Slide 1: 3Q'16 Financial Results
3Q’16 Financial Results October 21, 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: 3Q'16 Highlights
3 3Q'16 Highlights Financial highlights • $604 million Net earnings, $0.73 diluted EPS • Purchase volume +8%, Loan receivables +11%, Net interest income +12% • Net charge-offs at 4.38% compared to 4.02% in the prior year 30+ delinquency at 4.26% compared to 4.02% in the prior year • Expenses +2% .
Slide 4: Growth Metrics
4 Growth Metrics 3Q'15 3Q'16 3Q'15 3Q'16 +8% Purchase volume $ in billions Loan receivables $ in billions Average active accounts in millions Interest and fees on loans $ in millions $29.2 $31.6 $63.5 $70.6 $3,771 $3,379 66.6 62.2 +7% +12% +11% 3Q'15 3Q'16 3Q'15 3Q'16
Slide 5: Platform Results
5 Platform Results Retail Card Loan receivables, $ in billions $43.4 $48.0 3Q'15 3Q'16 Strong receivable growth across partner programs Interest and fees on loans up 11% driven by receivable growth Payment Solutions Loan receivables, $ in billions $12.9 $14.8 3Q'15 3Q'16 Broad receivable growt
Slide 6: Financial Results Summary
6 Financial Results Summary earnings statement Third quarter 2016 highlights $ in millions, except ratios Total interest income $3,796 $3,392 $404 12% Total interest expense (315) (289) (26) (9)% Net interest income (NII) 3,481 3,103 378 12% Retailer share arrangements (RSA) (757) (723) (34) (5)% NI
Slide 7: Net Interest Income
7 Net Interest Income Third quarter 2016 highlights • Net interest income increased 12% compared to prior year driven by growth in receivables Interest and fees on loans increased 12% compared to prior year driven by loan receivable growth • Net interest margin up 30bps. Loan receivables mix as
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 $2,772 $2,416 $579 $2,536 $663 $2,209 $668 $2,171 $693 $633 $2,553 $697 4.05% 4.32% 4.53% 4.63% 4.02% 4.23% Allowance for loa
Slide 9: Other Expense
9 Other expense $ in millions Other Expense Employee costs $268 $311 $43 16% Professional fees 162 174 12 7% Marketing/BD 115 92 (23) (20)% Information processing 77 87 10 13% Other 221 195 (26) (12)% Other expense $843 $859 $16 2% Efficiency 34.2% 30.6% (3.6)pts. $843 (a) “Other Expense” divided by
Slide 10: Funding, Capital and Liquidity
10 Funding, Capital and Liquidity (c) Liquid assets $15.3 $16.4 Undrawn credit facilities 6.6 7.1 Total liquidity $21.9 $23.5 % of total assets 27.6% 27.0% Common equity Tier 1 $12.9 $12.6 Risk-weighted assets $70.7 $70.4 Liquidity $ in billions 3Q'16 $23.5 $21.9 3Q'15 Capital ratios 3Q'16, $ in bil
Slide 11: 3Q'16 Wrap Up
11 3Q'16 Wrap Up • Net earnings of $604 million … $0.73 earnings per diluted share • Broad based growth … Purchase volume +8%, Loan receivables +11%, Net interest income +12% • Renewed key partners … TJX Companies, hhgregg, American Dental Association, and Nationwide Marketing Group • Signed new par
Slide 12: Synchrony Financial: Engage with us.
s{! synchrony FINANCIAL Engage with us.
Slide 13: Appendix
13 Appendix
Slide 14: Non-GAAP Reconciliation
14 Non-GAAP Reconciliation We present certain capital ratios. Our Basel III Tier 1 common ratio, calculated on a fully phased-in basis, is a preliminary estimate reflecting management’s interpretation of the final Basel III capital rules adopted in July 2013 by the Federal Reserve Board, which have
Slide 15: Non-GAAP Reconciliation
15 Non-GAAP Reconciliation The following table sets forth a reconciliation of each component of our capital ratios to the comparable GAAP component at September 30, 2016. COMMON EQUITY MEASURES GAAP Total common equity .................................................................................