Synchrony Financial · NYSE:SYF
Synchrony Financial — Q1 2025 Earnings Presentation
15 slides from Synchrony Financial's earnings presentation, Apr 22, 2025
Slide 1: First Quarter 2025 Financial Results
FIRST QUARTER 2025 FINANCIAL RESULTS April 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 New and renewed partnerships Recognition RANKED #2 BEST COMPANIES TO WORK FOR IN THE U.S. ©2025 Fortune Media IP Limited. All rights reserved. Used under license. Customer engagement1 69mm average active accounts $41bn purchase volume $100bn loan
Slide 4: First quarter in review
First quarter in review Growth Results Capital & Shareholder Value Purchase volume (4)% 1 Dual Card / Co-Brand : $18.4bn, +2% Net interest margin 14.74% Common Equity Tier 1 (CET1) capital ratio4 12.6% 13.2% PY: 14.55% $42.4bn $40.7bn 1Q'24 2Q'24 3Q'24 4Q'24 1Q'25 Net charge-offs 6.38% Capital retur
Slide 5: Financial results
Financial results Results ($mm, except per share statistics) By Platform ($bn) 1Q'25 1Q'24 B / (W) 1Q'25 1Q'24 B / (W)2 Interest income $5,550 $5,568 —% Home & Auto Loan receivables $30.5 $32.6 (7)% Interest expense 1,086 1,163 7% Purchase volume $9.6 $10.5 (9)% Net interest income 4,464 4,405 1% In
Slide 6: Net revenue
Net revenue Results ($mm) Highlights 1Q'24 1Q'25 B / (W) • Net revenue decreased 23%, or $1.1 billion primarily reflecting Pets Best gain on sale in prior year Net revenue $4,798 $3,718 (23)% – Net interest income increased 1%, or $59 million $1,157 ▪ Loan receivables yield of 21.33%, up 24 bps prim
Slide 7: Other expense
Other expense Results ($mm) Highlights 1Q'24 1Q'25 B / (W) • Other expense increased 3%, or $37 million Other expense $1,206 $1,243 (3)% – Increase primarily driven by costs related to technology investments in Information processing – Increase also includes a charitable contribution in Other and an
Slide 8: Credit
Credit Highlights • Provision for credit losses decreased 21%, or $393 million, driven by a reserve release of $97 million versus a reserve build of $299 million in the prior year which included a $190 million reserve build related to the Ally Lending acquisition Credit trends 30+ days past due Net
Slide 9: Funding, capital and liquidity
Funding, capital and liquidity Funding and liquidity ($bn) Capital ratios1 1Q'24 1Q'25 % total CET1 capital ratio Tier 1 capital ratio Total funding $99.7 $100.4 100% 12.6% 13.2% 13.8% 14.4% Unsecured $8.1 $8.4 8% 1Q'24 1Q'25 1Q'24 1Q'25 Secured $8.0 $8.6 9% Tier 1 capital + credit loss Total capita
Slide 10: Baseline outlook
Baseline outlook Baseline economic assumptions: • No deterioration in macroeconomic environment • No changes to PPPCs already implemented • No impact to consumer behavior from tariffs FY 2025 FY 2025 Key drivers Commentary Original Revised Period-end loan Low single digit • Purchase volume growth re
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 notable Other expense items incurred during the periods indicated below. $ in millions Quarter Ended March 31 2025 2024 Transaction related activity Disposition of Pets Best: Total Ot
Slide 13: Non-GAAP reconciliation
Non-GAAP reconciliation* The following table sets forth the components of our Tier 1 Capital + Reserves ratio for the periods indicated below. $ in millions At March 31 2025 2024 Tier 1 Capital $14,668 $14,207 Less: CECL transition adjustment — (573) Tier 1 capital (CECL fully phased-in) $14,668 $13
Slide 14: Non-GAAP reconciliation (continued)
Non-GAAP reconciliation (continued) The following table sets forth a reconciliation between GAAP results and non-GAAP adjusted results. $ in millions 1Q'25 4Q'24 3Q'24 2Q'24 1Q'24 Tangible common equity ($ in millions): GAAP Total equity $16,581 $16,580 $15,980 $15,540 $15,282 Less: Preferred stock
Slide 15: Non-GAAP reconciliation (continued)
Non-GAAP reconciliation (continued) The following table sets forth a reconciliation between GAAP results and non-GAAP adjusted results. $ in millions Quarter Ended March 31, 2024 Net earnings: Net earnings $1,293 Less: Pets Best gain on sale after-tax (802) Adjusted Net earnings $491 Preferred divid