Slide 1: 2Q'15 Financial Results
2Q’15 Financial Results July 17, 2015 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: 2Q'15 Highlights
3 2Q'15 Highlights Financial highlights • $541 million Net earnings, $0.65 EPS • Strong growth across the business Purchase volume +11%, Loan receivables +12%, Platform revenue +9% • Asset quality continues to improve Net charge-offs improved from 4.88% to 4.63% compared to prior year 30+ deli
Slide 4: Growth Metrics
4 Growth Metrics +11% Purchase volume $ in billions Loan receivables $ in billions Active accounts Average active accounts in millions Platform revenue $ in millions 2Q'14 2Q'15 $26.0 $28.8 $54.9 $61.4 $2,665 $2,442 60.9 58.4 +4% +9% +12% 2Q'14 2Q'15 2Q'14 2Q'15 2Q'14 2Q'15
Slide 5: Platform Results
5 Platform Results Retail Card Loan receivables, $ in billions $37.3 $42.3 2Q'14 2Q'15 Strong receivable growth across partner programs Platform revenue up 10% driven by receivable growth Payment Solutions Loan receivables, $ in billions $11.0 $12.2 2Q'14 2Q'15 Receivable growth led by home fu
Slide 6: Financial Results Summary
6 Financial Results Summary earnings statement Second quarter 2015 highlights $ in millions, except ratios Total interest income $3,177 $2,926 $251 9% Total interest expense 270 206 (64) (31)% Net interest income (NII) 2,907 2,720 187 7% Retailer share arrangements (RSA) (621) (590) (31) (5)% NII, a
Slide 7: Net Interest Income
7 Net Interest Income Second quarter 2015 highlights • Net interest income up 7% driven by growth in receivables partially offset by higher funding costs Interest and fees on loans up 8% driven by loan receivable growth • Net interest margin decline driven primarily by increase in liquidity Liqu
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 Allowance for loan losses $ in millions, % of period-end loan receivables 90+ days past due $ in millions, % of period-end lo
Slide 9: Other Expense
9 Other expense $ in millions Other Expense Employee cost $207 $250 $43 21% Professional fees 145 156 11 8% Marketing/BD 97 108 11 11% Information processing 53 74 21 40% Other 295 217 (78) (26)% Other expense $797 $805 $8 1% Efficiency 35.5% 33.5% (2.0)pts. $797 • Expense increase primarily driven
Slide 10: Funding, Capital and Liquidity
10 Funding, Capital and Liquidity (c) Liquid assets $6.1 $13.7 Undrawn securitization capacity 5.7 6.1 Total liquidity $11.8 $19.8 % of total assets 18.6% 26.1% Tier 1 common $10.7 $10.3 Risk-weighted assets $62.0 $63.0 Liquidity $ in billions 2Q'15 $19.8 $11.8 2Q'14 Capital ratios 2Q'15, $ in billi
Slide 11: 2Q'15 Wrap Up
11 2Q’15 Wrap Up • Net earnings of $541 million … $0.65 earnings per share • Broad based growth … Purchase volume +11%, Loan receivables +12%, Platform revenue +9% • Wallet strategy taking hold ... Launched BP Dual Card in Apple Pay and will be one of the first issuers to offer PLCC cards in Apple P
Slide 12: Synchrony Financial - Engage with us.
s{! synchrony FINANCIAL Engage with us.
Slide 13: Appendix
Appendix i]! synchrony 13
Slide 14: Non GAAP Reconciliations
14 Non GAAP Reconciliations In order to assess and internally report the revenue performance of our three sales platforms, we use measures we refer to as “platform revenue” and “platform revenue excluding retailer share arrangements.” Platform revenue is the sum of three line items in our Condensed
Slide 15: Non-GAAP Reconciliation
15 Non-GAAP Reconciliation The following table sets forth each component of our platform revenue for periods indicated below. ($ in millions) 2015 2014 Platform Revenue Total: Interest and fees on loans . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Slide 16: Common Equity Measures
16 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