Synchrony Financial · NYSE:SYF
Synchrony Financial — Q1 2019 Earnings Presentation
14 slides from Synchrony Financial's earnings presentation, Apr 18, 2019
Slide 1: 1Q'19 Financial Results
Exhibit 99.3 1Q’19 Financial Results April 18, 2019
Slide 2: Disclaimers: Cautionary Statement Regarding Forward-Looking Statements
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'19 Highlights
1Q’19 Highlights Financial Highlights Business Highlights • $1.107 billion Net earnings, $1.56 diluted EPS • Renewed and extended key relationships ‒ Reserve release related to Walmart portfolio being moved to HFS was $522 million, or $395 million after-tax; EPS benefit of $0.56 • Strong growth metr
Slide 4: Growth Metrics
Growth Metrics Purchase volume +10% Loan receivables +3% $ in billions $ in billions $32.5 $29.6 $77.9 $80.4 (a) Core $68.3 $79.7 +17% 1Q’18 1Q’19 1Q’18 1Q’19 Average active accounts +8% Interest and fees on loans +12% in millions $ in millions $4,687 77.1 71.3 $4,172 1Q’18 1Q’19 1Q’18 1Q’19 (a) Loa
Slide 5: Platform Results
Platform Results(a) (b) Retail Card Payment Solutions(b) CareCredit Loan receivables, $ in billions Loan receivables, $ in billions Loan receivables, $ in billions +1% +8% +7% $51.2 $51.5 $19.4 $9.5 $17.9 $8.8 (c) Core $41.6 $50.8 +22% 1Q’18 1Q’19 V% 1Q’18 1Q’19 V% 1Q’18 1Q’19 V% Purchase volume $22
Slide 6: Financial Results Summary
Financial Results Summary earnings statement 1Q'19 Highlights B/(W) • $1.107 billion Net Earnings, $1.56 diluted EPS $ in millions, except ratios 1Q'19 1Q'18 $ % • Net interest income up 10% driven by growth in Total interest income $4,786 $4,244 $542 13% Loan receivables Total interest expense 560
Slide 7: Net Interest Income
Net Interest Income Net interest income $ in millions, % of average interest-earning assets 1Q'19 Highlights +10% • Net interest income increased 10% compared to prior year driven by growth in Loan receivables $4,226 $3,842 − Interest and fees on loans increased 12% compared to prior year driven by
Slide 8: Asset Quality Metrics
Asset Quality Metrics 30+ days past due Net charge-offs $ in millions, % of period-end loan receivables $ in millions, % of average loan receivables including held for sale $4,430 $4,021 $3,831 $3,957 $1,344 $3,694 $3,521 $1,248 $3,293 $1,141 $1,198 $1,159 $3,120 $3,208 $1,087 $1,001 $974 $950 4.92%
Slide 9: Other Expense
Other Expense Other expense $ in millions +6% 1Q'19 Highlights $1,043 • Other expense up 6% $988 ‒ Other expense increase driven primarily by PayPal Credit program • Efficiency ratio 31.0% vs. 30.9% prior year 1Q'18 1Q'19 V$ V% Employee costs $358 $353 $(5) (1)% Professional fees 166 232 66 40% Mark
Slide 10: Funding, Capital and Liquidity
Funding, Capital and Liquidity Funding sources Capital ratios $ in billions Common equity Tier 1 % - Basel III fully phased-in V$ $86.0 16.8% 14.5% $77.6 $9.8 +$1.0 Unsecured $8.8 $12.1 $(0.1) Securitization $12.2 1Q'18 1Q'19 $64.1 +$7.5 Deposits $56.6 Liquidity(a) $24.6 $23.4 $ in billions 1Q'18 1Q
Slide 11: 1Q'19 Wrap Up
1Q’19 Wrap Up • Net earnings of $1.107 billion … $1.56 diluted earnings per share • Reserve release related to Walmart portfolio being moved to HFS was $522 million, or $395 million after-tax; EPS benefit of $0.56 (a) • Broad based growth … Purchase volume +10%, Core Loan receivables +17%, Net inter
Slide 12: Synchrony Financial - Engage with us
|! synchrony FINANCIAL Engage with us.
Slide 13: Appendix
Appendix |" synchrony 13 FINANCIAL Ne
Slide 14: Non-GAAP Reconciliation
Non-GAAP Reconciliation The following table sets forth the components of our Loan receivables for the periods indicated below. $ in billions At March 31, Total Retail Card 2018 2019 2018 2019 Loan receivables . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .