Synchrony Financial · NYSE:SYF
Synchrony Financial — Q1 2022 Earnings Presentation
17 slides from Synchrony Financial's earnings presentation, Apr 18, 2022
Slide 1: 1Q'22 Financial Results
1Q'22 FINANCIAL RESULTS April 18, 2022
Slide 2: Disclaimers
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. No representation is made that the information in these slides is complete. For additional informatio
Slide 3: 1Q'22 Financial Highlights
1Q'22 Financial Highlights SUMMARY FINANCIAL METRICS CAPITAL $1.77 15.80% 15.0% DILUTED EPS NET INTEREST MARGIN CET1 compared to $1.73; compared to 13.98% liquid assets of $14.7 billion, $0.04 increase from reserve 15.4% of total assets reductions for HFS portfolios $83.0 billion 2.73% $63.6 billion
Slide 4: 1Q'22 Business Highlights
1Q’22 Business Highlights BUSINESS EXPANSION GROWTH METRICS CONSUMER PERFORMANCE Purchase Volume New Accounts(c) $ billions 17% 10% Dual Card / Co-Brand $13.0 $16.9 29% Loan receivables Purchase Volume per Account (d) $ billions 3% 10% Core(a) $72.5 $78.7 8% Dual Card / $17.9 $20.8 16% Co-Brand(b) (
Slide 5: The NEW PayPal Cashback Credit Card
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Slide 6: Financial Results
Financial Results Summary earnings statement 1Q'22 Highlights B/(W) • $932 million Net earnings, $1.77 diluted EPS $ in millions, except per share statistics 1Q'22 1Q'21 $ % – $29 million reserve reductions related to HFS portfolios, or $22 million after-tax, $0.04 EPS Total interest income $4,022 $
Slide 7: 1Q'22 Platform Results
(a) 1Q'22 Platform Results Loan receivables $ in billions Home & Digital Diversified & Health & Lifestyle Auto Value Wellness 6% 11% 7% 12% 8% 1Q'21 1Q'22 V% 1Q'21 1Q'22 V% 1Q'21 1Q'22 V% 1Q'21 1Q'22 V% 1Q'21 1Q'22 V% Purchase $9.3 $10.3 10% $1.2 $1.2 4% $9.3 $11.2 20% $9.2 $11.6 25% $2.6 $3.1 17% V
Slide 8: Net Interest Income
Net Interest Income Net Interest Income 1Q'22 Highlights $ in millions 10% % of average interest-earning assets • Net interest income increased 10% – Interest and fees on loans up 7% driven by growth in average loan receivables – Interest expense decrease attributed to lower benchmark rates and lowe
Slide 9: Asset Quality Metrics
Asset Quality Metrics (a) 30+ days past due Net charge-offs $ in millions, % of period-end loan receivables $ in millions, % of average loan receivables including held for sale (b) 90+ days past due Allowance for credit losses $ in millions, % of period-end loan receivables $ in millions, % of perio
Slide 10: Other Expense
Other Expense Other expense $ in millions 11% 1Q'22 Highlights • Other expense up 11% – Increase driven by higher employee, marketing/business development and technology costs; Other expense includes $10 million of costs related to certain employee and legal matters – Employee cost increase of $38 m
Slide 11: Funding, Capital and Liquidity
Funding, Capital and Liquidity (a) Funding sources Liquidity $ in billions $ in billions Unsecured V$ Securitization $(0.8) $(1.1) Deposits $0.9 V% Deposits 81% 83% +2 pts. Liquid assets $22.6 $14.7 Undrawn credit facilities 5.4 3.1 Securitization 9% 8% (1) pts. Total liquidity $28.0 $17.8 Unsecured
Slide 12: 2022 Outlook
2022 Outlook (comments and trends in comparison to 2021, except where noted) Key Driver Full Year Framework FY 2022 Loan Receivables Growth • Driven by slowing payment rate & continued Purchase Volume strength ~10% • NIM to follow normal seasonal trends adjusted for the following items: • fluctuatio
Slide 13: 1Q'22 Key Business Themes
1Q'22 Key Business Themes Core business differentiators are driving strong & resilient financial results Across our diverse platforms, customer engagement and spend are growing as product suite, value propositions, and omnichannel experiences resonate across generations and industries Consumer healt
Slide 14: Footnotes
Footnotes References in this presentation to “HFS” are to Loan receivables held for sale 1Q'22 Business Highlights b. Dual Card/Co-Brand balances include Loan receivables held for sale. c. New Accounts represent accounts that were approved in the respective period, in millions. d. Purchase Volume pe
Slide 15: Synchrony - Changing What's Possible
»/" synchrony CHANGING WHAT’S POSSIBLE
Slide 16: Non-GAAP Reconciliation
Non-GAAP Reconciliation The following table sets forth the components of our Loan receivables for the periods indicated below. $ in millions At March 31, Total CORE LOAN RECEIVABLES 2021 2022 Loan receivables $76,858 $78,916 Loan receivables held for sale 23 4,046 Loan receivables including held for
Slide 17: Non-GAAP Reconciliation Continued
Non-GAAP Reconciliation Continued* The following table sets forth the components of our Tier 1 Capital + Reserves ratio for the periods indicated below. $ in millions At March 31, Total 2021 2022 Tier 1 Capital. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .