Synchrony Financial · NYSE:SYF
Synchrony Financial — Q2 2021 Earnings Presentation
16 slides from Synchrony Financial's earnings presentation, Jul 20, 2021
Slide 1: 2Q'21 Financial Results
2Q'21 FINANCIAL RESULTS July 20, 2021
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: 2Q'21 Financial Highlights
2Q'21 Financial Highlights SUMMARY FINANCIAL METRICS CAPITAL $2.12 13.78% 17.8% DILUTED EPS NET INTEREST MARGIN CET1 compared to $0.06 compared to 13.53% liquid assets of $16.3 billion, 17.7% of total assets $78.4 billion 3.57% $59.8 billion LOAN RECEIVABLES NET CHARGE-OFFS DEPOSITS compared to $78.
Slide 4: 2Q'21 Business Highlights
2Q'21 Business Highlights PARTNER EXPANSION CONSUMER PERFORMANCE DIGITAL New Accounts(a) 58% ~65% DIGITAL PAYMENTS* *2Q'21 % of Total Payments Purchase Volume per Account (b) 33% ~55% DIGITAL APPLICATIONS ~35% MOBILE CHANNEL Average Balance per Account (c) APPLICATIONS (4)% ~45% ONLINE SALES* *Exclu
Slide 5: Home – Leveraging Our Strengths
Home – Leveraging Our Strengths Resilient Growth Driven by Diversified Exposure In Home Spend 58% +30 years ~60K Sales are repeat purchases (a) Average length of relationship Merchants/Locations with top 20 partners(b) Diversified Spend Expand Home Share of Wallet ▪ Furniture ▪ Accessories Grow the
Slide 6: Financial Results
Financial Results Summary earnings statement 2Q'21 Highlights B/(W) • $1.2 billion Net earnings, $2.12 diluted EPS $ in millions, except per share statistics 2Q'21 2Q'20 $ % Total interest income $3,578 $3,830 $(252) (7)% • Net interest income down 2% Total interest expense 266 434 168 39 % – Intere
Slide 7: Growth Metrics
Growth Metrics Purchase volume 35% Loan receivables —% $ in billions $ in billions $44.0 Dual Card / Dual Card / $10.4 $16.3 56% $18.4 $18.4 —% Co-Brand Co-Brand Average active accounts 2% Interest and fees on loans (6)% in millions $ in millions 75.1 7
Slide 8: 2Q'21 Platform Results
2Q'21 Platform Results(a) Loan receivables $ in billions Home & Digital Diversified & Health & Lifestyle Auto Value Wellness 1% 2% (5)% 3% 9% 2Q'20 2Q'21 V% 2Q'20 2Q'21 V% 2Q'20 2Q'21 V% 2Q'20 2Q'21 V% 2Q'20 2Q'21 V% Purchase $9.7 $12.2 25% $8.4 $10.9 30% $1.3 $1.4 9% $7.7 $11.6 51% $2.0 $3.0 53% Vo
Slide 9: Net Interest Income
Net Interest Income Net Interest Income 2Q'21 Highlights $ in millions % of average interest-earning assets (2)% • Net interest income decreased 2% – Interest and fees on loans down 6% as payment rates remain elevated and delinquencies remain low • Net interest margin (NIM) up 25 bps – Loan receivab
Slide 10: 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 (a) 90+ days past due Allowance for credit losses $ in millions, % of period-end loan receivables $ in millions, % of period-en
Slide 11: Other Expense
Other Expense Other expense $ in millions (4)% 2Q'21 Highlights Other expense down 4% • Decrease primarily due to lower operational losses partially offset by Employee costs, Marketing and Business Development, and Information processing Efficiency ratio 39.6% vs. 36.3% prior year • Increase in rati
Slide 12: Funding, Capital and Liquidity
Funding, Capital and Liquidity (a) Funding sources Liquidity $ in billions $ in billions Unsecured V$ Securitization $(1.5) $(1.1) Deposits $(4.3) V% Deposits 80% 81% +1 pt. Liquid assets $22.4 $16.3 Undrawn credit facilities 5.6 4.9 Securitization 10% 10% - Total liquidity $28.0 $21.2 Unsecured 10%
Slide 13: 2Q'21 Key Business Themes
2Q'21 Key Business Themes Payment rates remain Strong growth trajectory elevated • Purchase volume of $42 billion, +35% • Loan receivables slightly up to $78 billion • Originated 6 million new accounts, • NIM of 13.78% up 25 bps +58% and 11 million new accounts YTD • Growth in loan receivables acros
Slide 14: Footnotes
Footnotes 2Q'21 Business Highlights | slide 4: a. New Accounts represent accounts that were approved in the respective period, in millions. b. Purchase Volume per Account is calculated as the Purchase volume divided by Average active accounts, in $. c. Average Balance per Account is calculated as th
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 Tier 1 Capital + Reserves ratio for the periods indicated below. At June 30, Total 2020 2021 Tier 1 Capital. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .