Synchrony Financial : Earnings Release Q1'24

For Immediate Release

Synchrony Financial (NYSE: SYF)

April 24, 2024

FIRST QUARTER 2024 RESULTS AND KEY METRICS

4.4%	12.6%	$402M	CEO COMMENTARY
Return on	CET1	Capital
Assets	Ratio	Returned
	$101.7B
	Loan Receivables

Net Earnings of $1.3 Billion or $3.14 per Diluted Share; excluding the Pets Best gain on sale, Adjusted Net Earnings of $491 million or $1.18 per Diluted Share,* which includes a reserve build for the Ally Lending acquisition of $190 million or $(0.35) per Diluted Share

Delivered Record First Quarter Purchase Volume and Strong Receivables Growth

Returned $402 Million of Capital to Shareholders, including $300 Million of Share Repurchases; Board Approved $1.0 Billion of Incremental Share Repurchase Authorization

STAMFORD, Conn. - Synchrony Financial (NYSE: SYF) today announced first quarter 2024 net earnings of $1.3 billion, or $3.14 per diluted share, compared to $601 million, or $1.35 per diluted share in the first quarter 2023. Excluding the $802 million post-tax impact of the Pets Best gain on sale, first quarter 2024 adjusted net earnings were $491 million, or $1.18 per diluted share,* which includes a reserve build for the Ally Lending acquisition of $190 million or $(0.35) per diluted share.

KEY OPERATING & FINANCIAL METRICS**

PERFORMANCE REFLECTS DIFFERENTIATED BUSINESS MODEL AND CONTINUED CONSUMER RESILIENCE

• Purchase volume increased 2% to $42.4 billion
• Loan receivables increased 12% to $101.7 billion
• Average active accounts increased 3% to 71.7 million
• New accounts decreased 8% to 4.8 million
• Net interest margin decreased 67 basis points to 14.55%
• Efficiency ratio decreased 990 basis points to 25.1% or decreased 270 basis points to 32.3% on an adjusted basis*
• Return on assets increased 210 basis points to 4.4% or decreased 60 basis points to 1.7% on an adjusted basis*
• Return on equity increased 17.4 percentage points to 35.6% or decreased 4.4 percentage points to 13.8% on an adjusted basis*
• Return on tangible common equity*** increased 21.5 percentage points to 43.6% or decreased 5.3 percentage points to 16.8% on an adjusted basis*

"Synchrony's first quarter performance highlights the resiliency of our business model and focus on delivering sustainable, strong results for each of our stakeholders," said Brian Doubles, Synchrony's President and Chief Executive Officer.

"Our differentiated model has empowered consistent performance through evolving environments, while our diversified product suite, compelling value propositions and innovative technology have continued to resonate with consumers and partners alike.

"In the quarter we also successfully completed two previously-announced transactions, which together will broaden our expansive product offerings in the market while delivering compelling risk- adjusted returns.

"We are confident that Synchrony is operating from a position of strength as we navigate the year ahead. We are excited about the opportunities we see to drive considerable long-term value as we continue to partner with hundreds of thousands of small- and mid-size businesses and health providers to help tens of millions of people access their everyday needs and wants."

CFO COMMENTARY

"Synchrony is executing on its business strategy, building on our long history of delivering steady growth at strong risk- adjusted returns through changing market conditions," said Brian Wenzel, Synchrony's Executive Vice President and Chief Financial Officer.

"Our differentiated RSA model empowers our financial resilience, while our investments in sophisticated credit management tools empower our agility as we continue to monitor conditions and take actions where necessary to reinforce our positioning for 2024 and beyond.

"In addition, as part of our capital plan, our Board approved an incremental share repurchase authorization of $1 billion and intends to maintain our regular quarterly dividend of $0.25 per share, underscoring their continued confidence in our operating performance and strong balance sheet.

"Taken together, we remain confident that our differentiated model is well positioned to continue to consistently deliver value for each of our stakeholders."

BUSINESS AND FINANCIAL RESULTS FOR THE FIRST QUARTER OF 2024**

BUSINESS HIGHLIGHTS

CONTINUED TO EXPAND PORTFOLIO, ENHANCE PRODUCTS AND EXTEND REACH

• Completed sale of Pets Best insurance to Independence Pet Holdings, providing the opportunity to build a strategic partnership with one of the leading pet- focused companies in North America.
• Completed acquisition of Ally Lending's point-of-sale financing business, creating a differentiated solution in the home improvement industry and expanding Synchrony's multi-product strategy within its Home & Auto and Health & Wellness platforms.
• Added or renewed more than 25 programs, including BRP, and new strategic technology partnerships with Adit and ServiceTitan.

FINANCIAL HIGHLIGHTS

EARNINGS DRIVEN BY CORE BUSINESS DRIVERS

• Interest and fees on loans increased 15% to $5.3 billion, driven primarily by growth in average loan receivables, lower payment rate, and higher benchmark rates.
• Net interest income increased $354 million, or 9%, to $4.4 billion, driven by higher interest and fees on loans, partially offset by an increase in interest expense from higher benchmark rates and higher funding liabilities.
• Retailer share arrangements decreased $153 million, or 17%, to $764 million, reflecting higher net charge-offs partially offset by higher net interest income.
• Provision for credit losses increased $594 million to $1.9 billion, driven by higher net charge-offs and a $190 million reserve build related to the Ally Lending acquisition.
• Other income increased $1.1 billion to $1.2 billion, driven primarily by the gain on sale of Pets Best of $1.1 billion.
• Other expense increased $87 million, or 8%, to $1.2 billion, driven primarily by growth related items and technology investments.
• Net earnings increased 115% to $1.3 billion, compared to $601 million. Excluding the $802 million after-tax gain on sale of Pets Best, adjusted net earnings declined 18% to $491 million.*

CREDIT QUALITY

CREDIT CONTINUES TO PERFORM IN LINE WITH EXPECTATIONS

• Loans 30+ days past due as a percentage of total period-end loan receivables were 4.74% compared to 3.81% in the prior year, an increase of 93 basis points and approximately 18 basis points above the average of the first quarters in 2017 through 2019.
• Net charge-offs as a percentage of total average loan receivables were 6.31% compared to 4.49% in the prior year, an increase of 182 basis points, performing within our expectations.
• The allowance for credit losses as a percentage of total period-end loan receivables was 10.72%, compared to 10.26% in the fourth quarter 2023 primarily reflecting the impact of seasonal trends.

SALES PLATFORM HIGHLIGHTS

DIVERSITY ACROSS OUR PLATFORMS CONTINUES TO PROVIDE RESILIENCE

• Home & Auto purchase volume decreased 3%, as the strong growth in Home Specialty, Auto Network, and the impact of the Ally Lending acquisition was offset by a combination of lower consumer traffic, fewer large ticket purchases, and lower gas prices as consumers continued to manage spend across their Home and Auto related needs. Period-end loan receivables increased 10%, reflecting the impacts of the Ally Lending acquisition and lower payment rates. Interest and fees on loans were up 13%, primarily driven by higher average loan receivables and higher benchmark rates. Average active accounts increased 2%.
• Digital purchase volume increased 3%, primarily reflecting continued customer engagement through growth in average active accounts. Period-end loan receivables increased 11%, driven by lower payment rates and continued purchase volume growth. Interest and fees on loans increased 15%, reflecting the impacts of higher average loan receivables, lower payment rate, higher benchmark rates and maturation of newer programs. Average active accounts increased 4%.
• Diversified & Value purchase volume increased 4%, driven by both partner and out-of-partner spend. Period-end loan receivables increased 10%, reflecting purchase volume growth and lower payment rates. Interest and fees on loans increased 13%, driven by the impacts of higher average loan receivables, lower payment rate and higher benchmark rates. Average active accounts increased 1%.
• Health & Wellness purchase volume increased 8%, reflecting broad-based growth in active accounts led by Pet, Dental, and Cosmetic. Period-end loan receivables increased 20%, driven by continued higher purchase volume and lower payment rates, and also reflects the acquisition of Ally Lending. Interest and fees on loans increased 18%, reflecting the impacts of purchase volume growth, higher average loan receivables, and lower payment rate. Average active accounts increased 11%.
• Lifestyle purchase volume decreased 4%, reflecting the impact of lower transaction values. Period-end loan receivables increased 11%, driven by strong prior period purchase volume and lower payment rates. Interest and fees on loans increased 14%, driven primarily by the impacts of higher average loan receivables, lower payment rate and higher benchmark rates. Average active accounts increased 1%.

BALANCE SHEET, LIQUIDITY & CAPITAL

FUNDING, CAPITAL & LIQUIDITY REMAIN ROBUST

• Loan receivables of $101.7 billion increased 12%; purchase volume increased 2% and average active accounts increased 3%.
• Deposits increased $9.1 billion, or 12%, to $83.6 billion and comprised 84% of funding.
• Total liquid assets and undrawn credit facilities were $24.9 billion, or 20.5% of total assets.
• The company returned $402 million in capital to shareholders, including $300 million of share repurchases and $102 million of common stock dividends.
• As of March 31, 2024 the Company had a total remaining share repurchase authorization of $300 million.
• In April, the Company's Board approved an incremental share repurchase authorization of $1.0 billion through June 30, 2025, and intends to maintain the quarterly cash dividend at its current amount of $0.25 per share of common stock. Inclusive of the $300 million remaining under its prior share repurchase program as of March 31, 2024, the Company has a total share repurchase authorization of $1.3 billion through June 30, 2025.
• The estimated Common Equity Tier 1 ratio was 12.6% compared to 13.0%, and the estimated Tier 1 Capital ratio was unchanged from the prior year at 13.8%.

• Financial measures shown on an adjusted basis are non-GAAP measures and exclude the current year amounts related to the Pets Best gain on sale, which was sold in the first quarter of 2024. See non-GAAP reconciliation in the financial tables.

• All comparisons are for the first quarter of 2024 compared to the first quarter of 2023, unless otherwise noted.
• Tangible common equity is a non-GAAP financial measure. See non-GAAP reconciliation in the financial tables.

CORRESPONDING FINANCIAL TABLES AND INFORMATION

No representation is made that the information in this news release is complete. Investors are encouraged to review the foregoing summary and discussion of Synchrony Financial's earnings and financial condition in conjunction with the detailed financial tables and information that follow, the Company's Annual Report on Form 10-K for the fiscal year ended December 31, 2023, as filed February 8, 2024, and the Company's forthcoming Quarterly Report on Form 10-Q for the quarter ended March 31, 2024. The detailed financial tables and other information are also available on the Investor Relations page of the Company's website at www.investors.synchronyfinancial.com. This information is also furnished in a Current Report on Form 8-K filed with the SEC today.

CONFERENCE CALL AND WEBCAST

On Wednesday, April 24, 2024, at 8:00 a.m. Eastern Time, Brian Doubles, President and Chief Executive Officer, and Brian Wenzel Sr., Executive Vice President and Chief Financial Officer, will host a conference call to review the financial results and outlook for certain business drivers. The conference call can be accessed via an audio webcast through the Investor Relations page on the Synchrony Financial corporate website, www.investors.synchrony.com, under Events and Presentations. A replay will also be available on the website.

ABOUT SYNCHRONY FINANCIAL

Synchrony (NYSE: SYF) is a premier consumer financial services company delivering one of the industry's most complete digitally-enabled product suites. Our experience, expertise and scale encompass a broad spectrum of industries including digital, health and wellness, retail, telecommunications, home, auto, outdoor, pet and more. We have an established and diverse group of national and regional retailers, local merchants, manufacturers, buying groups, industry associations and healthcare service providers, which we refer to as our "partners." We connect our partners and consumers through our dynamic financial ecosystem and provide them with a diverse set of financing solutions and innovative digital capabilities to address their specific needs and deliver seamless, omnichannel experiences. We offer the right financing products to the right customers in their channel of choice.

For more information, visit www.synchrony.com and Twitter: @Synchrony.

Investor Relations	Media Relations
Kathryn Miller	Lisa Lanspery
[phone]	[phone]

CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING STATEMENTS

This news release contains certain forward-looking statements as defined in Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, which are subject to the "safe harbor" created by those sections. Forward-looking statements may be identified by words such as "expects," "intends," "anticipates," "plans," "believes," "seeks," "targets," "outlook," "estimates," "will," "should," "may," "aim" or words of similar meaning, but these words are not the exclusive means of identifying forward- looking statements. Forward-looking statements are based on management's current expectations and assumptions, and are subject to inherent uncertainties, risks and changes in circumstances that are difficult to predict. As a result, actual results could differ materially from those indicated in these forward-looking statements. Factors that could cause actual results to differ materially include global political, economic, business, competitive, market, regulatory and other factors and risks, such as: the impact of macroeconomic conditions and whether industry trends we have identified develop as anticipated; retaining existing partners and attracting new partners, concentration of our revenue in a small number of partners, and promotion and support of our products by our partners; cyber-attacks or other security incidents or breaches; disruptions in the operations of our and our outsourced partners' computer systems and data centers; the financial performance of our partners; the Consumer Financial Protection Bureau's (the "CFPB") final rule on credit card late fees; the sufficiency of our allowance for credit losses and the accuracy of the assumptions or estimates used in preparing our financial statements, including those related to the CECL accounting guidance; higher borrowing costs and adverse financial market conditions impacting our funding and liquidity, and any reduction in our credit ratings; our ability to grow our deposits in the future; damage to our reputation; our ability to securitize our loan receivables, occurrence of an early amortization of our securitization facilities, loss of the right to service or subservice our securitized loan receivables, and lower payment rates on our securitized loan receivables; changes in market interest rates and the impact of any margin compression; effectiveness of our risk management processes and procedures, reliance on models which may be inaccurate or misinterpreted, our ability to manage our credit risk; our ability to offset increases in our costs in retailer share arrangements; competition in the consumer finance industry; our concentration in the U.S. consumer credit market; our ability to successfully develop and commercialize new or enhanced products and services; our ability to realize the value of acquisitions, dispositions and strategic investments; reductions in interchange fees; fraudulent activity; failure of third parties to provide various services that are important to our operations; international risks and compliance and regulatory risks and costs associated with international operations; alleged infringement of intellectual property rights of others and our ability to protect our intellectual property; litigation and regulatory actions; our ability to attract, retain and motivate key officers and employees; tax legislation initiatives or challenges to our tax positions and/or interpretations, and state sales tax rules and regulations; regulation, supervision, examination and enforcement of our business by governmental authorities, the impact of the Dodd-Frank Wall Street Reform and Consumer Protection Act and other legislative and regulatory developments and the impact of the CFPB's regulation of our business, including new requirements and constraints that the Company and the Bank will become subject to as a result of having $100 billion or more in total assets; impact of capital adequacy rules and liquidity requirements; restrictions that limit our ability to pay dividends and repurchase our common stock, and restrictions that limit the Bank's ability to pay dividends to us; regulations relating to privacy, information security and data protection; use of third-party vendors and ongoing third-party business relationships; and failure to comply with anti-money laundering and anti-terrorism financing laws.

CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING STATEMENTS (Continued)

For the reasons described above, we caution you against relying on any forward-looking statements, which should also be read in conjunction with the other cautionary statements that are included elsewhere in this news release and in our public filings, including under the heading "Risk Factors Relating to our Business" and "Risk Factors Relating to Regulation" in the Company's Annual Report on Form 10-K for the fiscal year ended December 31, 2023, filed on February 8, 2024. You should not consider any list of such factors to be an exhaustive statement of all the risks, uncertainties, or potentially inaccurate assumptions that could cause our current expectations or beliefs to change. Further, any forward-looking statement speaks only as of the date on which it is made, and we undertake no obligation to update or revise any forward-looking statement to reflect events or circumstances after the date on which the statement is made or to reflect the occurrence of unanticipated events, except as otherwise may be required by law.

NON-GAAP MEASURES

The information provided herein includes measures we refer to as "adjusted," "tangible common equity," and certain "CECL fully phased-in" capital measures, which are not prepared in accordance with U.S. generally accepted accounting principles ("GAAP"). For a reconciliation of these non-GAAP measures to the most directly comparable GAAP measures, please see the detailed financial tables and information that follow. For a statement regarding the usefulness of these measures to investors, please see the Company's Current Report on Form 8-K filed with the SEC today.

SYNCHRONY FINANCIAL
FINANCIAL SUMMARY
(unaudited, in millions, except per share statistics)
						Quarter Ended
		Mar 31,			Dec 31,			Sep 30,		Jun 30,			Mar 31,			1Q'24 vs. 1Q'23
		2024			2023			2023			2023			2023
EARNINGS
Net interest income	$	4,405	$	4,466	$	4,362		$	4,120	$	4,051	$	354	8.7 %
Retailer share arrangements		(764)			(878)			(979)			(887)			(917)			153	(16.7)%
Other income		1,157			71			92			61			65			1,092	NM
Net revenue		4,798			3,659			3,475			3,294			3,199			1,599	50.0 %
Provision for credit losses		1,884			1,804			1,488			1,383			1,290			594	46.0 %
Other expense		1,206			1,316			1,154			1,169			1,119			87	7.8 %
Earnings before provision for income taxes		1,708			539			833			742			790			918	116.2 %
Provision for income taxes		415			99			205			173			189			226	119.6 %
Net earnings	$	1,293		$	440		$	628		$	569		$	601		$	692	115.1 %
Net earnings available to common stockholders
$	1,282	$	429	$	618		$	559	$	590	$	692	117.3 %
COMMON SHARE STATISTICS
Basic EPS	$	3.17	$	1.04	$	1.49		$	1.32	$	1.36	$	1.81	133.1 %
Diluted EPS	$	3.14	$	1.03	$	1.48		$	1.32	$	1.35	$	1.79	132.6 %
Dividend declared per share	$	0.25	$	0.25	$	0.25		$	0.23	$	0.23	$	0.02	8.7 %
Common stock price	$	43.12	$	38.19	$	30.57		$	33.92	$	29.08	$	14.04	48.3 %
Book value per share	$	35.03	$	32.36	$	31.50		$	30.25	$	29.08	$	5.95	20.5 %
Tangible common equity per share(1)	$	30.36	$	27.59	$	27.18		$	25.89	$	24.71	$	5.65	22.9 %
Beginning common shares outstanding		406.9			413.8			418.1			428.4			438.2			(31.3)	(7.1)%
Issuance of common shares		-			-			-		-			-			-	NM
Stock-based compensation		2.0			0.4			0.2			0.2			1.5			0.5	33.3 %
Shares repurchased		(7.5)			(7.3)			(4.5)			(10.5)			(11.3)			3.8	(33.6)%
Ending common shares outstanding		401.4			406.9			413.8			418.1			428.4			(27.0)	(6.3)%
Weighted average common shares outstanding		404.7			411.9			416.0			422.7			434.4			(29.7)	(6.8)%
Weighted average common shares outstanding (fully diluted)		408.2			414.6			418.4			424.2			437.2			(29.0)	(6.6)%

1. Tangible Common Equity ("TCE") is a non-GAAP measure. For corresponding reconciliation of TCE to a GAAP financial measure, see Reconciliation of Non-GAAP Measures and Calculations of Regulatory Measures.

