | 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) | % | |||||||||||||||||||||||||||||
| (1) Return on assets represents annualized net earnings as a percentage of average total assets. | |||||||||||||||||||||||||||||||||||||||||
| (2) Return on equity represents annualized net earnings as a percentage of average total equity. | |||||||||||||||||||||||||||||||||||||||||
| (3) 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. | |||||||||||||||||||||||||||||||||||||||||
| (4) Net interest margin represents annualized net interest income divided by average total 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) Active accounts represent credit card or installment loan accounts on which there has been a purchase, payment or outstanding balance in the current month. | |||||||||||||||||||||||||||||||||||||||||
| (10) Excludes uncommitted credit facilities and available borrowing capacity related to unencumbered assets | |||||||||||||||||||||||||||||||||||||||||
2
| SYNCHRONY FINANCIAL | |||||||||||||||||||||||||||||||||||||||||
| STATEMENTS OF EARNINGS | |||||||||||||||||||||||||||||||||||||||||
| (unaudited, $ in millions) | |||||||||||||||||||||||||||||||||||||||||
| Quarter Ended | |||||||||||||||||||||||||||||||||||||||||
| Mar 31, 2026 | Dec 31, 2025 | Sep 30, 2025 | Jun 30, 2025 | Mar 31, 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 | 53 | 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 | 104 | 2 | 1.9 | % | |||||||||||||||||||||||||||||||||
| Interest on senior unsecured notes | 92 | 88 | 94 | 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 | 1,146 | 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 | 26 | 10.9 | % | |||||||||||||||||||||||||||||||||
| Protection product revenue | 161 | 156 | 149 | 144 | 147 | 14 | 9.5 | % | |||||||||||||||||||||||||||||||||
| Loyalty programs | (361) | (399) | (368) | (360) | (311) | (50) | 16.1 | % | |||||||||||||||||||||||||||||||||
| Other | 69 | 80 | 74 | 66 | 75 | (6) | (8.0) | % | |||||||||||||||||||||||||||||||||
| Total other income | 133 | 126 | 127 | 118 | 149 | (16) | (10.7) | % | |||||||||||||||||||||||||||||||||
| Other expense: | |||||||||||||||||||||||||||||||||||||||||
| Employee costs | 515 | 575 | 503 | 509 | 506 | 9 | 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 | 43 | 19.6 | % | |||||||||||||||||||||||||||||||||
| Other | 216 | 194 | 159 | 158 | 185 | 31 | 16.8 | % | |||||||||||||||||||||||||||||||||
| Total other expense | 1,316 | 1,399 | 1,248 | 1,245 | 1,243 | 73 | 5.9 | % | |||||||||||||||||||||||||||||||||
| Earnings before provision for income taxes | 1,047 | 952 | 1,429 | 1,256 | 984 | 63 | 6.4 | % | |||||||||||||||||||||||||||||||||
| Provision for income taxes | 242 | 201 | 352 | 289 | 227 | 15 | 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 | % | |||||||||||||||||||||||||||
3
| SYNCHRONY FINANCIAL | ||||||||||||||||||||||||||||||||||||||
| STATEMENTS OF FINANCIAL POSITION | ||||||||||||||||||||||||||||||||||||||
| (unaudited, $ in millions) | ||||||||||||||||||||||||||||||||||||||
| Quarter Ended | ||||||||||||||||||||||||||||||||||||||
| Mar 31, 2026 | Dec 31, 2025 | Sep 30, 2025 | Jun 30, 2025 | Mar 31, 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 | 1,363 | 1,274 | 1,274 | 1,274 | 89 | 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 | 405 | 11 | 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 | 1,222 | 1,222 | 1,222 | 1,222 | — | — | % | ||||||||||||||||||||||||||||||
| Common stock | 1 | 1 | 1 | 1 | 1 | — | — | % | ||||||||||||||||||||||||||||||
| Additional paid-in capital | 9,844 | 9,902 | 9,866 | 9,836 | 9,804 | 40 | 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) | % | ||||||||||||||||||||||||
