Slide 1: 4Q'14 Financial Results
4Q’14 Financial Results January 23, 2015 Exhibit 99.3
Slide 2: Cautionary Statement Regarding Forward-Looking Statements
2 Cautionary Statement Regarding Forward-Looking Statements The following slides are part of a presentation by Synchrony Financial in connection with reporting quarterly financial results. No representation is made that the information in these slides is complete. For additional information, see the
Slide 3: 4Q'14 Highlights
3 4Q’14 Highlights Financial highlights • $531 million Net earnings, $0.64 EPS • Strong growth across the business Purchase volume +11%, Loan receivables +7%, Platform revenue +9% Mobile & online purchase volume up 18% Strong holiday results • Asset quality continues to improve Net charge-of
Slide 4: Growth Metrics
4 Growth Metrics +11% Purchase volume $ in billions Loan receivables $ in billions Active accounts Average active accounts in millions Platform revenue $ in millions 4Q’13 4Q’14 $27.0 $30.1 $57.3 $61.3 $2,716 $2,500 61.7 58.4 +6% +9% +7% 4Q’13 4Q’14 4Q’13 4Q’14 4Q’13 4Q’14 (a) (a) Platform revenue i
Slide 5: Platform Results
5 Platform Results Retail Card Loan receivables, $ in billions $39.9 $42.3 4Q’13 4Q’14 Strong receivable growth across partner programs Platform revenue up 10% driven by receivable growth Payment Solutions Loan receivables, $ in billions $10.9 $12.1 4Q’13 4Q’14 Broad receivable growth led by h
Slide 6: Financial Results Summary
6 Financial Results Summary earnings statement Fourth quarter 2014 highlights $ in millions, except ratios Total interest income $3,260 $3,037 $223 7% Total interest expense 282 188 (94) (50)% Net interest income (NII) 2,978 2,849 129 5% Retailer share arrangements (RSA) (698) (662) (36) (5)% NII, a
Slide 7: Net Interest Income
7 Net Interest Income Fourth quarter 2014 highlights • Net interest income up 5% driven by growth in receivables partially offset by higher funding costs Interest and fees on loans up 7% in-line with loan receivable growth • Net interest margin decline driven primarily by increase in liquidity L
Slide 8: Asset Quality Metrics
8 Asset Quality Metrics Net charge-offs $ in millions, % of average loan receivables including held for sale 30+ days past due $ in millions, % of period-end loan receivables Allowance for loan losses $ in millions, % of period-end loan receivables 90+ days past due $ in millions, % of period-end lo
Slide 9: Other Expense
9 Other expense $ in millions Other Expense Employee cost $190 $227 $37 19% Professional fees 157 152 (5) (3)% Marketing/BD 117 165 48 41% Info. processing 52 60 8 15% Other 291 188 (103) (35)% Other expense $807 $792 $(15) (2)% Efficiency 34.8% 32.4% (2.4)pts. $807 • Expense decrease driven by 4Q’1
Slide 10: Funding, Capital and Liquidity
10 Funding, Capital and Liquidity (b) Liquid assets $2.1 $12.9 Undrawn securitization capacity - 6.1 Total liquidity $2.1 $19.0 % of total assets 3.5% 25.2% Tier 1 common $9.3 $9.3 Risk weighted assets $62.3 $64.1 Liquidity $ in billions 4Q’14 $19.0 $2.1 4Q’13 Capital ratios 4Q’14, $ in billions BI
Slide 11: 2015 Outlook
11 2015 Outlook Receivable Growth 5%+ 6% - 8% Net Interest Margin ~ 15.0% 15.0% - 15.5% Net Charge-off Rate Stable Stable Efficiency Ratio < 35% < 34% ROA 2.5% - 3.0% 2.5% - 3.0% Prior guidance 2015 outlook
Slide 12: Wrap Up
12 Wrap Up 4Q’14 Highlights • Net earnings of $531 million … $0.64 earnings per share • Broad based growth … Purchase volume +11%, Loan receivables +7% and Platform revenue +9% • Signed BP … expect to close mid-2015 • Extended two of our top 40 partnerships, Rooms To Go and Yamaha 2015 outlook and s
Slide 13: Engage with us.
s{! synchrony FINANCIAL Engage with us.
Slide 14: Appendix
Appendix i]! synchrony 14
Slide 15: Non GAAP Reconciliations
15 Non GAAP Reconciliations In order to assess and internally report the revenue performance of our three sales platforms, we use measures we refer to as “platform revenue” and “platform revenue excluding retailer share arrangements.” Platform revenue is the sum of three line items in our Condensed
Slide 16: Non-GAAP Reconciliation
16 Non-GAAP Reconciliation The following table sets forth each component of our platform revenue for periods indicated below. ($ in millions) 2014 2013 Platform Revenue Total: Interest and fees on loans . . . . . . . . . . . . . . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Slide 17: Common Equity Measures
17 COMMON EQUITY MEASURES GAAP Total common equity…………………………………………………..……. Less: Goodwill…………………………………………………………..……. Less: Intangible assets, net……………………………………………..…….. Tangible common equity……………………………………………………..…… Adjustments for certain other intangible assets, deferred tax liabilities and certai