Synchrony Financial · NYSE:SYF
Synchrony Financial — Q2 2024 Earnings Presentation
16 slides from Synchrony Financial's earnings presentation, Jul 17, 2024
Slide 1: 2Q'24 Financial Results
2Q'24 FINANCIAL RESULTS July 17, 2024
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'24 Financial Highlights
2Q'24 Financial Highlights SUMMARY FINANCIAL METRICS CAPITAL $1.55 14.46% 12.6% DILUTED EPS NET INTEREST MARGIN CET1 compared to $1.32 compared to 14.94% liquid assets of $20.0 billion, 16.6% of total assets $102.3 billion 6.42% $83.1 billion LOAN RECEIVABLES NET CHARGE-OFFS DEPOSITS compared to $94
Slide 4: 2Q'24 Business Highlights
2Q'24 Business Highlights BUSINESS EXPANSION GROWTH METRICS CONSUMER PERFORMANCE Purchase volume New accounts(c) $ billions (1)% (14)% Dual Card / $19.4 $19.7 2% Co-Brand (a) (d) Loan receivables Purchase volume per account $ billions 8% (3)% Dual Card / $23.7 $26.7 12% Co-Brand (a) (b) Average acti
Slide 5: Financial Results
Financial Results Summary earnings statement 2Q'24 Highlights B/(W) $643 million Net earnings, $1.55 Diluted EPS $ in millions, except per share statistics 2Q'24 2Q'23 $ % • Net interest income up 7% Total interest income $5,582 $5,021 $561 11% – Interest and fees on loans up 10% driven primarily by
Slide 6: 2Q'24 Platform Results
(a) 2Q'24 Platform Results Loan receivables Home & Digital Diversified & Health & Lifestyle Auto Value Wellness 6% 8% 6% 15% 9% 2Q'23 2Q'24 V% 2Q'23 2Q'24 V% 2Q'23 2Q'24 V% 2Q'23 2Q'24 V% 2Q'23 2Q'24 V% Purchase $12.9 $12.5 (3)% $13.5 $13.4 (1)% $15.4 $15.3 -% $4.0 $4.1 2% $1.6 $1.5 (3)% volume Acco
Slide 7: Net Revenue
Net Revenue Net revenue 2Q'24 Highlights $ in millions 13% • Net revenue increased $418 million, or 13% $3,712 $3,294 – Net interest income increased $285 million, or 7%, driven primarily by higher interest & fees on loans – Loan receivables yield of 21.01%, up 14 bps driven by repricing and lower p
Slide 8: Other Expense
Other Expense Other Expense $ in millions 1% 2Q'24 Highlights • Total Other expense up 1% – Increase primarily driven by technology investments, preparatory expenses related to Late Fee rule change, and servicing costs related to newly acquired business, partially offset by lower operational losses
Slide 9: 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)(b) 90+ days past due Allowance for credit losses $ in millions, % of period-end loan receivables $ in millions, % of period
Slide 10: Delinquency Trends
Delinquency Trends 30+ days past due % of period-end loan receivables (left axis); rate change versus prior year in basis points (right axis) Basis point change versus prior year +63 bps 0 bps 90+ days past due % of period-end loan receivables (left axis); rate change versus prior year in basis poin
Slide 11: Funding, Capital and Liquidity
Funding, Capital and Liquidity Funding sources CET1% Walk $ in billions % 2Q'23 CET1% 12.8% 8% Net Earnings 2.4% Unsecured 8% Securitization Risk Weighted Asset changes (0.9)% Common & Preferred dividends (0.5)% Deposits 84% Share repurchases (1.1)% CECL transition provisions (0.5)% Other activity,
Slide 12: 2024 Business Trends
2024 Business Trends • Purchase volume lower than expectations, offset by lower payment rate • Net interest income growth in-line with expectations due to lower than expected payment rate and 2Q’24 favorable deposit betas, partially offset by higher reversals Performance • Delinquency trending in-li
Slide 13: Footnotes
Footnotes All amounts and metrics included in this presentation are as of, or for the three months ended, June 30, 2024, unless otherwise stated. 2Q'24 Business Highlights a. Dual Card / Co-Brand metrics are consumer only and include in-partner and out-of-partner activity. b. Average active accounts
Slide 14: Synchrony: Changing What's Possible
»/" synchrony CHANGING WHAT’S POSSIBLE
Slide 15: Notable Other Income and Other Expense Items
Notable Other Income and Other Expense Items The following table sets forth notable items incurred during the quarter included in Total Other income and Total Other expense. $ in millions Quarter Ended June 30, 2024 Notable Other income items Total Other income: Gain related to Visa B-1 share exchan
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. $ in millions At June 30 Total 2023 2024 Tier 1 Capital $ 12,959 $ 14,290 Less: CECL transition adjustment (1,146) (573) Tier 1 capital (CECL fully phased-in