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 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| 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 | 27 | 4.22 | % | 2,635 | 28 | 4.22 | % | 2,872 | 34 | 4.70 | % | 2,774 | 30 | 4.34 | % | 3,231 | 35 | 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 | 72 | 15.72 | % | 1,962 | 52 | 10.52 | % | 2,006 | 46 | 9.10 | % | 1,981 | 43 | 8.71 | % | 1,842 | 45 | 9.91 | % | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Other | 81 | 1 | 5.01 | % | 83 | 1 | 4.78 | % | 85 | 1 | 4.67 | % | 103 | 2 | 7.79 | % | 105 | 1 | 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 | 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 | 92 | 5.29 | % | 6,765 | 88 | 5.16 | % | 7,209 | 94 | 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 | % | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| (1) Average yields/rates are based on annualized total interest income/expense divided by average balances. | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| (2) Interest rate spread represents the difference between the yield on total interest-earning assets and the rate on total interest-bearing liabilities. | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| (3) Net interest margin represents annualized net interest income divided by average total interest-earning assets. | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
5
| SYNCHRONY FINANCIAL | ||||||||||||||||||||||||||||||||||||||
| BALANCE SHEET STATISTICS | ||||||||||||||||||||||||||||||||||||||
| (unaudited, $ in millions, except per share statistics) | ||||||||||||||||||||||||||||||||||||||
| Quarter Ended | ||||||||||||||||||||||||||||||||||||||
| Mar 31, 2026 | Dec 31, 2025 | Sep 30, 2025 | Jun 30, 2025 | Mar 31, 2025 | Mar 31, 2026 vs. 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 | % | 16.9 | % | 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 | % | ||||||||||||||||||||||||||||
| (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) 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. | ||||||||||||||||||||||||||||||||||||||
| (3) Regulatory capital ratios at March 31, 2026 are preliminary and therefore subject to change. | ||||||||||||||||||||||||||||||||||||||
| (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. | ||||||||||||||||||||||||||||||||||||||
6
| SYNCHRONY FINANCIAL | |||||||||||||||||||||||||||||||||||||||||
| PLATFORM RESULTS | |||||||||||||||||||||||||||||||||||||||||
| (unaudited, unrounded, $ in millions) | |||||||||||||||||||||||||||||||||||||||||
| Quarter Ended | |||||||||||||||||||||||||||||||||||||||||
| Mar 31, 2026 | Dec 31, 2025 | Sep 30, 2025 | Jun 30, 2025 | Mar 31, 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) | $ | (3) | $ | — | $ | (18) | NM | ||||||||||||||||||||||||||||
| 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 | $ | 261 | $ | (3) | (1.1) | % | |||||||||||||||||||||||||||
| Other income | $ | 11 | $ | 11 | $ | 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 | $ | 329 | $ | (236) | (71.7) | % | |||||||||||||||||||||||||||
Average active accounts (in thousands)(3) | 20 | 53 | 146 | 152 | 169 | (149) | (88.2) | % | |||||||||||||||||||||||||||||||||
| Interest and fees on loans | $ | 1 | $ | (3) | $ | 13 | $ | 14 | $ | 13 | $ | (12) | (92.3) | % | |||||||||||||||||||||||||||
| Other income | $ | (4) | $ | 3 | $ | (6) | $ | (6) | $ | (1) | $ | (3) | NM | ||||||||||||||||||||||||||||
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) | % | |||||||||||||||||||||||||||
| (1) 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. | |||||||||||||||||||||||||||||||||||||||||
| (2) 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. | |||||||||||||||||||||||||||||||||||||||||
| (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. | |||||||||||||||||||||||||||||||||||||||||
| (4) Reflects the reclassification of $0.2 billion to loan receivables held for sale in 2Q 2025. | |||||||||||||||||||||||||||||||||||||||||
| (5) Includes activity and balances (except for Period-end loan receivables) associated with a Home & Auto portfolio which was sold in 4Q 2025. | |||||||||||||||||||||||||||||||||||||||||
7
| SYNCHRONY FINANCIAL | |||||||||||||||||||||||||||||
RECONCILIATION OF NON-GAAP MEASURES AND CALCULATIONS OF REGULATORY MEASURES(1) | |||||||||||||||||||||||||||||
| (unaudited, $ in millions, except per share statistics) | |||||||||||||||||||||||||||||
| Quarter Ended | |||||||||||||||||||||||||||||
| Mar 31, 2026 | Dec 31, 2025 | Sep 30, 2025 | Jun 30, 2025 | Mar 31, 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) | (1,222) | (1,222) | (1,222) | (1,222) | ||||||||||||||||||||||||
| Less: Goodwill | (1,363) | (1,363) | (1,274) | (1,274) | (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 | 316 | 250 | 209 | 208 | ||||||||||||||||||||||||
| Common equity Tier 1 | $ | 12,985 | $ | 13,242 | $ | 13,910 | $ | 13,803 | $ | 13,446 | |||||||||||||||||||
| Preferred stock | 1,222 | 1,222 | 1,222 | 1,222 | 1,222 | ||||||||||||||||||||||||
| Tier 1 capital | $ | 14,207 | $ | 14,464 | $ | 15,132 | $ | 15,025 | $ | 14,668 | |||||||||||||||||||
| Add: Subordinated debt | 742 | 742 | 742 | 742 | 742 | ||||||||||||||||||||||||
| Add: Allowance for credit losses includible in risk-based capital | 1,390 | 1,426 | 1,386 | 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. | |||||||||||||||||||||||||||||
8
April 21, 2026 FIRST QUARTER 2026 FINANCIAL RESULTS
2 Disclaimers Cautionary Statement Regarding Forward-Looking Statements The following slides are part of a presentation by Synchrony Financial in connection with reporting quarterly financial results and should be read in conjunction with the earnings release and financial supplement included as exhibits to our Current Report on Form 8-K filed today and available on our website (www.investors.synchrony.com) and the SEC's website (www.sec.gov). All references to net earnings and net income are intended to have the same meaning. All comparisons are for the first quarter of 2026 compared to the first quarter of 2025, unless otherwise noted. This presentation 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. 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 presentation and in our public filings, including under the headings “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, including the 2026 outlook on slide 10 of this presentation, 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.
3 (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 Delivering consistent execution through environments Customer engagement1 New & renewed partnerships 69mm average active accounts $43bn purchase volume $100bn loan receivables2 Returning capital to shareholders Culture drives results Repurchases $0.7bn $9.3bn $17.8bn $25.2bn 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 1Q'26 Dividends Cumulative capital returned since IPO BEST COMPANIES TO WORK FOR IN THE U.S. © 2026 Fortune Media IP Limited. All Rights Reserved. Used under license. 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, commencing 3Q26
4 Net interest margin 15.50% PY: 14.74% Net charge-offs 5.42% PY: 6.38% Efficiency ratio 35.6% PY: 33.4% Diluted earnings per share $2.27 PY: $1.89 Return on assets 2.7% PY: 2.5% 13.2% 12.7% 1Q'25 2Q'25 3Q'25 4Q'25 1Q'26 First quarter in review (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. Growth Results Capital & Shareholder Value Loan receivables2 —% Co-Branded Cards1: $33.9bn, +22% Book value per share Tangible book value per share5 $40.37 $45.29 1Q'25 2Q'25 3Q'25 4Q'25 1Q'26 $34.79 $37.62 1Q'25 2Q'25 3Q'25 4Q'25 1Q'26 Average active accounts3 (1)% Common Equity Tier 1 (CET1) capital ratio4 Capital returned $99.6bn $100.1bn 1Q'25 1Q'26 69.3mm 68.8mm 1Q'25 1Q'26 $40.7bn $43.0bn 1Q'25 1Q'26 $0.7bn $1.0bn 1Q'25 2Q'25 3Q'25 4Q'25 1Q'26 Purchase volume +6% Co-Branded Cards1: $22.0bn, +20%
5 (1) Percentages calculated from amounts presented in millions in the financial supplement. (2) All Home & Auto metrics have been recast to remove amounts associated with a Home & Auto program agreement sold in October 2025. See footnotes in financial supplement for additional information. Financial results Results ($mm, except per share statistics) By Platform ($bn) 1Q'26 1Q'25 B / (W) Interest income $5,603 $5,550 1% Interest expense 968 1,086 11% Net interest income 4,635 4,464 4% Retailer share arrangements (RSA) (1,070) (895) (20)% 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 6% Provision for income taxes 242 227 (7)% Net earnings 805 757 6% Preferred dividends 21 21 —% Net earnings available to common stockholders $784 $736 7% Diluted earnings per share $2.27 $1.89 20% 1Q'26 1Q'25 B / (W)1 Home & Auto2 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 4% Purchase volume $14.9 $13.7 9% Interest and fees on loans $1.2 $1.2 1% Health & Wellness Loan receivables $15.3 $15.2 1% Purchase volume $3.9 $3.8 3% Interest and fees on loans $0.9 $0.9 4% Lifestyle Loan receivables $6.5 $6.6 (1)% Purchase volume $1.2 $1.2 7% Interest and fees on loans $0.3 $0.3 (1)%
6 1Q'25 1Q'26 B / (W) Net int. income $4,464 $4,635 4% Key financial trends Net interest income ($mm) Highlights (20)% +2% +11% 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% Net interest margin • 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 • 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. Investment income Interest & fees Interest expense $5,312 $5,413 $(1,086) $(968) $238 $190
7 $506 $515 $217 $209 $116 $114 $219 $262 $185 $216 (1) Other expense divided by sum of Net interest income, plus Other income, less Retailer share arrangements. 1Q'25 1Q'26 B / (W) Other expense $1,243 $1,316 (6)% Other expense Marketing and business dev Professional fees Results ($mm) Highlights Employee costs +4% +2% (2)% Information processing (20)% Other (17)% Efficiency ratio1 33.4% 34.1% 32.6% 36.9% 35.6% 1Q'25 2Q'25 3Q'25 4Q'25 1Q'26 • 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
8 • 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 (1) 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. Highlights Credit 30+ days past due $mm, % of period-end loan receivables 90+ days past due $mm, % of period-end loan receivables Net charge-offs $mm, annualized as % of average loan receivables, including held for sale Allowance for credit losses2 $mm, % of period-end loan receivables Credit trends1 4.74% 4.70% 4.52% 4.49% 4.54% $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 2.42% 2.40% 2.29% 2.17% 2.28% $2,459 $2,512 $2,285 $2,248 $2,284 1Q'24 2Q'24 3Q'24 4Q'24 1Q'25 2Q'25 3Q'25 4Q'25 1Q'26 6.31% 6.45% 6.38% 5.37% 5.42% $1,585 $1,661 $1,588 $1,367 $1,346 1Q'24 2Q'24 3Q'24 4Q'24 1Q'25 2Q'25 3Q'25 4Q'25 1Q'26 10.72% 10.44% 10.87% 10.06% 10.42% $10,905 $10,929 $10,828 $10,442 $10,428 1Q'24 2Q'24 3Q'24 4Q'24 1Q'25 2Q'25 3Q'25 4Q'25 1Q'26
9 1Q'25 CET1% 13.2 % Net earnings +3.5 % Share repurchases (3.2) % Common and preferred dividends (0.5) % Risk-weighted asset changes — % Other activity, net (0.3) % 1Q'26 CET1% 12.7 % Funding, capital and liquidity Funding and liquidity ($bn) Common Equity Tier 1 (CET1) ratio (1) Amounts at March 31, 2026 are preliminary and therefore subject to change. (2) 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. Unsecured Secured Deposits 9% 8% 83% Capital ratios1 CET1 capital ratio Tier 1 capital ratio Total capital ratio Tier 1 capital + credit loss reserve ratio2 Liquid assets $23.8 $22.8 % of total assets 19.5% 18.8% $83.4 $82.9 $8.6 $8.9 $8.4 $7.5 13.2% 12.7% 1Q'25 1Q'26 14.4% 13.9% 1Q'25 1Q'26 16.5% 16.0% 1Q'25 1Q'26 25.1% 24.1% 1Q'25 1Q'26 1Q'25 1Q'26 % total Total funding $100.4 $99.3 100%
10 2026 Outlook (comments and trends in comparison to 2025, except where noted) Commentary Baseline assumptions (excluding impacts of qualitative overlays) • No additional broad-based credit refinements • No regulatory or legislative changes • Stable macroeconomic environment • No significant change in inflation rates • No additional modifications to PPPCs Mid-single digit Ending loan receivables growth $9.10 - $9.50 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 Mid-single digit Ending loan receivables growth $9.10 to $9.50 Earnings per diluted share <5.5% Net charge-off rate
12 The following table sets forth transaction related activity and other notable items incurred during 1Q'26 and 1Q'25. Transaction related activity and other notable items - 1Q $ in millions Quarter Ended March 31 2026 2025 Transaction related activity Provision for credit losses: Loan portfolio acquisition $1 $5 Total $1 $5 Notable items Notable Other expense items: Charitable Contribution $— $15 Ally Lending restructuring charge — 12 Preparatory expenses related to Late fee rule change — 1 Total $— $28
13 The following table sets forth a reconciliation between GAAP results and non-GAAP adjusted results. Non-GAAP reconciliation 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) (1,222) (1,222) (1,222) (1,222) Less: Goodwill (1,363) (1,363) (1,274) (1,274) (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 $ in millions, except per share data
14 $ in millions Non-GAAP reconciliation (continued) At March 31 2026 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 The following table sets forth the components of our Tier 1 Capital + Reserves ratio for the periods indicated below. (1) Amounts at March 31, 2026 are preliminary and therefore subject to change. 1
Exhibit 99.4
Explanation of Non-GAAP Measures
The information provided in this Form 8-K and exhibits includes measures which are not prepared in accordance with U.S. generally accepted accounting principles ("GAAP").
We present certain capital measures in this Form 8-K and exhibits. Our “Tier 1 Capital and Credit Loss Reserve Ratio” is not required by regulators to be disclosed, and therefore is considered a non-GAAP measure. We believe this ratio is a useful measure to investors as it provides a meaningful measure of what the Company’s total loss absorption capacity would be.
We also present measures we refer to as “return on tangible common equity” and “tangible book value per share” in this Form 8-K and exhibits. Tangible book value per share is calculated based on tangible common equity divided by common shares outstanding. Tangible common equity itself is not a measure presented in accordance with GAAP. We believe tangible common equity, and tangible book value per share, are more meaningful measures to investors of the net asset value of the Company.
The reconciliations of these capital and equity related non-GAAP measures to the applicable comparable GAAP financial measures are included in the detailed financial tables included in Exhibit 99.2.
FAQ
How did Synchrony Financial (SYF) perform in Q1 2026?
Synchrony Financial reported net earnings of $805 million in Q1 2026, up from $757 million a year earlier. Diluted EPS rose to $2.27 from $1.89, reflecting higher net interest income, wider margins and better credit performance.
What were Synchrony Financial’s key revenue and margin metrics for Q1 2026?
Net interest income reached $4.64 billion, a 3.8% increase versus Q1 2025. Net interest margin improved to 15.50%, up 76 basis points, as loan receivables yields rose and interest expense on deposits and borrowings declined.
How did credit quality trends look for Synchrony Financial in Q1 2026?
Credit quality improved, with net charge-offs at 5.42% of average loan receivables versus 6.38% a year earlier. Loans 90+ days past due were 2.28% of period-end receivables, slightly below 2.29% in Q1 2025, while allowance coverage was 10.42%.
What capital returns did Synchrony Financial deliver in Q1 2026?
The company returned $1.0 billion to shareholders, including $900 million of share repurchases and $104 million of common dividends. Since its IPO, cumulative capital returned has grown steadily, with additional programs approved for future buybacks and dividends.
What were Synchrony Financial’s capital ratios at the end of Q1 2026?
At March 31, 2026, the estimated Common Equity Tier 1 capital ratio was 12.7%, compared with 13.2% a year earlier. The estimated Tier 1 capital ratio was 13.9%, and the total risk-based capital ratio was 16.0%, all on a preliminary basis.