Synchrony Financial · NYSE:SYF
Synchrony Financial — Q1 2018 Earnings Presentation
12 slides from Synchrony Financial's earnings presentation, Apr 20, 2018
Slide 1: 1Q'18 Financial Results
1Q’18 Financial Results April 20, 2018 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: 1Q'18 Highlights
3 1Q’18 Highlights • $640 million Net Earnings, $0.83 diluted EPS • Continued growth across the business ‒ Loan Receivables up 6% ‒ Net Interest Income up 7% ‒ Purchase Volume up 3% ‒ Average Active Accounts up 2% • Net Charge-Offs 6.14% compared to 5.33% in the prior year • Provision for Loan Losse
Slide 4: Growth Metrics
4 Growth Metrics +3%Purchase Volume $ in billions Loan Receivables $ in billions Average Active Accounts in millions 1Q'17 1Q'18 $28.9 $29.6 $73.3 $77.9 $3,87771.369.6 +2% +8% +6% 1Q'17 1Q'18 1Q'17 1Q'18 1Q'17 1Q'18 $4,172 Interest and Fees on Loans $ in millions
Slide 5: Platform Results
5 Platform Results Retail Card Loan Receivables, $ in billions $49.9 $52.6 1Q'17 1Q'18 Payment Solutions Loan Receivables, $ in billions $15.3 $16.5 1Q'17 1Q'18 CareCredit Loan Receivables, $ in billions $8.1 $8.8 1Q'17 1Q'18 Purchase Volume Accounts $23.0 55.0 $23.4 55.9 +2% +2% $3.6 9.1 $3.8 9.5 +
Slide 6: Financial Results Summary
6 • $640 million Net Earnings, $0.83 diluted EPS • Net Interest Income up 7% driven by growth in Loan Receivables − Interest and Fees on Loans up 8% driven by average Loan Receivables growth − Interest Expense increase driven by benchmark movement and increased competition, growth and pre-funding fo
Slide 7: Net Interest Income
7 Net Interest Income 16.18% 16.05% Net Interest Income $ in millions, % of average Interest-Earning Assets 1Q'17 1Q'18 +7% 1Q'18 Highlights • Net Interest Income increased 7% compared to prior year driven by growth in Loan Receivables − Interest and Fees on Loans increased 8% compared to prior year
Slide 8: Asset Quality Metrics
8 Asset Quality Metrics 1Q'16 2Q'16 3Q'16 4Q'16 1Q'17 2Q'17 3Q'17 4Q'17 1Q'18 Allowance For Loan Losses $ in millions, % of period-end Loan Receivables 1Q'16 2Q'16 3Q'16 4Q'16 1Q'17 2Q'17 3Q'17 4Q'17 1Q'18 1Q'16 2Q'16 3Q'16 4Q'16 1Q'17 2Q'17 3Q'17 4Q'17 1Q'18 Net Charge-Offs $ in millions, % of aver
Slide 9: Other Expense
9 Other Expense Other Expense $ in millions Employee Costs $323 $358 $35 11% Professional Fees 151 166 15 10% Marketing/BD 94 121 27 29% Information Processing 90 104 14 16% Other 250 239 (11) (4)% Other Expense $908 $988 $80 9% Efficiency 30.3% 30.9% 0.6pts. $908 V$ V% +9% (a) $988 1Q'17 1Q'18 (a)
Slide 10: Funding, Capital and Liquidity
10 Capital Ratios Common equity Tier 1 % - Basel III fully phased-in Funding, Capital and Liquidity Funding Sources $ in billions 1Q'17 1Q'18 Variance Deposits 72% 73% +1pts. Securitization 17% 16% (1)pts. Unsecured 11% 11% - pts. $71.8 $77.6 Deposits Securitization Unsecured $51.6 $12.4 $7.8 $56.6
Slide 11: 1Q'18 Wrap Up
11 1Q’18 Wrap Up • Net earnings of $640 million … $0.83 diluted earnings per share • Broad based growth … Purchase volume +3%, Loan receivables +6%, Net interest income +7% • Added new partnerships … Crate and Barrel, jtv, and Mahindra • Expanded our CareCredit network with American Med Spa Associat
Slide 12: Engage with us
|! synchrony FINANCIAL Engage with us.