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SYNCHRONY FINANCIAL
SELECTED METRICS
(unaudited, $ in millions)
						Quarter Ended
		Mar 31,			Dec 31,			Sep 30,		Jun 30,			Mar 31,			1Q'24 vs. 1Q'23
PERFORMANCE METRICS		2024			2023			2023				2023			2023
Return on assets(1)		4.4 %			1.5 %			2.3 %				2.1 %			2.3 %				2.1 %
Return on equity(2)		35.6 %			12.4 %			18.1 %				17.0 %			18.2 %				17.4 %
Return on tangible common equity(3)		43.6 %			14.7 %			21.9 %				20.6 %			22.1 %				21.5 %
Net interest margin(4)		14.55 %			15.10 %			15.36 %				14.94 %			15.22 %				(0.67)%
Net revenue as a % of average loan receivables, including held for sale		19.11 %			14.56 %			14.33 %				14.29 %			14.29 %				4.82 %
Efficiency ratio(5)		25.1 %			36.0 %			33.2 %				35.5 %			35.0 %				(9.9)%
Other expense as a % of average loan receivables, including held for sale		4.80 %			5.24 %			4.76 %				5.07 %			5.00 %				(0.20)%
Effective income tax rate		24.3 %			18.4 %			24.6 %				23.3 %			23.9 %				0.4 %
CREDIT QUALITY METRICS
Net charge-offs as a % of average loan receivables, including held for sale		6.31 %			5.58 %			4.60 %				4.75 %			4.49 %				1.82 %
30+ days past due as a % of period-end loan receivables(6)		4.74 %			4.74 %			4.40 %				3.84 %			3.81 %				0.93 %
90+ days past due as a % of period-end loan receivables(6)		2.42 %			2.28 %			2.06 %				1.77 %			1.87 %				0.55 %
Net charge-offs	$	1,585	$	1,402	$	1,116			$	1,096	$	1,006	$	579	57.6 %
Loan receivables delinquent over 30 days(6)	$	4,820	$	4,885	$	4,304			$	3,641	$	3,474	$	1,346	38.7 %
Loan receivables delinquent over 90 days(6)	$	2,459	$	2,353	$	2,020			$	1,677	$	1,705	$	754	44.2 %
Allowance for credit losses (period-end)	$	10,905	$	10,571	$	10,176			$	9,804	$	9,517	$	1,388	14.6 %
Allowance coverage ratio(7)		10.72 %			10.26 %			10.40 %				10.34 %			10.44 %				0.28 %
BUSINESS METRICS
Purchase volume(8)	$	42,387	$	49,339	$	47,006			$	47,276	$	41,557	$	830	2.0 %
Period-end loan receivables	$	101,733	$	102,988	$	97,873			$	94,801	$	91,129	$	10,604	11.6 %
Credit cards	$	93,736	$	97,043	$	92,078			$	89,299	$	86,113	$	7,623	8.9 %
Consumer installment loans	$	5,957	$	3,977	$	3,784			$	3,548	$	3,204	$	2,753	85.9 %
Commercial credit products	$	1,912	$	1,839	$	1,879			$	1,826	$	1,690	$	222	13.1 %
Other	$	128	$	129	$	132			$	128	$	122	$	6	4.9 %
Average loan receivables, including held for sale	$	100,957	$	99,683	$	96,230			$	92,489	$	90,815	$	10,142	11.2 %
Period-end active accounts (in thousands)(9)		70,754			73,484			70,137				70,269			68,589			2,165	3.2 %
Average active accounts (in thousands)(9)		71,667			71,526			70,308				69,517			69,494			2,173	3.1 %
LIQUIDITY
Liquid assets
Cash and equivalents	$	20,021	$	14,259	$	15,643			$	12,706	$	15,303	$	4,718	30.8 %
Total liquid assets	$	21,929	$	16,808	$	17,598			$	16,448	$	18,778	$	3,151	16.8 %
Undrawn credit facilities
Undrawn credit facilities	$	2,950	$	2,950	$	2,950			$	2,950	$	2,950	$	-	- %
Total liquid assets and undrawn credit facilities(10)	$	24,879	$	19,758	$	20,548			$	19,398	$	21,728	$	3,151	14.5 %
Liquid assets % of total assets		18.10 %			14.31 %			15.58 %				15.13 %			17.41 %				0.69 %
Liquid assets including undrawn credit facilities % of total assets		20.53 %			16.82 %			18.19 %				17.85 %			20.15 %				0.38 %

