Slide 1: 2015 Second Quarter Investor Presentation
2015 Second Quarter Investor Presentation July 27, 2015 Exhibit 99.1
Slide 2: Cautionary Statement Regarding Forward-Looking Statements
1 Cautionary Statement Regarding Forward-Looking Statements The following slides are part of a presentation by Synchrony Financial and are intended to be viewed as part of that presentation. This presentation contains certain forward-looking statements as defined in Section 27A of the Securities Act
Slide 3: Synchrony Financial Overview
2 Synchrony Financial Overview Strong Value Proposition for Partners and Consumers • Deep partner integration enables customized loyalty products across channels • Advanced data analytics and targeted marketing capabilities • Dedicated team members support partners to help maximize program effective
Slide 4: Largest PLCC Provider in U.S.
3 Largest PLCC Provider in U.S. Source: Nilson Report, % of 2008 market 80% 85% 90% 95% 100% 105% Private Label Credit Cards are 6% above pre-crisis levels at $108 billion General Purpose Credit Cards are down 11% from peak at $765 billion 2008 2009 2010 2011 2012 2013 Source: Nilson Report, PLCC ye
Slide 5: Long-Standing and Diverse Partner Base
4 Long-Standing and Diverse Partner Base Partner Profile Length of Relationship (Years) Last Renewal 36 2014 21 2014 19 2014 17 2014 15 2013 15 2013 9 2013 8 2015 4 2011 3 2012 We attract partners who value our: • Experience & partnership—long history of improving sales, customer loyalty, and retent
Slide 6: Product Offerings
5 Product Offerings Credit Products Retailer only acceptance Accepted at network locations Deposit Products Retailer only acceptance Accepted at provider network locations Fast-growing online bank Private Label Dual Card Payment Solutions CareCredit Deposits Affinity to retailer, provides customized
Slide 7: Proprietary Closed-Loop Network Advantages
6 Proprietary Closed-Loop Network Advantages Customer Merchant Acquirer Network Issuer General Purpose Card and Co-Branded Cards Synchrony Financial Closed Loop Network for PLCC and Dual Card Citi Capital One Chase Date Merch. Channel Brand Cat./SKU $ 6/2/15 Belk In- Store DKNY Women’s shoes 468XUTY
Slide 8: Robust Data and Actionable Analytics
7 We capture multiple unique data elements from a variety of sources • Consumers • Retailers • Channels • Industry/external Our Analytics Center of Excellence utilizes a variety of tools and techniques to: • Develop consumer profiles and behavioral trends • Create unique segmentation clusters • Deve
Slide 9: eCommerce & Mobile Digital Capabilities
8 eCommerce & Mobile Digital Capabilities Mobile Payments Consumer • Investing in enhanced user experience: - Auto pre-fill - Quickscreen - Customized offers • Mobile applications deliver customized features including rewards, retail offers and alerts Wallet Agnostic Strategy—Offering Choice to Cons
Slide 10: Driving Program Growth
9 Driving Program Growth 1.5% 2.6% 2.7% 0.6% 7.6% 1.6% 9.2% 2.9% 7.5% 9.4% 10.1% 9.8% Mass Electronics Healthcare Apparel/Dept. Home Furniture $531 $278 $223 $213 $213 $77 2014 Market Size ($ in billions) 2012-2014 Market Growth Rate 2012-2014 Synchrony Financial Purchase Volume Growth Rate Sources
Slide 11: Financial Update
10 $472 $541 4.88% 4.63% Financial Update Net Earnings $ in millions 2Q’14 2Q’15 Strong earnings Loan Receivables $ in billions + 12% Net Charge-Offs % of average loan receivables Platform Revenue $ in millions $2,442 $2,665 + 9% Improved 25 bps $54.9 $61.4 2Q’14 2Q’15 2Q’14 2Q’15 2Q’14 2Q’15 (b) (b
Slide 12: Peer Comparison: 2Q
11 Peer Comparison: 2Q 15 (a) Segment data for AXP-U.S Card Services and COF-Domestic Credit Card. Other data-total company level (b) SYF yield calculated as loan receivable yield less net charge-off rate. Peer information calculated as credit card yield less net charge-off rate on credit cards (c)
Slide 13: Credit Quality Overview
12 Credit Quality Overview • Synchrony Financial controls underwriting and credit line decisions • Focus on stronger underwriting has led to higher quality portfolio - 74% of loan receivables have FICO > 660 Stronger Portfolio U.S. consumer FICO Delinquency Performance 30+ days past due as a % of pe
Slide 14: Funding Profile
13 Funding Profile Deposits Securitized Debt Unsecured Debt 2Q’15 Long-term target 16% 61% 23% 15%-20% 60%-70% 15% -20% Diverse Funding Sources % of liabilities excluding non-debt liabilities Driven by Strong Deposit Growth $ in billions $27.4 $30.5 $32.7 $35.0 $35.0 $37.8 2Q’14 1Q’14 3Q’14 4Q’14 1Q
Slide 15: Poised for Continued Growth
14 Poised for Continued Growth Growth Initiatives Strong Receivables Growth $ in billions, percentage is loan receivables CAGR 2012 $57.3 2013 2014 • Majority of growth is organic • Targeted marketing programs and value propositions help to drive organic growth $52.3 $61.3 Continue to drive organi
Slide 16: Summary
15 Summary Online bank supporting growth with strong deposit generation Solid fundamentals with strong returns Attractive growth opportunities, particularly to further leverage data analytics, loyalty, mobile and e-capabilities Premier consumer finance company well-positioned to capitalize on deep p
Slide 17: Synchrony Financial: Engage with us.
s{! synchrony FINANCIAL Engage with us.
Slide 18: Appendix: Non-GAAP Reconciliations
17 Appendix: Non-GAAP Reconciliations In order to assess and internally report the revenue performance of our three sales platforms, we use measures we refer to as “platform revenue” and “platform revenue excluding retailer share arrangements.” Platform revenue is the sum of three line items in our
Slide 19: Non-GAAP Reconciliation
18 Non-GAAP Reconciliation The following table sets forth each component of our platform revenue for periods indicated below. ($ in millions) 2015 2014 Platform Revenue Total: Interest and fees on loans . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Slide 20: Common Equity Measures Reconciliation
19 COMMON EQUITY MEASURES GAAP Total common equity…………………………………………………..…….. Less: Goodwill…………………………………………………………..…….. Less: Intangible assets, net……………………………………………..…….. Tangible common equity……………………………………………………..……. Adjustments for certain deferred tax liabilities and certain items in accumulated