Synchrony Financial · NYSE:SYF
Synchrony Financial — Q3 2018 Earnings Presentation
12 slides from Synchrony Financial's earnings presentation, Oct 19, 2018
Slide 1: 3Q'18 Financial Results
Exhibit 99.3 3Q’18 Financial Results October 19, 2018
Slide 2: Disclaimers: Cautionary Statement Regarding Forward-Looking Statements
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: 3Q'18 Highlights
3Q’18 Highlights Financial Highlights Business Highlights • $671 million Net Earnings, $0.91 diluted EPS Renewed and extended key relationships • Completed acquisition of the U.S. PayPal Credit financing program in July • Strong growth metrics ‒ Loan Receivables up 14% ‒ Net Interest Income up 9% ‒
Slide 4: Growth Metrics
Growth Metrics Purchase Volume +11% Loan Receivables +14% $ in billions $ in billions $36.4 $87.5 $32.9 $76.9 3Q'17 3Q'18 3Q'17 3Q'18 Average Active Accounts +9% Interest and Fees on Loans +10% $ in millions in millions 75.5 69.3 $4,617 $4,182 3Q'17 3Q'18 3Q'17 3Q'18 4
Slide 5: Platform Results
Platform Results(a) Retail Card Payment Solutions CareCredit Loan Receivables, $ in billions Loan Receivables, $ in billions Loan Receivables, $ in billions +16% +9% +8% $9.3 $60.6 $17.6 $8.7 $52.0 $16.2 3Q'17 3Q'18 V% 3Q'17 3Q'18 V% 3Q'17 3Q'18 V% Purchase Volume $26.3 $29.2 +11% $4.2 $4.6 +10% $2.
Slide 6: Financial Results Summary
Financial Results Summary Earnings Statement 3Q'18 Highlights B/(W) • $671 million Net Earnings, $0.91 diluted EPS $ in millions, except ratios 3Q'18 3Q'17 $ % • Net Interest Income up 9% driven by growth in Total Interest Income $4,694 $4,233 $461 11% Loan Receivables Total Interest Expense 488 357
Slide 7: Net Interest Income
Net Interest Income Net Interest Income $ in millions, % of average Interest-Earning Assets 3Q'18 Highlights +9% • Net Interest Income increased 9% compared to prior year driven by growth in Loan $4,206 Receivables $3,876 − Interest and Fees on Loans increased 10% compared to prior year driven by av
Slide 8: 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 $4,021 $3,694 $3,831 $3,521 $1,198 $1,159 $3,295 $3,293 $1,141 $1,087 $3,120 $3,208 $3,008 $974 $1,001 $950 $847 $765 6.14% 5.9
Slide 9: Other Expense
Other Expense Other Expense $ in millions +10% 3Q'18 Highlights $1,054 $958 • Other Expense up 10% ‒ Other Expense increase driven primarily by PayPal Credit program acquisition and growth • Efficiency Ratio 31.0% vs. 30.4% prior year 3Q'17 3Q'18 V$ V% Employee Costs $333 $365 $32 10% Professional F
Slide 10: Funding, Capital and Liquidity
Funding, Capital and Liquidity Funding Sources Capital Ratios $ in billions Common equity Tier 1 % - Basel III fully phased-in $86.1 V$ 17.2% (a) 14.2% $74.4 $9.6 +$1.6 Unsecured $8.0 $14.2 +$2.3 Securitization $11.9 3Q'17 3Q'18 $62.3 +$7.8 (a) Estimated percentage Deposits $54.5 Liquidity(b) $ in b
Slide 11: 3Q'18 Wrap Up
3Q’18 Wrap Up • Net earnings of $671 million … $0.91 diluted earnings per share • Broad based growth … Purchase volume +11%, Loan receivables +14%, Net interest income +9% • Renewed key partners … Lowe’s, JCPenney, Associated Materials and Generac • Signed new partnerships with Fred Meyer Jewelers a
Slide 12: Engage with us.
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