1. Return on assets represents net earnings as a percentage of average total assets.
2. Return on equity represents net earnings as a percentage of average total equity.
3. Return on tangible common equity represents net earnings available to common stockholders as a percentage of average tangible common equity. Tangible common equity ("TCE") is a non-GAAP measure. For corresponding reconciliation of TCE to a GAAP financial measure, see Reconciliation of Non-GAAP Measures and Calculations of Regulatory Measures.
4. Net interest margin represents net interest income divided by average interest-earning assets.
5. Efficiency ratio represents (i) other expense, divided by (ii) net interest income, plus other income, less retailer share arrangements.
6. Based on customer statement-end balances extrapolated to the respective period-end date.
7. Allowance coverage ratio represents allowance for credit losses divided by total period-end loan receivables.
8. Purchase volume, or net credit sales, represents the aggregate amount of charges incurred on credit cards or other credit product accounts less returns during the period.
9. Active accounts represent credit card or installment loan accounts on which there has been a purchase, payment or outstanding balance in the current month.
10. Excludes available borrowing capacity related to unencumbered assets.

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SYNCHRONY FINANCIAL
STATEMENTS OF EARNINGS
(unaudited, $ in millions)
					Quarter Ended
	Mar 31,		Dec 31,			Sep 30,		Jun 30,		Mar 31,			1Q'24 vs. 1Q'23
		2024			2023			2023			2023			2023
Interest income:
Interest and fees on loans	$	5,293	$	5,323	$	5,151	$	4,812	$	4,616	$	677	14.7 %
Interest on cash and debt securities		275			226			203			209			170			105	61.8 %
Total interest income		5,568			5,549			5,354			5,021			4,786			782	16.3 %
Interest expense:
Interest on deposits		954			878			800			717			557			397	71.3 %
Interest on borrowings of consolidated securitization entities		105			99			86			78			77			28	36.4 %
Interest on senior unsecured notes		104			106			106			106			101			3	3.0 %
Total interest expense		1,163			1,083			992			901			735			428	58.2 %
Net interest income
	4,405			4,466			4,362			4,120			4,051			354	8.7 %
Retailer share arrangements		(764)			(878)			(979)			(887)			(917)			153	(16.7)%
Provision for credit losses		1,884			1,804			1,488			1,383			1,290			594	46.0 %
Net interest income, after retailer share arrangements		1,757			1,784			1,895			1,850			1,844			(87)	(4.7)%
and provision for credit losses
Other income:
Interchange revenue		241			270			267			262			232			9	3.9 %
Protection product revenue		141			139			131			125			115			26	22.6 %
Loyalty programs		(319)			(369)			(358)			(345)			(298)			(21)	7.0 %
Other		1,094			31			52			19			16			1,078	NM
Total other income		1,157			71			92			61			65			1,092	NM
Other expense:
Employee costs		496			538			444			451			451			45	10.0 %
Professional fees		220			228			219			209			186			34	18.3 %
Marketing and business development		125			138			125			133			131			(6)	(4.6)%
Information processing		186			190			177			179			166			20	12.0 %
Other		179			222			189			197			185			(6)	(3.2)%
Total other expense		1,206			1,316			1,154			1,169			1,119			87	7.8 %
Earnings before provision for income taxes
	1,708			539			833			742			790			918	116.2 %
Provision for income taxes		415			99			205			173			189			226	119.6 %
Net earnings	$	1,293		$	440		$	628		$	569		$	601		$	692	115.1 %
Net earnings available to common stockholders
$	1,282		$	429		$	618		$	559		$	590		$	692	117.3 %

