Synchrony Financial · NYSE:SYF
Synchrony Financial — Q2 2025 Earnings Presentation
14 slides from Synchrony Financial's earnings presentation, Jul 22, 2025
Slide 1: Second Quarter 2025 Financial Results
SECOND QUARTER 2025 FINANCIAL RESULTS July 22, 2025
Slide 2: Disclaimers
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 and should be read in conjunction with the earnings release and financial supplement included as exhib
Slide 3: Delivering consistent execution through environments
Delivering consistent execution through environments Strategic highlights New physical PayPal Credit Card powered by Synchrony meets growing demand of customers looking to take PayPal Credit everywhere Access to 6-month promotional financing on qualifying purchases when you check out with PayPal, as
Slide 4: Second quarter in review
Second quarter in review Growth Results Capital & Shareholder Value Purchase volume (2)% 1 Dual Card / Co-Brand : $20.6bn, +5% Net interest margin 14.78% Common Equity Tier 1 (CET1) capital ratio4 13.6% 12.6% PY: 14.46% $46.8bn $46.1bn 2Q'24 3Q'24 4Q'24 1Q'25 2Q'25 Net charge-offs 5.70% Capital retu
Slide 5: Financial results
Financial results Results ($mm, except per share statistics) By Platform ($bn) 2Q'25 2Q'24 B / (W) 2Q'25 2Q'24 B / (W)1 Interest income $5,586 $5,582 —% Home & Auto2 Loan receivables $30.4 $32.6 (7)% Interest expense 1,065 1,177 10% Purchase volume $11.5 $12.4 (7)% Net interest income 4,521 4,405 3%
Slide 6: Net revenue
Net revenue Results ($mm) Highlights 2Q'24 2Q'25 B / (W) • Net revenue decreased 2%, or $65 million Net revenue $3,712 $3,647 (2)% – Net interest income increased 3%, or $116 million ▪ Loan receivables yield of 21.54%, up 53 bps primarily driven by the impact of our PPPCs1, partially offset by lower
Slide 7: Other expense
Other expense Results ($mm) Highlights 2Q'24 2Q'25 B / (W) • Other expense increased 6%, or $68 million Other expense $1,177 $1,245 (6)% – Increase primarily driven by Employee costs partially offset by lower operational losses and preparatory expenses related to the Late Fee rule in the prior year
Slide 8: Credit
Credit Highlights • Provision for credit losses decreased 32%, or $545 million, driven by a reserve release of $265 million versus a reserve build of $70 million in the prior year and lower Net charge-offs of $210 million Credit trends1 30+ days past due Net charge-offs $mm, % of period-end loan rec
Slide 9: Funding, capital and liquidity
Funding, capital and liquidity Funding and liquidity ($bn) Capital ratios1 2Q'24 2Q'25 % total CET1 capital ratio Tier 1 capital ratio Total funding $98.7 $98.3 100% 12.6% 13.6% 13.8% 14.8% Unsecured $8.1 $7.7 8% 2Q'24 2Q'25 2Q'24 2Q'25 Secured $7.5 $8.3 8% Tier 1 capital + credit loss Total capital
Slide 10: Baseline outlook
Baseline outlook Baseline economic assumptions: • No deterioration in macroeconomic environment, • Includes minor modifications to PPPCs • Walmart/OnePay launch during Fall 2025 and no changes to consumer behavior from tariffs FY 2025 FY 2025 Key drivers (1Q'25 Update) Revised Commentary Period-end
Slide 11: |! synchrony
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Slide 12: Transaction related activity and other notable items
Transaction related activity and other notable items The following table sets forth transaction related activity and other notable items incurred during the periods indicated below. $ in millions Quarter Ended June 30 2025 2024 Transaction related activity Provision for credit losses - transaction r
Slide 13: Non-GAAP reconciliation
Non-GAAP reconciliation The following table sets forth a reconciliation between GAAP results and non-GAAP adjusted results. $ in millions, except per share data 2Q'25 1Q'25 4Q'24 3Q'24 2Q'24 Tangible common equity: GAAP Total equity $16,952 $16,581 $16,580 $15,980 $15,540 Less: Preferred stock (1,22
Slide 14: Non-GAAP reconciliation (continued)
Non-GAAP reconciliation (continued) The following table sets forth the components of our Tier 1 Capital + Reserves ratio for the periods indicated below. $ in millions At June 30 2025 1 2024 Tier 1 Capital $15,025 $14,290 Less: CECL transition adjustment — (573) Tier 1 capital (CECL fully phased-in)