Latest news with #SynchronyFinancial
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6 days ago
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Synchrony Financial (SYF) Q2 2025 Earnings Call Highlights: Strong Earnings Amidst Strategic ...
Net Earnings: $967 million or $2.50 per diluted share. Return on Average Assets: 3.2%. Return on Tangible Common Equity: 28.3%. Purchase Volume: $46 billion, with dual and co-branded cards accounting for 45%. Net Revenue: Decreased 2% to $3.6 billion. Net Interest Income: Increased 3% to $4.5 million. Net Interest Margin: Increased 32 basis points to 14.78%. Provision for Credit Losses: Decreased $545 million to $1.1 billion. 30-plus Delinquency Rate: 4.18%, a decrease of 29 basis points from the prior year. Net Charge-off Rate: 5.70%, a decrease of 72 basis points from the prior year. Allowance for Credit Losses: 10.59% of loan receivables. Deposits: Decreased by approximately $310 million. CET1 Ratio: 13.6%, 100 basis points higher than last year. Shareholder Returns: $614 million, including $500 million in share repurchases and $114 million in dividends. Warning! GuruFocus has detected 10 Warning Signs with RTX. Release Date: July 22, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Positive Points Synchrony Financial (NYSE:SYF) reported strong financial performance with net earnings of $967 million or $2.50 per diluted share. The company achieved a return on average assets of 3.2% and a return on tangible common equity of 28.3%. Synchrony Financial (NYSE:SYF) added or renewed more than 15 partners, including Walmart and Amazon, enhancing its strategic partnerships. The company launched new products with two of its top 5 partners and announced a new partnership with a previous top 5 partner. Synchrony Financial (NYSE:SYF) is investing in technology and innovation, including a new partnership with OnePay to launch a credit card program with Walmart. Negative Points Purchase volume decreased by 2% year-over-year, reflecting the impact of previous credit actions and selective consumer spending behavior. Ending loan receivables decreased by 2% to $100 billion due to lower purchase volume and higher payment rates. Net revenue decreased by 2% to $3.6 billion, primarily due to higher RSAs driven by program performance. The payment rate increased, impacting the mix of promotional financing loan receivables, which generally carry a lower payment rate. Synchrony Financial (NYSE:SYF) faces an uncertain macroeconomic environment, which could impact future growth and performance. Q & A Highlights Q: Brian, you noted some encouraging signs in the portfolio and mentioned selectively unwinding some credit actions. Can you elaborate on these signs and actions? Also, with Walmart and Amazon partnerships, do you see a path back to mid- to high single-digit growth? A: Brian Doubles, President and CEO, responded that the consumer remains in good shape, with strong spending and better-than-expected credit performance. Co-brand growth was up 5% versus the prior year, and there are positive trends in retail, cosmetics, and electronics. Synchrony started to open up credit selectively in the health and wellness space and is optimistic about further growth in the second half. The launch of Walmart OnePay, Pay Later at Amazon, and PayPal's physical card are expected to drive growth into 2026. Q: On the outlook, you mentioned minor modifications to PPPC. Can you discuss how these discussions with partners have gone and what modifications have been made? A: Brian Doubles explained that any rollbacks are partner-specific, with no major rollback plan in place. Discussions with partners are minimal, with only a few changes impacting less than $50 million in net revenue. These are normal pricing discussions aimed at driving sales and growth at attractive returns. Brian Wenzel, CFO, added that discussions have focused on promotional financing, with some partners shortening durations to manage costs. Q: Regarding the NIM guide for the second half of 15.6%, what are the drivers for this increase, and can you reach the pre-pandemic average of 16% NIM? A: Brian Wenzel stated that the increase is driven by a higher percentage of average loan receivables, the impact of PPPC on loan yield, and lower interest expense as CD books reprice. The pre-pandemic NIM of 16% is achievable as promotional financing decreases and credit aperture normalizes, with PPPC contributing to higher yields. Q: On loan growth, is it fair to assume that growth expansion from loosening credit standards and Walmart's contribution are not fully baked into guidance? A: Brian Doubles confirmed that while credit standards have started to loosen, it takes time for these actions to impact growth metrics. Most benefits, including Walmart OnePay and Pay Later, will be reflected in 2026. Brian Wenzel added that positive trends in purchase volume and green shoots in various platforms support a positive outlook for 2026. Q: Can you discuss the impact of new products with existing large customers and how they contribute to growth? A: Brian Doubles highlighted the Pay Later launch at Amazon and the renewal of long-term partnerships as key growth drivers. The multiproduct strategy allows Synchrony to offer tailored products to customers, enhancing growth opportunities. These initiatives are expected to primarily impact growth in 2026. For the complete transcript of the earnings call, please refer to the full earnings call transcript. This article first appeared on GuruFocus. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
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6 days ago
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Synchrony Financial (SYF) Reports Strong Earnings Growth Despite Share Buyback Completion
Synchrony Financial recently reported second-quarter earnings, showcasing a rise in net interest income to $4,521 million from the previous year, alongside an improved net income of $967 million. This announcement, combined with declared dividends and a completed share buyback plan repurchasing 2.25% of outstanding shares, likely supported the company's stock surge of 43% over the last quarter. This performance contrasts with broader market trends where the S&P 500 and Nasdaq peaked then slightly retreated amid varied corporate earnings. Synchrony Financial's initiatives and financial results may have thus contributed to its distinct price movement within the prevailing market landscape. We've identified 2 weaknesses with Synchrony Financial and understanding the impact should be part of your investment process. Rare earth metals are the new gold rush. Find out which 26 stocks are leading the charge. The recent boost in Synchrony Financial's net interest income and net income, in conjunction with its completed share repurchase plan, underscores potential alignment with the narrative of strengthening its financial position through diligent capital management. This ties in with the company's focus on enhancing customer loyalty and increasing purchase volume through partnerships and new card offerings, which could support future revenue growth despite previously observed challenges in purchase volume and liquidity yields. Over the past five years, Synchrony Financial's total return surged 231.17%, reflecting significant long-term shareholder value appreciation. In comparison to the recent one-year period, the company outperformed both the US market and the Consumer Finance industry, which recorded returns of 14.8% and 30.8% respectively. Such performance highlights Synchrony Financial's resilience and effective strategies amidst fluctuating market conditions. In light of the recent news, analysts' forecasts for revenue growth of 23.8% annually over the next three years could be further supported by Synchrony's ability to maintain strong capital positions through share buybacks and dividends, enhancing its net interest income. However, a shrinkage in profit margins to 20.1% could temper earnings growth expectations, impacting the anticipated increase to $3.3 billion by 2028. The current share price of $69.44, trading at an 11.6% discount from the US$77.5 price target, suggests potential future appreciation if the company successfully navigates its growth catalysts. Assess Synchrony Financial's previous results with our detailed historical performance reports. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Companies discussed in this article include SYF. This article was originally published by Simply Wall St. Have feedback on this article? Concerned about the content? with us directly. Alternatively, email editorial-team@ Fehler beim Abrufen der Daten Melden Sie sich an, um Ihr Portfolio aufzurufen. Fehler beim Abrufen der Daten Fehler beim Abrufen der Daten Fehler beim Abrufen der Daten Fehler beim Abrufen der Daten
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7 days ago
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Synchrony Financial CEO Touts Resilience, But Lowered Outlook Spooks Investors
Synchrony Financial (NYSE:SYF) announced its second-quarter fiscal 2025 results on Tuesday, reporting mixed financial performance. While the company exceeded analyst expectations for both total revenue and earnings per share, key operational metrics saw a decline. Synchrony's total revenue or net interest income for the second quarter increased by 2.6% year-over-year to $4.52 billion, surpassing the consensus analyst estimate of $4.51 billion. Despite this growth in total revenue, net revenue decreased by 1.8% year-over-year to $3.65 billion. The company's net interest margin, a key indicator of profitability in lending, improved by 32 basis points to 14.78% during the several other financial indicators showed contraction. Period-end loan receivables declined 2% year-over-year to $99.8 billion, and purchase volume also decreased by 2% year-over-year, reaching $46.1 billion. The average number of active accounts declined by 4% year-over-year to 68.1 million, and deposits fell by 1.0% year-over-year to $82.3 billion. Despite these declines, interest and fees on loans saw a 1% year-over-year increase, reaching $5.3 billion. This growth was primarily driven by an increase in loan receivables yield, which reflected the impact of product, pricing, and policy changes (PPPCs). These positive effects were partially offset by lower benchmark interest rates and a reduced incidence of late fees. Synchrony's profitability significantly improved, with net earnings surging 50% year-over-year to $967 million. This translated to diluted earnings per share (EPS) of $2.50, comfortably beating the analyst consensus estimate of $1.64. A major factor contributing to this increase was a decrease in the provision for credit losses, which fell by $545 million to $1.1 billion. This reduction was primarily due to a reserve release of $265 million in the current quarter, compared to a reserve build of $70 million in the same period last year and a net charge-off decrease of $210 million. View more earnings on SYF The company also demonstrated improved operational efficiency and capital strength. Synchrony's return on assets increased by 100 basis points to 3.2%, and its efficiency ratio improved by 240 basis points to 34.1%. Furthermore, the estimated Common Equity Tier 1 ratio, a measure of a bank's core capital, rose to 13.6% from 12.6% in the prior year, and the estimated Tier 1 Capital ratio improved to 14.8% from 13.8% in the previous year. Synchrony returned $614 million in capital to shareholders during the quarter, comprising $500 million in share repurchases and $114 million in common stock dividends. Synchrony's CEO, Brian Doubles, highlighted the company's resilience during the second quarter, attributing it to a diversified portfolio, strong value propositions, and extensive distribution channels that cater to a broad customer base, from individuals to small and medium-sized businesses and major national brands. Doubles emphasized the company's strategic advancements, including expanding its partner base, introducing new products, diversifying its offerings, and enhancing customer experiences. Notably, Synchrony strengthened its position as a leading industry partner by launching new products with two of its top five partners, renewing another key relationship, and announcing a new partnership with a former top-five client, as reported earlier when Synchrony teamed up with OnePay and Walmart to launch a new credit card program. FY25 Outlook Looking ahead, Synchrony revised its full fiscal year 2025 revenue guidance downward to $15.0 billion to $15.3 billion, compared to the prior estimate of $15.2 billion to $15.7 billion. This updated outlook is below the analyst consensus estimate of $18.54 billion. Price Action: Following the earnings report, SYF shares were trading lower in premarket, down 1.35% at $68.50 as of last check Tuesday. Image via Shutterstock UNLOCKED: 5 NEW TRADES EVERY WEEK. Click now to get top trade ideas daily, plus unlimited access to cutting-edge tools and strategies to gain an edge in the markets. Get the latest stock analysis from Benzinga? This article Synchrony Financial CEO Touts Resilience, But Lowered Outlook Spooks Investors originally appeared on © 2025 Benzinga does not provide investment advice. All rights reserved.
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7 days ago
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Synchrony Financial's quarterly profit surges on lower rainy-day fund, higher interest income
(Reuters) -Synchrony Financial on Monday reported a 52% jump in second-quarter profit, as the consumer lender set aside less money to cover potential defaults and elevated rates boosted its interest income. Consumers have been resilient despite high interest rates and inflation, with many managing to meet debt obligations and avoid sharp deterioration in credit health. Credit card interest rates in the U.S. are significantly higher than those for mortgages or auto loans, which helped card issuers across the industry maintain interest income. Synchrony's quarterly net interest income - the difference between how much a lender earns from loans and pays out on deposits - rose 3% to $4.52 billion. Its net interest margin, which measures the profitability of lending operations, increased 32 basis points to 14.78% in the three months ended June 30. Provision for credit losses decreased by $545 million to $1.1 billion during the second quarter, helped by a reserve release of $265 million, compared with a build of $70 million in the prior year. Provisions are funds set aside by lenders to cover potential loan losses, serving as a key buffer against defaults and an indicator of how they view future credit risk. While overall credit health was stable, many consumers - especially those in lower-income brackets - are pulling back on discretionary spending as persistent inflation and high borrowing costs strain household budgets. Synchrony's quarterly purchase volume - a measure of customer spending - fell 2%. Its revenue came in at $3.65 billion in the second quarter, compared with $3.71 billion a year ago. Meanwhile, net income available to common shareholders surged 52% to $946 million. The bank's second-quarter profit came in at $2.50 on a per-share basis, up from $1.55 a year earlier. Sign in to access your portfolio
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7 days ago
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Synchrony: Q2 Earnings Snapshot
STAMFORD, Conn. (AP) — STAMFORD, Conn. (AP) — Synchrony Financial (SYF) on Tuesday reported second-quarter earnings of $967 million. On a per-share basis, the Stamford, Connecticut-based company said it had net income of $2.50. The results topped Wall Street expectations. The average estimate of 13 analysts surveyed by Zacks Investment Research was for earnings of $1.72 per share. The consumer credit company posted revenue of $5.59 billion in the period. Its adjusted revenue was $4.52 billion, also beating Street forecasts. Thirteen analysts surveyed by Zacks expected $4.5 billion. _____ This story was generated by Automated Insights ( using data from Zacks Investment Research. Access a Zacks stock report on SYF at