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SYNCHRONY FINANCIAL
STATEMENTS OF FINANCIAL POSITION
(unaudited, $ in millions)
							Quarter Ended
		Mar 31,			Dec 31,			Sep 30,			Jun 30,			Mar 31,			Mar 31, 2024 vs.
		2024			2023			2023			2023			2023			Mar 31, 2023
Assets
Cash and equivalents	$	20,021	$	14,259	$	15,643	$	12,706	$	15,303	$	4,718	30.8 %
Debt securities		3,005			3,799			2,882			4,294			4,008			(1,003)	(25.0)%
Loan receivables:
Unsecuritized loans held for investment		81,642			81,554			78,470			75,532			72,079			9,563	13.3 %
Restricted loans of consolidated securitization entities		20,091			21,434			19,403			19,269			19,050			1,041	5.5 %
Total loan receivables		101,733			102,988			97,873			94,801			91,129			10,604	11.6 %
Less: Allowance for credit losses		(10,905)			(10,571)			(10,176)			(9,804)			(9,517)			(1,388)	14.6 %
Loan receivables, net		90,828			92,417			87,697			84,997			81,612			9,216	11.3 %
Goodwill		1,073			1,018			1,105			1,105			1,105			(32)	(2.9)%
Intangible assets, net		800			815			680			717			768			32	4.2 %
Other assets		5,446			4,915			4,932			4,878			5,057			389	7.7 %
Assets held for sale		-			256			-			-			-			-	NM
Total assets	$	121,173	$	117,479	$	112,939	$	108,697	$	107,853	$	13,320	12.4 %
Liabilities and Equity
Deposits:
Interest-bearing deposit accounts	$	83,160	$	80,789	$	77,669	$	75,344	$	74,008	$	9,152	12.4 %
Non-interest-bearing deposit accounts		394			364			397			421			417			(23)	(5.5)%
Total deposits		83,554			81,153			78,066			75,765			74,425			9,129	12.3 %
Borrowings:
Borrowings of consolidated securitization entities		8,016			7,267			6,519			5,522			6,228			1,788	28.7 %
Senior and Subordinated unsecured notes		8,117			8,715			8,712			8,709			8,706			(589)	(6.8)%
Total borrowings		16,133			15,982			15,231			14,231			14,934			1,199	8.0 %
Accrued expenses and other liabilities		6,204			6,334			5,875			5,321			5,301			903	17.0 %
Liabilities held for sale		-			107			-			-			-			-	NM
Total liabilities		105,891			103,576			99,172			95,317			94,660			11,231	11.9 %
Equity:
Preferred stock		1,222			734			734			734			734			488	66.5 %
Common stock		1			1			1			1			1			-	- %
Additional paid-in capital		9,768			9,775			9,750			9,727			9,705			63	0.6 %
Retained earnings		19,790			18,662			18,338			17,828			17,369			2,421	13.9 %
Accumulated other comprehensive income (loss)		(69)			(68)			(96)			(96)			(102)			33	(32.4)%
Treasury stock		(15,430)			(15,201)			(14,960)			(14,814)			(14,514)			(916)	6.3 %
Total equity		15,282			13,903			13,767			13,380			13,193			2,089	15.8 %
Total liabilities and equity	$	121,173	$	117,479	$	112,939	$	108,697	$	107,853	$	13,320	12.4 %

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