Slide 1: 4Q'15 Financial Results
4Q’15 Financial Results January 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: 4Q'15 Highlights
3 4Q'15 Highlights Financial highlights • $547 million Net earnings, $0.65 diluted EPS • Strong growth across the business Purchase volume +8%, Loan receivables +11%, Platform revenue +5% Strong holiday sales … online/mobile sales +23% in 4Q’15 • Asset quality continues to improve Net charge-o
Slide 4: Growth Metrics
4 Growth Metrics +8% Purchase volume $ in billions Loan receivables $ in billions Active accounts Average active accounts in millions Platform revenue $ in millions 4Q'14 4Q'15 $30.1 $32.5 $61.3 $68.3 $2,847 $2,716 64.9 61.7 +5% +5% +11% 4Q'14 4Q'15 4Q'14 4Q'15 4Q'14 4Q'15
Slide 5: Platform Results
5 Platform Results Retail Card Loan receivables, $ in billions $42.3 $47.5 4Q'14 4Q'15 Strong receivable growth across partner programs 4Q’14 Platform revenue included $46 million gain on portfolio sales, which did not repeat Platform revenue up 5% driven by receivable growth Payment Solutions
Slide 6: Financial Results Summary
6 Financial Results Summary earnings statement Fourth quarter 2015 highlights $ in millions, except ratios Total interest income $3,509 $3,260 $249 8% Total interest expense 301 282 (19) (7)% Net interest income (NII) 3,208 2,978 230 8% Retailer share arrangements (RSA) (734) (698) (36) (5)% NII, af
Slide 7: Net Interest Income
7 Net Interest Income Fourth quarter 2015 highlights • Net interest income up 8% driven by growth in receivables Interest and fees on loans up 7% driven by average loan receivable growth • Net interest margin +13bps. driven by lower average liquidity as a % of total interest-earning assets Liqui
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 1Q’14 1Q’15 4.02% $2,772 $2,416 $673 1.85% $57
Slide 9: Other Expense
9 Other expense $ in millions Other Expense Employee costs $227 $285 $58 26% Professional fees 139 165 26 19% Marketing/BD 165 128 (37) (22)% Information processing 60 83 23 38% Other 201 209 8 4% Other expense $792 $870 $78 10% Efficiency 32.4% 34.0% +1.6pts. $792 • Expense increase primarily drive
Slide 10: Funding, Capital and Liquidity
10 Funding, Capital and Liquidity (c) Liquid assets $12.9 $14.8 Undrawn securitization capacity 6.1 6.1 Total liquidity $19.0 $20.9 % of total assets 25.2% 24.9% Tier 1 common equity $11.6 $11.2 Risk-weighted assets $69.4 $70.7 Liquidity $ in billions 4Q'15 $20.9 $19.0 4Q'14 Capital ratios 4Q'15, $
Slide 11: 2015 Performance
11 2015 Performance Loan Receivables Growth 6% - 8% 11% Strategies delivering strong growth Net Interest Margin 15.0% - 15.5% 15.8% Excess liquidity utilization Net Charge-off Rate Stable (18) bps Improved consumer fundamentals Efficiency Ratio < 34% 33.5% Reflects stand-alone costs ROA 2.5% - 3.0%
Slide 12: 2016 Outlook
12 2016 Outlook Receivable Growth 7% - 9% Net Interest Margin ~15.5% Net Charge-off Rate Stable Efficiency Ratio < 34% ROA 2.5% - 3.0% 2016 Outlook
Slide 13: Strategic Priorities
13 Strategic Priorities Grow our business through our three sales platforms • Grow existing retailer penetration • Continue to innovate and provide robust cardholder value propositions • Add new partners and programs with attractive risk and return profiles Position business for long-term growth • B
Slide 14: Synchrony Financial - Engage with us.
s{! synchrony FINANCIAL Engage with us.
Slide 15: Appendix
15 Appendix
Slide 16: Non-GAAP Reconciliations
16 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 17: Non-GAAP Reconciliation
17 Non-GAAP Reconciliation The following table sets forth each component of our platform revenue for periods indicated below. ($ in millions) 2015 2014 Platform Revenue Total: Interest and fees on loans . . . . . . . . . . . . . . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Slide 18: Non-GAAP Reconciliation
18 Non-GAAP Reconciliation The following table sets forth a reconciliation of each component of our capital ratios to the comparable GAAP component at December 31, 2015. COMMON EQUITY MEASURES GAAP Total common equity ..................................................................................