Slide 1: 1Q'16 Financial Results
1Q’16 Financial Results April 22, 2016 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: 1Q'16 Highlights
3 1Q'16 Highlights Financial highlights • $582 million Net earnings, $0.70 diluted EPS • Strong growth across the business Purchase volume +17%, Loan receivables +13%, Platform revenue +13% • Asset quality metrics relatively stable … Net charge-offs were 4.70% compared to 4.53% in the prior year
Slide 4: Growth Metrics
4 Growth Metrics +17% Purchase volume $ in billions Loan receivables $ in billions Active accounts Average active accounts in millions Platform revenue $ in millions 1Q'15 1Q'16 $23.1 $27.0 $58.2 $65.8 $2,920 $2,581 66.1 61.6 +7% +13% +13% 1Q'15 1Q'16 1Q'15 1Q'16 1Q'15 1Q'16
Slide 5: Platform Results
5 Platform Results Retail Card Loan receivables, $ in billions $39.7 $45.1 1Q'15 1Q'16 Strong receivable growth across partner programs Platform revenue up 15% driven primarily by receivable growth Payment Solutions Loan receivables, $ in billions $11.8 $13.4 1Q'15 1Q'16 Broad receivable growt
Slide 6: Financial Results Summary
6 Financial Results Summary earnings statement First quarter 2016 highlights $ in millions, except ratios Total interest income $3,520 $3,150 $370 12% Total interest expense 311 275 (36) (13)% Net interest income (NII) 3,209 2,875 334 12% Retailer share arrangements (RSA) (670) (660) (10) (2)% NII,
Slide 7: Net Interest Income
7 Net Interest Income First quarter 2016 highlights • Net interest income increased 12% compared to prior year driven by growth in receivables Interest and fees on loans increased 11% compared to prior year driven by average loan receivable growth • Net interest margin stable Liquid assets as a
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 90+ days past due $ in millions, % of period-end loan receivables 4.26% $1,051 4.02% $2,772 $2,416 $673 1.85% $579 3.82% $2,0
Slide 9: Other Expense
9 Other expense $ in millions Other Expense Employee costs $239 $280 $41 17% Professional fees 162 146 (16) (10)% Marketing/BD 82 94 12 15% Information processing 63 82 19 30% Other 200 198 (2) (1)% Other expense $746 $800 $54 7% Efficiency 32.2% 30.4% (1.8)pts. $746 • Expense increase compared to p
Slide 10: Funding, Capital and Liquidity
10 Funding, Capital and Liquidity (c) Liquid assets $13.8 $14.9 Undrawn securitization capacity 6.6 7.3 Total liquidity $20.4 $22.2 % of total assets 28.1% 27.2% Common equity Tier 1 $12.1 $11.8 Risk-weighted assets $66.7 $67.7 Liquidity $ in billions 1Q'16 $22.2 $20.4 1Q'15 Capital ratios 1Q'16, $
Slide 11: 1Q'16 Wrap Up
11 1Q’16 Wrap Up • Net earnings of $582 million … $0.70 earnings per diluted share • Broad based growth … Purchase volume +17%, Loan receivables +13%, Platform revenue +13% • Renewed key partners … Stein Mart and La-Z-Boy • Signed new partnership with Marvel • Launched a new program with Citgo • Lau
Slide 12: Synchrony Financial - Engage with us
s{! synchrony FINANCIAL Engage with us.
Slide 13: Appendix
13 Appendix
Slide 14: Non-GAAP Reconciliations
14 Non-GAAP Reconciliations In order to assess and internally report the revenue performance of our three sales platforms, we use measures we refer to as “platform revenue” and “platform revenue excluding retailer share arrangements.” Platform revenue is the sum of three line items in our Condensed
Slide 15: Non-GAAP Reconciliation: Platform Revenue
15 Non-GAAP Reconciliation The following table sets forth each component of our platform revenue for periods indicated below. ($ in millions) 2016 2015 Platform Revenue Total: Interest and fees on loans . . . . . . . . . . . . . . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Slide 16: Non-GAAP Reconciliation: Capital Ratios
16 Non-GAAP Reconciliation The following table sets forth a reconciliation of each component of our capital ratios to the comparable GAAP component at March 31, 2016. COMMON EQUITY MEASURES GAAP Total common equity .....................................................................................